2016 SIT annual report by Southern Institute of Technology

ANNUAL REPORT

Southern Institute of Technology

2016

INDEX 03

Mission and Goals

Our Year in Numbers

Our 2016 Highlights

Governance and Management

Chairperson’s Report

Chief Executive’s Report

SIT Council and Management Team

Student Achievement

Student Support

Māori Students and Partnerships

International Students and Partners

Community, Industry, Business

Staff Highlights

Statement of Service Performance

Statement of Responsibility

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

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

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.

Statement of Purpose Southern Institute of Technology will provide students with quality education and training services. Ka whangaitia e Te Whare Wänanga o Murihiku ngä tauira ki ngä mätauranga me ngä akoranga tino teitei

Goals and Continuing Objectives

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.

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

ªª Enhance academic achievement and satisfaction of stakeholders ªª Offer a range of programmes, staircasing opportunities, and flexible delivery modes which provide occupational and life skills ªª Improve the representation and achievement of under-represented and disadvantaged groups ªª Provide a range of student and staff support services

Foster our social and professional obligations to both stakeholders and staff

ªª Foster and enhance relationships with all external stakeholders ªª Enhance and promote an understanding of Te Tiriti o Waitangi and its application to the Institution ªª Create and maintain policies which are consistent with the Human Rights Act ªª Provide a physically desirable and safe learning and working environment

Operate a viable educationally directed business entity

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 Annual Report 2016 |

Our Year in Numbers

5,313 5 EFTS

13,462

ªª Invercargill ªª Christchurch ªª Queenstown ªª Gore ªª Auckland

Campuses

students

Programmes

OF SIT GRADUATES

Reported they were IN EMPLOYMENT OR STUDYING

OVERALL STUDENT

Graduate Outcome Survey 2016

SATISFACTION

Student Satisfaction Survey 2016

$8,236,000 other income

$792,000

$109,381,000

domestic student fees

$8,920,000

international student fees

total net assets

$48,007,000 total expenses

$32,610,000 government funding

$50,557,000 total income

| Annual Report 2016

$2,598,000 surplus

STUDENT GENDER*

39% Male

STUDENT AGE*

61% Female

34%

66%

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

78% European

4% Others

*Government Funded EFTS

Annual Report 2016 |

Our 2016 Highlights T

he Hon Steven Joyce former Minister of Tertiary Education, Skills and Employment with Member of Parliament for Invercargill Sarah Dowie and Chief Executive Penny Simmonds during October visit to SIT.

ichael Skerrett QSM Kaumatuta for Murihiku approved by SIT Council as new Kaumatua for SIT.

ITâ&#x20AC;&#x2122;s annual Advisory Committee Dinner celebrated the ongoing comprehensive support for SITâ&#x20AC;&#x2122;s academic programmes from over 300 advisory committee members. Olympic Champion and Chef de Mission Rob Waddell presented to advisory members, representatives from the Tertiary Education Commission, local Councils, Trusts, iwi, business and industry.

wo Graduation Ceremonies (for diploma/ degree/ postgraduate programmes) and two Graduation Ceremonies (for certificate programmes) in Invercargill, as well as one Graduation Ceremony in Christchurch, attest to the increasing numbers of students at SIT with 5,313 EFTS in 2016

| Annual Report 2016

ompanion of the Order of New Zealand CNZM was awarded to Chief Executive Penny Simmonds in the New Year Honours in recognition of her services to education, the community and sport. Former Governor General Lt Gen The Rt Hon Sir Jerry Mateparae congratulates Penny at Government House.

IT Annual Award Ceremony celebrated the achievements of SIT top students with 160 awards presented by a wide range of industry and business sponsors.

urihiku Trades Academy commenced at SIT’s Invercargill Campus in partnership with Southland secondary schools to complement the programmes in our four year old Hokonui Tertiary High School located at SIT’s Gore Campus.

rime Minister Scholarships for Asia awarded to five SIT Bachelor of Information Technology students for six weeks language and cultural experience in China.

hird Master’s programme – Master of Applied Health Sciences – underwent a successful NZQA panel assessment, to be added to SIT’s portfolio of Master’s degrees (Master of Information Technology and Master of Applied Management)

hinese New Year celebrated by students and staff –

1,085 international students studied at SIT in 2016, an increase of 30% from 2015.

ertiary Education Commission audit of SIT was completed successfully in May. No issues were identified and an endorsement of SIT’s policies and procedures was provided.

IT Chair Sarah Brown and SIT Chief Executive Penny Simmonds performed key roles in the development of the Southland Regional Development Strategy (SoRDS). The Hon Nathan Guy Minister of Primary Industries presents to attendees at SoRDS Launch in October.

Annual Report 2016 |

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. SIT delivered education and training to over 5,300 equivalent full time students, one of SIT’s highest ever numbers. Along with the maximisation of student numbers, the excellent financial performance of SIT continues to ensure the sustainability of the hugely successful Zero Fees initiative. A surplus of over $2.5 million in a challenging tertiary environment, must be deemed a great result. Our Education Performance Indicators (EPIs) also outline a strong result for 2016, as do the results of the student satisfaction survey. 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. The number of international students attending SIT continues to increase, and this is providing lasting benefits to the Southland community, economically and culturally. SIT recognises the importance of international students being embedded throughout the education sector in Southland and is working with the newly formed Southern Education Alliance to increase international student numbers in secondary schools, specifically targeting rural schools.

Sarah Brown Chairperson of Council

| Annual Report 2016

International students are of huge importance to regional New Zealand. Southland does not suffer from the challenges faced by Auckland and in fact, gains great benefit from international students, particularly those who bring families with them. SIT hopes that, in trying to work through Auckland’s issues with migration, any perceived solution does not create a new set of problems for the regions. The results of the most recent census show that Southland’s population is held steady by international immigration. Any signals from Government, which suggested international migrants are less welcome in New Zealand, need to carefully weigh the interests of regional New Zealand against those of Auckland. This will be my final report as Chair of SIT. I’d like to publicly record thanks to the SIT Council members for their individual and collective wisdom and practical good sense, and in particular to Peter Heenan, my deputy chair, who has been a great support over a number of years. Finally on behalf of the Council, I wish to record my gratitude and admiration for Penny Simmonds and her staff. Penny manages to combine an innovative approach with a clear business focus, while keeping her eye closely on the academic standards. This is an extraordinary skillset and I am grateful to have had the opportunity to work with her. Council’s task is made considerably easier by the commitment and ability shown by the whole staff and for that I am very grateful.

GOVERNANCE AND MANAGEMENT

Chief Executive’s Report Within the context of lower domestic and international student numbers in the tertiary sector, Southern Institute of Technology (SIT) had a good year in 2016 with growth in both. The experience for students and the results of our 2016 Student Satisfaction Survey were pleasing with 94% of students stating their satisfaction with their programme of study which was higher than both 2015 (90%) and 2014 (91%). A majority of our students, 55%, responded to our annual student satisfaction survey, 2% up on 2015, 7% higher than in 2014. Given the initiatives implemented through our Maori, Pasifika and Youth Strategies the satisfaction results for these groups within our 2016 cohort of students is particularly pleasing with 98% satisfaction from Pasifika students, 97% for Maori students and 96% of students under 25 years. International students also showed 96% satisfaction. Defying the notion that bigger is better and against centralisation trends, it was heartening to see that the highest levels of satisfaction occurred in our smaller campuses with 100% satisfaction at Gore Campus, 97% in Christchurch Campus and 96% in Queenstown. Well done to staff in those campuses where exemplary support is being provided for students. Further student feedback from our 2016 Graduate Outcome Report showed 76% of graduates in employment, up 1% on 2014 graduates and annual earnings for graduates up 4% to $43,239 over 2014 graduates. A further 32% of graduates were continuing to higher level studies. Like most other tertiary providers, the impact of TROQ on the volume of development, accreditation and approval of new programmes put pressure on both staff and financial resources again in 2016 and will continue for 2017. The Murihiku and Hokonui Trades Academies have strengthened ties between SIT and Southland secondary schools and created measurable benefits for the individual students involved in them through improved retention and NCEA results. The progress of the Southland Regional Development Strategy (SoRDS) throughout 2016 has also enabled SIT to strengthen community and industry links as new industries and innovations as well as social developments have been progressed and SIT’s role in having a prepared workforce clarified.

SIT continued to support community initiatives which enhance opportunities for Southlanders including partnerships with the Mike Piper Training Centre and the Southern Performance Cycling Hub as well as with cultural organisations such as the Murihiku Maori and Pasifika Cultural Trust that organises Polyfest. In return the community gave valuable support to SIT through such initiatives as the gift of a Fonterra tanker and trailer for the Commercial Road Transport programme, over $100,000 worth of cash and in-kind scholarships and awards for SIT students, and local authority and community funder support for films to be shot in Southland with SIT internship requirements. The Chamber of Commerce shifted into SIT arcade in mid2016, coinciding with the opening of SIT’s Business Hub also located in the arcade. This collocation is specifically targeted to increase industry and business engagement with SIT students and graduates, as is the implementation of internships under SoRDS. SIT’s commitment to the Regional Strategy continued throughout 2016 and included a two day Cultural Intelligence workshop with Mai Chen, the establishment of the Southern Education Alliance (SEA) between SIT, Southland Schools and Venture Southland, chaired by SIT’s Chief Executive, planning with city leaders on student accommodation options aligned with the Invercargill CBD upgrade and lobbying for immigration variations to support growth in the Southland population, recognising the very different challenges in Southland compared to Auckland. SIT was pleased to celebrate Bachelor of Information Technology graduate Jim Dowling’s selection as a finalist for the 2016 NZ Hi-Tech Young Achiever Award. Jim’s company, Digital Stock formed by a group of graduates continues to gain momentum operating from Invercargill. We were also pleased to have had six Bachelor of Information Technology students gain the Prime Minister’s Scholarships for Asia to study at our partner Hubei University of Education in China in September/October. The contestable level 1 and 2 process coincided with TROQ movement of many trades qualifications out of level 1 and 2 into levels 3 and 4 which has caused frustration and considerable risk for SIT and remains a concern entering into the 2017 delivery.

Annual Report 2016 |

GOVERNANCE AND MANAGEMENT

Staff have had a busy 2016 serving our many stakeholders and I wish to record thanks to staff for their student focus and the conscientious way in which they have carried out their duties. Our ongoing success across our objectives: academic, social and economic is reliant on the diligence and loyalty of staff. SIT has again in 2016 benefited from the extensive leadership expertise and wealth of experience on SIT Council and the connections of individual Council members with the communities and stakeholders we serve. On behalf of staff I extend our thanks to SIT Council for their ongoing commitment to SIT. After eleven years on SIT Council, six of these years as Chair, Sarah Brown will be leaving SIT Council in April 2017. Sarah has provided leadership for SIT that is closely aligned to the needs of Southland businesses and industry through her many connections out into the Southland community. She has worked diligently to ensure SIT maintained or enhanced its academic, financial and social outcomes for the benefit of students and stakeholders. On a personal level, we will miss her energy, enthusiasm, passion and advocacy for SIT and wish her well for her future endeavours.

Penny Simmonds Chief Executive

| Annual Report 2016

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 enquires 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.

Academic Board The Academic Board is responsible to SITâ&#x20AC;&#x2122;s 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.

Annual Report 2016 |

GOVERNANCE AND MANAGEMENT

Council Members

Dean Addie

Murray Donald Community Appointment

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 Community Appointment

Aimee Kaio

Tim Ward

Peter is a Director of H2O Design Ltd, an accredited member of the Institute of Directors and 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.

A born and bred Bluff woman, Aimee brings a range of community development experience to the table. Aimee is Director/Owner of NORA Ltd, a local business development, research and evaluation consultancy and a Director of Awarua Developments Ltd. Aimee is a Kahui Māori Board Member of the Deep South National Science Challenge, a Trustee of the 1000 Days Trust and the Murihiku Māori and Pasifika Cultural Trust. Aimee sits on a number of boards in an advisory capacity, representing Iwi and community, and is currently the Programme Manager of Tribal Economies, Research and Development for Te Rūnanga o Ngai Tahu.

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 currently the Diocesan appointment to Verdon College’s Board of Trustees.

Sarah Brown (Chair)

Peter Heenan

Community Appointment

(Deputy Chair)

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

Jeff Grant 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 with the NZ Meat Board, Meat and Wool New Zealand and the Primary Industry Council.

| Annual Report 2016

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.

Community Appointment

Ministerial Appointment

GOVERNANCE AND MANAGEMENT

Management Team

Penny Simmonds Chief Executive

Patsy Eade

Maree Howden

Deputy Chief Executive - Academic Head of Faculty Health, Humanities and Computing

Darryl Haggerty

Chami Abeysinghe

International Department and Marketing Manager from May 2016

Amanda Knowles

Human Resources/ Infrastructure Manager

Chief Financial Officer from April 2016

Academic Operations, Student Support and Business Development Manager

Teri McClelland

Phillip Morrison

Douglas Rodgers

Head of Faculty SIT2LRN

Head of Faculty New Media, Arts and Business

Head of Faculty Trades and Technology

Bharat Guha Deputy Chief Executive - Corporate and Chief Financial Officer until April 2016 Annual Report 2016 |

Student Achievement Academic Achievement Provisional Educational Performance Indicator Results It is important to note that the following Educational Performance Indicator (EPI) results are provisional and are likely to change as has occurred in previous years when the SDR is finalised in June. Therefore the following commentary is provisional.

Overall Provisional Results SIT’s 2016 provisional results from TEC indicate variable results in Educational Performance Indicators (EPIs) with some pleasing improvements in progression and retention rates but with decreases in course and qualification completions. Progression rates overall have improved by 1% for all students, with Maori students improving by a notable 11% and Pasifika by 4%, compared to 2015. In Level 3 and above, retention results for all students exceeded the target by 4%, and retention results for Maori students exceeded the target by 13%. In overall course completions SIT achieved 75% compared to 78% in 2015, and in overall qualification completions SIT achieved 70% compared to 72%. SIT continues to show good progression rates of 36% for all level 1-3 programmes, an increase of 1% on 2015. Maori students’ progression rates have increased by 11% and Pasifika students’ rates by 4%. The reasons for these increases may be due to targeted student support as well as to SIT’s programme development over many years which has been strategically focussed on creating clusters of programmes enabling staircasing opportunities both within SIT and onto other partnership organisations. SIT’s retention rates would be further improved if TEC were able to acknowledge the large numbers of trades students who transition to apprenticeships and relevant ITO training and who are classified as non- completions. SIT believes that these students should be classified as successful completions because they have achieved the employment outcomes desired by the government. Should the regulations around this category be changed to reflect reality, SIT’s retention results would further increase. Strategies to improve all EPIs include additional student support, strengthening of interviewing, testing and acceptance procedures, improving use of information for more effective monitoring of student progress, and strengthening of staff training and support. Additional specific strategies including professional development for staff have been implemented to support Maori and Pasifika students.

| Annual Report 2016

Maori, Pasifika and Under 25 Students’ Course and Qualification Completion and Retention Provisional Results Course and qualification completions for Maori, Pasifika and Under 25 students also show variable results in several performance categories compared to the previous year. Maori students’ retention rates have improved and exceeded the target by 13%, and Maori course completions have decreased by 4% in all levels and qualification completions have remained the same. SIT’s Under 25 learners achieved a 10% increase in qualification completions at level 3 and above, and an 11% increase in level 4 and above compared to 2015. Pasifika students exceeded the 2015 results in course completions at level 4 and above by 1%, but with a decrease in qualification completions, compared to 2015.

