Published by: Te W채nanga o Aotearoa (Head Office - 320 Factory Road) PO Box 151, Te Awamutu, New Zealand Date of issue: 2008
He Whakamaumahara i Te Ariki-nui Remembrance Tangihia te tangi haehae rä i te whatumanawa Tangihia te tangi parawhenuamea nei i te nukuroa Të häro i te püao o te ata Kei Te Raukura Mähaki, haere rä Haere ki Te Pae o rangi-tühähä, ki Whakamoe-ariki täoki ai atu
The news of the passing of our Mäori Queen, Dame Te Ariki-nui Te Ata-i-rangi-kaahu, in August 2006 filled us all with great sadness. It is extremely difficult to find words to express the many thoughts and emotions we experienced throughout the tangihanga of our Queen and during the many days since. Her contribution to Tainui, to Mäori, to Aotearoa and to the world will forever be in the hearts, minds and souls of the many people who came into contact with her. Her life and her many achievements will continue to be recorded in the history books of many authors and in the assignments of many tauira the world over. Her life will also continue to be celebrated in song and dance for many generations to come. We ask Te Atua to watch over her as she joins the leaders of the Kïngitanga who have passed on before her: Kïngi Pötatau Te Wherowhero, Kïngi Tawhiao, Kïngi Mahuta, Kïngi Te Rata and Kïngi Koroki. Our thoughts are with Whatumoana, a pillar of strength and support for our Queen for many years and a leader in his own right and with ngä tamäriki me ngä mokopuna. Our aroha is with you all. Te Arikinui supported and guided Te Wänanga o Aotearoa many times throughout its history and was present particularly during times of struggle. Two notable recent events were the opening of Te Puna Mätauranga (Head Office) in the year 2000 and the pöwhiri for ACT members Ken Shirley and Rodney Hide in the heat of the political debates surrounding Te Wänanga o Aotearoa at that time. Her presence at the World Indigenous People’s Conference on Education in 2005 was another highlight. To our new King, Tüheitia Paki, a Poutokomanawa within Te Wänanga o Aotearoa for many years and campus director of Rähui Pökeka Campus, kia kaha, kia maia, kia manawa-nui.
nä Bentham Ohia Pouhere
He Whakamaumahara i Te Ariki-nui
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Remembrance - i
Ko te Kaupapa o Te Wänanga o Aotearoa The Character of Te Wänanga o Aotearoa: Ki te whakawhiwhi i ngä mea angitü, ä, i ngä akoranga katoa tino teitei mö ngä Mäori me ngä iwi o Aotearoa me te ao; Ki te waihanga i tëtahi ähuatanga hei akoranga tikanga Mäori; Ki te whakawhiwhi i te mea akoranga whai kiko; Ki te tautoko, ki te whakahau, ki te arahi 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 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 practical learning experiences; To provide support, encouragement and guidance to all learners in their pursuit of personal development, learning and employment; 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.
ii - Ko te Kaupapa o Te Wänanga o Aotearoa
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The Character of Te Wänanga o Aotearoa
Ko Te Uaratanga o Te Wänanga o Aotearoa The Mission Statement of Te Wänanga o Aotearoa 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, tö tätau reo, tö tätau 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 ano; 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
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The Mission Statement of Te Wänanga o Aotearoa - iii
iv
Table of Contents 01 Ngä Mema o Te Mana Whakahaere - Council Members 02 Kaiwhakahaere 03 Chairperson’s Report 04 Pouhere Report 06 Tauira Information 09 Employee Information 10 Statement of Service Performance 41 Financial Overview 43 Statement of Responsibility 44 Report of the Auditor-General 46 Statement of Accounting Policies 50 Statement of Financial Performance 51 Statement of Movements in Equity 52 Statement of Financial Position 53 Statement of Cashflows 54 Financial Ratios 55 Notes to the Financial Statements 70 Statement of Commitments and Contingencies
v
vi
Ngä Mema o Te Mana Whakahaere Council Members As at 31 December, 2006
Chairperson Ministerial Appointment
Craig Coxhead B Soc Sci; LLB (Hon); LLM (Waikato) Resigned: 10 January, 2008
Deputy Chairperson Co-opted Member
Richard Batley BMS (Waikato); CA Elected as Chairperson: 27 February, 2008
Pouhere (CEO) Ex-officio
Bentham Ohia Dip Tchg (Waikato); BA (Otago); MBA (Waikato)
Members Ministerial Appointment
Tania Hodges RPN; BSocSci; PG Dip Mgmt St; MBA (with Distinction); PGCBR
Co-opted Member
Lloyd Anderson RN; Dip Dairy Farming
Co-opted Member
Mana Forbes Dip Tchg; Dip Te Arataki Manu Körero
Kaumatua
Napi Waaka OBE; Adj Professor; Dip Theol; Dip Tchg
Co-opted Member
Parekäwhia McLean MA (Wisconsin); MSocSci (Waikato)
Ministerial Appointment
Tamati Reedy BA; MA (Auckland); MA; PhD (Hawaii)
Hoturoa Barclay-Kerr
Co-opted Member
Matt McCarten
NZCTU Representative
Peter Skerrett
Staff Representative Academic
Dip Te Tohu Mätauranga i te Reo me ona Ähuatanga Katoa; Dip te Reo Rangatira; B Appl Soc Sci
Business NZ Representative
Neville Baker Dip Soc Work (Victoria)
Student Representative
Jo Davey Dip Bus Comp (Wintec); B InfoTech (Wintec)
Kaumatua Kaumatua – Cultural Advisor
Tui Adams QSO; Hon PhD (Waikato); Adj Professor (TWoA)
Ngä Mema o Te Mana Whakahaere
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Council Members - 1
Kaiwhakahaere as at 31 December, 2006
Ngä Kaihautü Marvynne Ashley
Kaihautü Student Services
Jay Bocock
Kaihautü Information Management
Shane Edwards
Kaihautü Curriculum
Peter Huntley
Kaihautü Human Resources
Turi Ngatai
Kaihautü Delivery
Hinemoerangi Ngatai Tangirua
Kaihautü Teaching & Learning
Kaiwhakahaere-a-Rohe Haimona Maruera Jnr.
Regional Manager - Papaiöea
Mathew Maynard
Regional Manager - Te Tai Tonga
Jim McTamney
Regional Manager - Waiariki
George Ngatai
Regional Manager - Tamaki Makaurau
Katerina Te Kani
Campus Manager - Whirikökä
Brad Totorewa
Regional Manager - Tainui
Tui Adams
Kaumatua to Pouhere & Te Arataki Manu Körero
Logan Anderson
Student Support Services Manager
Theresa Aucamp
Human Resource Development Manager
Louise Berney
Finance Manager
Lonny Brown
Human Resource Operations Manager
Kieran Hewitson
Curriculum Leader
Jeanette Horan
Marketing Manager
Heather Johnston
Health & Safety Manager
Chona Kennedy
Student Registry Manager
Angela Malcolm
Curriculum Development Hub Leader
Jason Nepia
Customer Services Manager
Elizabeth Nikora
Strategic & Quality Assurance Manager
Colin Owens
Delivery Analyst
Elizabeth Pakai
Early Learning National Manager
Marie Panapa
Senior Cultural Ambassador
Jade Stevens
Technology Project Manager
Diane Stockman
Audit and Risk Management Unit Manager
Carla Te Anga
Academic Data Unit Manager
Te Napi Waaka
Kaumatua
Warren Williams
National Technical Services Manager
Te Ranga Tuarua
2 - Kaiwhakahaere
Chairperson’s Report 2006 marked a year where tough but necessary decisions were made by Te Wänanga o Aotearoa to ensure the institution continues to fulfil its essential role in the New Zealand tertiary education landscape. The year brought more consolidation and re-alignment to halt declining revenue and to meet new tertiary education policy. It has been a year where the spirit and commitment of the institution’s staff and council continued to ensure we remained true to our principles, while protecting the survival of Te Wänanga o Aotearoa. The significant efforts of staff saw more than 42,000 tauira enrol with the institution. This was an increase on budget of almost ten percent, which provided a clear demonstration of the importance of Te Wänanga o Aotearoa in the tertiary education landscape. The result provided increased income to fund further consolidation efforts. At the start of the year, Bentham Ohia was appointed as Pouhere of Te Wänanga o Aotearoa. His immediate task was to reconfirm the presence of Te Wänanga o Aotearoa in the sector and to effect changes necessary to set a clear pathway forward for the institution. Bentham brings to the role thirteen years of senior management experience working within Te Wänanga o Aotearoa. I welcome Bentham as leader of this institution and offer my gratitude for his efforts during 2006. His knowledge of the objectives of Te Wänanga o Aotearoa and his absolute commitment to the kaupapa, mission and values ensure that the unique essence of the institution will be preserved.
testing governance and management structures to ensure we are best placed to meet an exciting future. I applaud Craig Coxhead and members of Te Mana Whakahaere for their continued efforts, providing vision and guidance for the required changes throughout this year. I would also like to thank Crown Manager, Brian Roche, and his team for providing specialised advice and assistance as we improve the efficiency of the organisation moving forward. Most importantly, I acknowledge the efforts of the Pouhere and his team for their immense efforts in driving change within the organisation. This has ensured we are better placed to continue to meet the education and training needs of the communities we serve.
