Cover design inspired by the artwork of
Bill Ruawai Toimairangi Tauira The design on the front cover of Te Pﾅｫrongo - Annual Report 2011 was inspired by Matariki (the Pleiades star cluster). Rongo is the god of peace and cultivated food, including kumara, taro, uwhi (yams) and hue (gourds). These tropical plants were brought to Aotearoa, a more temperate and severe climate than Hawaiki. Spiritual rituals were given to Rongo to enable these plants to grow. When ready, the plants were cultivated and eaten, including small sized hue. However, larger sized hue were shelled and dried, leaving only the hardened outer skin. When prepared, the hue could be used as a carrying vessel for water or food. Matariki signifies the season to celebrate and to prepare the ground for planting crops. Matariki is also a time to educate in the lore of the land and the forest. The central piece in the artwork is a carved hue surrounded by the stars of Matariki and signifies that, as with the cultivation of the hue, special environments are required for education to be sustaining so that it can bring about sustenance, health and wellbeing for all people. Te Wﾄ］anga o Aotearoa can be likened to a hue or a vessel of valuable knowledge that provides educational opportunities that can transform whﾄ］au and generations. As Matariki represents new beginnings and growth, our values and kaupapa are the guiding principles that continue to drive us in the pursuit of excellence.
Published in 2012
Address: Te Wﾄ］anga o Aotearoa 320 Factory Road PO Box 151 Te Awamutu 3800 Phone: 0800 355 553 Web: www.twoa.ac.nz
Presented to the House of Representatives pursuant to the Crown Entities Act 2004
Kupu Whakataki Tēnei te tuitui i ngā kupu maioha ki te runga rawa E here nei i te rangi ki te whenua, te whenua ki te rangi Whakamānawatia te upoko ariki Kīngi Tūheitia, noho mai rā koe i te rangimārie, me te ngākau mahaki Paimārire Huihuia atu rā koutou e ngā kōkō tangiwai, e ngā taumata kōrero ki Te Hono-i-wairua He hekenga roimata, he pukenga aroha ki a koutou te iwi ka ngaro E moe, haere atu rā Ko Meremere-tū-ahiahi i te pō, ko Tāwera-kai-ata i te ao Tihē mauri ora! E ngā keokeonga o marutuna, o maruwehi, e ngā hikuawa o nunui mā, o roroa mā – me kī e ngā mana, e ngā tapu, e ngā wehi, tēnā rā koutou katoa. Nei ia Te Pūrongo a Te Wānanga o Aotearoa mō te tau kua rewa ki runga i ngā tai o nāianei, e kawe ana i te kōrero, e kawe ana i te mōhiohio mā te makiu e puta ai he māramatanga ki te tī, ki te tā, ā, ki ngā iwi katoa, tēnā rā koutou katoa.
Ko Te Whakakitenga THe Vision
Ki te whakawhiwhi i ngā mea angitu, ā, i ngā akoranga katoa tino teitei mō ngā Māori me ngā iwi o Aotearoa me te ao.
Te Wānanga o Aotearoa will provide holistic education opportunities of the highest quality for Māori, peoples of Aotearoa New Zealand and the world.
Ko Te Uaratanga THe Mission Statement
Ko te whakarite mātauranga e hāngai ana ki ngā wawata o tēnei whakatupuranga, ki te whakaū hoki i ngā moemoeā o ngā whakatupuranga o te ao tūroa, ki te whakatikatika kia mārama ai ki te hā o te ao tawhito
To provide education that best fits the aspirations of this generation, enhances the dreams of future generations and prepares for understanding the essence of past generations
Ki te whakatō ki roto i te hinengaro tangata te mōhiotanga o ngā taonga tuku iho, tō tātou reo, tō tātou Māoritanga e pai ai tā rātou torotoro i ngā iwi o te ao i runga i te māia me te manawanui
To equip people with knowledge of our heritage, our language, our culture so they can handle the world at large with confidence and self-determination
Ki te whakamana i te pūmanawa moe ki te ako hei taumata e hīkoi whakamua i roto i te ao hou
To empower ones potential for learning as a base for progress in the modern world
Ki te whakatakoto tākoha e whai hua ai
To make contributions of consequence
Kia manawapā ano
To care
Kia mutu tonu, he kāinga pai tēnei ao
To make our world a better place
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Te pūrongo 2011
Ko Nga Uara THe Values
Our values of Te Aroha, Ngā Ture, Whakapono and Kotahitanga are embedded in and woven through the actions we take to achieve successful outcomes for our tauira, as by achieving success for tauira we achieve success as an organisation. Our values also provide an ongoing cycle of evaluation and improvement that contributes to the achievement of our Kaupapa and our goals. Te Wānanga o Aotearoa defines its values as follows.
Te Aroha Having regard for one another and those for whom we are responsible and to whom we are accountable
Te Whakapono The basis of our beliefs and the confidence that what we are doing is right
Nga Ture The knowledge that our actions are morally and ethically right and that we are acting in an honourable manner
Kotahitanga Unity amongst iwi and other ethnicities; standing as one
Ko Te Kaupapa
THe Philosophy
Ki te whakawhiwhi i nga mea angitu, a, i nga akoranga katoa tino teitei mo nga Māori me nga iwi o Aotearoa me te ao
To provide holistic educational opportunities of the highest quality for Māori, peoples of Aotearoa and the world
Ki te waihanga i tetahi ahuatanga hei akoranga tikanga Māori
To provide a unique Māori cultural learning environment
Ki te whakawhiwhi i te mea akoranga whai kiko
To provide practical learning experiences
Ki te tautoko, ki te whakahau, ki te arahi i nga tauira katoa, i a ratou e aru ana i nga whanaketanga i nga akoranga me nga mahi e pa ana ki a ratou
To provide support, encouragement and guidance to all tauira in their pursuit of personal development, learning and employment
Ki te whakahau i nga tauira katoa ki te ako kia whiwhi ai ratou i te puawaitanga tino teitei o te maiatanga
To encourage all tauira to learn and achieve to their fullest potential
Ki te whakahau i ona kaimahi, kia pai ai te haere o nga tikanga o te mahi i whakaatu mai, kia whiwhi ai ratou i te puawaitanga tino teitei o te maiatanga
To be a good employer and encourage staff to develop personally and professionally to their fullest potential
annual report 2011
iii
Rarangi Upoko
Table of Contents
Organisational Overview 2011
5
About Te W nanga o Aotearoa
6
Report from the chairperson of Te Mana Whakahaere
8
Governance 9 Te Mana Whakahaere members
10
Report from Te Pouhere
12
Ng Kaihaut Members
15
2011 Year in review Highlights Aotearoa Scholarship Trust New Qualifications Major Redevelopments
16 16 18 20 21
Measuring Performance
23
Statements of Service Performance Targeting Priority Groups Improving System Performance Supporting Quality Research that Helps Drive Innovation
24 25 27 31
Tauira Information Tauira Satisfaction Tauira Engagement Tauira Demographics
32 32 32 34
Kaimahi Information
36
Financial Report
39
Financial Summary Results for the Group Financial Position
41 41 42
Statement of Responsibility
43
Independent Auditor’s Report
44
Financial Statements Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Statement of Cashflows
46 46 47 48 49
Statement of Accounting Policies
51
Notes to the Financial Statements
62
annual report 2011
v
Hei Whakamaumahara Remembrance
In 2011, we mourned the loss of many rangatira who had committed their lives to improving the well-being of MÄ ori as a means of moving towards a better future. They pursued knowledge and wisdom and they lived their lives in the service of others. We profile some of them here and send our sympathy to all those who lost loved ones in 2011. Although the pain of parting may dull over the years, the memory of their time with us remains forever.
Dr Muriel Pimia ‘Nen’ Wehi MNZM, QSM Te Aitanga a Mahaki, Te Whānau a Apanui, Rongowhakaata, Te Whakatōhea, Ngāti Ruapani
13th Hōngongoi 1929 - 5th Hui-tanguru 2011
In February, we were saddened to hear of the loss of the kapa haka icon Nen Wehi, ending a sixty-year era of unequalled achievement and success in Māori performing arts. During her time, Nen and her husband Bub built a formidable reputation for composition, performance and tutoring unparalleled in modern times. Nen represented Aotearoa New Zealand abroad at a wide range of events and occasions, performing at the first Festival of the Pacific Arts as well as accompanying government and official delegations all over the world. At home, she welcomed royalty, dignitaries and officials from other countries on behalf of all New Zealanders. In recognition of her prowess, Nen was honoured on numerous occasions with countless awards and honours for her services to Māori and her achievements in the performing arts. She received an honorary doctorate from Massey University in 2001 and a Queen’s Service Medal in 2002. She was also awarded an MNZM in 2011. We mourn the loss of this legend whose voice soared in the heavens with the songs of our people.
Joseph Tuahine Northover MNZM Ngāti Hine, Ngāti Kahungunu, Ngāti Porou
5th Poutū-te-rangi 1928 - 6th Paenga-whāwhā 2011
In April, thousands of mourners gathered at Ōmāhu Marae to farewell the highly respected senior kaumātua Joseph Tuahine Northover. Joe was a much sought after expert on tikanga and mātauranga Māori and on the oral arts – whaikōrero, ngā karakia tawhito, waiata and mōteatea. He was also an ordained minister of the Ringatū religion. Joe served as a representative on Hastings District Council’s Joint Māori Committee, as well as being kaumātua to Hastings District Council, Napier City Council, Eastern Institute of Technology, the NZ Police Eastern District, the 28th Māori Battalion, and Te Aute College.
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TE PŪRONGO 2011
Joe was a committed advocate for Māori with New Zealand Police, Napier/Hastings courts and as a Māori warden. Although he contributed his knowledge and wisdom on a wide range of boards and councils, it was his services to communities for which he was recognised with an MNZM in the Queen’s Birthday Honours in 2004. The loss of one who holds such considerable knowledge and wisdom and whose kindness touches the lives of so many leaves behind a vacuum that it will take many people to fill.
Dame Kāterina Te Heikōkō Mataira DNZM Ngāti Porou
13th Whiringa-ā-rangi 1932 - 16th Hōngongoi 2011
In July, tributes began to flow from around the world at the news of the passing of wāhine toa and rangatira Dame Kāterina Mataira. Dame Kāterina was a key founder of the kura kaupapa movement and helped establish the first Māori language school at Hoani Waititi Marae in Auckland. She is also credited with helping initiate the current renaissance of te reo Māori and has been at the forefront of this revival for decades. Dame Kāterina is known as an accomplished author, academic and artist and has written and published a number of groundbreaking novels and award-winning children’s stories. In 1998, Dame Kāterina was made a Companion of The New Zealand Order of Merit for her services to the country and she became a dame just a few weeks before she passed on. Kāterina remains among us through her many outstanding achievements that have become a natural part of our lives.
(Laurice) Meagan Joe Ngāti Pāhauwera, Ngāti Te Kōhera (Ngāti Tūwharetoa), Ngāi Te Māhurehure (Tūhoe), Ngāi Tai ki Tōrere, Ngāti Hikairo (Ngāti Tūwharetoa), Ngāti Hineuru ki Te Hāroto and Ngāti Hinepare ki Mōteo
26th Hōngongoi 1953 - 27th Hōngongoi 2011
Meagan spent 25 years working in the public sector and was involved in a wide variety of initiatives, including Atawhaingia Te Pā Harakeke – a parenting programme that was trialled in prisons.
In 2009, Meagan was seconded by the Ministry of Education to Ngāti Kahungunu to develop and manage the Ngāti Kahungunu Cultural Standards project. This project aimed to ensure local hapū knowledge was embedded in the curricula of mainstream schools, and Meagan worked tirelessly to achieve this goal.
Whatumoana Paki Te Aupōuri, Ngāti Whawhakia
2nd Hui-tanguru 1926 - 22nd Mahuru 2011
Meagan was a committed member of the Māori Women’s Welfare League. Although she filled a number of roles in the league, she was elected president in 2008. Her three-year term was due to end in August 2011.
The Governor-General Sir Jerry Mateparae, Prime Minister John Key and Pacific royalty made their way to Waahi Marae in September to mourn the loss of Whatumoana Paki – loving husband of the late Māori Queen Dame Te Arikinui Te Atairangikaahu and father of Kīngi Tuheitia.
Meagan will be greatly missed by family and friends, but also by all those whose lives she touched during her lifetime of service.
Raised in Huntly, Whatumoana came from a humble background as a farmer and coalminer. He was also known for his commitment to the upkeep of marae along the Waikato River.
Sir Paul Reeves ONZ, GCMG, GCVO, CF, QSO Te Āti Awa
6th Hakihea 1932 - 14th Here-turi-kōka 2011
Sir Paul was Anglican Archbishop and Primate of New Zealand from 1980 to 1985 and was appointed the 15th Governor-General (and first Māori Governor-General) of New Zealand from 22 November 1985 to 20 November 1990. Alongside the many significant roles he had in New Zealand, Sir Paul also worked internationally. He was Anglican Observer for the United Nations from 1991-1993, observed elections in Ghana and South Africa, helped write constitutions for Fiji and Guyana and chaired the Nelson Mandela Trust.
Whatumoana married Our Lady in 1952 and together they had seven children. Dame Te Arikinui Te Atairangikaahu ascended to the Kīngitanga throne in 1966, and Whatumoana began forty years of solid and loving support for Te Ata as she undertook her duties as monarch. Whatumoana will be remembered as a humble and gentle man and a hard-working pillar of the Kīngitanga movement.
Sir Henare Kohere Ngata KBE Ngāti Porou
19th Hakihea 1917 - 11th Hakihea 2011
In November, Māori leaders from around the country gathered at Te Poho a Rawiri Marae to farewell Sir Henare Ngata.
Back home, Sir Paul chaired the Queen Elizabeth II National Trust and the Bioethics Council, and helped select judges for the new Supreme Court of New Zealand. He was also involved in helping his iwi Te Āti Awa negotiate their Treaty settlements.
The youngest child of rangatira, politician and statesman Sir Apirana Ngata, Sir Henare was seen as continuing the great works started by his father: laying a platform to provide a secure future for Māori.
Throughout his life, Sir Paul maintained a commitment to education. He held a number of visiting professorships and was the incumbent Chancellor of Auckland University of Technology at the time of his death.
Sir Henare chaired the Mangatu Incorporation between 1959 and 1987, during which time he became an expert in Māori land management. He also served on a range of other bodies, including being an inaugural member of the New Zealand Māori Council from 1962.
Sir Paul was awarded New Zealand’s highest honour, the Order of New Zealand, in 2007 and spent his life serving his church, his iwi and his country. We have lost one of our greatest statesman and rangatira.
In 1969, Victoria University conferred an honorary doctorate on Sir Henare, and he received a knighthood in 1982 for his services to Māori people. Throughout his long life, Sir Henare maintained an active interest in issues relating to Māori and the Māori sphere. He believed education was the key to Māori people having a greater say in what goes on and saw this as the path to emancipation.
annual report 2011
3
Key Facts - 2011 Number of tauira
Number of EFTS Successfully completed a qualification
Number of tauira Māori Number of Pasifika tauira Number of FTE kaimahi
72% Programme graduation rate
32,500 20,417 19,309 16,696 3,517 1,098
71%
73%
Qualification completion rate
Percentage of kaimahi Māori
More than
80
Number of towns and cities in which programmes are delivered
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TE PŪRONGO 2011
Organisational Overview 2011
About Te Wananga o Aotearoa Founded in 1983 to provide education and training to help young people whose needs were not being met by the mainstream education system, Te Wānanga o Aotearoa delivers cultural, social, intellectual and economic transformation for tauira, their whānau, and their communities throughout Aotearoa New Zealand. Te Wānanga o Aotearoa is grounded in Māori values in alignment with its character defined in the Education Act 1989. These values drive strategy and policy and are embedded in day-today activities; they advocate caring and supportive learning environments; they nurture tauira to achieve to the best of their abilities; they support high levels of tauira satisfaction; and they encourage unity amongst a highly motivated whānau whānui. Over recent years, Te Wānanga o Aotearoa has attracted many thousands of tauira who have been away from education for an extended period. Many of these tauira left school without a qualification; some were engaging in tertiary education for the first time; most had come to understand the importance of education after spending their working life either unemployed or underemployed. Te Wānanga o Aotearoa continues to provide opportunities for these people as they seek to realise their aspirations and to improve their options for securing meaningful employment.
Te Wānanga o Aotearoa remains committed to supporting mātauranga Māori, protecting te reo Māori, and revitalising marae throughout the country.
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TE PŪRONGO 2011
Meanwhile, Te Wānanga o Aotearoa continues to focus its attention on those it was originally established to help: rangatahi. The aim is to encourage rangatahi to transition directly from secondary school into tertiary education. These efforts are undertaken to help eliminate the often lengthy gap many tauira experience between leaving secondary education and engaging with tertiary study. The strategy also supports the organisation’s drive towards cradle-to-cradle education – a philosophy that recognises not only lifelong learning, but also the transfer of knowledge between generations. The long-term sustainability of Te Wānanga o Aotearoa is a key objective that will ensure the organisation remains available to future generations. Currency, agility and responsiveness to stakeholders are seen as central attributes to achieving this objective. However, Te Wānanga o Aotearoa also recognises the importance of fulfilling its wider responsibilities: to support the communities within which it operates and to protect and nurture the environment. As always, Te Wānanga o Aotearoa remains committed to supporting mātauranga Māori, protecting te reo Māori, and revitalising marae throughout the country. Within these commitments, the whānau whānui welcomes people of all ethnicities and from all walks of life. Beyond valuing diversity, we understand that kotahitanga is our greatest strength. We understand that togetherness is the only forum through which we can work together to make our world a better place.
Te Wānanga o Aotearoa is divided into six rohe that cover Aotearoa New Zealand, with delivery occurring at more than 120 sites in 80 towns and cities. This distribution enables Te Wānanga o Aotearoa to provide access to education for people who are unable to travel to larger cities. National operations are co-ordinated from Te Puna Mātauranga (head office) based in Te Awamutu. This map shows the location of each rohe. Te Wānanga o Aotearoa group consists of the parent Te Wānanga o Aotearoa and three subsidiaries: Open Wānanga Limited (100% owned); Papatoa Forestry Limited (100% owned); and Aotearoa Scholarship Trust (100% controlled).
T maki Makaurau/Te Tai Tokerau Auckland/Northland
Tainui Waikato
Waiariki Bay of Plenty
Whirikoka East Coast/Poverty Bay
Papaiōea Central North Island
Te Tai Tonga/Te Wai Pounamu Wellington/South Island
annual report 2011
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Report from the Chairperson of Te Mana Whakahaere
It gives me great pleasure to introduce this 2011 annual report for Te Wānanga o Aotearoa. 2011 marks a period of further momentum for Te Wānanga o Aotearoa and a continuation of the comprehensive performance that has characterised the institution’s achievement over the past five years.
Richard Batley
We are continuing a review and assessment of our governance and strategy functions to ensure Te Mana Whakahaere is operating in the most productive and efficient manner. The review is nearing its final stages and we expect to present the findings to Te Mana Whakahaere in the coming months.
The bedrock for the continued success of Te Wānanga o Aotearoa is a focus on quality and the continuous review and assessment of the educational offerings we provide and in the way we manage our business.
It is essential that Te Mana Whakahaere membership captures the many and varied skills required to provide sound governance and strategy for one of the country’s largest tertiary institutions. We must continue to govern in a manner that complements our unique teaching and learning philosophy, and we must also be reflective of the diverse communities we serve.
We enrolled 32,500 tauira in 2011, tauira numbers that we would have substantially exceeded were it not for our cap of 20,500 EFTS. Demand for our programmes continued to be high among Māori and Pasifika tauira, who made up 57 per cent of our enrolments for the year. Te Wānanga o Aotearoa continued its excellent academic performance in 2011 achieving nearly all the goals we set for ourselves.
I would like to thank the members of Te Mana Whakahaere for their diligence and commitment during the year in guiding the strategy and focus for Te Wānanga o Aotearoa. I would also like to acknowledge Jo Hymers, Colleen Tuuta and Raukura Ropiha who were welcomed on to Te Mana Whakahaere this year and also acknowledge the 2010/11 tauira representative Matthew Goodall for his work during the year.
It is a pleasure to again announce a surplus for Te Wānanga o Aotearoa. The year’s surplus of $7.28 million is a 17 per cent increase on the $6.2 million surplus achieved in 2010. This ensures we maintain an appropriate financial base to fund reinvestment in programme development essential to meeting the changing requirements of the many communities we serve nationally. The strong financial base also provides the ability to invest in campuses, buildings and staff.
Finally, I would like to thank Te Pouhere Bentham Ohia, his management team and his staff for the continued strong performance they provide in meeting the educational needs of the people of Aotearoa New Zealand. The excellent educational and financial results the institution has continued to enjoy are a testament to the commitment and passion of the many hundreds who make up the Te Wānanga o Aotearoa team.
Developing and delivering programmes focused on employment outcomes and increasing youth participation have remained key strategic focuses for our institution this year, and this will continue in the coming years. Te Wānanga o Aotearoa will continue to provide educational solutions that lead to educational pathways and employment outcomes for students. Pivotal to the success of these endeavours are programme offerings that continue to be embedded and empowered with the unique cultural component of learning intrinsic to this institution.
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TE PŪRONGO 2011
Richard Batley Chair – Te Mana Whakahaere
Governance Constitution Responsibilities Te Mana Whakahaere (the council of Te Wānanga o Aotearoa) is appointed to govern the organisation in accordance with its statutory and regulatory obligations. Te Mana Whakahaere is responsible for decision-making within the organisation and for delegating operational responsibility to Te Pouhere (CEO) through the Delegations of Authority framework.
