Annual report 2014 by Southern Institute of Technology

2014 Annual Report Southern Institute of Technology

INDEX 03

Mission and Goals

2014 Highlights

Chairperson’s Report

Chief Executive’s Report

Statement of Responsibility

Governance and Management

Student Achievement

Support Services

International Students

Industry, Business, Community

Staff Focus

Statement of Service Performance

Independent Auditor’s Report

Statement of Accounting Policies

Financial Statements

Glossary of Acronyms

Private Bag 90114 133 Tay Street Invercargill Phone

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(03) 214 4977

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(0800 4 0 3337)

Website

www.sit.ac.nz

ANNUAL REPORT 2014

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Goals and Continuing Objectives

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

Foster our social and professional obligations to both clients and staff

Operate a viable educationally directed business entity

ªª Enhance academic achievement and satisfaction of stakeholders ªª Offer a range of programmes/ paths which provide occupational and life skills ªª Improve the representation and achievement of underrepresented and disadvantaged groups

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

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

ªª Provide a physically desirable learning and working environment

ªª Provide a range of student and staff support services

Mission Statement

Statement of Purpose

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

Southern Institute of Technology provides students with quality education and training services E whakarato ana Te Whare Wananga o Murihiku ki nga tauira inga matauranga me nga akoranga tino teitei

E whakarato ana Te Whare Wananga o Murihiku i Ka rataka huaraki kia whakarawe ite takate ki te mohiotaka me ka pukeka kia mahi tika ai a ia kei roto nei i tona ahumahi This 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.

The Institute fulfils this purpose when it provides learning opportunities for students that are industry focused, challenging and personally enriching, and which equip them to apply high level skills in a variety of business, industry and professional settings.

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2014 Highlights

12,446

ªª Invercargill ªª Christchurch ªª Queenstown ªª Gore

students

ªª Auckland

160+ Campuses

Programmes

98.5

OF SIT GRADUATES Reported they were IN EMPLOYMENT OR STUDYING

Provisional Results - January SDR

course completion

73% qualification completion

OVERALL STUDENT

Graduate Destination Survey 2013

79%

EFTS

SATISFACTION

Student Satisfaction Survey 2014

$8,898,000

65% retention

Other income

$677,000

37% progression to higher level study from levels 1-4

$96,778,000 total net assets

domestic student fees

$6,282,000

international student fees

$32,891,000 government funding

$48,032,000 total expenses

$48,798,000 total income

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$766,000 surplus

STUDENT GENDER*

46% Male

STUDENT AGE*

54% Female

37%

63%

Under 25 years

25+ years

STUDENT ETHNICITY*

15% 3% 5% Maori Pacific Asian Islander

82% European

4% Others

ANNUAL REPORT 2014 *Government Funded EFTS

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Chairperson’s Report

am pleased to present the Annual Report of the Southern Institute of Technology for 2014.

Our international student numbers continue to increase. We are very proud of the way these students have contributed to the vibrancy of what has truly become a multi-cultural community.

As the figures in this Annual Report show the Southern Institute of Technology is one of the larger Institutes of Technology in the country. We now have five campuses nationally following the successful opening of our Queen Street Campus in Auckland.

Riki Cherrington passed away in December 2014. Koroua Riki was our kaumatua, and a strong supporter of our Maori students. His contribution was significant, and he will be sorely missed.

We must strive to provide ‘quality vocational education which equips people with the knowledge and skills to be effective industry participants’. This is taken directly from our mission statement. In order to achieve our mission, we must continue to provide a wide range of vocationally based training which equips our students with the skills they require to obtain good jobs. This will see our graduates contributing to, and growing, our community.

The organisation is in a sound financial position. This will ensure that the hugely successful Zero Fees initiative will continue into the foreseeable future. Finally, on behalf of the Council, I wish to record our gratitude to Penny Simmonds and her hardworking team. SIT’s continued success reflects Penny’s outstanding skills and dedication to the organisation. She continues to be supported by a strong senior management group, and a committed staff.

A large number of our graduates are being employed in the Southland region. The challenges these graduates will face in their working lives are totally different from those graduating and beginning work in an urban centre. Southland has a strong production based export economy and the Southern Institute of Technology has a responsibility to continue to produce graduates who are skilled in the areas required by the unique needs of our community. We value our relationships with our community and with industry. While our financial and academic results are vitally important to our continued success, we do not lose sight of the importance of these relationships, which we continue to build.

Sarah Brown Chairperson of Council

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Chief Executive’s Report Introductory Statement

Highlights in Summary

We collect a range of feedback data obtained through a multitude of surveys of our students and stakeholders in order to continuously improve our delivery of education and training.

ªª Exceeded 100% of SAC domestic EFTS allocation. ªª 20% growth in International students to 664 EFTS (1,058 students). ªª Approval and delivery of the first papers of a Postgraduate Diploma in Information Technology.

The most important things to know for us are: did the student get employment or move to a higher level study as a consequence of studying with us, and also did they consider the experience sufficiently worthwhile to study with us again?

ªª Accreditation and approval of a Bachelor of Applied Management. ªª Hosting for a second consecutive year the 2 day sectorwide Ako Aotearoa National Teaching and Learning Conference in October.

Of the data obtained in 2014 from our graduate destination survey we know that 98.5% of graduates reported they were in employment or further study six months after graduating and 93% of our graduates were satisfied overall with their programme of study at SIT.

ªª 100% pass rate in the external state nursing finals examination by Bachelor of Nursing graduates. ªª Completion of stage 1 of the Spey Street student apartments and Queenstown apartments and completion of stage 2 of the Spey Street student apartments at the end of 2014.

While we still have significant misgivings about the completeness of Educational Performance Indicators (EPI) we note SIT’s steady increase in particularly, course completions up from 77% in 2013 to 79% in 2014 indicative results, qualification completions up from 71% in 2013 to 73% in 2014 and retentions up from 58% in 2013 to 65% in 2014. This is particularly relevant to note at a time when sector averages appear to have plateaued or declined.

ªª Benchmarking of graduate destination results through a collaborative survey with Otago and Aoraki Polytechnics and Eastern Institute of Technology. ªª Benchmarking of our student satisfaction survey with Otago Polytechnic and a shift to online surveying. ªª Review of SIT Academic Board structure and implementation of changes. ªª Recognition of long serving SIT Council member and Ngāi Tahu Kaumātua Michael Skerrett with the Queen’s Service Medal for services to Māori and the community in the New Year’s Honours List.

SIT continues to maintain that the EPIs are not sufficiently robust to be used for anything other than trends and particularly that they should not be considered as a determining factor in the EER process as has occurred historically.

ªª Recognition of SIT Kaumātua, the late Koro Riki Cherrington with the awarding of an Officer of the NZ Order of Merit in the Queen’s Birthday Honours List.

In turn we continue to oppose the use of the EER categories as a basis for determining entry into unrelated projects such as the Immigrant NZ pilot.

ªª Three graduates were finalists in the NZ Tropfest Short Films Festival with one of the three, Dan Pettit winning the best animated film award.

Other statistics of note for SIT include 15% of our 2014 students identifying as Māori, ahead of 12% of the Southland population identifying as Māori and 3% of the student body identifying as Pacific Islander against 2% of the Southland population identifying as Pacific Islander.

ªª Brandon Dunn runner up for the International Gaming Division and winner of Oceania Division of Computer Graphics International Student of the Year Awards with his showreel and digital paintings. ªª Development of a teaching and learning guide for Māori and Pacific students.

International student growth of 20% in 2014 continues SIT’s 6 year trend of double figure growth in International student numbers, an achievement which pays major dividends for SIT’s domestic students as well as the broader community.

ªª The launch of SIT’s own distinctive graduation regalia with a subtle reflection of our Māori and Scottish heritages. ªª First institute-wide certificate level graduation ceremonies mid year and end of year. ªª First Christchurch graduation ceremony. ªª Southland start-up weekend held at SIT in August with 80% of the 60 participants being SIT students.

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ªª Relocation of the Southland Chamber of Commerce and the Otago Southland Employers’ Association onto SIT Campus. ªª SIT co-sponsored with Otago University the inaugural Justice French presentation. ªª SIT awarded the Export Southland Corporate Recognition Award presented by the Minister for Economic Development Steven Joyce. The Award recognised SIT and tertiary education as a business which contributes to the Southland economy as an export earner. ªª SIT was the most successful tertiary institute in attracting 3 Indian sports scholarship recipients under the NZ Government Sports Scholarship Scheme launched in 2014.

Financial and Facilities The surplus in 2014 was just ahead of budget but fell short of a 3% return. Over delivery of domestic students contributed to this reduction on the 2013 surplus. Considerable capital works continued in 2014 keeping SIT’s student accommodation, teaching and workshop spaces and equipment at a high standard for staff, students and the associated communities to use. SIT consistently achieves well in terms of academic and employment outcomes, student satisfaction as well as financial results and in 2014 continued this trend. The close alignment of SIT operations through the collaborative work of staff and students with local industries and community is the key to SIT’s success across a broad range of parameters. In 2014 SIT again remained firmly focussed on delivering quality education and training to our students to ensure our graduates had every opportunity to gain employment in local industries and meet the needs of these industries we serve. I congratulate all staff on the results achieved in 2014 and make special mention of the leadership shown by SIT’s Management Team. On behalf of staff I acknowledge the contribution of our Council and in particular Chairperson Sarah Brown and Deputy Chair Peter Heenan for their sound governance of SIT.

Penny Simmonds Chief Executive

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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 2014.

Penny Simmonds

Sarah Brown

CHIEF EXECUTIVE

CHAIRPERSON OF COUNCIL

20th April 2015 ANNUAL ANNUAL REPORT REPORT 2014 2014

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Governance and Management

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

IT 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.

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.

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Council Members

Sarah Brown (Chair)

Community Appointment Appointed as Chair by Tertiary Education Minister Steven Joyce in August 2011, Sarah has served as a community representative on the Council since 2006. Currently an Associate with Tavendale & Partners, Sarah has also worked in human resources at New Zealand Aluminium Smelters.Sarah is a member of the Institute of Directors, director of Electricity Invercargill Ltd, and Southern Lakes English College, and board member of Kindergarten South and Pylon Ltd.

Peter Jackson

Community Appointment Peter is a Director of H2O Design Ltd and is an accredited member of the Institute of Directors. Peter is also Deputy Chair of the Plumbers, Gasfitters and Drainlayers Board, Deputy Chair of Site Safe New Zealand, Director of New Zealand Plumbers’ Merchants/Plumbing World/ Patton Refrigeration taking responsibility for governance and compliance and Deputy Chair of the Audit Committee. Peter is trustee of the Apprentice Training Trust and New Zealand’s representative on the World Plumbing Council.

Peter Heenan (Deputy Chair)

Penny Simmonds

Tim Ward

SIT Chief Executive Penny Simmonds is a member of the ITPNZ Board and serves on many voluntary boards in the community. Penny is a trustee of the Southland Outdoor Stadium Trust and Film Otago Southland, board member of the Community Trust of Southland, Venture Southland and Hockey Southland. At a national level Penny is President of New Zealand Hockey.

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

Michael Skerrett

Jeff Grant

Ministerial Appointment

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

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

Community Appointment

Ministerial Appointment

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

Dean Addie

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.

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Ministerial Appointment

Management Team

Penny Simmonds

Bharat Guha

Maree Howden

Chief Executive

Deputy Chief Executive - Corporate Chief Financial Officer

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

Amanda Knowles

Teri McClelland

Mike Grumball

Head of Faculty New Media, Arts and Business

Patsy Eade

Human Resources/ Infrastructure Manager

Head of Faculty SIT2LRN

Jackie Flutey

Head of Faculty (Acting) SIT2LRN from 6 January 2014

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Head of Faculty Trades and Technology

Lucille Hatley

Head of Faculty (Acting) New Media, Arts and Business from 3 June 2014

Student Achievement Graduate Outcomes: 98.5% employed or studying Graduate Outcome Benchmarking Report

The Graduate Outcome Survey was distributed in July 2014, approximately 8 months after students completed their 2013 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.

For the first time in 2014 SIT participated in a graduate outcome benchmarking exercise with four other ITPs. The report was prepared from data collected from questionnaires administered by the Organisational Researcher on behalf of the participating institutions. The report also compared the selected responses received from the participating institutions against those reported in the 2013 Australian Graduate Survey (AGS) of domestic Australian university graduates. The overall response rate was 43% with SIT’s response at 48%.

Results show that 98.5 per cent of graduates were working or undertaking further study, with the majority enrolled at SIT for further study. Eighty five per cent of graduates were employed immediately after study with a median gross annual salary of $37,440.

Nearly all the graduates were satisfied with the quality of their programme with 94 per cent expressing overall satisfaction, and a large majority (93%) confirmed that they would recommend their programme to others and considered the programme represented good value for money.

SIT performed very well in the comparative exercise and rated highly in the following categories: ªª ªª

The response rate was 48 per cent, ensuring a valid sample. The results are not able to be compared with the outcomes of SIT’s 2013 Graduate Destination Survey because the survey questionnaire and process were amended to provide for the inclusion of SIT in a survey benchmarking exercise led by Otago Polytechnic with other institutes of technology.

ªª ªª ªª

Graduates’ overall satisfaction with the programme – 94% (average 93%) Would recommend the programme to others - 93% (average 92%) Programme represented value for money- 93% (average 89%) Graduates in employment- 85% (average 80%) Graduates studying or enrolled to study- 49% (average 47%)

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Student Achievement Graduates Employed at SBS Bank SIT Bachelor of Information Technology graduates Kent McNamara and Andrew Hanley developed an interest in computers later in life. The pair were drawn to the industry, having spent years travelling separate career paths, and both now work at SBS Bank, the recipient of Financial Institution of the Year in 2011 and 2012. A born and bred Southlander, Kent initially undertook a career in roofing after his secondary education at Southland Boys’ High School. His need to explore had him travelling throughout New Zealand for 10 years working in the trades sector before he returned to Invercargill and gained employment in an internet-based company. It was here Kent’s passion for IT was first ignited.

The southern charm of his Invercargillborn wife, the Zero Fees Scheme and affordable house prices, had Andrew hooked and he signed up to study at SIT. The change of career into the IT industry paid dividends when both Kent and Andrew were offered positions as Programme Analysts at SBS Bank halfway through the third year of their IT degree in 2013. As analyst programmers, Kent and Andrew have the responsibility of developing and enhancing the IT system for SBS Bank, creating IT solutions to meet the business needs of the company and its stakeholders. SBS Bank Development Manager Craig Escott said both Kent and Andrew had fitted perfectly into the bank’s Business Solutions team.

Deciding that unless he obtained a recognised qualification in IT his career options were limited, Kent enrolled to study the Bachelor of Information Technology programme at SIT. Programme Manager, Ken Sutton had an industry-wide reputation and Kent had heard great things about both him and the programme. In contrast, Andrew was born and raised in Auckland where after leaving school he worked for seven years in the New Zealand Customs Service at Auckland Airport. An assessment of his career options left Andrew feeling the need for a change of direction. He decided the rapidly expanding and exciting IT sector was the most inviting career option and sought out IT degree opportunities.

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“The SIT graduates we employ at SBS Bank always display a number of core skills we require as a business. They’re well rounded in technical skills, well presented and have great communication skills which are vital in any business.” Learning how to study and retain information Kent explained is one of the greatest skills he took out of his SIT IT degree. This skill had enabled him to pick up new initiatives and adapt quickly in the fast-paced financial industry. Andrew said that his career ambitions were to continue with SBS Bank, keep developing his knowledge of IT and adapting to changes in the industry.

Student Achievement World Skills Win for SIT Graduate

Nursing Graduate’s Success

SIT Certificate in Mechanical Engineering graduate Nick Bastiaansen’s passion for engineering evolved from “backyard engineering with Dad”.

Southern Institute of Technology Bachelor of Nursing graduate Amelia Luxton came straight to SIT after completing Year 13 at Gore High School. Amelia’s passion for nursing grew from her high school career experience days as she loved being in the hospital setting and making an impact on people’s lives. Amelia chose SIT as it was close to home and the Zero Fees Scheme.

“I have always enjoyed building stuff and this was just a natural progression into doing it as a full time job.” Nick chose SIT because it was local and the fabrication and machine shops were modern. Nick undertook three days a week onsite at SIT and then two days at Alliance Group, before he was offered an apprenticeship at dairy giant Fonterra.

“Our tutors were great, very supportive. I found it very hands on, with lots of clinical hours compared to other nursing schools. In my final year we had classes about how to construct a CV and cover letter, as well as practice interviews which is something that I still find extremely helpful today.”