Richard Batley Chairperson – Te Mana Whakahaere
Te Wänanga o Aotearoa has identified and begun to implement the processes required to ensure the vibrant and exciting potential of this organisation is achieved. We have continued to provide fresh, dynamic programmes (from certificate to degree level) that draw tens of thousands of tauira to our classrooms. It is the unique and inclusive learning environment offered by Te Wänanga o Aotearoa that attracts many of these tauira to develop their skills to meet their potential, adding greater value to their communities and the New Zealand economy. The new direction charted for Te Wänanga o Aotearoa upholds the institution’s kaupapa. We remain steadfast in our commitment to maintain an inclusive and nurturing educational philosophy based on Mäori principles and values. Change has been driven by a new political environment coupled with a very buoyant job market. The realignment is also an inevitable outcome of the spectacular growth experienced by the organisation in recent years. Although much work has been done, there is still a need for further consolidation. This will include Chairperson’s Report
- 3
Pouhere Report Transition and transformation were the defining characteristics of 2006. It was a year of rebuilding following the internal and external demands of 2005. My role as Pouhere was confirmed at the start of the year and I humbly accepted the task of reaffirming the position of Te Wänanga o Aotearoa as a significant contributor to Mäori development and to development of the wider community. Over the period 2001 to 2004, Te Wänanga o Aotearoa grew very quickly and, accordingly, we employed a large number of staff to meet the needs of our tauira and the needs of our organisation. This rapid growth outpaced our ability to create and embed the administrative systems necessary to support this influx of new staff. As a result, our structure developed in response to our immediate needs. Like other tertiary institutions, Te Wänanga o Aotearoa experienced a downturn in enrolments during 2006, attracting just 60% of the 2003 peak. With tauira numbers falling, we were in a position of having more staff than our income was able to support. At the same time, changes in tertiary education sector policy precluded a return to the period of high growth in tauira numbers that had been experienced earlier. For these reasons, our primary focus during 2006 was to ensure Te Wänanga o Aotearoa survived, operated within its resources and became a more efficient organisation while continuing to deliver innovative, effective and valued educational options for our tauira. Strategies for increasing revenue and reducing costs were proposed and confirmed. One strategy was to restructure the organisation and this was implemented in 2006. The restructure (Te Anga Whakamua) provides an enhanced management framework with clearer reporting lines and additional clarity for roles and responsibilities throughout the institution. Te Anga Whakamua also included a reorganisation of our programme delivery and campus operations across the country. The five new regions (rohe), including Gisborne campus, are: • Tamaki Makaurau / Tai Tokerau (Northern) Rohe; • Tainui (Waikato) Rohe; • Waiariki (Bay of Plenty / Rotorua) Rohe; • Papaiöea (Central) Rohe; • Te Tai Tonga (Southern) Rohe; and • Whirikökä (Eastern) Campus.
4 - Pouhere Report
Te Anga Whakamua affected 643 non-tutorial staff across the institution with 330 positions, sadly, being made redundant. Yet, against this unsettling backdrop, non-tutorial staff continued to support teaching staff to deliver education to over 42,000 tauira (totalling 19,750 consumed EFTS). The commitment of staff during this period enabled the institution to maintain retention, completion and graduation rates that were once again amongst the highest within the tertiary education sector in Aotearoa New Zealand. Their efforts paved the pathway to survival for our organisation. As part of Te Anga Whakamua, management engaged in significant rationalisation of the institution’s property portfolio. This, combined with careful management of operating cashflow, ensured that Te Anga Whakamua was completed without any injection of external funds. After a one-year hiatus in 2005, the institution implemented a series of programme development initiatives. These initiatives focused on reshaping programme development and review processes and procedures, strategic analysis of the programme portfolio and medium-term programme development planning. Completion of the planning process led to refreshment of a number of existing programmes and recommencement of programme development. Our Hui-ä-Kaupapa (the annual National Conference of Te Wänanga o Aotearoa) was hosted by Waiariki Rohe during September. The conference was held in conjunction with the Mata Wänanga Kapa Haka Competition. The kaupapa of the conference was whakawhanaungatanga, with its aim being to bring all the kaihoe of our waka together following an eighteen-month period of enormous challenge. It is now vitally important to acknowledge these challenges while moving forward as we continue in our mission to empower people to be the best they can be. Graduation is a time when we get together to celebrate the achievements of our tauira. It is also a time to reflect on and celebrate our achievements through our work with our tauira; the success of our tauira is a direct reflection of our success as kaimahi. This year I have had the good fortune of talking to dozens of current and former tauira up and down the country. Many of our graduates are very thankful for the opportunities provided by Te Wänanga o Aotearoa and speak passionately of their experiences. Their körero was positive and created some inspiring themes. Comments I received include:
“I never thought I would ever do any tertiary study before I went to the Wänanga.”
John goes on to talk about Te Wänanga o Aotearoa in general:
“My kaiako was the reason the programme was awesome.”
“You’ve got to ask yourself: ‘Why is it that so many people picked up the programmes that the Wänanga were running?’ It’s phenomenal! It’s an absolute phenomenon!”
“The environment was so supportive.” “I loved learning within a Kaupapa Mäori environment.” “I met people from backgrounds and cultures who I thought I would never associate with before. That was great”! “When I completed my course four years ago, we established strong relationships in our class. These relationships remain strong today thanks to the Wänanga.”
Our purpose is to provide our communities with positive and transformative educational experiences within a Mäori cultural learning environment. Our programmes are empowering, they are positive and they inspire and encourage those within our communities to reach their full potential.
“If it wasn’t for the Wänanga, I wouldn’t be working at the Westpac Bank today.”
The new structure within Te Wänanga o Aotearoa, the new programmes we are currently developing, renewed collaboration with other education providers and our staff development and marketing initiatives are components of an overall strategy that will enable us to move forward in a new tertiary environment. The strategy at the centre of these initiatives is our Quality Improvement Strategy, which resulted from a visit Craig Coxhead, Shane Edwards and I made to Leicester College in England. The experience provided us with a better understanding of the Tertiary Education Strategy and how we, as a kaupapa Mäori institution, can work within it.
Our programmes provide the necessary stepping stones to enable people to cross rivers to reach their goals and those of their whänau. After being with Te Wänanga o Aotearoa for thirteen years, I can say without doubt that our programmes are unique and provide mätauranga (knowledge) that is distinct from that of any other institution in this country.
Our progress depends on people who understand our organisation, who understand the needs of our tauira, who are committed to Te Wänanga o Aotearoa and who are skilled in the work they do. Between us, we can move forward and continue to do the work we have always done so well; to help our tauira achieve to their full potential and to make our world a better place.
“I was the first person to graduate with anything in my family.” “I did my course together with my wife. It was great!” “My grandmother and my parents attended my graduation and it was one of the highlights of my life to date!!!”
People are talking about the great things Te Wänanga o Aotearoa has achieved, about our programmes and about the way we deliver them. People are also talking about our tauira and the skills they take with them as they move into the world. The New Zealand Education Review magazine recently ran an article called ‘Faith in Education, and not the System’. The article contained an interview with John Scott, who has been the CEO of Christchurch Polytechnic and Institute of Technology (CPIT) for twenty-two years. In the interview, John talks about the Mahi Ora programme and says:
Bentham Ohia Pouhere
“It’s a stunning programme. It is an absolutely stunning programme. I’ve looked at it in some depth and I’ve been involved in community education for all my career and in my view it met virtually every criteria for an exceptionally good community education programme.”
Pouhere Report
- 5
Tauira Information Overview 2006 has presented difficulties for Te Wänanga o Aotearoa with regard to maintaining enrolment numbers. Disruptions created by Te Anga Whakamua coupled with declining enrolments in a number of key high enrolling programmes that have now reached maturity have impacted on our performance in this area. Although tauira numbers declined, the demographics of these tauira remained relatively unchanged (within 5% across all measures) and achievement rates continued to be amongst the best in the country. This section presents information relating to demographics, participation and achievement of tauira attending Te Wänanga o Aotearoa in 2006. Data and statistics are also presented for 2002 to 2005 to enable comparative analyses.
Equal Opportunities for Tauira Te Wänanga o Aotearoa is committed to providing equal opportunities for all tauira with a particular focus on those who have previously been prevented from participating in tertiary education as a result of various barriers. As part of this commitment, Te Wänanga o Aotearoa provides extensive support services and facilities designed to provide all tauira with opportunities to actualise their potential.
Tauira Participation 2006 has seen a reduction in the number of tauira attending Te Wänanga o Aotearoa. This result is largely due to events that occurred during 2005, which impacted on our reputation. In addition, our capacity to replace some of our larger programmes with new high-enrolment programmes has been limited by the 200 EFTS growth cap implemented through government policy.
6 - Tauira Information
Tauira Numbers Figures from the 2006 single data return (SDR) show a 26.6% decline on 2005 tauira numbers. The decline on 2004 numbers is 36.4%. The following table shows tauira numbers drawn from SDRs for 2002 to 2006.
Number of Tauira
2002
2003
2004
2005
2006
44,158
63,387
66,756
57,843
42,455
EFTS The decline in tauira numbers in 2006 led to a similar decline in consumed EFTS of 27.1%. The following table shows consumed EFTS from SDRs for 2002 to 2006.
