Published by: Te W채nanga o Aotearoa (Head Office - 320 Factory Road) PO Box 151, Te Awamutu, New Zealand Date of issue: 31st August, 2007
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Kei te päpä e Rewi Tangata whakawhiti o te rä, tangata körero nukuroa Nei rä ko mahara ka miria ake Kua memeha ngä räkau haemata o te küwao Möwai o te ngäkau kaniäwhea Me huri ki whea, ki a wïwï, ki a wäwä Ka tere tonu ki a koe me ö ihi, me ö wana Näu rä te taitamatäne i whiti He karamihi o te whatumanawa ka hua ake Noho tonu ki te kei o te waka Hei pïtau whakareia, hei karu ariki mö te haere Koia nei te anga whakamua Kei te päpä e Rewi, noho tonu rä Te Wänanga o Aotearoa was devastated at the passing of a much loved and respected kaumätua in early July. Rewi Panapa had been a driving force in the establishment and development of this wänanga, from its early days as the Waipa Kökiri Arts Centre to the institution it is today. Rewi was the first Chairperson of Te Mana Whakahaere. His commitment and contribution to the wänanga will always be remembered.
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Ko Te Kaupapa o Te Wänanga o Aotearoa Philosophy Charter: 1st January, 2004 – 31st December, 2007
Ki te whakawhiwhi i ngä mea angitü, ä, i ngä akoranga tino teitei katoa mä ngä Mäori me ngä iwi o Aotearoa me te ao Ki te waihanga i tëtahi taiao hei akoranga tikanga Mäori Ki te tautoko, ki te whakahau, ki te ärahi i ngä tauira katoa, i a rätou e aru ana i ngä whanaketanga i ngä akoranga me ngä mahi e pä ana ki a rätou Ki te whakawhiwhi i te mea akoranga whai kiko Ki te whakahau i ngä tauira katoa ki te ako kia whiwhi ai rätou i te puäwaitanga tino teitei o te mäiatanga Ki te whakahau i öna kaimahi, kia pai ai te haere o ngä tikanga o te mahi i whakaatu mai, kia whiwhi ai rätou i te puäwaitanga tino teitei o te mäiatanga
To provide holistic education opportunities of the highest quality for Mäori, peoples of Aotearoa and the world To provide a unique Mäori cultural learning environment To provide support, encouragement and guidance to all learners in their pursuit of personal development, learning and employment To provide practical learning experiences To encourage all learners to learn and achieve to their fullest potential To be a good employer and encourage staff to develop personally and professionally to their fullest potential
4 - Ko Te Kaupapa o Te Wänanga o Aotearoa - Philosophy
Ko Te Uaratanga o Te Wänanga o Aotearoa Mission Statement Charter: 1st January, 2004 – 31st December, 2007
Ko te whakarite mätauranga e hängai ana ki ngä wawata o tënei whakatupuranga, ki te whakaü hoki i ngä moemoeä o ngä whakatupuranga o te ao türoa, ki te whakatikatika kia märama ai ki te hä o te ao tawhito. Ki te whakatö ki roto i te hinengaro tangata te möhiotanga o ngä taonga tuku iho, tä rätou reo, tä rätou Mäoritanga e pai ai tä rätou torotoro i ngä iwi o te ao i runga i te mäia me te manawanui. Ki te whakamana i te pümanawa moe ki te ako hei taumata e hïkoi whakamua i roto i te ao hou. Ki te whakatakoto täkoha e whai hua ai. Kia manawapä anö. Kia mutu tonu, he käinga pai tënei ao.
To provide an education that best fits the aspirations of this generation, enhances the dreams of future generations, prepares for understanding the essence of past generations. To equip our people with knowledge of their heritage, their language, their culture, so they can handle the world at large with confidence and self-determination. To empower one’s potential for learning as a base for progress in the modern world. To make contributions of consequence. To care. To make our world a better place.
Ko Te Uaratanga o Te Wänanga o Aotearoa - Mission Statement - 5
Table of Contents Our People
.08
Te Mana Whakahaere (Council) Members
.08
Management
.08
Te Mana Whakahaere (Council) Chairperson's Report
.09
Pouhere Report
.11
2005 Overview
.12
Crown Relationship
.12
Waitangi Tribunal Claim Wai1298
.12
Charter
.12
Profile 2006 – 2008
.12
A1J1 Review
.13
Academic Quality Initiatives
.13
Seventh World Indigenous Peoples’ Conference on Education 2005 (WIPCE)
.14
Equal Opportunities for Tauira
.15
Tauira Participation
.15
Tauira Numbers
.15
Tauira Demographics
.15
Age Profile
.15
Gender Profile
.15
Ethnicity Profile
.16
Prior Activity
.16
Tauira Achievement
.16
Equal Opportunities for Employees
.17
Statements of Service Performance
.18
1.0 Student Participation
.18
2.0 Student Access
.18
3.0 Student Achievement
.19
3.1 Student Engagement and Retention
.19
3.2 Learner and Whänau Support
.19
3.3 Completion and Graduation
.20
4.0 Student Pathways 4.1 Staircasing
6 - Table of Contents
.20 .20
5.0 Capability
.21
5.1 Our Staff
.21
5.2 Equal Employment Opportunity
.21
5.3 Governance
.22
5.4 Academic Quality
.22
5.5 Audit and Review
.23
5.6 Management Support
.23
6.0 Equal Education Opportunities
.24
6.1 Young M채ori Students
.24
6.2 Pasifika Students
.24
6.3 Students with Disabilities
.24
7.0 Programme Development and Innovation
.25
7.1 Employment and Vocational Outcomes
.25
7.2 M채ori/Indigenous Cultural Knowledge and Standards
.25
7.3 Higher Learning
.26
7.4 Collaboration, Networking & Relationships
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8.0 Treaty of Waitangi
.27
8.1 Partnership
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8.2 Rangatiratanga
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8.3 Protection
.28
8.4 Kaupapa o Te W채nanga o Aotearoa
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8.5 Collaboration, Networking and Relationships
.29
9.0 Research 9.1 Research Capability
.29 .29
9.2 Research Foci and Approach
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9.3 Collaboration, Networking and Relationships
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Financial Review
.31
Statement of Responsibility
.32
Report of the Auditor General
.33
Statement of Accounting Policies
.36
Statement of Financial Performance
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Statement of Movements in Equity
.42
Statement of Financial Position
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Statement of Cashflows
.44
Financial Ratios
.45
Notes to the Financial Statements
.46
Statement of Commitments and Contingencies
61
Notes to the Statements of Service Performance
.63
Table of Contents - 7
Our People
Te Mana Whakahaere (Council) Members Constitution
Name
Appointed by the Minister of Education
Craig Coxhead Tania Hodges Bruce Martin
resigned 19 July, 2005
Wira Gardiner
appointed 14 March, 2005
Te Tumuaki (Chief Executive Officer) of Te W채nanga o Aotearoa
Dr Rongo Wetere
resigned 15 December, 2005
Te Pouhere (Chief Executive Officer) of Te W채nanga o Aotearoa
Bentham Ohia (Acting)
appointed 15 December, 2005
Academic Staff Representative
Arana Collett
resigned 19 July 2005 resumed 19 December, 2005
Kaum채tua of Te Mana Whakahaere (Council) of Te W채nanga o Aotearoa
Rev Napi Waaka
resigned 19 July, 2005 reappointed 19 December, 2005
Appointed by the Council
Lloyd Anderson Mana Forbes
resigned 19 July, 2005 reappointed 19 December, 2005
Rewi Panapa
deceased 3 July, 2005
Carol Nin
resigned 19 July, 2005
Eleanor Barton
resigned 19 July, 2005
Barry Hopkins
resigned 19 July, 2005
Richard Batley
Management Tumuaki
Rongo Wetere
resigned December, 2005
Acting Chief Operations Officer
John Mote
resigned February, 2006
8 - Our People
Te Mana Whakahaere (Council) Chairperson’s Report Tënä rä koutou i roto i ngä mihi ki ö tätou mate tärürü nui e hinga nei, e hinga nei. Tënei rätou kua riro ki te käpunipunitanga o ngä wairua, ki tua i te pae o maumahara, ä, waiho ake ana tätou i konei haku ai, taute ai ki a rätou. Ko te whakatau noa ake, ko rätou ki a rätou, ko tätou i roto i te wä nei. Kei te mihi hoki ki to tätou Arikinui, Te Ata-i-rangi-kaahu. Tënä anö tätou katoa. The 2005 financial year has been one of the toughest in Te Wänanga o Aotearoa’s 20-year history. I would like to thank Te Mana Whakahaere and all staff for their efforts and commitment in ensuring the continued professional experience for students during what was a very difficult year. The period was marked by intense political criticism and scrutiny and high-profile and unhelpful media coverage, which impacted severely on the institution’s reputation and morale. This situation has had a very real impact on the wänanga and its ability to continue to maintain the momentum it had until now enjoyed. The 2005 financial year marked the first decline in student enrolments for the institution since its creation, a decline of almost 10,000 students from 66,387 in 2004 to 57,843. The outcome of this decline was a significant loss for the period, made up of operating losses driven by increased overheads and spending against a reduction in enrolments and revenue. As explained in our 2004 Annual Report, intense political scrutiny has contributed to the delay in tabling the 2004 and 2005 Annual Reports. The delay is attributed to our strong commitment to address the issues raised by the Office of the Auditor-General in its ‘Inquiry into Certain Aspects of Te Wänanga o Aotearoa’. Contributing factors include extensive debate with the auditors about two qualifications that appear in this report and having to meet what the Council believes to be extraordinary reporting required by the Auditor-General's audit service provider, Deloitte, in terms of the documentation requested along with numerous questions. Despite providing substantial documentation, we have not received an unqualified opinion, which Te Wänanga o Aotearoa had received without exception until last year. It has been an expensive and lengthy process
that has, despite all realistic efforts and provision of requested documentation, failed to achieve an outcome deemed to be fair and reasonable by Te Mana Whakahaere. The pressures endured by Te Wänanga o Aotearoa throughout 2005 have forced some difficult decisions to ensure the institution’s continued survival. We are appreciative of the continued support we have received while charting a new course for the consolidation and rebuilding of the organisation. This new course includes creation of a new organisational structure and consolidation of our position in the tertiary sector. This programme of reform has and will continue to result in a refreshed institution that will continue to contribute to the educational aspirations of all New Zealanders. The priority of Te Mana Whakahaere is to ensure the survival of Te Wänanga o Aotearoa and the opportunities it provides through the embracing and nurturing experience that is ähuatanga and tikanga Mäori. Changes implemented by Te Mana Whakahaere were further driven by a signalled change in Government tertiary policy, with a move away from access and participation. This will have a significant impact on Te Wänanga o Aotearoa students who are predominately second chance learners returning to education. The organisation is concerned that these fiscally driven policies will continue to marginalise those people who rely on education to improve their cultural, social and economic growth. The composition of Te Mana Whakahaere was modified in July 2005 in response to the challenges then experienced by the organisation. The Council was consolidated to a five-member board. This smaller Te Mana Whakahaere ensured the agility needed to navigate what was a very testing period. Outcomes included the creation of an organisational restructure plan (Kökiri Whakamua and Te Anga Whakamua), recruitment of a new executive management and a complete audit of courses to determine their value to students and the institution. The Office of the Controller and Auditor-General released its report on the ‘Inquiry into Certain Aspects of Te Wänanga o Aotearoa’ in December 2005. This report and other internally driven audits have added value in providing
Te Mana Whakahaere (Council) Chairperson’s Report - 9
guidance in priorities for the redevelopment required within Te Wänanga o Aotearoa. It was through this period that the decision was taken by Te Mana Whakahaere to engage PricewaterhouseCoopers to assist with the implementation and introduction of commercial management and governance practices more appropriate to the scale of the organisation the wänanga has become. This move was also driven by a desire to secure stronger confidence from government funders. In December 2005, Dr Rongo Wetere resigned as Tumuaki. His vision to improve the lives of all people through education and to impact positively on communities was the foundation of this institution. His vision will live on in the kaupapa of the Te Wänanga o Aotearoa. We also welcomed Bentham Ohia as Pouhere / CEO for Te Wänanga o Aotearoa. Bentham continues a solid and rewarding career within the institution and brings to the position a dynamic can-do attitude coupled with a solid experience in senior tertiary education management. He also enjoys wide support from within the organisation, essential to ensuring we remain united through these difficult times.
As Chair, I would like to thank all Council members, our Pouhere, John Mote who was Chief Operations Officer through 2005 and Brian Roche and his team. In particular, Te Mana Whakahaere would again like to express gratitude and appreciation to all staff for their resilience and commitment to the survival of the institution. It has been through this commitment that we have continued to attract significant enrolments in what has been a very difficult period. It has also been through the dedication of staff that retention (83%) and completion (77%) rates for the institution have been further enhanced. I look forward to the continued support of staff, iwi and stakeholders to ensure the fruits of education remain available to all within our community.
remain available to all within our community.
Craig Coxhead Chairperson Te Mana Whakahaere
10 - Te Mana Whakahaere (Council) Chairperson’s Report
Pouhere Report
Kia atawhai mai te Runga Rawa ki a tätou e noho manene nei huri noa i te motu i ënei wä ihiihi. Kia whakahönoretia ia i roto i ngä timatanga me ngä whakaotinga körero. Tënä rä tätou i ö tätou mate tautini o te wä, otirä ngä mate katoa ö tätou, haere, haere, haere atu rä. Haere whakangarongaro atu ki te pö. Ä, käti ko rätou te hunga mate ki a rätou. Tätou te hunga ora ki a tätou. Tënei te reo maioha ki a koutou e rata nei ki te tümanako me te aroha. Ahakoa te pao o ngä ngaru, ka mïharo kei konei tonu ngä mörehu e hoe ana te waka. Paimärire ki a tätou. It is both a privilege and pleasure to be at the helm of Te Wänanga o Aotearoa, albeit in an interim role as acting CEO. Firstly, I would like to acknowledge the hard work of all past and present supporters of the organisation. The events of 2005 destabilised and paralysed the organisation for a significant part of the year. This resulted in a lack of mobilisation, motivation and leadership within the organisation and impacted on the ability of the Te Wänanga o Aotearoa to achieve all of the 2005 key performance indicators. The World Indigenous Peoples’ Conference on Education (WIPCE) was a successful showcase that Te Wänanga o Aotearoa should be proud of. It brought together thousands of people from many countries to celebrate indigenous cultures. To complement the academic programme, cultural events were scheduled to enhance the theme “Te Toi Roa” - Indigenous Excellence. Sub themes included leadership, research and development, and new horizons of knowledge. The manner in which Te Wänanga o Aotearoa staff volunteered their time and services, whilst in the midst of the Tribunal hearing and the inquiry by the Crown, showed their commitment and pride in all that Te Wänanga o Aotearoa fosters and aspires to achieve.
dreams of our people come true. Dr Wetere has made a huge impact on the lives of thousands of people from many different cultures. He will always be considered a visionary leader who initiated positive transformation for Mäori, New Zealanders and indigenous people across the world. We wish him all the best for the future. Nö rëirä, e te Tumuaki, te tangata näna i täwhana te ao hei whai öranga mö ngä iwi, mai i te orokohanga, tipitipi ana tö rongo. I päkükü te pere e koe kia haramai ngä tini makiu ki tö taha, tärai ai i te täonga nei – kei whea mai ngä mihi körero möu? anei ake, anei ake. In closing, I would like to thank all staff, Council members, tauira, whänau, hapü, iwi, external organisations and communities who have collectively put their talents and abilities to work for the benefit of Te Wänanga o Aotearoa. Kia kaha tätou. Kia ora rawa atu,
Bentham Ohia MBA
We accepted, with sadness, the resignation announcement of our founding Tumuaki, Dr Rongo Wetere, late in the year. This was no small issue for our institution. The mana, charisma, skill and passion of Dr Wetere within Te Wänanga o Aotearoa, among iwi and in the tertiary sector still resonates within the ethos of our wänanga. His legacy will be that Te Wänanga o Aotearoa remains a Mäori institution at the forefront of learning by providing innovative education and making the
Pouhere Report - 11
2005 Overview
Crown Relationship
Charter
In 2005, the Hon Minister of Education appointed Brian Roche of PricewaterhouseCoopers as, firstly Crown Observer and subsequently Te Mana Whakahaere appointed a Crown Manager of Te Wänanga o Aotearoa. The Crown Manager has had a working relationship with Te Wänanga o Aotearoa Council, the acting Chief Operations Officer and the acting Chief Executive Officer during the 2005 year. It is intended that this relationship will continue in 2006 with a view to establish the long term viability and sustainability of Te Wänanga o Aotearoa in the tertiary education sector.