Membership The constitution of Te Mana Whakahaere allows for four members appointed by the Minister for Tertiary Education, Skills and Employment; Te Pouhere (ex-officio); one member appointed from Business New Zealand; one member appointed from the Council of Trade Unions, one member nominated by Kīngi Tuheitia; five co-opted members, one elected representative from the academic staff; one elected representative from the general staff; and one elected representative from tauira. The positions for members nominated by Kīngi Tuheitia and Business New Zealand are currently vacant.
Assessment of Performance Te Mana Whakahaere completes a self-evaluation of its performance on an annual basis. In 2011, the self-review considered the evaluative dimensions of strategy and planning, organisational performance monitoring, te kawa o Te Mana Whakahaere, managing management, and Te Mana Whakahaere operations.
Meetings Te Mana Whakahaere has 12 scheduled meetings per annum, but can meet on other occasions if circumstances require.
Remuneration Remuneration for Te Mana Whakahaere members is determined in accordance with Cabinet Office Circular CO (09) 5.
Sub-committees Te Mana Whakahaere has established three sub-committees to help it meet its obligations. Each of these is described below. • Te Rautiaki M tauranga In accordance with the Education Act 1989 section 182 (2), Te Mana Whakahaere established Te Rautiaki Mātauranga (Academic Board) to advise it on matters relating to courses of study or training, awards, and any other academic matters. In addition, the sub-committee is responsible for promoting the maintenance and advancement of an indigenous body of knowledge and maintaining educational standards.
• Te Ārai T pono Te Ārai Tūpono (Audit and Risk Management Committee) verifies that Te Wānanga o Aotearoa has appropriate processes in place to identify and manage risks. This is achieved by assisting Te Mana Whakahaere to oversee the integrity of financial reporting, internal control, risk management, and internal and external audit functions. • Executive CommiTTee The Executive Committee assists Te Wānanga o Aotearoa to be a good employer by overseeing human resource strategy and setting remuneration and performance levels for Te Pouhere.
Responsiveness to Stakeholders Primary stakeholder groups include tauira, iwi, industry and kaimahi. Tauira views and needs are gathered through classroom evaluations and an annual graduate survey. Classroom evaluations provide a mechanism to respond quickly to the needs of tauira while the graduate survey provides Te Wānanga o Aotearoa with important feedback on improvements that can be made to tauira support systems, qualifications and tauira educational needs. Kāpuia (the graduate community of Te Wānanga o Aotearoa) enables the organisation to stay connected with tauira who have graduated. Kāpuia helps former tauira to stay in touch with kaimahi and other tauira and provides access to scholarships. Kāpuia also enables Te Wānanga o Aotearoa to understand and measure the impact of an education at Te Wānanga o Aotearoa. Te Kāhui Amorangi o Te Wānanga o Aotearoa is a national collective iwi forum. It is a nationwide network of stakeholders that provides input into the strategic direction and operations of the organisation. This enables Te Wānanga o Aotearoa to understand and capture the needs and aspirations of iwi. Kōmiti Awhina forums are used to capture industry needs for qualifications being delivered at Te Wānanga o Aotearoa. This approach ensures that qualifications remain relevant to employers’ needs and enhances the future employment prospects of tauira. Te Wānanga o Aotearoa employs nearly 1,400 kaimahi (1,098 FTEs) across Aotearoa New Zealand. Kaimahi are drawn from the often small communities within which the organisation operates. Because of this, the voices of community stakeholders are represented from within the organisation or through direct whānau links with kaimahi. These connections assist the organisation to understand community needs at a local and national level.
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Te Mana Whakahaere Members Richard Batley Chair Co-opted Member Ngāti Tama, Ngāti Maniapoto, Waikato, Raukawa CA, BMS
Dr Toby Curtis Deputy Chair Co-opted Member Ngāti Rongomai, Te Arawa PhD, MA (Hons), BA, Dip Tchg
Richard has considerable experience in senior managerial positions in large organisations across the government and private sectors. He is a member of Te Mana Whakahaere sub-committees, Te Ārai Tūpono and the Executive Committee. General disclosure of interests: Director: Open Wānanga. Advisor: Taumarunui Community Kōkiri Trust. Consultant: Te Puni Kōkiri; Toiora PHO.
Dr Curtis has been the recipient of a Fulbright Award and is an associate fellow of the New Zealand Institute of Management (AFNZIM), a fellow of the New Zealand Administration Society (FNZEAM), a fellow of the Commonwealth Council of Educational Administration and Management (FCCEAM) and an Emeritus Associate of Auckland University of Technology (EAAUT). He is a member of the Executive Committee of Te Mana Whakahaere. General disclosure of interests: Chairperson: Te Arawa Region - Whānau Ora; Te Arawa Lakes Trust. Director: Curtis Consulting Limited; Chairperson / Director: Taiaorangi Renewable Energy Ltd. Deputy Chairperson: Rotorua Te Arawa Lakes Strategy Group.
Lloyd Anderson Co-opted Member Registered Comprehensive Nurse, Dip Dairy Farming, Adv Cert in Te Ara Reo Māori
Lloyd has governance experience in a variety of educational and community organisations. He joined Te Mana Whakahaere in 1993 and has served continuously since that time. He is a member of Te Ārai Tūpono, a sub-committee of Te Mana Whakahaere. General disclosure of interests: Director: Open Wānanga. Vice Chairperson: Te Awamutu Area Committee St John Ambulance Association member.
Deirdre has extensive experience in the tertiary education sector and has served as a commissioner on the board of the Tertiary Education Commission. She advises organisations, government departments and regulatory bodies on tertiary education and training matters. Deirdre is a member of Te Ārai Tūpono, a sub-committee of Te Mana Whakahaere.
Deirdre Dale MNZM, JP Ministerial Appointment BA (SocSci)
General disclosure of interests: Chairperson: Whitireia Foundation; Whitireia Performing Arts Trust.
Manaoterangi Forbes Co-opted Member Ngāti Maniapoto, Tainui DipTchg, Dip in Te Arataki Manu Kōrero
Associate Professor Dr Manuka Henare Ministerial Appointment Te Rarawa, Te Aupōuri, Ngāti Kuri PhD, BA (Hons) (VUW)
Tania Hodges Ministerial Appointment Ngāti Kahungunu, Ngāti Ranginui, Ngāti Haua, Ngāti Tuwharetoa MBA (with Distinction), GradDipMgmtStud, GradDip Te Reo Māori, PGCBR, BSocSci, RPN
Jo Hymers from July 2011 Tauira Representative
Mana has broad experience in the educational sector and has served on boards for national and international educational institutions. General disclosure of interests: Chairperson: Tai Wānanga Establishment Board. Trustee: Aotearoa Scholarship Trust; International Indigenous Graduate Institute.
Dr Henare is Associate Dean of Māori and Pacific Development at the University of Auckland Business School, a founding director of the Mira Szászy Research Centre and Academic Coordinator of the Huanga Māori Graduate Programme, Graduate School of Enterprise, and University of Auckland Business School. General disclosure of interests: Council member: Manukau Institute of Technology Council. Member: Advisory Group Te Wānanga o Hoani Waititi.
Tania has considerable experience in governance and consulting on funding, contracting, strategy, change management, Māori/iwi relationships, leadership, and workforce and community development. She is a member of the Executive Committee of Te Mana Whakahaere. General disclosure of interests: Director/Shareholder: Digital Indigenous.com Ltd. Trustee: Ngati Pahauwera Development Trust; Tiaki Trust. Co-chair: Waikato Region Whānau Ora.
Jo’s professional background is in information technology, advocacy and representation. She has worked to support students in their learning environments since 2003. Jo is a member of Te Rautiaki Mātauranga, a sub-committee of Te Mana Whakahaere. General disclosure of interests: None
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Peter Joseph NZCTU Nominated Member Te Arawa, Tūhouraangi, Ngāti Pikiao
June McCabe Ministerial Appointment Ngāpuhi, Te Rarawa, Te Aupōuri, Ngāti Kahu, Ngāti Kahurau MBA
Bentham Ohia Te Pouhere (CEO) Ngāi Te Rangi, Ngāti Pūkenga, Ngāti Ranginui, Te Āti Awa, Ngāti Rārua MBA, BA, Dip Tchg
Marie Panapa General Staff Representative Te Ātiawa, Taranaki BEd (Massey), JP
Peter has extensive experience in the tertiary sector and has served in a number of leadership positions. His career spans the private and public sector as well as community and not-forprofit sectors. General disclosure of interests: Chief Executive: TIASA. Chairman: Aotearoa Māori Women’s Rugby Sevens. Selector / Coach: Aotearoa Māori Women’s 7s Team.
June has extensive governance experience as a board member of a number of public, private and not-for-profit organisations. She has also had considerable experience in senior managerial positions in the corporate sector. She is a member of the Executive Committee of Te Mana Whakahaere. General disclosure of interests: Director: Sustainable Prosperity (NZ) Ltd; Open Wānanga; Avanti Finance Ltd; Galatos Finance Ltd; Te Waka Pupiri Putea; Northland District Health Board; Procare Health Ltd. Member: Māori Economic Development Panel.
Bentham has significant experience in teaching at and leading educational institutions. Bentham has served (and continues to serve) on a large number of boards and organisations that support the advancement of indigenous peoples, education and business. General disclosure of interests: Director: Open Wānanga. Board Member: Americans for Indian Opportunity; Waikato-Tainui College for Research and Development. President: Advancement of Māori Opportunity. Member: Te Tauihu o Ngā Wānanga; Waikawa Marae.
Marie has had extensive experience in community and educational organisations. She has been with Te Wānanga o Aotearoa as a kaiako and kaimahi for 27 years. As one of the founding leaders of Te Wānanga o Aotearoa she has been a vigorous advocate for the importance of education. She is a member of Te Ārai Tūpono and Te Rautiaki Mātauranga, sub-committees of Te Mana Whakahaere. General disclosure of interests: None
Raukura Ropiha from November 2011
Raukura is passionate about education and meeting the needs of tauira. She has served on boards representing rangatahi.
Academic/Tutorial Staff Representative BML, BMM, Dip Te Reo, DipDA, DipMS
General disclosure of interests: None
Colleen Tuuta
Colleen has extensive governance experience in the areas of health, banking and education.
from August 2011
General disclosure of interests: Director: Albatross Enterprises Ltd. Board Member: Taranaki District Health Board. Elected Board Member: Te Runanga o Ngāti Mutunga. Trustee: New Plymouth Girls High School Board; Mahia Mai a Whai-Tara; Inspiring Communities Exchange. President: Te Pikinga Aio Society ki Taranaki. Committee Member: Takatini; Philanthropy New Zealand – Māori Advisory Committee; Wisdom Village – Think Tank. Advisor: New Zealand Families Commission – Whānau Reference Group.
Co-opted Member Ngāti Mahuta, Ngāti Mutunga, Te Atiawa, Taranaki
Reverend Te Napi Tutewehiwehi Waaka
Napi has a comprehensive background in community and cultural development and one of the founding leaders of Te Wānanga o Aotearoa.
OBE
General disclosure of interests: None
Kaumātua Ngāti Pikiao (Te Arawa), Ngāti Māhanga (Tainui) Adj Professor, DipTheol, Dip Tchg (Secondary)
Vince Hapi to March 2011
General disclosure of interests: The member resigned in March 2011.
Academic/Tutorial Staff Representative MMPD, BA, BEd, Te Panekiretanga o te Reo Waikato, Raukawa Tainui
annual report 2011
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Report from Te Pouhere
Bentham Ohia
Firstly, I give all glory, honour and praise to God, Te Atua, for the continual blessings we have been fortunate to receive. E Te Atua, manaakitia mai tātou katoa, ko koe Te Kīngi o ngā Kīngi, te tapu o ngā tapu, Kororia ki to ingoa tapu mo ake tonu atu. As always, I acknowledge the founders of Te Wānanga o Aotearoa. Our organisation grew out of a need to provide practical, transformational, community-based solutions through an educational kaupapa to address the challenges faced by Māori. This has extended to a sense of responsibility to provide opportunities for all New Zealanders and all peoples of the world. Our goal is to make contributions that support whānau and families of all cultures to live life and bring to reality the fullness that life has to offer.
Te Wānanga o Aotearoa intentionally places its focus on ‘whānau’ and we have aligned our organisation with this purpose through our mission, kaupapa and values and through our drive to contribute to ‘whānau transformation through education.
Iwi relationships and communities are at the centre of our kaupapa and are critical to our past, our present and our future. Te Wānanga o Aotearoa intentionally places its focus on whānau and we have aligned our organisation with this purpose through our mission, kaupapa and values and through our drive to contribute to ‘whānau transformation through education’. I acknowledge our unique and privileged role as a wānanga under the Education Act 1989, which defines our purpose as follows: ‘A wānanga is characterised by teaching and research that maintains, advances and disseminates knowledge and develops intellectual independence and assists the application of knowledge regarding āhuatanga Māori (Māori tradition) according to tikanga Māori (Māori custom).’ I also acknowledge the many people who made considerable sacrifices and contributions to clear the way for this part of the act to become a reality. I honour the privileged relationship we share with Te Wānanga o Raukawa and Te Whare Wānanga o Awanuiārangi (both of which have been operating for many years and have been a huge support and great allies). Specifically, I would like to acknowledge Dr Turoa Royal, who recently retired as Chair of Te Wānanga o Raukawa after 40 years of service, and his wife Mary-Rose. The contribution of the wānanga sector to date has been significant; however, our future contribution will require us to do more with less to achieve more. I have complete confidence that the wānanga sector will continue to make a significant contribution to addressing the needs of our people, our country and our world. Our tauira had an exceptional year in 2011, achieving an organisational course completion rate of 79% – well above the national average and 3% above our 2010 result. Priority groups (Māori, Pasifika and under 25 year olds) within our
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tauira base continued their strong performance, with all groups exceeding course completion targets. I congratulate all our tauira who completed courses in 2011 and I look forward to seeing you at graduation.
at other institutions wishing to take advantage of all that our organisation has to offer. The ultimate aim of this strategy is to provide tauira with clear pathways towards careers, but also towards encouraging cultural and community contributions.
At present, we are developing vocation and trades pathways, as well as opening up specific pathways based around our degree level provision. We are also creating relationships with strategic partners, including Southern Institute of Technology, Northtec, Manukau Institute of Technology, Unitec, CPIT and Massey University (which has a presence in Auckland, Manawatu and Wellington). This work exemplifies our mission to be smarter in building pathways for our tauira, whether within our organisation or with our partner institutions. We will continue to invest in pathways that benefit our graduates and that aid development of their character, their career, their cultural knowledge and their competencies towards increasing the number of ‘transformers’ in our society. Moving forwards, this commitment will be expressed through increased masters and doctoral level provision and a return to delivering trade and vocational qualifications nationwide.
In 2011, Te Wānanga o Aotearoa initiated its journey to provide education for international tauira. Our organisation already has substantial experience and a growing reputation for delivering English language programmes within Aotearoa New Zealand. As a result, we believe we are perfectly placed to provide a globally distinctive educational experience for international tauira – one that weaves unique cultural elements through programmes and extracurricular activities. When combined with the organisation’s renowned manaakitanga and nurturing tauira support systems based in core Māori values, we have the potential to become a significant provider of education to international tauira.
We will continue to invest in pathways that benefit our graduates and aid the development of their character, their career, their cultural knowledge and their competencies towards increasing the number of ‘transformers’ in our society.
While we are working on pathways, we will also expand our provision to support our Pasifika whānau to realise their aspirations. Over recent years, we have built strong and beneficial relationships with organisations like Pacific Business Trust and Village Sports Academy. In the coming years, we will advance our commitment to our Pasifika tauira by providing pathways to meet their needs at degree level. At this point, I would like to acknowledge the relationship we have had with the Pukapuka Training Academy in Māngere, which has now ended. Work continued during the year to expand our degree portfolio, including development of a new master’s degree called He Waka Hiringa. This work is part of our commitment to increase the proportion of Te Wānanga o Aotearoa degree graduates over the coming years. This work will extend pathway options for tauira studying at Te Wānanga o Aotearoa, but will also provide options for those
This year, we further reinforced the financial stability of our organisation with a surplus of $7.28 million (an improvement on our 2010 surplus of $6.2 million). This sound result is the product of an ongoing commitment by management across the organisation to operate in a fiscally prudent manner and maintain control over expenditure. I commend the members of our management team for their vigilance in this area of our business. Our O-Tautahi operations were affected significantly by the February 22nd earthquake in Christchurch. Thankfully, none of our tauira or kaimahi was harmed, but we were forced to close our offices and classrooms: some temporarily, some permanently. After the quake, a group of Te Wānanga o Aotearoa and Open Wānanga kaimahi travelled to O-Tautahi as volunteers to support the collective efforts of the city. I know our volunteers were shocked, as I was, to see the extent of the damage. We send our thoughts and our aroha to all those who lost loved ones and those whose lives have been affected by this disaster. We remain committed to building our operations in O-Tautahi and to the ongoing provision of wānanga education in the city.
annual report 2011
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Ka pu te ruha, Ka hao te rangatahi! In 2011, after a twelve-year mission, we achieved one of our key goals of establishing a Te Wānanga o Aotearoa based secondary school initiative called Tai Wānanga. We opened our first Tai Wānanga centre, Tū Toa, in Palmerston North in 2011 in association with Tū Toa Charitable Trust. A key point of difference between mainstream education and this initiative is that Tai Wānanga aims to meet the needs of individual taiohi based on their passions while being supported within a whānau environment. All Tai Wānanga centres are based on academic excellence and are focused on cultural identity and contribution to community. 2012 will see a second Tai Wānanga established in association with Ngāti Wairere and Ngāti Mahanga in Waikato-Tainui. Based between the Crown research institute AgResearch and the University of Waikato, Tai Wānanga ki Ruakura will focus on science and innovation. Our youth strategy Mātātahi Mataora also gained momentum in 2011, welcoming a significant number of rangatahi onto our Youth Guarantee, Taikākā, STAR and Gateway programmes. These programmes help rangatahi make a successful transition from secondary education to tertiary study and mark a return to our roots – delivering education to rangatahi whose needs are not being met by secondary schools. These initiatives also add a further link in our strategy to provide cradle-to-cradle education – a seamless progression of learning from early childhood to kaumātua level, but one that also acknowledges the bridge that must occur between generations. I look forward to seeing our Mātātahi Mataora initiatives flourish in coming years. During the year, we added to our network of early childhood education centres (or kōhungahunga), establishing a centre at our Whirikoka campus. The new centre, named Whare Āmai, provides education to tamariki of tauira, kaimahi and whānau in the Gisborne community and is another example of the organisation’s commitment to cradle-to-cradle education. We hope to open more of these centres in the near future. During 2011, the Government announced it would review the way it funds Level 1 and 2 provision. This poses a huge threat to Te Wānanga o Aotearoa and to the many tauira who use our organisation as a gateway into tertiary education. This move also has the potential to destabilise the positive progress we have made during recent years. We continue to wait with concern for the outcome of the review. However, regardless of the outcome, we will adapt and continue to operate our wānanga sustainably. Once again, I thank all who have contributed to the
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performance of Te Wānanga o Aotearoa during 2011. This includes Richard Batley and members of Te Mana Whakahaere, members of Te Rautiaki Mātauranga (our academic board), members of Te Ārai Tūpono (our audit and risk management committee), members of the board of Open Wānanga and kaumātua and kuia of Te Kāhui Amorangi o Te Wānanga o Aotearoa. Of course, I also give thanks for the opportunity to work among an outstanding whānau whānui whose dedication to our kaupapa year-on-year continues to strengthen the community of Te Wānanga o Aotearoa as well as the communities we serve. And to our tauira, thank you for you choosing Te Wānanga o Aotearoa in your pursuit of knowledge and opportunity – we ask God’s blessing on you and your whānau.
Bentham Ohia Te Pouhere o Te Wānanga o Aotearoa
Nga Kaihautu Bentham Ohia Te Pouhere (Chief Executive Officer)
Ngāi Te Rangi, Ngāti Pūkenga, Ngāti Ranginui, Te Āti Awa, Ngāti Rārua MBA, BA, Dip Tchg
Bentham is a vocal proponent of the transformative power of education as a way to raise the living standards of whānau and revitalise the communities in which they live. He also sees education that leads to meaningful employment as the solution to many of the social problems we face throughout our country and our world. Having worked his way up through a broad range of teaching and management positions, Bentham now unites the staff and management of Te Wānanga o Aotearoa and leads them to achieve the vision and mission of the organisation. Together, his staff provides education to more than 30,000 tauira each year studying at 120 sites in 80 towns and cities across Aotearoa New Zealand.
Dr Shane Edwards Kaihautū - Marautanga (Curriculum and Research)
Ngāti Maniapoto PhD, MA (Hons), PGDipEcoDev, GDipHE, BEd, DipTchg, NCB
Turi Ngatai MNZM Kaihautū - Whakaū Kounga Ako (Delivery)
Ngai Te Rangi, Ngāti Ranginui PGDipEd, BEd, DipTchg
Hinerangi Raumati Kaihautū - Titiraukura (Operations)
Ngāti Mutunga, Waikato BMS, MMS, CA
Shane is a recognised and respected researcher, particularly in indigenous and education issues. He is widely published and is a sought after guest speaker at indigenous and education conferences. Shane works with his staff to create and manage a programme portfolio that balances the educational and cultural needs of tauira while maximising employment opportunities for all. Shane is also responsible for overseeing research activity across Te Wānanga o Aotearoa.
Having spent most of his working life as an educationalist and/or leader in the education sector (at primary, secondary and tertiary levels), Turi now leads his staff to deliver the unique brand of education offered by Te Wānanga o Aotearoa. Turi uses his broad experience as an inspiring leader to motivate his teaching staff to provide the high-quality, tauira-centric education that has become the hallmark of education at Te Wānanga o Aotearoa. He also works with his staff to ensure tauira receive timely, effective and appropriate academic and pastoral support to encourage and promote tauira success.