EFTS
2002
2003
2004
2005
2006
20,769
34,280
29,671
27,014
19,670
Tauira Demographics The tauira profile of Te Wänanga o Aotearoa reflects areas of need within the communities served by the organisation. Since its inception, Te Wänanga o Aotearoa has consistently attracted high numbers of Mäori, women, people aged over 30 years and those with low or no secondary qualifications. 2006 was no exception, with high numbers of tauira in these demographics continuing to transform their lives through the programmes offered by Te Wänanga o Aotearoa.
Age Profile The age demographic of Te Wänanga o Aotearoa shows a decline in the number of 18-24 year olds studying at Te Wänanga o Aotearoa, with an increase in the number of tauira aged 40 years and over. Much of this trend can be attributed to the growth of the Te Arataki Manu Körero programme, with the majority of tauira enrolled on this programme being over the age of 40 years.
The following table shows age demographic statistics for 2002 to 2006. 2002
2003
2004
2005
2006
Under 18 years
2%
1%
1%
1%
1%
18 to 24 years
18%
13%
11%
10%
10%
25 to 39 years
44%
44%
43%
41%
40%
40 years plus
36%
42%
45%
48%
49%
Gender Profile In line with previous years, Te Wänanga o Aotearoa continued to attract larger numbers of females. Although a trend of increasing participation by males was evident between 2002 and 2004, this trend now appears to be reversing slightly. The following table shows percentages of males and females engaging with education at Te Wänanga o Aotearoa from 2002 to 2006. 2002
2003
2004
2005
2006
Male
26%
30%
33%
32%
30%
Female
74%
70%
67%
68%
70%
by the secondary education system. The popularity of our programmes with tauira in this group arises from the extensive tauira support provided and the portfolio of programmes offered by the organisation. In 2006, Te Wänanga o Aotearoa continued to attract a significant proportion of tauira with no secondary award. The following table shows percentages of tauira engaging in study with Te Wänanga o Aotearoa between 2002 and 2006 who had no secondary qualifications when they joined the organisation. 2002
2003
2004
2005
2006
No Secondary Award
54%
46%
38%
38%
37%
Female
74%
70%
67%
68%
70%
Prior Activity Profile As in previous years, a large proportion of tauira who enrolled at Te Wänanga o Aotearoa in 2006 were in the ‘non-workforce’ category. This proportion is declining as increasing numbers of people in the workforce join the organisation to raise their skill levels. This trend has been consistent over the last six years with the proportion down from a high of 53% in 2001. The following table shows prior activity statistics for tauira enrolling at Te Wänanga o Aotearoa for 2002 to 2006.
Ethnicity Profile The percentage of tauira Mäori engaging in education at Te Wänanga o Aotearoa increased during 2006, as did the percentage of European / Päkehä. Growth in these two ethnic groups resulted from a decrease in the percentage of Asian and Pacific Island tauira. Reductions in the number of Asian tauira resulted from the gradual phasing out of the Kiwi Ora programme, reversing the growth trend in this area in previous years. The cause of the decline in Pacific Island tauira is not clear, but provides a challenge for Te Wänanga o Aotearoa in the future. The following table shows ethnicity statistics for 2002 to 2006. 2002
2003
2004
2005
2006
Mäori
77%
59%
45%
45%
48%
European/Päkehä
16%
18%
17%
18%
20%
Asian
1%
16%
28%
27%
24%
Pacific Island
5%
5%
7%
6%
4%
Other
1%
2%
3%
4%
4%
No Secondary Award Te Wänanga o Aotearoa has, since its inception, been committed to providing education to those marginalised
2002
2003
2004
2005
2006
Non-Workforce
46%
41%
37%
35%
32%
Workforce
38%
41%
43%
45%
48%
Tertiary
10%
9%
10%
6%
6%
School
4%
3%
2%
2%
2%
Overseas
2%
6%
7%
6%
6%
Other
0%
0%
1%
6%
6%
Tauira with Disabilities In line with its commitment to reducing barriers to education, Te Wänanga o Aotearoa continued to attract large numbers of tauira with disabilities during 2006. The following table shows percentages of tauira for 2002 to 2006 who reported having a disability. Data was drawn from enrolment forms.
Tauira with Disabilities
2002
2003
2004
2005
2006
11%
10%
9%
10%
11%
Note: This table does not include tauira who did not identify as having a disability on their enrolment form, but who were supported by Tauira Support Services during their studies.
Tauira Information
- 7
Tauira Achievement Tauira at Te W채nanga o Aotearoa continued to perform well in their studies during 2006. The overall course retention rate was 78%. A slight decline (1%) in the course completion rate was recorded in 2006, moving down from 76% in 2005 to 75% in 2006. The rate is still an improvement on the 2004 rate. The following table shows retention and completion statistics for the 2002 to 2006 period. 2002
2003
2004
2005
Course Retention Rate
85.4%
84.1%
83.1%
82%
74%
Course Completion Rate
67.0%
66.1%
74.1%
76%
70%
41%
47%
59%
60%
53%
Graduation Rate*
2006
* Graduation Rate = The number of tauira who completed a programme of study as a percentage of all tauira who enrolled to complete a programme in that academic year.
8 - Tauira Information
Employee Information In accordance with its kaupapa, Te Wänanga o Aotearoa strives to be a good employer. As part of this commitment, and in accord with the EEO policy of the organisation, Te Wänanga o Aotearoa is inclusive of all people, regardless of culture, ethnicity, age, gender, political opinion or religious persuasion. This section presents demographic statistics for employees working for Te Wänanga o Aotearoa between 2002 and 2006.
The following table shows ethnicity statistics for the 2002 to 2006 period. 2002
2003
2004
2005
2006
NZ Mäori
42%
44%
55%
66%
64%
European / Päkehä
5%
6%
8%
11%
10%
Pacific Island
3%
4%
5%
6%
5%
Asian
1%
1%
2%
3%
3%
Other
1%
2%
2%
3%
4%
Not Specified
48%
43%
28%
11%
14%
Employee Numbers Full-time equivalent employee (FTE) numbers decreased markedly (28%) during 2006. This decline was largely as a result of Te Anga Whakamua (the Te Wänanga o Aotearoa organisational restructure). This reduction has returned staffing levels approximately to those during 2002. The following table shows numbers of FTEs for 2002 to 2006. Data for 2006 are drawn from the SDR.
FTEs
2002
2003
2004
2005
2006
950
1,232
1,432
1,393
1002
Gender Profile The employee gender ratio remained unchanged in 2006 and has been relatively constant over the past five years. The current employee gender ratio closely matches the tauira gender ratio. The following table shows the percentage of males and females working for the organisation from 2002 to 2006. 2002
2003
2004
2005
2006
Male
42%
38%
34%
37%
37%
Female
58%
62%
66%
63%
63%
Ethnicity Profile The number of Mäori working at Te Wänanga o Aotearoa fell slightly during 2006, but remained high at 64%. As a Mäori organisation, this ensures strong connections are maintained with iwi and with the communities predominantly served by the organisation. These connections also provide day-to-day input from key stakeholders into activities occurring within the organisation.
Employee Information
- 9
Statement of Service Performance 1.0 Institution 1.1 Contribution to the Tertiary Education System Whainga 1.1.1 The programme portfolio of Te Wänanga o Aotearoa will be strategically relevant in accordance with the core role of a wänanga and TEC (Tertiary Education Commission) guidelines.
1.1.1.1 Programme provision is in alignment with the TES (Tertiary Education Strategy 2002/07) and STEP (Statement of Tertiary Education Priorities 2005/07). Performance Measure
Progress
Programme assessment conducted and Programme portfolio review completed. All action plan implemented. programmes currently align with TES, STEP and Te Wänanga o Aotearoa approved Profile. Programme elements adjusted to ensure alignment with wänanga philosophy.
1.1.1.2 Cultural, social, environmental and economic aspirations of Mäori are supported. Performance Measure
Progress
Research completed and strategy developed.
Strategy and planning under development for stakeholder consultation at programme, delivery site, regional and national level. Collaborative relationships with iwi education authorities under development to guide research into education opportunities that meet the economic, cultural, environmental and social aspirations of iwi.
1.1.1.3 Graduates are provided with strong foundation and generic skills that enable stair-casing within the institution or to other TEIs (Tertiary Education Institution).
10 - Statement of Service Performance
Performance Measure
Progress
At least 20% of tauira (students) pathway to further study.
27% of tauira enrolled with Te Wänanga o Aotearoa in 2006 had pathwayed into further education. Graduate Survey indicates a further 20% of graduates enrolled at other institutions.
Whainga 1.1.2 Te Wänanga o Aotearoa will ensure its distinctive roles and responsibilities are reflected in strategic and business planning.
1.1.2.1 A needs analysis of young Mäori educational aspirations and learning experiences is conducted. Performance Measure
Progress
Needs analysis designed, implemented and reported.
Needs analysis focus groups held for all groups, including young Mäori as part of the Prospectus 2006 development. Graduate Survey queried graduates on interest in future fields of study. Further analysis of results is necessary.
1.1.2.2 The definition of wänanga under the Education Act, 1989 is met by Te Wänanga o Aotearoa. Performance Measure
Progress
Strategy developed to collaborate with Government to develop and define the role of wänanga and identify and characterise mätauranga Mäori.