Te Wänanga o Aotearoa’s current charter was approved by the Associate Minister of Education (Tertiary Education) in 2003. It came into effect on 1 January, 2004 and is due to expire on 31 December, 2007.
Waitangi Tribunal Claim Wai1298 The Waitangi Tribunal Claim (Wai1298) was lodged by Harold Maniapoto and Tui Adams (the Claimants) on behalf of the Aotearoa Institute Te Kuratini o Ngä Waka Trust Board. The claim related to disputed issues of control over Te Wänanga o Aotearoa, the range of programmes it may deliver and the diversity of people to whom it can deliver. The issues arose from the tension between the Crown’s right and responsibility to govern the institution and the self-determination or autonomy of the founding iwi, as found in and practised by its wänanga. Discussion surrounding the concept of a wänanga focussed on the term ‘ähuatanga Mäori’ (translated as ‘Mäori tradition’) as stated in Section 162 of the Education Act 1989. The Tribunal considered the translation of the term as ‘incomplete’. It stated that, while ‘ähuatanga Mäori’ can include tradition, this does not fully cover all that is implied in the term. The Tribunal considered the task of a wänanga is to teach using Mäori methods and in a Mäori way, and should be open to all who wish to learn by those methods and in that way. The Tribunal identified more than a dozen breaches of the principles of Te Tiriti o Waitangi, emphasising that these breaches stem primarily from the Crown’s failure to acquire a proper understanding of the nature of wänanga. The major objective in going forward is to work with the Crown on building a stronger relationship.
12 - 2005 Overview
On the 23 March, 2005, the then Hon. Minister of Education, Trevor Mallard, directed Te Wänanga o Aotearoa to review its Charter. Te Wänanga o Aotearoa was instructed to take, as a starting point for the review the definition of a wänanga as set out in Section 162 of the Education Act 1989. Successive drafts of the Charter were submitted to the TEC throughout 2005. After each submission, TEC responded with additional areas for development. Te Wänanga o Aotearoa made these changes if they were in line with institutional aims, objectives, values and strategic direction. The Waitangi Tribunal Claim Wai1298 placed the redevelopment of a Charter in abeyance.
Profile 2006 – 2008 Te Wänanga o Aotearoa’s Profile 2006-08 demonstrates how the institution will give effect to its Charter and indicates the future intentions and directions of the institution. A major focus of the Profile is to maintain our unique kaupapa, long-term financial viability and the changes that will improve the quality of our organisation. A key aspect of the Profile is to operationalise an agreement between Te Wänanga o Aotearoa and the Crown regarding a shared understanding of the core role of Te Wänanga o Aotearoa. This includes negotiating a shared understanding of mätauranga Mäori, ähuatanga Mäori and Te Tiriti o Waitangi obligations. It is the institution’s view that such an agreement, including strategies for embedding mätauranga Mäori in the education system, will support the success of Mäori and others to achieve their educational aspirations. It will also bring a common understanding of, and stability to, the relationship between Te Wänanga o Aotearoa and government agencies.
Development of capability within Te Wänanga o Aotearoa is another key goal identified in the Profile. This will involve:
Academic Quality Initiatives
• intensive training and development of staff;
Te Wänanga o Aotearoa undertook a self-assessment review of various aspects of its operations, including those relating to programme development, programme approval and quality assurance policies and processes. As a result of this activity, a number of initiatives were implemented, including:
• centralisation and consolidation of an expert curriculum unit which will focus on providing consistent and high-quality product to tauira and tutorial staff in regionalised delivery sites; and • support of staff who contribute directly to quality teaching and learning. These improvements will be supported by streamlining and strengthening business operations and tauira support services. The Profile was approved by the TEC during December, 2005.
A1J1 Review In 2005, the TEC initiated the A1J1 Assessment of Strategic Relevance (ASR) Review of programmes in the tertiary sector funded under the A1 and J1 funding categories. The aim of the review was to assess the quality and relevance of programmes to ascertain future funding levels. The TEC selected eleven programmes offered by Te Wänanga o Aotearoa to review. The programmes contributed 65.4% to Te Wänanga o Aotearoa income equating to nearly $113million per annum.
• a complete review of all policies to ensure better consistency and cohesiveness; • a standardisation of programme development practice; • the introduction of a rigorous programme approval process; and • a complete review of the Quality Management System. This work was incorporated into the institutional restructuring exercise undertaken during the year, initially through Kökiri Whakamua and subsequently through Te Anga Whakamua. This restructuring activity will continue into 2006. It is proposed that the restructure will reconfigure the functions of the existing academic area into two closely-related directorates, those of teaching and learning and support services. A primary intention of this reconfiguration is to enhance the quality of all aspects of the academic area by clearly defining roles and responsibilities, identifying management lines, clarifying processes and procedures and establishing key performance indicators to measure success.
The initial assessments by the TEC resulted in a finding of low strategic relevance for most of the programmes being reviewed. Subsequent re-submissions and negotiations with the TEC have resulted in ten programmes achieving strategic relevance with further discussion to follow. It is anticipated that all programmes will achieve strategic relevance on completion of the process.
2005 Overview - 13
Seventh World Indigenous Peoples’ Conference on Education 2005 (WIPCE) The WIPCE Conference was hosted by Te Wänanga o Aotearoa in collaboration with the University of Waikato and the Waikato Institute of Technology. The conference commenced in November with an official pöwhiri at Türangawaewae Marae, hosted by Te Arikinui Dame Te Ata-i-rangi-kaahu. The conference was held at the University of Waikato ending with a cultural extravaganza at the Waikato Stadium, attended by in excess of 10,000 people. The theme of the conference was ‘Te Toi Roa’ – Indigenous Excellence. Several events took place prior to and during the conference with a focus on emphasising arts and culture and including youth and community participation. A total of 2,752 delegates attended the conference from 20 countries including Hawaii, Australia, Canada and Aotearoa New Zealand. One of the achievements of the conference was that the key success of WIPCE 2005 was not that it was a conference, but more that it was a celebration. WIPCE promoted cultural and linguistic diversity among indigenous people and demonstrated a collective commitment to indigenous values by honouring elders and youth. The success of the conference was a tribute to the leadership of Dr Wetere and Aroha Te Kanawa and the contributions of staff.
14 - 2005 Overview
Equal Opportunities for Tauira
Tauira Participation
Age Profile
Te Wänanga o Aotearoa is committed to increasing participation in tertiary education, through reducing barriers and raising the foundation skills of tauira to enable them to begin a path of life-long learning.
The trend relating to age demographic of tauira has remained relatively constant since 2001, with those in the 40 plus age group making up approximately 40% of the tauira population. The following table shows age demographic statistics for 2005.
Tauira Numbers
2005
Figures show a 13.35% decrease in tauira numbers in 2005. This was, in part, a result of high employment rates and the challenges that the institution was facing.
15 to 17 years
2%
18 to 25 years
10%
26 to 30 years
11%
The following table shows tauira numbers from SDRs for 2001 to 2005.
31 to 40 years
29%
41 years plus
48%
Number of Students
2001
2002
2003
2004
2005
16423
44158
63387
66756
57843
The following table shows consumed EFTS from SDRs for 2001 to 2005. Number of EFTS
2001
2002
2003
2004
2005
6118
20769
34280
29671
27014
Tauira Demographics
Gender Profile Since 2000, Te Wänanga o Aotearoa has continued to attract large numbers of female tauira. The following table shows the percentages of males and females engaging in education at Te Wänanga o Aotearoa. Tauira Gender
2001
2002
2003
2004
2005
Male
26%
26%
30%
33%
32%
Female
74%
74%
70%
67%
68%
Te Wänanga o Aotearoa has consistently attracted high numbers of Mäori women and people in the 30 plus age group. This trend continued in 2005 with high numbers of tauira within this demographic enrolling in tertiary education.
Equal Opportunities for Tauira - 15
Ethnicity Profile Numbers of Mäori tauira engaging in education has remained strong since 2001. The proportion of tauira Mäori has decreased from 2002 as a result of increased numbers of Asian tauira joining language and settlement programmes. The following table shows ethnicity statistics for 2005.
Te Wänanga o Aotearoa continued to attract comparably high numbers of second chance learners in 2005. These tauira are key to the achievement of our kaupapa. The following table shows percentages of second chance learners engaging in education with Te Wänanga o Aotearoa since 2001. Second Chance Learners
2001
2002
20 03
2004
2005
33.26%
32.60%
25.60%
18.74%
15.55%
2005 NZ Mäori
45%
NZ European/European/Päkehä
18%
Asian
27%
Pasifika
6%
Other
4%
Tauira Achievement Tauira have continued to achieve well in their studies. The completion rate has continued to improve and the retention rate remains over 80%. The following table shows retention and completion statistics for the 2001 to 2005 period.
Prior Activity An increasing number of people in the workforce have enrolled on programmes to increase their skill levels following trends from previous years. The following table shows prior activities of tauira enrolling at Te Wänanga o Aotearoa in 2005. 2005 Wage or Salary Worker
39%
Unemployed / Beneficiary
22%
House-person or Retired
13%
Self-employed
6%
Overseas
6%
Secondary School Student
2%
University Student
3%
Wänanga Tauira
3%
Other
6%
16 - Equal Opportunities for Tauira
2001
2002
2003
2004
2005
Completion Rate
69%
66%
66%
74%
76%
Retention Rate
87%
85%
84%
83%
82%
Equal Opportunities for Employees
In accordance with its kaupapa, Te Wänanga o Aotearoa strives to be a good employer. As part of this commitment, the organisation is inclusive of all people, regardless of culture, ethnicity, age or gender. Full-time equivalent employee (FTEs) numbers have decreased to 1393 in 2005. This was, in part, as a result of a decrease in tauira numbers and, in part, bought about by organisational restructuring. The following table shows FTEs numbers for 2001 to 2005. FTEs
2001
2002
20 03
2004
2005
399
950
1232
1432
1393
The gender profile of employees has remained relatively constant for the past five years. The Tertiary sector statistics confirm that participation by females is about equal with males across the sector. Te Wänanga o Aotearoa has comparatively higher participation rates for females. This ratio closely matches the tauira gender ratio. The following table shows the percentage of males and females working in the institution. 2001
2002
2003
2004
2005
Male
43%
42%
38%
34%
37%
Female
57%
58%
62%
66%
63%
The age profile of employees has remained constant and reflects that of the tauira profile. The following table shows the age range of employees working in the institution between 2001 and 2005. 2001
2002
2003
2004
2005
< 25
10%
16%
14%
12%
8%
25 - 34
27%
27%
28%
28%
26%
35 - 44
29%
28%
29%
29%
30%
45 - 54
21%
19%
19%
20%
23%
55 plus
13%
10%
10%
11%
13%
The number of Mäori employees working at Te Wänanga o Aotearoa has increased from 38% in 2001 to 74% in 2005. As a Mäori organisation, this increase strengthens connections with iwi. The following table represents the ethnicity of employees for the 2005 period. 2005 NZ Mäori
74%
NZ European/European / Päkehä
12%
Pasifika
7%
Asian
3%
Not Stated Total
4% 100%
Equal Opportunities for Employees - 17
Statements of Service Performance 1.0 Student Participation 1.1 #
Te Wänanga o Aotearoa (TWOA) will continue to support the foundation and introductory* learning needs of its students. Key Performance Indicator
Target
Performance
1.1.1
TWOA will focus on retaining a high proportion of its students in foundation and introductory learning programmes
Total â&#x20AC;&#x201C; 45,000 Unit Retention 80%+
Achieved1
1.1.2
TWOA will increase the completion and graduation rates of students in foundation and introductory learning programmes
Unit Completion 50%+ Graduation 40%+
Achieved2
1.1.3
TWOA will increase the range of foundation and introductory learning programmes (levels 1-4).
Add one new programme
Achieved3
1.1.4
TWOA will improve the retention, completion and pathway rates of second chance learners.
Unit Retention 80%+ Unit Completion 50%+ Graduation 35% Pathways 20%+
Partially Achieved4
1.2 #
TWOA will demonstrate a commitment to assisting new New Zealanders into tertiary education. Key Performance Indicator
Target
Performance
1.2.1
Maintain the enrolment, completion and graduation rates for Kiwi Ora
Enrolment 15,000 Retention 80%+ Completion 50%+ Graduation 40%+
Achieved5
1.2.2
Implementation of Living and Speaking English Programme
Pilot implemented and reviewed
Achieved6
2.0 Student Access 2.1 #
TWOA will continue to ensure that students from a wide range of backgrounds and circumstances are able to access tertiary education. Key Performance Indicator
Target
Performance 7
2.1.1
New qualifications will be offered containing mixed-mode delivery.
2 new qualifications
Achieved
2.1.2
Programmes will be offered with on-line and other electronic, interactive methodologies included.
1 partial programme
Achieved8
2.1.3
TWOA will track and monitor the prior activity of all enrolling students
More than 35% of new students will come to TWOA from work
Achieved9
2.2 # 2.2.1 2.3 #
TWOA will review the effectiveness of satellite providers and their alignment with the TWOA Charter, Profile and TES. Key Performance Indicator Satellite provision is reviewed.
Target Review undertaken
Performance Achieved
10
TWOA will further develop and critique our understanding of the access issues for students and communities. Key Performance Indicator
Target
Performance 11
2.3.1
Student participation by Campus and Satellite.
Monitor and track
Achieved
2.3.2
Regional Management Structure is developed and implemented.