With an extensive background in investment, financial management and governance in Māori and non-Māori corporate settings, Hinerangi brings a unique and highly sought after blend of skills to her role as Kaihautū – Titiraukura. Hinerangi and her team use best-practice systems and processes to furnish the tauira and kaimahi of Te Wānanga o Aotearoa with the latest learning resources supported by up-to-date technology. These objectives are achieved while ensuring prudent management of funds to nurture the organisation’s growth and prosperity for a sustainable future.
Kingi Wetere General Manager - Open Wānanga
Ngāti Maniapoto NZCE
A successful entrepreneur and manager, Kingi has built a reputation for delivering innovative and flexible education programmes that eliminate many of the barriers that prevent people from accessing tertiary study. During more than a decade with Open Wānanga, Kingi has led his team to develop and deliver a range of home-based programmes, including the highly successful Mahi Ora and Mauri Ora programmes. He has also led the delivery of a range of popular English language programmes.
annual report 2011
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2011 - Year in Review Highlights January Tai Wānanga ki Tū Toa (a partnership between Te Wānanga o Aotearoa and Tū Toa Charitable Trust) starts the year with 52 taiohi. This is the first of a number of Te Wānanga o Aotearoa secondary school alternatives to be established. Tū Toa focuses on academic and sporting excellence with a strong infusion of tikanga.
February A magnitude 6.3 earthquake hits O-Tautahi on 22 February killing 181 people and devastating much of the inner city. Te Wānanga o Aotearoa is extremely fortunate that none of its tauira or kaimahi is harmed, but the quake shuts down the organisation’s operations in the city.
March Hinerangi Raumati officially joins the staff of Te Wānanga o Aotearoa as Kaihautū-Titiraukura (Operations). A member of the New Zealand Institute of Chartered Accountants, Hinerangi brings to the organisation extensive experience in financial management and investment in Māori and non-Māori corporate settings.
April Te Wānanga o Aotearoa hosts Ako Wānanga 2011 at Mangakōtukutuku. This highly successful symposium provides delegates with knowledge to enhance classroom practices that encourage reciprocal learning experiences. Te Pouhere Bentham Ohia receives a Lifetime Achievement Award - Te Tohu Whakamahara ki Te Arikinui Te Atairangikaahu for his services to education.
May After receiving more than 200 applications, Aotearoa Scholarship Trust awards 27 scholarships to the value of $137,000. Scholarships provide financial assistance for tauira studying at any institution (not only Te Wānanga o Aotearoa).
June Te Wānanga o Aotearoa strengthens its collaborative relationship with NorthTec by opening a site on the institution's Raumanga campus in Whangarei. The arrangement provides a vehicle that helps promote mainstream tertiary education institutions for Te Wānanga o Aotearoa tauira and provides a more seamless transition between the two organisations.
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July Te Wānanga o Aotearoa subsidiary Open English purchases DynaSpeak (an English language school) as part of its strategy to consolidate its presence in the international education market. Te Wānanga o Aotearoa begins to register graduates with Kāpuia, the organisation’s new graduate community. Kāpuia provides facilities that enable graduates to stay connected with each other and to access ongoing support from Te Wānanga o Aotearoa.
August Te Wānanga o Aotearoa hosts a panel from NZQA to accredit its newest degree, Te Mana Ao Tūroa (Taiao) – Bachelor of Māori Advancement (Environment). The panel recommends programme approval and site accreditation for Tainui, Waiariki and Whirikoka.
September Dr Rongo Wetere (the founder of Te Wānanga o Aotearoa) visits Te Puna Mātauranga in an emotional homecoming. His visit provides an opportunity for staff to acknowledge his leadership of Te Wānanga o Aotearoa and his contribution to education in Aotearoa New Zealand. Te Wānanga o Aotearoa fulfils the requirements of a $20 million suspensory loan that was part of the capital funding settlement agreement signed with the Government in 2001. The loan is converted to equity.
October Marie Panapa and Reverend Te Napi Tutewehiwehi Waaka receive Te Wānanga o Aotearoa Lifetime Achievement Awards and Te Pouhere Awards for their services to the organisation. Members of Tai Wānanga ki Tū Toa senior netball team become national champions by winning the New Zealand National Secondary School Netball Competition. They beat Mt Albert Grammar 31-30 to take out the top prize.
November Open Wānanga (a wholly-owned subsidiary of Te Wānanga o Aotearoa) celebrates its tenth anniversary. The organisation has enrolled more than 100,000 tauira since it was founded. Mātātahi Mataora holds a youth summit at Tūrangawaewae Marae in Ngāruawāhia. Two youth ambassadors are selected to provide a voice for youth at Te Wānanga o Aotearoa.
December Te Wānanga o Aotearoa records an outstanding course completion rate of 79%. Tai Wānanga ki Tū Toa records exceptional academic NCEA results for 2011 with 99% of taiohi gaining NCEA Level 1 subjects and 100% of taiohi achieving success at Levels 2 and 3. Te Wānanga o Aotearoa Group Accountant Joe Hanita wins the outstanding new member of the year award at the 2011 New Zealand Institute of Chartered Accountants Leadership Awards.
annual report 2011
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Aotearoa Scholarship Trust In 2010, Te Wānanga o Aotearoa established the Aotearoa Scholarship Trust to award scholarships and other financial assistance to support tauira from any tertiary education institution on their educational journey. The 2011 scholarship round was announced in February and 200 applications were received. The Aotearoa Scholarship Trust was honoured to award 27 scholarships to the value of $137,000. Scholarship recipients were studying at a range of institutions including Te Wānanga o Aotearoa. Award recipients were:
Memorial Awards Reone Kapea
Rewi Panapa Memorial Award
Todd Sheridan
Tane Taylor Memorial Award
Lincoln Vincent
Mike Watson Memorial Award
Sabrina Wattie
Dr Diggeress Te Kanawa Memorial Award
Special Award Lisa-Maree Myers
Te Pouhere Award Parengamihi Gardiner
Scholarships Stephen Alderdice
Kaikapo Rangihaeata
Justin Brown
Karu Rangihau
Dena Hale
Serenity Reti
Tua Hekenui
Cherie Rhind
Heather Ireland
Lolina Rudolph
Susan King
Kerry Searancke
Veronica Luke
Maria Semmens
Eruera Manuel
Shannon Te Huia
Jennifer Martin
Beverly Ann Thomas
Lisa-Maree Myers
Quinton Tunoho
Cherene Neilson-Hornblow
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Tauira roopu who attended the “Habits of the Mind” conference
TE PŪRONGO 2011
Todd Sheridan (Ngāti Hau, Te Atihaunui-a-Paparangi, Ngāti Ruaka, Ngāti Haupoto, Taranaki)
2011 recipient of the Tane Taylor Memorial Award
Tauira Profile
Tua Hekenui (Ngāti Tūwharetoa)
Te Tohu Paetahi Ng Poutoko Whakarara Oranga Bachelor of Social Work (Biculturalism in Practice) – Year 1 A passion for learning and a commitment to his community led Tua Hekenui to enrol on Te Tohu Paetahi Ngā Poutoko Whakarara Oranga - Bachelor of Social Work at Te Wānanga o Aotearoa (Porirua campus). Currently in his first year of study towards the degree, Tua has been involved with Te Wānanga o Aotearoa for more than 15 years, both as a kaimahi and as a tauira. In 2003, he started work as a kaiāwhina in Waiouru after working with local schools. Tua also worked as a pouako/kaiako with the Te Wānanga o Aotearoa programme Tū Taua in 2008. He says, ‘The Wānanga has been really good for us. I didn’t think I’d ever leave, but things came up and I moved on… In saying that, I’m still tutoring part-time and am currently a student as well.’
The Wānanga has been really good for us. I didn’t think I’d ever leave...
Tua now works as a cultural therapist with the Mental Health Directorate at Te Whare Marie ki Puketiro. Previously, he has worked in both kaupapa Māori and non-Māori services within the mental health sector, but his current focus is on creating Māori frameworks and models that will provide for greater understanding of Māori issues. Tua believes better understanding in this area will lead to truly bicultural practices; it will enhance the relationship between the cultures and enable practitioners to work alongside each other for the benefit of patients. Tua finds this work incredibly rewarding. In particular, he loves having a job that enables him to give back to his community. Tua was recently awarded a scholarship by Aotearoa Scholarship Trust, which he describes as ‘fantastic’ and says it’s a great incentive to keep on going. ‘I was a kaiako with Te Wānanga o Aotearoa for four years at Porirua campus and I absolutely loved it. During my time there, I grabbed hold of Te Kaupapa and Ngā Ture of Te Wānanga o Aotearoa. This organisation has created opportunities for me as a kaiako and now as a tauira.’ Sadly, Tua is no longer with us, having passed away in early 2012. His legacy lives on in the many contributions he made to our organisation, in the lives of the tauira he taught and in the memories of the many staff members who considered him a colleague and friend.
annual report 2011
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New Qualifications Te Wānanga o Aotearoa continued to strengthen its programme portfolio during 2011 through the development of a number of new qualifications and the review of existing qualifications. These activities ensure that programmes remain relevant to tauira and the communities in which they live. New programmes developed in 2011 were as follows.
Te Tohu Paetahi Mana Ao Tūroa (Taiao) Bachelor of Māori Advancement (Environment) Our relationship with our natural environment is coming into focus as we gain new understandings about the long-term and interconnected effects of loss of biodiversity, climate change, pollution and other human-initiated impacts on our planet. Sustainable enterprise has become the new modus operandi that will ensure our environment and the resources it offers remain available for future generations. This three-year degree focuses on advancing Māori futures by balancing Māori economic development and enterprise with sustainable practices. Balance is achieved by providing tauira with tools, strategies and understanding through exploration of the theory and application of professional and personal sustainable practices. Graduates will be sought after as environmental and sustainability advisors particularly in the primary industries, but also with agencies entrusted with balancing economic activity with environmental protection.
Taumata Raukura New Zealand Certificate in Career Preparation (Police) - Level 4 Career preparation involves learning more than just the hard skills required for the job; it includes building a range of generic skills that promote a learner to the ranks of ‘preferred candidate’. Designed in close consultation with NZ Police, Taumata Raukura – New Zealand Certificate in Career Preparation (Police) – Level 4 provides the specific and generic skills that help learners move up the list of applicants towards being preferred candidates for entry into the New Zealand Police College. This exciting new programme replaces the highly successful Certificate in Career Preparation (Police) – Level 3. The level 4 programme is founded on the principles of Kaupapa Wānanga, incorporates Māori cultural elements and values, and offers industry content that is current, relevant and applied.
National Certificate in Adult Literacy and Numeracy Education - Level 5 The National Certificate in Adult Literacy and Numeracy Education is a non-EFTS funded, professional development programme for kaiako of Te Wānanga o Aotearoa. The programme strengthens kaiako expertise in embedding multiple literacies (functional literacy and numeracy as well as critical and cultural literacy) into vocational skills programmes to raise the foundation skills of adult learners in Aotearoa New Zealand. The National Certificate in Adult Literacy and Numeracy Education is underpinned by āhuatanga and tikanga Māori and uses a framework that aligns with the values and kaupapa of Te Wānanga o Aotearoa. This approach places Te Wānanga o Aotearoa at the forefront of literacy and numeracy education designed and delivered by Māori and for Māori.
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Major Redevelopments Certificate in Māori Performing Arts - Level 4 The Certificate in Māori Performing Arts seeks to revitalise participation in toi Māori. This programme introduces tauira to kapa haka, drama, performance and oratorical skills with a deliberate focus on toi Māori and the application of āhuatanga Māori to performance studies. During the programme, tauira develop skills in performance, production and āhuatanga Māori. Tauira also develop a portfolio of work that prepares them for higher level study. Employment options for graduates include stage, film and television, the tourism industry and teaching.
Certificate in Te Arataki Manu Kōrero - Level 4 The Certificate in Te Arataki Manu Kōrero – Level 4 aims to strengthen Māori traditions and practices. Key topics include tikanga, kawa kīngitanga, karakia, whakapapa, whaikōrero, tauparapara, waiata and karanga. This programme encourages and facilitates connections between tauira and their whānau, hapū, iwi and marae leading to greater knowledge of self and community. Graduates leave this programme with enhanced te reo Māori, literacy and communication skills, and improved knowledge of tikanga Māori.
Diploma in Te Arataki Manu Kōrero - Level 5 The Diploma in Te Arataki Manu Kōrero – Level 5 builds on knowledge and skills offered in the level 4 programme. As with the level 4 programme, key topics include tikanga, kawa kīngitanga, karakia, whakapapa, whaikōrero, tauparapara, waiata and karanga. Graduates leave this programme with extended knowledge of tikanga Māori and improved skills in whaikōrero and karanga. Development of skills in research and critical analysis increase understanding of rohe, waka, whakapapa, whānau, hapū, iwi and marae histories. Aside from the many voluntary roles filled by graduates from this programme, they are sought after as advisors and participants on councils and boards around the country, as well as in teaching and education roles.
Certificate in Hauora (Elderly Health Care) - Level 4 Our ageing population is creating increased demand for carers able to provide high-quality care for kaumātua in the home (whānau caring for whānau). This level 4 programme offers learning in the fundamentals of care within the healthcare system in Aotearoa New Zealand. It provides carers with the skills to care for kaumātua as well as information needed to navigate the health system successfully and make informed decisions about care options. The programme also provides a range of strategies for carers to manage their own health and wellbeing while they provide care. Graduates from this programme are able to continue their studies in nursing or other care-related areas, or work as carers in rest homes and hospitals or privately.
annual report 2011
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Measuring Performance 2011
Statements of Service Performance Te Wānanga o Aotearoa negotiates its output performance indicators and targets with the Tertiary Education Commission as part of the investment plan process and these form an integral part of the organisation’s investment plan commitments. Negotiated performance indicators represent a balance between the objectives of the Government’s tertiary education priorities (stated in the Tertiary Education Strategy) and the strategic goals of Te Wānanga o Aotearoa. The diagram below shows the relationship between these objectives. Te Wānanga o Aotearoa performed well against its performance targets during 2011, but particularly against targets that measure the organisation’s ability to attract tauira in priority groups, retain them for the duration of their qualifications and support them to achieve success in their studies. These indicators are of particular importance to Te Wānanga o Aotearoa, as they show
TE WĀNANGA O AOTEAROA STRATEGIC GOALS
the effectiveness of educational strategies operating within the organisation. Furthermore, when tauira achieve success in these areas, they contribute to the organisation’s overall goal of achieving whānau transformation through education. The following pages describe the success of Te Wānanga o Aotearoa, its kaimahi and its tauira in achieving the output performance indicators shown in the organisation’s Investment Plan 2011-2012. The results shown in these statements of service performance are subject to validation by the Tertiary Education Commission following submission by Te Wānanga o Aotearoa of its April 2012 Single Data Return. Data for 2010 shown in this section have been extracted from Tertiary Education Commission reports titled Performance Indicator Reports, Supporting Details and Contextual Information.
TERTIARY EDUCATION STRATEGY PRIORITIES Targeting priority groups
To be a leader in positive Māori development To deliver mātauranga that drives positive cultural, social, economic and intellectual transformation To be a leader in the provision of innovative and accessible mātauranga To achieve quality with a continuous improvement philosophy
To be a good employer To promote āhuatanga Māori through our values by ethical compassion and inclusive leadership To ensure sustainability through multiple and profitable income streams To be a waka huia mātauranga Māori
To advance access to mātauranga Māori To ensure that the needs of tauira are the primary drivers for decision-making
24
TE PŪRONGO 2011
Improving system performance
Supporting quality research that helps to drive innovation
As in previous years, Te Wānanga o Aotearoa continued to attract significant numbers of tauira across all priority groups. Most significantly, the organisation increased participation by Māori and Pasifika tauira and exceeded course and qualification completion targets across all indicators. This section describes achievement of investment plan performance targets for priority groups identified in the Tertiary Education Strategy (TES).
Investment Plan Performance Commitment: Proportion of SAC eligible EFTS enrolled who are Māori In 2011, Te Wānanga o Aotearoa worked towards achieving two performance targets for Māori participation. The targets were specified as proportions of total SAC eligible EFTS consumed by Māori across two National Qualifications Framework (NQF) level groupings: 'levels 1 to 3’ and ‘level 4 and above’.
NQF Level
2010
2011
Target
1 to 3
27%
26%
28%
4 and above
25%
27%
22%
The following chart shows the percentage of EFTS consumed by tauira Māori in 2010 and 2011 for each NQF Level. 30%
25%
20%
15%
10%
5%
27%
• delivering a diverse range of programmes at levels 1 to 3 that build confidence in re-engaged learners • maintaining nil or low fees to eliminate financial barriers • offering foundation programmes that attract youth • delivering education nationally to provide access for those who are geographically isolated • providing culturally appropriate pastoral care.
SAC eligible EFTS consumed by tauira Māori studying at Te Wānanga o Aotearoa in 2010 and 2011 for each NQF level group were as follows.
26%
Over the years, Te Wānanga o Aotearoa has established a solid reputation within Māori and Pasifika communities and continues to develop initiatives that encourage younger tauira to engage with tertiary education. In recognition of its unique tauira base, the organisation has implemented systems and processes that serve the needs of its people. In addition to tauira support activities that are an integral part of every programme, Te Wānanga o Aotearoa employed the following strategies to encourage participation and support the success of those in priority groups:
Māori participation at NQF level 4 and above offset participation at levels 1 to 3, leading to lower EFTS consumption for foundation level programmes. Tauira Māori consumed 5,187 SAC eligible EFTS at levels 1 to 3, or 26% of the organisational total. This outcome is 2% below the 2011 target, and reflects the organisation’s drive to increase the number of Māori enjoying success at higher levels. The shift by Māori to higher level learning also reflects recent developments in the organisation’s programme portfolio, which have seen the addition of new diploma and degree qualifications that have proved particularly appealing to tauira Māori.
25%
Since inception, Te Wānanga o Aotearoa has worked to increase educational opportunities for specific priority groups that continue to be under-represented across the tertiary education sector. Groups targeted as part of this ongoing commitment align with priority groups identified in the Tertiary Education Strategy, which aims to: • increase the number of Māori students enjoying success at higher levels • increase the number of Pasifika students achieving at higher levels • increase the number of young people (aged under 25) achieving qualifications at level 4 and above, particularly degrees • improve literacy, language, numeracy and skills outcomes for students studying at levels 1 to 3.
In 2011, Te Wānanga o Aotearoa exceeded by 5% its target of 22% of total SAC eligible EFTS being consumed by tauira Māori studying at NQF level 4 and above. Tauira Māori consumed 5,527 SAC eligible EFTS during the year, or 27% of the total. This strong result demonstrates the organisation’s continuing success at attracting and retaining Māori in higher level qualifications.
27%
Targeting Priority Groups
0%
2010 NQF Level 1 to 3
annual report 2011
2011 NQF Level 4 and above
Target
25
Investment Plan Performance Commitment: Proportion of SAC eligible EFTS enrolled who are Pasifika In recent years, Te Wānanga o Aotearoa has attracted rapidly growing numbers of Pasifika people with tauira in this demographic close to doubling in the past five years (from 1,817 tauira in 2006 to 3,517 tauira in 2011). In 2011, Te Wānanga o Aotearoa exceeded by 2% its performance target of 3% of SAC eligible EFTS consumed by Pasifika tauira studying at NQF level 4 and above. The organisation also achieved its 2011 target of 6% of SAC eligible EFTS consumed by Pasifika tauira studying at NQF levels 1 to 3. The proportions of total SAC eligible EFTS consumed by Pasifika tauira studying at Te Wānanga o Aotearoa in 2010 and 2011 for each NQF level group were as follows.
NQF Level
2010
2011
Target
Levels 1 to 3
6%
6%
6%
Levels 4 and above
4%
5%
3%
The organisation was able to achieve these targets by working alongside the Pasifika community (particularly the Village Sports Academy) to identify needs, matching these with employment areas likely to experience growth, and then developing programmes to provide the appropriate employment skills. Programmes most sought after by Pasifika tauira studying at Te Wānanga o Aotearoa were those in the fields of computing, business administration and sports. The following chart shows the percentages of total SAC eligible EFTS consumed by Pasifika tauira in 2010 and 2011 for each NQF level group. 6%
4%
Investment Plan Performance Commitment: Proportion of SAC eligible EFTS enrolled who are aged under 25 years Te Wānanga o Aotearoa was originally founded to provide educational opportunities for young people whose needs were not being met by the secondary education system. This philosophy continues to drive initiatives designed to engage young learners as they transition from secondary education to the tertiary sector. Te Wānanga o Aotearoa significantly exceeded its target for engaging tauira aged less than 25 years at NQF level 4 and above. The performance target was 3% of total SAC eligible EFTS. Tauira in this demographic consumed twice this proportion, or 6% of total organisational EFTS. The 2011 target for the proportion of total SAC eligible EFTS consumed by tauira aged less than 25 years studying at NQF levels 1 to 3 was 8%. Te Wānanga o Aotearoa achieved this target with 1,637 (8%) of total SAC eligible EFTS being consumed by tauira within this demographic. Achievement of this indicator results largely from the organisation’s ongoing commitment to engaging young people. This commitment was recently strengthened through the introduction of a range of youth initiatives referred to collectively as Te Hiringa Rangatahi. Te Hiringa Rangatahi initiatives include the following. • Taik k is run in partnership with secondary schools and provides alternative education options for those whose needs are not being met at school. The programme promotes achievement for tauira aged 13 to 15 years who have become disengaged from secondary schooling. • Secondary Tertiary Alignment Resource (STAR) offers short courses that provide secondary school learners with opportunities to sample tertiary education and earn unit standards while remaining enrolled at secondary school. STAR courses at Te Wānanga o Aotearoa include learning in Māori arts, cultural knowledge and history, as well as a programme that introduces students to the police preparation programme run by Te Wānanga o Aotearoa. • Youth Guarantee provides educational opportunities for 16 and 17 year olds whose needs are not being met by their secondary schools. Tauira choose from sports or computing/ business administration programmes. Course completion rates of 70% show that these programmes, when coupled with effective and appropriate tauira support systems, can engage tauira successfully.