Research projects initiated to further refine Kaupapa Wänanga, a comprehensive approach to the distinctive contribution of Te Wänanga o Aotearoa. Response to the TEC’s request for input into the ‘Distinctive Contribution of Wänanga’ submitted.
Whainga 1.1.3 Te Wänanga o Aotearoa will ensure promotional and marketing material effectively attracts our core target group.
1.1.3.1 Efficacy of marketing and promotional material is assessed regularly. Performance Measure
Progress
Marketing and promotional material revised to reflect results from assessment model.
Marketing and promotional assessment model developed and implemented.
1.1.3.2 Promotional and marketing activities are informed by contract research and other surveys regarding target audiences. Performance Measure
Progress
Target-specific research conducted and findings used to inform promotional and marketing activities.
All marketing proposals include targeted research that considers audience characteristics, motivation, potential barriers and preferred media type. This research informs related promotional and marketing activity.
Statement of Service Performance - 11
Whainga 1.1.4 Te Wänanga o Aotearoa will contribute to the development of Mäori / indigenous cultural standards and criteria for indigenous programme development.
1.1.4.1 Research and planning for the development of Mäori cultural standards and criteria are conducted. Performance Measure
Progress
Recommendations, hui and consultation held. Agreement reached on framework.
Kaupapa Wänanga project initiated to develop Mäori cultural standards and criteria for Te Wänanga o Aotearoa. Project will involve stakeholder hui and consultation to achieve a consistent approach to tikanga Wänanga.
1.1.4.2 Quality assurance research is completed in conjunction with Te Tau Ihu o ngä Wänanga. Performance Measure
Progress
Mäori quality assurance framework developed and pilot Mäori internal audit model implemented.
Mäori Quality Assurance framework project initiated. Informal discussions held with senior staff to initiate generation of ideas. Mäori audit model working group initiated and pilot to be implemented in 2007.
1.2 Treaty of Waitangi Whainga 1.2.1 Te Wänanga o Aotearoa will be a Mäori-led organisation underpinned by Mäori values.
1.2.1.1 Tailored tikanga Mäori advisory workshops are included in the induction process. Performance Measure
Progress
Training programme developed and rolled New staff induction programme, including out to existing and new staff. Tikanga Mäori component, developed and implemented. Te Pünaha Arataki (new Employee Induction Handbook), including ‘Customary Practices’ section, printed and implemented.
1.2.1.2 All staff are encouraged to participate in learning Te Reo me ngä Tikanga Mäori. Performance Measure
Progress
Staff encouraged to make a daily commitment.
All staff encouraged to attend karakia and pöwhiri. ‘Te Reo Mäori for the Office’ programme developed to offer to all staff in 2007. Treaty of Waitangi programme under development for delivery to tutorial staff in 2007.
12 - Statement of Service Performance
Whainga 1.2.2 Te Wänanga o Aotearoa will maintain strong numbers of Mäori tauira, staff and Te Mana Whakahaere (Council) members and continue to support progress in their respective roles.
1.2.2.1 Appropriate qualifications necessary for the effective performance of roles are held by Mäori and all other staff. Performance Measure
Progress
Staff capability re-assessed after organisational restructure.
Te Anga Whakamua restructure (2006) utilised a competency based approach to ensure all staff were employed or redeployed based on their qualifications and skills. Formal professional development plans, including identification of training pathways, incorporated into the annual performance review process with quarterly reviews against plans.
Whainga 1.2.3 Te Wänanga o Aotearoa will provide pathways for Mäori to access higher-level qualifications using a Mäori approach to life-long learning with programmes across all curriculum areas.
1.2.3.1 Internal pathways for young Mäori tauira (25 years or under) are defined and / or provided. Performance Measure
Progress
28% of tauira follow a pathway to further education.
33% of young Mäori tauira enrolled in 2006 had pathwayed into further education at Te Wänanga o Aotearoa.
1.2.3.2 Programme pathways to higher learning for Mäori are provided. Performance Measure
Progress
28%+ of tauira follow a pathway to higher education.
22% of Mäori tauira enrolled in 2006 had pathwayed into higher education at Te Wänanga o Aotearoa.
1.2.3.3 Mätauranga Mäori is used as a base for all programmes. Performance Measure
Progress
Framework for assessing mätauranga Mäori content of programmes developed. Mätauranga Mäori assessment embedded in academic approval process.
Assessment of mätauranga Mäori programme content embedded in the academic approval process. New programme curriculum document template includes sections relating to mätauranga Maori to be completed before approval by Te Poari Mätauranga (Academic Board).
Statement of Service Performance - 13
Whainga 1.2.4 Te Wänanga o Aotearoa will support Mäori development through partnerships with Mäori communities.
1.2.4.1 Iwi are assisted to advance their aspirations with the Crown. Performance Measure
Progress
Scoping study completed to ascertain iwi aspirations regarding Mäori development through education.
Strategy and planning under development for stakeholder consultation at programme, delivery site, regional and national level. Contracts for collaborative relationships with iwi education authorities continue to be negotiated to provide education opportunities that meet aspirations of iwi. Kaumätua engagement groups (Kaumätua Koeke) formed to formalise consultation at a regional level, and to encourage engagement by kaumätua in day-to-day operations at sites.
1.2.4.2 Education programmes are offered to assist iwi to manage financial and non-financial resources. Performance Measure
Progress
Scoping study completed to identify skills gaps. Existing programme portfolio reviewed to identify gaps against the scoping study.
Target reviewed and postponed pending further consultation with iwi education authorities.
Whainga 1.2.5 Te Wänanga o Aotearoa will be an accountable and responsible Treaty of Waitangi partner.
1.2.5.1 The specific role of Te Wänanga o Aotearoa in relation to other TEIs is clearly defined in a partnership agreement with the Ministry of Education. Performance Measure
Progress
Treaty partner relationship document drafted Te Wänanga o Aotearoa / TEC Relationship and signed. Agreement drafted. Awaiting signoff by TEC. Te Wänanga o Aotearoa is awaiting Crown’s response to Waitangi Tribunal Claim 1298 recommendations.
14 - Statement of Service Performance
1.2.5.2 Te Wänanga o Aotearoa is represented on key national education working parties. Performance Measure
Progress
National education working party Fortnightly interagency meetings representation completed and implemented. established between Te Wänanga o Aotearoa, TEC, TAMU and NZQA. Te Wänanga o Aotearoa represented at inter-wänanga hui (a forum for the three wänanga to discuss the tertiary reforms and their affect on wänanga education in Aotearoa New Zealand). Te Kaihautü o te Uepü o Marautanga (Director Curriculum Development) is on the Peer Review Panel of the PBRF Committee for Mäori Knowledge and Development.
Whainga 1.2.6 Te Wänanga o Aotearoa will develop, maintain and strengthen Kaupapa Mäori programmes.
1.2.6.1 Pathways to employment and higher learning are developed through the curriculum area of Mäori studies. Performance Measure
Progress
Diploma in Te Ara Reo Mäori monitored and tracked. Development of the Bachelor of Te Reo Mäori finalised. Te Tohu Mätauranga certificate and diploma reviewed. Option for mixed-mode delivery of Mauri Ora explored. Te Panekiretanga oTe Reo programmes for QAB or QVA prepared.
Diploma in Te Ara Reo Mäori completed and approved by NZQA. Bachelor degree in Te Reo Mäori has been withdrawn. Tauira now pathway to programmes developed by other wänanga. Te Tohu Mätauranga certificate and diploma review completed and changes implemented. Mauri Ora delivery remains home-based. Te Panekiretanga considered to be beyond the scope NZQA approval processes. Programme not submitted to NZQA.
Statement of Service Performance - 15
1.2.6.2 Te Arataki Manu Korero programme is developed and shared with other iwi. Performance Measure
Progress
Te Arawa programme monitored and tracked. Programme for Tauranga Moana and other iwi developed.
Te Arataki Manu KÜrero run successfully in Te Arawa and Tauranga Moana with support of tangata whenua. Programme changes made at certificate and diploma level for wider delivery with improvements to make possible wider inclusion of local content. Requests received from Auckland, Far North, South Island, Wellington and Bay of Plenty regions. Interest also received from whänau Pasifika.
1.3 Quality Whainga 1.3.1 Te Wänanga o Aotearoa will be a leader within the sector through its innovative approach to quality management.
1.3.1.1 A new structure and associated change management strategies are implemented. Performance Measure
Progress
Relationships and interactions are understood and working in practice.
New organisational structure finalised and implemented in 2006. The new structure is now in operation. Procedure re-development project will further enhance understanding of relationships and interactions. Procedures to be implemented in 2007.
1.3.1.2 Staff development strategies to improve adherence to external and internal quality guidelines are developed and implemented.
16 - Statement of Service Performance
Performance Measure
Progress
New staff development strategies in place.
Performance review strategy implemented. Post-restructure performance reviews conducted in late 2006 leading to development of institution-wide professional development programmes.
1.3.1.3 Accurate, timely and up to date information that meets external and internal requirements is provided by information systems. Performance Measure
Progress
New data warehouse in place.
Institution-wide database alignment and data quality improvement project initiated through Quality Reinvestment Fund application.
Whainga 1.3.2 Te Wänanga o Aotearoa will build a culture of quality across the organisation.
1.3.2.1 A ‘best practice’ Quality Management System (QMS), consistent with external requirements and the kaupapa, is developed and implemented. Performance Measure
Progress
New QMS implemented.