“SIT gave me the basics that I needed to be able to step into a workshop and begin working already knowing how to use a lot of the engineering equipment,” Nick said. In 2014 Nick won the National World Skills title for Engineering and has been chosen to represent New Zealand as part of the Tool Blacks Team that will compete in Brazil in August 2015. Nick said a highlight of his career so far is when Fonterra CEO Theo Spierings congratulated him on his World Skills win in the Fonterra staff newsletter.

Amelia said the highlights of her study were her clinical placements in Gore, Queenstown and rural areas around Southland.

Nick’s supervisor Stacy Lines, Southern Operations Maintenance Manager said Nick’s SIT training showed through.“There is clear evidence of the benefits that Nick gained from SIT.

After graduating the Bachelor of Nursing at SIT Amelia was offered graduate positions at Gore Hospital, Dunedin Public Hospital, Nelson Hospital and Tweed Hospital in Australia. Amelia decided to take up the overseas opportunity in Australia working for NSW Health at Tweed Hospital in a 12 month programme that consisted of 6 months in a Coronary Care and General Medical Unit and 6 months in a Renal, Oncology and General Medical Unit. On completing the new graduate position Amelia was successful in gaining a second year post graduate programme specializing in palliative care at the Tweed Hospital.

The fundamental skill competencies learnt have allowed Nick to settle in his apprenticeship and deliver value to both himself and Fonterra. Demonstration of this is his achievements to date both at work and applying those trade skills in a competitive sense through World Skills,” Stacy says. Nick’s plans for the future are to complete SIT’s New Zealand Diploma in Engineering and become a fully qualified engineer. He also hopes to take out the Engineering World Skills title in Brazil 2015.

In 2014 Amelia accepted employment as a Registered Nurse in the General Medical Unit which is a new $1.76 billion, 750 bed Gold Coast University Hospital, one of Queensland’s largest clinical teaching and research facilities. Amelia’s ambitions for the next 5 years are to move back to New Zealand and study the Postgraduate Diploma in Health Science at SIT and become a Nurse Manager. ANNUAL REPORT 2014

Nick Bastiaansen and Southern Operations Maintenance Manager Stacy Lines on Fonterra site.

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Nursing Graduate - Amelia Luxton

Student Achievement Academic Achievement Continued Increases in Educational Performance Indicators

completions, and in level 1-3 course completions. The disparity between Maori and non-Maori results has shown a marked improvement from 2013 with the gap continuing to diminish. SIT is pleased that its strategies to enhance Maori students’ learning have reaped good results. SIT has developed a draft Maori Strategy for consultation with local iwi and expects that further implementation of the confirmed strategies will continue to enhance the educational performance of our Maori students.

Over the past five years SIT has continued to achieve yearon-year percentage increases in course and qualification completion results based on the Educational Performance Indicators produced by TEC. Our 2014 indicative results show that SIT has exceeded targets in almost every area, achieving 79% in overall course completions (7th in the sector, and at the sector median) and 73% in overall qualification completions (5th in the sector and 8% above the sector median).

While the majority of Pasifika results have improved, the differential between Pasifika and non-Pasifika students’ results remains. To endeavour to close the gap SIT has commenced initial consultation with Pasifika leaders, and is developing a draft Pasifika Strategy to be used for further 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 continue to diminish.

SIT considers that its ongoing strategies to assist students to enhance their educational performance are continuing to achieve success. These strategies 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.

Maori, Pasifika and Under 25 Students’ Improvements

Improved retention Overall retention figures have improved due to strategies employed by SIT (referred to above). 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 increase by 14%.

The 2014 Educational Performance Indicators for Maori, Pasifika and Under 25 students confirm that targets have been met and solid improvements made in the majority of performance categories. Maori students have improved in almost every category with Level 1-3 course completions exceeding the target by 10% and qualification completions by 13%. In Level 4 and above programmes Maori students surpassed the target in both course and qualification completions. The target of 8% of Maori participation at level 1-3 was not met, however the 5% participation level was similar to that achieved in 2013 (and it is noted these results are still provisional). The level 4 and above participation results met the target.

Progression SIT continues to show good progression rates of 35% for level 1-3 programmes. SIT’s programme development over many years has been strategically focussed on creating clusters of programmes enabling staircasing opportunities both within SIT and onto other partnership organisations.

SIT’s Under 25 learners showed significant improvements in almost every category, with targets well surpassed at all levels; for example the level 1-3 course completions exceeded the target by 13% and the level 4 and above by 8%. Similar successes were achieved in the qualification completions category. Participation targets were not achieved (but it is noted that results are still provisional). Pasifika students exceeded the targets set in qualification

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Student Achievement Educational participation and achievement outcomes (% of total EFTS)

SAC-funded students only â&#x20AC;&#x201C; Provisional results

Participation â&#x20AC;&#x201C; Proportion Enrolled 2013

2014 Target

Successful Qualification Completion Rates 2014

2013

2014 Target

2014

Overall %

Maori % All levels

All levels

Level 1-3

Level 4 and above

All levels

Level 1-3

Level 4 and above

All levels

Level 1-3

Level 4 and above

All levels

Level 1-3

Level 4 and above

Maori %

Under 25 % All levels

Level 1-3

Level 4 and above

All levels

Level 1-3

Level 4 and above

Under 25 %

Pasifika %

Successful Course Completion Rates 2013

2014 Target

2014

All levels

Level 1-3

Level 4 and above

Overall %

Retention, Progression and Literacy & Numeracy Rates

Maori % All levels

Level 1-3

Level 4 and above

All levels

Level 1-3

Level 4 and above

Level 1-3

All levels

Level 4 and above

2014

Literacy and Numeracy % Level 1-3

Pasifika % Level 1-3

2014 Target

Progression %

Under 25 % All levels

2013 Retention %

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Student Achievement Top Digital Media Award for SIT Student

Mobile KTV’s Innovative Concept Wins Business Contest

Bachelor of Digital Media graduate Brandon Dunn came to SIT after his secondary schooling at Aparima College in Riverton. Brandon chose SIT because being able to draw for a living was always his dream and he believed that the Bachelor of Digital Media programme at SIT would provide him with the skills that would help him excel in that industry. During his studies at SIT Brandon edged off international digital media specialists at the Autodesk CG Student Awards to claim the 2014 Oceania Next-Gen Gaming Boot Camp Award. Dunn submitted a show reel portfolio to enter the competition and came away with a six month paid internship at Gameloft in Auckland. Brandon said that being able to get such an opportunity to “put my foot in the door was a huge step towards making my dreams a reality”.

Business, industry and education merged when SIT students went head to head in the Postgraduate Diploma in Business Enterprise 2014 Start Up Week. Nine teams took part, and each team had to put together a business portfolio incorporating defining the business value proposition, identifying who would be their target customer segment, testing the business concept and validating it with real people, building prototypes or models of their business concept, and pitch and present their business to the guest judges. Guest judges for the event were SIT Chief Executive Penny Simmonds, Venture Southland Chief Executive Paul Casson, and Chamber of Commerce Chief Executive Sarah Hannan. The teams were mentored by local Southland business leaders throughout the competition to help them with putting together their business ideas. Mentors were XingDong Yan, Chief Executive of Judith Cambridge Chartered Accountants, Avinash Varghese Chief Executive of Pride Property Management, Peter Teong, Director of Gates Global Consultant Tyros Pte Ltd, Singapore. Team Mobile KTV took out the event with their business concept “Singing Plus”. The concept was centred on entertainment through Karaoke TV with a listing of multi-cultural music and songs, a wide range of food catering options including cuisines from different cultures and professional party equipment and decorations.

Brandon said he loved his experience at SIT. He considered that the animation tutor had made a huge impact on his ability as an animator and the skills he gained during the programme would hold him in good stead upon graduation. Brandon’s dream career after

graduating from SIT is to work as a concept artist and freelance Illustrator, designing and creating animation and characters for console, computer and smart phone games.

SIT Chief Executive Penny Simmonds said “The judging panel were really impressed with the standard of the presentations and the novel business ideas that came through. We felt that there were at least 4 – 5 business concepts that could almost immediately be launched in Southland. The winning concept was a very clever appreciation of the right time and place to introduce a niche product of total entertainment - music, food, decorations from various cultures that are currently growing in Invercargill.” ANNUAL REPORT 2014

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Student Achievement Maori Students Tertiary Education Strategy

Tauira Tautoko

An important goal of the Tertiary Education Strategy 2010-2015 is to increase the number of Maori students enjoying success at higher levels. Fourteen per cent of SIT’s students identify as Maori, a figure higher than Maori representation in the Southland 2013 census population figures (12.44%). The Maori 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 Maori community and its strategic established relationship with Te Wananga o Aotearoa have been influential factors in assisting with attracting Maori into tertiary education and supporting students to achieve.

SIT’s Tauira Tautoko (Maori Student Support Centre) is 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 Maori students. Tauira Tautoko supports Maori learners through the provision of facilities, resources, staffing, support and cultural services in a safe, encouraging environment targeted to improve Maori 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 Maori Week

Programme Selection and Performance In 2014, 41% of Maori students were enrolled in level 1-3 programmes and 58% were enrolled in level 4 and above. Students were well represented in subject areas in demand by industry, with the largest group studying towards business programmes (21%), and the next largest group enrolled in trades, engineering and technology programmes (15%). Studying te reo Maori was the next most popular choice (14%), followed by equal numbers in health and social services and arts (9%).

ªª Access and connection to local Iwi /Marae and cultural events ªª Student support facilities – cooking support, shared lunches, cultural food exchanges ªª Regular community guest speakers ªª Access to Justice of the Peace ªª Phone home service ªª Information on health and social services available in the community

Adult education was chosen by 7% of Maori students, tikanga by 6%, occupational health and safety and sport and recreation by 5%, primary industries by 4% and environmental management by 3%. Provisional 2014 data shows a significant improvement from 2013 in the results of Maori students, with 74% successfully completing courses, and over 66% successfully completing qualifications. SIT is committed to working with the Maori community and students to further improve educational performance, and has developed a draft Maori Strategy to strengthen consultation with iwi and to support Maori students in achieving their study goals.

Class activity at Tauira Tautoko

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Student Achievement Ngā Manu Kōrero Competition co-sponsored by SIT

Te Wānanga o Aotearoa staff members

Partnership with Te Wānanga o Aotearoa (TWoA) SIT’s longstanding strategic partnership with TWoA was established to ensure that the delivery of Maori programmes at SIT is relevant and culturally appropriate, and to enable staircasing opportunities for Maori students to progress to higher levels of training. TWoA delivers the following programmes at SIT: ªª Certificate in Te Ara Reo Māori ªª Certificate in Advanced Te Ara Reo Māori ªª Certificate in Kāwai Raupapa ªª Certificate in Te Korero Arataki Manu Korero ªª Certificate in Money Management ªª Certificate in Small Business Management ªª Certificate in Tikanga Māori ªª Certificate in Computing (VLC) ªª Diploma in Te Arataki Manu Kōrero ªª Diploma in Te Ara Reo Māori

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SIT was proud to co-sponsor the Ngā Manu Kōrero Otago/Southland Regional Secondary School Speech Competition held at the Civic Theatre in June. The growing popularity of the contest was indicated through a significant rise in participants, with 42 students participating in 2014 compared to 25 students in 2013. SIT has a rich history of working closely with the Maori community which is evident through its delivery of Maori language and tikanga programmes in Southland in conjunction with Te Wānanga o Aotearoa and the institute was delighted to assist young Maori speechmakers within the southern region to find their voice.

Student Achievement Two Graduation Firsts

Student Satisfaction Survey: 93% satisfied 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.

The inaugural SIT Certificate Graduation Ceremony was held in Stadium Southland in August 2014. The purpose of introducing the event was to celebrate successful programme completion for graduates who had completed a certificate level qualification. The following programmes were represented at the graduation: hospitality, organic horticulture, hairdressing, animal care science, business administration, construction, electrical, engineering and plumbing. Guest speakers for the evening were His Worship the Mayor of Invercargill Tim Shadbolt and Dean Addie Chief Executive of EIS and SIT Council member.

There were two main changes in the Student Satisfaction Survey in 2014: ªª The provision of an online option via Blackboard in addition to the use of hardcopy forms ªª A change from using the average satisfaction rating to using percentages to align with the methodology used by some other institutes of technology and polytechnics to allow for benchmarking exercises. Overall, 93% of the students were satisfied with the programmes they were enrolled in, compared to 4.2 (average satisfaction rating) in 2013. In addition, SIT has continued its satisfaction rating of more than 90% in the following key areas:

SIT Chief Executive Penny Simmonds commented “This is the first time we have had an institute-wide graduation ceremony in Invercargill for our certificate level programmes and we are pleased to be celebrating the certificate graduates’ success in this way. Many of these graduates will be moving onto apprenticeships and providing much needed support skills to the primary sector in the south”.

ªª Student support services such as Health Nurse, Counsellor, Learning Assistance Tutors, Peer Support Scheme, Disability Liaison Officer, Te Pakiaka (Maori Student Support Centre), Student Activities Officer and Library Staff

On 19th December, 133 students graduated at the inaugural Graduation Ceremony in Christchurch. Guest speaker was Phil Burns, former manager of the Christchurch Campus and His Worship the Mayor of Invercargill Tim Shadbolt.

ªª Library, equipment and resources ªª Course content, workload, assessments and feedback on academic and administrative staff Plans for 2015 include working with Otago Polytechnic to produce a student satisfaction benchmarking report to provide a comparison between the two institutions.

Guests and staff at the inaugural Christchurch Graduation Ceremony

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Student Achievement SIT Graduate in Australian Hair Fashion Award Finals

Postgraduate Programme Assists Augmented Reality Start Up Business

23 year old SIT hairdressing graduate Chloe Hegan has been selected for the Australian Hair Fashion Awards finals to be held 31 March 2015, having been chosen as one of six finalists in the Avant Garde section. The Australian Hair Fashion Awards (AHFA) are in their 22nd year and are celebrated as Australia’s largest independent hairdressing awards. Chloe was chosen as one of the 6 finalists in the Avant Garde section which represents the art of hair, the head as our canvas with no limitations. Chloe’s team at her Australian hair salon are also in the finals competing for Artistic Team of the year. Hegan also won the Hairstylist Society Victorian Hairdresser of the year in August 2013.

Born in Germany SIT Postgraduate Diploma in Business Enterprise student Melanie Langlotz came to New Zealand to work at a film post-production facility in Auckland after her career in film had taken her all around the UK and Europe. Dramatic changes in the film industry led Melanie to pursue a career in augmented reality and take up the role as Business Development Manager for Augview.

Chloe credits her hairdressing tutors at Southern Institute of Technology for their dedication to high level education that she believes is the platform for her achievements.

Melanie came across SIT and the Zero Fees Scheme while looking at education options online and after identifying the Postgraduate Diploma in Business Enterprise via SIT2LRN distance learning Melanie knew this was the perfect professional development opportunity to complement her new business development role.

Melanie found the programme gave her the skills and knowledge to bring her start up project in partnership with the Otorohanga District Development Board and the Otorohanga Kiwi House to fruition. The smart device app which simulates augmented reality was developed as part of Melanie’s Augview project and features virtual reality interactive Moa as a tourist attraction. Melanie’s vision for the future is to continue the expansion of the augmented reality app and enhance the capabilities of virtual reality. ANNUAL REPORT 2014 Chloe Hegan, Australian Hair Fashion Award Finalist

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Chief Executive Penny Simmonds awards the Diploma in Professional Chef Practice to graduate Jesse Hapuku

Support Services Disability Liaison Service

n 2014, 553 SIT students declared disability on enrolment, and of these 152 accessed the Disability Liaison Service throughout the year (27%). Many successes were achieved by students throughout the year including receiving awards at the annual SIT Award Ceremony and very good student retention and programme completions.

Student achievements

ªª 85% of students who enrolled identifying disability were retained in their programme ªª 74% of students who enrolled identifying disability successfully completed their programme ªª 4 students who accessed Disability Liaison Service were recipients of excellence awards at the SIT Award Ceremony, December 2014 ªª 18 students who accessed Disability Liaison Service were recipients of certificates at the Certificate Graduation Ceremony, December 2014 ªª 15 students who accessed Disability Liaison Service were recipients of a Diploma or Bachelor qualification at the Graduation Ceremony, December 2014.