Regional Management Structure developed and early implementation
Partially Achieved12
*Foundation and Introductory Programmes are defined as programmes between NZQA levels 1 and 4
18 - Statements of Service Performance
3.0 Student Achievement 3.1 Student Engagement and Retention 3.1.1 #
TWOA will improve the engagement and retention of students in all its programmes. Key Performance Indicator
Target
Performance
3.1.1.1
Overall retention rates will improve
> 80%
Achieved13
3.1.1.2
All programmes will be supported to improve their retention rates.
Programme indicators and targets developed
Not achieved14
3.1.1.3
Research into student early withdrawal
Research undertaken and reported
Achieved15
3.1.2 #
TWOA will strengthen the quality of its kaiako and kaitiaki. Key Performance Indicator
Target
Performance
3.1.2.1
Implement a skills and qualification evaluation for kaiako and kaitiaki
Baseline skills and qualification evaluation implemented
Not achieved16
3.1.2.2
Develop and implement a training programme to address the gaps and needs.
Training programme developed and implemented
Not achieved17
3.2 Learner and Whänau Support 3.2.1 #
TWOA through Te Whänau Manaaki Tauira (Student Support Services) will provide additional assistance and support appropriate and relevant to student success. Key Performance Indicator
Target
Performance
3.2.1.1
Learner and whänau support model created by combining learning support/pastoral care with career development.
Model is refined to include mentor function of support for all TWOA schools
Not achieved
3.2.1.2
Establishment of career planning function for students.
Addition of service to smaller campuses
Achieved18
3.2.1.3
Existing learner and whänau support model refined to meet extended support requirements.
Additional support will be provided as required
Partially Achieved19
3.2.1.4
Development and expansion of a centralised student tracking system.
System fully implemented. Accurate reporting of all student support provided. Performance standards will be identified
Achieved20
3.2.2 #
TWOA, through Te Whänau Manaaki Tauira, will continue to develop models of ‘best practice’ for the support of Mäori and other students. Key Performance Indicator
Target
Performance
3.2.2.1
SSG funding maximised to provide student support and therefore enhance the retention and achievement of Mäori and Pacific students
All projects will achieve their stated objective and be completed on time, within budget
Partially achieved21
3.2.2.2
Satisfaction of supported students will be measured.
Satisfaction levels of supported students will be tracked and reported
Achieved22
Statements of Service Performance - 19
3.3 Completion and Graduation 3.3.1
TWOA will build on its recent significant contribution to Mäori tertiay completion† and graduation‡ rates.
#
Key Performance Indicator
Target
Performance
3.3.1.1
Student feedback will be systematically collected and reported on.
Baseline established and targets set
Achieved23
3.3.1.2
Completion and graduation rates for Mäori students
Completion 50%† Graduation 35%‡
Achieved24
3.3.2
TWOA will achieve high levels of completion and graduation for all of its students.
# 3.3.2.1
Key Performance Indicator TWOA will improve its completion and graduation rates for all students
Target Completion 50% Graduation 35% ‡ †
Performance Achieved
25
4.0 Student Pathways 4.1 Staircasing 4.1.1 #
TWOA will ensure there is a sound, coherent programme structure available for its students. Key Performance Indicator
Target
Performance
4.1.1.1
Review and strengthen programme and school structures
Programme and school structures reviewed and changes implemented
Partially achieved26
4.1.1.2
TWOA will review its marketing material and information to ensure there is up to date, relevant information on pathways to further education provided for all students.
Marketing review undertaken Recommendations implemented
Achieved27
4.1.1.3
TWOA will monitor and track the progression of students to further and higher qualifications within TWOA .§
Student conversion and staircasing pathways reported, baselines established and targets set
Achieved28
4.1.2 # 4.1.2.1
4.1.3
TWOA will maintain clear academic pathways between programmes within TWOA and with other tertiary institutions. Key Performance Indicator TWOA will track the destinations of its graduates into further education and employment.
Target Graduate Survey commissioned and implemented. Baseline created and targets for 2006 – 2007 set
Performance Partially achieved29
TWOA will demonstrate a commitment to understanding the pathway options taken by its students.
#
Key Performance Indicator
4.1.3.1
Monitor and track local and regional employment opportunities for TWOA graduates.
Target External Stakeholder Survey commissioned
Performance Not achieved
† Completion rates refer to unit completion ‡ Graduation rates refer to the number of students who complete a qualification as a proportion of funded students from the programme § Further education is a count of all funded students participating in education during the reporting year who have previously participated in a TWOA programme. Higher education is a count of all funded students participating in education during the reporting year who have previously participated in a lower level TWOA programme.
20 - Statements of Service Performance
5.0 Capability 5.1
Our Staff
5.1.1 #
TWOA will attract quality staff who have the potential to succeed within the organisation and wider tertiary education sector Key Performance Indicator
Target
Performance
5.1.1.1
Develop a comprehensive recruitment strategy.
Redesign and implementation of recruitment strategy
Partially achieved30
5.1.1.2
Induction training for new employees includes vision, Kaupapa and history of TWOA.
Implement, review and refine module
Achieved31
5.1.1.3
Employee succession planning programme is developed.
Model developed and implemented
Not achieved32
5.1.1.4
Staff satisfaction will be monitored and tracked.
Implement and report on staff satisfaction survey. Baseline established.
Not achieved33
5.1.1.5
Salaries, benefits and performance reward systems are reviewed.
Model is operational
Achieved34
5.1.2 #
TWOA will provide staff with the skills and tools needed to align with our Kaupapa and achieve our goals Key Performance Indicator
Target
Performance
5.1.2.1
Staff are encouraged and supported to participate in learning about Te Reo me ona Tikanga.
Daily Commitment
Achieved35
5.1.2.2
Employees are supported to undertake formal education at a degree, masters or doctorate.
20%
Not achieved36
5.1.2.3
A Management Mentor scheme is established
Access to Senior Management mentors provided for selected employees
Achieved37
5.2 Equal Employment Opportunity 5.2.1 #
TWOA will be a good employer and encourage staff to develop personally and professionally to their fullest potential Key Performance Indicator
Target
Performance
5.2.1.1
Implement an EEO policy
Monitor and report on EEO policy
Partially achieved38
5.2.1.2
Appoint an EEO Officer
Achieved
Not achieved39
5.2.1.3
Salaries, benefits and performance reward systems are reviewed
Current model reviewed, a new model developed and implemented
Partially achieved40
5.2.1.4
All employees have a Professional Development Plan (PDP) that aligns with TWOA goals
Achieved for all staff
Not achieved41
Statements of Service Performance - 21
5.3 Governance 5.3.1
TWOA will strengthen and consolidate the effectiveness of governance**
#
Key Performance Indicator
Target
Performance 42
5.3.1.1
Establish specialised risk management function providing advice to the organisation and Te Mana Whakahaere
Risk Management function established and operating
Achieved
5.3.1.2
Improved reporting processes from Executive to Council
Measure policy effectiveness
Achieved43
5.3.1.3
Revision of Te Mana Whakahaere members handbook
Handbook revised and re-drafted
Partially achieved44
5.3.1.4
Continue the development of a robust policy framework to cover all aspects of operations and the basis of accountabilities and delegations.
Framework operational
Partially achieved45
5.4 Academic Quality 5.4.1
TWOA will have a high quality, effective academic management system.
#
Key Performance Indicator
Target
Performance
5.4.1.1
A plan for the strategic review for all programmes is put in place.
11
Achieved46
5.4.1.2
NZQA audit outcomes improve
NZQA audits statements show reduced number of issues
Achieved47
5.4.1.3
Internal audits indicate policies and procedures are being implemented.
Internal audit reports demonstrate improvement
Achieved48
5.4.1.4
Stakeholder consultation policy and processes for all programmes are strengthened and improved.
Stakeholder survey commissioned and implemented
Not achieved49
5.4.1.5
New programmes submitted to Academic Board demonstrate that key stakeholders have been consulted.
Policy has been followed for all new programmes submitted to Academic Board
Not achieved50
5.4.1.6
Preparation of new programmes for submission to NZQA is improved.
All programmes submitted to NZQA are approved
Partially achieved51
5.4.1.7
High levels of student satisfaction with existing programmes.
Baseline established and targets set
Not achieved52
**TWOA Charter
p13 number 3, 4, 5
22 - Statements of Service Performance
5.5 Audit and Review 5.5.1 #
TWOA is a leader within the sector through its innovative approach to Quality Management Key Performance Indicator
Target
Performance 53
5.5.1.1
Establish a quality management function that includes both Academic and Corporate Services areas.
QM function established
Achieved
5.5.1.2
Develop audit programmes that measure compliance along with continuous improvement.
Audit programme developed and implemented
Achieved54
5.5.1.3
Implement innovation pool that will develop and pilot innovative ideas and thinking.
Process for developing and piloting best practice established and implemented
Not achieved55
5.5.1.4
Improvements in the outcomes of external audits.
Financial audits increase one level
2004 audit not completed yet.
5.5.1.5
Performance Indicator Tables are implemented
Campus/school league tables piloted
Not achieved56
Campus/school tables reviewed Business unit tables developed and piloted
5.6 Management Support 5.6.1 # 5.6.1.1
5.6.2 # 5.6.2.1
5.6.2.2
5.6.3 # 5.6.3.1
Improve data quality and integrity Key Performance Indicator Conduct information and technology review
Target Review recommendations implemented
Performance Achieved
57
Availability and accessibility of institutional research and intelligence Key Performance Indicator
Target
TWOA student and internal customer surveying policies and procedures established.
Policies developed
Establishment of a Management Information Unit.
External reporting meets timeliness and quality standards
Performance Partially achieved58
First surveys implemented and baselines established Achieved59
Commitment to high quality monitoring and reporting Key Performance Indicator Development and implementation of a campus and business unit performance indicator framework.
Target Performance framework launched and implemented
Performance Not achieved
Statements of Service Performance - 23
6.0 Equal Education Opportunities 6.1 Young Mäori Students 6.1.1 #
TWOA will attract and retain young Mäori students. Key Performance Indicator
Target
Performance
6.1.1.1
TWOA will undertake a needs analysis of young Mäori educational aspirations and learning experiences.
Needs analysis designed, implemented and reported
Not achieved
6.1.1.2
TWOA will increase the enrolments of young Mäori students.
Enrolments 4,100
Not achieved60
6.1.1.3
TWOA will improve the retention and completion rates of young Mäori students.
Retention 80% Completion 50%
Partially achieved61
6.1.1.4
TWOA will provide pathways for young Mäori students.
Further Education 27% Higher Education 14%
Achieved62
6.2 Pasifika Students 6.2.1 #
Te Wänanga o Aotearoa will attract and retain Pacific Island learners Key Performance Indicator
Target
Performance
6.2.1.1
Establishment of Advance Pasifika group.
Pasifika advisers appointed in Manukau and Porirua
Not achieved63
6.2.1.2
Recruitment of Pasifika students onto TWOA programmes increases.
5,000
Not achieved64
6.2.1.3
Retention of Pasifika students maintained
80%+
Not achieved65
6.2.1.4
Completion of Pasifika students improves
50%+
Achieved66
6.3 Students with Disabilities 6.3.1 #
††
TWOA will continue to support students with disabilities to achieve in their chosen programme of study. Key Performance Indicator
Target
Performance
6.3.1.1
Develop a culturally appropriate strategic plan to enhance Te Wänanga o Aotearoa support systems and structures for TSDs††.
Strategic Plan developed and implemented
Partially achieved67
6.3.1.2
Maximise the retention and completion of supported TSDs.
Retention 80% Completion 50%+
Partially achieved68
TSD is defined as tertiary students with disabilities
24 - Statements of Service Performance
7.0 Programme Development and Innovation 7.1 Employment and Vocational Outcomes 7.1.1 #
TWOA will make a significant contribution to Mäori and national workforce needs of the future. Key Performance Indicator
Target
Performance
7.1.1.1
Development and delivery of the Greenlight programme.
Development completed and full implementation
Achieved69
7.1.1.2
Strengthen workplace practicum across vocational programmes.
Report and recommend practicum models for vocational programmes
Not achieved
7.1.1.3
Development of Mäori medium teacher education pathways.
Development of Rümaki programme
Not achieved
7.1.1.4
Delivery of a bicultural social worker practice degree
Implementation
Achieved70
7.1.1.5
Development of a visual arts pathway in Te Kura Toi.
Initial submission to NZQA
Not achieved
7.1.2
TWOA will ensure that Mäori business and management capability will be increased.
#
Key Performance Indicator
7.1.2.1
Delivery of an iwi environmental management and trusteeship degree
Implementation
Target Achieved71
Performance
7.1.2.2
Development of a small business management pathway
Implementation completed; Submit for approval
Achieved72
7.1.2.3
Development of an information technology degree
Submit for NZQA approval
Not achieved
7.2 Mäori/Indigenous Cultural Knowledge and Standards 7.2.1 #
TWOA will contribute to the development of Mäori/Indigenous cultural standards and criteria for indigenous programme development. Key Performance Indicator
Target
Performance 73
7.2.1.1
TWOA completes quality assurance research.
Research undertaken
Achieved
7.2.1.2
Active participation and membership of WINHEC.
Further participation and consolidation of WINHEC structures and processes
Achieved74
7.2.1.3
Research and planning for the development of Mäori cultural standards and criteria.
Terms of reference developed, research commissioned and undertaken
Not achieved
Statements of Service Performance - 25
7.3 Higher Learning 7.3.1 #
TWOA will continue to develop and deliver innovative, culturally significant graduate and post-graduate programmes. Key Performance Indicator
Target
Performance
7.3.1.1
Development of specialist skills in creative disciplines in the Te Kura Toi to provide a Post-graduate Diploma Visual Communications and a Master of Visual Arts.
Initial submission to NZQA
Not achieved75
7.3.1.2
Research and programme development of pathways to excellence in the Mäori language (Te Ara Reo Mäori, Te Tohu Mätauranga and Te Panekiretanga o Te Reo)
Implement Diploma in Te Ara Reo Mäori Proposal submitted to Academic Board and NZQA for Bachelor of Te Reo Mäori Evaluation of pilot and programme development in Te Panekiretanga o Te Reo
Not achieved76
7.3.1.3
Development of a Master of Education that focuses on Mäori pedagogy, research methods acceptable to indigenous peoples and educating people so they can make constructive contributions to the discourses surrounding education for Mäori.
Programme and curriculum development
Not achieved77
7.3.1.4
A Master in Mäori and Pacific Performing Arts
Programme and curriculum development
Not achieved78
7.4 Collaboration, Networking & Relationships 7.4.1 #
In the development of programmes, TWOA will ensure it fosters innovative collaboration and cooperation with stakeholders. Key Performance Indicator
Target
Performance
7.4.1.1
Host and support a wider range of industry hui.
Review current industry hui strategy and report Strategies developed to enhance and improve industry hui outcomes
Not achieved79
7.4.1.2
Formalise and centralise the documentation of collaborative work for the purpose of programme development.