Te Kaupapa Kounga (QMS Manual) developed and approved by Te Mana Whakahaere. Te Kaupapa Kounga to be implemented in 2007.
1.3.2.2 Audit systems that measure compliance and facilitate continuous improvement are developed. Performance Measure
Progress
Outcomes of internal and external audits are NZQA audit of work completed in 2006 improved. resulted in one corrective action and one recommendation. Quality of new programme submission to NZQA is improved. Programme development processes have been reviewed however no new programmes were submitted to NZQA in 2006.
1.3.2.3 Performance indicator tables are implemented. Performance Measure
Progress
Performance monitoring and reporting systems [league tables] are reviewed and improved. An action plan to respond to any issues is developed.
Strategic Planning and Performance Framework project initiated. Prototype of consolidated enrolment database completed. Data warehousing, data cleansing and data matching projects initiated. Quality Reinvestment Fund application completed to access funding.
Statement of Service Performance - 17
1.3.2.4 Te Wänanga o Aotearoa ‘internal customer’ surveying policies and procedures are established and implemented. Performance Measure
Progress
Surveys are used to inform continuous improvement.
An organisational climate survey, Wänanga Ora, has been conducted to assess staff opinion. The survey sets a baseline for future annual assessments and to track organisational trends. Survey results collated and reported to management to inform decision-making.
1.3.2.5 Kaihautü (Directors) are appointed as part of Kökiri Whakamua restructure. Performance Measure
Progress
Quality review undertaken and implementation plans designed, developed and actioned.
Review implemented and findings actioned. Six out of seven Kaihautü were appointed during 2006 as part of the Te Anga Whakamua restructure. Crown Managers have undertaken responsibility for financial management since the 2nd quarter of 2005.
Whainga 1.3.3 Te Wänanga o Aotearoa will maintain effective academic quality assurance systems.
1.3.3.1 Robust Te Poari Mätauranga quality assurance processes for programme development, redevelopment and monitoring are developed and implemented. Performance Measure
Progress
New processes fully implemented.
New processes established and implemented. Te Ara Waihanga Marau (Programme Development Pathway and Category of Changes Guidelines) created to ensure robust processes and procedures are adopted for programme development. Te Puna Waihanga (Programme Development Committee) established to ensure programme developments and redevelopments meet internal and external requirements. Regular monitoring reports received by Te Poari Mätauranga regarding programme reviews, tauira surveys, moderation activity and programme allocations. Te Poari Mätauranga receive documentation from Te Puna Waihanga to approve programme developments and redevelopments.
18 - Statement of Service Performance
1.3.3.2 Stakeholder consultation regarding quality of programmes is used to inform programme review. Performance Measure
Progress
Quality information is collected from stakeholders through Kömiti Äwhina. Information is embedded in programme review.
Kömiti Äwhina (programme consultation groups) reviewed in late 2006. From 2007, all programmes will have Kömiti Äwhina as part of continued stakeholder involvement and quality improvement.
1.3.3.3 Programme portfolio of Te Wänanga o Aotearoa is of high quality and is relevant. Performance Measure
Progress
Findings of the Quality and Relevance Review used to improve programmes. Annual quality and relevance review conducted.
TEC Assessment of Strategic Relevance (ASR) process superseded the A1J1 Review strategy. Agreement with TEC was reached to incorporate quality and relevance criteria into programme development and programme review processes. Two programme review reports have been submitted and approved by Te Poari Mätauranga. A further seven programme reviews were conducted and are pending formal reports to Te Poari Mätauranga.
1.3.3.4 Review of the delivery mechanisms for all programmes is conducted to ensure quality. Performance Measure
Progress
International industry scan of distance Distance delivery review conducted. delivery educational institutions is conducted Recommendations to be implemented in to ascertain quality outcome benchmarks. 2007. Programme delivery mechanism is adjusted to accommodate findings.
1.3.3.5 The self directed learning component meets learners’ needs and ensures quality outcomes. Performance Measure
Progress
Review completed and recommendations developed and implemented. Implementation is monitored and tracked.
Self-directed learning review conducted. Recommendations to be implemented in 2007.
1.3.3.6 Tauira survey policies and procedures are re-developed. Performance Measure
Progress
Surveys used to inform continuous improvement.
Tauira surveys conducted in Semester A and B. Survey results forwarded to Te Uepü Whakaü Kounga Ako and Te Uepü Marautanga for consideration.
Statement of Service Performance - 19
1.4 Capability Whainga 1.4.1 Te Wänanga o Aotearoa will assess and review capability to deliver quality educational services and research.
1.4.1.1 Adherence to QMS is embedded in employment contracts and measured in employee performance reviews. Performance Measure
Progress
Adherence to QMS monitored in employee performance appraisals.
QMS is addressed in individual and collective employment contracts. In specific cases where individuals are to achieve set standards, these have been embedded in employment contracts.
1.4.1.2 New programmes are enhanced by appropriate resourcing and staff. Performance Measure
Progress
Bi-annual monitoring and tracking is conducted.
New programme proposals are considered and approved by Te Puna Waihanga and Te Poari Mätauranga. Monitoring and tracking was not completed in 2006. In 2007, an evaluative report process will be initiated by Te Poari Mätauranga that requires quarterly reports regarding programme approval and accreditation. Reports will contain: • a summary of activities; • key findings; • identification of quality performance; • identification of risk; and • actions to mitigate risk.
1.4.1.3 An innovation pool is implemented to develop and pilot innovative ideas and thinking.
20 - Statement of Service Performance
Performance Measure
Progress
Process for developing and piloting best practice established and implemented.
Programme management and development expertise centralised as part of Te Anga Whakamua to increase quality of programme design, content and delivery. Quality gains have been achieved through determination of best wänanga practice and innovative thinking to reframe programme development processes. Improvements will be ongoing.
1.4.1.4 Business units are compliant with policies and procedures. Performance Measure
Progress
Audit programme implemented. Action plans developed for non-compliant units. Non-compliant units reviewed. 2007 audit programme developed.
2006 annual audit plan created. Disruption caused by Te Anga Whakamua prevented all planned 2006 audits being completed. 2005 residual non-compliances have been identified and transferred to the 2007 audit plan.
1.4.1.5 An internal Mäori Advisory Group is implemented to provide and advance leadership in, and ensure adherence to, tikanga and ähuatanga Mäori in all areas. Performance Measure
Progress
Terms of reference developed. Representatives identified and meetings initiated.
Terms of reference developed and key position objectives created. Mängai Matua (Senior Cultural Ambassador) and Mängai Kaupapa (Cultural Ambassador) positions created and filled.
Whainga 1.4.2 Te Wänanga o Aotearoa will build in-house capability in areas of core business.
1.4.2.1 The intellectual property (IP) of Te Wänanga o Aotearoa is protected. Performance Measure
Progress
Policy training sessions attended by all staff. IP policy under development. IP survey All IP detailed in a register. conducted. Database under development to store IP information. IP training sessions to follow in 2007.
1.4.2.2 Capability to deliver high-quality educational services and research is built and maintained. Performance Measure
Progress
Action plan implemented, monitored and tracked.
Research unit structure reviewed and merged with Te Kähui Rangahau (Research Ethics Committee). Research strategy under development to identify research priorities and to build and maintain high-quality research capability.
Statement of Service Performance - 21
1.5 Collaboration and Rationalisation Whainga 1.5.1 Te Wänanga o Aotearoa will enter into strategic alliances that provide a significant contribution to the kaupapa.
1.5.1.1 Active participation in World Indigenous Nations Higher Education Consortium (WINHEC) is maintained. Performance Measure
Progress
Membership is maintained. Conferences are Te Wänanga o Aotearoa represented by attended and contributed to. Trevor Moeke at the last WINHEC Annual General Meeting in Minnesota, USA, 2006.
1.5.1.2 Sub-contracting arrangements are congruent with core functions and activities. Performance Measure
Progress
Strategy monitored and tracked.
Sub-contracting review completed detailing areas for improvement. An action plan has been developed for consultation with TEC.
Whainga 1.5.2 Te Wänanga o Aotearoa will collaborate and cooperate with stakeholders in the development of programmes.
1.5.2.1 New relationships with indigenous peoples and other global communities are maintained and further developed. Performance Measure
Progress
Relationships from World Indigenous Peoples Conference on Education (WIPCE) 2005 conference developed, and mutually beneficial strategies for future relationships explored. Strategies, if any, implemented, tracked and monitored.
Relationships developed with the Americans for Indian Opportunity (AIO) organisation. Bentham Ohia (CEO of Te Wänanga o Aotearoa) is a member of the Board and attends annual meetings. Strategies include establishing a tauira exchange programme, research into the similarities between Mäori and American Indian culture and relationship-building visits between Te Wänanga o Aotearoa and the Jemez American Indian Tribe.
1.5.2.2 Strategic relationships with schools in the regions are maintained and further developed.
22 - Statement of Service Performance
Performance Measure
Progress
Recommendations from strategies for improvement implemented.
Relationships with schools initiated at a regional level. Discussions with schools focus on setting appropriate pathways into Te Wänanga o Aotearoa programmes.
Whainga 1.5.3 Te Wänanga o Aotearoa will explore opportunities for pathway and stair-casing arrangement with other TEIs.