Parity between Priority Groups and All Students Parity between Maori and non- Maori provisional results has improved with a disparity of 8% in qualification completions compared with a 10% difference in 2015, and an improvement of 1% in course completions. SIT is pleased that its strategies to enhance Maori students’ learning have reaped good results in this important area. SIT has developed a Maori Tertiary Education Strategy with local iwi and expects that further implementation of the confirmed strategies will continue to enhance the educational performance of our Maori students. The differential between Pasifika and non-Pasifika students’ results remains approximately the same as in 2015. To endeavour to close the gap SIT has developed a Pasifika Tertiary Education Strategy in consultation with the Pasifika community. SIT feels confident that by working more closely with the Pasifika community, learning opportunities and experiences for Pasifika students will be enhanced and the disparity will diminish.

STUDENT ACHIEVEMENT

Educational participation and achievement outcomes (% of total EFTS) - provisional results SAC Level 3 and Above Students Participation 2015

Actuals

2016 Target

2016

Actuals

Under 25

Qualification Completion 2015

2016

All levels

72.0%

n/a

70%

Level 3 and above

71.5%

75.0%

70%

Level 4 and above

73.0%

75.0%

70%

All levels

70.0%

n/a

80%

Actuals

Target

Actuals

All Students

Under 25

Level 3 and above

33.0%

5.0%

31%

Level 3 and above

70.5%

79.0%

81%

Level 4 and above

26.0%

29.0%

25%

Level 4 and above

73.0%

79.0%

85%

Maori

Level 3 and above

13.0%

5.0%

14%

All levels

62.0%

n/a

62%

Level 4 and above

11.0%

9.0%

11%

Level 3 and above

59.5%

67.0%

62%

Level 4 and above

59.0%

67.0%

62%

Pasifika Level 3 and above

3.0%

1.0%

Pasifika

Level 4 and above

2.0%

All levels

59.0%

n/a

51%

Level 3 and above

56.0%

67.0%

52%

Level 4 and above

56.0%

67.0%

52%

2015

2016

Course Completion rse Completion Rates 2015

2016

All levels

78.0%

n/a

75%

Level 3 and above

78.0%

81.0%

75%

Level 4 and above

78.0%

81.0%

75%

Actuals

Target

Actuals

Student Retention

All Students

Under 25

Actuals

Target

Actuals

All Students All levels

68.0%

n/a

63%

Level 3 and above

67.5%

59.0%

63%

All levels

79%

n/a

77%

Under 25

Level 3 and above

80.0%

84.0%

77%

All levels

73.0%

n/a

68%

Level 4 and above

81.0%

84.0%

79%

Level 3 and above

73.0%

n/a

68%

All levels

73.0%

n/a

69%

Level 3 and above

71.0%

74.0%

69%

All levels

63.0%

n/a

59%

Level 4 and above

71.0%

77.0%

69%

Level 3 and above

63.0%

45%

58%

Maori

Pasifika

Pasifika All levels

70.0%

n/a

65%

All levels

55.0%

n/a

52%

Level 3 and above

67.0%

74.0%

65%

Level 4 and above

67.0%

77.0%

68%

Level 3 and above

56.0%

59.0%

50%

Annual Report 2016 |

STUDENT ACHIEVEMENT

Youth Guarantee Students

Student Progression 2015

Actuals

2016 Target

2016

Actuals

Course Completion 2015

2016

Level 1

n/a

55%

n/a

Level 2

85.0%

72%

78%

Level 3

84.0%

80%

85%

2015

2016

Levels 1 & 2

48.0%

58%

56%

Level 3

76.0%

68%

81%

2015

2016

Level 1

n/a

50%

n/a

Level 2

50.0%

72%

41%

Level 3

87.0%

75%

76%

2015

2016

Level 1

n/a

40%

n/a

Level 2

41.0%

57%

27%

Level 3

19.0%

35%

17%

All Students Levels 1 to 3, to a higher level

35.0%

43.0%

36%

Maori Levels 1 to 3, to a higher level

38.0%

45.0%

49%

Pasifika Levels 1 to 3, to a higher level

39.0%

43.0%

43%

Actuals

Qualification Completion Actuals

Actuals

2016 Target

2016

Actuals

The number of International student EFTs All levels

836

700

Actuals

All students

Other Commitments 2015

Planned Commitment

Actuals

All students

814

Student Retention Actuals

SAC Levels 1 and 2 Students 2015

Actuals

2016 Target

2016

Actuals

Participation Maori

3.0%

Pasifika

0.4%

0.3%

79.0%

80.0%

75%

Course Completion All students

72.5%

75.0%

66%

68.0%

65.0%

70%

Student Retention All students Student Progression All students

41.0%

| Annual Report 2016

46.0%

42%

Actuals

All students

Student Progression

Qualification Completion All students

Planned Commitment

Actuals

Planned Commitment

Actuals

All students

STUDENT ACHIEVEMENT

SIT Students awarded Prime Minister’s Scholarship for Asia SIT students Brittney Huxford, Ben Harward, Geoff McClelland, Darius Marshall and Yvonne Yeo were awarded the Prime Minister’s Scholarship for Asia, travelling to China’s prestigious Hubei University of Education (HUE). The Information Technology students were among 124 students from around the country to receive the scholarship and were fully funded to spend six weeks studying Chinese culture, language, and IT programmes at the university. SIT2LRN Head of Faculty Teri McClelland said the two institutes have had a strong relationship for over six years, with staff from HUE visiting SIT annually for familiarisation and training in Western teaching and learning methods, while SIT staff travel to China each year to meet students and undertake teaching observation. “Students from HUE have come to SIT each year to undertake further study and this scholarship has presented a unique opportunity for SIT students to go to HUE and immerse themselves in study there. These sorts of exchanges open up dialogues at all levels,” Teri said. Former Tertiary Education, Skills and Employment Minister the Hon Steven Joyce said the scholarship was not only an opportunity for the students to gain vital skills but a chance to represent New Zealand internationally.

“These students will form part of our future workforce. The skills and links they gain internationally will be valuable as New Zealand’s global connections become increasingly important,” Former Minister of Tertiary Education, Skills and Employment, the Hon Steven Joyce

(Left to right) Brittney Huxford, Ben Harward, Darius Marshall, Geoff McClelland and Yvonne Yeo visit the Yellow Crane Tower in Hubei

Annual Report 2016 |

STUDENT ACHIEVEMENT

Successful Graduate Employment and Further Study Outcomes The Graduate Outcome Survey was distributed approximately 8 months after students completed their 2015 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. The response rate was satisfactory at 47 per cent, ensuring a valid sample of over 1,000 graduates with excellent results and feedback provided.

Results showed that 96% of graduates were in employment or undertaking further study with the majority of those studying enrolled at SIT. The median gross annual salary showed an improvement at $43,239 compared with $41,600 in the previous year. Nearly all the graduates were satisfied with the quality of their programme with 94% expressing overall satisfaction, slightly down from the previous year (95%). A large majority (92%) confirmed that they would recommend their programme to others and 93% considered the programme represented good value for money, a 1% improvement from the previous year.

| Annual Report 2016

Graduate Outcome ITP Benchmarking Report As in 2015 SIT participated in a graduate outcome benchmarking exercise with three other ITPs. The three institutions were Otago Polytechnic (Organisational Researcher), Eastern Institute of Technology, and Waiariki Bay of Plenty Polytechnic. The report was prepared from data collected from questionnaires administered by the Organisational Researcher on behalf of the participating institutions. The overall purpose of the survey was to collect information on the main labour market destinations and further education experiences, and the results provided valuable combined insights for higher education institutions, as well as for key stakeholders. The overall response rate was 39% with SIT’s response at 47%. SIT performed well in the benchmarking exercise with graduates providing the following ratings: ªª Overall satisfaction with the programme - 94% (average 94%) ªª Would recommend the programme to others - 92% (average 92%) ªª Programme represented value for money - 93% (average 90%) ªª Graduates in employment - 76% (average 74%) ªª Graduates studying or enrolled to study - 41% (average 43%)

STUDENT ACHIEVEMENT

Carpentry Apprentices Awarded Top Regional Prizes

Fulbright Scholarship for SIT Student

Southern region building apprentices Mark Templeton and Luiz Fernando showcased their skills against the region’s best and were awarded first and second places in the 2016 Certified Builders’ Carpentry Apprentice Challenge. All apprentices in the competition were given a week to inspect plans for building children’s playhouses and just eight hours to build them in SIT’s carpentry workshop. Mark, who was enrolled with SIT under the ITAB Apprenticeship Programme, won the regional competition and qualified for the finals in Wellington. Luiz, who graduated and was named Top Student at SIT Queenstown’s Certificate in Construction in 2015, came runner-up in the challenge. The following month, in an intense competition, Mark and 11 other regional winners were tested on their technical skills, followed by a panel interview and presentation to test their theoretical knowledge and communication. Clement Richer of Herne Bay, Auckland, was the overall winner. All children’s playhouses built during the competition were donated to early childcare providers in each region, which included SIT’s Early Childhood Centre.

Fulbright Scholar, Ana Montgomery-Neutze SIT graduate Ana Montgomery-Neutze was awarded the scholarship of a lifetime in 2016 and followed her passion for filmmaking at the School of Visual Arts in New York. Graduating with an SIT Diploma in Digital Film, the emerging filmmaker was awarded the prestigious Fulbright Scholarship to study a Master’s degree in Social Documentary Film at the New York School of Visual Arts. “Having the opportunity to move to New York to study the one thing that I am most passionate about in the world, means everything to me,” said Ana. Using the scholarship to explore different cultures through film, as she did during her studies in New Zealand, was one of Ana’s objectives. Ana said that she was particularly interested in learning more about the Native American people, and “the ongoing effects of colonisation on the Native Americans.” On finishing her Master’s in New York, Ana planned to bring the skills she has acquired back to New Zealand.

Mark Templeton, Southern Regional Winner of the 2016 Certified Builders Carpentry Apprentice Challenge

“I want to become a filmmaker so that I can tell our stories for our people...New Zealand is an incredibly innovative and creative country and I can’t imagine anywhere I’d rather be.” Ana Montgomery-Neutze

Annual Report 2016 |

STUDENT ACHIEVEMENT

SIT Graduate Finalist in High-Tech Young Achiever Award

National Scholarship Awarded to Hairdressing Student Hairdressing student Rachel Tong is completing her studies on a high note after receiving the prestigious Jasmine McBeth Memorial Scholarship. The Jasmine McBeth Memorial Scholarship is a national scholarship offered annually to a hairdressing apprentice with the drive, passion, motivation and dedication to succeed in their apprenticeship and hairdressing career. Rachel, who will complete her in-salon final exams for the National Certificate in Hairdressing at SIT early in 2017, said that the scholarship would provide opportunities for her career.

High-Tech Young Achiever Finalist, Jim Dowling SIT graduate Jim Dowling was named a finalist in one of the most sought-after accolades in the technology sector. Jim reached the finals of the 2016 Hi-Tech Young Achiever Award in April, the only Southlander to be nominated. NZ Hi-Tech Awards recognise the most successful technology companies and high-achieving individuals throughout the country. Jim graduated from SIT’s Bachelor of Information Technology in 2013 and has since started his own software development company in Invercargill, Digital Stock, which offers businesses technology-based solutions to increase productivity. Jim considered being placed in the top four finalists was a “huge achievement” and said one of the main reasons he applied for the award was to get his company name out to the rest of the country, which had proved successful.

“It means so much to me as a stylist and on a personal level; it’s such a humbling experience to represent the McBeth family. With this scholarship, I can transform myself and the industry, and continue to help others change and grow.” Rachel Tong Rachel was also named Southland Apprentice of the Year in 2014 and made the finals for the award in 2016. The Jasmine McBeth Memorial Scholarship is named for hairdressing apprentice Jasmine McBeth, who completed her hairdressing apprenticeship despite struggling with cancer. When Jasmine passed away, her parents donated money towards the scholarship.

“The ultimate goal is to just keep growing the business and to get our name out there and being nominated for such a prestigious award has certainly helped with that. Being recognised with a Hi-Tech nomination led to a tremendous amount of business opportunities.” Jim Dowling SIT Hairdressing Student Design

| Annual Report 2016

STUDENT ACHIEVEMENT

New Zealand Country Music Award Winner

Student Satisfaction Survey

SIT graduate Joanna Buchanan was recognised this year for her musical talents at the New Zealand Country Music Awards in Gore.

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.

Joanna, who graduated from the Bachelor of Contemporary Music in December, was named the joint winner of the Mataura Licensing Trust (MLT) Songwriting Award in June for her song “River”. The MLT Songwriting Awards sees a wide range of musical talent showcased in front of some of the country’s top music industry professionals. Joanna was competing against songwriters from New Zealand, Australia and the United States. Joanna also received the Top Live Performance Award at the SIT 2016 Award Ceremony.

As in the 2015 Student Satisfaction Survey an online option via Blackboard was undertaken by the majority of students and SIT continued with the use of percentage rating to align with the methodology used by other institutes of technology and polytechnics to allow for benchmarking exercises. A 55% response rate was achieved for the 2016 survey. Overall, 94% of the students were satisfied with the programmes they were enrolled in, compared to 90% in 2015. A satisfaction rating of more than 90% was achieved in the following key areas: ªª Student support services such as Health Nurse, Learning Assistance Tutors, Tauira Tautoko (Maori Student Support Centre), Student Activities Officer and Library Staff ªª Equipment, resources and access to computing facilities ªª Course content, administrative staff and the respect shown by staff towards students’ culture. As part of a new benchmarking exercise with other Institutes of Technology and Polytechnics (ITPs) three new questions were introduced in 2016 and the following satisfaction ratings were provided by SIT students: ªª Satisfaction with the institution (95%) ªª Satisfaction with the learning environment (95%) ªª Satisfaction with the teaching (91%) The benchmarking process with other ITPS has not yet been completed. Plans for 2017 include continuing to work with other ITPs to produce satisfaction benchmarking questions to provide a combined overview of student satisfaction with the ITP sector in New Zealand.

New Zealand Country Music Award Winner, Joanna Buchanan

Annual Report 2016 |

Student Support Academic and Pastoral Support

Disability Liaison Services

A strength of SIT is our student-centric focus, which is expressed in our foremost institutional goal “To provide for, and encourage, student participation and achievement in a range of quality learning opportunities and services”. Our students are positioned at the centre of the institute with staff, faculties, service sections and systems focussed on students gaining access to appropriate programmes of study, and on the support needed to assist them to achieve success as they progress through to qualification completion and employment/further study outcomes.

In 2016, 461 students declared disability on enrolment, and of these 165 (36%) accessed the Disability Liaison Service.