Monitor and track implementation
Not achieved
7.4.1.3
Complete the implementation of a strategic review process which considers updated stakeholder consultation and informs the development of existing programmes.
Fully implemented
Achieved80
7.4.1.4
Improve relationships with schools in the regions.
Review current school relationship strategies. Report and develop strategies for improvement
Not achieved81
7.4.1.5
Be strategic in developing new relationships with other TEIs.
Review current relationships with other TEIs. Report and develop recommendations
Achieved82
7.4.1.6
Maintain and develop new relationships with hapü, iwi and Mäori.
Hui continued
Achieved83
7.4.1.7
Maintain and develop new relationships with Indigenous peoples and other global communities.
Invitations received and considered strategically
Achieved84
26 - Statements of Service Performance
8.0 Treaty of Waitangi 8.1 Partnership 8.1.1
TWOA will be an accountable and responsible Treaty partner
#
Key Performance Indicator
Target
Performance
8.1.1.1
Partnership agreement between the Ministry of Education and TWOA that clearly defines the specific role of TWOA in relation to other TEIs
Planned and negotiated
Partially achieved85
8.1.1.2
TWOA is represented on key national education working parties.
Plan for national education working party representation completed and implemented
Achieved86
8.2 Rangatiratanga 8.2.1 #
TWOA will advance its Mäori students, staff and governance in line with the principle of rangatiratanga. Key Performance Indicator
Target
Performance
8.2.1.1
Number of Mäori student enrolments • Total • By TWOA Campus • By Satellite • Mahi Ora • Kiwi Ora
Maintain
Not achieved87
8.2.1.2
Mäori student completion and graduation rates.
Completion – 50%+ Graduation – 40%+
Achieved88
8.2.1.3
Percentage of Mäori staff.
75%
Not achieved89
8.2.1.4
Mäori staff qualifications.
Improve
Achieved90
8.2.1.5
Number of Mäori members of Council.
Maintain
Achieved91
Statements of Service Performance - 27
8.3 Protection 8.3.1 #
TWOA will ensure that te reo Mäori and Mäori programmes will be maintained and strengthened through ongoing development and enrichment of programmes. Key Performance Indicator
Target
Performance
8.3.1.1
A new Kura Mäori established.
Kura Mäori implemented
Partially achieved92
8.3.1.2
Develop pathways to employment and higher learning Kura Mäori cultural programmes.
Implement Diploma in Te Ara Reo Mäori Proposal submitted to Academic Board and NZQA for Bachelor of Te Reo Mäori Evaluation of pilot and programme development in Te Panekiretanga o Te Reo
Not achieved93
8.3.1.3
Develop and share the Te Arataki Manu Körero programme with other Iwi.
Implement in programme Te Arawa Consider programme for Tauranga Moana
Achieved94
8.3.1.4
Work with the Crown to ensure that the protection of te reo Mäori and mätauranga Mäori is supported and resourced as required.
Negotiate with Crown and sign an agreement
Not achieved95
8.3.1.5
Work with the Crown to ensure the improvement of Mäori literacy competencies are improved for better engagement.
Negotiate with Crown and sign an agreement
Not achieved96
8.3.1.6
A Mäori curriculum advisor employed in the Academic department.
Position filled
Achieved97
8.3.1.7
Research outputs about Mäori and literacy from students or elsewhere.
Baseline established
Achieved98
8.4 Kaupapa o Te Wänanga o Aotearoa 8.4.1 #
TWOA kaupapa will continue to be supported by students and staff and their commitment to our distinctive kaupapa. Key Performance Indicator
Target
Performance
8.4.1.1
Student orientations include vision, kaupapa and history of TWOA across all campuses.
Review current student orientations across campuses
Partially achieved99
8.4.1.2
Staff inductions will be reviewed in terms of the kaupapa of TWOA.
Review staff inductions
Achieved100
8.4.1.3
Draft history and record of TWOA will be completed
Final draft complete
Achieved101
8.4.1.4
Staff satisfaction survey completed
Survey designed and implemented
Not achieved
28 - Statements of Service Performance
8.5 Collaboration, Networking and Relationships 8.5.1
TWOA will continue to work with hapü, iwi and Mäori regionally and nationally.
#
Key Performance Indicator
Target
Performance
8.5.1.1
Strengthen the way in which we formalise and centralise the collaboration and networking that contributes to continued hapü, iwi and Mäori organisational support of the needs of TWOA students, staff and kaupapa
Collect details of initiatives Develop and implement a best practice model
Partially achieved102
8.5.1.2
Campus open days and participation in local and regional community events
Reviewed and recommendations considered
Achieved103
8.5.1.3
Improve relationships with schools in the regions
Review current school relationships and report
Not achieved104
8.5.2
TWOA will develop strategic alliances and collaborate in ways that benefit hapü, iwi and Mäori.
# 8.5.2.1
Key Performance Indicator Developing new strategic relationships with other TEIs
Target Review current relationships with other TEI’s and report
Performance Partially achieved105
9.0 Research 9.1 Research Capability 9.1.1 #
TWOA will support staff to make a significant contribution to New Zealand national goals through research with high relevance to Mäori. Key Performance Indicator
Target
Performance
9.1.1.1
First research output produced by new Mäori or Wänanga researchers.
Increase on 2004 figure
Not achieved106
9.1.1.2
Mäori staff studying towards Masters and Doctorates: • Curtin University of Technology • other universities
Baseline established
Achieved107
9.1.1.3
Non-Mäori staff studying towards Masters and Doctorates: • Curtin University of Technology • other universities
Baseline established
Achieved108
9.1.1.4
Research outputs relating to Mäori topics are included in the TWOA research register
61
Not achieved109
9.1.1.5
Te Whänau Manaaki Rangahau (TWMR) plan implemented
Plan implemented
Not achieved110
9.1.1.6
TWOA research register records all research outputs
95
Not achieved111
9.1.1.7
Research outputs start to be developed as an income stream.
Strategy developed and implementation started
Achieved112
Statements of Service Performance - 29
9.2 Research Foci and Approach 9.2.1 #
TWOA will develop specialist research foci utilising research approaches of high relevance to Mäori. Key Performance Indicator
Target
Performance
9.2.1.1
Strategic plans for three Research Centres of Excellence completed
Strategy developed and implementation started
Partially achieved113
9.2.1.2
Te Panekiretanga o Te Reo research plan implemented
Research strategy developed and implemented
Partially achieved114
9.3 Collaboration, Networking and Relationships 9.3.1 #
TWoA will continue to develop strategic alliances and collaborate with communities in research of high relevance to Mäori and New Zealand's national goals. Key Performance Indicator
Target
Performance 115
9.3.1.1
Strengthen relationships with Ngä Pae o te Märamatanga and its members
Strategy developed and implemented
Achieved
9.3.1.2
Be strategic in developing new research relationships with other iwi
Review current research relationships with iwi and report
Not achieved
9.3.1.3
2005 World Indigenous Peoples’ Conference hosted in Hamilton (in collaboration with the University of Waikato and WINTEC)
Planning continues and event held
Achieved116
30 - Statements of Service Performance
Financial Review EFTS Our total EFTS achieved this year was 27,014. This was a decrease of 9% on the results for 2004. The main decrease in EFTS occurred in the Mahi Ora, Te Ara Reo Mäori and Kiwi Ora programmes. These decreases were offset to some extent by increases in the enrolments for our business and computing programmes.
The income profile for 2005 remained consistent with the profile from last year. However, in actual dollar terms the drop in Government funding was mirrored by a similar drop in other income.
Expenditure The profile of our expenditure is shown in the table below.
Financial Position
Source
2005
2004
2003
2002
2001
Personnel Costs
43%
35%
36%
37%
32%
Net assets as at year end are $84m, which is a decrease of $10m on last year.
Resources/ Administration
41%
43%
50%
37%
52%
A crown funding facility of $20 million was approved during the year to assist the organisation with short term cash requirements. During the year $12 million was drawn down and $6 million was repaid leaving $6 million drawn down at the end of the year.
Trading
-
-
-
11%
5%
Property Costs
8%
8%
8%
7%
7%
Depreciation
8%
5%
6%
8%
4%
Impairment of Assets
-
9%
-
-
-
Two properties were disposed of during the year. These were the Öhaupö Road property near Hamilton and the Whangaparäoa property. This was part of an ongoing rationalisation of owned and leased properties which occurred during the year.
Personnel costs have increased in relation to all other costs within the organisation. This is partly a reflection of the change in the programme mix offered during 2005 when compared with previous years. Furthermore the organisation began to incur the first stage of costs associated with its restructure.
Overall Financial Performance
Cash Flow
The net deficit of $9.7m was greater than the budgeted deficit of $4.2m. The main drivers of this variance were EFTS targets not being reached ($8.5m shortfall) and personnel costs exceeded budget by $4m. However it was pleasing to note that other costs achieved a savings of $7.6m against budget.
The opening cash balance held at the organisation was $14.7m. There was a negative net cash flow from operations of $5.4m for the year and a positive net cash flow from financing activities of $6m. However these were offset by a negative cash flow from purchases of property, plant and equipment of $5.5m.
Income
Accordingly the total net decrease in cash balances was $4.9m giving a closing cash balance of $9.8m. This amount included the $6m treasury facility that was drawn-down at year end.
The profile of our income streams is shown in the table below. Source
2005
2004
2003
2002
2001
MOE
89%
89%
94%
94%
81%
Fees
3%
2%
2%
3%
15%
Other
8%
9%
4%
3%
4%
Financial Review - 31
Statement of Responsibility In the financial year ended 31 December, 2005, Te Mana Whakahaere (the Council) and the management of Te Wänanga o Aotearoa were responsible for: 1. preparation of the annual financial statements and the judgements used in them; and 2. establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and In the opinion of Te Mana Whakahaere and management of Te Wänanga o Aotearoa, the annual financial statements for the financial year ended 31 December, 2005 fairly reflect the financial position and operation of Te Wänanga o Aotearoa.
Craig Coxhead - Council Chair person B Soc Sci, LLB(Hon), LLM(Waikato) Date: Friday, 31 August 2007
32 - Financial Review
Bentham Ohia – Pouhere Exec MBA, Dip T, BA
Brian Roche - Crown Manager
Date: Friday, 31 August 2007
Date: Friday, 31 August 2007
CA, BCA (Victoria)
Report of the Auditor General TO THE READERS OF TE WÄNANGA O AOTEAROA TE KURATINI O NGÄ WAKA AND GROUP’S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 The Auditor-General is the auditor of Te Wänanga o Aotearoa Te Kuratini o Ngä Waka (the Wänanga) and group. The Auditor-General has appointed me, Stephen Lucy of Audit New Zealand, using the staff and resources of Deloitte, to carry out the audit of the financial statements of the Wänanga and group, on his behalf, for the year ended 31 December 2005.
We draw attention to the fact that the scope of the audit for the year ended 31 December 2004 was limited because the Wänanga and group did not maintain adequate systems and controls during the year ended 31 December 2004 to identify all related party transactions, including any amounts receivable from or payable to related parties as at 31 December 2004. In our opinion, except for adjustments that might have been found to be necessary had we been able to obtain sufficient evidence over related party transactions, the financial statements and the comparative information of the Wänanga and group on pages 18 to 30 and 36 to 62: • comply with generally accepted accounting practice in New Zealand; and
Qualified Opinion – Limitation in Evidence for Related Party Transaction Disclosures between 1 January 2005 and 8 March 2005 The Wänanga and group did not maintain adequate systems and controls between 1 January 2005 and 8 March 2005 to identify all related party transactions. Following the appointment of the Crown Manager on 8 March 2005, adequate systems and controls were put in place to identify such transactions. Despite the disclosures in Note 6 on page 43 and Note 20 on pages 56 to 58 and adequate systems and controls being put in place to identify related party transactions after 8 March 2005, we are unable to satisfy ourselves, for the transactions made between 1 January 2005 and 8 March 2005: • that all related party transactions have been properly recorded and disclosed in the financial statements, in accordance with Financial Reporting Standard No.9: Information to be Disclosed in Financial Statements (FRS-9), and Statement of Standard Accounting Practice No. 22: Related Party Disclosures (SSAP-22); • that the related party transactions have been conducted on an arm’s-length basis; and • that the assertions underlying the recognition of related party transactions in the financial statements of the Wänanga and group fairly reflect their economic substance.
• fairly reflect: - the Wänanga and group’s financial position as at 31 December 2005; - the results of operations and cash flows for the year ended on that date; and - the service performance achievements measured against the performance targets adopted for the year ended on that date. The audit was completed on 31st August 2007, and is the date at which our qualified opinion is expressed. The basis of our opinion, which refers to fundamental uncertainties, is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence.
Basis of Opinion We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. However, the scope of our work was limited due to the limitation in evidence over the disclosure of related party transactions. We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial
Financial Review - 33
statements did not have material misstatements whether caused by fraud or error. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements. We are unable to determine whether there are material misstatements because the scope of our work was limited due to the limitation in evidence over the disclosure of related party transactions, as we referred to in our opinion.
Fundamental Uncertainty – Validity of the Going Concern Assumption In forming our opinion, we considered the adequacy of the disclosures made on pages 36 and 37 of the financial statements about the validity of the going concern assumption. We consider the disclosures to be adequate. The disclosures outline the factors the Wänanga and group considered in adopting the going concern assumption, including:
The audit involved performing procedures to test the information presented in the financial statements. We assessed the results of those procedures in forming our opinion.
• the uncertainty over the actual number of Equivalent Full Time Students that will be enrolled for the years ending 31 December 2007 and 31 December 2008; and
Audit procedures generally include:
• the uncertainty over the Council’s negotiations for a $20 million Crown suspensory loan to settle an outstanding Treaty of Waitangi claim.
• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data; • verifying samples of transactions and account balances; • performing analyses to identify anomalies in the reported data; • reviewing significant estimates and judgements made by the Council; • confirming year-end balances; • determining whether accounting policies are appropriate and consistently applied; and • determining whether all financial statement disclosures are adequate. We evaluated the overall adequacy of the presentation of information in the financial statements. We did not obtain all the information and explanations we required because of the limitation in evidence over the disclosure of related party transactions, as explained above.
34 - Financial Review
If the Wänanga and group were unable to continue in operational existence for the foreseeable future, adjustments may have to be made to reflect the situation that assets may need to be realised other than in the amounts at which they are currently recorded in the Statement of Financial Position. In addition, the Wänanga and group may have to provide for further liabilities that might arise, and to reclassify fixed assets and long-term liabilities as current assets and liabilities.
Responsibilities of the Council and the Auditor The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the Wänanga and group as at 31 December 2005. They must also fairly reflect the results of operations and cash flows and service performance achievements for the year ended on that date. The responsibilities of the Council arise from the Public Finance Act 1989.
We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Public Finance Act 1989.
Independence When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. In addition to the audit, Audit New Zealand has carried out two assignments since 31 December 2005, providing independent quality assurance over a tender process and a business case, which are compatible with those independence requirements. Other than the audit and these assignments, we have no relationship with or interests in the W채nanga or its subsidiary.