Student feedback

ªª 23 of the students who received support (15%) responded to the Disability Liaison Service Survey ªª Survey respondents identified teaching staff and word of mouth, as the most common source of information about the Disability Liaison Service ªª 100% of the survey respondents reported the service enabled them to continue in their course

ªª 11 students were issued with on-campus parking permits

ªª 95% of the survey respondents reported the service enabled them to better meet their educational goals

ªª 46 pieces of equipment were loaned to support 29 students learning needs ªª 1121 staff support hours were delivered to 31 students for reader/writer support, or exam accommodations. This support was in place in Invercargill, Gore, Queenstown and for some SIT2LRN students elsewhere in New Zealand

Student support

ªª 32 students were screened for Irlens Syndrome, and 29 tested positive. Alternative formats were provided to those students to better enable them to read their course work, 35 students in total received course information in an alternative format

ªª 43 staff attended the training workshop on Human Rights

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Other Student Services

Youth Guarantee Scheme

n addition to those detailed above, SIT provides the following student services which were included in the student satisfaction survey and all received ratings of above 90% for 2014:

014 was the fifth and biggest year of SIT’s involvement in the Youth Guarantee Scheme, with 104 students enrolled in the scheme at the Invercargill and Christchurch campuses, and 34 students from various Southland High Schools taking part in our secondary school and trades partnership, the Hokonui Tertiary High School.

ªª Learning Assistance Unit ªª Health Nurse and Counsellors ªª Employment Officer

Changes to the scheme in 2014 increased the support available to 16 and 17 year olds to include 18 and 19 year olds. An additional allocation of funding mid-year allowed for more students to participate in the scheme, and resulted in the addition of another dedicated staff member to assist with the mentoring and pastoral care.

ªª Student Activities Officers ªª Library ªª Peer Support

Equal Employment Opportunities

Students accepted onto the scheme received tailored support throughout their studies. They attended regular meetings with their Student Support Officer to set goals, discuss progress and address any issues that may have been hindering achievement. Student surveys indicated the pastoral care received was valued very highly by the students. YGS staff worked alongside the students, whanau, tutors, SIT Support Services and where necessary external agencies to achieve the best possible outcome for the students.

SIT has provided individual reports on the following: ªª Maori Students - refer page 21 ªª Students with Disabilities - refer page 26 ªª Youth Guarantee Students - refer page 27 ªª International Students - refer pages 28-31 ªª Staff Training and Development - refer pages 39-40

Achievements: 81% of Youth Guarantee students were retained in study and 59% percent graduated – up 9% from the previous year. 57% of Youth Guarantee students who left prior to completing their course of study did so due to obtaining apprenticeships or related employment. 69% of Youth Guarantee Scheme students went on to further study, apprenticeships or employment.

9 Youth Guarantee Scheme students received awards at the SIT Award Ceremony including 5 who were named “Top Student” for their programme.

Students enjoying Orientation Week

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International Students SIT’s International Success Recognised by Export Southland

Continued Growth in International Student Numbers

SIT’s strong market position in the international tertiary education sector was recognised at the Export Southland Awards’ Dinner in September 2014.

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 won the title prize of Export Southland Corporate Recognition Winner for excellence and outstanding contribution to the export sector in Southland. At that time 870 international students were enrolled at SIT from over 33 different countries with China being the major market, closely followed by India, with growing markets in Sri Lanka, Vietnam and Germany .

SIT has been one of the leading ITPs to show strong growth in its international student population over the past five years, and is projecting further growth in the future on the basis of this strong foundation. SIT’s year-on-year growth in its international student population has been strongly supported by our local industries and communities who see the need for skilled workers, population growth, enhanced tourism opportunities, and exposing both students and local businesses to the global market. In Southland SIT works collaboratively with Venture Southland and the local secondary schools as part of the Education Southland Consortium. This consortium has been commended by Education New Zealand as a successful model for regional New Zealand.

In 2013 the total economic impact of SIT international students on Southland was $19.9 million, with a GDP contribution of $10 million and an employment contribution of 126 FTE. SIT Chief Executive Penny Simmonds said that she was delighted with the recognition of international students as a significant export earner for Southland.

In 2014, SIT hosted 1058 international students, over 1,000 New Zealand permanent residents and 42 staff members from various countries, including: China, India, Sri Lanka, Nepal, Japan, the Philippines, Malaysia, Indonesia, the United States of America, the United Kingdom, Germany, Austria, Brazil, Vietnam, Korea, South Africa and Zimbabwe. SIT has achieved the following percentage growth in the number of international students enrolled at SIT from 2011 – 2014: ªª 2011 – 2012: 10% ªª 2012 – 2013: 10% ªª 2013 - 2014: 20%

SIT Deputy CE Bharat Guha (right) showing award to Postgraduate Diploma in Business Enterprise international students

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Accommodation for International Students in Queenstown and Invercargill

n order to ensure SITâ&#x20AC;&#x2122;s increasing international student populations have appropriate accommodation choices, especially in areas where accommodation is at a premium, SIT has built student accommodation units in Invercargill and in Queenstown within the perimeter of Remarkables Park where the SIT campus is located.

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International Students Expansion of Chinese Partnership

Building Educational Relationships with Key International Partners SIT has continued to build and add value to its relationships with key international partners. For example, SIT’s partnership with Hochschule für Wirtschaft und Umwelt Nürtingen-Geislingen (Nürtingen–Geislingen University) (HfWU) in Germany has resulted in HfWU students coming to New Zealand for the past three years and enrolling in programmes such as: ªª Bachelor of Environmental Management ªª Bachelor of Sport and Exercise

In 2014 SIT put plans in place to expand its strong five year old relationship with Hubei University of Education (HUE) based in Hubei, China. The initial agreement was for the delivery of SIT’s English Language programme onsite at HUE and for the delivery of the Diploma in Hotel and Tourism Management programme whereby students can transfer to Invercargill for a final year of study to gain the Bachelor of Hotel Management. Sixty-five HUE students were undertaking programmes through this partnership in 2014.

ªª Bachelor of Hotel Management ªª Postgraduate Diploma in Business Enterprise SIT has also further cemented its relationship with Hubei University of Education (HUE) in Wuhan, China, gaining offshore accreditation and approval for three of SIT’s qualifications to be taught at HUE and the students then coming to SIT for their final year. Staff exchanges and training have occurred between the two institutions for the past three years and the first students to come through this partnership are due to commence study at SIT in February 2015. SIT is also in the process of extending this relationship to other areas.

SIT Deputy Chief Executive Corporate Bharat Guha, International Marketing Manager (China) Michelle Zhao, and SIT International Consultant for China Dr Limin Xiong met with representatives from HUE in May 2014. Mr Guha reported that there had been a good response to the delivery of the SIT programmes from the people of Hubei, and that SIT would explore the next steps to select further appropriate programmes to be delivered through this partnership.

SIT has developed partnerships with the following international educational institutions: 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)

Programmes for consideration were the Bachelor of Information Technology and Certificate in Construction. HUE staff were particularly interested in the opportunity for students to pathway to the Postgraduate Diploma in Information Technology upon completion of the Bachelor of Information Technology at SIT.

ªª Flensburg University of Applied Sciences (Germany) ªª Ho Chi Minh City University (Vietnam) ªª Hochschule Fuer Wirtschaft (HfWU) (Germany) ªª Hong Kong Polytechnic University ( Hong Kong)

Six lecturers from HUE spent two months at SIT in July to gain an understanding of the programmes to be delivered in Hubei. This was followed by a visit to Hubei by Teri McClelland, Head of Faculty for SIT’s distance learning faculty, to discuss the development details for the programmes.

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

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International Students Bachelor of Applied Media Arts attracts Borneo student

International Partners Hosted at SIT Executives from SIT’s international partner International College of Advanced Technology (ICATS) in Borneo were hosted at SIT in May 2014 at both the Invercargill and Christchurch campuses. Tan Sri Dato Amar Aziz – Chair of ICATS, Dato Baharuddin Abdullah – Chief Executive of ICATS, Mr. Rambli Hasbi – Deputy Executive Director (Student Services), and Mr. Isham Fauzi – Chief Operating Officer met with SIT executives and toured SIT facilities that were relevant to the pilot initiative between the two institutions.

Choosing Invercargill and New Zealand for his family was an easy decision for Chief Executive of Borneo Housing Mortgage Finance Berhad, Anthony Sia. “The city, with a population of only 50,000 people, is quiet and friendly. Everywhere is just 5 minutes away. The city’s growth is propelled by students, who give the city an international flavour.”

The initiative involves staircasing ICATS trades students (Electrical and Construction) to SIT’s Christchurch Campus with the opportunity to undertake an internship with construction firms involved with the rebuild of Christchurch City. The other side of the agreement allows for SIT programmes to be offered at ICATS Kuching Campus starting with National Certificate in Adult Education and Training Level 5 and the Bachelor of Hotel Management.

Once settled in Invercargill daughter Karen then enrolled to study the Bachelor of Applied Media Arts at SIT.

Mr Sia noted “The staff and lecturers at SIT are very supportive of students. Sporting facilities locally are world classthe internationally acclaimed Velodrome is named after SIT. There’s a big indoor stadium, plentiful parks around the city, first class swimming centre and greenery everywhere. I find that this is a perfect place for students to study. Being a small city, everyone knows someone, there are no major distractions here in Southland”.

SIT Chief Executive Penny Simmonds commented at the time of the signing of the partnership agreement that it paved the way for SIT programmes to be delivered partially in Kuching so students could transfer to SIT Invercargill to complete their qualification. Ms Simmonds added that the support of former Associate Minister of Education Dr Pita Sharples, Deputy Speaker of the House and former Invercargill MP Eric Roy as well as NZ High Commission David Pine at the signing ceremony in March in Kuching during NZ week ensured the collaboration received significant coverage in Borneo.

Karen who has just recently graduated loved “ learning the wide range of art techniques that I had never known before and learning many other ways to do the artwork”. She also commented that “small classes mean more interactions between students and lecturers, lecturers are friendly and approachable when students stumble upon any difficulties”. Anthony added “My young son is signing up for a degree course in 2015 at SIT. We are here for the long haul. This place is the best kept secret in New Zealand! “ ANNUAL REPORT 2014

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SIT Chief Executive Penny Simmonds with ICATS Chief Executive Dato Baharuddin Abdullah and the Chair of ICATS Tan Sri Dato Amar Aziz

Industry, Business, Community Industry Advisory Committees and Chairpersons

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

Health, Humanities and Computing

New Media, Arts and Business

Advisory Committee

Chairperson

Company

Advisory Committee

Chairperson

Company

Environmental Management

Richard Bowman

Environment Southland

Hospitality

Scott Richardson

Information Technology

Ian Edwards

Code Blue

Kawa Whakaruruhau Roopu

Tania Rewi

Southern District Health Board

Massage & Natural Therapy

Margaret Walker

Naturopath

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

Mental Health

Marg Poulgrain

Te Kotuku

Design & Visual Arts

Miles Hewton

Miles Hewton Photography

Nanny

Rose Cardoso

Kidicorp

Nursing

Julia Russell

Presbyterian Support Southland

Digital Media

K J Jennings

Film Otago/ Southland

Journalism

Editor

Southland Times

Social Services

Dawn Lloyd

Family Works

Fashion

Amanda Knowles

SIT

Sport & Recreation

Vanessa Hughey

Sport Southland

Music, Audio Production & Dramatic Arts

Angela Newell

Venture Southland

Business

Dave Rohan

Business Consultant

Business Consultative Group

Craig Smith

French Burt Partners

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Industry, Business, Community Industry and Business Sponsor SIT Award Ceremony

SIT2LRN Advisory Committee

Chairperson

Company

Creative Media

Jackie Flutey

SIT

Trades & Applied Sciences

Stephen West

Environment Southland

Health & Humanities

Matt Sillars

Sport Southland

Business

Jackie Flutey

SIT

Overarching Advisory Committee

Debbie Rankin

NZAS Training & Development

Well known successful Southland businessman Graham Cooney, Chairman of Blue Sky Meats (NZ) Ltd and Board Member of both the New Zealand Rugby Union and the New Zealand Racing Board was guest speaker at the 2014 SIT Award Ceremony held in December. Mr Cooney who is also a Board Member of the Red Meat Profit Partnership and Spark Southland had a wealth of business and community experience to share with awardees, award sponsors and guests.

Trades and Technology Advisory Committee

Chairperson

Company

Architectural Technology

Warren Ruwhiu

SIT

Automotive

Russell Finlay

SIT

Beauty Therapy

Therese Doyle

SIT

Business Administration

Terry Egerton

SIT

Construction

Warren Ruwhiu

SIT

Electrical

Russell Finlay

SIT

Engineering

Noel Clayton

Competenz

Industry Centre including NZDE

Michael Weusten

Acumen Applied Ltd

Joinery

Russell Finlay

SIT

Plumbing

Mike Grumball

SIT

Travel and Tourism

Therese Doyle

SIT

Veterinary Nursing

Brian Mason

Retired Veterinarian

150 awards to the value of approximately $100,000 were presented with the vast majority of awards sponsored by local business and industry. This reflects the genuine commitment of industry to work with SIT towards their shared objective that training delivered at the institute is relevant, up to date and aligns closely with industry standards. Chief Executive Penny Simmonds said that SITâ&#x20AC;&#x2122;s partnerships with industry were a significant factor in the success of the institute and included involvement in advisory committees, internships, clinical experience, work experience, joint research, guest speaking, mentoring, sponsorships and joint projects. Ms Simmonds noted that the award ceremony was an opportunity for SIT to celebrate the outstanding achievements of our top students and to showcase our close relationships with local and national businesses and industry who have assisted in our studentsâ&#x20AC;&#x2122; success.

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Industry, Business, Community Chamber of Commerce and Employers’ Association relocate to SIT The Southland Chamber of Commerce and Otago Southland Employers’ Association relocation to Tay Street in 2014 has strengthened their relationships with the Southern Institute of Technology according to Chamber Chief executive Sarah Hannan. The Chamber moved from Wachner Place to the former SIT Bookshop opposite the main campus in mid-August. “We can work closer together on projects with SIT,” Ms Hannan said. One example of this was the lecture for students with speakers including Facebook client partner Rowan Spinks, and Vodafone’s head of digital communications Mike Wilson in October, on the key insights, New Zealand trends and best practice in digital and social media for 2014. Ms Hannan felt that having a presence near SIT was beneficial for strengthening the linkages between students, graduates and local businesses.

Trades Students Create Home Masterpiece

SIT trades students took a desolate piece of Invercargill land and turned it into a lavish home and garden setting. The students built a beautiful modern home from scratch offering three double bedrooms and two bathrooms (master with en suite and walk-in wardrobe), separate laundry, open plan kitchen, living and dining room with pitched ceiling. SIT Chief Executive Penny Simmonds hosted Mayor Tim Shadbolt to view the property and improvement SIT has made to the area through the efforts of the trades students.

The house was built on site at SIT’s new $5m trades facility, then relocated to a Collingwood Street section in Invercargill which was identified by the Invercargill City Council as one of the ten worst sections in Invercargill. SIT worked in partnership with Mitre 10 Mega for the materials and hardware, while H & J Smith Ltd furnished the house and provided the interior décor. SIT Programme Operations Manager Warren Ruwhiu said “The house was a tremendous effort by the construction, carpentry and joinery students. It was a great opportunity for them to have industry experience aligned with what they would be doing in a work environment. It was also rewarding to see Collingwood Street revitalised by taking a ghost section and creating a modern home there”.

Chamber of Commerce President Sean Woodward and Otago Southland Employers’ Association President Andrew Leys opening the new facility

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Industry, Business, Community Xero Certification commences in Invercargill A partnership between JCCA Chartered Accountants, SIT and Xero, allowed for the first delivery in New Zealand of the JCCA Xero Certification. This programme has been developed for students and business people to master the revolutionary Xero Cloud Accounting software. Xero is a fast growing company with teams and customers in New Zealand, Australia, United States, Canada and United Kingdom and is emerging as the global leader in online accounting for small business. Xero was recently ranked Number One by Forbes in its list of the World’s 100 Most Innovative Growth Companies.

The certificate gives graduates practical business accounting experience through working with real industry data in a real life setting through the seven week programme. This course is considered to be a valuable addition to the skillsets of those working in the business industry as it demonstrates a working knowledge of new technologies which are expected to become the preferred solution for SME business in New Zealand and the world. Rod Drury, CEO of Xero commented that “JCCA represents one of a small number of Xero’s professional partners who are at the leading edge of these web based (cloud) technologies and the growing ecosystem surrounding Xero’s core accounting solution. JCCA have clearly understood the ‘game changing’ power of enabling web based technology which can benefit both business, communities and nations.” Laura Fairweather NZ para-cyclist (world champion, world recorder holder) and SIT 3rd year Bachelor of Sport and Exercise Science student David Watts

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SIT Students Help Prepare Para-Cyclists for World Championship Wins Third year Bachelor of Sport and Exercise Science students helped condition and prepare New Zealand para-cyclists for their World Championship gold and silver wins in Mexico in 2014. The SIT students trained six NZ para-cyclists (four Southlanders and two SIT graduates) for the championships. As the conditions at the World Championships were at 1880m altitude, the athletes were trained on SIT’s hypoxic machine which simulates high altitudes. The sport and exercise science students facilitated the sessions and measured the performance of the athletes as part of their studies, overseen by sport and exercise tutor Will Payne. Bike NZ Head Performance Coach Brendon Cameron said “We were very fortunate that SIT both had the necessary equipment and could accommodate us after short notice was given. The World Para-Cycling Champs were announced late in the UCI International racing calendar and the fact that the athletes were competing at 1880m above sea level in Mexico meant we needed some specific altitude simulation training sessions”.