1.5.3.1 Regional TEIs are engaged at regional campus level. Performance Measure
Progress
Collaborative partners identified. Alignment of study pathways investigated. Client markets defined.
Network of Provision project completed. Project examined territorial overlaps between TEIs and identified programme delivery and curriculum overlaps. The project will inform the collaboration process with other TEIs to explore pathway and stair-casing arrangements. Framework developed to establish relationship characteristics.
1.5.3.2 Tauira are informed of pathway and stair-casing opportunities within and across TEIs. Performance Measure
Progress
Pathway and stair-casing opportunities mapped. Map presented to tauira.
Discussions held with other wänanga regarding sharing of degree pathways between wänanga. Wänanga prospectus, Te Ara Wänanga, created collaboratively by the three wänanga (Te Ara Wänanga). 2007 Te Wänanga o Aotearoa prospectus created highlighting pathways within fields and knowledge areas.
1.5.3.3 A wide range of programme-relevant industry stakeholders are engaged by curriculum staff. Performance Measure
Progress
Current industry hui strategy reviewed and report created. Strategies to enhance and improve industry hui outcomes are developed. Mutually beneficial relationships for the provision of education negotiated.
Industry hui and collaboration strategy framework report created. Arrangements to deliver education to union members negotiated as part of a commitment to industry education initiatives. Consultative hui with ITOs held to re-establish contact and update ITOs on recent developments.
Statement of Service Performance - 23
2.0 Governance and Management 2.1 Governance Whainga 2.1.1 The organisational structure gives effect to the Charter and strategic direction.
2.1.1.1 The Kökiri Whakamua re-structure is aligned with the Charter and strategic direction. Performance Measure
Progress
Structure reviewed for alignment and effectiveness. Adjustment to organisational structure informed by the review.
Kökiri Whakamua process completed and findings used to inform development of the new structure implemented through the Te Anga Whakamua process.
2.1.1.2 Non-teaching activities are aligned with expectations of how a public institution should operate and function. Performance Measure
Progress
Non-teaching activities reviewed. Activities re-aligned to meet expectations.
A full review of non-teaching activities is scheduled in the 2007 audit plan.
Whainga 2.1.2 Te Wänanga o Aotearoa will manage changing level of activity in accordance with best management practice.
2.1.2.1 New initiatives are supported by business plans and contribute to the strategic direction of Te Wänanga o Aotearoa as outlined in the Charter. Performance Measure
Progress
Internal audit confirmation that new initiatives are supported by business plans.
Internal audits of Governance and Management, Programme Development, and Review and Delivery scheduled for 2007 will monitor engagement in business planning where substantial funding is requested.
2.1.2.2 Initiatives are supported by best financial management practice. Performance Measure
Progress
Implementation of plans monitored and tracked.
Action and risk management plan recommendations regarding best financial practice have been made and led to the implementation of: • a new electronic requisitioning system; • a new Chart of Accounts; and • consolidation of property portfolio. These projects are monitored and will be reviewed annually.
24 - Statement of Service Performance
2.1.2.3 Activities of Te Wänanga o Aotearoa are based on core educational delivery and research in Aotearoa. Performance Measure
Progress
Recommendations implemented.
Educational activities of Te Wänanga o Aotearoa are subject to regular review. In 2006 the “Delivery Mechanism and Self Directed Learning Review” made recommendations regarding ongoing strategy and implementation possibilities. Recommendations will be implemented in 2007. Quality Reinvestment Fund research projects initiated to further explore the nature of Kaupapa Mäori research with particular reference to the practices of Te Wänanga o Aotearoa.
Whainga 2.1.3 Te Wänanga o Aotearoa will comply with legislation and its goals and objectives through the implementation of a strategic reporting framework.
2.1.3.1 Business planning procedures are supported by a strategic reporting framework. Performance Measure
Progress
Framework developed and implemented.
Strategic Planning and Performance Framework Project initiated. Framework to be implemented by November 2007.
Whainga 2.1.4 Te Wänanga o Aotearoa will ensure strategic planning is integrated with operational systems, processes and controls.
2.1.4.1 Te Wänanga o Aotearoa operations are aligned to the Strategic Plan, Charter and Profile. Performance Measure
Progress
Business unit plans and business Business plans for each uepü constructed recovery plans monitored and reviewed. using terms of reference that relate directly to the organisational strategic plan. Monitoring ongoing. Review to be conducted at end of 2007.
Whainga 2.1.5 Te Mana Whakahaere will receive high-quality analysis and advice from sub-committees and management to improve the performance of the organisation.
Statement of Service Performance - 25
2.1.5.1 Reports from sub-committees and management to Te Mana Whakahaere are timely, informative and complete. Performance Measure
Progress
Policy and format for reporting to Te Mana Whakahaere established.
Format established and monthly reports received by Te Mana Whakahaere from sub-committees and the Pouhere. Strategic Planning and Performance Framework Project initiated. Framework to be implemented by November 2007.
Whainga 2.1.6 Te W채nanga o Aotearoa will define clear roles and accountabilities within and between Te Mana Whakahaere and the Pouhere.
2.1.6.1 Communication channels between Te Mana Whakahaere and Pouhere are defined and operate efficiently. Performance Measure
Progress
Reporting and communication reviewed Communication channels reviewed and established. and monitored. Monthly reports received by Te Mana Whakahaere from the Pouhere that include status of operations, potential risks and strategic considerations.
2.1.6.2 Regular performance appraisals of the Pouhere are conducted. Performance Measure
Progress
Half-yearly and annual performance reviews Executive Committee created to manage actioned. Pouhere performance reviews. Executive Committee terms of reference created. First six-monthly performance appraisal of the Pouhere conducted by the committee.
Whainga 2.1.7 Te W채nanga o Aotearoa will have robust processes and capability within governance and management structures.
2.1.7.1 The composition of Te Mana Whakahaere reflects the constitution, mission and Kaupapa of Te W채nanga o Aotearoa.
26 - Statement of Service Performance
Performance Measure
Progress
Appointments made as required.
All appointments made in alignment with the constitution of Te Mana Whakahaere and the mission and kaupapa of Te W채nanga o Aotearoa.
2.1.7.2 Sub-committees of Te Mana Whakahaere perform optimally and meet requirements. Performance Measure
Progress
Sub-committees terms of references reviewed and amended as required. Sub-committee membership reviewed and appointments made as required.
Review of the terms of reference and sub-committee membership conducted. Review findings passed to Te Mana Whakahaere in Feb 2007. Action to be taken where appropriate.
2.2 Staff Whainga 2.2.1 Te Wänanga o Aotearoa will operate a performance management system that ensures managers are accountable for achieving strategic planning objectives.
2.2.1.1 Management and staff create goals in line with strategic objectives. Performance Measure
Progress
Model operationalised.
Key performance indicators (KPIs) are included in uepü and wähanga business plans. Te Wänanga o Aotearoa KPIs are aligned with TES expectations in the Profile 2007-09. Performance objectives listed in business plans tied to strategic goals through the performance review process.
Whainga 2.2.2 Te Wänanga o Aotearoa will employ succession-planning tools to ensure the long-term success of the organisation and its employees.
2.2.2.1 An employee succession planning programme is developed. Performance Measure
Progress
Model operationalised for academic staff.
Initial planning phase for succession planning programme and capability improvement model commenced in 2006.
Model developed for non-academic staff.
Kaiako (academic staff) capability improvement project initiated. Kaihautü (non-academic) skills gap analysis for model completed and professional development plans formulated. Tier 2 manager (non-academic) skills gap analysis and succession planning to be completed 2007.
Statement of Service Performance - 27
Whainga 2.2.3 Te Wänanga o Aotearoa will recognise and reward employees for their contribution to the success of the organisation.
2.2.3.1 Salaries, benefits and performance reward systems are reviewed. Performance Measure
Progress
Systems evaluated and reviewed.
Collective staff salaries reviewed as part of the collective employment agreement negotiation process and Te Anga Whakamua. Non-collective staff salaries reviewed as part of Te Anga Whakamua. Benefits and rewards reviewed as part of Te Anga Whakamua and applied consistently to all staff.
Whainga 2.2.4 Te Wänanga o Aotearoa will develop the organisation’s training and professional development systems.
2.2.4.1 The kaupapa, vision and history of Te Wänanga o Aotearoa are included in induction training for new employees. Performance Measure
Progress
Induction training implemented for all new staff. Training delivered to existing staff.
Te Pünaha Arataki - Induction Handbook, including vision, Kaupapa and history, developed and approved for staff induction to Te Wänanga o Aotearoa. Induction training of new staff will commence in early 2007. Schedule prepared for ‘induction training’ for existing staff. Implementation will be completed in 2007.
2.2.4.2 Employees are supported to undertake formal education at degree, masters or doctorate level.
28 - Statement of Service Performance
Performance Measure
Progress
25% of staff either hold a degree or are working towards holding a degree.
27% of staff either hold a degree or are working towards holding a degree.
2.2.4.3 Professional development plans (PDPs) for all employees are aligned with the goals of Te Wänanga o Aotearoa. Performance Measure
Progress
Model implemented and operational.
PDP implementation plan developed. All managers to complete performance reviews for their staff by end of February 2007. Performance reviews to be collated by Human Resource Department in order to identify professional development plans for all staff. PDPs will be completed by the end of March 2007.