S B Lucy Audit New Zealand On behalf of the Auditor-General Hamilton, New Zealand
Financial Review - 35
Statement of Accounting Policies for the year ended 31 December, 2005
General Accounting Policies Reporting Entity Te Wänanga o Aotearoa is a Wänanga constituted by an Order in Council dated 21 June 1993. The financial statements presented are for Te Wänanga o Aotearoa and the consolidated financial statements are for the group comprising Te Wänanga o Aotearoa and its wholly owned subsidiary MO1 Limited. These financial statements are prepared in accordance with Section 203 of the Education Act 1989 and are presented in accordance with Generally Accepted Accounting Practice as defined in the Public Finance Act 1989.
Going Concern The Going Concern principle has been adopted in the preparation of these financial statements. This approach has been adopted after considering the following factors: • The Crown has provided the cash funding required to support the continuing operation of the Wänanga since the identification of its financial problems. The Council believes that the Government will continue to support Te Wänanga o Aotearoa because the Minister for Tertiary Education has publicly made statements regarding the Crown’s support for the continued delivery of services to Te Wänanga o Aotearoa students and has recognised the role the organisation plays within New Zealand’s educational infrastructure. • Te Wänanga o Aotearoa and Group has budgeted the number of Equivalent Full Time Students (EFTS) for the year ended 31 December 2007 and 31 December 2008. The numbers budgeted reflect those considered by Cabinet when they approved the institutions Profile. Similar to all other institutions operating in the sector the actual number of EFTS that will be
36 - Financial Review
enrolled for the years ended 31 December 2007 and 31 December 2008 is uncertain at this stage. On the basis of progress to date the Council believes these budgeted EFTS are achievable. • The Crown provided Te Wänanga o Aotearoa with a $20 million funding facility in early 2005 to enable Te Wänanga o Aotearoa to meets its financial obligations. This facility, controlled by the Crown Manager, has been utilised on four occasions in the period to the date of signing these Financial Statements. As at 31 December 2005, $6 million was drawn down on this facility. The facility has been used as a short term overdraft facility to fund working capital shortfalls. The facility has been rolled over periodically in both of the 2005 and 2006 financial years. The current facility has been reduced to $10 million and expires on 30 November 2007. The Council is confident that continued financial support, if needed, will be forthcoming. • Cabinet has agreed by the way of minute that a suspensory loan of up to $20 million will be made available from 30 November 2007 to settle the amount outstanding from the Waitangi Tribunal Claim Wai 718. The loan, while still being subject to the finalisation of a negotiated agreement between the Tertiary Education Commission and Te Wänanga o Aotearoa, will be paid out in three instalments over three years of $10 million before the end of 2007, $5 million in 2008 and $5 million in 2009. • Te Wänanga o Aotearoa has undertaken a substantial restructure in 2006 without any ongoing financial assistance being required from the Crown. • The financial support provided to other public tertiary educational institutes which have experienced problems similar to those facing Te Wänanga o Aotearoa. • The recognition that Te Wänanga o Aotearoa has continued to operate and has met all its financial obligations as and when they have fallen due. • Cash forecasts for the 2007 and 2008 financial year indicate that the institution will have sufficient cash to meet its financial obligations.
Accordingly the Council has prepared these financial statements based on the going concern assumption. The going concern assumption depends on the: • institution, similar to all other institutions operating in the sector, achieving its forecast levels of student enrolments in 2007 and 2008; and
Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied: A.
• successful conclusion of negotiations with the Crown as to terms for the $20 million suspensory loan.
Revenue from the Tertiary Education Commission is recognised on an EFTS consumption basis as the course is provided and student fees are recognised when the course is provided. Other revenue is recognised when the activity which gives rise to the revenue is conducted. Government grants are recognised when eligibility has been established by the grantor.
Whilst the Council is confident in the ability of Te Wänanga o Aotearoa to continue as a going concern, if the forecast level of enrolments is not achieved or the negotiations of the terms of the suspensory loan are not successfully concluded there would be significant uncertainty as to whether Te Wänanga o Aotearoa would be able to continue as a going concern. If Te Wänanga o Aotearoa was unable to continue as a going concern adjustments may have to be made to reflect the situation that assets may have to be realised and liabilities extinguished other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently reported in the Statement of Financial Position. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and the recognition and classification of liabilities that may be necessary should Te Wänanga o Aotearoa be unable to continue as a going concern.
Measurement Base Unless otherwise stated the general accounting principles recognised as appropriate for the measurement and reporting of the financial position under the historical cost method have been used. The reporting currency is New Zealand dollars. Accrual accounting is used to measure the cost of services provided and to recognise revenues.
Revenue
Rental Income is recognised in the Statement of Financial Performance on an accruals basis. Interest Income is accrued using the effective interest rate applicable. B.
Accounts Receivable Accounts Receivable are stated at expected realisable value after providing for debts where collection is doubtful.
C.
Inventory All inventories are valued at the lower of cost and net realisable value.
D.
Property, Plant and Equipment Property, plant and equipment are initially recorded at cost in the Statement of Financial Position. Subsequent Expenditure Subsequent expenditure relating to an item of property, plant and equipment is capitalised to the initial cost of the item when the expenditure increases the economic benefits over the life of the item or where that expenditure was necessarily incurred to enable the future economic benefits to be obtained and the expenditure would have been included in the initial cost of the item had the expenditure been incurred at the time of acquisition. All other subsequent expenditure is expensed in the period in which it is incurred.
Financial Review - 37
Impairment
G.
All items of property, plant and equipment are assessed for impairment at each reporting date. Where the carrying amount is assessed to be greater than its recoverable amount, the item is written down. The write down is recognised in the Statement of Financial Performance.
The financial statements are prepared exclusive of GST except Accounts Payable and Accounts Receivable which are disclosed inclusively. Goods and Services Tax is accounted for on an invoice basis and the balance owing at balance date is disclosed in the Statement of Financial Position. H.
Disposal
Depreciation Property, Plant and Equipment, with the exception of Land and Artwork (which are not depreciated) and Library Collection (which is depreciated at 12.5% diminishing value), are depreciated on a straight line basis at rates that will write off the cost over the estimated useful life of the asset. The estimated useful life of assets is as follows:
F.
Buildings
2%
50 years
Leasehold Land Improvements
10%
10 years
Equipment
20%
5 years
Computers
25%
4 years
Furniture and Fittings
20%
5 years
Vehicles
20%
5 years
Waka
10%
10 years
Owned Land Improvements
20%
5 years
Programme Development Costs Capitalisation of Programme Development Costs is limited to the amount which, taken together with further related costs, is probable of recovery from future related economic benefits. Development costs recognised as an asset are amortised on a straight line basis over a five year period once accreditation has been achieved, commencing from the period in which the programme is first delivered. All other development costs and all research costs are recognised as expenses in the period in which they are incurred.
38 - Financial Review
Consolidation of Subsidiary The group financial statements incorporate the financial statements of the parent of Te W채nanga o Aotearoa and its wholly owned subsidiary, which has been consolidated using the purchase method. The results of any subsidiaries acquired or disposed of during the year are consolidated from the effective dates of acquisition or until the effective dates of disposal.
On disposal or permanent withdrawal of an item of property, plant and equipment the difference between the disposal proceeds (if any) and the carrying amount is recognised in the Statement of Financial Performance. E.
Goods and Services Tax
All inter-company transactions, balances and unrealised profits are eliminated on consolidation. I.
Goodwill Goodwill, representing the excess of the cost of shares in a subsidiary or associate over the fair value of the net assets acquired at the date of acquisition, is shown as an intangible asset. Goodwill is amortised in the Statement of Financial Position on a straight line basis over the period of the expected benefit. To the extent that the unamortised balance of goodwill is no longer probable of being recovered from the expected future economic benefits, it is recognised immediately as an expense.
J.
Operating Leases Operating lease rentals are recognised evenly over the expected period of benefit to Te W채nanga o Aotearoa.
K.
Finance Leases Leases under which Te W채nanga o Aotearoa assumes substantially all the risks and rewards of ownership are classified as finance leases and are capitalised. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate of interest on the outstanding balance of the liability for each period.
L.
Financial Instruments
P.
Financial Instruments carried on the Statement of Financial Position include cash and bank balances, investments, receivables, trade creditors and borrowings. The particular recognition methods adapted are disclosed in the individual policy statements associated with each item.
The Statement of Cash Flows is prepared exclusive of GST, which is consistent with the method used in the Statement of Financial Performance. Definitions of the terms used in the Statement of Cash Flows; Cash includes coins and notes, demand deposits and other highly liquid investments readily convertible into cash and includes at call borrowings such as bank overdrafts, used by the organisation as part of their day to day cash management.
Financial Instruments denominated in foreign currencies are translated at the rates of exchange ruling on the balance date. M.
Trademarks Purchased identifiable intangible assets, comprising patents and trademarks, are recognised at cost and amortised on a straight line basis over their estimated useful lives. Where the carrying amount of an identified intangible asset exceeds its recoverable amount, it is written down to its recoverable amount.
N.
Operating activities include all transactions and other events that are not investing or financing activities. Investing activities are those activities relating to the acquisition and disposal of current and non-current investments and other non-current assets. Financing activities are those activities relating to changes in the equity and debt capital structure of the organisation and those activities relating to the cost of servicing the organisations equity capital.
Investments Investments are stated at the lower of cost and net realisable value.
O.
Provisions All provisions are recorded at the best estimate of the expenditure required to settle the obligation at balance date. Where the effect is material, the expected expenditures are discounted to their present value using pre-tax discount rates. Restructuring Restructuring is a programme planned and controlled by management that materially changes the scope of a business undertaken by the group or the manner in which the business is conducted by the group. The group recognises a provision for restructuring when the Council has approved a detailed formal plan, and the restructuring has commenced or a public announcement regarding the restructuring has been made. Costs and expenditures related to ongoing operations are not included in the provision for restructuring.
Statement of Cash Flows
Q.
Foreign Currency Transactions Transactions denominated in foreign currencies are translated into the reporting currency using the exchange rate in effect at the transaction date. Monetary items receivable or payable in a foreign currency, other than those resulting from short term transactions covered by forward exchange contracts, are translated at balance date at the closing rate. Exchange differences on foreign currency balances are recognised in the statement of financial performance.
Financial Review - 39
R.
Budget Figures The budget figures are those approved by the Council and Ministry of Education. The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.
S.
Employee Entitlements Provision is made in the Statement of Financial Performance and Statement of Financial Position for the benefits due to staff under existing contracts for annual, long service and gratuities leave, on the basis of actual entitlement.
T.
Comparative Figures Comparative information has been reclassified where necessary to achieve consistency in disclosure with the current year.
Changes in Accounting Policies There have been no changes in Accounting Policies for the current financial period. All policies have been applied on a basis consistent with the previous year.