0
2010 NQF Level 1 to 3
26
5%
6%
4%
6%
2%
2011 NQF Level 4 and above
TE PŪRONGO 2011
Target
Te Hiringa Rangatahi initiatives provide tauira with opportunities to experience tertiary-level study and effectively operate as feeder programmes for Te Wānanga o Aotearoa. Taikākā and STAR programmes are funded from outside the tertiary education vote; Youth Guarantee programmes are funded from within it.
The proportions of SAC eligible EFTS consumed by tauira aged less than 25 years studying at Te Wānanga o Aotearoa in 2010 and 2011 for each NQF level group were as follows. NQF Level
2010
2011
Target
Levels 1 to 3
8%
8%
8%
Levels 4 and above
6%
6%
3%
The following chart shows the percentages of EFTS consumed by tauira under the age of 25 years in 2010 and 2011 for each NQF level group.
Proportion of level 1 to 3 courses that contain embedded literacy and numeracy
2010
2011
Target
N/A
73%
23%
Improving System Performance Te Wānanga o Aotearoa fully understands the importance of maintaining a high performance organisation, not only to support the effectiveness of the tertiary sector as a whole, but also to ensure tauira are afforded every chance of achieving success in their studies.
8%
6%
6%
8%
6%
8%
4%
2%
The proportion of courses delivered by Te Wānanga o Aotearoa that contain embedded literacy components.
0
2010 NQF Level 1 to 3
2011 NQF Level 4 and above
The organisation’s performance commitments, negotiated during the investment plan process, are expressed as course completion rates, qualification completion rates, tauira retention rates, and tauira progression rates. Among other things, these indicators reflect the quality of qualifications, teaching methods and learning environments, as well as the quality of pastoral care provided by the organisation.
Target
Investment Plan Performance Commitment: Proportion of level 1 to 3 courses that contain embedded literacy and numeracy Many tauira studying at Te Wānanga o Aotearoa have previously had negative experiences with the secondary education system and, as a result, have been prevented from gaining basic skills that many New Zealanders take for granted. Key amongst these are literacy and numeracy. Te Wānanga o Aotearoa implemented a strategy called Te Whakapahuhu Kahukura to embed literacy and numeracy learning in qualifications offered by the organisation. Te Whakapahuhu Kahukura takes a holistic approach to these areas of learning by recognising functional, critical and cultural literacies as essential elements in preparing tauira to learn and achieve to their fullest potential. Te Wānanga o Aotearoa aimed to have literacy and numeracy components embedded in 23% of its programmes offered at NQF levels 1 to 3 in 2011. By the end of the year, 73% of courses had embedded literacy components. This considerable achievement was accomplished through the commitment of additional resources to this project.
Investment Plan Performance Commitment: Successful course completion rate for all students (SAC Eligible EFTS) In this context, a ‘course’ is a component of study that makes up a qualification. Course completion indicators provide a shortterm view of tauira achievement, especially for those completing multi-year qualifications. They reflect the effectiveness of teaching and learning strategies and support systems in helping tauira achieve components of study. Te Wānanga o Aotearoa significantly exceeded its course completion targets across all NQF levels in 2011. The organisation also recorded improvement on 2010 course completion results. Course completion rates for all tauira studying at Te Wānanga o Aotearoa in 2010 and 2011 were as follows. NQF Levels
2010
2011
Target
All levels
76%
79%
73%
Levels 1 to 3
77%
79%
75%
Levels 4 and above
76%
79%
71%
annual report 2011
27
The following chart shows the improvements in course completion rates for all tauira studying at Te Wānanga o Aotearoa in 2010 and 2011.
The following chart shows the improvements in course completion rates achieved by TES priority groups between 2010 and 2011 for NQF levels 1 to 3. 80%
80%
70% 70%
Other notable results are those for tauira Māori studying at level 4 and above and those for tauira less than 25 years studying at levels 1 to 3 (both groups exceeded their targets by 7%). Course completion rates for all TES priority groups studying with Te Wānanga o Aotearoa in 2010 and 2011 were as follows. Priority Group NQF Level
2010
2011
Target
Levels 1 to 3
71%
74%
70%
Levels 4 and above
76%
76%
69%
Levels 1 to 3
78%
78%
73%
Levels 4 and above
75%
81%
70%
Levels 1 to 3
68%
69%
62%
Levels 4 and above
70%
75%
64%
Under 25 years
28
TE PŪRONGO 2011
69%
78%
78%
68% 2011
Target
The following chart shows the improvements in course completion rates achieved by TES priority groups between 2010 and 2011 for NQF levels 4 and above. 80%
70%
60%
50%
Māori
Pasifika 2010
75%
Of particular note are achievement rates for tauira less than 25 years and Pasifika tauira studying at level 4 and above (both groups exceeded their target by 11%).
Under 25 years
70%
Target
81%
NQF Level 4 and above
In 2011, Te Wānanga o Aotearoa recorded high course completion results for all TES priority groups (Māori, Pasifika and those less than 25 years) across all NQF levels. All priority groups exceeded their course completion targets.
Pasifika
74%
79%
2010
2011
Investment Plan Performance Commitment: Successful Course Completion for TES Priority Groups
Māori
Pasifika
75%
NQF Level 1 to 3
Māori
76%
All levels
50%
76%
2010
79%
79%
76%
77%
50%
76%
60%
71%
60%
Under 25 years 2011
Target
Investment Plan Performance Commitment: Qualification completion rate for all students (SAC Eligible EFTS) In this context, a qualification is made up of a set of courses that can be delivered over a time period that can range from 18 weeks to a number of years. Qualification completion indicators provide a longer term view of tauira achievement and an organisation’s effectiveness in supporting success in its tauira. These indicators are important because tauira who complete a qualification have better future economic prospects than those who complete a number of courses but do not achieve a qualification.
Tauira at Te Wānanga o Aotearoa significantly exceeded organisational qualification completion targets during 2011. Most notable in these results were tauira studying at level 4 and above, who improved on the 2010 qualification achievement rate for this group by 12% (from 60% in 2010 to 72% in 2011). Also of note were tauira studying at levels 1 to 3, who exceeded their target by 7%. Qualification completion rates across all NQF levels for all tauira who studied at Te Wānanga o Aotearoa in 2010 and 2011 were as follows. NQF Levels
2010
2011
Target
All levels
66%
71%
66%
Levels 1 to 3
70%
70%
63%
Levels 4 and above
60%
72%
69%
Qualification completion rates for TES priority groups studying with Te Wānanga o Aotearoa in 2010 and 2011 were as follows. Priority Group Māori
Pasifika
Under 25 years
NQF Level
2010
2011
Target
Levels 1 to 3
63%
63%
57%
Levels 4 and above
54%
66%
65%
Levels 1 to 3
71%
70%
63%
Levels 4 and above
65%
80%
78%
Levels 1 to 3
58%
56%
52%
Levels 4 and above
56%
58%
61%
The following chart shows improvements in qualification completion rates achieved made by TES priority groups in 2010 and 2011 for NZQF levels 1 to 3.
The following chart shows qualification completion rates achieved by all tauira studying at Te Wānanga o Aotearoa in 2010 and 2011.
80%
60% 80% 40%
2010 All levels
NQF Level 1 to 3
72%
70%
71%
60%
70%
0%
66%
Māori 20%
2011 NQF Level 4 and above
Target
Pasifika 2010
58% 56%
70%
0%
71%
40%
63%
20%
63%
60%
Under 25 years 2011
Target
The following chart shows qualification completion rates achieved by TES priority groups in 2010 and 2011 for NZQF levels 4 and above. 80%
Māori
Pasifika 2010
annual report 2011
58%
56%
0%
80%
20%
65%
Tauira under 25 years studying at level 4 and above fell short of their target by 3% in 2011. Additional support systems will be put in place to support this group in 2012 and subsequent years.
40%
66%
Qualification completion targets for Māori, Pasifika and those under 25 years (TES priority groups) were successfully exceeded for five of the six performance indicators relating to these demographics. Most notable among the results were Pasifika tauira and tauira Māori studying at levels 1 to 3, who exceeded their targets by 7% and 6% respectively.
60%
54%
Investment Plan Performance Commitment: Successful Qualification Completion for TES Priority Groups
Under 25 years 2011
Target
29
Investment Plan Performance Commitment: Student retention rate for all students (SAC Eligible EFTS)
The following table and chart show tauira progression rates for tauira studying at NQF levels 1 to 3 in 2010 and 2011.
In this context, tauira retention (also called the ‘student continuation or completion rate’) shows the proportion of individual tauira enrolled in one year who either reenrol in any course at the same TEO in the following year or successfully complete their qualification. The student retention rate is a measure of the effectiveness of pastoral support and classroom strategies in ensuring that tauira remain engaged in and achieve success in tertiary study. In 2011, Te Wānanga o Aotearoa exceeded its student retention rate target by 7%. This result is a 3% improvement on the organisation’s 2010 result. The following table and chart show student retention results for 2010 and 2011 with the target for 2011.
Student retention rate
2010
2011
Target
68%
71%
64%
68%
2010
0%
20%
40%
60%
40%
2011
38% 0%
10%
Target
40%
38%
39%
20%
30%
40% Target
Organisational Performance Te Wānanga o Aotearoa is committed to ensuring that its unique and sought after brand of education remains available for future generations. As a result, ongoing financial viability remains a key goal in assuring the sustainability of the organisation.
80% Target
Investment Plan Performance Commitment: Student progression for students (SAC Eligible EFTS) at NQF Levels 1 to 3 The tauira progression rate shows the proportion of tauira who progress to study at a higher level (either at Te Wānanga o Aotearoa or at another institution) after completing a qualification. The indicator applies to tauira studying at NQF levels 1 to 3 only. Progression indicates whether tauira who study at foundation level are gaining the skills and confidence to study at higher levels. The tauira progression rate target for Te Wānanga o Aotearoa in 2011 was 39%, and the organisation achieved a progression rate of 38% for the year. Te Wānanga o Aotearoa acknowledges that progression is an important indicator of the ability of tauira following a pathway to higher levels of education and will commit additional resources to improve its performance in this area in 2012.
30
2010
2011
The Tertiary Education Commission uses the Financial Monitoring Framework to establish a risk rating for each tertiary education organisation it funds. The framework has a risk rating scale from low through moderate to high risk.
71%
2011
Student progression
2010
TE PŪRONGO 2011
The investment plan performance commitment target for Te Wānanga o Aotearoa in 2011 was to receive a rating of 'Low Risk'. During the year, the Tertiary Education Commission assessed Te Wānanga o Aotearoa against the Financial Monitoring Framework and returned a result of 'Low Risk'.
Supporting quality research that helps drive innovation Te Wānanga o Aotearoa is charged with the responsibility of providing leadership for the tertiary sector in the area of mātauranga Māori. Responsible leadership in this field relies on developing a common ground on which can be built understandings that are progressive, transparent and accountable to all parties. This is achieved through a framework founded on Māori epistemologies and on the essential principles of āhuatanga and tikanga Māori. The term rangahau describes research activities occurring at Te Wānanga o Aotearoa, the goals of which are: • to increase the number of Māori learners engaging in rangahau activities • to strengthen kaimahi capability and engagement in rangahau related to mātauranga Māori • to disseminate rangahau findings to enhance teaching and learning. During 2011, 140 kaimahi delivered presentations at national and international conferences. Kaimahi also published 113 research papers. Among other activities that contributed to meeting its rangahau objectives, Te Wānanga o Aotearoa hosted the Wānanga Intelligentsia Symposium – Moving Beyond the Academy. This symposium provided a forum for indigenous and non-indigenous scholars to share rangahau that challenges assumptions and develops new frontiers of knowledge. He Pātaka Tāngata, He Pātaka Kai 2011 (the research register of Te Wānanga o Aotearoa) contains a full list of scholarly activity undertaken at the organisation during 2011.
Tauira Information Tauira Satisfaction
Tauira Engagement
The 2011 Tauira Graduate Survey indicated high levels of satisfaction and positive outcomes for tauira. Some highlights from the survey are:
Te Wānanga o Aotearoa is committed to providing educational opportunities through its national network of campuses and delivery sites. Tauira engagement is measured by the number of tauira enrolling at Te Wānanga o Aotearoa and the number of EFTS consumed each year.
95%
Graduates who would recommend their programme of study to other people
During 2011, Te Wānanga o Aotearoa recorded a decrease in both the number of tauira enrolling (-1,104) and the number of EFTS consumed (-1,243). These decreases are in part a result of Te Wānanga o Aotearoa shifting its mix of provision to more degree-level qualifications and qualifications with higher funding rates in an environment of government fiscal constraint. The following chart show tauira numbers for 2009 to 2011.
Graduates who said their programme of study met their expectations
91%
2009
36,695
2010
35,591
2011
32,500 0
10,000
20,000
30,000
40,000
Source: December 2011 SDR
In 2011, Te Wānanga o Aotearoa consumed 20,417 SAC EFTS against a target of 20,500 SAC EFTS. The variation between the target and consumed EFTS is 83 consumed EFTS or 0.41%. This variation falls within the ±3% threshold set down by the Tertiary Education Commission. The following chart show consumed EFTS for 2009 to 2011.
62%
Graduates who said that studying at Te Wānanga o Aotearoa improved their employment opportunities
2009
21,210
2010
21,660
2011
20,417 0
10,000
Source: December 2011 SDR
32
TE PŪRONGO 2011
20,000
30,000
Tauira Profile
Lisa Maree Myers (Ngāpuhi) Te Korowai Ākonga: Bachelor of Teaching (Primary) – Year 2 Combining skills in graphic design, te reo Māori and kapa haka with a Korowai Ākonga teaching qualification will make LisaMaree Myers highly sought after once she completes her studies. A high achiever, Lisa-Maree attended James Cook High School (Manurewa) where she was head girl. She excelled in graphic design, te reo Māori and media studies, and received the Fraser Cup for all round school excellence. She also received an honorary medal for school services and the Kawiti Tupaea Memorial Trophy for her contribution to te reo Māori.
I have friends who are studying at other tertiary providers and they’re really struggling, as they don’t have the same support. I’m loving it, absolutely loving it.
Now 21 years old, Lisa-Maree already has her diploma in graphic design from NATCOLL and is currently studying towards Te Korowai Ākonga, the bachelor of teaching qualification at the Manukau campus of Te Wānanga o Aotearoa. Her plan is to finish her studies and then work in primary schools for a few years before moving to a secondary school to teach design. Lisa-Maree has always been committed to te reo Māori and kapa haka saying, ‘I lived it and breathed it for five years, and even after that I had to keep going back’. In fact, Lisa-Maree is still heavily involved at James Cook High School tutoring the kapa haka group and working as a tutor of te reo Māori at the Taonga Teen Parent Unit. Lisa-Maree has two young children of her own and is an example of how, with a lot of determination and a little support, parenting, working and studying at a young age can be done. Talking about her decision to study at Te Wānanga o Aotearoa, Lisa-Maree says, ‘I had applied to another tertiary provider, but the course was full. A friend of mine suggested Te Wānanga o Aotearoa and I’m so glad I did now: everything suits. It’s community-based, it fits with my commitment to the Māori culture, the hours are suited to a family lifestyle, it’s close to home and the whole campus is whānau-oriented. I have friends who are studying at other tertiary providers and they’re really struggling, as they don’t have the same support. I’m loving it, absolutely loving it.’ Lisa-Maree is one of four 2011 recipients of a $5,000 Te Korowai Ākonga scholarship from the Aotearoa Scholarship Trust.
annual report 2011
33
Tauira Demographics Te Wānanga o Aotearoa has an ongoing commitment to supporting equal opportunity access to tertiary education. This is reflected in the diversity of tauira who enrol with the organisation. The tauira demographic profile of Te Wānanga o Aotearoa reflects areas of need within the communities served by the organisation. Tauira demographics have remained relatively stable for the past three years as Te Wānanga o Aotearoa continues to attract high numbers of Māori, women and people over 25 years of age.
The following chart shows ethnicity statistics for tauira enrolling with the organisation in 2011.
9%
28%
48%
Tauira Age Since 2009, there has been a 2% increase in the proportion of tauira aged less than 24 years as a result of Te Hiringa Rangatahi (youth initiatives). This increase is reflected in a decrease in the proportion of tauira from the other age groups.
11%
The following chart shows tauira age demographic statistics for 2011. Māori
Source: December 2011 SDR
Asian
European
Other
Tauira Gender In line with previous years, Te Wānanga o Aotearoa continued to attract a high proportion of females in 2011; the year saw a 2% increase in the number of females studying with the organisation to 69%.
53%
The following chart shows the gender profile for tauira in 2011.
40+
25-39
<24
31%
Tauira Ethnicity
69%
Te Wānanga o Aotearoa is the largest single provider of tertiary education to Māori throughout Aotearoa New Zealand. In 2011, 16,696 tauira indicated they were of Māori descent, which equates to 51% of tauira enrolled at Te Wānanga o Aotearoa.
Source: December 2011 SDR
34
Pasifika
Source: December 2011 SDR * Total exceeds 100% of as some tauira identify with more than one ethnicity
15% 32%
9%
TE PŪRONGO 2011
Female
Male
Prior Activity Profile The tauira prior activity profile has remained relatively constant for the past three years. Exceptions include a decrease of 4% in the proportion of tauira enrolling directly from the workforce and a 3% increase in those tauira who were non-workforce prior to enrolling. The prior activity profile of tauira informs the types of student support services required. The following chart shows activities tauira were engaged in immediately prior to enrolling with Te Wānanga o Aotearoa in 2011.
1% 2% 2%
17% 45%
33% Non-workforce
Workforce
Tertiary
Secondary
Overseas
Other
Source: Tauira Database
Tauira with Impairments As part of the organisation’s commitment to reducing barriers to education, Te Wānanga o Aotearoa ensures tauira with impairments have the tools they require to be successful in their studies. In 2011, 11% of tauira enrolling at Te Wānanga o Aotearoa reported having an impairment compared with 5% across all tertiary education providers in 2010. The following table shows the proportion of tauira who enrolled with Te Wānanga o Aotearoa between 2009 and 2011 who reported having an impairment which required additional support or resources. Information is drawn from the tauira database of Te Wānanga o Aotearoa.
2009
10%
2010
11%
2011
11% 0%
2%
4%
6%
8%
10%
12%
Source: Tauira Database
annual report 2011
35
Kaimahi Information The commitment of Te Wānanga o Aotearoa to ensuring equal opportunities for its tauira extends to equal opportunities for kaimahi. Equal opportunities programmes include familyfriendly environments, flexible working options and support for kaimahi to undertake further studies that enable career progression.
Kaimahi gender profile The kaimahi gender profile has remained constant over the past three years. The following chart shows the gender profile for kaimahi in 2011.
Kaimahi numbers Full-time equivalent (FTE) employee numbers at Te Wānanga o Aotearoa grew by 13 FTEs in 2011. The following chart shows FTE employee numbers for the period 2009 to 2011.
2009
1,033
2010
1,085
2011
1,098
39% 61%
0
500
1,000
1,500
Source: December 2011 SDR
Source: December 2011 SDR
Female
Male
Kaimahi ethnicity profile
Kaimahi capability development
One per cent increases were recorded in the proportion of Māori and Pasifika kaimahi employed at Te Wānanga o Aotearoa in 2011. The following chart shows the kaimahi ethnicity profile for 2011.
Te Wānanga o Aotearoa is committed to providing learning and development opportunities that equip and empower kaimahi to achieve excellence. By supporting kaimahi to expand their skills and knowledge, Te Wānanga o Aotearoa ensures that tauira receive the support and resources necessary for them to achieve their aspirations.
3%
4% 5%
In 2011, Te Wānanga o Aotearoa kaimahi attended 2,896 learning and development events. These events ranged from workshops to conferences and academic study. This is a significant increase from 2010 and reflects the organisation’s ongoing commitment to strengthening kaimahi capability. The following table shows the learning events attended by kaimahi for 2009 to 2010.
6%
10% 73%
Māori
European
Pasifika
Asian
Other
1,591
2010
1,799
2011
2,896
Not stated 0
Source: December 2011 SDR * Total exceeds 100% as some kaimahi identify with more than one ethnicity.
36
2009
TE PŪRONGO 2011
1,000
Source: December 2011 SDR
2,000
3,000
Wānanga Ora Each year, Te Wānanga o Aotearoa completes a kaimahi satisfaction survey called Wānanga Ora. The survey assists the organisation to gather information on kaimahi understanding of the organisation’s strategic direction, values, goals, performance and satisfaction with management. In 2011, the survey response rate increased by 17% to 47% compared with the 2010 response rate. Job satisfaction levels of 'highly satisfied' and 'satisfied' were recorded at 80%, a 3% increase on 2010 results. Ninety-three per cent of kaimahi felt that Te Wānanga o Aotearoa was delivering on its strategy to drive positive cultural, social and economic transformation. Other key highlights were as follows.