Industry, Business, Community International Secondary Schools’Culinary Competition in SIT Bungalow Training Restaurant

SIT Gives Girls a Taste of the Trades

SIT was proud to host nine teams of students from New Zealand, Japan, Taiwan, Tahiti, Australia and New Caledonia in September 2014 for the International Secondary Schools’ Culinary Competition (ISSCC), which had been established in 2005 as part of the World Association of Chef Societies’ Asia Pacific Culinary Forum. SIT worked in conjunction with local secondary school Southland Boys’ High School to bring the competition to Invercargill where it was held in the SIT Bungalow Training Restaurant, training ground for many of Southland’s and New Zealand’s top culinary graduates. SIT was delighted to work with Southland Boys’ High School and be able to share this facility with secondary school pupils from all over the world to exhibit the excellent resources and culinary fare that SIT and Southland have to offer.

The Trades and Technology Faculty gave 195 Year 11 Southland Girls’ High School pupils a taste of the trades in March. The girls were given the opportunity to choose one of the following programmes, Airbrush, Automotive, Carpentry, Electrical, Engineering, Furniture/Joinery, Painting and Decorating, and then spend a day in one of these areas in SIT’s new $5 million dollar trade facilities. Russell Finlay Programme Operations Manager said “There are some great career opportunities in trades areas offering real job satisfaction and higher wages. Although women have historically been under-represented in many trades, they often excel in what might be considered male dominated roles. Some of our best tradespeople are women, and they often bring skill sets that allow them to move onto management roles within the industry”. Southland Girls’ High School pupils commented “it opened up a new career pathway that we would not have thought of doing before”, “it was fun and something different”. The girls were also given a tour of the new multi-million dollar trades facilities and discussed potential career planning options with tutors and programme managers.

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Industry, Business, Community SIT Supports Local Community

Southland Stags - ITM Cup National Rugby Competition Southland Sharks - NZ National Basketball League

Shakespeare in the Park

SIT Centre Stage - music, theatre, fashion, films

Southern Steel - ANZ Trans Tasman Netball Championship

Damon Leitch - New Zealand Racing Driver

Eddie Dawkins - Olympic and Commonwealth Games Cyclist ANNUAL REPORT 2014

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Staff Focus Ako Aotearoa National Tertiary Learning and Teaching Conference at SIT For the second year in succession Southern Institute of Technology hosted the Ako Aotearoa National Tertiary Learning and Teaching Conference at the main campus in Invercargill. The theme of the conference was Te Ao Hou – The New World focussing on: education anytime, anywhere; being culturally responsive; preparing students to be work ready. SIT Chief Executive Penny Simmonds reflected in her opening address on the main theme in terms of current and future changes in the classroom, while reminding conference participants that the teacher/educator, who has the ability through their passion to inspire their pupils, will always be at the heart of education. This theme was integrated into all sessions throughout the conference and brought to a close in the impassioned final key note address delivered by SIT hairdressing tutor Donna Bowman, 2014 Hairdressing Industry Training Organisation Tutor of the Year. Conference key note speakers and topics: Dr Kerry Reid-Searle, Professor of Nursing from Central Queensland University, Australia: “Anywhere, anytime: a simulation teaching strategy preparing learners for real world practice beyond the classroom walls”. This was an encore keynote after the success of her 2013 presentation, and again Professor Reid-Searle captivated the audience with her unique style of teaching and the strong modelling of this teaching strategy.

Dr Selena Chan, Centre for Educational Development, Christchurch Polytechnic and recipient of the Ako Aotearoa’s Excellence in Teaching Award, delivered her keynote address, “Flexible and Mobile Delivery @ CPIT post 2012: shaken, stirred and poured”. Dr Chan illustrated how the use of mobile devices have supported the teaching and delivery of programmes for students. Dr Ganesh Nana, Executive Director, Chief Economist, Business and Economic Research Ltd (BERL): “Tertiary education, value and the 21st century economy”. Dr Nana explored the big picture economy and trends, including possible educational requirement and trends in the future. Dr Nana reminded us that the economy was about people! Angus Hikairo Macfarlane, Professor of Maori Research, University of Canterbury: “Mai I te ao tawhito kit e ao hou: cultural touchstones for higher education in today’s world”. Manu Faaea-Semeatu, National Pasifika Facilitator, CORE Education: “Le lalolagi fou: E tumau le faávae, ae fesuiaí faiga – understanding the diverse-cities of Pasifika”. Each of the conference themes was addressed in relation to the way in which Pasifika culturally responsive, inclusive and exclusive aspects contribute to an overall cultural framework that champions Pasifika students and more specifically – informs educators of Pasifika students about how these students view themselves in le lalolagi fou (the new world).

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Donna Bowman, Hairdressing Tutor, Southern Institute of Technology, and Hairdressing Industry Training Organisation (HITO) 2014 Tutor of the Year Award recipient. Ms Bowman’s passion for her industry and education was clearly demonstrated throughout her address “Keeping it real” in which conference participants were reminded that they are dual professionals: industry experts as well as educators, each requiring different sets of skills which are of equal importance, but both roles combining to support students and prepare them for the workplace. Dr Peter Coolbear, Director, Ako Aotearoa: “Making effective use of student feedback on innovative practice to improve educational outcomes”. Dr Coolbear’s presentation looked at ways in which managers and practitioners can develop strategies for evidence collection and use that are fit for purpose, support organisational innovation and improvement and the development of individual teaching practice. Workshops –A wide range of topics was covered in the workshops, all addressing the conference themes. SIT nursing tutor Johanna Rhodes’s session on “Responding to diverse learners by engaging and making learning memorable and effective with the use of board games and television game shows” was a standout for session attendees who saw the potential and link between evaluation, discussion, reflection and application which all occur during games. Hemi Te Hemi’s workshop “He Toki Ki Te Riko - culturally responsive trade training”

Donna Bowman - HITO Teaching Excellence Award Winner delivering her key note address Steering committee – Margaret Mattsen, Dr Jo Whittle, Debbie Ruwhiu, Sue Kelly and Judy Fleck at the night market.

was also noted as outstanding, exploring the barriers and enablers to success and future focus on work based training. Social highlights included a “Night Market” showcasing the arts, fashion and digital media, and featuring locally sourced cuisine including speciality sheep’s cheese and wine, a conference dinner and a trip to one of New Zealand’s earliest settlements – the township of Bluff.

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Central Queensland University Professor Kerry Reid – Searle in character with Johanna Rhodes

Staff Focus Staff Training and Development

Staff Research 2014 SIT Research Symposium 2014

The Academic Support Unit (ASU) coordinates professional development activities for tutorial and allied staff at SIT. Significant activities for 2014: ªª The unit hosted the Ako Aotearoa National Tertiary Teaching and Learning Conference in October for the second year. The conference attracted delegates and presenters from around New Zealand and Australia and delegates noted their appreciation of the high calibre of key note speakers and pertinent topics covered. ªª The Annual Staff Training Week was held in early February and received very positive feedback from staff. Topics ranged from mandatory sessions (for example – bicultural, health and safety) to teaching and learning sessions, and generic topics such as customer service and workplace communications. ªª The New Tutor Workshops continued this year, with the delivery format changed to “Block Courses” three times throughout the year to allow more accessibility to the workshops for staff. The workshops provide an introduction for new tutors to foundation classroom skills and academic quality requirements. ªª The Professional Learning Series continued into its second year and included presentations on good practice from experienced tutors, and workshops on selected topics relevant to the needs of the tutorial staff. The series was well received with rich discussions following each session, and staff noting their value from both teaching improvement and staff networking perspectives. ªª Managers and Team Leaders’ annual training day was held in August. This training provides middle managers with the opportunity to network with other managers and to obtain information and strategies to support them in their roles. ªª Each year ASU staff undertake the delivery of and support for staff required to complete the National Certificate in Adult Literacy and Numeracy Educator (NCALNE) qualification; all staff who enrolled in 2014 completed the qualification. Staff evaluations noted the improvement in classroom practice as a result of the implementation of strategies studied throughout the programme. ªª Observation of teaching is an important professional development activity undertaken with all full time tutorial staff by ASU staff, with the objective of improving teaching practices, student engagement and student performance. The activity also serves as a means of fostering professional growth and provides benefits such as sharing teaching techniques and philosophies. ANNUAL REPORT 2014

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In an interesting and varied agenda at the annual Staff Research Symposium held in December twelve staff shared their research with their colleagues. The day was spilt into three sessions, with staff presenting from across two faculties: Health, Humanities and Computing, and New Media, Arts and Business. The symposium offered an ideal opportunity for staff to hear about a wide range of research findings and to share work in progress with an engaged and supportive audience. A number of topics related to supporting teaching and learning, including research into effective techniques for collaborative learning and the innovative use of simulation techniques to enhance nursing education. Presentations included research which related to the areas of expertise and art practice of individual staff members in the areas of sport and exercise, business, environmental management, visual arts, film and animation. Staff explained how their teaching is informed by their research and how research promotes innovation and improvements in their various fields of teaching. A popular component of the event each year is the audience vote for the ‘People’s Choice Award’ for their favourite presentation of the day. The 2014 award went to Kathryn Mitchell, Programme Manager for Visual Arts, for her dynamic presentation ‘Performing the DIY Public Museum’, drawing on her doctoral research into museum practice and theory.

Staff Focus Staff Publications 2014 Southland Health Research Five Minute Findings Forum The biennial Southland Health Research Five Minute Findings Forum was held in collaboration between SIT and Southern District Health Board (SDHB). This was the second time the forum has been run, and this year it was held at the Southland Medical Foundation Lecture Theatre at Southland Hospital. Researchers from SIT, the Southern District Health Board and the community presented their findings, each one lasting for five minutes only. A very wide range of topics was covered during the day, ranging across the fields of public and environmental health, natural therapies, medicine, nursing, sport and exercise, and health education. The audience of around 50 people was made up of professionals from hospital, tertiary education and community settings, and attendees found the event very informative and useful. A panel of two judges assessed the performances of the presenters. The Best Presentation winner of a cash prize of $250, donated by Southland Nurses’ Forum, was Sally Dobbs, Academic and Relationship Leader of the SIT School of Nursing, for her work on “Assessing failing nursing students in clinical practice”.

Published papers and articles Bodkin-Allen, S. (Ed.). (2014). Special Edition Southern Institute of Technology Journal of Applied Research: 2013 National Tertiary Learning and Teaching Conference. Retrieved from http://www.sit.ac.nz/ SITJAR#310064-2014 Bodkin-Allen, S. (Ed.). (2014, April). Tune Me In, 9 (1). Bodkin-Allen, S. (Ed.). (2014, July). Tune Me In, 9 (2).

Smith, J. (2014). Massage therapy research update. June 2014 (second quarter). Massage New Zealand Magazine, 24-26. Smith, J. (2014). Massage therapy research update. September 2014 (third quarter). Massage New Zealand Magazine, 26-27. Smith, J. (2014). Massage therapy research update. December 2014 (fourth quarter). Massage New Zealand Magazine [in press].

Bodkin-Allen, S. (2014, November). Chocolate pudding, red shoes and lots of singing!, Tune Me In, 9(3), 14-15.

Swain, N. & Bodkin-Allen, S. (2014). Can’t sing? Won’t sing? Aotearoa/New Zealand ‘tone-deaf’ early childhood teachers’ musical beliefs. British Journal of Music Education, 31(3), 245-263.

Bodkin-Allen, S. (Ed.). (2014, November). Tune Me In, 9 (3).

Exhibitions

Bodkin-Allen, S. (2014, September/ October). Singing yourself to health. Good Magazine, 38, 62-63.

Belton, P. (2014). South. Selected group exhibition. Southland Museum & Art Gallery, Invercargill, New Zealand.

Mumford, J. & Smedley, F. (2014). Problem solving strategies in math anxiety management. Southern Institute of Technology Journal of Applied Technology. Retrieved from https://www.sit.ac.nz/ SITJAR#310064-2014

Belton, P. (2014). Summer exhibition. Selected group exhibition. Bank Gallery, Invercargill, New Zealand.

Bodkin-Allen, S. (2014, April). Flashmob fever. Tune Me In, 9 (1), 6-7.

Myers, R. (2014). Technologies of early film and interdisciplinary performances. Inter-discipline: AAANZ Conference 2013 Conference Proceedings. Retrieved from http://aaanz.info/aaanz-home/ conferences/2013-IGooconference/ aaanz-inter-discipline-2013-publishedproceedings/

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Cathcart, E. (2014). Isolation, influence and identity. Exhibition at National Tertiary Learning & Teaching Conference. Invercargill, New Zealand. Performance Forrest, F. & Williamson-Mason, H. [Directors]. (2014). Bad Jelly the Witch by Spike Milligan. Invercargill: Southland Festival of the Arts 2014.

Staff Focus Staff Publications 2014 Sagmyr, J. [Producer and audio designer]. (2014). Continuum National Conference 2014. Queenstown, New Zealand. Sagmyr, J. [Musical director and producer]. (2014). Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand. Musical compositions Bodkin-Allen, S. (2014). Florence’s nightlight, for cornet and piano [Musical composition]. Retrieved from http://sounz.org.nz/

development day, Invercargill, New Zealand. Bodkin-Allen, S. (2014). Can’t sing, or won’t sing? Changing perceptions of ‘tone-deafness’ in early childhood teachers. Presentation at the 36th annual ANZARME Conference, Queenstown, New Zealand. Bodkin-Allen, S. & Longman, H. (2014). The great mix-up: Student engagement in the School of Music at SIT. Presentation at “Into the Mix” IASPM Conference, Dunedin, New Zealand.

Bodkin-Allen, S. (2014). Pirate Jack, for trombone and piano [Musical composition]. Retrieved from http:// sounz.org.nz/

Bowman, D. (2014). Keeping it real. A tutor who is passionate about education. A hairdresser who is passionate about her industry. Keynote address at National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Bodkin-Allen, S. (2014). Finn’s news, for tenor saxophone and piano [Musical composition]. Retrieved from http:// sounz.org.nz/

Casey, C. (2014). Modeling aspirin therapy. Presentation at Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand.

Sagmyr, J. (2014). A life that cries out Jesus [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand.

Sagmyr, J. (2014). I lift your name [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand. Sagmyr, J. (2014). Lord of all [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand. Conference presentations Bodkin-Allen, S. (2014). An Orffish approach and fun with nursery rhymes. Workshop presentation at the MENZA Hook into Sound professional

Dobbs, S. (2014). A collision of two worlds: a phenomenological study into the experience of clinical nurse lecturers assessing ‘failing’ nursing students in clinical practice. Presentation at Christchurch Polytechnic Institute of Technology Clinical Assessment Workshop, Christchurch, New Zealand. Dobbs, S. (2014). A collision of two worlds: A phenomenological study into the experience of clinical nurse lecturers assessing ‘failing’ nursing students in clinical practice.

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Presentation at Royal New Zealand Nursing Corps Seminar, Wellington, New Zealand. Hoffman, J. (2014). The committed learners project. Presentation at the International Journal of Arts and Sciences Conference, Toronto, Canada. Longman, H. (2014). Interdepartmental collaboration. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Longman, H. (2014). ‘You can do it baby!’ Teaching rhythm and patterns to babies and young children. Workshop presentation at the MENZA Hook into Sound professional development day, Invercargill, New Zealand. Mitchell, K. (2014). Performing the DIY public museum: Shifting the frame of conception, production, and reception. Presentation at Seventh International Conference on the Inclusive Museum, Los Angeles, USA. Montayre, J. R. (2014). Head, shoulders, knees and toes: An item analysis of MCQ item exams for the anatomy and physiology class of Bachelor of Nursing year 1 students. Presentation at National Tertiary Learning and Teaching Conference, Invercargill, New Zealand. Montayre, J. R. (2014). Dealing the real and the unreal: A dementia patient’s reality. Presentation at Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand. Mumford, J. (2014). Meaningful connections between real-life and theory. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Musika, F. (2014). Integrating green consumption dimension: Refining

Staff Focus Staff Publications 2014 and validating the Consumer Styles Inventory scale (CSI). Presentation at ANZMAC Doctoral Colloquium Curtin University, Perth, Australia. Musika, F. (2014). Green CSI: Challenges and the way forward. Presentation at ANZMAC Conference, Griffith University, Brisbane, Australia. Myers, R. (2014). ‘Here and now, this and that’: Exploring temporalities of display and interruption in encounters with the filmic body. Presentation at Action & Delay Conference, Auckland University of Technology, Auckland, New Zealand. Rhodes, J. I. (2014). From pretend to real: Moulage workshop. Workshop presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Rhodes, J. I. (2014). Responding to diverse learners by engaging and making learning memorable and effective with the use of board games. Presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Rhodes, J. I. (2014). Education anytime, anywhere, using PeerWise to enable a classroom with no walls. Workshop presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Rhodes, J. I. (2014). Promoting learning by engaging and making learning memorable. Presentation at the Southland Health Research ‘Five Minute Findings’ Forum, Invercargill, New Zealand. Skaria, R. (2014). Experiences of overseas nurse educators teaching in New Zealand. Presentation at Third Asia Pacific International Conference on Qualitative Research in Nursing, Midwifery and Health, Newcastle, Australia.