40 - Financial Review
Statement of Financial Performance for the year ended 31 December, 2005
Group
Group
Parent Notes
Parent
Group
Parent
Actual
Budget
Actual
Budget
Actual
Actual
31/12/2005
31/12/2005
31/12/2005
31/12/2005
31/12/2004
31/12/2004
$000
$000
$000
$000
$000
$000
Government Funding Ministry of Education Other Government Funding
142,490
150,005
1,905
2,900
144,395
152,905
4,965
Trading Income
4,830
Interest
2,031
300
Other Income
5,495
12,646
12,356
Total Government Funding
142,490
124,495
156,347
156,347
1,905
2,900
478
478
144,395
127,395
156,825
156,825
4,620
4,965
4,447
3,386
3,368
-
4,830
-
402
402
1
Student Tuition Fees Domestic Other Income 1,996
300
2,509
2,226
4,703
5,033
13,336
17,104
12,946
11,529
5,333
16,247
19,732
161,716
170,471
160,889
137,175
176,458
179,925
73,079
69,014
67,740
62,458
70,022
66,400
Consumable/Faculty Costs
71,285
77,161
83,040
61,082
85,924
94,084
Occupancy Property Costs
13,303
14,827
12,753
14,072
15,991
15,765
Total Other Income Total Income
4
Less Personnel Salaries & Associated Costs
2
Other Costs
Interest Expense
375
576
Total Other Costs
84,963
92,564
Depreciation and Amortisation
13,329 171,372 (9,656)
Impairment in Value of Term Assets Total Cost of Services Net (Deficit) for the Year
375
576
119
119
3
96,168
75,730
102,034
109,968
13,099
11
11,834
11,021
10,485
9,798
-
12
-
-
17,500
17,500
174,677
175,742
149,209
200,041
203,666
(4,206)
(14,853)
(12,034)
(23,583)
(23,741)
Financial Review - 41
Statement of Movements in Equity for the year ended 31 December, 2005
Group
Group
Actual
Budget
Parent
Parent
Group
Actual
Budget
Actual
31/12/2005
Actual
31/12/2005
31/12/2005
31/12/2005
31/12/2004
31/12/2004
$000
$000
$000
$000
$000
$000
Notes
Parent
Opening Public Equity
93,186
119,530
77,076
109,578
116,769
100,817
Net Surplus/(Deficit) for the year
(9,656)
(4,206)
(14,853)
(12,034)
(23,583)
(23,741)
Public Equity as at 31 December 2005
83,530
115,324
62,223
97,544
93,186
77,076
42 - Financial Review
Statement of Financial Position as at 31 December, 2005
Group
Group
Actual
Budget
31/12/2005 $000 Public Equity
Parent
Parent
Group
Parent
Actual
Budget
Actual
Actual
31/12/2005
31/12/2005
31/12/2005
31/12/2004
31/12/2004
$000
$000
$000
$000
$000
Notes
83,530
115,324
62,223
97,544
93,186
77,076
Cash at Bank
9,816
(798)
9,452
(255)
14,666
11,120
Accounts Receivable
6,663
15,123
6
5,335
2,728
10,592
6,753
468
213
7
468
121
2,287
2,287
Current Assets
Prepayments Inventory
6,294
5,891
5,114
4,945
9,381
8,171
23,241
20,429
20,369
7,539
36,926
28,331
Accounts Payable
9,963
6,346
8
22,641
5,663
28,353
29,080
Crown Loan
6,000
-
17
6,000
-
-
-
44
-
18
44
-
44
44
9
Total Current Assets Less Current Liabilities
Current Portion of Term Liabilities Employee Entitlements Total Current Liabilities Working Capital Surplus/(Deficit) Property, Plant and Equipment
4,315
1,675
4,134
599
3,674
3,604
20,322
8,021
32,819
6,262
32,071
32,728
2,919
12,408
(12,449)
1,277
4,855
(4,397)
80,283
93,452
10
76,838
89,069
87,663
83,500
13
670
4,332
3,518
822
5
5
5
5
Other Non Current Assets Programme Development
3,164
6,604
Trademark
5
-
Investment in MO1 Limited
-
-
15
1
1
-
1
Goodwill
-
500
14
-
500
-
-
20
Advance to Aotearoa Institute
3,115
3,115
Total Other Non Current Assets
6,284
10,219
706
755
3,115
3,115
3,115
3,115
3,791
7,953
6,638
3,943
706
755
720
720
Term Liabilities Mortgage
18
Aotearoa Institute
5,250
-
5,250
-
5,250
5,250
Total Term Liabilities
5,956
755
5,956
755
5,970
5,970
83,530
115,324
62,223
97,544
93,186
77,076
Net Assets
Craig Coxhead - Council Chairperson B Soc Sci, LLB(Hon), LLM(Waikato)
Bentham Ohia â&#x20AC;&#x201C; Pouhere/CEO (appointed May 2006) Exec MBA, Dip T, BA
Date: Friday, 31 August 2007
Date: Friday, 31 August 2007
Brian Roche - Crown Manager CA, BCA (Victoria)
For and on behalf of the Council
Date: Friday, 31 August 2007
Financial Review - 43
Statement of Cashflows for the year ended 31 December, 2005
Group
Group
Actual
Budget
Parent
Parent
Group
Parent
Actual
Budget
Actual
Actual
31/12/2005 $000
31/12/2005
31/12/2005
31/12/2005
31/12/2004
31/12/2004
$000
$000
$000
$000
$000
Notes
Cash Flows from Operating Activities Cash was provided from: Operating Income Interest Received
171,893
155,730
155,792
151,410
173,971
177,854
2,031
300
1,996
300
2,509
2,226
173,924
156,030
157,788
151,710
176,480
180,080
178,851
163,318
160,046
158,856
164,406
170,890
Cash was applied to: Employees and Suppliers Interest expense Net Cash Flows From Operating Activities
375
575
375
576
119
119
179,226
163,893
160,421
159,432
164,525
171,009
(5,302)
(7,863)
(2,633)
(7,722)
11,955
9,071
1,621
-
1,498
-
-
-
6,901
6,087
6,519
3,523
35,224
33,583
254
-
-
-
5,343
3,604
16
Cash Flows from Investing Activities Cash was provided from: Sale of Property, Plant and Equipment Cash was Applied to: Purchase of Property, Plant and Equipment Programme Development
7,155
6,087
6,519
3,523
40,567
37,187
(5,534)
(6,087)
(5,021)
(3,523)
(40,567)
(37,187)
Aotearoa Institute Liability
-
-
-
-
5,250
5,250
Mortgage
-
-
-
-
764
764
12,000
-
12,000
-
-
-
12,000
-
12,000
-
6,014
6,014
6,014
836
6,014
9
90
90
6,014
836
6,014
9
90
90
5,986
(836)
5,986
(9)
5,924
5,924
Net (Decrease)/Increase In Cash Held
(4,850)
(14,786)
(1,668)
(11,254)
(22,688)
(22,192)
Opening Balance 1 January 2005
14,666
13,988
11,120
11,000
37,377
33,335
Gain (Loss) on Foreign Exchange
-
-
-
-
(23)
(23)
9,816
(798)
9,452
(254)
14,666
11,120
Net Cash Flows From Investing Activities Cash Flows from Financing Activities Cash was provided from:
Crown Loan Cash was applied to: Settlement of Debt Net Cash Flows From Financing Activities
Closing Balance 31 December 2005
44 - Financial Review
Financial Ratios for the year ended 31 December, 2005
2005
2005
2004
2004
2003
2003
2002
2002
Group
Parent
Group
Parent
Group
Parent
Group
Parent
$000
$000
$000
$000
$000
$000
$000
$000
Short Term Liquidity Current Monetary Assets
9,816
9,452
14,666
11,120
37,377
33,335
28,894
23,682
Current Liabilities
20,322
32,819
32,071
32,728
14,667
16,457
13,420
16,101
Ratio
0.48:1
0.29:1
0.46:1
0.34:1
2.55:1
2.02:1
2.15:1
1.47:1
Public Equity
83,530
62,223
93,186
77,076
116,769
100,817
78,523
71,814
Total Assets
109,808
100,998
131,227
115,774
131,448
117,286
93,632
89,605
0.77:1
0.63:1
0.72:1
0.68:1
0.89:1
0.86:1
0.84:1
0.80:1
Total Liabilities
26,278
38,775
38,041
38,698
14,679
16,469
15,110
17,790
Public Equity
83,530
62,223
93,186
77,076
116,769
100,817
78,523
71,814
Exposure to Liabilities
0.30:1
0.58:1
0.40:1
0.47:1
0.13:1
0.16:1
0.19:1
0.25:1
Public Equity to Total Assets Ratio
Ratio Exposure to Liabilities
Change in Financial Value Net Assets Change in Financial Value
83,530
62,223
93,186
77,076
116,769
100,817
78,523
71,814
(10.82%)
(19.54%)
(18.20%)
(18.22%)
49.00%
40.00%
102.00%
88.00%
(9,656)
(14,853)
(23,583)
(23,741)
33,247
24,003
29,229
23,292
Return on Assets Net Result for the period Total Assets
109,808
100,998
131,227
115,774
131,448
117,286
93,632
89,605
Percentage
(8.79%)
(14.71%)
(17.97%)
(20.51%)
25.29%
20.47%
31.22%
25.99%
Financial Review - 45
Notes to the Financial Statements for the year ended 31 December, 2005
1. Government Funding Te W채nanga o Aotearoa is a Crown recognised tertiary institution. The major source of funding is from the Ministry of Education. All revenue relates to continuing activities.
2. Council Remuneration 2005 Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $60,325 distributed as follows: Craig Coxhead - Council
19,500
Lloyd Anderson - Council/Audit & Risk
8,160
Eleanor Barton - Council
2,805
Richard Batley - Council/Audit & Risk
10,690
Barry Hopkins - Council
2,550
Tania Hodges - Council/Audit & Risk
8,160
John Storey - Audit & Risk
1,020
Carol Nin - Council
2,040
Shane Jones - Audit & Risk
5,400
There were no Directors Fees paid by MO1 Limited in 2005. 2004 Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $60,992 distributed as follows: Craig Coxhead - Council
18,104
Lloyd Anderson - Council/Audit & Risk
3,825
Eleanor Barton - Council
2,040
Richard Batley - Council/Audit & Risk
1,020
Barry Hopkins - Council
2,295
Tania Hodges - Council/Audit & Risk
4,803
1,020
Harold Maniapoto - Council
Bruce Martin - Council John Storey - Audit & Risk
18,000
Shane Jones - Audit & Risk
8,100
There were no Directors Fees paid by MO1 Limited in 2004.
46 - Financial Review
Carol Nin - Council
510 1,275
3. Statutory Disclosures Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Interest Expense
375
375
119
119
495
405
487
427
803
579
1,115
1,115
Operating Lease Expense
5,554
5,554
6,293
6,162
Bad Debts Written Off
1,429
1,429
369
150
176
161
240
226
608
152
1,663
1,113
11,729
10,690
8,822
8,684
992
992
-
-
1,139
1,139
1,234
1,234
Fees Paid to Auditors For Audit Services Provision for Doubtful Debts
Koha Amortisation of Programme Development Costs (note 11, 13) Depreciation (note 11) Net Loss on Sale of Fixed Assets (note 11) Rent
4. Other Income Group 2005 Contract Income
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
4,385
3,696
8,112
5,902
Trade Rebate
-
-
2,889
2,889
Rent Received
357
351
523
523
Management Fee - MO1 Ltd (note 20.9) Other Income Total Other Income
-
-
-
6,000
753
656
1,812
1,790
5,495
4,703
13,336
17,104
Contract income relates to licences and subcontracting arrangements that Te Wänanga o Aotearoa has with other institutions.
5. Crown Equity and Compensation The Crown has made equity contributions to Te Wänanga o Aotearoa in line with the recommendations outlined in The Wänanga Capital Establishment Report – Waitangi Tribunal Report 1999 (WAI 718).(refer Accounting Policies, General, Going Concern.) To date the Crown has made equity contributions of $51,691,000. A $20 million suspensory loan was due to be advanced to Te Wänanga o Aotearoa over the 2004-2005 years to complete the equity contributions agreed to. This loan has not yet been advanced.
Financial Review - 47
6. Accounts Receivable Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Student Fee Debtors
191
191
1,090
1,090
Ministry of Education
355
355
-
-
Intercompany - MO1 Limited
-
336
-
101
Oma Investments Limited (note 20)
2,268
2,268
3,224
3,224
General Debtors
4,652
2,764
7,393
3,453
7,466
5,914
11,707
7,868
803
579
1,115
1,115
6,663
5,335
10,592
6,753
Less Provision for Doubtful Debts
7. Prepayments Group 2005
Parent 2005
$000 VLC Computers Other
Group 2004
$000
Parent 2004
$000
$000
94
94
1,836
1,836
374
374
451
451
468
468
2,287
2,287
8. Accounts Payable Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Goods and Services Tax Accrual
370
73
147
27
PAYE
619
578
673
636
Childcare Grants**
-
-
836
836
Ministry of Education
-
-
13,240
13,240
Intercompany - MO1 Limited
-
13,656
-
1,654
Sundry Creditors
8,974
8,334
13,457
12,687
9,963
22,641
28,353
29,080
** These funds have been received as capital grants from the Ministry of Education for the purpose of building three childcare centres but this was repaid in 2005.
48 - Financial Review
9. Provision for Employee Entitlements Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Accrued Salaries Accrued Holiday Pay
29
29
1,088
1,087
4,286
4,105
2,586
2,517
4,315
4,134
3,674
3,604
10. Property, Plant and Equipment Group
Cost
Accumulated Depreciation
Book Value
$000
$000
$000
2005 Land
6,916
-
6,916
Buildings
42,304
2,420
39,884
Leasehold Improvements
11,437
3,241
8,196
Equipment
13,301
6,594
6,707
Computers
15,503
9,266
6,237
Furniture & Fittings
7,627
4,207
3,420
Motor Vehicles - Owned
9,265
4,743
4,522
Waka
1,214
242
972
967
-
967
3,422
1,050
2,372
90
-
90
112,046
31,763
80,283
Artworks Library Work in Progress
Parent
Cost
Accumulated Depreciation
Book Value
$000
$000
$000
2005 Land Buildings
6,916
-
6,916
40,496
2,151
38,345
Leasehold Improvements
11,396
3,222
8,174
Equipment
12,175
6,052
6,123
Computers
13,618
8,223
5,395
Furniture & Fittings
7,418
4,082
3,336
Motor Vehicles - Owned
8,493
4,345
4,148
Waka
1,214
242
972
Artworks Library Work in Progress
967
-
967
3,422
1,050
2,372
90
-
90
106,205
29,367
76,838
Financial Review - 49
Group
Cost
Accumulated Depreciation
Book Value
$000
$000
$000
2004 Land
7,657
-
7,657
178
55
123
Buildings
40,095
1,565
38,530
Leasehold Improvement
10,996
2,173
8,823
Equipment
12,232
4,090
8,142
Computers
13,011
5,769
7,242
Furniture & Fittings
6,871
2,782
4,089
Motor Vehicles - Owned
9,394
3,060
6,334
614
150
464
Leasehold Land Improvements
Waka Artworks Library Work in Progress
Parent
912
-
912
2,860
585
2,275
3,072
-
3,072
107,892
20,229
87,663
Cost
Accumulated Depreciation
Book Value
$000
$000
$000
2004 7,657
-
7,657
Buildings
38,158
1,339
36,819
Leasehold Improvement
10,919
2,137
8,782
Equipment
11,049
3,755
7,294
Computers
11,556
5,201
6,355
Furniture & Fittings
6,676
2,698
3,978
Motor Vehicles - Owned
8,702
2,811
5,891
614
150
464
Land
Waka Artworks Library Work in Progress
50 - Financial Review
912
-
912
2,861
585
2,276
3,072
-
3,072
102,176
18,676
83,500
11. Depreciation and Amortisation
Leasehold Land Improvements
Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
-
-
Buildings
44
-
994
811
870
675
Leasehold Improvement
1,101
1,085
847
821
Equipment
2,515
2,297
2,040
1,846
Computers
3,458
3,022
1,972
2,352
Furniture & Fittings
1,426
1,384
1,060
1,100
Motor Vehicles
1,678
1,534
1,612
1,514
Waka
92
92
52
52
Library
465
465
325
325
Loss on Sale
992
992
-
-
Amortisation (note 13)
608
152
1,663
1,113
13,329
11,834
10,485
9,798
12. Impairment in Value of Term Assets Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Goodwill (note 14)
-
-
500
500
Waka
-
-
1,756
1,756
Software
-
-
2,300
2,300
Land and Buildings
-
-
1,061
1,061
Work in Progress
-
-
Programme Development
7,768
7,768
4,048
4,048
Other
-
-
67
67
Total Impairment in Term Assets
-
-
17,500
t17,500
These values are in accordance with note D, F and I in the accounting policies
Financial Review - 51
13. Programme Development Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Balance at Beginning of Year Capitalisation During the Year Amortisation (note 11) Impairment (note 12) Balance at End of Year
3,518
822
4,135
2,379
254
-
5,094
3,604
(608)
(152)
(1,663)
(1,113)
-
-
(4,048)
(4,048)
3,164
670
3,518
822
Programme development costs were incurred in developing Lifeworks and Mauri Ora programmes.
14. Goodwill Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Cost Balance at Beginning of Year Capitalised During the Year Balance at End of Year
7,346
500
7,346
500
-
-
-
-
7,346
500
7,346
500
7,346
500
6,846
-
-
-
500
500
7,346
500
7,346
500
-
-
-
-
Accumulated Amortisation Balance at Beginning of Year Impairment Expense (note 12) * Balance at End of Year Carrying Value Balance at End of Year
* (2004 Goodwill of $500,000 relating to the acquisition of the Glenview International Hotel and Conference Facility was expensed during the year.)
15. Investment in MO1 Limited MO1 Limited is a fully owned subsidiary of Te W채nanga o Aotearoa and is in the business of education. The balance date of the company is 31 December. The results of MO1 Limited are incorporated in the group financial statements.
52 - Financial Review
16. Reconciliation of Year to Date Surplus to Operating Activities Cashflow Group 2005
Parent 2005
Group 2004
Parent 2004
$000
$000
$000
$000
Year to Date Surplus/(Deficit)
(9,656)
(14,853)
(23,583)
(23,741)
Add Depreciation/Losses on Disposal
13,329
11,834
10,485
9,798
Add Impairment in Value of Term Assets
-
-
17,500
17,500
Add Amortisation of Goodwill
-
-
-
-
Add Development costs Written Off
-
-
-
-
Add Loss of Foreign Exchange
-
-
23
23
3,674
(3,018)
4,425
3,580
Debtors
3,929
1,418
(2,985)
(3,069)
Prepayments
1,819
1,819
(1,830)
(1,830)
Add Movements in Working Capital:
Inventory
3,087
3,057
(5,640)
(6,462)
Creditors
(18,390)
(6,439)
16,756
15,693
Employee Entitlements
641
530
1,229
1,159
Write off of Investments
-
-
-
-
(5,240)
(2,633)
11,955
9,071
Cash Flows From Operating Activities
17 Financial Instruments Financial instruments which may subject Te W채nanga o Aotearoa to interest rate risk relate to overdrawn bank balances. To limit the amount of interest rate risk exposure, Te W채nanga o Aotearoa has provided to their bankers the right of offset between credit funds held by the bank against any overdrawn balances. Te W채nanga o Aotearoa has a US$ Account with a current balance of US$231,902 (2004 - $226,449). The exchange rate as at 31 December 2005 0.6915 (2004 - 0.7085) was applied. The Crown provided the institution with a $20 million funding facility in early 2005 to enable the institution to meets its financial obligations. This facility is controlled by the Crown Manager. The facility has been used as a short term overdraft facility to fund working capital shortfalls. The facility has been rolled over periodically in both of the 2005 and 2006 financial years. The current facility has been reduced to $10 million and expires on 30 November 2007. In May 2005 the organisation drew down $12 million of the facility. In July 2005 $6 million of this facility was repaid to the Crown. The interest rate is fixed at 8%. The interest is payable monthly. Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the group. Cash accounts are held with high credit quality financial institutions. Student fee debtors and general debtors consist of a large number of customers and the group does not have any significant concentration of credit risk with regards to these balances. As disclosed in note 20 there are related party receivable balances from OMA Investments Limited of $2.268 million (2004 - $3.224) and Aotearoa Institute of $3.115 million (2004 - $3.115 million).