Kaimahi who said that Te Wānanga o Aotearoa was delivering on its strategy
94% Kaimahi who believe that Te Wānanga o Aotearoa drives positive cultural, social and economic transformation
93% Kaimahi who are proud to work for Te Wānanga o Aotearoa
93.2%
Financial Report 2011
Mangak tukutuku Campus, Hamilton
Financial Summary Results for the group A comparison of 2011 performance for the Group against budget and 2010 results is shown in the table below. Actual 2011 $’000
Budget 2011 $’000
TEC guidelines
Surplus $
7,286
6,134
N/A
Surplus %
4.8%
4.0%
3-5%
Comprehensive Income
7,286
6,134
N/A
8,782
Cash*
59,690
50,037
N/A
53,855
1.13
1.09
1.08
33,844
25,570
N/A
25,815
133,778
130,691
N/A
126,492
Cash Inflows/Cash Outflows Working Capital Net Assets
Performance against guidelines
Actual 2010 $’000
6,217 ↑
4.1%
↑
1.08
* Cash includes cash and other financial assets in both current and non-current assets.
Overall financial performance
Income
The results show a solid performance by the organisation as follows: • The Tertiary Education Commission, having observed Te Wānanga o Aotearoa consistently achieving financial criteria set down for tertiary institutions, has assessed the institution as ‘low risk’. • All budget targets were achieved. • Working capital continues to grow when compared with previous years. • Net assets (equity) have increased by $7 million during the year. • Te Wānanga o Aotearoa continues to have healthy cash reserves.
The profile of our income streams is shown in the table below.
Equivalent Full Time Students (EFTS) Our total consumed EFTS for the 2011 year was 20,417 – a decrease of 5.7% (1,243 EFTS) on 2010 results. The decrease in EFTS came from reduced enrolments on business programmes, Mahi Ora, Mauri Ora and Te Tohu Mātauranga. Our highest enrolling programmes were the same as last year – being Te Ara Reo Māori, Mauri Ora, and computing, business, English language, social sciences, and health and sports programmes. Te Wānanga o Aotearoa achieved 98.75% of EFTS funding and 98.9% of EFTS numbers. As this funding value falls within the TEC threshold (±3%), the organisation received 100% of its allocated funding for the year. The reduction in EFTS from 2010 to 2011 is also reflected in lower than budgeted tauira fees income along with lower than budgeted expenditure for teaching and tauira resources.
Source
2011 2010 2009 2008 2007
Government funding
89%
90%
90%
92%
90%
Student fees
4%
4%
3%
2%
2%
Other (e.g. interest, joint ventures)
7%
6%
7%
6%
8%
The income profile for 2011 remained consistent with the profile from previous years. Government funding remains the primary source of revenue for the organisation; however, this decreased when compared with 2010, mainly as a result of the Quality Reinvestment Plan being completed. Student fees, contract income and interest earnings continue to increase steadily.
Expenditure The profile of our expenditure is shown in the table below. Source
2011 2010 2009 2008 2007
Personnel Costs
57%
55%
52%
52%
49%
Resources/Administration
29%
31%
34%
32%
32%
Property Costs
8%
8%
8%
8%
8%
Depreciation
5%
5%
6%
7%
9%
Impairment of Assets
1%
1%
-
1%
2%
annual report 2011
41
Personnel costs continue to increase relative to other expenditure types. This is due to a number of factors including employing staff with higher qualifications, employing staff rather than contractors, increasing support staff for our tauira and general cost of living increases. Resource and administration costs have continued to decrease as a result of management’s focus on keeping variable costs under tight control. We have entered into a number of procurement contracts which are enabling us to gain better value for money than in previous years. Property costs have remained fairly stable for the past five years. This is a result of our property rationalisation that occurred in earlier years and an ongoing commitment to ensuring we maximise utilisation of our existing space. Depreciation costs have steadily decreased over the past five years as a result of rationalising our balance sheet and changing our capitalisation thresholds.
Working Capital The organisation had a positive working capital balance at the end of the year of $33.8 million. This is an increase of $8 million on the 2010 result. The increase was created through current assets increasing (particularly short term financial assets); however, this was partially offset by current liabilities increasing as well (in particular, creditors and other payables).
Non-current Assets Overall, non-current assets decreased by $0.7 million. This resulted from a decrease in longer term investments of $3.7 million and was offset by the purchase of property, plant and equipment ($2.5 million). Twelve programmes were developed during the year along with the purchase of software at a total cost of $5.4 million. As a result of amortisation and impairment, there was little movement over the year in intangible assets.
Comprehensive Income Land and buildings were revalued in 2010 and are due to be revalued again in 2012. For 2011, we have satisfied ourselves that there has been no material shift in property values and have therefore not undertaken a formal valuation exercise.
Net Assets Net assets as at year end are now $133.8 million – an increase of $7.3 million on 2010.
Cash Flow
Financial Position Cash and Cash Equivalents Cash, cash equivalents and other financial assets in 2011 exceeded budget by $9.6 million. We are $5.3 million down on cash, $16.6 million up on short term deposits and $0.7 million down on long term investments when compared with budget. This variance results from less than anticipated spend on property, plant and equipment and programme development. It also results from better than budgeted cash flow from operating activities, in particular payments to suppliers. Over the year, we increased our investment in short term financial assets with maturities from 3-12 months by $8.9 million; however, during the same period we decreased our investment in long term financial assets with maturities of more than 12 months by $3.6 million. This enabled us to continue to gain reasonable income from interest earnings.
42
TE PŪRONGO 2011
The strong closing cash position for the year shows the results of a focused approach to maximising our earning potential from our surplus cash. During 2011, we achieved interest revenue of $3.5 million –slightly above the amount received in 2010. This strong result was achieved through investing in investment-rated financial institutions and varying lengths of deposit terms within our credit risk criteria. The average interest rate for cash and current financial assets in 2011 was 4.01%. This is a decrease of 1.41% from the 2010 result. During 2011, our cash and cash equivalents (both short and long term) increased from $54 million to $60 million. The net surplus for the year was $7.3 million; however, when noncash items are removed, net operating inflow of cash to the organisation was $16.9 million. We had a net cash outflow of $16 million on investing activities. This expenditure relates mainly to property, plant and equipment, and programme development. We developed 12 new programmes in 2011, compared with 13 in 2010. The concentration in 2011, as was the case in 2010, on property, plant and equipment has been the completion of major improvements on many of our large sites rather than the acquisition of new buildings.
Statement of Responsibility
In the financial year ended 31 December 2011, Te Mana Whakahaere (the Council) and the management of Te Wānanga o Aotearoa were responsible for: • preparation of the annual financial statements and statements of service performance and the judgements used in them • establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting In the opinion of Te Mana Whakahaere and management of Te Wānanga o Aotearoa, the financial statements and statements of service performance fairly reflect the financial position and operations of Te Wānanga o Aotearoa for the year ended 31 December 2011.
Richard Batley Chairperson - Te Mana Whakahaere CA, BMS (Waikato)
Bentham Ohia Te Pouhere (CEO) MBA, BA, DipTchg
28 March 2012
28 March 2012
Date
Date
annual report 2011
43
Independent Auditor’s Report
To the readers of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka and group’s financial statements and statement of service performance for the year ended 31 December 2011. The Auditor General is the auditor of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka (the Wānanga) and group. The Auditor General has appointed me, B H Halford, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the Wānanga and group on her behalf. We have audited: • the financial statements of the Wānanga and group on pages 46 to 92, that comprise the statement of financial position as at 31 December 2011, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and • the statement of service performance of the Wānanga and group on pages 24 to 31. Opinion In our opinion: • the financial statements of the Wānanga and group on pages 46 to 92: - comply with generally accepted accounting practice in New Zealand; and - fairly reflect the Wānanga and group’s: · financial position as at 31 December 2011; and · financial performance and cash flows for the year ended on that date; • the statement of service performance of the Wānanga and group on pages 24 to 31 fairly reflects the Wānanga and group’s service performance achievements measured against the performance targets adopted for the year ended 31 December 2011. Our audit was completed on 28 March 2012. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and statement of service performance are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and statement of service performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and statement of service performance, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Wānanga and group’s preparation of the financial statements and statement of service performance that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Wānanga and group’s internal control.
44
TE PŪRONGO 2011
An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the Council; • the adequacy of all disclosures in the financial statements and statement of service performance; and • the overall presentation of the financial statements and statement of service performance. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. Responsibilities of the Council The Council is responsible for preparing financial statements that: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Wānanga and group’s financial position, financial performance and cash flows. The Council is also responsible for preparing a statement of service performance that fairly reflects the Wānanga and group’s service performance achievements. The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004. Independence When carrying out the audit, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants. Other than the audit, we have no relationship with or interests in the Wānanga or any of its subsidiaries.
B H Halford Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand
annual report 2011
45
Financial Statements Statement of Comprehensive Income for the year ended 31 december 2011
Notes
Group Actual Dec-11 $’000
Group Budget Dec-11 $’000
Parent Actual Dec-11 $’000
Parent Budget Dec-11 $’000
Group Actual Dec-10 $’000
Parent Actual Dec-10 $’000
Government funding
1(a)
134,877
135,670
134,877
135,670
138,865
138,865
Tuition fees
1(b)
6,286
6,181
5,866
6,181
5,478
5,478
3,455
3,419
3,287
3,240
3,189
3,034
6,386
6,866
14,118
14,830
5,955
13,932
151,004
152,136
158,148
159,921
153,487
161,309
2
81,529
82,889
73,870
75,538
80,409
74,023
12,13
7,795
8,412
7,038
7,832
7,852
7,130
Income
Interest income Other income
1(c)
Total income
Expenditure Personnel costs Depreciation and amortisation expense Finance costs
3
-
-
-
-
41
41
Other expenses
4
54,394
54,701
68,784
70,022
58,968
76,242
143,718
146,002
149,692
153,392
147,270
157,436
7,286
6,134
8,456
6,529
6,217
3,873
-
-
-
-
2,565
2,394
-
-
-
-
2,565
2,394
7,286
6,134
8,456
6,529
8,782
6,267
Total expenditure Surplus/(deficit)
Other comprehensive income Gains/(loss) on property revaluations
17
Total other comprehensive income Total comprehensive income
Explanation of significant variances against budget is detailed in note 22. The accompanying notes form part of these financial statements.
46
TE PŪRONGO 2011
Statement of Changes in Equity for the year ended 31 december 2011
Group Actual Dec-11 $’000
Group Budget Dec-11 $’000
Parent Actual Dec-11 $’000
Parent Budget Dec-11 $’000
Group Actual Dec-10 $’000
Parent Actual Dec-10 $’000
126,492
124,557
108,047
106,804
112,222
96,292
7,286
6,134
8,456
6,529
6,217
3,873
Other comprehensive income
-
-
-
-
2,565
2,394
Total comprehensive income
7,286
6,134
8,456
6,529
8,782
6,267
-
-
-
-
488
488
-
-
-
-
5,000
5,000
133,778
130,691
116,503
113,333
126,492
108,047
Notes Balance at 1 January
Comprehensive income Surplus/(deficit)
Non-comprehensive income items Capital contributions from the Crown
17
Suspensory loans from the Crown Balance at 31 December
17
The accompanying notes form part of these financial statements.
annual report 2011
47
Statement of Financial Position as at 31 december 2011
Notes
Group Actual Dec-11 $’000
Group Budget Dec-11 $’000
Parent Actual Dec-11 $’000
Parent Budget Dec-11 $’000
Group Actual Dec-10 $’000
Parent Actual Dec-10 $’000
Cash and cash equivalents
5
10,223
15,537
9,191
9,897
9,304
6,093
Debtors and other receivables
6
2,672
3,069
2,476
3,069
2,263
2,300
Inventories
8
2,096
1,738
1,105
1,686
1,894
1,023
311
-
241
-
399
394
Current assets
Prepayments Assets held for sale
9
-
-
-
-
200
200
Other financial assets
7
36,123
19,500
32,500
19,500
27,551
26,500
51,425
39,844
45,513
34,152
41,611
36,510
10,932
7,530
18,230
15,185
8,914
18,790
429
500
429
500
625
625
6,220
6,244
5,553
5,518
6,257
5,658
Total current liabilities
17,581
14,274
24,212
21,203
15,796
25,073
Working capital surplus/(deficit)
33,844
25,570
21,301
12,948
25,815
11,437
Total current assets Current liabilities Creditors and other payables
10
Tauira fees Employee entitlements
11
Non-current assets Investment in Open Wānanga
14
-
-
1
-
-
1
Other financial assets
7
13,344
15,000
13,344
15,000
17,000
17,000
Property, plant and equipment
12
80,654
83,441
78,333
80,580
78,071
75,825
Intangible assets
13
5,936
6,680
3,524
4,805
5,606
3,784
99,934
105,121
95,202
100,385
100,677
96,610
133,778
130,691
116,503
113,333
126,492
108,047
Total non-current assets Net assets Equity Retained earnings
17
121,293
130,691
104,066
113,333
114,007
95,610
Property revaluation reserve
17
12,485
-
12,437
-
12,485
12,437
133,778
130,691
116,503
113,333
126,492
108,047
Total equity
Explanations of major variances against budget are provided in note 22. The accompanying notes form part of these financial statements. For and on behalf of Te Mana Whakahaere (the Council).
28 March 2012 Richard Batley Chair - Te Mana Whakahaere CA, BMS (Waikato) 48
Date
TE PŪRONGO 2011
28 March 2012 Bentham Ohia Te Pouhere (CEO) MBA, BA, DipTchg
Date
Statement of Cash Flows for the year ended 31 December 2011
Group Actual Dec-11 $’000
Group Budget Dec-11 $’000
Parent Actual Dec-11 $’000
Parent Budget Dec-11 $’000
Group Actual Dec-10 $’000
Parent Actual Dec-10 $’000
134,305
135,670
134,305
135,670
136,203
136,202
6,090
5,683
5,670
5,683
5,268
5,268
2
-
6,470
6,200
5
6,214
Interest income received
3,162
3,419
3,001
3,240
2,659
2,543
Receipts from other income
5,658
6,866
7,392
8,630
5,733
7,293
Payments to employees
(81,566)
(80,072)
(73,975)
(73,090)
(81,028)
(74,720)
Payments to suppliers
(50,759)
(59,524)
(67,797)
(77,062)
(57,165)
(74,420)
-
-
-
-
(41)
(41)
16,892
12,042
15,066
9,271
11,634
8,339
585
-
585
-
78
59
Sale of investments
24,000
-
24,000
-
17,500
17,500
Purchase of property, plant and equipment
(9,757)
(15,218)
(9,341)
(14,643)
(12,358)
(11,953)
(42)
(990)
(42)
(590)
(370)
(257)
Programme development
(1,843)
(1,651)
(826)
(1,051)
(1,166)
(654)
Purchase of investments
(28,916)
-
(26,344)
-
(33,051)
(32,000)
Net cash flow from investing activities
(15,973)
(17,859)
(11,968)
(16,284)
(29,367)
(27,305)
Cash flows from operating activities Receipts from government grants Receipts from tuition fees Dividend income
Interest paid Net cash flow from operating activities Cash flows from investing activities Sale of property, plant and equipment
Software development
Cash flows from financing activities Capital contribution from the Crown
-
-
-
-
5,488
5,488
Net cash flow from financing activities
-
-
-
-
5,488
5,488
Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents 1 January Cash and cash equivalents 31 December
919
(5,817)
3,098
(7,013)
(12,245)
(13,478)
9,304
21,354
6,093
16,910
21,549
19,571
9,897
9,304
6,093
10,223
15,537
9,191
The accompanying notes form part of these financial statements.
annual report 2011
49
Statement of Cash Flows for the year ended 31 December 2011
Reconciliation from the net surplus to the net cash flows from operating activities. Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
7,286
6,217
8,456
3,873
7,795
7,852
7,038
7,130
829
467
829
467
8,624
8,319
7,867
7,597
Net (gain) on disposal of property, plant and equipment
(279)
(46)
(291)
(28)
Total items classified as investing or financing activities
(279)
(46)
(291)
(28)
(202)
(324)
(82)
(190)
(1,672)
(39)
110
(395)
88
(100)
153
(120)
(Increase)/decrease in interest accrued
(293)
(530)
(286)
(491)
Increase/(decrease) in trade and other payables
4,171
2,320
11
2,354
Increase/(decrease) in revenue received in advance
(598)
(3,354)
(571)
(3,354)
Increase/(decrease) in tauira fees
(196)
(210)
(196)
(210)
(37)
(619)
(105)
(697)
1,261
(2,856)
(966)
(3,103)
16,892
11,634
15,066
8,339
Surplus/(deficit) from the statement of comprehensive income Add/(less) non-cash items Depreciation and amortisation expense Asset impairment Total non-cash items Add/(less) items classified as investing or financing activities
Add/(less) movements in working capital items (Increase)/decrease in inventories (Increase)/decrease in trade and other receivables (Increase)/decrease in prepayments
Increase/(decrease) in provision for employee entitlements Net movement in working capital Net cash flow from operating activities
50
TE PŪRONGO 2011
Statement of Accounting Policies for the year ended 31 december 2011
Reporting Entity
Functional and presentation currency
Te Wānanga o Aotearoa is a TEI domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989.
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars.
The primary objective of Te Wānanga o Aotearoa is to provide full-time and part-time tertiary education as opposed to that of making a financial return. Te Wānanga o Aotearoa group consists of the parent, Te Wānanga o Aotearoa, and its subsidiaries, Open Wānanga Limited (100% owned), Papatoa Forestry Limited (100% owned) and the Aotearoa Scholarship Trust (100% controlled). The subsidiaries of Te Wānanga o Aotearoa are incorporated and domiciled in New Zealand. Open Wānanga Limited consists of Open Wānanga Limited and its subsidiary, Open English Limited, established in May 2011. Te Wānanga o Aotearoa has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements of Te Wānanga o Aotearoa and group for the year ended 31 December 2011 were authorised for issue on 28th March 2012 in accordance with a resolution by Te Mana Whakahaere.
Statement of compliance The financial statements of Te Wānanga o Aotearoa have been prepared in accordance with the requirements of the Education Act 1989 and the Crown Entities Act 2004, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP). These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS and other applicable financial reporting standards, as appropriate for public benefit entities.
Measurement base The financial statements have been prepared on a historical cost basis except where modified by the revaluation of land and buildings.
Changes in accounting policies and estimates There have been no changes in accounting policies during the financial year. Adoption of the revised NZ IAS24 Related Party Disclosure The revised NZ IAS 24 Related Party Disclosures (Revised 2009) has been adopted for the year ended 31 December 2011. The effect of adopting the revised NZ IAS 24 is: • more information is required to be disclosed about transactions between Te Wānanga o Aotearoa and government-related entities; and • commitments with related parties now require disclosure. Standard, amendments and interpretations issued that are not yet effective and have not been early adopted Standards, amendments and interpretations issued but are not effective that have not been early adopted, and which are relevant to Te Wānanga o Aotearoa include: • 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 3 main phases: - Phase 1 - Classification and measurement; - Phase 2 - Impairment methodology; and - Phase 3 - Hedge Accounting. Phase 1 on the classification and measurement of financial assets 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 instruments (its business model) and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in NZ IAS 39. The new standard is required to be adopted for the year ended 31 December 2013. Te Wānanga o Aotearoa has not yet assessed the impact of the new standard and will assess the appropriateness of early adoption once the assessment is completed.
annual report 2011
51
FRS 44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments) These were issued in May 2011 with the purpose of harmonising Australia and New Zealand's accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The amendments must first be adopted for the year ended 31 December 2012. Te Wānanga o Aotearoa has not yet assessed the effects of FRS 44 and the Harmonisation Amendments. Except for the impending changes outlined on the initial application of NZ IFRS 9 Financial instruments and FRS-44 New Zealand disclosures and amendments of NZ IFRS to harmonise with OFRS and Australian Accounting Standards (harmonisation amendments), there are no other standards or interpretations that have been issued but not yet effective, that are applicable to Te Wānanga o Aotearoa. As the External Accounting Reporting Board is consulting on a new accounting standards framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS with a mandatory effective date for annual reporting periods commencing on or after 1 January 2012 will not be applicable to public benefit entities. This means that the financial reporting requirements for public benefit entities are expected to be effectively frozen in the short term. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope.
Basis of consolidation The purchase method is used to prepare the consolidated financial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line-by-line basis. All significant intra-group balances, transactions, income and expenses are eliminated on consolidation. Subsidiaries Te Wānanga o Aotearoa consolidates as subsidiaries in the group financial statements all entities where Te Wānanga o Aotearoa has the capacity to control their financing and operating policies so as to obtain benefits from the activities of those entities. This power exists where Te Wānanga o Aotearoa controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by Te Wānanga o Aotearoa 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. Investments in subsidiaries are carried at cost in the parent entity financial statements of Te Wānanga o Aotearoa.
Going concern Reliance is placed on the fact that Te Wānanga o Aotearoa is a going concern and that sufficient funds are available or will become available to maintain current operations to at least their current level.
Foreign currency translation Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
52
TE PŪRONGO 2011
Accounting Policies
Depreciation
The financial statements have been prepared in accordance with NZ IFRS and NZ GAAP. The accounting policies that materially affect the measurement of financial performance, financial position and cash flows are set out below.
Depreciation is provided on a straight-line basis on all property, plant and equipment other than land at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows.
1
Non-current assets held for sale Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Range of useful lives in years
Range of depreciation rates
Buildings
3 to 50
2% to 33.33%
Leasehold improvements
2 to 10
10% to 50%
Any impairment losses for write-downs of non-current assets held for sale are recognised as an expense in the statement of comprehensive income.
Equipment
5 to 5
20% to 20%
Computers
2 to 4
25% to 50%
Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have previously been recognised.
Furniture and fittings
5 to 5
20% to 20%
Motor vehicles
5 to 5
20% to 20%
Waka
10 to 10
10% to 10%
Library books
10 to 10
10% to 10%
2 to 2
50% to 50%
Non-current assets held for sale (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.