Tyrie, F. (2014). Collaboration: The good the bad and the ugly. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Tyrie, F. (2014). Te kahu: business incubator. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand. Van Niekerk, E. & Fisher, J. (2014). GIS food shed modelling: A sustainable planning tool for Invercargill. Presentation at the IGU Regional Conference, Krakow, Poland. Reviews Mitchell, K. (2014). An empty tent flapping in the wind. Landfall Review Online: New Zealand books in review. Retrieved from http://www. landfallreview.com/2014/08/an-emptytent-flapping-in-wind.html Whittle, J. (2014). Review: David Young, rivers: New Zealand’s shared legacy. Environment and Nature in New Zealand, 9(2), 71-76. Retrieved from http://environmentalhistoryau-nz.org/new-zealand/new-zealandjournal/ Public talks Dobbs, S. (2014). Early military nursing history. Presentation at Southland Woman’s Club (September), Invercargill, New Zealand. Dobbs, S. (2014). Remembering military nurses in World War One. Presentation at Royal Masonic Lodge (November), Invercargill, New Zealand. Mitchell, K. (2014). Performing the DIY public museum. Shifting the frame – conception, production, reception.

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Open talk at Southern Institute of Technology (June), Invercargill, New Zealand. Ramsay, R. (2014). Clay, the Royal Society of London, and the Protestant succession: forensic science of English porcelains reveals all. Talk in Science Express series, Te Papa Tongarewa Museum of New Zealand (November), Wellington, New Zealand. Strathearn, M. (2014). Men’s health issues. Presentation at Community Mental Health Men’s Group (September), Invercargill, New Zealand. Strathearn, M. (2014). Early intervention strategies and treatment options for prostate cancer. Presentation at Community Mental Health Men’s Group (December), Invercargill, New Zealand.

Staff Focus “Inclusive SIT Tutor Named Educator of Museums” the Year Presentation at Los Angeles Conference

Richard Greer, Certificate in Personal Training tutor based at SIT’s Christchurch Campus was named Educator of the Year at the 2014 Exercise Industry Awards. Richard received his award on November 22nd at the Award Dinner and ceremony at the Sir Paul Reeves building in Auckland.

Southern Institute of Technology Arts Programme Manager Kathryn Mitchell travelled to Los Angeles in August 2014 to present her PhD research at the Annual Conference on the Inclusive Museum. The purpose of the conference was to present and discuss ideas on how to make museums accessible to all people. Kathryn’s research presented findings on how museums can engage community.

Richards’s peers and students endorsed his award confirming that “he stands out as being someone, who over the last few years has had the courage to step out of his comfort zone and challenge himself both professionally and personally in order to raise the bar of his content and delivery style.”

Veterinary Nursing Tutor Selected As Judge for Irish Pony Show

National Diploma in Veterinary Nursing tutor Sheila Ramsay was selected as a judge for the world renowned annual Connemara Pony Show in Clifden, County Galway, Ireland in August. The event was organised by the Connemara Pony Breeders’ Society and is said to be the largest pony show in the world attracting visitors from around the world. Ms Ramsay is the first New Zealander to be selected for this honour. Prior to the competition in Ireland Ms Ramsay travelled to Austria and Germany in connection with her research into the Hoof Wall Separation Disease (HWSD) using the ‘Connemara model’.

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Staff Focus New graduation gown design for staff and graduates

Staff Develop New Programmes with Industry Throughout 2014 SIT staff developed and received approval and accreditation from the New Zealand Qualifications Authority (NZQA) to deliver 24 new programmes, all of which were backed by significant regional and national industry support. ªª Postgraduate Diploma and Postgraduate Certificate in Information Technology ªª Bachelor of Applied Management ªª Graduate Diplomas and Graduate Certificates in : • Applied Management

Lindah Lepou, SIT Brand Ambassador

• Applied Marketing

In 2014 SIT commissioned international Pasifika couturier, Lindah Lepou, to design and produce new undergraduate and master’s gowns for staff and our growing number of graduates. Lindah created a unique woven yoke design symbolising Scottish tartan, Maori design and Pasifika design to blend in with the traditional academic gown.

The weaving reflects the peoples of New Zealand Aotearoa who have “Multiple perspectives and interpretations but who remain a united people all under the same planet…..adapting to our own special environment, in our own special part of the world”. (Lindah Lepou)

• Project Management • Event Management • Human Resources ªª Graduate Diploma in Fashion (Design and Technology) ªª Graduate Diploma in Hotel Management ªª Graduate Certificate in Management ªª New Zealand Certificates in English Language Levels 3 and 4 ªª New Zealand Certificates in English Language Levels 3 and 4 (Offshore) ªª Diploma in Te Aupikitanga ki te Reo Kairangi ªª Certificate in Te Pūtaketanga o Te Reo ªª National Certificate in Agriculture ªª National Certificate in Recreation and Sport (Core Skills)

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Statement of Service Performance

Goal

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

Output

Output measure

Enhance the academic achievement and satisfaction of students.

1.2

Offer a range of programmes / staircasing opportunities / and flexible delivery modes which provide vocational and life skills and meet the needs of stakeholders.

1.3

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

1.4

2014 Target

2014 Actual

1.1

Improve course Percentage 77% completion rates for increase in course all students completion rates for all students

72%

79%*

1.1

Improve qualification completion rates for all students

Percentage increase 71% in qualification completion rates for all students

61%

73%*

1.1

Maintain student satisfaction levels

4.2 Achievement of student satisfaction levels of an average of 4.3 (best rating) in annual survey of programmes of 0.25 EFTS

≥4.3

4.7

1.1

Percentage of graduates gaining employment or progressing to further study

Percentage of 86% graduates measured by annual Graduate Destination Survey

≥ 84%

99%

1.1

All Level 1 to 3 programmes have literacy and numeracy embedded

Increase percentage 81% of Levels 1-3 programmes that meet the Tertiary Education Commission’s definition of ‘embedded’

90%

72%

1.1

Annual Programme Self-Assessment Analysis carried out on all programmes greater than 0.25 EFTS

Number of programmes greater than 0.25 EFTS analysed via Programme SelfAssessment

100%

1.2

Increase the number of programmes across Levels 1-4 which have specified pathways to higher qualifications

Percentage of programmes with specified pathways to higher qualifications at SIT and other institutes

92%

80%

95%

1.2

Proportion of programme portfolio endorsed by industry

Industry input is mandatory for all programmes during approval process

100%

Key Point of Focus 1.1

2013 Actual

Provide a range of student and staff support services.

Note: All performance indicators relate directly to SIT’s Investment Plan 2013-2015. * 2014 results are provisional until the April SDR has been processed. 2013 results have been finalised therefore differ slightly to previous years reported results.

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Output

Output measure

2013 Actual

2014 Target

2014 Actual

1.2

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

Number of new/revised programmes in STEM

1.2

Support the delivery of trades programmes to meet trades shortages in Christchurch

Priority Trades EFTS allocated by TEC 145

≥130

≥170

1.3

By promoting programmes that are relevant to students’ interests and industry employment requirements, increase the number of people under 25 enrolled and successfully completing qualifications

Percentage of Levels 1–3 proportion 16% of SAC eligible EFTS under 25

17%

12%*

26%

29%

25%*

Increase the number of Maori students enrolled and successfully completing qualifications by providing programmes that are delivered in a way that meet the learning needs and interests of Maori

Percentage of Levels 1–3 proportion 6% of SAC eligible EFTS identified as Maori

5%*

Percentage of Levels 4 and above proportion of SAC eligible EFTS identified as Maori

9%*

Increase the number of Pasifika students enrolled and successfully completing qualifications by providing programmes that are delivered in a way that meet the learning needs and interests of Maori

Percentage of Levels 1–3 proportion of SAC eligible EFTS identified as Pasifika

1%*

Percentage of Levels 4 and above proportion of SAC eligible EFTS identified as Pasifika

2%*

Student support availability Maintain or increase hourly maintained or increased, including availability on 2013 level of student learning support services Library, Learning Assistance unit,

>2012

≥2013

=2013

1.4

Implement Committed Learners findings

Number of staff involved in implementing Committed Learners findings

60%

80%

60%

1.4

Increase reflective teaching practice observations with fulltime tutorial staff

All full-time tutorial staff experience tutor observations once per year

100%

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

100%

1.3

1.4

Percentage of Levels 4 and above proportion of SAC eligible EFTS under 25

Support Services

* 2014 results are provisional until the April SDR has been processed. 2013 results have been finalised therefore differ slightly to previous years reported results. ANNUAL REPORT 2014

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Statement of Service Performance

Goal

Output

Output measure

2013 Actual

2014 Target

2014 Actual

2.1

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. Annual function cancelled due to passing of Kaumatua

2.2

Promote an understanding of Te Tiriti Waitangi to staff

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

100%

2.2

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

≥2012

≥2013

>2013

2.2

Maintain or increase Provision of Maori =2012 support for Maori Support Centre service student levels maintained or increased

≥ 2013

=2013

2.3

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

100%

2.3

Ensure that staff are Annual mandatory aware of conditions training provided of service, sexual and communication harassment and maintained through disability awareness EEO staff noticeboard, issues in-house newsletter and staff development plans

100%

2.3

Maintain employee On-going job database and application statistics record on-going job recorded application statistics

100%

2.4

Ensure that Campus Continue upgrade facilities and of campus facilities activities maintain a and provision of physically desirable appropriate student environment activities and services for learning and Maintain or increase teaching hours of availability of Activities Officer

$13m

$4.9m

$7m

=2012

≥2013

=2013

Foster our social and professional obligations to both stakeholders and staff

Key Point of Focus 2.1

Foster and enhance relationships with all external stakeholders.

2.2

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

2.3

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

2.4

Provide a physically desirable learning and working environment.

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

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ANNUAL REPORT 2014

- 49 SIT Students in Wendy Hill Cosmetics Student Bridal Makeup Competition

Statement of Service Performance

Goal

3.1

Operate a viable educationally directed business

Output

Output measure

2013 Actual

2014 Target

2014 Actual

Enhance business performance through the following output measures

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

3,482 (97.2%)

97-103%

3,582 (101%)

≥ 1.5%

0.79%

Achieve a surplus of 1.47% 1.5% of net assets

Key Point of Focus 3.1

Manage the organisation effectively and efficiently.

3.2

Demonstrate commitment to the employment and development of quality staff.

3.3

Achieve cash $6.5m reserves through a = 50% minimum 15% of of capex annual operating expenditure or 50% of annual capital expenditure, whichever is greater

Enhance revenue income from other activities.

3.2

Employ and develop quality staff

Maintain an 3.11% operating surplus of 3% of revenue

≥ 3%

1.57%

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

257.43%

≥ 100%

309.18%

Achieve at least 5% net cash flow from operations

13.14%

≥ 5%

11.71%

Staff employed have qualifications appropriate to the subject and level of the programme they are teaching

100%

New staff attract 80TTH abatement for training

100%

TDSU hours maintained or increased in mentoring and training of staff

=2012

≥2013

=2013

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$7.2m = 15% of opex

Output

Output measure

3.2

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

3.3

2013 Actual

2014 Target

2014 Actual

Research Reports 100% and Plans for each faculty which delivers degrees, submits reports and plans

100%

International student enrolments increase as a result of the institution providing pastoral and learning support leading to successful outcomes

Number of international student enrolments

551

850

664

Develop capability and interest within the community to provide international students with an environment attractive to international students

Percentage satisfaction of international student with the SIT extended community

84% Satisfaction on survey results

87% Satisfaction on survey results

100% Satisfaction on survey results

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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 2014 with the aim of meeting or exceeding the previous yearâ&#x20AC;&#x2122;s ratios.

2014

2013

Quick Ratio

Ratio of: Current Monetary Assets Current Monetary Liabilities

3.13

2.99

Equity/Debt Ratio

Ratio of: Total Equity Total Debt

13.88

11.87

Net Income Margin

Net Income Total Revenue

1.57%

3.11%

Total Asset Turnover

Total Revenue Total Assets

46.99%

43.42%

Return on Investment (Du Pont formula)

Net Income x Total 0.74% Revenue Total Revenue x Total Assets

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1.35%

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Do not include these initials at the bottom of each page

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Statement of Accounting Policies STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2014

Measurement Base

The measurement base adopted is that of historical cost modified by the revaluation of land and buildings and certain financial instruments.

Reporting Entity

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

Revenue

Revenue is measured at the fair value of consideration received or receivable.

The Institute and group consists of Southern Institute of Technology and its associate, 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.

Student Tuition Fees

Student tuition fees are recognised as revenue on a course percentage of completion basis. The percentage of completion is measured by reference to the days of the course completed as a proportion of the total course days.

The primary objective of the Institute and group is to provide tertiary education services for the benefit of the community rather than making a financial return. Accordingly, the Institute has designated itself and the group as public benefit entities for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

Government Grants

Government grants are recognised as income on entitlement. Some Government grants carry restrictions on the uses to which they can be applied.

Research Grants and Subsidies, Donations and Bequests

The financial statements of the Institute and group are for the year ended 31 December 2014. The financial statements were authorised for issue by the Council on 20th April 2015.

Research grants, subsidies, donations and bequests to the Institute are recognised as income when money is received, or entitlement to receive money is established, except where fulfilment of any restrictions attached to these monies is not probable.

Basis of Preparation

The financial statements of the Institute and group have been prepared in accordance with section 154 of the Crown Entities Act 2004 and section 220 of the Education Act 1989.

Other Revenue

Products held for sale are recognised when a product is sold to the customer. Sales are usually in cash or by credit card. The recorded revenue is the gross amount of the sale, including credit card fees payable for the transaction. Such fees are included in other expenses.

The financial statements include a statement of financial performance, a statement of comprehensive income, 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.

Where a physical asset is donated or vested in the Institute for nil or nominal consideration the fair value of the asset received is recognised as revenue. Assets vested in the Institute are recognised as revenue when control over the asset is obtained. Interest income is recognised using the effective interest method.

These financial statements have been prepared in accordance with NZ GAAP as appropriate for public benefit entities and they comply with NZ IFRS. The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the institute is New Zealand dollars and all values are rounded to the nearest ($ â&#x20AC;&#x2DC;000).

Advertising Costs

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

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Income Tax

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

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

Leases

After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the statement of financial performance. Loans and receivables include “cash and cash equivalents”, “term deposits” and “trade and other receivables” in the statement of financial position.

Financial Leases

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.

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.

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.

Operating Leases

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.

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 asset’s carrying amount and the present value of estimated future cash flows, discounted using the effective interest method.

Cash and Cash Equivalents

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.

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

Inventories

Inventories held for sale on a commercial basis are valued at the lower of cost and net realisable value. Consumable stocks are valued at the lower of cost and current replacement cost. Cost is measured using the FIFO method. 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 write-downs 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 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.

Restricted Assets - Crown owned land and buildings that are used by the Institute are included as part of the property, plant and equipment. These were first recognised on 31 December 1995 at deemed cost obtained by using the

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optimised depreciated replacement cost methodology. Although legal title has not been transferred, Southern Institute of Technology has assumed all the normal risks and rewards of ownership.

capitalised only when it is probably 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.

Land and buildings were re-valued as at 31 December 2013 by Rural Value, a QV business unit, Registered Valuers. Land and buildings are re-valued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years.

Depreciation

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

The net revaluation results are credited or debited to other comprehensive income 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 income but is recognised in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income. 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.

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

5 - 100 years

1 â&#x20AC;&#x201C; 20%

Motor Vehicles

3 - 5 years

20 - 33%

Furniture and Fittings

10 years

10%

Computers

3 years

33%

General Equipment

3 - 5 years

20 - 33%

Leases & Leasehold 3 - 5 years Term of Lease Improvements 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.