Through the Academic Support Unit, SIT maintains regular, relevant and targeted staff professional development to foster tutorial and support practices and processes, to enable staff to provide the teaching, support and guidance necessary for students to perform well in their educational programmes. In addition, SIT provides comprehensive academic and pastoral support services for students as they progress through their studies. Services include: Liaison Officer Learning Support Coordinator and Tutors Literacy and Numeracy Coordinator Peer Tutoring Scheme Tauria Tautoko (Māori Student Support Centre) Māori and Pasifika Liaison Officers Youth Guarantee Coordinators Employment and Activities Officer

Student Achievement ªª 81% of students who declared a disability were retained in their course ªª 85% of students who declared a disability successfully completed their course ªª 34 students who accessed the Disability Liaison Service were Certificate graduates ªª 10 students who accessed the Disability Liaison Service were Diploma or Bachelor Degree graduates ªª 4 students who accessed the Disability Liaison Service received an excellence award at the 2016 SIT annual Award Ceremony

Student Feedback ªª 28 students who received support (20%) responded to the Disability Liaison Service survey ªª Respondents identified teaching staff and the student handbook as the most common sources of information about the Disability Liaison Service; this was followed equally by classroom orientation presentations and word of mouth referrals ªª 88% of respondents stated the Disability Liaison Service enabled them to continue in their course ªª 92% of respondents said the Disability Liaison Service enabled them to better meet their educational goals

Health Nurse and Counsellors

Student Support

Disability Liaison Officer

ªª 35 students screened positive for Irlen Syndrome and were provided with appropriate remedial resources

Library staff The student services group is located together and work collectively as a team to support learners to be retained in their programmes, achieve qualifications, and progress to further study or employment.

ªª 16 students accessed parking permits for on-campus mobility related issues ªª 41 items of equipment were loaned to enhance/enable student learning ªª 1564 staff support hours were delivered to support 40 students ªª 46 staff attended training sessions offered by Disability Liaison Service

| Annual Report 2016

STUDENT SUPPORT

Overcoming Obstacles to Achieve Success

Youth Guarantee Programme 2016 was the seventh year of Youth Guarantee Programme delivery at SIT. It was the largest year to date with a total of 111 Youth Guarantee students enrolled in all three SIT campuses Invercargill, Christchurch and Queenstown.

SIT student Tori Batt has overcome considerable obstacles to get where she is today. The 21-year-old student joined the Level 3 Certificate in Cookery at the start of 2015 after a life-long passion for cooking. But Tori’s dyslexia began impeding her test results, prompting her tutor to suggest that she approach SIT’s Disability Liaison Service. “I knew what I wanted to put down on the paper, I just couldn’t find the right words…I couldn’t communicate it on paper. I was trying to do it on my own and it took a tutor to tell me I needed help. They were all very helpful; they realised I could do the work but pushed me to get the help I needed,” she said. After meeting with SIT’s Disability Support Liaison Officer, Tori was assigned a reader/writer who spent time with her outside the classroom, taking her through different work and giving her the opportunity to voice her answers, rather than write them down. Once Tori had this opportunity, her tutors began to see how impressive her work was.

The Youth Guarantee programme was predominately in the trades approved programmes at Level 3 and below. The Youth Guarantee Coordinators work to support students and help youth aged between 16 and 19 years transition from school into tertiary study. The Youth Guarantee Coordinators have regular one-on-one meetings with each student where goals are set to ensure students are succeeding academically and personally to their highest ability. The Youth Guarantee Coordinators also work alongside tutors and other support staff to ensure our young people are being assisted in the best way possible to achieve. Lunches are held throughout the year and guest speakers are invited to talk to the students about personal development and achieving to the best of their ability.

Highlights: ªª One Youth Guarantee student gained Top Student Award in their class for 2016 at the SIT Award Ceremony. ªª Youth week was held from 23 - 27 May 2016. This year’s theme was about giving, with the motto for youth week: Giving back is giving forward. Aroha Atu, Aroha Mai. ªª SIT Youth Guarantee students helped to build and construct a community garden onsite at the Invercargill campus. Certificate in Construction and Certificate in Joinery students built and assembled the four box gardens and the remainder of the students helped to fill the gardens with soil and plant vegetables. ªª Students who would not have achieved without support from the Youth Guarantee Programme succeeded and felt a sense of belonging and achievement along with the knowledge that their goals can be achieved with a lot of hard work.

“Everything changed after that. There are quite a few written tests which I have completely passed, as well as passing two exams last year and one this year with distinction,” Tori said. “I started to form quite a bond with my reader/writer; without her I wouldn’t have been able to process the information and I wouldn’t have passed.” Tori completed the Level 3 and Level 4 certificates in Cookery and will be going on to study the New Zealand Certificate in Tourism Level 3 in 2017 to follow her passion and stay within the hospitality industry. “The help I received at SIT has been very much appreciated; it’s been a fabulous time. They’ve just made life so much easier.”

Annual Report 2016 |

STUDENT SUPPORT

Employment Support for Students

Equal Employment Opportunities (EEO)

The following statistics were recorded for the 2016 year:

SIT has provided individual reports on the following:

ªª 38 vacancies listed on SITuations Vacant

ªª Māori students: refer pages 25-27

ªª 11 vacancies filled by SIT students (6 Domestic, 5 International)

ªª Students with Disabilities: refer page 22-23

ªª 294 students received CV/employment advice (55 Domestic, 239 International)

ªª International students: refer pages 28-30

ªª Youth Guarantee students: refer page 23 ªª Staff Training and Development: refer pages 38-47

ªª 128 students and spouses in employment across the year (48 Domestic, 80 International) ªª 31 students and spouses employed by Environment Southland and the Ministry of Primary Industries to aid in the Velvet Leaf Eradication Project (14 Domestic, 17 International) ªª Employment workshops for international students conducted 11 times across the year totalling approximately 350 students and spouses, as well as other classes across the Invercargill Campus and Queenstown Campus. SIT worked in conjunction with the Chamber of Commerce Southland to offer a speed networking event with employers and graduating students in September. This involved fifteen employers, and just under one hundred students from various courses. Four business students were able to find employment from the event, positive feedback was received from both students and employers, and solid working relationships were set up with local organisations.

Social Sports Encourage Intercultural Understanding Students participated in a wide variety of sports throughout the year: Dodge Ball, Badminton, Basketball, Indoor Bowls, Indoor Cricket, Netball, Table Tennis, Touch Rugby, Volleyball, Yoga, Cricket.

Highlights for social sports 2016 ªª Cultural interaction and understanding were encouraged between students, with domestic students helping international students with English language, helping them to understand new sports and rules and encouraging them to feel part of a team. ªª Continuation of our relationship with Appleby Cricket Club which resulted in a SIT/Appleby cricket team playing in the Southland Country/Town competition. This has given international and domestic students the opportunity to integrate and encourage intercultural understanding within a team environment. ªª Students representing SIT in a proud, professional manner amongst other community groups. ªª 276 students registered on database for 2016 ªª 79 International Students ªª 197 Domestic Students ªª 160 Female students / 116 Male students ªª 194 from 276 students participated in 1 or more sports resulting in 70% participated in social sport

| Annual Report 2016

Māori Students and Partnerships 2016 SIT Tohu Manakura Māori (Māori Leadership Award) The SIT Tohu Manakura Māori (Māori Leadership Award) was awarded to Sport and Exercise student Omeka Raimona in 2016. Omeka was recognised for his academic achievement, practical skills, participation and engagement in learning, as well as his ability to support and lead others. The award recognised Omeka’s achievements in displaying:

Whanaungatanga - connecting and identifying with whānau hapu and iwi, Ako - taking responsibility for their own learning by seeking support, working cooperatively with others and supporting others in their learning, Tangata whenuatanga - acknowledging Te Reo, Tikanga, Kawa and Ture as part of learning, Manaakitanga - demonstrating respect towards others through hospitality, kindness integrity and generosity. Sport and Exercise Programme Manager Duncan McKenzie said “Omeka is a quiet achiever. He is strong within himself; he walks the walk, without the talk.” The Tohu Manakura Māori Award includes a trophy and korowai which was donated by long-serving SIT tutor Barry Leonard and his wife Jenny, who initiated the award, and has been blessed at the SIT Council by SIT Kaumatua Michael Skerrett QSM.

SIT Kaumatua Michael Skerrett QSM presents the SIT Tohu Manakura Maori Award to Sonny Tonihi on behalf of Omeka Raimona Annual Report 2016 |

MAORI PARTNERSHIPS

Māori Students’ Participation at SIT

SIT Māori Tertiary Education Strategy

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 2016, 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.

The SIT Māori Tertiary Education Strategy which was developed in conjunction with Maori stakeholders in 2014/2015 has been an important factor in SIT’s aspirations to improve educational outcomes for Māori students to ensure they are well prepared for further study, employment or selfemployment upon their graduation. The strategy provided SIT with the opportunity to build on the success of existing strategies, while integrating new ideas and practices to provide a direction for SIT in the future.

Te Reo and Tikanga Class Numbers Increase Māori language and culture were major points of interest for students in the southern region, with more than 300 students enrolled in 2016 compared with 180 students enrolled in 2012. Te Wananga o Aotearoa Business Coordinator Arana Collett said there had been a large increase in students enrolling in the courses over the past four years as a result of a greater awareness of the Māori culture in Southland. Arana noted that people from varied cultural backgrounds had expressed interest in enrolling in the courses. Te Wananga o Aotearoa offers cultural, computing and language courses as part of a strategic partnership with SIT and has done so for the past 13 years. More than seven language classes were delivered at SIT in 2016 with additional classes taught off campus in Queenstown and other Central Otago sites, with the added possibility of a Te Anau class being delivered in 2017.

| Annual Report 2016

One of the practices for supporting Māori learners that has been adopted by many staff is “Hoake – SIT’s Culturally Responsive Self–Review”. Hoake is aligned to Ka Hikitia – Accelerating Success 2013-2017 and is part of the observation process which requires tutorial staff to identify where they consider they are placed within a self-review cultural continuum and how they can improve. Training and workshops for Hoake are undertaken as part of SIT’s professional development training. The key aspects of the self review are: ªª Ako – reciprocal teaching and learning ªª Whanaungatanga – relationships with iwi, hapū and whānau ªª Tangata whenuatanga – authentic, contextualised, meaningful learning ªª Manaakitanga – caring for learners as culturally located beings ªª Wānanga – communication, problem-solving innovation SIT professional development policies provide staff with many other opportunities to attend external seminars, workshops, and conferences to upgrade their cultural skills and knowledge, in addition to the opportunities provided in-house by the Academic Support Unit (ASU).

MAORI PARTNERSHIPS

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 Nga Kete Matauranga 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 Certificate in Te Ara Reo Māori ªª Certificate in Advanced Te Ara Reo Māori ªª Certificate in Kawai Raupapa ªª Certificate in Te Korero Arataki Manu Korero ªª Certificate in Tikanga Māori ªª Certificate in Money Management ªª Certificate in Small Business Management ªª Certificate in Te Putaketanga o Te Reo ªª Diploma in Te Korero Arataki Manu Korero ªª Diploma in Te Aupikitanga Ki Te Reo Kairangi ªª Diploma in Te Ara Reo Māori

ªª Regular community guest speakers ªª Access to Justice of the Peace ªª Phone home service ªª Information on health and social services available in the community

Annual Report 2016 |

International Students and Partners International Student Numbers Continue to Increase 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 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 is a significant boost for Southland. This 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 and primary schools as part of the Southern Education Alliance (SEA), which has received Government support and funding to increase international student numbers in the Southern region. In 2016, SIT hosted 1,509 international students 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 has achieved the following percentage growth in the number of international students enrolled at SIT from 2011 – 2015: ªª 2011 – 2012: 10% ªª 2012 – 2013: 10% ªª 2013 - 2014: 20% ªª 2014- 2015: 26% (from 664 EFTS to 835 EFTS) ªª 2015 – 2016: 30% (from 835 EFTS to 1,085 EFTS)

| Annual Report 2016

INTERNATIONAL STUDENTS AND PARTNERS

SIT Chief Executive and Invercargill MP Promote Southland region in Asia SIT’s Chief Executive Penny Simmonds spent ten days travelling to Sri Lanka, India and Vietnam promoting SIT and highlighting the opportunities available to international students in Southland, especially through the Southland Regional Development Strategy (SoRDS). The first part of the journey was to Sri Lanka, where Penny was accompanied by Invercargill Member of Parliament, Sarah Dowie, who said that she was impressed with SIT’s approach to the agents and potential international students, and noted the importance of international students to Southland in helping the region to grow.

“International students contribute greatly to our region’s economy, its diversity and culture in a positive way.” Member of Parliament for Invercargill, Sarah Dowie Whilst in Sri Lanka, the delegation spent time with the International College of Business and Technology (ICBT), SIT’s partner institute which allows the ICBT Higher National Diploma graduates to pathway to the third year of selected SIT degrees.

Educational Relationships with International Partners SIT continues to build its relationships with European partners through semester abroad studies. This has been popular with 35 students from Germany coming to SIT in 2016. 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 bachelor programmes such as commerce, environmental management and screen arts as well as postgraduate programmes. 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. SIT’s partnerships with international education institutions include: ªª People’s Government of Puning, Guangdong, China and 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) ªª Ho Chi Minh City University (Vietnam)

Chief Executive Penny Simmonds said that the pathway opportunities were very beneficial for international students because of the advantage associated with obtaining an internationally recognised bachelor’s degree in Southland, and were also advantageous for SIT domestic students who could study in the partner institute’s home country.

ªª Hochschule Fuer Wirtschaft (HfWU) (Germany)

SIT also celebrated the success of agents in Sri Lanka, India and Vietnam who have supported SIT over the years.

ªª Pearson VUE Authorised Centre

ªª LP3i Polytechnic Indonesia (Indonesia) ªª Hong Kong Polytechnic University (Hong Kong) ªª Hubei University of Education (China) ªª University of Applied Sciences Upper Austria (Austria) ªª Vietnam National University of Agriculture (Vietnam) ªª Rissho University (Japan) ªª PPKS /ICATS (Malaysia)

MP for Invercargill Sarah Dowie and Chief Executive Penny Simmonds (in centre) with group of Asian Annual Report 2016 | partners and SIT International Team representatives

INTERNATIONAL STUDENTS AND PARTNERS

SIT Joins International Academic Partnership Programme

Superdiversity Workshop Fosters Welcoming Environment

As part of strengthening relations between the institute and higher education institutes in the United States, SIT welcomed nine overseas representatives from the Institute of International Education’s (IIE) International Academic Partnership Programme.

SIT, in collaboration with the Superdiversity Centre, organised a Cultural Awareness and Building Cultural Capabilities workshop for 100 SIT staff and international students in February.