Asset class
Library subscriptions
2
Property, plant and equipment Property, plant and equipment asset classes consist of land and buildings, leasehold improvements, equipment, computers, furniture and fittings, motor vehicles, waka, library books and artwork. The measurement bases used for determining the gross carrying amount for each class of assets is as follows: â&#x20AC;˘ Land and buildings are measured at cost or valuation less subsequent accumulated depreciation on buildings and subsequent accumulated impairment losses. â&#x20AC;˘ Artwork is held at cost and is not depreciated. â&#x20AC;˘ All other asset classes are stated at cost less accumulated depreciation and any accumulated impairment in value.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful life of the improvements whichever is the shorter. The residual value and useful life of an asset is reviewed and adjusted if applicable, at the end of each financial year end. Revaluations Land and buildings are revalued at least every two years and with sufficient regularity to ensure that the carrying amount does not differ materially from fair value. Fair value is determined from market-based evidence by an independent valuer. All other asset classes are carried at depreciated historical cost. The carrying values of revalued items are reviewed at each balance date to ensure that they are not materially different to fair value. Additions made are recorded at cost until revalued.
annual report 2011
53
Accounting for revaluations Te Wﾄ］anga o Aotearoa accounts for revaluations of property, plant and equipment on a class of asset basis. The net revaluation results are credited or debited to other comprehensive income and accumulated to an asset revaluation reserve in equity for that class of asset. 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 reverses 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 recorded, and then recognised in other comprehensive income. Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to Te Wﾄ］anga o Aotearoa and the cost of the item can be measured reliably.
3
Intangible assets Computer software Computer software is separately acquired and capitalised at its cost as at the date of acquisition. After initial recognition, separately acquired intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. Course development costs Course development costs relate to development of educational courses and are capitalised once accreditation has been received and when it is probable that future economic benefit arising from use of the intangible asset will flow to the group. Following initial recognition of course development costs, the cost model is applied and the asset is carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation A summary of policies applied to the group's intangible assets is as follows: Computer software
Course development costs
Useful lives
Finite - 5 years
Finite - 5 years
Method used
Straight line method
Straight line method from course commencement
Internally generated/ acquired
Separately acquired
Internally generated/ separately acquired
Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying value of the asset. Gains and losses on disposals are recognised in the surplus or deficit. When revalued assets are sold, the amounts included in revaluation reserve in respect of those assets are transferred to retained earnings. Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Te Wﾄ］anga o Aotearoa and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.
The amortisation period and amortisation method for each class of intangible asset having a finite life are reviewed at the end of each financial year. 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 annually for indicators of impairment. Intangible assets are tested for impairment where an indicator of impairment exists. Gains or losses arising from de-recognition 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 de-recognised. All other research and development costs are recognised expenses in the surplus or deficit in the year in which they are incurred.
54
TE PﾅｪRONGO 2011
4
Impairment of property, plant and equipment and intangible assets Intangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When an asset is found to be impaired, a recoverable amount is estimated. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset's ability to generate net cash inflows and where Te Wﾄ］anga o Aotearoa would, if deprived of the asset, replace its remaining future economic benefits or service potential. The value in use for cash-generating assets is the present value of expected future cash flows. 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. For revalued 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 for that same class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the asset revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.
5
Financial assets All financial assets are initially recognised at cost, being the fair value of the consideration given and, in the case of a financial asset, not at fair value through other comprehensive income, including acquisition charges associated with the financial asset. After initial recognition, financial assets which are classified as available-for-sale are measured at fair value, or at amortised cost in cases where the fair value cannot be reliably measured. Gains or losses on available-for-sale financial assets are recognised as a separate component of equity until the financial asset is sold, collected or otherwise disposed of, or until the financial asset is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in other comprehensive income. Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-tomaturity when Te Wﾄ］anga o Aotearoa has the positive intention and ability to hold to maturity. Financial assets intended to be held for an indefinite period are not included in this classification. Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Financial assets in bank deposits are classified as loans and receivables. Financial assets that are intended to be held-tomaturity or those classified as loans and receivables are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any discount or premium on acquisition over the period to maturity. Gains and losses for financial assets carried at amortised cost are recognised in income when the financial assets are de-recognised or impaired. They are also recognised through the amortisation process. Where there is no quoted market price for financial assets, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the financial asset. Where the fair value cannot be reliably determined the financial assets are measured at cost.
annual report 2011
55
6
Inventories Inventories held for distribution or consumption in the provision of services that are not issued on a commercial basis is measured at the lower of cost and net realisable value. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition.
benefit entities. Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred.
11
The replacement cost of the economic benefits or service potential of inventory held for distribution reflects any obsolescence or any other impairment.
7
9 10
56
Provisions are recognised when Te Wānanga o Aotearoa has an obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The cost of purchased inventory is determined as follows: • inventories held for resale – purchase cost is on a weighted average cost • materials and consumables to be utilised for rendering of services – purchase cost is on a first-in, first-out basis.
If the effect of the time value of money is material, provisions are determined by discounting expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
The write-down from cost to current replacement cost or net realisable value is recognised in the surplus or deficit in the period when the write-down occurs.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision will be reversed.
Debtors and other receivables Tauira fees and other receivables are recognised and carried at original receivable amount less any provision for impairment. A specific provision for impairment is made when collection of the full amount is no longer probable. Bad debts are written off when identified.
8
Provision
Cash and cash equivalents Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. Creditors and other payables Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. Borrowing costs Te Wānanga o Aotearoa has elected to defer the adoption of the revised NZ IAS 23 Borrowing Costs (Revised 2007) in accordance with the transactional provisions of NZ IAS 23 that are applicable to public
TE PŪRONGO 2011
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
12
Employee entitlements Short-term employee entitlements Employee entitlements that Te Wānanga o Aotearoa expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date, and sick leave. Te Wānanga o Aotearoa 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 Te Wānanga o Aotearoa anticipates it will be used by staff to cover those future absences.
13
Superannuation schemes
Rental income
Defined contribution schemes
Rental income is recognised in the surplus or deficit on an accrual basis.
Obligations for contributions to Kiwisaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred.
14
Revenue is recognised as the interest accrues (using the effective interest method which applies the interest rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.
Leases Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the surplus or deficit on a straight-line basis over the lease term.
15
Interest
16
17
Revenue Revenue is measured at the fair value of consideration or receivable. Government grants Government grants are recognised as revenue upon entitlement. Other government grants Funding is received from the Tertiary Education Commission (TEC) in relation to costs expected to be incurred by Te Wānanga o Aotearoa to complete specific projects and organisational change objectives as established and agreed between TEC and Te Wānanga o Aotearoa. Revenue from these projects is recognised based on the stage of the completion of the project. The stage of completion is measured based on the percentage of costs incurred to date compared to the total estimated costs to complete the full project. When funding is received in advance of the project being completed, deferred income is recognised and is released over the specific period using the stage of completion method. Tauira tuition fees Revenue from student tuition fees is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the days of course completed as a percentage of total days for each course.
Dividends Dividends are received by Te Wānanga o Aotearoa from the subsidiary company, Open Wānanga Limited. These dividends are recognised as revenue in the surplus or deficit in the period in which they are received. Equity Equity is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are: • general funds • property revaluation reserves • capital contribution. Property revaluation reserve This reserve relates to the revaluation of property, plant, and equipment to fair value.
18
Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except: • where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable • receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from or payable to the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed exclusive of GST.
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57
19
Statement of cash flows
of the assets within the period established generally by regulation or convention in the market place. Financial assets are de-recognised when the right to receive cash flows from the financial assets have expired or been transferred.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from or payable to the taxation authority, are classified as operating cash flows.
20
Budget figures
21
Financial instruments
Financial assets at fair value through surplus or deficit Financial assets classified as held for trading are included in the category financial assets at fair value through surplus or deficit Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a surplus. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on financial assets held for trading are recognised in surplus or deficit and the related assets are classified as current assets in the statement of financial position.
Budget figures are those approved by Te Mana Whakahaere at the beginning of the year. Budget figures are prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by Te Mana Whakahaere for the preparation of the financial statements.
Interest-bearing loans and borrowing All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of transaction costs associated with the borrowing.
Loans and receivables Loans and receivables, including loan notes and loans to key management personnel, are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the surplus or deficit when the loans and receivables are de-recognised or impaired. These are included in current assets, except for those with maturities greater than 12 months after balance date, which are classified as non-current.
After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs and any discount or premium on settlement. Gains and losses are recognised in the surplus or deficit when the liabilities are de-recognised and as well as through the amortisation process. Investments and other financial assets Investments and financial assets are categorised as either financial assets at fair value through the surplus or deficit, loans and receivables, held-to-maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Designation is reevaluated at the end of each financial year but there are restrictions on re-classification to other categories. When financial assets are recognised initially, they are measured at fair value plus in the case of assets not at fair value through the surplus or deficit, directly attributable transaction costs. Recognition and De-recognition Regular way purchases and sales of financial assets are recognised on the trade date, i.e., the date that Te Wānanga o Aotearoa commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery 58
TE PŪRONGO 2011
22
De-recognition of financial instruments
23
Financial risk management objectives and policies
The de-recognition of a financial instrument takes place when Te Wānanga o Aotearoa no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold or all the cash flows attributable to the instrument are passed through to an independent third party.
Te Wānanga o Aotearoa's principal financial instruments comprise receivables, payables, bank loans and overdrafts, available for sale investments, cash and short-term deposits. Te Wānanga o Aotearoa manages its exposure to key financial risks, including interest rate and currency risk, in accordance with Te Wānanga o Aotearoa's financial risk management policy. The objective of the policy is to support the delivery of Te Wānanga o Aotearoa's financial targets whilst protecting future financial security.
only with recognised, creditworthy third parties and, as such, collateral is not requested nor is it the policy of Te Wānanga o Aotearoa to securitize its trade and other receivables. It is Te Wānanga o Aotearoa's policy that all customers who wish to trade on credit terms are subject to credit verification procedures, including an assessment of their independent credit rating, financial position, past experience and industry reputation. Risk limits are set for each customer in accordance with parameters set by Te Mana Whakahaere. These risk limits are regularly monitored.
The main risks arising from Te Wānanga o Aotearoa's financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. Te Wānanga o Aotearoa uses specific methods to measure and manage the different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate and foreign exchange. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future rolling cash flow forecasts.
In addition, receivable balances are monitored on an ongoing basis with the result that Te Wānanga o Aotearoa's exposure to bad debts is not significant. There are no significant concentrations of credit risk within Te Wānanga o Aotearoa.
Te Mana Whakahaere reviews and agrees policies for managing each of these risks as summarised below. Primary responsibility for identification and control of financial risks rests with Te Ārai Tūpono under the authority of Te Mana Whakahaere. Te Mana Whakahaere reviews and agrees policies for managing each of the risks identified below, including the setting of limits for hedging cover of foreign currency and interest rate risk, credit allowances, and future cash flow forecast projections.
24
Liquidity risk Te Wānanga o Aotearoa's objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans. Te Wānanga o Aotearoa's policy is that not more than 33% of borrowings should mature in any 12 month period. At 31 December 2011, Te Wānanga o Aotearoa had NIL borrowings (2010 NIL).
Risk exposures and responses Interest rate risk Te Wānanga o Aotearoa has no risk exposure to market interest rates as all interest bearing debt obligations were repaid during the year. Foreign currency risk Te Wānanga o Aotearoa has only limited exposure to foreign currency risk. All fees are denominated in NZ dollars to diminish risks associated with revenue streams. Where transactions in foreign currencies are forecast that are material to Te Wānanga o Aotearoa, forward exchange contracts are entered into to diminish the risk of fluctuations in exchange rates. Credit risk Credit risk arises from the financial assets of Te Wānanga o Aotearoa, which comprise cash and cash equivalents, trade and other receivables, and other financial assets. Te Wānanga o Aotearoa's exposure to credit risk arises from potential default of a counter party, which carries a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note. Te Wānanga o Aotearoa does not hold any credit derivatives to offset its credit exposure. Te Wānanga o Aotearoa trades
25
Key judgments, estimates and assumptions The following items have been included in the financial statements as a result of key judgments or estimates. Operating lease commitments Te Wānanga o Aotearoa has entered into commercial property leases on its property portfolio. Te Wānanga o Aotearoa has determined that it retains all significant risks and rewards of ownership of these properties and has thus classified the leases as operating leases. Impairment of non-financial assets Te Wānanga o Aotearoa assesses impairment of all assets at each reporting date by evaluating conditions specific to Te Wānanga o Aotearoa and to the particular asset that may lead to impairment. These include programme performance, technology, economic and political environments, and future programme expectations. If an impairment trigger exists, the recoverable amount of the asset is determined. Management does not consider that the triggers for impairment testing have been significant and, as such, these assets have not been tested for impairment in this financial period.
annual report 2011
59
Classification of assets and liabilities as held for sale
Capitalised programme development costs
Te Wānanga o Aotearoa classifies assets and liabilities as held for sale when its carrying amount will be recovered through a sale transaction. The assets and liabilities must be available for immediate sale and Te Wānanga o Aotearoa must be committed to selling the asset either through the entering into a contractual sale agreement or the activation and commitment to a programme to locate a buyer and dispose of the assets and liabilities.
Development costs are only capitalised by Te Wānanga o Aotearoa when it can be demonstrated that the technical feasibility of completing the intangible asset is valid so that the asset will be available for use or sale and that the programmes will provide positive cash flows.
Distinction between revenue and capital contribution Most Crown funding received is operational in nature. Thus it 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, Te Wānanga o Aotearoa accounts for the funding as a capital contribution directly in equity. Information about capital contributions recognised in equity is disclosed in note 17. Suspensory loans with equity conversion features Te Wānanga o Aotearoa received a suspensory loan from the Crown during 2010 whereby the loan converted to equity when the conversion conditions of the loan agreement were satisfied. This included suspensory loans drawn down in respect of the Creative Thinking Programme and the Excellence Programme. Further information about the suspensory loan is disclosed in note 17. Early childhood centre grant Te Wānanga o Aotearoa received a grant from the Crown for the construction of a new early childhood learning centre facility. The grant has a number of conditions attached which require all or part of the grant to be repaid in the event the conditions are not met. NZ IFRS does not provide authoritative support on accounting for government grants for public benefit entities because public benefit entities are not permitted to apply the recognition and measurement requirements of NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. Te Wānanga o Aotearoa has considered the liability definition in the New Zealand Framework and in applying its judgement has recognised the grant as revenue because management is committed to satisfying the remaining grant conditions. It is therefore not considered probable that Te Wānanga o Aotearoa will be required to repay all or part of the grant to the Crown. Further information about the grant is disclosed in note 18.
60
TE PŪRONGO 2011
Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience as well as manufacturers' warranties (for plant and equipment), lease terms (for leased equipment) and turnover policies (for motor vehicles). In addition, the condition of each asset is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.
annual report 2011
61 Porirua Campus, Wellington
Notes to the Financial Statements For the year ended 31 December 2011
1
Income
(a) Government funding Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
132,091
97,570
132,091
97,570
-
33,296
-
33,296
Quality Reinvestment Plan
367
4,835
367
4,835
Performance Based Research Fund
160
163
160
163
2,259
3,001
2,259
3,001
134,877
138,865
134,877
138,865
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
5,866
5,478
5,866
5,478
420
-
-
-
6,286
5,478
5,866
5,478
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
1,771
1,281
1,771
1,281
367
49
367
30
Rental income
336
355
336
355
Canteen sales
724
577
724
577
Open Wānanga Limited
148
-
1,470
1,687
Dividends from Open Wānanga Limited
-
-
6,468
6,209
Dividends from external sources
2
5
2
5
3,038
3,688
2,980
3,788
6,386
5,955
14,118
13,932
Student Achievement Component Funding Tertiary Education Organisation Component Funding
Other government funding
(b) Tuition fees
Fees from domestic tauira Fees from international tauira Total tuition fees
(c) Other income
Contract income Profit on sale of assets Other income:
Misc. income
Contract income relates to licences and subcontracting arrangements that Te Wānanga o Aotearoa has with other institutions.
62
TE PŪRONGO 2011
2
Personnel costs Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
80,670
79,739
73,106
73,430
Employer contributions to defined contribution plans*
730
575
635
529
Termination expenses
123
76
123
76
6
19
6
(12)
81,529
80,409
73,870
74,023
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Interest paid on suspensory loan
-
41
-
41
Total finance costs
-
41
-
41
Wages and salaries
Increase/(decrease) in employee sick leave
* Employer contributions to defined contribution plans include contributions to Kiwisaver.
3
Finance costs
annual report 2011
63
4
Other expenses Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
290
243
205
198
2,301
2,668
-
-
13,839
13,363
11,270
11,564
(116)
(509)
(116)
(509)
Bad debts written off
307
482
307
482
Koha
396
426
389
419
2,396
5,109
2,396
5,109
131
-
-
-
Open Wānanga Limited payments
-
-
24,397
23,825
Aotearoa Scholarship Trust payments
-
-
20
2,150
Small capital purchases
2,318
2,108
2,091
1,981
Consultancy fees
4,215
6,612
3,145
5,377
Inventories consumed
2,285
1,888
2,285
1,888
10,623
10,800
8,177
8,813
1,920
2,204
1,915
2,204
121
296
121
296
Occupancy expenses
6,269
5,645
5,722
5,645
Rent
2,040
1,925
1,401
1,489
Minimum lease payments – operating lease
4,154
4,884
4,154
4,487
829
822
829
822
76
2
76
2
54,394
58,968
68,784
76,242
Fees to principal auditor - audit fees for financial statement audit Management fees Administration Impairment of receivables
Satellite payments Scholarships
Tauira resources Travel Artwork lease
Impairment of property, plant and equipment and stock Loss on sale of property, plant and equipment Total other expenses
64
TE PŪRONGO 2011
5
Cash and cash equivalents Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Cash at bank and in hand
5,123
6,630
4,191
6,093
Term deposits with maturities less than 3 months
6,723
2,674
5,000
-
11,846
9,304
9,191
6,093
Total cash and cash equivalents
The carrying value of cash at bank and term deposits with maturities less than three months approximates their fair value. The weighted average effective interest rate for term deposits is 4.01% (2010 - 5.42%). There were no cash or cash equivalent balances held at 31 December 2011 that were not available for use by the group. Reconciliation of cash for the purpose of the cash flow statement For the purpose of the cash flow statement, cash and cash equivalents comprise the following as at 31 December. Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Cash at bank and in hand
5,123
6,630
4,191
6,093
Term deposits with maturities less than 3 months
6,723
2,674
5,000
-
11,846
9,304
9,191
6,093
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
522
485
522
485
(7)
(79)
(7)
(79)
515
406
515
406
228
421
228
421
1,787
1,494
1,733
1,447
Subsidiary (note 14)
-
-
13
84
Other related parties
155
-
-
-
2,170
1,915
1,974
1,952
(13)
(58)
(13)
(58)
2,672
2,263
2,476
2,300
6
Debtors and other receivables
Student receivables Student fee receivables Less provision for impairment Net student fee receivables Other receivables Trade receivables Accrued interest Related party receivables:
Gross debtors and other receivables Less provision for impairment Total debtors and other receivables
annual report 2011
65
Fair Value Other debtors are non-interest bearing and receipt is normally on 30-day terms. Therefore the carrying value of other debtors approximates their fair value. Tauira debtors are non-interest bearing and receipt is normally on enrolment and no later than graduation. Therefore the carrying value of tauira debtors approximates their fair value. Impairment As of 31 December 2011 and 2010, all overdue debtors have been assessed for impairment and appropriate provisions applied. Te Wānanga o Aotearoa holds no collateral as security or other credit enhancements over receivables that are either past due or impaired. The ageing profile of receivables at year end is detailed below: 2011 Gross $’000
Impairment $’000
Net $’000
2010 Gross $’000
Impairment $’000
Net $’000
1,577
-
1,577
1,598
-
1,598
Past due 1-60 days
18
-
18
192
-
192
Past due 61-120 days
43
(6)
37
148
-
148
Past due > 120 days
358
(14)
344
462
(137)
325
1,996
(20)
1,976
2,400
(137)
2,263
2,077
-
2,077
1,635
-
1,635
Past due 1-60 days
18
-
18
192
-
192
Past due 61-120 days
43
(6)
37
148
-
148
Past due > 120 days
358
(14)
344
462
(137)
325
2,496
(20)
2,476
2,437
(137)
2,300
Group Not past due
Total
Parent Not past due
Total
All receivables greater than 30 days in age are considered to be past due. The impairment provision has been calculated based on expected losses for Te Wānanga o Aotearoa and their pool of receivables. Expected losses have been determined based on an analysis of losses for Te Wānanga o Aotearoa in previous periods and a review of specific receivables as detailed below:
Other debt impairment Tauira debt Total provision for impairment
66
TE PŪRONGO 2011
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
13
58
13
58
7
79
7
79
20
137
20
137
Other impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor. An analysis of these individually impaired debtors is as follows: Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Past due 1-60 days
-
-
-
-
Past due 61-120 days
6
-
6
-
Past due > 120 days
7
58
7
58
13
58
13
58
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
At 1 January
137
645
137
645
Additional provisions made during the year
190
72
190
72
(307)
(580)
(307)
(580)
20
137
20
137
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
36,123
24,051
32,500
23,000
-
3,500
-
3,500
36,123
27,551
32,500
26,500
13,344
17,000
13,344
17,000
-
-
-
-
Total non-current portion
13,344
17,000
13,344
17,000
Total other financial assets
49,467
44,551
45,844
43,500
Total individual impairment
Movements in the provision for impairment of receivables are as follows:
Receivables written off during the period At 31 December
7
Other financial assets
Current portion Term deposits with maturities of 4-12 months Government bonds with maturities of 4-12 months Total current portion Non-current portion Term deposits with maturities >12 months Government bonds with maturities > 12 months
annual report 2011
67
Fair Value Term deposits The fair value of non-current term deposits is $14,305,299 (2010 - $17,983,943). Fair value has been determined by discounting future interest cash flows using a discount rate based on the market interest rate on term deposits at balance date with principal terms to maturity that match as closely as possible the cash flows of term deposits held. The discount rates range between 2.46% and 3.30% (2010 - 4.00% - 4.76%) Government bonds The government bond matured in November 2011. In 2010 it was not a non-current asset. For those instruments recognised at fair value on the statement of financial position, fair values are determined according to the following hierarchy: • Quoted market price - Financial instruments with quoted prices for identical instruments in active markets; and • Valuation technique using observable inputs - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable; and • Valuation techniques with significant non-observable inputs - Financial instruments valued using models where one or more significant inputs are not observable. The following table shows an analysis of the basis of the valuation of classes of financial instruments measured at fair value on the statement of financial position.