2.2.4.4 Staff satisfaction is monitored and tracked. Performance Measure
Progress
Feedback from staff satisfaction survey used to improve satisfaction with internal customer service. Levels of staff satisfaction improved.
Wänanga Ora survey undertaken in 2006. Survey findings will be collated to establish a baseline of staff satisfaction levels. Action plans will be drafted by Kaihautü by end of April 2007. Wänanga Ora will be repeated annually to track improvement.
Whainga 2.2.5 Te Wänanga o Aotearoa will establish a strong and capable senior management group through the Kökiri Whakamua project.
2.2.5.1 The mission and kaupapa of Te Wänanga o Aotearoa are reflected in the composition of senior management. Performance Measure
Progress
Annual performance reviews of senior management conducted. Recommendations of review implemented.
Skills gaps analysis of Kaihautü completed in late 2006. Performance reviews will be completed and assessments reviewed by March 2007. Senior managers will undergo skills gaps analysis and assessment before the end of 2007.
2.2.5.2 A management mentor scheme is established. Performance Measure
Progress
Mentors identified and assigned.
A management mentor scheme will be developed during 2007 once performance reviews and professional development plans have been completed.
Statement of Service Performance - 29
Whainga 2.2.6 Te Wänanga o Aotearoa will attract quality staff who have the potential to succeed within the organisation and the tertiary education sector.
2.2.6.1 A comprehensive recruitment strategy is developed and implemented. Performance Measure
Progress
Recruitment strategy redesigned and implemented.
Comprehensive, competency-based recruitment strategy developed for Te Anga Whakamua. Assessment and testing processes re-developed and implemented.
2.2.6.2 An Equal Employment Opportunity (EEO) policy is developed in line with the mission and kaupapa of Te Wänanga o Aotearoa and is implemented and maintained. Performance Measure
Progress
EEO policy implemented.
EEO policy developed, approved and published in Te Kaupapa Kounga. Procedures relating to the EEO Policy will be approved during April 2007. Implementation of EEO policy will follow approval of procedures.
3.0 Portfolio 3.1 Scope of Activities Whainga 3.1.1 The programme portfolio of Te Wänanga o Aotearoa will be strategically relevant and align with its core activities.
3.1.1.1 A strategic relevance review of all programmes is conducted and the portfolio of provision is congruent with the Charter of Te Wänanga o Aotearoa. Performance Measure
Progress
Programme provision schedule reviewed and adjusted if appropriate.
Portfolio of provision review completed as part of the development of the Profile 2007-2009.
Whainga 3.1.2 Te Wänanga o Aotearoa will offer programmes within its core capabilities and distinctive contribution.
30 - Statement of Service Performance
3.1.2.1 A range of foundation and introductory learning programmes (Levels 1-4) are provided for tauira. Performance Measure
Progress
At least one new programme added.
New programme development process extensively revised. As a result, no new programmes at foundation learning were approved in 2006.
3.1.2.2 Programmes are offered with on-line, distributed and other interactive methodologies. Performance Measure
Progress
Programmes that offer on-line, distributed and other interactive methodologies reviewed and consolidated.
Work on this indicator was not completed due to organisational restructuring in 2006. This activity has been deferred to 2008.
4.0 Academic 4.1 Teaching Whainga 4.1.1 Te Wänanga o Aotearoa will underpin teaching practices with Mäori epistemologies and values.
4.1.1.1 Training and development in Mäori pedagogy is provided for kaiako. Performance Measure
Progress
Teaching staff training needs analysis conducted. Training modules designed and developed.
Kaiako Capability and Improvement Project initiated. NZ Education Consultants contracted to revise tutorial performance and teaching standards: • Phase 1: Identification of teaching standards, skills and qualifications. • Phase 2: Identification of core kaiako skill and qualification requirements. • Phase 3: Requirements are matched with current kaiako skills and qualifications. Results will be forwarded to Human Resource Development for creation of professional development plans.
Statement of Service Performance - 31
4.1.1.2 Mäori preferred ways of teaching and learning are utilised by kaiako to enhance learning. Performance Measure
Progress
Baseline established for use of Mäori epistemologies and values in teaching practice.
Kaupapa Wänanga project initiated to draw together relationships between organisational values, education and teaching literacy with cultural literacy, and literacy of critical thinking. Project will lead to certification of kaiako through training processes that: • remain Mäori-centred; • are connected to its communities; • are inclusive of all peoples; • are dedicated to removing barriers to education by taking learning to the people, demystifying it, and reducing the cost; and • develop new more representative teaching methodologies.
Whainga 4.1.2 Te Wänanga o Aotearoa will build teaching capability through training and professional development.
4.1.2.1 A skills and qualification evaluation for kaiako and kaitiaki is implemented. Performance Measure
Progress
Skills and qualification evaluation implemented.
Kaiako Capability and Improvement Project to assess skills and qualifications initiated.
4.1.2.2 A training programme to address capability gaps and needs is developed and implemented. Performance Measure
Progress
Ongoing implementation
Kaiako Capability and Improvement Project to assess capability gaps and needs initiated.
4.1.2.3 Internal teaching and development is underpinned by Mäori pedagogy. Performance Measure
Progress
Baseline established. Module designed and Kaupapa Wänanga project initiated to developed. draw together relationships between organisational values, education and teaching literacy with cultural literacy. Kaupapa Wänanga will establish baselines and provide the foundation for module design and development in 2007.
32 - Statement of Service Performance
Whainga 4.1.3 Te Wänanga o Aotearoa will provide appropriate mechanisms to support teaching staff.
4.1.3.1 The efficacy of the teaching staff support mechanism is reviewed. Performance Measure
Progress
Support mechanisms identified and mechanism-specific evaluations created.
Support mechanisms identified. Regional Academic Advisors employed to support teaching staff. Additional teaching staff support includes: • tauira support process and procedure training; • ongoing consultation and review to facilitate continuous improvement; and • provision of tauira support resources. A rohe-specific teaching staff training schedule is set to provide training in 2007.
4.1.3.2 Retention, completion and graduation rates for all learners are maintained. Performance Measure
Progress
Retention Rate: 80%+ Completion Rate: 50%+ Graduation Rate: 36%
Rates achieved as follows: • Retention Rate: 74% • Completion Rate: 70% • Graduation Rate: 53% Work continues to improve achievement rates.
Whainga 4.1.4 Te Wänanga o Aotearoa will monitor staff performance through regular audit of teaching practices and through tauira satisfaction surveys.
4.1.4.1 A system for review of teaching practice capability is developed. Performance Measure
Progress
Completion and application of professional development monitored and tracked.
Kaiako Capability and Improvement Project to establish teaching practice benchmarks and provide professional development pathway. Human Resources Department tracks professional development progress.
Statement of Service Performance - 33
4.1.4.2 Tauira evaluation / satisfaction data is used to inform teaching practice capability. Performance Measure
Progress
Kaiako-specific evaluation form designed and developed.
Existing end-of-year Tauira Evaluation Surveys completed by tauira. Results distributed to Regional Academic Managers to develop action plans. Project initiated to re-develop Tauira Evaluation Survey. New tauira evaluation survey form will be implemented in April 2007.
4.1.4.3 Assessment of teaching practice is used to inform staff performance appraisals. Performance Measure
Progress
Job description-specific performance appraisal system developed.
Position descriptions written. Appraisal system developed to match staff performance against key position objectives.
Whainga 4.1.5 Te W채nanga o Aotearoa will ensure teaching practices are informed by stakeholders in the education system and industry.
4.1.5.1 Stakeholder networks to inform best practices in teaching are developed and maintained. Performance Measure
Progress
Te W채nanga o Aotearoa teaching practice needs identified and best practice requirements to fill gaps determined.
New Zealand Education Consultants (NZEC) contracted to develop best teaching practice for kaiako capability improvement project. (NZEC consultants have had extensive experience in the education sector).
4.2 Learning Whainga 4.2.1 Te W채nanga o Aotearoa will provide learning experiences that are tauira-centred and value previous experiences as a catalyst for further learning.
4.2.1.1 Curriculum documents provide a robust platform from which tauira-centred learning can occur.
34 - Statement of Service Performance
Performance Measure
Progress
Curriculum document templates developed and distributed.
New programme curriculum document template (PCD) developed. New template distributed to all programme developers.
4.2.1.2 Tauira evaluations / satisfaction data is used to inform curriculum development. Performance Measure
Progress
New tauira evaluation form designed and developed.
Project initiated to re-develop Tauira Evaluation Survey. New tauira evaluation survey form will be implemented in April 2007. Action plans created from suggestions in evaluation forms are being used to inform new programme development.
Whainga 4.2.2 Te W채nanga o Aotearoa will support learning through effective and appropriate programme design, teaching practices, resources, activities and assessment methodologies.
4.2.2.1 Programme development implemented.
and
programme
Performance Measure
review
policies
and
procedures
are
Progress
Reviewed policies and procedures Review of programme development and implemented and reflected in all programme programme review policies and processes documentation. completed. Procedures and training to support new policies will be completed in 2007.
4.2.2.2 Professional development policies and procedures for teaching staff are developed and implemented. Performance Measure
Progress
Professional development policies and procedures reviewed and redeveloped.