The programme is a partnership between IIE and Education New Zealand (ENZ) which seeks to increase the number of international partnerships between higher education institutions in the United States and New Zealand. SIT was one of six institutes from around the country to be selected as part of the programme, and SIT staff provided a comprehensive tour of SIT’s Invercargill campus to demonstrate to the representatives how the collaboration would work. Institute for International Education director Clare Banks said that the group appreciated the “excellent hosting” of SIT, and noted that New Zealand Institutes of Technology and Polytechnics were undertaking some of the most innovative and exciting things in tertiary education in the world. “The opportunities for more collaboration with U.S. colleges and universities is limitless and visits such as we’ve had at SIT this week have shown us just how many possibilities there are,” she said. Superdiversity Workshop Participants at SIT’s Invercargill Campus

The workshop, led by Superdiversity Centre chair and University of Auckland School of Law Adjunct Professor Mai Chen, helped give staff the tools they require to support SIT’s growing international student population. Ms. Chen said while enabling migrants was key, it was also important to create a welcoming environment. “The most important thing is to be welcoming. It requires a change in mindset,” she said. The workshop also offered solutions to assist in attracting, retaining and growing international student numbers on campus and long term in the Southland region. The initiative was linked to the Southland Regional Development Strategy and benefited both staff and students, as 50 international students were invited to attend the workshop to work alongside staff. The “Southland Challenge” component of the workshop saw staff and students divided into groups and given a cultural problem to solve. The teams presented sketches showcasing cultural awareness in front of a judging panel comprising Mayor Tim Shadbolt, Chamber of Commerce President Carla Forbes, Mai Chen and SIT Chief Executive Penny Simmonds. In closing the workshop Ms. Chen said the need for people to not judge others based on stereotypes was more important than ever, considering the increasing diversity of both SIT and New Zealand as a whole.

| Annual Report 2016

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.

Faculty of Health, Humanities and Computing

Faculty of New Media, Arts and Business

Advisory Committee

Chairperson

Company

Advisory Committee

Chairperson

Company

Environmental Management

Richard Bowman

Environment Southland

Hospitality

Scott Richardson

Information Technology

Ian Edwards

Code Blue

Kawa Whakaruruhau Roopu

Racheal Maheno

Southern District Health Board

Massage and Natural Therapy

Dave Cheyne

YMCA

Otago/Southland Executive Member of the NZ Chef Association and Catering and Hospitality Teacher at Southland Boys’ High School

Mental Health

Marg Poulgrain

Te Kotuku

Visual and Screen Arts

Kevin “K J” Jennings

Film Otago/ Southland

Nanny

Rose Cardoso

Kidicorp

Fashion

Phil Morrison

SIT

Nursing

Julia Russell

Presbyterian Support Southland

Music, Audio Production and Dramatic Arts

Trevor Daley

Trevor Daley Music Works

Social Services

Dawn Lloyd

Family Works

Business

Dave Rohan

Business Consultant

Sport and Exercise

Dave Cheyne

YMCA

Business Consultative Group

Craig Smith

French Burt Partners

Advisory Commmittee Dinner in SIT’s Hansen Hall

Annual Report 2016 |

COMMUNITY, INDUSTRY, BUSINESS

Christchurch Campus

SIT2LRN Faculty Advisory Committee

Chairperson

Company

Advisory Committee

Chairperson

Company

Creative Media

Teri McClelland

SIT

Automotive

Phil Hayes

Avon City Ford

Environment Southland

Construction

Graeme White

Building Intelligence Aotearoa Ltd

Electrical

Ray Williams

Williams Hickman Electrical

Hairdressing and Beauty Therapy

Midge Holden

Minifies

Mental Health Support

Franziska Kerdemelidis

Christchurch District Health Board

Refrigeration

Rodger Wyatt

Beattie Group

Trades and Applied Stephen West Sciences Health and Humanities

Matt Sillars

Sport Southland

Business

Teri McClelland

SIT

Faculty of Trades and Technology Advisory Committee

Chairperson

Company

Architectural Technology

Craig Hayward

Designbase

Automotive

Lisa Shaw

SIT

Beauty Therapy

Fiona Forrest

SIT

Business Administration

Mark Lee

Self Employed

Construction

Glenys McKenzie

Southern Group Training Trust

Electrical

Lisa Shaw

SIT

Mechanical Engineering

Noel Clayton

Competenz

Hairdressing

Richelle Holland

Les Sheikh

Industry Centre including NZDE

Michael Weusten

Springfree NZ

Joinery

Lisa Shaw

SIT

Plumbing

Rodger Herd

Masterlink

Transport and Logistics

Lisa Shaw

SIT

Travel and Tourism

Fiona Forrest

SIT

Veterinary Nursing

Brian Mason

Retired Veterinarian

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Sport, Exercise and Matt Howard Recreation

Christchurch City Council

Queenstown Campus Advisory Committee

Chairperson

Company

Queenstown Campus

Amanda Knowles

SIT

Gore Campus Advisory Committee

Chairperson

Company

Gore Campus

Doug Rodgers

SIT

COMMUNITY, INDUSTRY, BUSINESS

New Year Honour Recognises SIT Chief Executive

Industry and Business Sponsor SIT Award Ceremony SIT’s award ceremony is one of the highlights of the academic year celebrating the success and achievement of SIT’s top students over a wide range of programmes from certificate to postgraduate level. 150 awards were presented in 2016 with the vast majority of awards sponsored by local business and industry, reflecting their genuine commitment to work with SIT towards the shared objective that training delivered at the institute is relevant, up to date and aligns closely with industry standards.

Former Governor General, Lt Gen The Rt Hon Sir Jerry Mateparae congratulates Chief Executive Penny Simmonds after she received the CNZM at Government House in Wellington

Chief Executive Penny Simmonds said that SIT’s partnerships with business and industry were a significant factor in the institute’s success and included involvement in advisory committees, internships, Business Hub, clinical experience, work experience, joint research, guest speaking, mentoring, sponsorships, awards and joint projects. Ms Simmonds noted that the award ceremony was an opportunity for SIT to not only celebrate the outstanding achievements of the institute’s top students but also to showcase SIT’s close relationships with local and national business and industry who had assisted in the students’ success.

SIT Chief Executive Penny Simmonds was honoured to be named a Companion of the New Zealand Order of Merit (CNZM) in the 2016 New Year Honours List for her contribution to education, sport and the Southland community. One of 14 people in New Zealand to be made a Companion of the New Zealand Order of Merit, Penny, although extremely honoured, said the recognition was about more than just her work. “I think the whole award is recognising SIT and the work SIT has done for our province over the years. I’m thrilled for everyone at SIT. The staff and community have worked really hard to make SIT what it is.” Penny has been Chief Executive of SIT for 18 years and was instrumental in the implementation of the Zero Fees Scheme in 2001. This scheme has attracted thousands of students to the Southland region, boosting the economy and reversing population decline. It has given New Zealanders the opportunity to gain NZQA approved qualifications up to Master’s level and to progress to meaningful careers without incurring high levels of debt. Penny also initiated a marketing strategy, which upon implementation, successfully increased SIT’s international student numbers from 29 in 2000 to over 1,000 in 2015. Penny is currently President of New Zealand Hockey, having previously been Vice-President for four years and Chair of Hockey Southland for six years. She played a leading role in the development of world class hockey facilities including two Olympic standard water turfs in Invercargill, at which several international tournaments have been held. Penny has given very strong support to innumerable community groups and initiatives and is a board member of both the Community Trust of Southland and Venture Southland, a trustee of Film Otago Southland, is involved with the Youth Futures Programme, and has played a key role in the Southland Regional Development Strategy (SoRDS).

High- achieving Carpentry student Caitlin Harvey receiving one of her three awards from Chief Executive Penny Simmonds: ªª Norman and Barbara Clearwater Carpentry Award ªª Carters Award for Top Student Carpentry ªª Apprenticeship Scholarship Trust Award Excellence in Carpentry

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COMMUNITY, INDUSTRY, BUSINESS

SIT Chair and Chief Executive Play Lead Roles in Southland Regional Development Strategy

Queenstown Campus Cookery Programme to Meet Industry Demand

Throughout 2016 SIT Chair Sarah Brown and Chief Executive Penny Simmonds played significant roles in the development of the Southland Regional Development Strategy (SoRDS). Sarah held the shared role of SoRDS Joint Project Manager, while Penny headed the Welcome to Southland action team focussing on growing Southland’s population. The SoRDS management team was charged with the responsibility of producing a regional plan to drive the strategy forward with an expected outcome of delivering growth and change for Southland.

As with SIT’s Invercargill campus, students will be offered NZQA approved cookery and food and beverage programmes designed to give students a thorough grasp of culinary skills as well as the development of creative cooking and bartending techniques.

A strategy document released by SoRDS confirmed that if the regional population of Southland remained static for the next 10 years, it would fall to the concerning level of 1.8% of New Zealand’s population. The Welcome to Southland team led by Penny specifically investigated the potential to overcome this problem by increasing the number of international students studying in Southland, and exploring ways of assisting students and their families with pathways into employment and settlement in the local community.

The programme has been planned to complement the Diploma in Hotel and Tourism Management and Graduate Diploma in Hotel Management also offered at SIT’s Queenstown Campus. A wide range of courses is already offered at the campus including Beauty Therapy, Business and Management, Construction, Hospitality, Computing, Tourism and Hotel Management.

SIT announced in October it would be expanding its Queenstown campus to accommodate a new cookery programme in early 2017. The expansion project will include a state-of-the-art training kitchen suitable for up to 18 students in each intake of study.

Chief Executive Penny Simmonds confirmed that SIT’s Council made the decision to start offering cookery in Queenstown due to the industry demand for skilled labour to work in the increasing number of establishments being constructed for the expanding tourism industry.

One of the key actions to emerge from SoRDS was the establishment of the Southern Education Alliance (SEA), a group representing SIT, rural and urban Southland secondary schools. SEA’s objectives are to increase student numbers in the region, assist students and their families into employment and successful settlement, and enhance the economic, social and cultural life of the Southland community. The establishment of the SEA was fully supported by Government with former Minister of Tertiary Education, Skills and Employment Steven Joyce announcing a grant at the SoRDS Launch of $300,000 over 3 years to implement the group’s initiatives with the overall aim of growing the region’s population and expanding the region’s skill base.

Chair Tom Campbell presents at SoRDS Launch in Bill Richardson Transport World

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COMMUNITY, INDUSTRY, BUSINESS

Successful Trades Academy Partnership with Southland Secondary Schools SIT’s Trades Academy has proven a successful partnership with the region’s secondary schools with students performing well in the newly developed programme, gaining valuable tertiary study experience and achieving satisfactory pass rates. The Murihiku Trades Academy (MTA), which opened its door in February 2016, based at SIT’s Invercargill Campus, enrolled Year 12 students from seven Southland schools to offer vocational training in construction, engineering and beauty/ hairdressing/retail. 86% of the MTA students were successful in achieving all unit standards in their programmes with the majority gaining 25 credits towards NCEA Level 2 and the Vocational Pathway Award. Evaluations showed that the students enjoyed the courses because of the practical components and the ability to experience a taste of tertiary education, while they also helped students to decide future career paths. In addition, the Hokonui Tertiary High School (HTHS), based at SIT’s Gore Campus since 2013, reported success with 95% of students achieving all unit standards towards NCEA Level 2 and the Vocational Pathways Award. HTHS, for which SIT is also the Lead Provider, saw 100% pass rates for beauty/hairdressing/ retail and construction courses, and 90% pass rates for engineering and café/bar courses. SIT Trades and Technology Head of Faculty Doug Rodgers, who heads the Trades Academy said the students have engaged well with the industry-driven material. He considered that the partnerships being created with Southland secondary schools were just the start of a suite of initiatives being worked on to form lasting relationships in the wider education sector.

Annual Report 2016 |

COMMUNITY, INDUSTRY, BUSINESS

New ZealandVietnam Culinary Arts Collaboration Includes SIT Representative

Joint Venture with Cycling New Zealand in High Performance Hub

SIT Diploma in Professional Chef Practice graduate, Ella RitsonJones was the only SIT student of twelve culinary students to compete at the prestigious international Culinary Arts Collaboration in Ho Chi Minh City, Vietnam in June.

SIT announced in October 2016 its commitment to a three year term as the naming rights partner for the Southern Performance Hub, a newly developed high performance hub at the SIT Velodrome in ILT Stadium Southland as part of Cycling New Zealand’s Regional Performance Strategy.

The competition was part of the New Zealand-Viet Nam Culinary Collaboration – which is part of a wider education partnership – which aims to deepen the level of engagement between the two countries and enrich students’ learning. The competition featured three teams, each made up of two New Zealand students and two Vietnamese culinary students to deliver a fusion of the finest produce and techniques from each country to over 150 guests including the former Minister of Tertiary Education, Skills and Employment the Hon Steven Joyce. Ella’s fusion of the Kiwi pavlova with spun sugar, strawberry sherbet, lemongrass syrup and fresh fruit, proved to be a crowd favourite, with her team winning the ‘guest vote’ competition.

The hub is the third of eight to be established around the country as a means of forming a network to help sustain the future success of high performance cycling by increasing the quality and quantity of young riders entering the sport. CNZ said the SIT Southern Performance Hub would create development opportunities for talented young Southland riders, and provide pathways towards high performance. SIT Chief Executive Penny Simmonds said SIT’s involvement in the sponsorship came down to three key reasons: to create an environment for young athletes in Southland, to provide a link between sports and tertiary education, and to ensure SIT students were being exposed to high performance coaching. Sid Cumming SIT Southern Performance HUB Lead Coach, Mark Hotton General Manager Cycling Southland, Penny Simmonds SIT Chief Executive, and Graeme Hunn High Performance Athlete Development Lead Cycling NZ in the SIT Velodrome

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COMMUNITY, INDUSTRY, BUSINESS

Working with our Community… ªª Bluff Hill Environmental Trust Support: Bachelor of Environmental Management students assisting with possum control and building vermin traps at the Bluff Marae ªª Environment Southland: Bachelor of Environmental Management students continuing to remove wilding pines from Mid Dome and Queenstown ªª Forest and Bird Te Rere Reserve: Bachelor of Environmental Management students engaging in riparian planting ªª Ministry for Primary Industries, Asure Quality, and Environment Southland Velvet Leaf Eradication Project: SIT students from a wide range of programmes and their families helping with the eradication of the plant throughout the region

Bachelor of Nursing Year 1 Students’ Health Expo

ªª Relay for Life; Rest Homes; Pacific Island Trust Mother’s Day and Father’s Day events; YMCA community seminar: Bachelor of Therapeutic and Sports Massage students’ community involvements ªª Promotion of Health Initiatives for Invercargill City Council, Gore District Council, Environment Southland, South City Alive, SIT Library, Rowena Jackson Rest Home: Bachelor of Nursing students’ community initiatives ªª Sport Southland, Academy Southland, Volleyball Southland, Netball South, Rugby Southland, Adventure 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

SIT students and families support Velvet Leaf Eradication

ªª Bachelor of Information Technology projects: development of variety of websites for the community eg linking different cultures; sensitive temperature control system for family homes; management of rental home properties

ªª Southsure Emerging Artist Awards: public exhibition of student art from range of visual art programmes hosted by Pork Pie film director

ªª Chrysalis Fashion Showcase: public production by students from the Bachelor of Fashion (Design and Technology), Bachelor of Contemporary Music, Bachelor of Audio Production, Hospitality, Hairdressing and Beauty Therapy programmes ªª Kids’ Music Concerts: Musical performances and total technical support provided for 2,600 children and family by Bachelor of Contemporary Music and Bachelor of Audio Engineering students ªª Queenstown Jazz Fest: Bachelor of Audio Engineering students providing technical support for the festival, and Bachelor of Contemporary Music students contributing jazz to the entertainment.