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.

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.

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.

Costs associated with maintaining computer software are recognised as an expense when incurred.

Additions

Costs associated with the development and maintenance of the Instituteâ&#x20AC;&#x2122;s website are recognised as an expense when incurred.

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.

Naming Rights

Naming Rights to Stadium Southland acquired during the 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.

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.

Television Commercial Development and Online Content

Subsequent Costs

TVCs and Online Content are capitalised when it is probable

Costs incurred subsequent to initial acquisition are

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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.

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.

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.

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: ªª 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

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.

ªª 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.

Impairment of Non-Financial Assets

Non-Financial Assets with a finite useful life arereviewed 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.

Goods and Services Tax (GST)

All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. 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.

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 income to the extent the impairment loss does not exceed the amount in the revaluation reserve in equity.

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Equity

using market based evidence, depreciated replacement cost is considered to be the most appropriate basis for determination of the fair value.

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.

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

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.

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 2013.

Property, Plant and Equipment Useful Lives and Residual Values At each balance date the Institute reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires the Institute to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Institute and expected disposal proceeds from the future sale of the asset.

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.

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:

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.

ªª physical inspection of assets;

Critical Accounting Estimates and Assumptions

ªª asset replacement programmes; ªª review of second hand market prices for similar assets; and

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:

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

The Council and Management must exercise their judgement when recognising grant income 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.

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.

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.

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

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to apply full public sector Public Benefit Entity Accounting Standards (PAS). These standards are being developed by the XRB and are mainly based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is for reporting periods beginning on or after 1 July 2014. This means the Institute expects to transition to the new standards in preparing its 31 December 2015 financial statements. As a general rule, the IPSAS maintain the accounting treatment of the IFRS. The Institute does not anticipate any material implications to arise from the implementation of the new Accounting Standards Framework.

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

Changes in Accounting Policies

There has been a change in accounting policies during the financial year. Course development costs relate to development of educational programmes and courses and are now 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. Course Development Costs are amortised on a straight line basis, from the commencement of the course, over their estimated useful lives. Also TVCs and Online Content are now 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.

Due to the change in the Accounting Standards Framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope.

Basis of Consolidation

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

Standards, Amendments, and Interpretations issued that are not yet effective and have not been early adopted

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.

Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and are relevant to the Institute and group, are: NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following three main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial assets (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus or deficit. The new standard is required to be adopted for the year ended 30 June 2016. However, as a new Accounting Standards Framework will apply before this date, there is no certainty when an equivalent standard to NZ IFRS 9 will be applied by public benefit entities.

Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated 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 Instituteâ&#x20AC;&#x2122;s interest in the identifiable assets acquired and liabilities assumed, the difference will be recognised immediately in the surplus or deficit. Investments in subsidiaries are carried at cost in the Instituteâ&#x20AC;&#x2122;s parent entity financial statements.

Associate

The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Institute is classified as a Tier 1 reporting entity and it will be required

The Instituteâ&#x20AC;&#x2122;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

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

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Financial Statements STATEMENT OF FINANCIAL PERFORMANCE Statement of Financial Performance For the year ended 31 December 2014

for the yea r ended 31 December 2014

STATEMENT OF FINANCIAL PERFORMANCE Southern Institute of Technology for the yea r ended 31 December 2014

Notes

Income Government Gra nts Student Tui ti on / Cours e Fees Income Revenue - Other Government Total Income Gra nts Student Tui ti on / Cours e Fees Revenue - Other Total Income Expenditure Pers onnel Cos ts Depreci a ti on a nd a morti s a ti on Expenditure Res tructuri ng Cos ts Pers onnel Cos ts expens es Other opera ti ng Depreci a ti on a ndon a morti s aatilon (Ga i ns ) / Los s es di s pos of a s s ets Res ng Cos ts Totaltructuri Expenditure Other opera ti ng expens es (Ga i ns ) / Los s es on di s pos a l of a s s ets Sha re of As s oci a tes 's s urpl us /(defi ci t) Total Expenditure Net surplus Sha re of As s oci a tes 's s urpl us /(defi ci t) Net surplus

Notes

1 2 3 1 2 3

4 10 11 4 5 10 11 5 26 26

Group

Actual Budget Actual Southern Institute 2014 2014 of Technology 2013 $'000 $'000 $'000 Actual Budget Actual 2014 2014 2013 $'000 $'000 $'000 32,891 30,163 32,121 5,585 6,959 7,143 8,898 8,623 7,497 32,891 30,163 32,121 48,748 45,929 45,203 5,585 6,959 7,143 8,898 8,623 7,497 48,748 45,929 45,203

Actual Group 2014 $'000 Actual 2014 $'000 32,891

Actual 2013 $'000 Actual 2013 $'000 32,121

6,959 8,851 32,891 48,701 6,959 8,851 48,701

5,585 7,452 32,121 45,158 5,585 7,452 45,158

20,882 4,943 62 20,882 22,131 4,943 14 62 48,032 22,131 14 50 48,032

20,048 4,456 150 20,048 20,613 4,456150 45,267 20,613 45,267

20,250 4,531 202 20,250 18,768 4,531 44 202 43,795 18,768 44 43,795

20,882 4,943 62 20,882 22,131 4,943 14 62 48,032 22,131 14 50 48,032

20,250 4,531 202 20,250 18,768 4,531 44 202 43,795 18,768 44 43,795

766 50

662 -

1,408 -

719 50

1,363 -

766

662

1,408

719

1,363

STATEMENT OF COMPREHENSIVE INCOME for the yea r ended 31 December 2014

STATEMENT OF COMPREHENSIVE INCOME Statement of Comprehensive Income For the year ended 31 December 2014

Southern Institute of Technology for the yea r ended 31 December 2014

Group

Actual Budget Actual Southern Institute 2014 2014 of Technology 2013 $'000 $'000 $'000 Actual Budget Actual 2014 2014 2013 766 662 1,408 $'000$'000$'000 3,537

Actual Group 2014 $'000 Actual 2014 719 $'000-

Actual 2013 $'000 Actual 2013 1,363 $'000 3,537

719 719 719

4,900 1,363 3,537 4,900

Notes

Net surplus Gains on property revaluations

Notes

766 766 Expl a na ti ons of ma jor va ri a nces a ga i ns t budget a re provi ded i n note 24. 766 Total comprehensive income Total comprehensive income

Net surplus Gains on property revaluations

The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements . Expl a na ti ons of ma jor va ri a nces a ga i ns t budget a re provi ded i n note 24. The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements .

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662 662 662

4,945 1,408 3,537 4,945

Statement of Changes inOFEquity STATEMENT CHANGES IN EQUITY For the year ended 31 December 2014

for the yea r ended 31 December 2014 Southern Institute of Technology

Notes Ba l a nce a t 1 Ja nua ry Tota l comprehens i ve i ncome Net Tra ns fer to res tri cted res erves Ca pi ta l Contri buti ons Balance at 31 December

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

96,012 766 96,778

91,747 662 92,409

90,984 4,945 (2) 85 96,012

96,133 719 96,852

91,150 4,900 (2) 85 96,133

The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements .

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STATEMENT OF FINANCIAL POSITION

STATEMENT OF FINANCIAL POSITION Statement of Financial Position a s a t 31 December 2014

a s a t 31 December 2014 Southern Institute of Technology

As at 31 December 2014

Southern Institute of Technology Actual Budget Actual 2014 2014 2013 Actual Budget Actual $'000 $'000 $'000 2014 2014 2013 $'000 $'000 $'000

Group Actual Actual 2014 2013 Actual Actual $'000 $'000 2014 2013 $'000 $'000

6 7 6 8 7 9 8 9

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

265 1,800 265 1,000 1,800 14,500 1,000 17,565 14,500 17,565

3,622 2,213 3,622 1,808 2,213 17,830 1,808 25,473 17,830 25,473

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

3,634 2,222 3,634 1,808 2,222 17,930 1,808 25,594 17,930 25,594

9 26 9 10 26 10 10 11 10 11

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

53 53 81,241 300 81,241 81,594 300 99,159 81,594 99,159

53 53 375 77,431 375 769 77,431 78,628 769 104,101 78,628 104,101

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

53 53 375 77,431 375 769 77,431 78,628 769 104,222 78,628 104,222

12 13 12 13

4,855 1,920 4,855 6,775 1,920 6,775

5,000 1,700 5,000 6,700 1,700 6,700

6,150 1,764 6,150 7,914 1,764 7,914

4,855 1,920 4,855 6,775 1,920 6,775

6,150 1,764 6,150 7,914 1,764 7,914

199 199 199 6,974 199 96,778 6,974 96,778

50 50 50 6,750 50 92,409 6,750 92,409

175 175 175 8,089 175 96,012 8,089 96,012

199 199 199 6,974 199 96,852 6,974 96,852

175 175 175 8,089 175 96,133 8,089 96,133

80,971 15,807 80,971 96,778 15,807 96,778

80,139 12,270 80,139 92,409 12,270 92,409

80,205 15,807 80,205 96,012 15,807 96,012

81,045 15,807 81,045 96,852 15,807 96,852

80,326 15,807 80,326 96,133 15,807 96,133

Notes

Assets Current Assets Assets Ca s h a nd ca s h equi va l ents Current Assets Tra de a nd other recei va bl es Ca s h a nd ca s h equi va l ents Inventori es Tra de a nd other recei va bl es Other Fi na nci a l As s ets Inventori es Total Current Assets Other Fi na nci a l As s ets Total Current Assets Non-Current Assets Other Fi na nci a l As s ets Non-Current Assets Inves tment i n As s oci a te Other Fi na nci a l As s ets As s ets hel d for Sa l e Inves tment i n As s oci a te Property, pl a nt a nd equi pment As s ets hel d for Sa l e Inta ngi bl e As s ets Property, pl a nt a nd equi pment Total Non-Current Assets Inta ngi bl e As s ets Total Assets Total Non-Current Assets Total Assets

Notes

Liabilities

Current Liabilities Liabilities Tra de a nd other pa ya bl es Current Liabilities Empl oyee Benefi t Li a bi l i ti es Tra de a nd other pa ya bl es Total Current Liabilities Empl oyee Benefi t Li a bi l i ti es Total Current Liabilities Non-Current Liabilities Empl oyee Enti tl ements Non-Current Liabilities Tota l Non-Current Li a bi l i ti es Empl oyee Enti tl ements Total Liabilities Tota l Non-Current Li a bi l i ti es Net Assets Total Liabilities Net Assets

Group

13 13

Equity Reta i ned Ea rni ngs Equity Property Reva l ua ti on Res erve Reta i ned Ea rni ngs Total Equity Property Reva l ua ti on Res erve Total Equity

14 14 14 14

The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements . The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements .

Sarah Brown

CHAIRPERSON OF COUNCIL

20th April 2015 ANNUAL REPORT 2014

- 65 -

Penny Simmonds CHIEF EXECUTIVE

Statement of Cash Flows For the year ended 31 December 2014

STATEMENT OF CASH FLOWS

for the yea r ended 31 December 2014 Southern Institute of Technology Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

33,013 882 15,240 (23,583) (20,882) 16 4,686

30,454 800 14,975 (21,009) (20,362) 4,858

32,776 1,100 10,988 (18,144) (20,249) (141) 6,330

33,013 886 15,190 (23,583) (20,882) 16 4,640

32,776 1,106 10,938 (18,144) (20,249) (141) 6,286

39 10,298 (306) (7,246) 2,785

(7,616) (7,616)

8,068 (13,250) (5,182)

39 10,338 (306) (7,246) 2,825

8,122 (13,250) (5,128)

1 1

84 84

1 1

84 84

7,472

(2,758)

1,232

7,466

1,242

3,622

3,023

2,390

3,634

2,392

11,094

265

3,622

11,100

3,634

Note Cash flows from operating activities Recei pts from government gra nts Interes t Recei ved Recei pts from revenue other Pa yments to s uppl i ers Pa yments to empl oyees Goods a nd Servi ces Ta x (net) Net cash from operating activities Cash flows from investing activities Proceeds from s a l e of property, pl a nt a nd equi pment Net Proceeds /(Acqui s ti ons ) fi na nci a l a s s ets Inves tment i n As s oci a te Purcha s e of Fi xed As s ets Cash flows from investing activities

Cash flows from financing activities Proceeds from borrowi ngs Equi ty Contri buti ons Net cash from financing activities

Net (decrease) / increase in cash and cash equivalents Ca s h a nd ca s h equi va l ents a t the begi nni ng of the yea r Cash and cash equivalents at the end of the year

Group

Actual 2014 $'000

Actual 2013 $'000

The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements . The GST (net) component of opera ti ng a cti vi ti es refl ects the net GST pa i d to a nd recei ved from the Inl a nd Revenue Depa rtment. The GST (net) component ha s been pres ented on a net ba s i s , a s the gros s a mounts do not provi de mea ni ngful i nforma ti on for fi na nci a l s ta tement purpos es a nd to be cons i s tent wi th the pres enta ti on ba s i s of the other pri ma ry fi na nci a l s ta tements .

ANNUAL REPORT 2014

- 66 -

Reconciliation of the Net Surplus on Operations with the Net Cash Flows Operating Activities RECONCILIATION OF THE NET SURPLUSFrom ON OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING For the year ended 31 December 2014

ACTIVITIES

for the yea r ended 31 December 2014 Group

Southern Institute of Technology Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

766

662

1,408

719

1,363

(50) 4,943 24

4,456 -

4,531 127

(50) 4,943 24

4,531 127

Surplus / (deficit) Add / (less) non-cash items: Sha re of a s s oci a te s urpl us /(defi ci t) Depreci a ti on a nd a morti s a ti on Movement i n Empl oyee Enti tl ements Add / (less) items classified as investing or financing activities: Los s on di s pos a l of Inves tment (Ga i ns ) / l os s es on di s pos a l of property, pl a nt a nd equi pment

Actual 2014 $'000

Actual 2013 $'000

(12)

Add / (less) movements in working capital items: (Inc) / Dec Accounts recei va bl e (Inc) / Dec Prepa yments (Inc) / Dec Inventori es Inc / (Dec) Accounts pa ya bl e Inc / (Dec) Income i n Adva nce Inc / (Dec) Accrued Expens es

264 (660) 484 18 122 (1,239)

390 (450) (200) -

(993) 657 (739) (406) 656 1,045

264 (659) 484 18 122 (1,239)

(993) 657 (739) (405) 656 1,045

Net cash inflow / (outflow) from operating activities

4,686

4,858

6,330

The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements .

ANNUAL REPORT 2014

- 67 -

4,640

6,286

STATEMENT OF COMMITMENTS Statement of Commitments As at 31 December 2014

a s a t 31 December 2014

Southern Institute of Technology

Capital commitments La nd & Bui l di ngs Equi pment Hos pi ta l i ty Redevel opment Operating Lease commitments Non cancellable operating lease as lessee: Property Not l a ter tha n one yea r La ter tha n one yea r a nd not l a ter tha n fi ve yea rs La ter tha n fi ve yea rs Equipment Not l a ter tha n one yea r La ter tha n one yea r a nd not l a ter tha n fi ve yea rs La ter tha n fi ve yea rs Services Not l a ter tha n one yea r

Group

Actual 2014 $'000

Actual 2013 $'000

1,428 1,428

2,191 2,191

1,428 1,428

2,191 2,191

276 625

386 902

276 625

386 902

901

1,288

901

1,288

Actual 2014 $'000

Actual 2013 $'000

882

1,438

882

1,438

La ter tha n one yea r a nd not l a ter tha n fi ve yea rs

1,397

1,673

1,397

1,673

La ter tha n fi ve yea rs

2,279

3,111

2,279

3,111

80 -

81 81

80 -

81 81

162

4,688

6,752

4,688

6,752

Franchise Course Fees Not l a ter tha n one yea r La ter tha n one yea r a nd not l a ter tha n fi ve yea rs La ter tha n fi ve yea rs

TOTAL COMMITMENTS

Equi pment l ea s es ca n be renewed a t the Ins ti tute's opti on, wi th rents s et by reference to current ma rket ra tes for i tems of equi va l ent a ge a nd condi ti on. The Ins ti tute does not ha ve the opti on to purcha s e the a s s et a t the end of the l ea s e term. There a re no res tri cti ons pl a ced on the Ins ti tute by a ny of the l ea s i ng a rra ngements . The a ccompa nyi ng notes form pa rt of thes e fi na nci a l s ta tements .

ANNUAL REPORT 2014

- 68 -

STATEMENT OF CONTINGENCIES

Statement of Contingencies

for the year ended 31 December 2014

As at 31 December 2014

Contingent Liabilities There are no contingent liabilities as at 31 December 2014 (Last Year $35k).