Total $’000
Quoted market price $’000
Observable inputs $’000
Significant non-observable inputs $’000
-
-
-
-
3,500
3,500
-
-
-
-
-
-
3,500
3,500
-
-
Group 2011 Financial assets Government bonds Group 2010 Financial assets Government bonds Parent 2011 Financial assets Government bonds Parent 2010 Financial assets Government bonds
Impairments There were no impairment provisions for other financial assets. None of the assets are either past due or impaired.
68
TE PŪRONGO 2011
8
Inventory
Inventories held for distribution
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
2,096
1,894
1,105
1,023
The carrying amount of inventories for distribution are measured at cost as at 31 December 2011 and, therefore, the carrying amount at current replacement cost is NIL (2010 - NIL) Inventories are made up of consumables and inventories held for distribution to campuses. Consumables are materials or supplies which will be consumed in conjunction with the delivery of services and predominantly comprise books and resources used in the teaching of courses to tauira. During the year, a write-off of inventories occurred due to a change in resources and technologies required in a number of programmes. This write-off amounted to $129,167 in 2011 (2010 - $200,611). There have been no reversals of write-offs (2010 - NIL). No inventories are pledged as security for liabilities.
9
Non-current assets held for sale
The building owned by Te Wānanga o Aotearoa on Taupiri Street, Te Kuiti was presented as held for sale following approval by Te Mana Whakahaere on 9th August 2010. Te Mana Whakahaere has approved the sale of the premises, as it will provide no future use to Te Wānanga o Aotearoa. The sale occurred in February 2011. Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
- Buildings
-
150
-
150
- Land
-
50
-
50
Total non-current assets held for sale
-
200
-
200
Non-current assets held for sale
annual report 2011
69
10
Creditors and other payables Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Trade payables
3,326
2,883
2,437
2,542
Accrued expenses
3,814
2,331
3,554
2,262
-
367
-
367
636
841
636
841
Pay As You Earn tax
1,581
1,573
1,494
1,509
Goods and Services Tax
1,575
919
1,406
716
10,932
8,914
9,527
8,237
-
-
8,703
10,553
10,932
8,914
18,230
18,790
Quality Reinvestment Programme Other government funding
Related party payable: Subsidiary - Open Wānanga Limited
Creditors and other payables are non-interest bearing and are normally settled on terms varying between 7 days and 20th of the month following invoice date. Therefore, the carrying value of trade and other payables approximates their fair value. For terms and conditions relating to related parties payables, refer to note 19.
11
Provisions Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
Accrued salaries
2,057
2,024
1,773
1,778
Annual leave
3,959
4,040
3,605
3,711
204
193
175
169
6,220
6,257
5,553
5,658
Sick leave
Annual leave and sick leave entitlements expected to be settled within 12 months of the balance sheet date are measured at the current rates of pay and classified as current liabilities.
70
TE PŪRONGO 2011
Land $’000 -
Depreciation
annual report 2011
22,068
-
Closing accumulated depreciation at 31 December 2011
Net book value at 31 December 2011
-
Revaluation
22,068
(4,483)
-
Impairment
Net book value at 1 January 2011
-
-
Reclassification
44,680
43,497
19
(1,714)
-
Disposals
-
(2,495)
(293)
-
-
Opening accumulated depreciation at 1 January 2011
-
Revaluation
(19)
49,163
-
Impairment
1,812
-
22,068
-
Reclassification
Closing cost at 31 December 2011
-
Buildings $’000
Disposals
Total Land & Buildings $’000 66,748
65,565
(4,483)
-
19
(1,714)
-
(2,495)
(293)
71,231
-
(19)
1,812
-
3,580
Leasehold Improvements $’000
3,580
1,810
1,537
(2,685)
-
1,590
47
27
(602)
(3,747)
4,495
-
(2,085)
109
(36)
1,223
Equipment $’000
-
518
1,320
(740)
-
640
1,965
34
(320)
(3,059)
1,258
-
(741)
(2,452)
(205)
277
Computers $’000
Additions
654
681
(2,565)
-
384
(346)
18
(498)
(2,123)
3,219
-
(386)
658
(54)
197
Furniture & Fittings $’000 10
77
(193)
-
500
358
-
(25)
(1,026)
203
-
(512)
(388)
(1)
1
1,103
3,137
3,045
(5,481)
-
-
(456)
539
(1,152)
(4,412)
8,618
-
-
473
(624)
1,312
7,457
Motor Vehicles $’000
2,804
493
549
(653)
-
12
8
-
(50)
(623)
1,146
-
(18)
(13)
-
5
1,172
Waka $’000
4,379
2,781
1,462
-
-
-
-
-
-
-
2,781
-
(33)
-
-
1,352
1,462
Artworks $’000
5,284
2,565
2,410
(3,251)
-
302
-
-
(580)
(2,973)
5,816
-
(353)
-
-
786
5,383
Library $’000
65,858
344
437
(2,163)
-
-
-
-
(526)
(1,637)
2,507
-
-
-
-
433
2,074
VLC $’000
43,790
-
3,447
(138)
618
(6,248)
(19,893)
102,868
-
(4,147)
199
(5,888)
14,740
97,964
1,594
988
80,654
78,071
- (22,214)
-
-
-
-
-
-
1,594
-
-
-
(4,968)
5,574
988
WIP $’000
22,068
Total $’000
Opening cost at 1 January 2011
GROUP 2011
12 Property, plant and equipment - group 2011
71
Land $’000
72
TE PŪRONGO 2011
-
Impairment
Revaluation
Closing accumulated depreciation at 31 December 2011
22,068
-
Reclassification
Net book value at 31 December 2010
(293)
-
Disposals
20,794
4,353
-
Depreciation
Net book value at 1 January 2010
(2,318)
-
Opening accumulated depreciation at 1 January 2010
43,497
35,297
15
15
-
(2,358)
43,790
(2,712)
(23)
(165)
-
22,068
924
Revaluation
Closing cost at 31 December 2010
-
(50)
Impairment
Reclassification
-
Buildings $’000
Disposals
Total Land & Buildings $’000 65,565
56,091
(293)
4,353
15
15
-
(2,358)
(2,318)
65,858
(1,788)
(23)
(215)
-
9,475
Leasehold Improvements $’000
9,075
1,537
2,661
(3,747)
-
3,926
-
-
(804)
(6,869)
5,284
-
(4,296)
-
-
50
Equipment $’000
400
1,320
1,402
(3,059)
-
1,452
-
-
(417)
(4,094)
4,379
-
(1,505)
-
-
388
Computers $’000
Additions
681
954
(2,123)
-
497
-
-
(482)
(2,138)
2,804
-
(520)
-
-
232
Furniture & Fittings $’000 77
134
(1,026)
-
1,387
-
-
(48)
(2,365)
1,103
-
(1,396)
-
-
-
2,499
3,045
3,261
(4,412)
-
(90)
-
38
(949)
(3,411)
7,457
-
90
-
(69)
764
6,672
Motor Vehicles $’000
3,092
549
609
(623)
-
-
-
-
(60)
(563)
1,172
-
-
-
-
-
1,172
Waka $’000
5,496
1,462
1,166
-
-
-
-
-
-
-
1,462
-
(28)
-
-
324
1,166
Artworks $’000
9,530
2,410
2,556
(2,973)
-
-
-
-
(620)
(2,353)
5,383
-
-
-
-
474
4,909
Library $’000
58,409
437
1,029
(1,637)
-
-
-
-
(730)
(907)
2,074
-
-
-
-
138
1,936
VLC $’000
37,615
4,353
7,187
15
38
(6,468)
(25,018)
97,964
(1,788)
(7,678)
(215)
(7,521)
19,805
95,361
988
480
78,071
70,343
- (19,893)
-
-
-
-
-
-
988
-
-
-
(7,452)
7,960
480
WIP $’000
20,794
Total $’000
Opening cost at 1 January 2010
GROUP 2010
Property, plant and equipment - group 2010
Land $’000 -
Depreciation
annual report 2011
21,818
-
Closing accumulated depreciation at 31 December 2011
Net book value at 31 December 2011
-
Revaluation
21,818
(4,393)
-
Impairment
Net book value at 1 January 2011
-
-
Reclassification
43,480
42,345
19
(1,714)
-
Disposals
-
(2,403)
(295)
-
-
Opening accumulated depreciation at 1 January 2011
-
Revaluation
(19)
47,873
-
Impairment
1,812
-
21,818
-
Reclassification
Closing cost at 31 December 2011
-
Buildings $’000
Disposals
Total Land & Buildings $’000 65,298
64,163
(4,393)
-
19
(1,714)
-
(2,403)
(295)
69,691
-
(19)
1,812
-
3,440
Leasehold Improvements $’000
3,440
1,661
1,521
(2,643)
-
1,590
47
0
(554)
(3,726)
4,304
-
(2,085)
109
-
1,033
Equipment $’000
-
496
1,306
(683)
-
640
1,965
34
(316)
(3,006)
1,179
-
(741)
(2,452)
(205)
265
Computers $’000
Additions
648
673
(1,991)
-
384
(346)
18
(496)
(1,551)
2,639
-
(386)
658
(54)
197
Furniture & Fittings $’000 10
77
(165)
-
500
358
-
(25)
(998)
175
-
(512)
(388)
-
-
1,075
2,644
2,466
(4,897)
-
-
(456)
533
(966)
(4,008)
7,541
-
-
473
(603)
1,197
6,474
Motor Vehicles $’000
2,224
493
549
(653)
-
12
8
-
(50)
(623)
1,146
-
(18)
(13)
-
5
1,172
Waka $’000
4,312
2,580
1,304
-
-
-
-
-
-
-
2,580
-
(33)
-
-
1,309
1,304
Artworks $’000
5,247
2,565
2,410
(3,251)
-
302
-
-
(580)
(2,973)
5,816
-
(353)
-
-
786
5,383
Library $’000
64,458
344
437
(2,163)
-
-
-
-
(526)
(1,637)
2,507
-
-
-
-
433
2,074
VLC $’000
42,640
99,172
-
(4,147)
199
(5,760)
14,238
94,642
-
3,447
(138)
585
(5,916)
1,594
919
78,333
75,825
- (20,839)
-
-
-
-
-
- (18,817)
1,594
-
-
-
(4,898)
5,573
919
WIP $’000
21,818
Total $’000
Opening cost at 1 January 2011
PARENT 2011
Property, plant and equipment - parent 2011
73
Land $’000
74
TE PŪRONGO 2011
-
Impairment
Revaluations
Closing accumulated depreciation at 31 December 2011
21,818
-
Reclassification
Net book value at 31 December 2010
(295)
-
Disposals
20,544
4,193
-
Depreciation
Net book value at 1 January 2010
(2,240)
-
Opening accumulated depreciation at 1 January 2010
42,345
34,244
15
15
-
(2,278)
42,640
(2,723)
(23)
(165)
-
21,818
924
Revaluations
Closing cost at 31 December 2010
-
(50)
Impairment
Reclassification
-
Buildings $’000
Disposals
Total Land & Buildings $’000 64,163
54,788
(295)
4,193
15
15
-
(2,278)
(2,240)
64,458
(1,799)
(23)
(215)
-
9,467
Leasehold Improvements $’000
9,067
1,521
2,641
(3,726)
-
3,926
-
-
(800)
(6,852)
5,247
-
(4,296)
-
-
50
Equipment $’000
400
1,306
1,383
(3,006)
-
1,452
-
-
(412)
(4,046)
4,312
-
(1,505)
-
-
388
Computers $’000
Additions
673
950
(1,551)
-
497
-
-
(479)
(1,569)
2,224
-
(520)
-
-
225
Furniture & Fittings $’000 77
132
(998)
-
1,387
-
-
(47)
(2,338)
1,075
-
(1,395)
-
-
-
2,470
2,466
2,810
(4,008)
-
(90)
-
38
(784)
(3,172)
6,474
-
90
-
(69)
471
5,982
Motor Vehicles $’000
2,519
549
609
(623)
-
-
-
-
(60)
(563)
1,172
-
-
-
-
-
1,172
Waka $’000
5,429
1,304
1,034
-
-
-
-
-
-
-
1,304
-
(28)
-
-
298
1,034
Artworks $’000
9,493
2,410
2,558
(2,973)
-
-
-
-
(620)
(2,353)
5,383
-
-
-
-
472
4,911
Library $’000
57,028
437
1,029
(1,637)
-
-
-
-
(730)
(907)
2,074
-
-
-
-
138
1,936
VLC $’000
36,484
4,193
7,187
15
38
(6,210)
(24,040)
94,642
(1,799)
(7,677)
(215)
(7,521)
19,400
92,454
919
480
75,825
68,414
- (18,817)
-
-
-
-
-
-
919
-
-
-
(7,452)
7,891
480
WIP $’000
20,544
Total $’000
Opening cost at 1 January 2010
PARENT 2010
Property, plant and equipment - parent 2010
Valuation Total fair value of property, plant and equipment valued by valuer
W Hickey of Jones Lang LaSalle
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
64,114
64,114
62,714
62,714
The classes of property, plant and equipment that were revalued in 2010 were land and buildings.
Land Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. The most recent valuation of land was performed by registered independent valuer Jones Lang LaSalle and the valuation is effective as at 31 December 2010. Buildings Specialised buildings (e.g., campuses) are valued at fair value using depreciated replacement cost because no reliable market data is available for buildings designed for education delivery purposes. Depreciated replacement cost is determined using a number of significant assumptions including: • The replacement asset is based on the reproduction cost of the specific assets with adjustments where appropriate for obsolescence due to over-design or surplus capacity. • The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information. • The remaining life of assets is estimated. • Straight-line depreciation has been applied in determining the depreciated replacement cost value of the asset. Non-specialised buildings (e.g., residential buildings) are revalued at fair value using market-based evidence. Market rates and capitalisation rates were applied to reflect market value. The most recent valuation of buildings was performed by independent valuer Jones Lang LaSalle and the valuation is effective as at 31 December 2010. Total fair value of property, plant and equipment valued by valuer The total fair value of property, plant and equipment valued by Jones Lang LaSalle at 31 December 2010 totalled $64,114,000. Work in progress The total value of property, plant and equipment in the course of construction for the parent is $1,593,661 (2010 - $919,710).
annual report 2011
75
13
Intangible assets
Programme development costs were incurred in developing Certificates in First Line Management, Forest Harvesting, Pūtaketanga, Business & E-Commerce and Iwi Marine and Freshwater Studies and Diplomas in Māori Governance and Leadership, Adult Education and Training, Papa Whai Rawa, TARM Distance, SALE Level 2, Greenlight, Papa Ako and Mauri Ora.
Software $'000
Programme development $’000
WIP $’000
Total $’000
1,441
8,664
1,886
11,991
Additions
991
1,380
1,389
3,760
Impairment
(34)
(80)
(178)
(292)
Reclassification
313
-
-
313
-
-
(1,697)
(1,697)
Closing cost at 31 December 2011
2,711
9,964
1,400
14,075
Opening accumulated amortisation at 1 January 2011
(733)
(5,652)
-
(6,385)
Amortisation
(352)
(1,196)
-
(1,548)
34
55
-
89
(295)
-
-
(295)
-
-
-
-
(1,346)
(6,793)
-
(8,139)
708
3,012
1,886
5,606
1,365
3,171
1,400
5,936
1,208
7,647
1,602
10,457
Additions
263
1,017
963
2,243
Impairment
(30)
-
(356)
(386)
-
-
(323)
(323)
Closing cost at 31 December 2010
1,441
8,664
1,886
11,991
Opening accumulated amortisation at 1 January 2010
(601)
(4,430)
-
(5,031)
Amortisation
(162)
(1,222)
-
(1,384)
30
-
-
30
-
-
-
-
(733)
(5,652)
-
(6,385)
Net book value at 1 January 2010
607
3,217
1,602
5,426
Net book value at 31 December 2010
708
3,012
1,886
5,606
Group 2011 Opening cost at 1 January 2011
Disposals
Impairment Reclassification Disposals Closing accumulated amortisation at 31 December 2011
Net book value at 1 January 2011
Net book value at 31 December 2011
Group 2010 Opening cost at 1 January 2010
Disposals
Impairment Disposals Closing accumulated amortisation at 31 December 2010
76
TE PŪRONGO 2011
Software $'000
Programme development $’000
WIP $’000
Total $’000
Opening cost at 1 January 2011
555
5,382
1,318
7,255
Additions
956
300
1,164
2,420
Impairment
(34)
(80)
(178)
(292)
Reclassification
313
-
-
313
-
-
(1,373)
(1,373)
Closing cost at 31 December 2011
1,790
5,602
931
8,323
Opening accumulated amortisation at 1 January 2011
(186)
(3,285)
-
(3,471)
Amortisation
(256)
(866)
-
(1,122)
34
55
-
89
(295)
-
-
(295)
-
-
-
-
(703)
(4,096)
-
(4,799)
369
2,097
1,318
3,784
1,087
1,506
931
3,524
Opening cost at 1 January 2010
435
4,688
1,223
6,346
Additions
150
694
451
1,295
Impairment
(30)
-
(356)
(386)
-
-
-
-
555
5,382
1,318
7,255
(128)
(2,453)
-
(2,581)
Amortisation
(88)
(832)
-
(920)
Impairment
30
-
-
30
-
-
-
-
(186)
(3,285)
-
(3,471)
Net book value at 1 January 2010
307
2,235
1,223
3,765
Net book value at 31 December 2010
369
2,097
1,318
3,784
Parent 2011
Disposals
Impairment Reclassification Disposals Closing accumulated amortisation at 31 December 2011
Net book value at 1 January 2011
Net book value at 31 December 2011
Parent 2010
Disposals Closing cost at 31 December 2010 Opening accumulated amortisation at 1 January 2010
Disposals Closing accumulated amortisation at 31 December 2010
annual report 2011
77
14
Investment in Open Wananga Limited
Open Wānanga Limited is a fully owned subsidiary of Te Wānanga o Aotearoa and is in the business of education. The balance date of the company is 31 December. The results of Open Wānanga Limited are consolidated into the group financial statements.
15
Early learning centres
During 2011, Te Wānanga o Aotearoa received grants from the Ministry of Education for early learning purposes.
Apakura Te Kākano Bulk funding
2011 $’000
2010 $’000
302
483
Incentive funding
Raroera Te Pūawai Bulk funding
2011 $’000
2010 $’000
480
536
Incentive funding
Language and kaupapa
2
2
Low socio-economic
4
5
Training
2
5
Special needs
4
4
306
490
Language and kaupapa
2
2
Training
5
7
495
554
495
554
495
554
2011 $’000
2010 $’000
536
550
Low socio-economic
9
9
Special needs
5
5
Language and kaupapa
2
2
Training
5
5
557
571
507
571
Total MOE funding received Funds applied to: Salaries
306
490
306
490
Total MOE funding received Funds applied to: Salaries
Manukau Bulk funding
2011 $’000
2010 $’000
524
577
Incentive funding 9
13
Special needs
4
6
Training
6
14
543
610
Total MOE funding received
Funds applied to: Salaries
Bulk funding Incentive funding
Low socio-economic
Total MOE funding received
Te Rau Oriwa
507
610
Property occupancy costs
30
-
Salaries
Professional development
6
-
Resources
15
-
543
610
Property occupancy costs
30
-
Professional development
5
-
557
571
Funds applied to:
Figures stated in the 2010 annual report were GST inclusive. The figures shown above are GST exclusive and for comparative purposes the 2010 figures have been changed accordingly.
78
TE PŪRONGO 2011
16
Financial Instruments
Te Wānanga o Aotearoa has policies to manage risks associated with financial instruments. Te Wānanga o Aotearoa is risk averse and seeks to minimise exposure from its treasury activities. The policies do not allow any transactions that are speculative in nature to be entered into.
(a) Market Risk
(b) Credit Risk
Price Risk
Credit risk is the risk that a third party will default on its obligation to Te Wānanga o Aotearoa causing Te Wānanga o Aotearoa to incur a loss. Due to the timing of its cash inflows and outflows, Te Wānanga o Aotearoa invests surplus cash into term deposits and government bonds which gives rise to credit risk.
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. Te Wānanga o Aotearoa is exposed to price risk because it invests in government bonds. This price risk is managed in accordance with the limits set out in Te Wānanga o Aotearoa investment policy.
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.
In the normal course of business, Te Wānanga o Aotearoa is exposed to credit risk from cash and term deposits with banks, debtors and other receivables and government bonds. For each of these, the maximum credit exposure is best represented by the carrying amount in the statement of financial position.
Te Wānanga o Aotearoa purchases library items from overseas which exposes it to currency risk.
With the exception of tauira fees, the group trades only with recognised and creditworthy third parties.
Fair value interest rate risk
Receivable balances are monitored on an ongoing basis with the result that the group’s exposure to bad debts is not significant as a result of the ability to withhold graduation from tauira who do not pay their fees.
Currency risk
Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments issued at fixed rates of interest create exposure to fair value interest rate risk. Te Wānanga o Aotearoa does not actively manage its exposure to fair value interest rate risk. Cash flow interest rate risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates create exposure to cash flow interest rate risk.