ªª Pork Pie film: Bachelor of Visual Arts and Bachelor of Screen Arts students involved in internships during the filming of Pork Pie in Southland, working in a range of areas including the art department, locations and film production. ªª Koha Kai Charity: Certificate in Business (Level 4) students working with and fundraising for Koha Kai charity as their Enterprise Research Project ªª Tangaroa National Civil Defence and Emergency Management Exercise: Veterinary Nursing students participating in and supporting the training exercise based on a regional source tsunami scenario, testing the country’s preparations for a national tsunami impact at ILT Stadium Southland Annual Report 2016 |

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 2016: 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. 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 support sessions were held throughout the year. The one to one and group support sessions provided an introduction for new tutors to foundation classroom skills and academic quality requirements. ªª This year SIT was privileged to bring five Ako Aotearoa best practice workshops to Invercargill for SIT staff. The topics varied and covered a range from Developing Practices for New Tertiary Tutors to Successful Teaching Strategies for Pacific Learners. These were especially well attended by new staff and received very positive feedback from attendees.

ªª Managers and Team Leaders training day, an annual event, was held in August. This training provides middle managers with 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 Academic staff studied 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.

School of Nursing staff (from left) Karyn Madden, Mary McMillan, Jo Rhodes, Andrea Knowler and Murray Strathearn with Highfidelity Human Patient Simulator

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STAFF HIGHLIGHTS

Excellence in Tertiary Teaching Award Presented to Dr Sally Dobbs

Sam Haugh Selected for Allied Staff Excellence Award

The annual Excellence in Tertiary Teaching Award was presented to Dr Sally Dobbs, Academic and Relationship Leader for the School of Nursing in December 2016. Sally was recognised for her teaching excellence in her own classroom practice, as well as for the inspiration she had provided in teaching excellence throughout the School of Nursing. Sally’s philosophy of teaching using evidence-based practice and her engagement in research to inform her teaching provided a true ‘leading by example’ mentoring role in the School of Nursing. Using her professional development entitlements to complete a Doctorate in Nursing Education, Sally’s thesis was aligned to teaching education: Failing to fail: experiences of assessing student nurses in clinical practice. In addition to her teaching role, the successful work undertaken by Sally in the alignment of SIT’s nursing and health science teaching programmes with key industry stakeholders and private community hospitals had been an important factor in the re-development of the Bachelor of Nursing. Due to Sally’s dedication to meeting standards in all areas, SIT received a completely compliant external audit report for the Bachelor of Nursing from the Nursing Council with no further audit required for the next four years.

The 2016 Allied Staff Excellence Award was awarded to Sam Haugh of Information Technology Services. Sam, who has worked at SIT for the past 5 years, has a commitment to providing excellence in IT services especially in challenging contexts. Sam’s role as ITS Administrator involves the purchasing and inventorying of new IT equipment and supplies, maintaining relationships with SIT’s IT suppliers and responding to generic queries. In addition, Sam’s responsibilities include the development and maintenance of Blackboard and SharePoint and the training of SIT staff members on the use of these applications. This is an area which Sam finds particularly rewarding when seeing the progress made by staff in the use of these applications. A further area of responsibility for Sam is the resolution of student issues with Blackboard which are unable to be resolved by the Helpdesk team. Sam has consistently demonstrated excellent customer service by showing flexibility in different ways to help staff learn and manage IT related matters, and by providing service beyond the call of duty. An example is the timely help Sam provides, repeatedly making herself available just as soon as needed by staff and actively inviting staff to contact her for assistance. Sam’s responses have enabled staff to learn new processes more quickly, demonstrating outstanding customer service which is above and beyond the call of duty. Sam’s personal style with people is of a very high quality being viewed as nonjudgemental and friendly, which has encouraged staff to seek help and extend their knowledge on IT issues. Annual Report 2016 |

STAFF HIGHLIGHTS

Staff Develop New Programmes with Support from Industry Throughout 2016 staff developed and received approval and accreditation from the New Zealand Qualifications Authority to deliver 52 new and replacement programmes, all of which were backed by significant regional and national industry support, including strong support from SIT Advisory Committees. SIT staff continued to develop their portfolio of programmes at diploma and certificate level including: ªª Redevelopment of existing programmes to meet the requirements of NZQA in the Mandatory Review of Qualifications process ªª Development of new programmes to meet local industry needs ªª Development of Vocational Pathways programmes for students needing to upskill or re-engage in learning opportunities ªª Development of programmes for Trades Academy students and for the new DualPathways Pilot Scheme initiative introduced by TEC in October 2016

Third Master’s Programme Approved A highlight of the year was receiving approval and accreditation for a third Master’s programme with associated postgraduate qualifications. This was a considerable achievement for staff from three discipline areas: therapeutic and sports massage, sport and exercise, and nursing. Support from members of the relevant Advisory Committees who were involved in the application throughout the duration of the application process was very strong and appreciated by SIT staff. The Master’s and associated programmes approved, accredited and planned for commencement in 2017 were: ªª Master of Applied Health Sciences (Wellness and Rehabilitation) ªª Postgraduate Diploma in Applied Health Sciences (Wellness and Rehabilitation) ªª Postgraduate Certificate in Applied Health Sciences (Wellness and Rehabilitation)

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Master’s Programmes Commence at SIT The Master of Information Technology and Master of Applied Management programmes, the first two Master’s qualifications at SIT, commenced in 2016. IT Programme Manager John Ayoade said it was important for Southland for students to be offered a higher level of education such as Master’s qualifications to keep students in the region and to boost the economy. John said that there were many people working in industry wishing to upskill and to have the opportunity to advance in their careers, and that while the programme would attract more students locally, it would also attract students from around the country and international students as well. SIT’s Applied Management Programme Manager Frank Bennett said most of the students taking the Master’s were people who already operated businesses and were already working in higher positions and wanted the opportunity to improve their current employment situation in Southland.

STAFF HIGHLIGHTS

Staff Research 2016 Southern Institute of Technology and Otago Polytechnic Collaborative Research Symposium This year saw the inaugural collaborative staff research symposium run in partnership with Otago Polytechnic. Seventeen staff presented their research, including five who came from Otago Polytechnic in Dunedin, and 12 SIT staff from the Health, Humanities and Computing and SIT2LRN faculties. The event provided the opportunity for SIT staff to share their research findings as well as work-in-progress with their colleagues, and to network with researchers from Otago Polytechnic. “SIT has held a research forum for staff for the past three years, however this year we were delighted to be able to collaborate with colleagues from Otago Polytechnic,” said SIT Research Manager Dr Sally Bodkin-Allen. “A fascinating range of projects was presented by researchers from both institutes, with plenty of opportunities for audience questions and discussion.” The varied agenda included the experiences of New Zealand nurses serving overseas in World War One, transnational educational opportunities, health benefits of beetroot and deer velvet, lighting design for the vision-impaired, the dilemmas of scientific uncertainties in environmental policymaking, and research in a range of technology topics including e-portfolios, open source accessibility software and search engine optimisation. “Presentation topics were scheduled so as to offer the audience a fascinating mixture of subjects,” Sally explained. “Part of the appeal of this symposium is the opportunity it gives the attendees to hear about projects in diverse areas that they might otherwise not be aware of, and it is surprising how often connections can be drawn between research approaches and findings in quite different fields.” The audience was able to get involved in practical exercises to improve human dynamic balance and was challenged to think about how best to inform communities about natural hazards, how to improve the lives of people with disabilities, the impacts of art research on the wider community and the experiences of international students writing in English as a second language. Attendees commented on the obvious passion of the presenters for their topics and the high quality of the research. At the end of the day audience members voted for the ‘People’s Choice Award’ for their favourite presentation of the day. The award was presented to two researchers: Helen Jeffery from the School of Occupational Therapy at Otago Polytechnic, who shared her research into the use of adventure therapy by occupational therapists, and Barnaby Pace who teaches on SIT’s online professional communications degree programme, for his presentation of a case study on the dissemination of flood hazard information to ratepayers by a local authority. It is planned to hold the collaborative event again in 2017, hosted by Otago Polytechnic in Dunedin.

Southland Health Research ‘Five Minute Findings’ Forum The biennial Southland Health Research Five Minute Findings Forum was held in November 2016 in collaboration between SIT and Southern District Health Board (SDHB). This was the third time the forum has been run, and this year it was held at SIT’s campus in Invercargill. There was a record turn-out of presenters, with 19 researchers from SIT, the Southern District Health Board and the community sharing the results of their research projects in just five minutes each. A very wide range of topics were covered during the day, ranging across the fields of health education, community health and environmental health, access to healthy nutrition, medicine, nursing, sexual health and accident prevention. “We were delighted to have such a full agenda and a great deal of collegial interest for the forum this year,” said Dr Jo Whittle, SIT Research Officer and co-organiser of the event alongside Gillian Sim, Nurse Researcher, Practice Development, at the Southern District Health Board. “The format of the event is fast-paced and fun, but it also has a serious intention, to provide a unique opportunity for people to hear about the research and health-related projects occurring in Southland, in a bite-sized, summarised format. If they want to know more, people are encouraged to talk to the presenters and ask for more detailed information.” The audience of around 60 people was made up of professionals from hospital, tertiary education and community settings, and attendees found the event very informative and useful. Following the five minute presentations Dr Nicola Swain, Senior Lecturer in Psychological Medicine at the Dunedin School of Medicine, gave a longer address on psychological interventions for health. A panel of three judges assessed the performances of the presenters. They awarded the $250 prize for best presentation to Lara Gleeson, a nurse in the Emergency Department of the SDHB, for her research into fracture clinic redesign in the Emergency Department. This year forum attendees had the opportunity to vote for the presentations they found most interesting, and the winner of this audience choice award was SIT nurse educator Lucy Prinsloo for her presentation on the influences of changes to enrolled nursing in New Zealand.

Annual Report 2016 |

STAFF HIGHLIGHTS

Programme Managers Present Research Findings at International Massage Therapy Conference Dr Jo Smith and Dr Donna Smith were invited by the Massage Therapy Foundation to speak at the triennial International Massage Therapy Research Conference in Seattle in May. Jo and Donna are both programme managers of the Bachelor of Therapeutic and Sports Massage (BTSM), the first Bachelor’s degree in massage therapy in the southern hemisphere, and co-lead the New Zealand Massage Therapy Research Centre. The development of a culture of research within the BTSM and the New Zealand massage industry has been one of Jo’s strong focuses, and her PhD research concentrated on the culture of care and practice patterns within New Zealand. Jo has also carried out research into outcomes, professionalization and educational issues pertinent to massage therapy.

Invited as a keynote speaker to the Seattle Conference, Jo’s presentation illustrated 15 years of bachelor’s degree education for massage therapists in New Zealand, as well as discussing the ‘Changing Landscapes and the Next Generation of Massage Therapists’. Donna presented two research posters at the conference which represented part of her PhD research and a report on the survey findings and the ‘Conceptual Model: Stepping Towards Legitimation of Massage Therapists’. The conference was designed to bring industry professionals from around the world up-to-date on the latest knowledge, allow them to meet other research professionals, share insights with massage colleagues, and potentially have an impact on the direction of future research in massage therapy.

Dr Jo Smith (left) and Dr Donna Smith (right), Programme Managers for Bachelor of Therapeutic and Sports Massage

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STAFF HIGHLIGHTS

Staff Research Outputs 2016 Published papers and articles Ayoade, J. (2016). Enhancing cloud computing with security trust model. Proceedings of the Third Asia Pacific Conference on Advanced Research (APCAR) Conference, 583-590. Melbourne, Australia: Asia Pacific Institute of Advanced Research. Retrieved from http://apiar.org.au/wpcontent/uploads/2016/10/ 6_ APCAR_July_BRR777-583-590.pdf Batson, B. S. (2016). A dry-fracture technique for the optimum preparation of microsporidiainfected tissues for scanning electron microscopy. Protistology, 10 (1), 3-12. Retrieved from http:// protistology.ifmo.ru/num10_1/ batson_protistology_10-1.pdf Bodkin-Allen, S. (2016, July). Promoting practice: Ideas for parents, Tune Me In, 11 (2). Dobbs, S. (2016). “Failing to fail” – a phenomenological research project to explore the difficulties of failing nursing students in clinical practice. Asia Pacific Military Nursing Newsletter, 1(2), 7-8. Dodson, G., & Palliser, A. (2016) Advancing practical theory in environmental communication: A phronetic analysis of environmental communication in New Zealand. In Goodwin, J. (Ed.). Confronting the challenges of public participation: Issues in environmental, planning and health decision-making, 19. Ames, Iowa: Iowa State University.

McCully, K. (2016). What do candidates for the Invercargill City mayoralty and council think about the future of arts and culture in the city? Retrieved from http:// www.kathrynmccully.com/localelection-2016/ McMillan, M. (July 2016). Head2Head Magazine/Newsletter of the NZNO Mental Health Nurses Section. Wellington, New Zealand. [?] Rhodes, J., Strathearn, M., McMillan, M., Madden, K., & Knowler, A. (2016). Mask Ed™ (KRS Simulation), Down Under – Mask Ed experiences in New Zealand. Central Queensland University Mask-Ed Newsletter. Central Queensland University. 1(2), 3-5. Rhodes, J., Winder, P., Strathearn, M., McMillan, M., Richter, K K., & McLeod, M, (2016). Breaking down educational silos. Kia Tiaki Nursing New Zealand (22) 1. 14-15. Smith, D. & Smith, J. (2016, Second Quarter). Massage therapy research update. June 2016. MNZ Magazine. Smith, D. & Smith, J. (2016, First Quarter). Massage therapy research update. March 2016. Snapshot of findings from 2015 MNZ Survey. MNZ Magazine. Smith, D. & Smith, J. (2016). Report on findings from the December 2015 MNZ survey. Massage New Zealand: New Zealand.

Smith, D. & Smith, J. (2016, Second Quarter). Massage therapy research update. June 2016. MNZ Magazine. Smith, D. & Smith, J. (2016, First Quarter). Massage therapy research update. March 2016. Snapshot of findings from 2015 MNZ Survey. MNZ Magazine. Smith, D. & Smith, J. Report on findings from the December 2015 MNZ survey. Massage New Zealand: New Zealand. Smith, D. (2016, First Quarter). Continuing professional development. MNZ Magazine. Smith, H., Mann, S., Smith, L., Trounsen, R., Flannagan, T., McCarthy, D., & Sutton, K. (2016). Use of personas in education - A case study of development of core competencies. In Verhaart, M., Erturk, E., Steele, A., & Morton, S. (Eds.). Proceedings of the Computing and Information Technology Research and Education New Zealand (CITRENZ2016) and the 29th Annual Conference of the National Advisory Committee on Computing Qualifications. Retrieved from http://www. citrenz.ac.nz/conferences/2016/ pdf/2016CITRENZ_3_Suppl_ Smith_Personas_00-4.pdf Smith, J. (2016, First Quarter). Reflective practice and continuing professional development. MNZ Magazine.

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STAFF HIGHLIGHTS

Edited publications Bodkin-Allen, S. (Ed.). (2016, May). Tune Me In, 11 (1). Bodkin-Allen, S. (Ed.). (2016, August). Tune Me In, 11 (2). Bodkin-Allen, S. (Ed.). (2016, November). Tune Me In, 11 (3). Hoffman, J. (Ed.). (2016). Southern Institute of Technology Journal of Applied Research. Retrieved from https://www.sit.ac.nz/SITJAR Schuler, A. (2016). Multi Media Matters, Regular Column, Mudcakes and Roses. October - December 2016. Tasman and Nelson District Councils.