The accompanying notes form part of these financial statements.

ANNUAL REPORT 2014

- 69 -

NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements

for the yea r ended 31 December 2014

For the year ended 31 December 2014

1 Government Grants Thi s i ncl udes moni es recei ved from Government by wa y of a n Opera ti ona l Bul k Gra nt, whi ch i s ba s ed on equi va l ent ful l -ti me s tudent (EFTS) l evel s a nd the fundi ng ca tegory l evel s of thes e EFTS, a nd s peci fi c purpos e â&#x20AC;&#x201C; rel a ted gra nts . An a na l ys i s of Government gra nt fundi ng i s a s fol l ows : Southern Institute of Technology

Opera ti ona l bul k gra nt Non-EFTS fundi ng Chi l dca re Centre gra nt Qua l i ty Rei nves tment Progra mme Di s a bi l i ty gra nt Ma ori & Pa s i fi ka Gra nt

Other

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

30,172 1,770 810 100 39 32,891

27271 1863 800 0 100 50 79

29,618 1,575 775 100 53 32,121

30,172 1,770 810 0 100 39 32,891

29,618 1,575 775 0 100 53 32,121

30,163

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

Student tui ti on a nd cours e fees

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

6,959

7,143

5,585

6,959

5,585

3 Revenue - Other Southern Institute of Technology

Accommoda ti on Cons ul ti ng Income Cours e Ma teri a l Chi l dca re Fees Sundry i ncome

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

708 ANNUAL REPORT 201432 - 70 - 5,802 299

707 5,327 250

556 57 4,465 287

1,175

1,539

1,031

708 32 5,802 299 1,125

556 57 4,465 287 981

32,891

Other

32,121

79 30,163

32,891

32,121

Student tui ti on a nd cours e fees

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

6,959

7,143

5,585

6,959

5,585

3 Revenue - Other Southern Institute of Technology

Accommoda ti on Cons ul ti ng Income Cours e Ma teri a l Chi l dca re Fees Sundry i ncome Interes t i ncome

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

708 32 5,802 299

707 5,327 250

556 57 4,465 287

1,175

1,539

708 32 5,802 299 1,125 885 8,851

556 57 4,465 287 981 1,106 7,452

882 800 NOTES TO THE FINANCIAL STATEMENTS 8,898 8,623 for the yea r ended 31 December 2014

1,031 1,101 7,497

4 Personnel Costs Southern Institute of Technology

Sa l a ri es a nd Wa ges Empl oyer Contri buti ons to defi ned contri buti on pl a ns Increa s e / (decrea s e) i n empl oyee enti tl ements Other Tota l Pers onnel Cos ts

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

19,606

18,981 348

18,965

19,606

18,965

344 216 725 20,250

412 180 684 20,882

344 216 725 20,250

412 180 684 20,882

719 20,048

5 Other operating expenses Southern Institute of Technology

Audi t fees for the fi na nci a l s ta tement a udi t - a nnua l fee Lea s i ng of equi pment a nd s ervi ces Adverti s i ng a nd publ i ci ty Cons ul ta ncy Repa i rs a nd Ma i ntena nce Inventori es Cons umed Ba d Debts Dona ti ons a nd Koha Other Opera ti ng Expens es Tota l - other opera ti ng expens es

6 Cash and cash equivalents

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

90 515 2,355 779 265 114 81

100

87 509 2,105 963 385 146 57

90 515 2,355 779 265 114 81 1 17,931 22,131

87 509 2,105 963 385 146 57

388 1,612 1,127 366 -

17,931 22,131

17,019 20,613

14,515 18,768

ANNUAL REPORT 2014

- 71 -

Southern Institute of Technology

Group

14,515 18,768

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

90 515 2,355 779 265 114 81

100

87 509 2,105 963 385 146 57

90 515 2,355 779 265 114 81 1 17,931 22,131

87 509 2,105 963 385 146 57

388 1,612 1,127 366 -

17,931 22,131

17,019 20,613

14,515 18,768

6 Cash and cash equivalents Southern Institute of Technology

Group

Actual 2014 $'000 1,500 6

Budget 2014 $'000 265 -

Actual 2013 $'000 496 7

Actual 2014 $'000 1,506 6

Actual 2013 $'000 508 7

Call accounts BNZ Ca l l Account ANZ Ca l l Account ASB Ca l l Account Wes tpa c Ca l l Account Ra boba nk Ca l l Account

442 334 14 16 1,762

2327 246 14 16 516

442 334 14 16 1,762

2,327 246 14 16 516

Term Deposit accounts ASB Ba nk of New Zea l a nd Southl a nd Bui l di ng Soci ety Wes tpa c

1,500 2,520 1,500 1,500

11,094

265

3,622

11,100

3,634

BNZ Cheque Account Wes tpa c Cheque Account Ca s h i n Ha nd

The ca rryi ng va l ue of s hort-term depos i ts wi th ma turi ty da tes of three months or l es s a pproxi ma tes thei r fa i r va l ue. Refer to note 9 for wei ghted a vera ge effecti ve i nteres t ra te for ca s h a nd ca s h equi va l ents .

7 Trade and other receivables Southern Institute of Technology

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

Tra de Debtors

1,705

1,260

864 2,569

540 1,800

1,248 965 2,213

1,712 864 2,576

1,257

Prepa yments

965 2,222

Not pa s t due Pa s t due 1-30 da ys Pa s t due 31-60 da ys Pa s t due 61-90 da ys Pa s t due >91 da ys Tota l due

1,220 224 261 1,705

985 21 233 9 1,248

1,220 224 261 1,705

995 21 233 9 1,258

The ca rryi ng va l ue of debtors a nd other recei va bl es a pproxi ma tes thei r fa i r va l ue. As of 31 December 2014 a nd 31 December 2013 a l l overdue recei va bl es ha ve been a s s es s ed for i mpa i rment a nd a ppropri a tel y wri tten off. There i s no provi s i on for i mpa i rment on the rema i ni ng debtors .

8 Inventories

ANNUAL REPORT 2014

- 72 -

Southern Institute of Technology

Group

1,800 2,213 2,576 2,222 2,569 965 864 540 864 965 1,800 2,213 2,576 2,222 2,569 Not pa s t due Pa s tpa due 1-30 da ys 1,2209851,220995Not s t due Pa s t due 31-60 daysys 224 21 224 21 1-30 da 1,220 985 1,220 995 Pa s t due 61-90 261 233 261 233 31-60 da ys 224 21 224 21 Pa s t due >91 dada ysys 9 9 61-90 261233 261233 Tota due>91 da ys 1,7051,248 1,7051,258 Pa s t ldue 9 9 Tota l due 1,705 1,248 1,705 1,258 The ca rryi ng va l ue of debtors a nd other recei va bl es a pproxi ma tes thei r fa i r va l ue. The ca rryi ng va l ue of debtors a nd other recei va bl es a pproxi ma tes thei r fa i r va l ue. As of 31 December 2014 a nd 31 December 2013 a l l overdue recei va bl es ha ve been a s s es s ed for i mpa i rment a nd a ppropri a tel y wri tten There i2014 s no provi s i on for i mpa2013 i rment the rema i niva ngbldebtors As of 31off. December a nd 31 December a l l on overdue recei es ha ve. been a s s es s ed for i mpa i rment a nd a ppropri a tel y wri tten off. There i s no provi s i on for i mpa i rment on the rema i ni ng debtors . Prepa yments

8 Inventories 8 Inventories

Group Southern Institute of Technology Group Southern Institute of Technology Actual Budget Actual Actual 2014 2014 2013 2014 Actual Budget Actual Actual $'000 $'000 $'000 $'000 2014 2014 2013 2014 $'000 $'000 $'000 $'000 Inventory hel d for the us e i n the provi s i on of goods a nd s ervi ces 415 300 359 415 Publ i ca ti ons d for a le i n the provi s i on of goods a nd s ervi ces 191 200 254 191 Inventory hel hel d for the sus 415 300 359 415 Informa on Technol 2 50 3 2 Publ i ca titions hel d forogy s a lInventory e 191 200 254 191 Ful l Si zetiWorks 716 450 1192 716 Informa on Technol ogy Inventory 2 50 3 2 1,324 1,000 1,808 1,324 Ful l Si ze Works 716 450 1192 716 Total 1,324 1,000 1,808 1,324 Total The ca rryi ng a mount of i nventori es i s mea s ured a t the l ower of cos t or net rea l i s a bl e va l ue/current repl a cement cos t. NOTES FINANCIAL The ca rryi ng a mount of i nventori es i s mea s ured a tTO theTHE l ower of cos t or netSTATEMENTS rea l i s a bl e va l ue/current repl a cement cos t. No i nventori es a re pl edged a s s ecuri ti es for l i afor bi l ithe ti esyea . r ended 31 December 2014 No i nventori es a re pl edged a s s ecuri ti es for l i a bi l i ti es .

Actual 2013 Actual $'000 2013 $'000 359 254 359 3 254 1192 3 1,808 1192 1,808

9 Other Financial Assets Southern Institute of Technology

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

Current Portion Loans and receivables Short-term depos i ts wi th ma turi ti es grea ter tha n 3 but l es s tha n 12 months ANZ Ba nki ng Group (New Zea l a nd) Li mi ted 1,055 ASB Ba nk of New Zea l a nd 1,000 Ki wi ba nk 2,000 Ra boba nk 2,000 Southl a nd Bui l di ng Soci ety Wes tpa c 1,500 7,555 Tota l

2,000 2,000 3,000 2,000 1,500 1,500 2,500 14,500

4,055 1,500 3,750 1,500 4,025 3,000 17,830

1,055 1,061 2,000 2,000 1,500 7,616

4,055 1,500 3,850 1,500 4,025 3,000 17,930

3 50 53

4 4

3 50 53

3,119 2.73% 17,830 170 4.03%

2,568 3.17% 14,636 104 4.31%

3,119 2.73% 17,930 170 4.03%

Non-current portion Fair value through profit and loss - available for sale Foods tuffs (South Is l a nd) Li mi ted Pol ytechni cs Interna ti ona l New Zea l a nd Li mi ted

4 4

Total There were no i mpa i rment provi s i ons for other fi na nci a l a s s ets . Maturity analysis and effective interest rates The ma turi ty da tes for a l l other fi na nci a l a s s ets a re a s fol l ows : Ca l l a ccounts ma turi ng i n three months or l es s Avera ge Ma turi ty Da ys : Wei ghted Avera ge effecti ve i nteres t ra te: Short-term depos i ts wi th ma turi ti es of 1 - 12 months Avera ge Ma turi ty Da ys : Wei ghted Avera ge effecti ve i nteres t ra te:

2,568 3.17% 14,575 104 4.31%

ANNUAL REPORT 2014

- 73 -

ANNUAL REPORT 2014

- 74 $000's

$000's

(6) (192) (2,563) (7,351) (128) (556) (10,796)

Accumulated depreciation charges 1/01/2014

Cost/ valuation 1/01/2014

67,822 396 5,043 9,395 652 664 4,255 375 88,602

(14,162)

(3,227) (178) (2,886) (7,362) (509) -

80,335

62,415 444 4,540 9,529 491 605 2,311 -

$000's

67,816 204 2,480 2,044 524 108 4,255 375 77,806

$000's

Carrying amount 1/01/2014

66,173

59,188 266 1,654 2,167 491 96 2,311 -

$000's

Carrying amount 1/01/2013

6,546 1,552 1,635 170 24 (3,230) (225) 6,472

$000's

Current year additions/ transfers

13,458

7,893 2,135 871 167 73 1,944 375

$000's

Current year additions/ transfers

(5) (24) (1) (30)

Current year disposals (net of accumulated depreciation) $000's

(1,017)

(972) (15) (28) (2) -

Current year disposals (net of accumulated depreciation) $000's

(5) (5)

$000's

Current year impairment charges

(6)

(6) -

$000's

Current year impairment charges

(2,314) (47) (1,149) (895) (133) (51) (4,589)

$000's

Current year depreciation

(4,339)

(1,830) (47) (1,281) (992) (128) (61) -

$000's

Current year depreciation

$000's

Revaluation surplus

3,537

3,537 -

$000's

Revaluation surplus

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

Land and Buildings Leasehold Computers Furniture and Equipment Library Books Vehicles Works in Progress Assets held for Sale Total Southern Institute of Technology

Southern Institute of Technology

Total Southern Institute of Technology

Land and Buildings Leasehold Computers Furniture and Equipment Library Books Vehicles Works in Progress Assets held for Sale

Southern Institute of Technology

Accumulated depreciation charges 1/01/2013

Cost/ valuation 1/01/2013

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

10 Property, Plant and Equipment

for the year ended 31 December 2014

NOTES TO THE FINANCIAL STATEMENTS

74,368 396 5,636 10,091 817 644 1,025 150 93,127

$000's

Cost/ revaluation 31/12/2014

88,602

67,822 396 5,043 9,395 652 664 4,255 375

$000's

Cost/ revaluation 31/12/2013

(2,320) (239) (2,758) (7,331) (261) (564) (13,473)

Accumulated depreciation and impairment charges 31/12/2014 $000's

(10,796)

(6) (192) (2,563) (7,351) (128) (556) -

Accumulated depreciation and impairment charges 31/12/2013 $000's

72,048 157 2,878 2,760 556 80 1,025 150 79,654

Carrying amount 31/12/2014

77,806

67,816 204 2,480 2,044 524 108 4,255 375

Carrying amount 31/12/2013

ANNUAL REPORT 2014

- 75 -

(3,227) (178) (2,886) (7,362) (509) (14,162) Accumulated depreciation charges 1/01/2014 $000's

62,415 444 4,540 9,529 491 605 2,311 80,335

Cost/ valuation 1/01/2014

$000's

Carrying amount 1/01/2014

59,188 266 1,654 2,167 491 96 2,311 66,173

$000's

Carrying amount 1/01/2013

$000's

Current year additions/ transfers

7,893 2,135 871 167 73 1,944 375 13,458

$000's

Current year additions/ transfers

Current year disposals (net of accumulated depreciation) $000's

(972) (15) (28) (2) (1,017)

Current year disposals (net of accumulated depreciation) $000's

$000's

Current year impairment charges

(6) (6)

$000's

Current year impairment charges

$000's

Current year depreciation

(1,830) (47) (1,281) (992) (128) (61) (4,339)

$000's

Current year depreciation

$000's

Revaluation surplus

3,537 3,537

$000's

Revaluation surplus

Land and Buildings 67,822 (6) 67,816 6,546 (2,314) Leasehold 396 (192) 204 (47) Computers 5,043 (2,563) 2,480 1,552 (5) (1,149) (895) Furniture and Equipment 9,395 (7,351) 2,044 1,635 (24) (133) Library Books 652 (128) 524 170 (5) Vehicles 664 (556) 108 24 (1) (51) Works in Progress 4,255 4,255 (3,230) 375 (225) Assets held for Sale 375 88,602 6,472 Total Southern Institute of Technology (10,796) 77,806 (30) (5) (4,589) 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. Assets held for Sale comprise single storey house type units, previously used as classrooms, but which have become surplus to requirments. These are held at the lower of cost and net realisable value.

Group

Land and Buildings Leasehold Computers Furniture and Equipment Library Books Vehicles Works in Progress Assets held for Sale Total Southern Institute of Technology

Group

Accumulated depreciation charges 1/01/2013

Cost/ valuation 1/01/2013

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

10 Property, Plant and Equipment (continued)

for the year ended 31 December 2014

NOTES TO THE FINANCIAL STATEMENTS

74,368 396 5,636 10,091 817 644 1,025 150 93,127

$000's

Cost/ revaluation 31/12/2014

67,822 396 5,043 9,395 652 664 4,255 375 88,602

$000's

Cost/ revaluation 31/12/2013

(2,320) (239) (2,758) (7,331) (261) (564) (13,473)

Accumulated depreciation and impairment charges 31/12/2014 $000's

(6) (192) (2,563) (7,351) (128) (556) (10,796)

Accumulated depreciation and impairment charges 31/12/2013 $000's

72,048 157 2,878 2,760 556 80 1,025 150 79,654

Carrying amount 31/12/2014

67,816 204 2,480 2,044 524 108 4,255 375 77,806

Carrying amount 31/12/2013

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

11 Intangible Assets Southern Institute of Technology

Group

Cost Ba l a nce a t 1 Ja nua ry 2013 Addi ti ons / Tra ns fers Di s pos a l s Ba l a nce a t 31 December 2013

$'000 970 771

1,741

Ba l a nce a t 1 Ja nua ry 2014 Addi ti ons Tra ns fers Di s pos a l s Ba l a nce a t 31 December 2014

1741 693 281 2,715

Accumulated Amortisation Ba l a nce a t 1 Ja nua ry 2013 Amorti s a ti on Expens e Di s pos a l s Ba l a nce a t 31 December 2013

$'000 780 192 972

Ba l a nce a t 1 Ja nua ry 2014 Amorti s a ti on Expens e Tra ns fers Di s pos a l s Ba l a nce a t 31 December 2014

972 354 193 1,519

Carrying Amounts At 1 Ja nua ry 2013 At 31/12/2013 a nd 1/1/2014 At 31 December 2014

$'000 190 769 1,196

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 2014

- 76 -

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

12 Trade and other payables Southern Institute of Technology

Tra de Pa ya bl es Income i n a dva nce - Student fees i n a dva nce - Ha l l s of Res i dence Bonds - El derhos tel fees i n a dva nce - Other fees i n a dva nce Accrued expens es Contra ct Retenti ons GST pa ya bl e

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

297

2,500

295

297

295

3,082 26 7 352

1,980 15 5 500

2,693 15 6 631

3,082 26 7 352

2,693 15 6 631

942 100 49 4,855

5,000

2,235 202 73 6,150

942 100 49 4,855

2,235 202 73 6,150

Credi tors a nd other pa ya bl es a re non i nteres t bea ri ng a nd norma l l y s ettl ed on 20 da y terms a nd the a bove a mounts a pproxi ma te thei r fa i r va l ue.