Financial Review - 53
18 Mortgage - Landcorp Investments Limited The loan from Landcorp Investments Limited is secured by way of a mortgage on the land and buildings at 15 Canning Crescent, Mangere. The interest rate is fixed at 4%. The interest and principal are repayable on a half-yearly basis by equal payments of $22,050. The mortgage matures on 31 December 2034. The Fair Value of the mortgage at 31 December 2005 was $499,826.
19 Early Learning Centres During the 2005 financial year, Te W채nanga o Aotearoa received grants from the Ministry of Education for Early Learning purposes. Ministry of Education funds received can be accounted for the following way: Apakura Te K채kano
2005
2004
MOE Funding Received Bulk Funding
179,086
148,064
Low Socio Economic
3,433
-
Special Needs
3,004
-
Language & Kaupapa
1,800
1,600
Incentive Funding
Training TOTAL MOE Funding Received
2,165
1,861
$189,488
$151,525
Funds applied to: Salaries
Raroera Te K채kano
189,488
151,525
$189,488
$151,525
2005
2004
MOE Funding Received Bulk Funding
106,903
79,167
Low Socio Economic
1,815
1,400
Special Needs
1,588
1,225
Training
2,734
3,723
$113,040
$85,515
113,040
84,115
Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries Resources
54 - Financial Review
-
1,400
$113,040
$85,515
Manukau Te K채kano
2005
2004
MOE Funding Received Bulk Funding
149,993
102,605
Low Socio Economic
5,551
3,582
Special Needs
2,791
1,791
Language & Kaupapa
1,800
1,600
$160,135
$109,578
160,135
106,254
-
3,324
$160,135
$109,578
Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries Resources
Te Rau Oriwa
2005
2004
MOE Funding Received Bulk Funding
109,516
76,332
Low Socio Economic
7,330
5,378
Special Needs
2,880
2,113
Language & Kaupapa
1,800
1,600
Training
2,734
-
$124,260
$85,423
124,260
83,676
-
1,747
$124,260
$85,423
Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries Resources
Financial Review - 55
Raroera Te Puäwai
2005
2004
MOE Funding Received Bulk Funding
98,105
72,221
Low Socio Economic
4,627
-
Special Needs
3,545
-
Language & Kaupapa
1,800
1,600
Incentive Funding
Training TOTAL MOE Funding Received
2,734
3,723
$110,811
$77,544
110,811
77,544
$110,811
$77,544
Funds applied to: Salaries
Building Programme Grants
2005
Unspent Building Programme Grants as at 01-01-05 Repayment of Building Grant to Ministry
2004 836,347
836,347
(836,347)
-
-
836,347
Unspent Building Programme Grants as at 31-12-04
20 Related Party Transactions ›› 20.1 Aotearoa Institute Te Kuratini o Ngä Waka Trust Board (Aotearoa Institute) ››› Governance The governing bodies of Aotearoa Institute and Te Wänanga o Aotearoa had two members in common at the beginning of the 2005 financial year. There were also five senior employees of Te Wänanga o Aotearoa on the Board of Aotearoa Institute. Aotearoa Institute’s financial operations are separate and distinct to that of Te Wänanga o Aotearoa. All material transactions between the two entities are charged at a fair market rate. In March 2005 Mr Brian Roche was appointed Crown Manager by Te Wänanga o Aotearoa Council. In this position the Council delegated to him all financial powers within the organisation. As a consequence of this appointment Aotearoa Institute ceased to be considered a related party.
56 - Financial Review
››› Property Aotearoa Institute leases buildings to Te Wänanga o Aotearoa at commercial rental rates ($1.7 million). At the date of signing these financial statements the leases with Aotearoa Institute were 3 years with two further terms each of three years. At balance date Te Wänanga o Aotearoa was claiming reimbursement from Aotearoa Institute for a significant proportion of the leasehold improvements that Te Wänanga o Aotearoa had made to properties leased from Aotearoa Institute including the Porirua building which has subsequently been sold. This matter was settled as part of the December 2006 agreement between the parties (refer note 21.2).
››› Management Services 2005 – nil. (2004 - Te Wänanga o Aotearoa provided management and administration services to Aotearoa Institute to the extent of $40,000. At balance date Aotearoa Institute was a general debtor of Te Wänanga o Aotearoa due to the accrual of those services provided to the extent of $45,000 including GST). ››› Advances During 2001 an advance of $3.1 million was made to Aotearoa Institute, which was fully ratified by the TWOA Council. These funds were used for the purchase and renovation of buildings to be used by Te Wänanga o Aotearoa for which leasing arrangements have been entered into. In February 2006 the campus building in Porirua was sold by Aotearoa Institute. Aotearoa Institute used the proceeds of the sale to pay some of the outstanding interest on the advance. The remaining interest was capitalised, along with the principal and secured over the campus in Te Rapa. The total amount due was $3.5 million. The loan attracts interest at 10% per annum and was repayable on 365 days demand. This matter was settled as part of the December 2006 agreement between the parties (refer note 21.2). At the date of signing these financial statements there were no amounts outstanding. ››› Leasing of Computers 2005 – nil. (2004 - Te Wänanga o Aotearoa leased computers from Aotearoa Institute. The value of the lease was $2.1 million. Te Wänanga o Aotearoa then leased the computers to computer students enrolled with Te Wänanga o Aotearoa. Upon the successful completion of the course Aotearoa Institute awarded the computer to the student in the form of a scholarship. This arrangement was approved by the Tertiary Education Commission prior to being entered into and agreement has now been reached for all computers not awarded to students to be gifted to Te Wänanga o Aotearoa.)
›› 20.2. OMA Investments Limited (GTL Investments Limited since 4 April 2006) OMA Investments Limited is a fully owned subsidiary of Aotearoa Institute. Te Wänanga o Aotearoa and MO1 Limited purchase student learning resources from OMA Investments Limited. OMA Investments Limited manages and distributes the inventory on behalf of Te Wänanga o Aotearoa and MO1 Limited. During 2005 Te Wänanga o Aotearoa paid $1.527 million (2004 - $12.013 million) (including GST) to OMA Limited for this service. For most of 2003 and 2004 William Wetere was General Manager of OMA Investments Limited. Prior to this he was employed as a senior manager at MO1 Limited. Kingi Wetere was General Manager of MO1 Limited until early 2004, and then moved into a senior position in Te Wänanga o Aotearoa. Kingi ceased being employed by Te Wänanga o Aotearoa in April 2005. He was a director of MO1 Limited from 2001-2005. In September 2006, Te Wänanga o Aotearoa entered into an agreement with GTL Investments Limited to provide management services to MO1 Limited which included the services of Kingi Wetere. He was appointed to the position of General Manager, MO1 Ltd in February 2007. Rongo Wetere was Tumuaki of Te Wänanga o Aotearoa until December 2005. William Wetere and Kingi Wetere are sons of Rongo Wetere. Until 15 April 2005 Rongo Wetere was a director of OMA Investments Ltd. Rongo Wetere, William Wetere and Kingi Wetere were all, at one time, directors of both OMA Investments Limited and MO1 Limited. Two other Te Wänanga o Aotearoa personnel (Min Marshall and Bruce Bryant) were for a time directors of OMA Investments Limited and MO1 Limited, while also holding management or governance positions at Te Wänanga o Aotearoa. In late 2004 OMA Investments Limited issued Te Wänanga o Aotearoa with a trade rebate of $3.2 million including GST. $900,000 of this rebate was offset against invoices received in 2005 and the remaining amount was to be offset against invoices in 2006 and 2007. This matter was
Financial Review - 57
subsequently settled as part of the December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa Institute. (refer Note 21.2). ›› 20.3 Glenview International Hotel and Conference Centre Limited The Glenview International Hotel and Conference Centre Limited (“the company”) is a fully owned subsidiary of Aotearoa Institute. The company operates the accommodation and conference areas of the Glenview complex. Te Wänanga o Aotearoa purchased the land and buildings comprising the Glenview Hotel Complex in Hamilton in 2003. During 2003-2004 Te Wänanga o Aotearoa renovated and up graded the facility which the company operates out of along with space at the site which was used for the Te Wänanga o Aotearoa central library, offices and meeting rooms at balance date. As at Balance Date no lease payments had been made by the company for the use of this space. This matter was subsequently settled as part of the December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa Institute. (refer Note 21.2) ›› 20.4 Ora Limited Susan Cullen (daughter of Rongo Wetere) is the sole shareholder and director of Ora Limited. Ora Limited has a sub-contracting arrangement with Te Wänanga o Aotearoa to provide the Kiwi Ora programme to new immigrants to New Zealand. During 2005 Te Wänanga o Aotearoa paid $15.26 million (2004 - $23.78 million) (excluding GST) to Ora Limited for the provision of this programme. In 2006 as part of a wash-up of transactions it was established and agreed that Ora Ltd owed TWOA $2.3m (excluding GST). This amount will be repaid by September 2007. ›› 20.5 Awarua Limited 2005 – nil (2004 - Te Wänanga o Aotearoa reimbursed Awarua for the direct costs incurred in undertaking various special projects to the amount of $376,000. Susan Cullen is the sole shareholder and director of Awarua Limited.)
58 - Financial Review
›› 20.6 Wairau Property Developments Limited Susan Cullen is the sole shareholder and one of the directors of Wairau Property Developments Limited. Wairau Property Developments Limited leases properties to Te Wänanga o Aotearoa. During 2005 Te Wänanga o Aotearoa paid $104,965 (2004 – $79,000) to Wairua Property Developments Limited. ›› 20.7 Power Chill NZ Limited Kingi Wetere and William Wetere have a significant ownership interest in Power Chill NZ Limited. Power Chill NZ Limited is an air-conditioning business that has often tendered for and undertaken work for Te Wänanga o Aotearoa and MO1 Limited. Kingi Wetere and William Wetere are also directors of this company. During 2005 Power Chill supplied goods and services to Te Wänanga o Aotearoa to the value of $90,440 (2004 - $419,000). ›› 20.8 Aranui (2003) Limited Ara Wetere is the brother of Rongo Wetere. Ara is the sole director and shareholder of Aranui (2003) Limited. Aranui (2003) Limited has provided landscaping, grounds maintenance, drainage, tar sealing and fencing services to Te Wänanga o Aotearoa. During 2005 the value of these services was $145,875 (2004 - $907,000). ›› 20.9 MO1 Limited MO1 Limited is a wholly owned subsidiary of Te Wänanga o Aotearoa. The Board of MO1 Limited is appointed by the Council of Te Wänanga o Aotearoa. MO1 Limited provides educational services for Te Wänanga o Aotearoa and Te Wänanga o Aotearoa is part of the MO1 Limited provider network. During 2005 Te Wänanga o Aotearoa paid MO1 Limited $23,999,288 (2004 - $18,065,424) for these services and MO1 Limited paid Te Wänanga o Aotearoa $1,891,397 (2004 - $3,551,044 as well as a Management Fee of $6 million).
21 Post Balance Sheet Events Owing to the time delays experienced in finalising the 2005 accounts a significant number of events have occurred post balance sheet that will influence the ability of users of this financial report in making decisions or assessments about the information contained in this report. ›› 21.1 Appointment of Crown Observer In October 2006 Malcolm Inglis was appointed Crown Observer. Brian Roche continues to fill the role of Crown Manager for the organisation.
International Limited, is acting as agent of a Cuban organisation, IPLAC, the developer of the programme in conjunction with Te Wänanga o Aotearoa. Te Wänanga o Aotearoa will pay 10.5% of any future revenue derived from the programme to Arrowmight in consideration of any intellectual property and other claims IPLAC might have for the programme. • All ongoing leases between the two parties were to be determined at market value on the basis of a three year lease with a right of renewal for a further three plus three years. The leases were signed on 28 June 2007. ›› 21.3 Executive Management and Structure of the Organisation
›› 21.2 Settlement between Te Wänanga o Aotearoa and Aotearoa Institute. In December 2006 agreement was reached between the two parties whereby all claims between the two parties were settled. (refer 20.1 – 20.3) As part of the settlement the following occurred:
In December 2005 the Tumuaki, Rongo Wetere resigned. Since Balance Date the institution has under gone significant restructuring which has resulted in a significant reduction in staff numbers. Bentham Ohia was appointed as Acting CEO on 16 December 2005 and was appointed Pouhere/CEO on 1 May 2006.
• All claims made by Aotearoa Institute with respect to Intellectual Property and amounts due to Aotearoa Institute in recognition of their contribution to the founding of Te Wänanga o Aotearoa were withdrawn.
On 25 September 2006 Cabinet approved a fees exemption to allow the Chairperson of Council to work on a full time basis. The Chair started on a full time basis on 16 October 2006.
• All amounts due to Te Wänanga o Aotearoa with respect to the trade rebates, loans and advances were extinguished.
›› 21.4 Crown Loan
• The claim by Te Wänanga o Aotearoa with respect to leasehold improvements was withdrawn. • Te Wänanga o Aotearoa has conditionally agreed to sell the Glenview International Hotel and Conference Centre to Aotearoa Institute in June 2008 (or before if possible) at the then market value. As part of the settlement a market rent of $1.3 million was imputed into the final settlement. • Aotearoa Institute agreed to sell Te Wänanga o Aotearoa the properties currently leased at Te Rapa, Malfroy Road (Rotorua) and Apakura (Te Awamutu) in June 2008 (or before if possible) at the then market rates. • The two parties agreed to enter into an agreement with respect to the future licensing of the Greenlight literacy programme within New Zealand. Under the agreement, a separate subsidiary of Aotearoa Institute, Arrowmight
Over the course of 2005, 2006 and 2007 the Crown has provided ongoing financial support to the institution. The support has been in the form of a working capital loan facility. The initial funding facility, made available in May 2005, was for $20 million. The facility has been rolled over on 31 July 2005, 15 October 2005, 15 December 2005, 28 February 2006, 30 June 2006 and 30 November 2006. The current facility, which has been reduced to allow maximum drawings of $10 million, is due for repayment on 30 November 2007. The facility has been under the direct control of the Crown Manager. It has been used to support the ongoing operation of the institution and to meet its financial working capital obligations. At the date of signing the financial statements, drawings of $6 million are currently held in an interest bearing account controlled by the Crown Manager, from which funds are made available from time to time. $4 million has been utilised on one occasion during the course of 2005 and drawings of up to $4.5m were made in December 2006. This amount has subsequently been repaid to the account. The net cost of the interest on the loan was $101,549 in 2005 and $64,327 in 2006.