Books and reports Whittle, J., & Bodkin-Allen, S. (2016). Southern Institute of Technology: Research report 2015. Southern Institute of Technology. Invercargill, New Zealand.

Exhibitions Belton, P. (2016). Singers [Paintings]. Roundup, City Gallery, Invercargill, New Zealand: 8-30 July. Gillies, P.A.D. (2016). The EnterMan duology: Exploring techniques in diegetic filmmaking. Roundup, City Gallery, Invercargill, New Zealand: 8-30 July. Mann, R. (2016). The tale enders: Phase one. 4-29 October. City Gallery, Invercargill, New Zealand. Mann, R. (2016). The tale enders. Roundup, City Gallery, Invercargill, New Zealand: 8-30 July.

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Mann, R. (2016). Reboot. Invercargill, New Zealand: ILT Art Awards, 6th August â&#x20AC;&#x201C; 3rd September. Myers, R. (2016). Attach to the bottom of things [Video installation]. Roundup, City Gallery, Invercargill, New Zealand: 8-30 July. McCully, K. (2016). a southland museum: condition report. Roundup, City Gallery, Invercargill, New Zealand: 8-30 July.

Performance Myers, R. (2016). Body acts and documents [Performance and exhibition]. 16 June. Test Space, Auckland University of Technology, Auckland, New Zealand. Myers, R. (2016). Body acts and documents [Performance and exhibition]. St Pauls Gallery 3, Auckland University of Technology (21st July), Auckland, New Zealand. Skerrett, P. [Musical director]. (2016). ILT Christmas at the stadium. December 23rd, Invercargill, New Zealand.

Creative outputs Bodkin-Allen, S. (2016). Suite from A Nursery Tale (5 Movements) for cornet, and 2 alto saxophones [Musical composition]. Retrieved from http://sounz.org.nz/ Bodkin-Allen, S. [music] & Cowley, J. [text](2016). Cricketâ&#x20AC;&#x2122;s Storm for SSA choir [Musical composition]. Retrieved from http://sounz.org. nz/ Gillies, P.A.D. (2016, August 9). Liberation Force web-series [Video files]. Retrieved from https://www. youtube.com/watch?v=n018Zei4rs&t=2s

McCully, K. (2016). Performing the DIY public museum [Web site]. Retrieved from http://www. kathrynmccully.com/

Web Publications McCully, K. (2016, 5 September). Local elections 2016: cold feet and apathy? [Web log]. Retrieved from http://www.kathrynmccully. com/blog/ McCully, K. (2015, August 26). Combined gallery for city touted [Web log]. Retrieved from http://www. kathrynmccully.com/blog/

Conference presentations and posters Abbot, A. (2016). Transnational education and normative and non-normative discourses of educational partnership: Indonesia-NZ case study. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Ayoade, J. (2016). Enhancing cloud computing with security trust model. Third Asia Pacific Conference on Advanced Research (APCAR) Conference, Melbourne, Australia. Bodkin-Allen, S. & Swain, N. (2016). Mindful singing: Combining mindfulness and group singing to boost musical confidence of primary and ECE teacher trainees. Australia New Zealand Association for Research in Music Education Conference, Auckland, New Zealand. Botafogo, F. (2016). A transactionsoriented approach to introducing double-entry bookkeeping. Accounting and Finance Association of Australia and New Zealand (AFAANZ) Annual Conference, Gold Coast, Australia.

STAFF HIGHLIGHTS

Dobbs, S. (2016). Care under fire. Southland Heritage Forum, Invercargill, New Zealand. Dobbs, S. (2016). Behind the mask: courage, care and compassion of New Zealand’s WW19.30am nurses. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Dodson, G., & Palliser, A. (2016). Postnormal science and (wicked) policy problems: The case of the Māui dolphin. Unitec Research Symposium, Auckland, New Zealand. Fallu, M. (2016). Disability, work and leisure. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Ganeshkumar, A. (2016). Lying down as a patient: An exploration of role play simulation. Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand. Knowler, A. (2016). Debriefing after simulation scenarios in New Zealand undergraduate nursing education. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. McKenzie, D. (2016). Improving dynamic balance: a comparison between two specific slacklining and Thera band exercise interventions. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand.

Madden, K., Strathearn, M., Rhodes, J., McMillan, M.,* & Knowler, A.* (2016). From construction to deconstruction to implementation: An autoethnographic enquiry by nurse educators teaching by means of Mask-Ed™ (KRS simulation). Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Mumford, J. (2016). Postgraduate international students’ academic writing challenges: risk factors and supporting strategies. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Musika, F. (2016). A content analysis of mental health communication of online students support groups. Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand. Pace, B. (2016). Floodgate: A case study on the dissemination of flood hazard information to ratepayers by a local authority. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Palliser, A. (2016). The dilemmas of scientific uncertainties in environmental policy-making. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Payne, W. (2016). Effects of beetroot on the cardiovascular system to improve wellness. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand.

Pienaar, H. (2016). The perceived benefits of the topical application of quality deer velvet for the treatment of joint pain. Southern Institute of Technology & Otago Polytechnic Collaborative Staff Research Symposium, Invercargill, New Zealand. Prinsloo, A. (2016). What’s in a name? What’s influenced changes to Enrolled Nursing in New Zealand. Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand. Rhodes, J., McMillan, M.,* & Strathearn, M.* (2016). Inter-professional education: Breaking down silos. Vocational Education and Training Research Forum, Wellington, New Zealand. Rhodes, J., McMillan, M., Madden, K.,* & Strathearn, M.* (2016). Edutainment: Using board games and television game shows to ignite learning. National Tertiary Learning and Teaching Conference, Rotorua, New Zealand. Rhodes, J., McMillan, M., Madden, K.,* Strathearn, M.,* & Knowler, A.* (2016). Mask-Ed, Pup-Ed, and simulators in the south. Southern Region Enrolled Nurse Section Conference, Dunedin, New Zealand. Rhodes, J., McMillan, M., Strathearn, M.,* Madden, K.,* & Knowler, A.* (2016). Connecting with educators: an autoethnographic enquiry by nurse educators teaching using Mask-Ed™ (KRS simulation). National Tertiary Learning and Teaching Conference, Rotorua, New Zealand.

Annual Report 2016 |

STAFF HIGHLIGHTS

Rhodes, J., McMillan, M., Strathearn, M.,* Madden, K.,* & Knowler, A.* (2016). From construction to deconstruction to implementation: An autoethnographic enquiry by nurse educators teaching by means of Mask-Ed™ (KRS Simulation). Poster presentation to the Joanna Briggs Institute 20th Anniversary Conference, Adelaide, Australia. Smith, D. M., Smith, J. M., McLean, A. & Spronken-Smith, R. (2016). A conceptual model: Stepping towards legitimation for New Zealand massage therapists involved in therapeutic/ clinical rehabilitation massage therapy practice. Poster presentation to the International Massage Therapy Research Conference, Seattle, USA. Smith, D. M., Smith, J. M., McLean, A. & Spronken-Smith, R. (2016). Perceptions, benefits and barriers to Bachelor’s degree-based education for massage therapy: PhD thesis survey findings. Poster presentation to the International Massage Therapy Research Conference, Seattle, USA. Smith, H., Mann, S., Smith, L., Trounsen, R., Flannagan, T., McCarthy, D., & Sutton, K. (2016). Use of personas in education - A case study of development of core competencies. Computing and Information Technology Research and Education New Zealand (CITRENZ2016) Conference, Wellington, New Zealand. Smith, J. M. (2016). Keynote Address: Changing landscapes and the next generation of massage therapists. International Massage Therapy Research Conference, Seattle, USA.

| Annual Report 2016

Smith, J. M. (2016). Conducting small scale research projects as part of the undergraduate degree curricula. Panel presentation to the International Massage Therapy Research Conference, Seattle, USA. Strathearn, M., Madden, K., Rhodes, J.,* McMillan, M.,* & Knowler, A.* (2016). An autoethnographic enquiry by nurse educators teaching by means of Mask-Ed™ (KRS Simulation). Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand. Swain, N. & Bodkin-Allen, S. (2016). Positive Intervention for trainee teachers to improve singing. Poster presentation at the 8th European Conference on Positive Psychology Angers, France.

Public talks and Workshops Bodkin-Allen, S. (2016). Tips and tricks for encouraging practice. Presentation at Musical Motivators Seminar, (Southland Music Education Parent Afternoon), 12 June, Invercargill. Bodkin-Allen, S. (2016). Mind that song. Workshop presented at the Auckland MENZA (Music Education New Zealand Aotearoa) Professional Development Day, 6 May. Conradson, T. (2016). To smoke or not to smoke. Presentation to Southern District Health Board Research Forum, Invercargill, New Zealand. Dobbs, S. (2016). Centennial commemorations. Public talk at Invercargill Public Library, Invercargill, New Zealand, April. Dobbs, S. (2016). The evolution of nursing from war. Public talk at U3A, Invercargill, New Zealand, April. Rhodes, J., McMillan, M., Strathearn, M.,* Madden, K.,* & Knowler, A.* (2016). Mask-Ed, Pup-Ed, and simulators down under. Presentation to the Southern Regional Council – Professional Issues Seminar, Dunedin, New Zealand. Skaria, R. (2016). Prevention of cancer. Public talk at Health Seminar, SDA Church, Invercargill, New Zealand. 30th October, 2016, Strathearn, M. (2016). Male wellness: Challenges and strategies. Presentation to Southland Mental Health Consumers Forum, Invercargill, New Zealand.

STAFF HIGHLIGHTS

Postgraduate Theses Domigan, J.E. (2016). Employersâ&#x20AC;&#x2122; perceptions of new graduate registered nursesâ&#x20AC;&#x2122; preparedness to work in primary health care. Unpublished Masters dissertation. Eastern Institute of Technology, New Zealand. Woodward, L. (2016). GST compliance in New Zealand: A comparative study. Unpublished Masters dissertation. Massey University, New Zealand.

Annual Report 2016 |

STATEMENT OF SERVICE PERFORMANCE

Statement of Service Performance

| Annual Report 2015 2016

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

2015 Actual

2016 Target

2016 Actual

1.1

Improve course completion rates for all students

Percentage increase in course completion rates for all students

78%

75%*

1.1

Improve qualification completion rates for all students

Percentage increase in qualification completion rates for all students

72%

72 %

70%*

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

94%

≥84%

94%

1.1

Percentage of graduates gaining employment or progressing to further study

Percentage of graduates measured by annual Graduate Destination Survey

96%

≥ 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%

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

=2014

≥2015

=2015

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 2016 |

STATEMENT OF SERVICE PERFORMANCE

Goal

Output

Output measure

2015 Actual

2016 Target

2016 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 ªª

Foster and enhance relationships with all external stakeholders

ªª

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

ªª

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

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

=2014

≥ 2015

=2015

2.2

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

=2014

≥ 2015

=2015

2.3

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

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

100%

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%

Provide a physically desirable learning and working environment

100%

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

| Annual Report 2016

STATEMENT OF SERVICE PERFORMANCE

Goal

3.1

Operate a viable educationally directed business entity

Output

Output measure

2015 Actual

2016 Target

2016 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%

94%

Achieve a surplus of 1.5% of net assets

2.46%

≥1.5%

2.17%

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

$7.0m

$7.1m

$7.2 million = 15% of opex

Maintain an operating surplus of 3% of revenue

4.97%

≥ 3%

5.14%

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

256.52%

≥ 100%

226.19%

Achieve at least 5% net cash flow from operations

15.78%

≥ 5%

16.06%

New staff attract 80TTH abatement for training

100%

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

=2014

≥ 2015

=2015

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

(104%)

= 15% of opex

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

Annual Report 2016 |

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 2016 with the aim of meeting or exceeding the previous year’s ratios.

2016

2015

Quick Ratio

3.13

2.92

10.66

10.60

Ratio of: Current Monetary Assets Current Monetary Liabilities

Equity/Debt Ratio

Ratio of: Total Equity Total Liability

Institute Performance Statistics Indicators

Net Revenue Margin

Net Income Total Revenue

5.16%

4.97%

Total Asset Turnover

Total Revenue Total Assets

42.29%

45.33%

Return on Investment (Du Pont formula)

Net Income x Total 2.18% Revenue Total Revenue x Total Assets

2.25%

Indicator

Target

Actual

Institution EFTS Total

3,858

3,624

35.76

27.52

(Government Funded Mainstream programmes) Use of Teaching Resources (EFTS: Tutor Ratio) Note: Managers are excluded from the data to measure “use of teaching resources” 2016

2015

Number of EFTS (mainstream funding) - Actual

3,624

3,536

Number of EFTS (mainstream funding) – Target

3,858

3,412

94%

104%

Number of EFTS (all courses) - Actual

5,313

4,908

Number of EFTS (all courses) – Target

5,316

4,556

Percentage Actual to Target

100%

108%

^Teaching Staff FTE – Actual

Percentage Actual to Target

148.65

156.41

^Actual EFTS per FTE Tutor ratio

33.60

24.44

^Budget EFTS per FTE Tutor ratio

33.62

18.57

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

| Annual Report 2015 2016

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 2016.

Sarah Brown

CHAIRPERSON OF COUNCIL

Penny Simmonds CHIEF EXECUTIVE

1st May, 2017 Annual Report 2016 2015 |

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report To the readers of Southern Institute of Technology and group’s financial statements and statement of service performance for the year ended 31 December 2016 The Auditor-General is the auditor of Southern Institute of Technology (the Institute) and group. The Auditor-General has appointed me, Julian Tan, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the Institute and group on his behalf. Opinion We have audited: • the financial statements of the Institute and group on pages 57 to 86, that comprise the statement of financial position, statement of commitments, and statement of contingencies as at 31 December 2016, the statement of financial performance, statement of comprehensive revenue and expense, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and • the statement of service performance of the Institute and group on pages 49 to 52. In our opinion: • the financial statements of the Institute and group on pages 57 to 86: • present fairly, in all material respects: • the financial position, commitments, and contingencies as at 31 December 2016; and • the financial performance and cash flows for the year then ended; • comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Standards. • the statement of service performance of the Institute and group on pages 49 to 52 presents fairly, in all material respects, the Institute and group’s service performance achievements measured against the proposed outcomes described in the investment plan for the year ended 31 December 2016. Our audit was completed on 1 May 2017. This is the date at which our opinion is expressed. The basis for our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities relating to the financial statements and the statement of service performance, we comment on other information, and we explain our independence. Basis for our opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report. We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

| Annual Report 2016

INDEPENDENT AUDITOR’S REPORT

Responsibilities of the Council for the financial statements and the statement of service performance The Council is responsible on behalf of the Institute and group for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand. The Council is also responsible on behalf of the Institute and group for preparing a statement of service performance that is fairly presented. The Council is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. In preparing the financial statements and the statement of service performance, the Council is responsible on behalf of the Institute and group for assessing the Institute and group’s ability to continue as a going concern. The Council is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Council intends to liquidate the Institute and group or to cease operations, or has no realistic alternative but to do so. The Council’s responsibilities arise from the Crown Entities Act 2004 and the Education Act 1989. Responsibilities of the auditor for the audit of the financial statements and the statement of service performance Our objectives are to obtain reasonable assurance about whether the financial statements and the statement of service performance, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of these financial statements and statement of service performance. For the budget information reported in the financial statements and statement of service performance, our procedures were limited to checking that the information agreed to: •

the Institute and group’s Council approved budget for the financial statements; and

•

the investment plan for the statement of service performance.