Te Wānanga o Aotearoa holds no collateral or other credit enhancements for financial instruments that give rise to credit risk. Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor's credit ratings (if available) or to historical information about counterparty default rates. Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
AA
-
50,355
-
46,093
AA-
59,690
-
55,035
-
Total cash at bank and term deposits
59,690
50,355
55,035
46,093
AAA
-
3,500
-
3,500
Total local authority and government stock
-
3,500
-
3,500
59,690
53,855
55,035
49,593
Counterparties with credit ratings Cash at bank and term deposits
Term deposits, local authority and government stock
Total financial instrument assets
annual report 2011
79
(c) Liquidity risk Management of liquidity risk Liquidity risk is the risk that Te Wānanga o Aotearoa will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available. Contractual maturity analysis of financial liabilities The table below shows an analysis of Te Wānanga o Aotearoa financial liabilities grouped according to maturity, based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.
Carrying amount $’000
Contractual cash flows $’000
Less than 1 year $’000
1-2 years $’000
2-5 years $’000
More than 5 years $’000
Creditors and other payables
10,932
10,932
10,932
-
-
-
Total
10,932
10,932
10,932
-
-
-
Creditors and other payables
18,230
18,230
18,230
-
-
-
Total
18,230
18,230
18,230
-
-
-
Creditors and other payables
8,914
8,914
8,914
-
-
-
Total
8,914
8,914
8,914
-
-
-
Creditors and other payables
18,790
18,790
18,790
-
-
-
Total
18,790
18,790
18,790
-
-
-
Group 2011
Parent 2011
Group 2010
Parent 2010
80
TE PŪRONGO 2011
Contractual maturity analysis of financial assets The table below analyses Te Wānanga o Aotearoa financial assets into relevant maturity groupings, based on the remaining period at the balance date to the contractual maturity date. Carrying amount $’000
Contractual cash flows $’000
Less than 1 year $’000
1-2 years $’000
2-5 years $’000
More than 5 years $’000
10,223
10,223
10,223
-
-
-
2,672
2,672
2,672
-
-
-
49,467
49,467
36,123
3,000
10,344
-
-
-
-
-
-
-
62,362
62,362
49,018
3,000
10,344
-
Cash and cash equivalents
9,191
9,191
9,191
-
-
-
Debtors and other receivables
2,476
2,476
2,476
-
-
-
45,844
45,844
32,500
3,000
10,344
-
-
-
-
-
-
-
57,511
57,511
44,167
3,000
10,344
-
Cash and cash equivalents
9,304
9,304
9,304
-
-
-
Debtors and other receivables
2,263
2,263
2,071
192
-
-
41,051
41,051
24,051
4,000
13,000
-
3,500
3,500
3,500
-
-
-
56,118
56,118
38,926
4,192
13,000
-
Cash and cash equivalents
6,093
6,093
6,093
-
-
-
Debtors and other receivables
2,300
2,300
2,108
192
-
-
40,000
40,000
23,000
4,000
13,000
-
3,500
3,500
3,500
-
-
-
51,893
51,893
34,701
4,192
13,000
-
Group 2011 Cash and cash equivalents Debtors and other receivables Other financial assets - term deposits - government stock Total
Parent 2011
Other financial assets - term deposits - government stock Total
Group 2010
Other financial assets - term deposits - government stock Total
Parent 2010
Other financial assets - term deposits - government stock Total
annual report 2011
81
(d) Sensitivity analysis The tables below illustrate the potential profit and loss and equity (excluding retained earnings) impact for reasonably possible market movements with all variables held constant based on the financial instrument exposures of Te Wānanga o Aotearoa at balance sheet date. 2011 $’000
Surplus
-100bps Other Equity
10,223
- government stock, term deposits² Total sensitivity to interest rate risk
Group
2010 $’000
Surplus
+100bps Other Equity
Surplus
-100bps Other Equity
Surplus
+100bps Other Equity
(102)
10,223
102
9,304
(93)
9,304
93
49,467
(495)
49,467
495
44,551
(446)
44,551
446
59,690
(596)
59,690
596
53,855
(539)
53,855
539
Interest rate risk Financial assets Cash and cash equivalents¹ Other financial assets
Explanation of sensitivity analysis – Group 1. Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $10,222,633 (2010 - $9,304,125) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $102,000 (2010 - $93,000). 2. Government stock & Term deposits A total of $49,467,037 (2010 - $44,551,000) of investments in government stock and term deposits are classified at fair value through equity. A movement in interest rates of plus or minus 1.0% has an effect on the fair value through equity reserve of $495,000 (2010 - $446,000). 2011 $’000
Surplus
-100bps Other Equity
9,191
- government stock, term deposits² Total sensitivity to interest rate risk
Parent
2010 $’000
Surplus
+100bps Other Equity
Surplus
-100bps Other Equity
Surplus
+100bps Other Equity
(92)
9,191
92
6,093
(61)
6,093
61
45,844
(458)
45,844
458
43,500
(435)
43,500
435
55,035
(550)
55,035
550
49,593
(496)
49,593
496
Interest rate risk Financial assets Cash and cash equivalents¹ Other financial assets
Explanation of sensitivity analysis – Parent 1. Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $9,191,264 (2010 - $6,093,202) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $92,000 (2010 - $61,000). 2. Government stock & Term deposits A total of $45,844,037 (2010 - $43,500,000) of investments in government stock and term deposits are classified at fair value through equity. A movement in interest rates of plus or minus 1.0% has an effect on the fair value through equity reserve of $458,000 (2010 - $435,000).
82
TE PŪRONGO 2011
(e) Capital management The capital of Te Wānanga o Aotearoa is its equity, which comprises general funds and property revaluation. Equity is represented by net assets. Te Wānanga o Aotearoa is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings and borrowings. Te Wānanga o Aotearoa manages its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. The group's equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings. The objective of managing the group's equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.
17
Equity Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
114,007
102,324
95,610
86,271
-
(22)
-
(22)
7,286
6,217
8,456
3,873
Capital contributions from the Crown
-
488
-
488
Suspensory loans from the Crown
-
5,000
-
5,000
121,293
114,007
104,066
95,610
12,485
9,898
12,437
10,021
Transfer to retained earnings on disposal of property
-
22
-
22
Land and buildings net revaluation gains
-
2,565
-
2,394
12,485
12,485
12,437
12,437
133,778
126,492
116,503
108,047
Retained earnings Balance at 1 January Property revaluation reserve transfer on disposal Surplus/(deficit) for the year
Balance at 31 December Property revaluation reserves Balance at 1 January
Balance at 31 December Total equity
Capital contributions The Crown have made equity contributions to Te Wānanga o Aotearoa in line with the recommendations outlined in the Wānanga Capital Establishment Report - Waitangi Tribunal Report 1999 (WAI 718). To date the Crown has made Equity contributions of $60,000,000 (2010 - $60,000,000). The Crown provides Quality Reinvestment Fund (QRF) funding for projects run by Te Wānanga o Aotearoa. A number of these projects have been funded as an equity contribution. There were no equity contributions in 2011 (2010 - $487,800).
annual report 2011
83
Suspensory loan A $20,000,000 suspensory loan has been entered into. This will complete the equity contributions agreed to in 1999. The remaining $5,000,000 of the loan was received in July 2010 (2009 - $5,000,000). Property revaluation reserves
Land and buildings
18
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
12,485
12,485
12,437
12,437
Statement of commitments and contingencies
(a) Commitments Capital commitments
Property, plant and equipment
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
2,251
144
2,251
144
2,251
144
2,251
144
Capital commitments represent capital expenditure contracted for at balance date but not yet incurred.
Operating lease commitments - Group as lessee The Group has entered into commercial leases on certain buildings where it is not in the best interest of the Group to purchase these assets. These leases have an average life of between 1 and 6 years with renewal terms included in the contracts. Renewals are at the option of the Group. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows:
Within one year After one year but not more than five years
84
TE PŪRONGO 2011
Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
1,318
-
-
-
12
-
-
-
1,330
-
-
-
Operating lease commitments - Group as lessor The Group owns a number of buildings and has entered into commercial leases where it is not in the best interest of the Group to use these buildings for their operations. These leases have an average life of between 1 and 2 years with renewal terms included in the contracts. Renewals are at the option of the lessee. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals receivable under non-cancellable operating leases as at 31 December are as follows: Group 2011 $’000
Group 2010 $’000
Parent 2011 $’000
Parent 2010 $’000
162
240
162
240
54
182
54
182
216
422
216
422
Within one year After one year but no more than five years
No contingent rents have been recognised in surplus or deficit during the period.
(b) Contingencies Personal grievances As at 31 December 2011, there was one personal grievance claim against Te Wānanga o Aotearoa (2010 - three). If the claim is successful, the estimated amount of the settlement costs would be approximately $6,000 (2010 - $25,000).
Contingent liabilities Litigation Te Wānanga o Aotearoa has no contingent liabilities as at balance date (2010 - NIL). Government funding Te Wānanga o Aotearoa has a contingent liability of $692,533 (2010 - $692,533) related to the creation of a new early learning centre in Manukau. The conditions surrounding the liability are that the centre should stay open for 10 years. Failure to achieve this will result in the repayment of the funding. Suspensory loan In 2011 the TEC approved the conversion of the suspensory loan to equity. It is no longer a contingent liability (2010 - $20,000,000). Financial guarantee Te Wānanga o Aotearoa entered an arrangement in 2008 with the Bank of New Zealand to provide a guarantee for Open Wānanga Limited. Contingent Assets Te Wānanga o Aotearoa has no contingent assets as at balance date (2010 - NIL).
annual report 2011
85
19
Related party disclosure
The consolidated financial statements include the financial statements of Te Wānanga o Aotearoa and its subsidiaries Open Wānanga Limited, Papatoa Forestry Limited and the Aotearoa Scholarship Trust. Equity interest
Investment
Country of Incorporation
2011 %
2010 %
2011 $’000
2010 $’000
Open Wānanga Limited
New Zealand
100
100
1
1
Papatoa Forestry Limited
New Zealand
100
100
-
-
Aotearoa Scholarship Trust
New Zealand
100
100
-
-
19.1 Open Wānanga Limited Open Wānanga Limited is a wholly owned subsidiary of Te Wānanga o Aotearoa. The board of Open Wānanga Limited is appointed by Te Mana Whakahaere of Te Wānanga o Aotearoa. Open Wānanga Limited provides educational services for Te Wānanga o Aotearoa and Te Wānanga o Aotearoa is part of the Open Wānanga Limited provider network. In May 2011, Open Wānanga Limited established a subsidiary company, Open English Limited. The subsidiary took over the English language delivery that was previously delivered by Open Wānanga Limited. In July 2011, Open English Limited purchased the assets of Dynaspeak English Limited, being the Dynaspeak English programme designed for delivery to international tauira.
Sales to Open Wānanga Limited Purchases from Open Wānanga Limited
2011 $’000
2010 $’000
1,481
1,791
24,543
23,950
13
84
8,703
10,553
Amounts owing by and to Open Wānanga Limited Trade receivables Trade payables
19.2 Dynaspeak English Limited Patrick Ibbertson is a director of Dynaspeak English Limited and is the general manager of Open English Limited, a wholly owned subsidiary of Open Wānanga Limited. Dynaspeak English Limited holds international tauira funds at balance sheet date in a separate trust account. Open English Limited invoices Dynaspeak English Limited for these funds. Open English Limited paid Dynaspeak English Limited for the purchase of the programme, rent and homestay fees.
Sales to Dynaspeak English Limited Payments to Dynaspeak English Limited
2011 $’000
2010 $’000
-
-
506
-
156
-
-
-
Amounts owing by and to Dynaspeak English Limited Trade receivables Trade payables
Dynaspeak English Limited is not a related party for parent in 2011. 86
TE PŪRONGO 2011
19.3 Aotearoa Scholarship Trust Aotearoa Scholarship Trust is a wholly owned subsidiary of Te Wānanga o Aotearoa and was established in April 2010. The board of trustees is appointed by Te Mana Whakahaere of Te Wānanga o Aotearoa. Aotearoa Scholarship Trust provides scholarships for tauira of Te Wānanga o Aotearoa. 2011 $’000
2010 $’000
Sales to Aotearoa Scholarship Trust
95
-
Payments to Aotearoa Scholarship Trust
20
2,182
Trade receivables
-
-
Trade payables
-
-
Amounts owing by and to Aotearoa Scholarship Trust
19.4 The Tertiary Education Commission Deirdre Dale is a Te Mana Whakahaere member of Te Wānanga o Aotearoa and was also a commissioner of the Tertiary Education Commission (TEC) until September 2011. The TEC provides funding to Te Wānanga o Aotearoa to enable it to provide educational services. Te Wānanga o Aotearoa paid the TEC for consultancy on contribution of Te Wānanga o Aotearoa to Aotearoa Project in 2010. 2011 $’000
2010 $’000
100,809
136,577
-
-
Trade receivables
-
-
Trade payables
-
-
Sales to Tertiary Education Commission Purchases from Tertiary Education Commission Amounts owing by and to Tertiary Education Commission
The Tertiary Education Commission is no longer a related party in 2011 through Deidre Dale and the figures above are for the period to September.
19.5 The University of Auckland Manuka Henare is a Te Mana Whakahaere member of Te Wānanga o Aotearoa and is also an employee of the University of Auckland. The University of Auckland supplies Te Wānanga o Aotearoa library with documentation such as tauira theses. 2011 $’000
2010 $’000
Sales to the University of Auckland
-
-
Purchases from the University of Auckland
1
7
Amounts owing by and to the University of Auckland
-
-
Trade payables
-
-
Amounts owing by and to University of Auckland
annual report 2011
87
19.6 Te Tau Ihu o Ngā Wānanga Bentham Ohia is Te Pouhere of Te Wānanga o Aotearoa and is also the chair of Te Tau Ihu o Ngā Wānanga. Te Tau Ihu o Ngā Wānanga is the collective name of the three wānanga in New Zealand: Te Wānanga o Raukawa, Te Whare Wānanga o Awanuiārangi and Te Wānanga o Aotearoa. All three wānanga pay an annual subscription to Te Tau Ihu o Ngā Wānanga. 2011 $’000
2010 $’000
-
-
20
31
Trade receivables
-
-
Trade payables
-
-
Sales to Te Tau Ihu o Ngā Wānanga Purchases from Te Tau Ihu o Ngā Wānanga Amounts owing by and to Te Tau Ihu o Ngā Wānanga
19.7 Manukau Institute of Technology Manuka Henare is a council member of Te Wānanga o Aotearoa and is a council member of Manukau Institute of Technology. Te Wānanga o Aotearoa rents rooms from Manukau Institute of Technology to deliver Te Ara Reo Māori programmes.
Sales to Manukau Institute of Technology Purchases from Manukau Institute of Technology
2011 $’000
2010 $’000
-
-
16
73
-
-
10
-
Amounts owing by and to Manukau Institute of Technology Trade receivables Trade payables
19.8 Advancement of Māori Opportunity (AMO) Bentham Ohia is Te Pouhere of Te Wānanga o Aotearoa and is the president of AMO. Te Wānanga o Aotearoa uses AMO in one-off projects and hired them for voice over work in 2011. 2011 $’000
2010 $’000
Sales to Advancement of Māori Opportunity
-
-
Purchases from Advancement of Māori Opportunity
2
-
Trade receivables
-
-
Trade payables
-
-
Amounts owing by and to Advancement of Māori Opportunity
88
TE PŪRONGO 2011
19.9 Te Waka Pupuri Putea Ltd June McCabe is a Te Mana Whakahaere member of Te Wānanga o Aotearoa and is also a director of Te Waka Pupuri Putea Ltd. Te Wānanga o Aotearoa rented office space for 6 months in 2011 from Te Waka Pupuri Putea Ltd. 2011 $’000
2010 $’000
Sales to Te Waka Pupuri Putea Ltd
-
-
Purchases from Te Waka Pupuri Putea Ltd
3
-
Trade receivables
-
-
Trade payables
1
-
Amounts owing by and to Te Waka Pupuri Putea Ltd
19.10 GTL Investments Limited GTL Investments Limited is a fully owned subsidiary of Aotearoa Institute. William Wetere is the brother of Kingi Wetere. Rongo Wetere is the father of Kingi Wetere, both William and Rongo are trustees of Aotearoa Institute. Open Wānanga Limited purchases tauira learning resources from GTL Investments Limited.
Sales to GTL Investments Limited Purchases from GTL Investments Limited
2011 $’000
2010 $’000
-
-
632
562
-
-
142
-
Amounts owing by and to GTL Investments Limited Trade receivables Trade payables
19.11 Television New Zealand June McCabe was a director of Television New Zealand until October 2010 and is also a board member of Open Wānanga Limited. Open Wānanga Limited used Television New Zealand for marketing purposes on its morning programme. 2011 $’000
2010 $’000
Sales to TVNZ
-
-
Purchases from TVNZ
-
122
Trade receivables
-
-
Trade payables
-
6
Amounts owing by and to TVNZ
Television New Zealand was not a related party in 2011.
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Te Wānanga o Aotearoa is the parent of the group and controls three entities, being Open Wānanga Limited, the Aotearoa Scholarship Trust and Papatoa Forestry Limited.
Significant transactions with government-related entities The government influences the roles of Te Wānanga o Aotearoa as well as being a major source of revenue. Te Wānanga o Aotearoa has received funding and grants from the Tertiary Education Commission totalling $153.382m (2010 - $153.659m) to provide education and research services for the year ended 31 December 2011.
Collectively, but not individually, significant transactions with government-related entities In conducting its activities, Te Wānanga o Aotearoa is required to pay various taxes and levies (such as GST, PAYE and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. Te Wānanga o Aotearoa is exempt from paying income tax and FBT. Te Wānanga o Aotearoa purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown. The purchase and provision of goods and services to government-related entities for the year ended 31 December 2011 are small when compared to the total expenditure and revenue of Te Wānanga o Aotearoa and have all been conducted on an arms' length basis. The purchase of goods and services included the purchase of electricity from Genesis, air travel from Air New Zealand and postal services from New Zealand Post. The provision of services to government-related entities mainly related to the provision of educational courses.
Terms and conditions of transactions with related parties Provision of services to and purchases from related parties are made in arm's length transactions at both normal market prices and normal commercial terms. Outstanding balances at 31 December 2011 and 2010 are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables. For the year end 31 December 2011, the group has not raised any provision for impairment of receivables relating to amounts owed by related parties as the payment history has been excellent, (2010 - NIL). This assessment is undertaken each financial year following an examination of the financial position of the related party and the market in which the related party operates in. When assessed as required the group raises such a provision.
90
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20
Key Personnel Remuneration
Te Mana Whakahaere remuneration Key personnel costs include Te Mana Whakahaere and sub-committees’ remuneration of $83,702 (2010 - $85,832) distributed as follows:
Appointment date
Retirement date
Meeting attendance
2011 $’000
2010 $’000
August 2004
-
12
25
25
Richard Batley
Te Mana Whakahaere / Te Ārai Tūpono
Tania Hodges
Te Mana Whakahaere
October 2001
-
10
8
9
Mana Forbes
Te Mana Whakahaere
June 1998
-
11
5
9
Lloyd Anderson
Te Mana Whakahaere / Te Ārai Tūpono
November 1993
-
11
10
8
June McCabe
Te Mana Whakahaere
March 2005
-
8
6
8
Toby Curtis
Te Mana Whakahaere
April 2009
-
11
8
8
Peter Joseph
Te Mana Whakahaere
September 2007
-
8
3
4
Deidre Dale
Te Mana Whakahaere
January 2008
-
10
6
4
Matthew Goodall
Te Mana Whakahaere
November 2009
July 2011
7
2
4
Manuka Henare
Te Mana Whakahaere
January 2006
-
4
2
3
Wayne McLean
Te Ārai Tūpono
July 2008
-
2
2
Steve Ruru
Te Ārai Tūpono
June 2010
-
2
1
Jo Hymers
Te Mana Whakahaere
July 2011
-
2
-
Gary Dyall
Te Ārai Tūpono
August 2011
-
1
-
Colleen Tuuta
Te Mana Whakahaere
August 2011
-
4
2
-
Neville Baker
Te Mana Whakahaere
July 2006
July 2010
-
-
1
84
86
6
Directors’ fees paid by Open Wānanga 2011 $’000
2010 $’000
Richard Batley
45
45
Lloyd Anderson
18
18
June McCabe
18
18
81
81
2011 $’000
2010 $’000
1,179
1,219
84
86
1,263
1,305
Key management personnel compensation
Kaihautū Te Mana Whakahaere
annual report 2011
91
Short term and employee welfare benefits Termination payments
21
Group 2011 $â&#x20AC;&#x2122;000
Group 2010 $â&#x20AC;&#x2122;000
1,263
1,305
-
-
1,263
1,305
Events after the balance date
There were no events after the balance date.
22
Performance against budget
Statement of comprehensive income Government grants Other government funding is below budget by $0.8m largely due to literacy projects that have been extended into 2012 ($0.4m) and other funding that will be reclaimed in 2012 ($0.24m). Other income Other income is below budget by $0.5m due to new business initiatives involving short courses to corporate clients not attracting the anticipated level of enrolments. Personnel costs Personnel costs are below budget by $1.4m due to lower staff numbers than anticipated. Depreciation and amortisation Depreciation and amortisation is below budget by $0.6m due to lower capital purchases in 2011 than was anticipated. Other expenses Other expenses are below budget by $0.3m largely due to savings received through improved procurement strategies. Statement of financial position Property, plant and equipment Group property, plant and equipment are below budget by $2.8m as a result of delays in planned capital expenditure projects. Cash and other financial assets Cash and other financial assets are above budget due to lower expenditure than anticipated and lower property, plant and equipment purchases than expected.
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