13 Employee Entitlements Southern Institute of Technology

Pa yrol l Accrued Annua l Lea ve Si ck Lea ve Long Servi ce Lea ve Repres ented by: Current Porti on Non-Current Porti on Total Employee Entitlements

Group

Actual 2014 $'000

Budget 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

684 1,177 59 199 2,119

600 1,100 50 1,750

566 1,126 72 175 1,939

684 1,177 59 199 2,119

566 1,126 72 175 1,939

1,920 199 2,119

1,700 50 1,750

1,764 175 1,939

1,920 199

1,764 175 1,939

2,119

The pres ent va l ue of the l ong s ervi ce obl i ga ti on depends on a number of fa ctors tha t a re determi ned on a n a ctua ri a l ba s i s us i ng a number of a s s umpti ons . Two key a s s umpti ons i n ca l cul a ti ng thi s l i a bi l i ty i ncl ude the di s count ra te a nd the s a l a ry i nfl a ti on fa ctor. A movement of +/- 1% on ei ther of thes e fa ctors produces a non ma teri a l i mpa ct on the pres ent va l ue of l ong s ervi ce obl i ga ti ons .

ANNUAL REPORT 2014

- 77 -

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

14 Equity

NOTES TO THE FINANCIAL STATEMENTS

Southern Institute of Technology for the yea r ended 31 December 2014

Group

Retained Earnings

Actual Budget Actual 2014 2014 2013 Southern Institute of Technology $'000 $'000 $'000

Actual 2014 Group $'000

Actual 2013 $'000

As a t 1 Ja nua ry Net s urpl us Retained Earnings Ca pi ta l Contri buti on Tra ns fers to res tri cted res erves As a t 1 Ja nua ry Tra ns fers from res tri cted Net s urpl us As at 31 December Ca pi ta l Contri buti on Tra ns fers to res tri cted res erves Tra ns fers from res tri cted Property Revaluation Reserve As at 31 December As a t 1 Ja nua ry Property reva l ua ti on ga i ns As at 31 December Property Revaluation Reserve

Actual 80,205 2014 766 $'000 80,205 766 80,971 80,971 15,807 15,807

Budget 79,477 2014 662 $'000 79,477 662 80,139 80,139 12,270 12,270

Actual 78,714 2013 1,408 $'000 85 (2) 78,714 1,408 80,205 85 (2) 80,205 12,270 3,537 15,807

Actual 80,326 2014 719 $'000 80,326 719 81,045 81,045 15,807 15,807

Actual 78,880 2013 1,363 $'000 85 (2) 78,880 1,363 80,326 85 (2) 80,326 12,270 3,537 15,807

As a t 1 Ja nua ry Total Equity Property reva l ua ti on ga i ns As at 31 December

15,807 96,77815,807

12,270 92,40912,270

12,270 96,012 3,537 15,807

15,807 96,85215,807

12,270 96,133 3,537 15,807

Total Equity

96,778 Actual 2014 $'000

92,409 Budget 2014 $'000

96,012 Actual 2013 $'000

96,852 Actual 2014 $'000

96,133 Actual 2013 $'000

14 Equity

Restricted reserves consist of:

Actual Actual Budget Actual Actual Wha re Awhi na Fund 1 1 1 1 1 2014 2014 2013 2014 2013 Progra mme Funds 30 28 28 30 28 Restricted reserves consist of: $'000 $'000 $'000 $'000 $'000 87 Cl ea rwa ter Es ta te Trus t 83 83 87 83 Wa rren Forbes Awa rd 4 4 4 4 4 Wha re Awhi na Fund 1 1 1 1 1 Pa tri ci a O'Connor Awa rd 4 4 4 4 4 Progra mme Funds 30 28 28 30 28 7 8 8 7 8 Fl etcher Cha l l enge Awa rd Cl ea rwa ter Es ta te Trus t 87 83 83 87 83 133 128 128 133 128 Wa rren Forbes Awa rd 4 4 4 4 4 Pa tri ci a O'Connor Awa rd 4 4 4 4 4 Res tri cted Res ervesAwa a re rd hel d i n trus t for s tudent a cti vi ti es a nd a wa rds a nd a re 7 i ncl uded i n8 the ba l a nce 8 of reta i ned ea rni 7 ngs . 8 Fl etcher Cha l l enge 133 128 128 133 128 Res tri cted Res erves a re hel d i n trus t for s tudent a cti vi ti es a nd a wa rds a nd a re i ncl uded i n the ba l a nce of reta i ned ea rni ngs .

ANNUAL REPORT 2014

- 78 -

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014 15 Councillorsâ&#x20AC;&#x2122; Fees Southern Institute of Technology and Group Actual 2014 10,000 28,000 10,000 18,000 10,000 10,000 10,000 96,000

Addi e, D Brown, S Cooney, G Gra nt, J Ha rdi ng, ER Heena n, P Ja cks on Ros e, D Skerrett, M Wa rd, T Tota l Counci l l ors â&#x20AC;&#x2122; Fees

Budget 2014

Actual 2013

100,000

5,000 28,000 5,000 3,333 4,167 18,000 5,000 5,000 10,000 10,000 93,500

16 Related party transactions and key management personnel The Institute is a wholly owned entity of the Crown. The Government influences the roles of the Institute as well as being its major source of revenue. During the year the Institute purchased the following items from firms in which Council members are associated with. The following transactions were carried out and balances were outstanding with related parties: Actual 2014 $

Actual 2013 $

Services provided by the Institute

Services provided to the Institute

Accounts Payable to the Institute

Accounts Receivable from the Institute

674

536

Accounts Payable to the Institute

Accounts Receivable from the Institute

DriveSafe Southland - M Grumball (Director)

Sub Contract Academic Delivery

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

Facilities hire - Marae

ANNUAL REPORT 2014

- 79 -

16 Related party transactions and key management personnel

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

Actual 2014 $

Actual 2013 $

4,725 11,161 -

22,470 14,830 -

1,302 -

913 243

Hockey Southland - P Simmonds (Chair) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute

Sponsorship Southern Education Charitable Trust5,173 Services provided by the Institute

50,173

50,000

Services provided to the Institute

Accounts Payable to the Institute

Accounts Receivable from the Institute

Activity and Employment Services Southern Lakes English College Limited - B Guha (Director) & S Brown (Director) Services provided by the Institute

Services provided to the Institute

248,056

Accounts Payable to the Institute

Accounts Receivable from the Institute

43,153

Provision of English Language Courses Tim Ward a Council Member is the managing partner at BDO who are auditors to Southern Lakes English College Gen-I - G Cooney (Director/Shareholder) Services provided by the Institute Services provided to the Institute

Accounts Payable to the Institute Accounts Receivable from the Institute Information Technology Support Services

611 2,300,121 400 125,713

Preston Russell Law - G Cooney (Independent Chair) Services provided by the Institute

Services provided to the Institute Accounts Payable to the Institute

7,058

Accounts Receivable from the Institute

Legal Services CGL t/a Fiona Tyrie Consulting - B Guha (Director) Services provided by the Institute

Services provided to the Institute

7,359

Accounts Payable to the Institute

Accounts Receivable from the Institute

Consultancy Services Ferhardi Limited - B Guha (Director) Services provided by the Institute

Services provided to the Institute

6,179

Accounts Payable to the Institute

Accounts Receivable from the Institute

Consultancy Services No provision has been required, nor any expense recognised, for impairment of receivables from related parties

ANNUAL REPORT 2014

- 80 -

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

Salaries and other short-term employee benefits

Actual 2014 $’000

Actual 2013 $’000

1,327

1,370

Key management personnel include the Chief Executive, Heads of Faculties (seven staff 2014: six staff 2013) and two members of the senior management team. Council members are considered part of the key management personnel and their fees have been included above and also in note 15. 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

Actual 2014 $’000

Actual 2013 $’000

176

175

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

17 Categories of financial assets and liabilities Southern Institute of Technology

Group

Actual 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

Loans and receivables Ca s h a nd ca s h equi va l ents Debtors a nd other recei va bl es Inves tments - Term depos i ts

11,094 1,705 7,555

3,622 1,248 17,830

4,080 1,705 7,616

3,634 1,258 17,930

Total loans and receivables

20,354

22,700

13,401

22,822

Actual 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

Financial assets at fair value through profit and loss Inves tments - Equi ty i nves tments

Available for Sale financial assets Inves tments Total available for sale financial assets

4 4

53 53

4 4

53 53

Financial liabilities measured at amortised cost Credi tors a nd other pa ya bl es Borrowi ngs - s ecured l oa ns

1,388 -

2,805 -

1,388 -

2,805 -

Total financial liabilities measured at amortised cost

1,388

2,805

1,388

2,805

Between 1 and 5 years

18 Ageing of financial liabilities Less than 6 Months Southern Institute of Technology and Group 2013

$'000

Between 6 months and 1 year $'000

Credi tors a nd other pa ya bl es Borrowi ngs

2,805 -

Southern Institute of Technology and Group 2014 Credi tors a nd other pa ya bl es

$'000

ANNUAL REPORT 2014

- 81 1,388

Actual 2014 $'000

Actual 2013 $'000

Actual 2014 $'000

Actual 2013 $'000

Financial assets at fair value through profit and loss Inves tments - Equi ty i nves tments

Available for Sale financial assets Inves tments Total available for sale financial assets

4 4

53 53

4 4

53 53

Financial liabilities measured at amortised cost Credi tors a nd other pa ya bl es Borrowi ngs - s ecured l oa ns

1,388 -

2,805 -

1,388 -

2,805 -

Total financial liabilities measured at amortised cost

1,388

2,805

1,388

2,805

Between 1 and 5 years

18 Ageing of financial liabilities Less than 6 Months Southern Institute of Technology and Group 2013

$'000

Between 6 months and 1 year $'000

Credi tors a nd other pa ya bl es Borrowi ngs

2,805 -

1,388 -

$'000

Southern Institute of Technology and Group 2014 Credi tors a nd other pa ya bl es Borrowi ngs

19 Credit Risk

22 Capital Management

The Instituteâ&#x20AC;&#x2122;s capital is its equity, which comprises retained The Institute has minimal credit risk in its holdings of earnings and reserves. Equity is represented by its assets. students, trade debtors and other financial instruments. These instruments include cash, bank deposits, and accounts receivable. The Institute manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The objective of managing the Ministryâ&#x20AC;&#x2122;s equity is to ensure The Institute places its investments with registered banks the Institute effectively achieves its goals and objectives and financial institutions. The Institute spreads its exposure for which it has been established, whilst remaining a going to risk by limiting the amount that can be invested in concern. any one institution. The Institute believes that these policies reduce the risk of any loss which could arise from 23 Subsequent Events its investment activities. Fixed interest deposits mature monthly when cash requirements are reviewed. There have been no material subsequent events. Accounts receivable are stated at their estimated realisable 24 Performance against Budget value after providing for amounts not considered Southern Institute of Technology experienced an increase recoverable. There is no significant concentration of credit in Income of 6% as compared to budget. This was mainly risk for accounts receivable. due to additional funding being received for Priority Trades subsequent to the Budget having been finalised. There 20 Market Risk was a similar increase in Expenditure arising from these The Institute is not exposed to interest rate risk on its additional EFTS. The surplus achieved of $0.7 million was financial assets. Deposits are placed on pre-determined in line with the budgeted surplus. 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 Instituteâ&#x20AC;&#x2122;s interest bearing investments are disclosed in notes 6 and 9 respectively.

ANNUAL REPORT 2014

- 82 -

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

25 Childcare Centre

The s urpl us on the Chi l dca re Centre a ccount wa s a rri ved a t a s fol l ows : Income recei ved Mi ni s try Gra nts Chi l dca re Fees

Actual

Budget

Actual

2014 $'000

2013 $'000

810 299

800 250

775 287

1,109

1,050

1,062

846 36 4 3 889 220

800 72 4 4 880 170

787 38 6 2 833 229

Other Income Les s Expendi ture Pa yrol l a nd Rel a ted Expens es Cons uma bl es Communi ca ti on Depreci a ti on Net Surpl us

Statistics for Funded Hours Under two yea r ol ds

2014

2013

Hours

20,458

23,045

The Childcare Centre is an integral part of Southern Institute of Technologyâ&#x20AC;&#x2122;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 maintenance costs on the buildings used are recharged through occupancy charges in the same way as all other Cost Centres. No capital charge has been applied by Southern Institute of Technology on the Childcare Centre.

ANNUAL REPORT 2014

- 83 -

NOTES TO THE FINANCIAL STATEMENTS for the yea r ended 31 December 2014

26 Investment in associate Actual 2014 $'000

Actual 2013 $'000

306 50 356

1,114 814 1,409 102 49% -

The Ins ti tute a cqui red a 49% s ha rehol di ng i n Southern La kes Engl i s h Col l ege Li mi ted on 1s t Ja nua ry 2014. Movement i n the ca rryi ng a mount of the i nves tment i n a s s oci a te: Ba l a nce a t 1 Ja nua ry New Inves tments duri ng the yea r Di s pos a l of Inves tments duri ng the yea r Sha re of tota l comprehens i ve i ncome Di vi dend Ba l a nce a t 31 December

Summarised financial information of associate presented on a gross basis As s ets Li a bi l i ti es Revenue Surpl us /(defi ci t) Group's i nteres t

Share of associate's contingent liabilities incurred jointly with other investors Contingent liabilities that arise because of several liability

Southern La kes Engl i s h Col l ege Li mi ted i s a n unl i s ted compa ny. Accordi ngl y, there a re no publ i s hed pri ce quota ti ons

to determine the fair value of this investment.

ANNUAL REPORT 2014

- 84 -

STATEMENT OF RESOURCES Statement of Resources

for the year ended 31 December 2014

For the year ended 31 December 2014

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

New Media, Arts and Business Health, Humanities and Computing Trades and Technology Gore Campus Queenstown Campus Christchurch Campus SIT2LRN Finance, Admin, Directorate, Human Resources, Facilities, Educational Services, Library, Marketing, Caretakers, Childcare, Grounds,

Non-Teaching and Allied 2014 2013

2014

2013

43.27 43.02 40.25 4.55 3.76 25.39 1.48

44.33 41.27 37.51 4.93 3.18 24.23 0.97

7.13 4.57 14.27 1.73 1.49 13.03 22.22

6.33 4.58 12.62 1.67 1.43 11.39 20.08

0.31

3.26

162.03

159.68

79.68 25.09 169.21

79.99 26.29 164.38

Managerial 2014 2013 1.00 1.00 1.00

1.00 1.00 1.00

1.34

0.35 1.00

4.00

3.46

8.34

7.81

Total 2014

2013

51.40 48.59 55.52 6.28 5.25 38.42 25.04

51.66 46.85 51.13 6.60 4.61 35.97 22.05

83.99 25.09 339.58

86.71 26.29 331.87

Library

The Instituteâ&#x20AC;&#x2122;s Library has a collection of 23,150 books and 150 regular periodical subscriptions. Issues for 2014 totalled 30,034. The depreciated replacement cost of Library stock is $555,948. The Library had a permanent staff of 4.96 FTE during 2014.

ANNUAL REPORT 2014

- 85 -

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

NZIFRS

New Zealand International Financial Reporting Standards

NZQA

New Zealand Qualifications Authority

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

ANNUAL REPORT 2014

- 86 -

ANNUAL REPORT 2014

- 87 -

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