We did not evaluate the security and controls over the electronic publication of the financial statements and the statement of service performance. As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also: •

We identify and assess the risks of material misstatement of the financial statements and the statement of service performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute and group’s internal control.

•

We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.

•

We conclude on the appropriateness of the use of the going concern basis of accounting by the Council and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Institute and group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to Annual Report 2016 |

INDEPENDENT AUDITOR’S REPORT

draw attention in our auditor’s report to the related disclosures in the financial statements and the statement of service performance or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Institute and group to cease to continue as a going concern. •

We evaluate the overall presentation, structure and content of the financial statements and the statement of service performance, including the disclosures, and whether the financial statements and the statement of service performance represent the underlying transactions and events in a manner that achieves fair presentation.

•

We obtain sufficient appropriate audit evidence regarding the financial statements and the statement of service performance of the entities or business activities within the group to express an opinion on the consolidated financial statements and the consolidated statement of service performance. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Our responsibilities arise from the Public Audit Act 2001. Other information The Council is responsible for the other information. The other information comprises the information included on pages 1 to 47, and 87 to 92 in the annual report, but does not include the financial statements and the statement of service performance, and our auditor’s report thereon. Our opinion on the financial statements and the statement of service performance does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements and the statement of service performance, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the statement of service performance or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Independence We are independent of the Institute and group in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1 (Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board. Other than the audit, we have no relationship with or interests in the Institute or any of its subsidiaries.

Julian Tan Audit New Zealand On behalf of the Auditor-General Dunedin, New Zealand

| Annual Report 2016

STATEMENT OF ACCOUNTING POLICIES

Statement of Accounting Policies Reporting Entity The Southern Institute of Technology (the Institute) is a Tertiary Education Institute (TEI) domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989. 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 (PBEs) for the purposes of financial reporting. The financial statements of the Institute and group are for the year ended 31 December 2016. The financial statements were authorised for issue by the Council on 1st May 2017.

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.

Statement of Compliance 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). The financial statements have been prepared in accordance with Tier 1 PBE standards. These financial statements comply with PBE standards.

Standards issued and not yet effective and not early adopted There are no standards issued and not yet effective that are relevant to the Insititute or group.

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

Significant Accounting Policies The financial statements include a statement of financial performance, a statement of comprehensive revenue and 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 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

Student Achievement Component (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.

Student Tuition Fees 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.

Annual Report 2016 |

STATEMENT OF ACCOUNTING POLICIES

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.

Interest Interest revenue is recognised using the effective interest method.

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 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. 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. 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.

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

Impairment of Financial Assets 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.

| Annual Report 2016

STATEMENT OF ACCOUNTING POLICIES

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.

Cash and Cash Equivalents Cash and cash equivalents include 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.

the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue. 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. 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.

The most recent valuation of land and buildings were performed by an independent registered valuer, Rural Value, a QV business unit. The valuation is effective as at 30 Sept 2016. 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. 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

Annual Report 2016 |

STATEMENT OF ACCOUNTING POLICIES

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

5 - 100 years

1 – 20%

Motor Vehicles

3-5 years

20-33%

Furniture and Fittings

10 years

10%

Computers

3-5 years

20-33%

General Equipment

3 - 10 years

10-33%

Leases & Leasehold 3 - 5 years Improvements

Term of Lease 20 – 33%

The above rates have been applied consistently. 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 TVCs and Online Content are capitalised when it is probable that future economic benefits arising from use of the

| Annual Report 2016

intangible asset will flow to the group. Following the initial recognition of the TVCs 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. 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.

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.

STATEMENT OF ACCOUNTING POLICIES

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.

Employee Benefits Short Term Benefits 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. 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.

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:

- 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, payables and Overseas StudentsNegative Debtors (classified under Revenue in Advance), 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.

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

Budget Figures 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 2015.

- 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

Annual Report 2016 |

STATEMENT OF ACCOUNTING POLICIES

Cost Allocation 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 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

| Annual Report 2016

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 2016: 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. 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 14.

STATEMENT OF ACCOUNTING POLICIES

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.

Subsidiaries 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. 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.

Associate 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. 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.

Investments in subsidiaries are carried at cost in the Institute’s parent entity financial statements.

Annual Report 2016 |

FINANCIAL STATEMENTS

Financial Statements Statement of Financial Performance For the year ended 31 December 2016

Southern Institute of Technology

Group

Actual

Budget

Actual

2016

2015

2016

2015

Notes

$'000

Revenue Government Grants

32,610

31,511

32,026

32,610

32,026

Student Tuition / Course Fees

9,712

8,759

9,733

9,712

9,733

Revenue - Other

8,236

7,866

7,456

8,214

7,407

50,557

48,136

49,215

50,535

49,166

21,705

21,300

21,224

21,705

21,224

10 11

5,521

5,617

5,324

5,521

5,324

360

20,774

19,593

20,194

20,774

20,194

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

(Gains) / Losses on disposal of assets Total Expenditure Share of Associatesâ&#x20AC;&#x2122;s surplus/(deficit)

(10)

48,007

46,870

46,807

48,007

46,807

2,598

1,266

2,444

2,576

2,395

Net surplus

Statement of Comprehensive Revenue & Expense For the year ended 31 December 2016

Southern Institute of Technology

Group

Actual

Budget

Actual

2016

2015

2016

2015

$'000

Net surplus

2,598

1,266

2,444

2,576

2,395

Gains on property revaluations

7,556

Total comprehensive revenue

10,154

1,266

2,444

10,132

2,395

Notes

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

| Annual Report 2016

FINANCIAL STATEMENTS

Statement of Changes in Equity For the year ended 31 December 2016

Southern Institute of Technology Actual

Budget

Group Actual

Actual

2016

2015

2016

2015

$'000

Balance at 1 January

99,222

98,257

96,778

99,247

96,852

Total comprehensive revenue

10,154

1,266

2,444

10,154

2,395

(4)

109,372

99,523

99,222

109,375

99,247

Notes

Net Transfer to restricted reserves Capital Contributions Balance at 31 December

The accompanying notes form part of these financial statements.

Annual Report 2016 |

FINANCIAL STATEMENTS

Statement of Financial Position For the year ended 31 December 2016

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 Investment in Subsidary 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

Notes

Southern Institute of Technology Actual Budget Actual 2016 2016 2015 $'000 $'000 $'000

1st May 2017

| Annual Report 2016

Actual 2015 $'000

6 7 8 9

6,054 2,227 1,072 23,109 32,462

12,393 2,400 1,200 5,500 21,493

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

6,054 2,230 1,072 23,109 32,465

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

9 26

4 393 84,865 1,908 87,170 119,632

4 356 84,386 991 85,737 107,230

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

4 393 84,865 1,908 87,170 119,635

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

12 13

8,498 1,612 10,110

5,600 1,900 7,500

7,535 1,621 9,156

8,498 1,612 10,110

7,535 1,621 9,156

150 150 10,260 109,372

207 207 7,707 99,523

201 201 9,357 99,222

150 150 10,260 109,375

201 201 9,357 99,247

14 14

86,009 23,363 109,372

83,716 15,807 99,523

83,415 15,807 99,222

86,012 23,363 109,375

83,440 15,807 99,247

10 10 11

The accompanying notes form part of these financial statements.

Sarah Brown Chairperson of Council

Group Actual 2016 $'000

Penny Simmonds Chief Executive

FINANCIAL STATEMENTS

Statement of Cash Flows For the year ended 31 December 2016

Southern Institute of Technology Note

Group

Actual

Budget

Actual

2016

2015

2016

2015

$'000

33,505

35,057

34,106

33,505

34,106

Cash flows from operating activities Receipts from government grants Interest Received

890

800

881

890

883

16,877

12,278

17,261

16,877

17,261

Payments to suppliers

(20,711)

(19,836)

(20,528)

(20,737)

(20,578)

Payments to employees

(21,705)

(21,417)

(21,224)

(21,705)

(21,224)

(28)

359

(20)

359

8,828

6,882

10,855

8,810

10,807

(7)

(4,341)

(11,079)

(4,341)

(11,019)

(15)

(25)

(15)

(25)

Purchase of Fixed Assets

(4,906)

(8,533)

(4,283)

(4,906)

(4,283)

Cash flows from investing activities

(9,359)

(8,533)

(15,359)

(9,359)

(15,299)

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

Cash flows from financing activities -

Equity Contributions

Proceeds from borrowings

(2)

(3)

(2)

(3)

Net cash from financing activities

(2)

(3)

(2)

(3)

(533)

(1,651)

(4,507)

(551)

(4,495)

6,587

12,082

11,094

6,605

11,100

6,054

10,431

6,587

6,054

6,605

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 2016 |

FINANCIAL STATEMENTS

Reconciliation of the Net Surplus on Operations with the Net Cash Flows from Operation Activities For the year ended 31 December 2016

Southern Institute of Technology Actual

Surplus / (deficit)

Budget

Group Actual

Actual

2016

2015

2016

2015

$'000

2,607

1,266

2,444

2,585

2,395

(56)

(36)

(56)

(36)

5,521

5,617

5,324

5,521

5,324

(51)

(10)

881

(176)

881

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

(180)

(Inc) / Dec Prepayments

(488)

(Inc) / Dec Inventories Inc / (Dec) Accounts payable Inc / (Dec) Revenue in Advance Inc / (Dec) Accrued Expenses

489 41

895

128

(488)

129

(236)

489

(236)

648

2,164

895

2,164

(454)

8,828

6,883

10,855

8,810

10,807

Net cash inflow / (outflow) from operating activities

The accompanying notes form part of these financial statements.

| Annual Report 2016

FINANCIAL STATEMENTS

Statement of Commitments For the year ended 31 December 2016

Southern Institute of Technology

Group

Actual

2016

2015

2016

2015

$'000

3,940

112

3,940

112

242

Capital commitments Land & Buildings Equipment Hospitality Redevelopment

676

4,858

112

4,858

112

375

290

375

290

1,393

502

1,393

502

128

192

128

192

1,896

984

1,896

984

Operating Lease commitments Non cancellable operating lease as lessee: Property Not later than one year Later than one year and not later than five years Later than five years Equipment Not later than one year

Later than one year and not later than five years

Later than five years

Not later than one year

437

947

437

947

Later than one year and not later than five years

186

623

186

623

1,570

623

1,570

Services

Later than five years Franchise Course Fees Not later than one year

Later than one year and not later than five years

Later than five years

TOTAL COMMITMENTS

7,377

2,666

7,337

2,666

Equipment leases can be renewed at the Instituteâ&#x20AC;&#x2122;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 2016 |

FINANCIAL STATEMENTS

Statement of Contingencies For the year ended 31 December 2016

Contingent Liabilities There are no contingent liabilities as at 31 December 2016 (Last Year $Nil). The accompanying notes form part of these financial statements.

| Annual Report 2016

FINANCIAL STATEMENTS

Notes to the Financial Statements For the year ended 31 December 2016

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 Group

Operational bulk grant Non-EFTS funding Childcare Centre grant Quality Reinvestment Programme Disability grant Maori & Pasifika Grant Other

Actual

Budget

Actual

2016

2015

2016

2015

$’000

29,576

28,498

29,149

29,576

29,149

2,051

1,995

1,941

2,051

1,941

844

800

797

844

797

100

32,610

31,511

32,026

32,610

32,026

2 Student tuition and course fees The amount shown is for courses undertaken outside the zero fee scheme. Direct course costs that are directly attributable to students for each course are also shown here. Southern Institute of Technology Actual

Student tuition and course fees

3 Revenue - Other

Budget

Group Actual

Actual

2016

2015

2016

2015

$’000

9,712

8,759

9,733

9,712

9,733

Southern Institute of Technology Actual

Budget

Group Actual

Actual

2016

2015

2016

2015

$’000

948

997

936

948

936

5,309

4,903

4,391

5,309

4,391

Childcare Fees

290

300

294

290

294

Sundry Revenue

781

866

936

759

886

Interest Revenue

890

800

881

890

882

8,236

7,866

7,456

8,214

7,407

Accommodation Consulting Revenue Course Material

Annual Report 2016 |

FINANCIAL STATEMENTS

4 Personnel Costs Southern Institute of Technology

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

20,643

20,102

20,480

20,643

20,480

Employer Contributions to defined contribution plans

459

450

414

459

414

Increase / (decrease) in employee entitlements

-297

Salaries and Wages

Other Total Personnel Costs

547

748

627

547

627

21,705

21,300

21,224

21,705

21,224

5 Other operating expenses Southern Institute of Technology

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

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

103

100

103

100

392

469

368

392

368

1,826

1,553

1,803

1,826

1,803

Consultancy

765

1,000

759

765

759

Repairs and Maintenance

443

373

330

443

330

Advertising and publicity

Inventories Consumed Bad Debts Donations and Koha Other Operating Expenses

17,191

16,295

16,759

17,191

16,752

Total - other operating expenses

20,774

19,853

20,194

20,774

20,194

| Annual Report 2016

FINANCIAL STATEMENTS

6 Cash and cash equivalents Southern Institute of Technology

BNZ Cheque Account

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

1,994

885

2,032

1,994

2,050

Westpac Cheque Account

Cash in Hand

BNZ Call Account

457

454

457

454

ANZ Call Account

531

515

392

531

392

ASB Call Account

Call accounts

Westpac Call Account Rabobank Call Account

3,033

3,500

1,671

3,033

1,671

Term Deposit accounts ASB

3,000

Bank of New Zealand

2,500

Southland Building Society

1,500

ANZ Bank

2,000

Westpac

Rabo Bank

6,054

12,393

6,587

6,054

6,605

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 2016 |

FINANCIAL STATEMENTS

7 Trade and other receivables Southern Institute of Technology

Trade Debtors Prepayments

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

912

1,100

692

915

699

1,315

1,300

893

1,315

893

2,227

2,400

1,585

2,227

1,592

Current

682

532

682

539

Past due 1-30 days

114

117

Past due 31-60 days

Past due 61-90 days

Past due >91 days

912

692

915

699

Total due

The carrying value of debtors and other receivables approximates their fair value. As of 31 December 2016 and 31 December 2015 all overdue receivables have been assessed for impairment and appropriately written off. There is no provision for impairment on the remaining debtors. The right to recieve funding includes the amounts included in the funding letter for SAC, ACE, under 25, childcare, Youth Guarantee, STAR & Equty. It also includes the amounts recievable from parents for childcare. 8 Inventories Southern Institute of Technology Actual