Financial Review - 59
›› 21.5 Property Portfolio During 2005 a review was undertaken of the property portfolio and as a consequence of this review a rationalisation of the portfolio commenced and a number of surplus owned and leased properties have been progressively exited. As at the date of these accounts 91 leases have been terminated. 7 properties worth $4.663 million have been sold.
of $620 per enrolment to Unite Incorporated to cover the following, inter alia: • marketing, advertising and enrolment services; • provision of the serviced premises in central Auckland inclusive of all outgoings, security and reception; • full access to the premises for students; • ongoing pastoral care for students; and
›› 21.6 Legal Challenges Since balance date the institution has been subjected to significant legal challenges with respect to the legality of the Council and its constitution. These matters, together with several other legal matters associated with the employment of the Tumuaki, have now been settled in favour of the institution.
• dual branding of the premises. Te Wänanga o Aotearoa is responsible for the cost of the original set-up of classroom space including infrastructure systems and all matters of education delivery and compliance. Further opportunities under this relationship are currently being investigated.
›› 21.7 Unite Incorporated
22 Legislative Compliance
Unite Incorporated is a trade union with a presence throughout a number of main centres in New Zealand.
Te Wänanga o Aotearoa breached the Public Finance Act 1989, in that its audited financial statements were not available within 120 days of 31 December 2005.
The Secretary of Unite Incorporated is Matt McCarten who is no longer a member of the Council of Te Wänanga o Aotearoa. In November 2006 the Council ratified an agreement whereby Te Wänanga o Aotearoa entered into a collaboration pilot project with Unite Incorporated. Under this project Te Wänanga o Aotearoa offers a suite of programmes to members and staff of employers within the Unite network. The pilot project is supported by a full business case and Te Wänanga o Aotearoa receives an appropriate level of financial return on the project. The first enrolments under this pilot project were taken in November 2006 with 356 members of Unite Incorporated enrolling in a 12 month computer course offered by Te Wänanga o Aotearoa. These students undertake their studies at premises in central Auckland leased by Unite Incorporated from an independent third party. This lease is guaranteed by the Aotearoa Institute. Under the agreement, Te Wänanga o Aotearoa pays an amount
60 - Financial Review
Te Wänanga o Aotearoa breached Section 192 of the Education Act which requires that any mortgages obtained by a Tertiary Institute be approved by Secretary of Education. Te Wänanga o Aotearoa did not obtain approval from the Secretary for the mortgage on a property in Mängere.
Statement of Commitments and Contingencies for the year ended 31 December, 2005
Commitments Capital Commitments Buildings Estimated capital expenditure contracted for at balance date, but not provided for
2005
2004
$000
$000
Capital Commitment at the following Campuses Glenview Refurbishment
Nil
370
Tokoroa
Nil
61
Capital grant from the Ministry of Education to build childcare centres
Nil
836
There were no additional commitments on behalf of the Group.
Non-cancellable Operating Leases Buildings 2005
2004
$000
$000
Not later than one year
2,974
4,856
Later than one year and not later than two years
2,045
4,234
Later than two years but not later than five years
3,786
9,765
520
7,485
Later than five years
Financial Review - 61
Contingencies ›› Personal Grievances As at 31 December 2005 there were 27 open personal grievance claims against TWOA. Of these 27 claims 10 are still active. They are considered to be low risk and unlikely to proceed.
›› Carich Training Centre Limited (Carich) (in liquidation) In February 2003 the Receivers of Carich made a claim amounting to $10.5 million against Te Wänanga o Aotearoa for breach of contract. Te Wänanga O Aotearoa believes the claim to be defendable and consequently no provision has been made in the financial statements.
›› Aotearoa Institute Te Kuratini o Nga Waka Trust Board (Aotearoa Institute) Prior to balance date Aotearoa Institute had indicated that it intended to make a claim against Te Wänanga o Aotearoa for intellectual property and artworks transferred to Te Wänanga o Aotearoa on its formation. This claim has subsequently been settled as part of the agreement between the parties (refer note 21.2 in the notes to the Financial Statements).
›› InfoQuest In 2005 a claim from Infoquest, a Malaysian software developer, was received with respect to services supplied to Te Wänanga o Aotearoa. On the basis of the analysis undertaken and the legal advice received no amounts have been set aside on this claim. There are no other known contingent liabilities at balance date for the group.
62 - Financial Review
Notes to the Statements of Service Performance
1
Total number of students enrolled in foundation and introductory learning programmes for 2005 was 59,721. The retention rate for those students was 85%
19
Additional support given to outposts at Tauranga, Whangarei and Hastings. Service provision for after hours and other outposts still required.
2
Unit completion 82% - Graduation 57%
20
System has been implemented and reporting is in place
3
12 new programmes were delivered in 2005.
21
4
Three of the four targets were achieved. Although the pathways target was not achieved it did increase from 13% in 2004. • Unit Retention 82% • Unit Completion 77% • Graduation 39% • Pathways 15%
Some of the projects for 2005 achieved their objectives on time and within budget however internal constraints placed on staff recruitment made it difficult to fully complete all initiatives.
22
A research project was completed and a paper given at WIPCE conference
23
This process is on-going in a yearly cycle.
24
Completion 76%; Graduation 40%
25
Completion 81%; Graduation 52%
26
Programme and school structures have been reviewed and changes will be implemented in 2006 after the consultation process has been completed.
27
Marketing material was reviewed and recommendations were implemented.
28
Student conversion and staircasing pathways were reported, baselines were established and targets were set.
29
Graduate survey was sent to a sample of 2004 students. A full survey of 2004 students is being conducted and the results are expected in March 2006.
30
Recruitment strategy has been redesigned. Implementation of this strategy will be in conjunction with the right-sizing of the organisation happening around May 2006.
31
Induction training includes vision, Kaupapa and history of TWOA.
32
The model is still being developed.
33
This project will be implemented in 2006.
34
A full review was undertaken during the year.
35
Staff are expected to attend karakia every morning before work commences.
36
13% of employees were engaged in formal education at degree level or above.
37
Ten senior managers plus their direct reports were provided with mentors at the beginning of 2005 to assist in the strategic direction of their campus, school or programme
38
Policy has been written but not implemented.
39
Decision to appoint this position is being reviewed.
5
6
Student achievement rates were: • Enrolment 15,316 • Retention 88% • Completion 88% •Graduation 83% The pilot was implemented in semester B 2004. The programme review was held in December 2004. The programme was run in both semesters in 2005.
7
Two new qualifications were offered in 2005.
8
In 2005 we offered a level three certificate in computing which included an interactive learning methodology.
9
45% of students came to TWOA from work.
10
Satellite provision was reviewed during the year.
11
Student participation monitored ad tracked using student evaluations.
12
A regional management structure was proposed and initial consultation was entered into during 2005, however the implementation of the regional management structure will not occur until 2006.
13
Retention rate 84%
14
This target was not achieved due to other priorities during the year.
15
Research was undertaken and reported on.
16
This target was not achieved due to other priorities during the year.
17
This target was not achieved due to other priorities during the year.
18
Full time position appointed to provide resources and training to campus student support staff.
Notes to the Statements of Service Performance - 63
40
Model has been reviewed and a new model developed. The model will be implemented along with the right-sizing of the organisation.
63
A strategic plan was developed and a Pasifika advisory group was established however the project was put on hold during 2005. This will be revisited mid 2006.
41
Professional Development Plans and alignment with TWOA goals will occur as part of the right-sizing of the organisation.
64
Enrolments 3,259.
65
Retention 79%.
42
The Risk Management Unit has been established and is operating.
66
Completion 72%.
43
There has been notable improvement in the quality of reporting to Council.
67
The disabilities strategic plan was developed in 2005. It will be implemented in 2006.
44
Revision of the members handbook has been partially completed.
68
Retention 78.5%; Completion 58.3%
45
The framework has been developed and will be implemented during 2006.
69
Development of all resource materials was completed mid 2005.
70
Accreditation was gained in April 2005 for Mängere and Porirua. The third year of the degree was offered for the first time in July 2005.
the repetitive nature of these.
71
48
Corrective Action Reports were written and monitored to ensure improvements were achieved.
The Bachelor of Iwi Environmental Management was delivered in 2005.
72
49
We are in the process of setting these groups up.
The level 2 programme First Steps to Business was developed and approved for delivery in 2005.
50
No new programmes have been submitted at this point in time.
73
51
A rigorous programme approval process has been established. To date only one programme has been submitted to NZQA after having gone through this internal approval process. At this point in time the outcome of that submission is unknown.
Research has been completed and indicated the need for a Maori Curriculum Advisor in the curriculum area.
74
During the year TWOA participated and worked towards the consolidation of the WINHEC structures and processes.
46
During the year 20 programmes were reviewed
47
There has been a reduction in the number of concerns raised and
75
The project is due to be started in 2006.
52
Some student programme evaluation work has been completed but not yet on a consistent or comprehensive basis. Policy development around this issue has been undertaken.
76
Diploma in Te Ara Reo Mäori was submitted to NZQA in early 2006. New Curriculum Directorate intends to make progress on this objective in 2006.
53
The Quality Management function has been established.
77
54
Audit programmes have been developed and implemented.
55
This project has been included in the 2006 profile.
This programme was not prioritised for 2005 and in 2006 the focus will be placed on the redevelopment of the B Teach (Primary) degree.
56
Although the Performance Indicator Tables were developed in 2004, the tables were not reviewed during 2005 and will not be reviewed until the right-sizing of the organisation is completed. Business Unit Tables are yet to be developed.
78
This project was not prioritised for 2005. The more immediate focus is to redevelop existing lower level programmes.
79
A paper proposing the development of such a strategy was drafted however this was not progressed due to other priorities.
57
The new Academic database was completed in December 2005.
80
58
A policy for student evaluations has been developed and the surveys are conducted on an on-going yearly cycle. Internal customer evaluations have not yet been implemented however these are planned for 2006.
Strategic Programme Review Policy and guidelines have been developed.
81
No review was undertaken. No strategy was developed and implemented because other priorities intruded.
82
Christchurch Polytechnic Institute of Technology and TWOA commenced negotiations towards a collaborative relations agreement to be signed in 2006. The purpose is to facilitate better delivery of Mäori tertiary education in Te Waipounamu. No other formal negotiations have been entered into with TEI’s. Existing relationships with Te Whare Wänanga o Awanuiärangi, Southern Institute of Technology and Northland Polytechnic and the Open Polytechnic of New Zealand continued during the year
59
External reporting has met the standards for timeliness and quality.
60
Enrolments 4,045
61
Retention 73%; Completion 67%
62
Further Education 34%; Higher Education 14%
64 - Notes to the Statements of Service Performance
83
Hui have continued with various iwi including Te Arawa and Tauranga-Moana, Tai Tokerau and Ngäi Tahu. A memorandum of agreement with Te Puna Mätauranga o Whanganui was negotiated during 2005 and signed in February 2006.
84
TWOA co-hosted the WIPCE conference during 2005. We are also involved with WINHEC Committee, Kellogs Foundation, Nechi Foundation, VAEAI Incorporated (host of WIPCE 2008) and WIPCE Organising Committee (previous host of WIPCE). We have continued to build relationships on an indigenous global level with the launch of the International Indigenous Journal of Entrepreneurship, Advancement, Strategy & Education in collation with the University of Management School Waikato University.
85
A claim was lodged with the Waitangi Tribunal and it was recommended that the Crown and TWOA make moves to formalise the partnership agreement.
86
TWOA are represented on key national education working parties.
87
Total Mäori students enrolled for 2005 was 25,946 compared with 30,066 in 2004.
88
Completion – 76%; Graduation – 40%
89
Current staff numbers show 66% are Mäori, 23% are non-Mäori and 11% have not identified their ethnicity.
90
99
Reviews were undertaken during the year included reviewing the Tauira Administration policy, the Tauira Handbook , Kaiwhakaako Handbook, the tutor induction checklist and TWOA website.
100
The staff induction has been reviewed and the Kaupapa component has been strengthened and includes a presentation made by the Cultural Advisors.
101
A DVD with the history of TWOA from 1983 – 2000 was produced.
102
TWOA has met with iwi representatives in various regions and has entered into a partnership arrangement with one of these iwi. Plans to engage with further iwi are being developed. A best practice model has not yet been developed.
103
This is an ongoing activity managed centrally and from campuses.
104
No review was undertaken. No strategy was developed and implemented because other priorities intruded.
105
We are in the early stages of discussions with several TEI’s.
106
Research activity decreased during 2005 however we did support staff to complete postgraduate studies and we also delivered a research conference to provide staff with research training.
107
During the year 1 Mäori staff member (0.14%) was studying towards a PhD and 19 (4.9%) were studying towards a Masters degree.
During the year 1 Mäori staff member (0.14%) was studying towards a PhD and 19 (4.9%) were studying towards a Masters degree.
108
During the year 12 non-Mäori staff members (3.66%) were studying towards a PhD and 41 (1.67%) were studying towards a Masters degree.
91
January 2005 64% of Council members were Mäori; January 2006 78% of Council members were Mäori
109
Due to the financial environment we were operating in during 2005 we did not achieve the targeted research outputs.
92
Kura Mäori has been established during 2005.
110
93
Diploma in Te Ara Reo Mäori was submitted to NZQA in early 2006. New Curriculum Directorate intends to make progress on this objective in 2006. The pilot has been completed and reports indicate a successful programme.
The overarching research strategic plan was developed in 2005. Individual schools developed research strategic plans to align with the overarching plan. Funding was not available to implement all of these plans.
111
94
Te Arataki Manu Körero has been successfully introduced in the Te Arawa iwi area, including Tauranga Moana and Whirikökä campus in Gisborne.
Research activities decreased during 2005. The target of 95 research outputs was not met.
112
The overarching 2005 Research Strategic Plan includes plans to access external funds from funding agencies and some funds have already been received.
95
No agreement has been signed to date.
96
Still being progressed through discussions with the involved parties.
113
Strategy was developed in 2005 however it was not implemented due to other priorities.
97
A Mäori Curriculum Advisor was appointed in October 2005.
114
98
TWOA established a relationship with Te Rünanga o Kirikiriroa and contracted their research unit to evaluate the Greenlight literacy programme.
The overarching Research Strategic Plan was developed in 2005 however it was not implemented.
115
Research strategy developed and implemented.
116
WIPCE conference was held in Hamilton from 27th November to 1st December 2005.
Notes to the Statements of Service Performance - 65