Budget

Group Actual

Actual

2016

2015

2016

2015

$’000

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

454

300

440

454

440

Publications held for sale

187

150

160

187

160

Information Technology Inventory Full Size Works Total

432

750

961

432

961

1,072

1,200

1,561

1,072

1,561

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 2016

FINANCIAL STATEMENTS

9 Other Financial Assets Southern Institute of Technology

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

ANZ Banking Group (New Zealand) Limited

5,563

2,000

1,055

5,563

1,055

ASB

3,500

Bank of New Zealand

2,520

1,500

4,020

2,520

4,020

Kiwibank

5,000

2,000

3,500

5,000

3,500

Rabobank

2,000

Southland Building Society

1,526

1,534

1,526

1,534

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

Westpac

3,000

23,109

5,500

18,609

23,109

18,609

Foodstuffs (South Island) Limited

Polytechnics International New Zealand Limited

Varsity Travel Unit Trust

Total

4,053

2,548

4,053

2,548

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

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:

1.21%

1.79%

1.21%

1.79%

Short-term deposits with maturities of 1 - 12 months

23,109

20,609

23,109

20,609

Average Maturity Days: Weighted Average effective interest rate:

153

148

153

148

3.38%

3.66%

3.38%

3.66%

Annual Report 2016 |

| Annual Report 2016 (17,628)

78,718

658

110

603

2,975

2,293

110

71,969

$000’s

3,474

321

154

746

1,780

433

$000’s

transfers

additions/

Current year

3,935

(150)

(367)

186

1,125

705

2,359

$000’s

transfers

additions/

Current year

$000’s

(4,849)

(37)

(135)

(902)

(1,290)

(47)

(2,438)

(12)

(8)

(4)

$000’s

(4)

(4,867)

(39)

(142)

(833)

(1,298)

(47)

(2,508)

7,556

100,570

979

679

1,153

11,260

8,014

396

78,089

$000’s

(15,705)

(576)

(542)

(8,376)

(5,239)

(333)

(639)

$000’s

31/12/2016 $000’s

depreciation 31/12/2016 and impairment

revaluation

Accumulated

(17,628)

(550)

(396)

(7,675)

(3,963)

(286)

(4,758)

depreciation) $000’s

surplus

Cost/

96,346

658

660

999

10,650

6,256

396

76,727

$000’s

charges

impairment depreciation

Current Current year Revaluation year

(4)

$000’s

accumulated

(net of

disposals

Current year

(18)

(10)

(8)

$000’s

charges $000’s

depreciation

31/12/2015 and impairment

revaluation

Accumulated

31/12/2015 $000’s

surplus

Cost/

accumulated

charges

impairment depreciation

Current Current year Revaluation year

depreciation)

(net of

disposals

Current year

There are no restrictions over the title of the Institute’s property, plant and equipment nor are there any property, plant and equipment pledged as security for liabilities.

96,346

Total Southern Institute of Technology

Assets held for Sale

658

Works in Progress

(550)

660

(396)

999

(7,675)

Vehicles

10,650

(3,963)

(286)

(4,758)

$000’s

Library Books

Furniture and Equipment

396

6,256

Computers

76,727

$000’s

Leasehold

Land and Buildings

Southern Institute of Technology

charges

1/01/2016

amount

depreciation

valuation

1/01/2016

Carrying

Accumulated

Cost/

79,654

150

1,025

556

2,760

2,878

157

72,048

$000’s

(13,473)

(564)

(261)

(7,331)

(2,758)

(239)

(2,320)

$000’s

1/01/2015

amount

Carrying

93,127

150

Total Southern Institute of Technology

1,025

Assets held for Sale

644

Vehicles

Works in Progress

817

Library Books

10,091

5,636

Computers

Furniture and Equipment

396

74,368

Leasehold

Land and Buildings

Southern Institute of Technology

charges

1/01/2015

$000’s

depreciation

valuation

1/01/2015

Accumulated

Cost/

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

84,865

979

103

611

2,884

2,775

77,450

$000’s

31/12/2016

amount

Carrying

78,718

658

110

603

2,975

2,293

110

71,969

$000’s

31/12/2015

amount

Carrying

FINANCIAL STATEMENTS

150

Land and Buildings

Group

Annual Report 2016 | (3,963)

658

Works in Progress

(550)

(396)

658

110

603

2,975

2,293

110

71,969

$000’s

321

154

746

1,780

433

$000’s

transfers

additions/

Current year

3,935

(150)

(367)

186

1,125

705

2,359

$000’s

transfers

additions/

Current year

$000’s

and impairment

depreciation

Accumulated

$000’s

(8)

(4)

$000’s

(4)

(39)

(142)

(833)

(1,298)

(47)

(2,508)

7,556

100,570

979

679

1,153

11,260

8,014

396

78,089

$000’s

31/12/2015

revaluation

Cost/

96,346

658

660

999

10,650

6,256

396

76,727

and impairment

depreciation

Accumulated

(17,628)

(550)

(396)

(7,675)

(3,963)

(286)

(4,758)

(15,705)

(576)

(542)

(8,376)

(5,239)

(333)

(639)

$000’s

charges $000’s

surplus

Revaluation

31/12/2015 $000’s

depreciation

Current year

(4,849)

(37)

(135)

(902)

(1,290)

(47)

(2,438)

accumulated

charges

impairment

Current year

(4)

$000’s

depreciation)

(net of

disposals

Current year

(18)

(10)

(8)

$000’s

31/12/2014

revaluation

Cost/

31/12/2014 $000’s

surplus

Revaluation

depreciation) $000’s

depreciation

Current year

charges

impairment

Current year

accumulated

(net of

disposals

Current year

Total Southern Institute of Technology 96,346 (17,628) 78,718 3,474 (12) (4) (4,867) 7,556 There are no restrictions over the title of the Group’s property, plant and equipment nor are there any property, plant and equipment pledged as security for liabilities.

660

Vehicles

Assets held for Sale

999

(7,675)

6,256

10,650

(286)

(4,758)

$000’s

1/01/2016

charges 1/01/2016

396

Library Books

Furniture and Equipment

Computers

Leasehold

76,727

$000’s

1/01/2016

depreciation

amount

Carrying

Accumulated

Cost/

valuation

150

1,025

556

2,760

2,878

157

72,048

$000’s

79,654

(564)

(261)

(7,331)

(2,758)

(239)

(2,320)

$000’s

1/01/2015

(13,473)

93,127

Assets held for Sale

Total Southern Institute of Technology

1,025

644

Vehicles

Works in Progress

817

Library Books

10,091

5,636

Computers

Furniture and Equipment

396

74,368

$000’s

amount

Carrying

charges 1/01/2015

depreciation

valuation

1/01/2015

Accumulated

Cost/

Leasehold

Land and Buildings

Group

10 Property, Plant and Equipment (continued) Movements for each class of property, plant, and equipment for the Group are as follows:

84,865

979

103

611

2,884

2,775

77,450

$000’s

31/12/2015

amount

Carrying

78,718

658

110

603

2,975

2,293

110

71,969

$000’s

31/12/2014

amount

Carrying

FINANCIAL STATEMENTS

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

Group

of Technology

Buildings Computers Furniture and Equipments Intangible Vehicles

$’000

694

157

978

Work in progress has been updated to be disclosed on a class-of-assets basis as required by PBE IPSAS 17.89.

11 Intangible Assets Southern Institute of Technology

Group

Cost

$’000

Balance at 1 January 2015

2,715

Additions

376

Transfers

Disposals

Balance at 31 December 2015

3,091

Balance at 1 January 2016

3,091

Additions

1,461

Transfers

Disposals

Balance at 31 December 2016

4,552

Accumulated Amortisation

$'000

Balance at 1 January 2015

1,519

474

Amortisation Expense Transfers Disposals

Balance at 31 December 2015

1,993

Balance at 1 January 2016

1,993

651

Amortisation Expense Transfers Disposals

Balance at 31 December 2016

2,644

Carrying Amounts

$'000

At 1 January 2015

1,196

At 31/12/2015 and 1/1/2016

1,098

At 31 December 2016

1,908

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 2016

FINANCIAL STATEMENTS

12 Trade and other payables Southern Institute of Technology

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

400

2,200

486

400

486

- Student fees in advance

2,575

3,160

1,455

2,575

1,455

- Overseas Students-Negative Debtors

3,435

3,848

3,435

3,848

Trade Payables Halls of Residence Bonds Revenue in advance

- Other fees in advance Accrued expenses Contract Retentions GST payable

483

200

292

483

292

1,339

1,079

1,339

1,079

112

218

228

218

228

8,498

5,600

7,535

8,498

7,535

Trade Payables and some accrued expenses are non interest bearing and normally settled on 20 day terms and the above amounts approximate their fair value. The Overseas Students-Negative Debtors include GSt whereas othere payables does not include GST. Actual

Actual

2016

2015

2016

2015

$’000

Total Payables under exchange

6,009

5,102

6,009

5,102

Total Payables under non exchange

2,489

2,433

2,489

2,433

8,498

7,535

8,498

7,535

13 Employee Entitlements

Southern Institute of Technology Actual

Payroll Accrued Annual Leave Sick Leave Long Service Leave

Budget

Group Actual

Actual

2016

2015

2016

2015

$’000

240

600

356

240

356

1,340

1,300

1,210

1,340

1,210

150

207

201

150

201

1,762

2,107

1,822

1,762

1,822

1,612

1,900

1,621

1,612

1,621

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

150

207

201

150

201

1,762

2,107

1,822

1,762

1,822

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 2016 |

FINANCIAL STATEMENTS

14 Equity Southern Institute of Technology

Retained Earnings As at 1 January Net surplus Capital Contribution

Group

Actual

Budget

Actual

2016

2015

2016

2015

$’000

83,415

82,450

80,971

83,440

81,045

2,598

1,266

2,444

2,576

2,395

(4)

86,009

83,716

83,415

86,012

83,440

15,807

7,556

23,363

15,807

23,363

15,807

109,372

99,523

99,222

109,375

99,247

Actual

Budget

Actual

2016

2015

2016

2015

$’000

Programme Funds

Transfers to trusts and bequests reserve Transfers from trusts and bequests reserve As at 31 December

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

Restricted reserves consist of: Whare Awhina Fund Clearwater Estate Trust

Warren Forbes Award

Patricia O’Connor Award

Fletcher Challenge Award

137

133

135

137

135

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

| Annual Report 2016

FINANCIAL STATEMENTS

15 Councillors’ Fees Actual

Budget

Actual

2016

2015

$’000

Addie, D

Brown, S

Donald, M

Grant, J

Heenan, P

Jackson, P

Kaio, AR Skerrett, M Ward, T Total Councillors’ Fees

8 4

130

100

102

16 Related partty 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

2016

2015

$’000

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

Accounts Payable to the Institute

Accounts Receivable from the Institute

Facilities hire - Marae Venture Sounthland - P Simmonds (Board Member) Services provided by the Institute

Goods 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

Goods provided to the Institute

Accounts Payable to the Institute

Accounts Receivable from the Institute

Annual Report 2016 |

Sponsorship

FINANCIAL STATEMENTS

Actual

2016

2015

$â&#x20AC;&#x2122;000

Goods provided to the Institute

Accounts Payable to the Institute

Accounts Receivable from the Institute

879

604

Southern Education Charitable Trust - P Simmonds (Trustee) Services provided by the Institute

Activity and Employment Services Southern Lakes English College Limited - P Simmonds (Director) Services provided by the Institute Goods provided to the Institute Accounts Payable to the Institute

Service provided by the Institute

Goods Provided by the Institure

Accounts payable to the Institute

Accounts Recievable from the Institute

Accounts Receivable from the Institute Provision of English Language Courses Alliance Group Limited - M Donald (Director)

IT Services Southern Education Consultants NZ Ltd - B Guha (Shareholder) Services provided by the Institute

Accounts Payable to the Institute

Accounts Receivable from the Institute

Goods provided to the Institute

Academic Facilitation No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

| Annual Report 2016

FINANCIAL STATEMENTS

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

Actual

2016

2015

$’000

Council Members Full-time equivalent members

128

102

1,183

1,177

1,311

1,279

Remuneration 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 and 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 (26 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: Remuneration paid close family members of key management personnel

194

144

17 Categories of financial assets and liabilities Southern Institute of Technology

Group

Actual

2016

2015

2016

2015

$’000

$'000

6,054

6,587

6,054

6,605

912

692

915

699

Investments - Term deposits

23,109

18,609

23,109

18,609

Total loans and receivables

30,075

25,888

30,078

25,913

Actual

2016

2015

2016

2015

$’000

$'000

Investments - Food Stuffs Limited

Total available for sale financial assets

1,973

2,391

1,973

2,391

1,973

2,391

1,973

2,391

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 2016 |

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 2015

$’000

Creditors and other payables

2,391

1,973

Borrowings Southern Institute of Technology and Group 2016 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 revenue of 5% as compared to budget. This was due to gaining additional TEC funding, an increase in international student numbers and and increase in material fees income as a result of increased EFTS delivered. The surplus achieved of $2.6 million compares favourably to the budget of $1.3 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 2016

24 Performance against Budget

FINANCIAL STATEMENTS

25 Childcare Centre Actual

Budget

Actual

2016

2015

$’000

Ministry Grants

844

800

797

Childcare Fees

290

300

294

1,134

1,100

1,091

936

918

892

Communication

Depreciation

989

984

939

145

116

152

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

2016

2015

Hours

Under two year olds

22,126

21,416

Over two year olds

67,943

69,407

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 2016 |

FINANCIAL STATEMENTS

26 Investment in associate Actual

Actual

2016

2015

$’000

417

356

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

Dividend

(86)

Balance at 31 December

393

417

Assets

1,393

1,319

Liabilities

1,100

1,048

Revenue

2,225

1,775

Surplus/(deficit)

Group’s interest

Share of total comprehensive Revenue

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.

| Annual Report 2016

FINANCIAL STATEMENTS

Statement of Resources For the year ended 31 December 2016

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

Non-Teaching and Allied

Managerial

Total

2016

2015

2016

2015

2016

2015

2016

2015

New Media, Arts and Business

37.97

42.37

12.70

7.92

1.00

0.69

51.67

50.98

Health, Humanities and Computing

41.37

42.83

7.91

5.09

1.00

50.28

48.92

Trades and Technology

35.29

37.14

19.56

17.76

1.00

1.01

55.85

55.91

Gore Campus

3.49

4.22

2.66

1.99

6.15

6.21

Queenstown Campus

8.91

7.32

1.94

1.79

10.85

9.11

Christchurch Campus

18.95

20.23

12.94

13.70

31.89

33.93

SIT2LRN

2.65

2.20

23.17

23.26

1.00

26.82

26.46

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

0.02

0.10

101.61

93.21

4.96

4.00

106.59

97.31

14.28

14.00

14.28

14.00

196.77

178.72

354.38

342.83

Caretakers, Childcare, Grounds, Cafeteria, Health and Counselling 148.65

156.41

8.96

7.70

Library The Instituteâ&#x20AC;&#x2122;s Library has a collection of 23,190 books and 150 regular perlodical subscriptions. Issues for 2015 totalled 31,270. The depreciated replacement coast of library stock is $611,000. The library has a permanent staff of 4.80 FTE during 2016.

Annual Report 2016 |

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 2016 |

STATEMENT OF ACCOUNTING POLICIES

| Annual Report 2016

STATEMENT OF ACCOUNTING POLICIES

Annual Report 2016 |

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