Employment relations policy, covering professional development, approved by Te Mana Whakahaere in late 2006. Performance review and internal training processes approved as part of this policy. Procedures and training to support new policies will be completed in 2007.
Whainga 4.2.3 Te W채nanga o Aotearoa will deliver all programmes in appropriate learning environments underpinned by Maori epistemologies with systems that support learning.
4.2.3.1 Learner and wh채nau support models are created to strengthen support functions for learners. Performance Measure
Progress
Tauira learning support systems reviewed.
Tauira learning support systems reviewed as part of Te Anga Whakamua. Tauira support services policies, processes and procedures developed and implemented.
Statement of Service Performance - 35
4.2.3.2 Retention and completion rates of supported tertiary tauira with disabilities (TSDs) are maximised. Performance Measure
Progress
TSD orientation initiated on campuses.
Relationships with external disability providers developed. TSD orientation information included in Te Manu (Student Handbook).
MOU established with disability providers. Notetaker training implemented.
Disability provider database established. Membership to ACHIEVE (disability services provider) maintained and a Disability Administrator National Committee Member appointed. MOUs with external disability providers to be established. Note-taker training programme developed and will be implemented in 2007.
Whainga 4.2.4 Te W채nanga o Aotearoa will provide learning experiences that provide employment and educational outcomes that are of value to tauira on their path through the education system and into employment.
4.2.4.1 Learner opinion surveys are commissioned in accordance with TEC guidelines. Performance Measure
Progress
Survey findings meet TEC requirements.
Te W채nanga o Aotearoa tauira evaluations and Graduate Destination Surveys conducted. TEC yet to release guidelines.
4.2.4.2 A centralised tauira support tracking system is developed and expanded. Performance Measure
Progress
Further refinements made and functions added. Supported tauira tracked and monitored to ensure 80% retention.
Tauira support module refinements awaiting confirmation in early 2007. Results of tracking of supported tauira to be submitted in the 2006 Special Supplementary Grant (SSG) Report.
4.2.4.3 A career planning function for tauira, in line with industry and community needs, is established. Performance Measure
Progress
Career pathways and enrolment process investigated.
Enrolment process investigation conducted. Report completed. A number of career resources were also developed. Regional Career Coordinators will be appointed in 2007. A full set of career resources and staff training will also be developed.
36 - Statement of Service Performance
4.2.4.4 Regional employment opportunities for Te Wänanga o Aotearoa graduates are monitored and tracked. Performance Measure
Progress
Tauira stair-casing pathways identified and Tauira pathways mapped and tauira reported. Baselines established and targets re-enrolment patterns tracked. set. 27% of tauira re-enrolled into other programmes inside Te Wänanga o Aotearoa. Graduate survey indicates a further 20% of graduates enrolled at another institution. 74% of graduates who responded to the survey had either found employment or became self employed.
4.2.4.5 Progression of tauira to further and higher qualifications within Te Wänanga o Aotearoa is monitored and tracked. Performance Measure
Progress
Enrolment process reviewed. Incorporation of career advice in enrolment process.
Enrolment process investigation conducted. Report completed. Regional Career Coordinators will be appointed in 2007 to provide career advice to tauira at enrolment.
4.3 Tauira Pathways Whainga 4.3.2 Te Wänanga o Aotearoa will identify and provide pathways to employment or higher level qualifications.
4.3.2.1 Industry relationships to inform programme development and pathway options are built and maintained. Performance Measure
Progress
Broad industry membership established. Industry participation in Te Wänanga o Aotearoa reference groups increased.
Relationships initiated with ITOs. Industry training strategy to be further develop in 2007. Kömiti Äwhina structure re-instated, including industry representation.
Statement of Service Performance - 37
4.3.2.2 Tauira pathways into external organisations are provided by developing programmes in agriculture and fisheries at NZQA levels three and four. Performance Measure
Progress
Relevant stakeholders consulted, including governing bodies, industry parent groups and companies.
This activity was reconsidered and deferred as it did not align with the current strategic direction of Te Wänanga o Aotearoa or changes to tertiary policy. Te Wänanga o Aotearoa does not envisage entry into these fields during 2007.
4.3.2.3 Programmes in teaching, social work, business and mätauranga Mäori are generally strengthened to ensure relevance to tauira and industry. Performance Measure
Progress
Relevant stakeholders consulted, including governing bodies, industry parent groups and companies.
Te Wänanga o Aotearoa continued to engage with and consult stakeholders in these areas throughout 2006 for input into programme development and review. Kömiti Äwhina structure re-instated with industry representation.
4.3.2.4 Tauira pathways into teaching, social work, business and mätauranga Mäori qualifications are strengthened by providing programmes at NZQA levels three and four. Performance Measure
Progress
Relevant stakeholders consulted, including governing bodies, industry parent groups and companies.
Stakeholder consultation gap analysis conducted. Planning implemented to address pathway gaps. Programme development plan will be completed in 2007.
4.3.2.5 Pathway rates of learners are maintained. Performance Measure
Progress
20%+ of tauira followed pathways to employment or further education.
27% of tauira enrolled in 2006 had pathwayed into further education. Graduate Destination Survey indicated a further 20% of graduates enrolled at another institution. 74% of graduates who responded to the survey had found employment or became self employed.
38 - Statement of Service Performance
Whainga 4.3.3 Te Wänanga o Aotearoa will provide career planning tools and facilities for tauira.
4.3.3.1 Career planning tools and facilities are developed and implemented. Performance Measure
Progress
Training to pouarataki (tauira support staff) implemented.
Careers planning training delivered to tauira support staff.
Advice and guidance provided to tauira by pouarataki. Tauira progress into further education and/or employment monitored.
Advice and guidance provided to tauira. Support interventions provided. Tauira progress into further education and/or employment monitored via the Te Wänanga o Aotearoa Alumni database.
4.4 Research Whainga 4.4.1 Te Wänanga o Aotearoa will support programmes and teaching with research-based knowledge.
4.4.1.1 Research is completed that contributes to the understanding and application of Mäori epistemologies for Te Wänanga o Aotearoa and its stakeholders. Performance Measure
Progress
Research scoped and topics defined.
Research scoped and topics defined. Funding obtained to create a research journal focussed on indigenous epistemologies and practice. The journal has now been written and will be published during 2007.
4.4.1.2 Research that informs programmes is completed. Performance Measure
Progress
Research projects that directly inform Te Wänanga o Aotearoa programmes are supported.
Research projects to inform programme development are shown in the Te Wänanga o Aotearoa Research Register.
Statement of Service Performance - 39
4.4.1.3 A comprehensive National Research Resource Register is established and maintained. Performance Measure
Progress
Te Whänau Manaaki Rangahau (Research Committee) baseline for a National Research Resource Register established.
Te Whänau Manaaki Rangahau replaced by Te Kähui Rangahau (Research Ethics Committee) Research database development project identified in the Quality Reinvestment Programme for approval in 2007.
Whainga 4.4.2 Te Wänanga o Aotearoa will consolidate and build research capacity.
4.4.2.1 A National Research Support Team continues to be supported. Performance Measure
Progress
An overarching research strategy is developed.
Research unit restructured as part of Te Anga Whakamua. Research capability will be rebuilt in 2007, including development of a research strategy.
4.4.2.2 An internal contestable research fund is established and maintained. Performance Measure
Progress
Guidelines developed for accessing an internal contestable research fund.
Te Kähui Rangahau (Research and Ethics Committee), in conjunction with a representative from Te Uepü Take Pütea, will approve guidelines for the application and approval of the internal contestable research fund in 2007.
Whainga 4.4.3 Te Wänanga o Aotearoa will increase external research funding and contracts to benefit the economy and the knowledge base of Aotearoa.
4.4.3.1 External funding opportunities are accessed by research staff. Performance Measure
Progress
Research staff supported to attend funding seminars. Details from seminars disseminated to staff engaged in research.
External funding obtained from Ngä Pae o te Maramatanga – the National Institute of Research Excellence for Mäori Development and Advancement. Research funding seminars attended by research staff. Seminar information, external funding details, internal contestable funds and policies are available to all staff on the internal website.
40 - Statement of Service Performance
Financial Overview - 2006 Financial Review Equivalent Full Time Students (EFTS) Our total EFTS achieved this year was 19,670. This was a decrease of 27.1% on the results for 2005. The main decrease in EFTS occurred in Te Ara Reo M채ori, Kiwi Ora, Mahi Ora and Greenlight programmes. These decreases were offset to some extent by increases in the enrolments for our Certificate in Small Business Management and Mauri Ora programmes.
Financial Position Net assets as at year end were $75 million, which is a decrease of $8 million on last year. The organisation sold four properties in the year - two properties in Te Awamutu, one in Taumarunui and a large site in Manukau. This was part of an ongoing rationalisation of owned and leased properties which was started in 2005. A Crown funding facility of $20 million was approved in 2005 to assist the organisation. During 2006 the facility was reduced to $10 million. Funds from this facility were only accessed once for short term working capital arrangements and were subsequently repaid into a treasury account which was set up under the control of the Crown Manager for these purposes.
down in capital expenditure. commensurate with budget.
Income The profile of our income streams is shown in the table below. Source
2006
2005
2004
2003
2002
Government Funding
90%
89%
89%
95%
94%
Student Fees
2%
3%
2%
2%
3%
Other (e.g. Interest, Joint Ventures)
8%
8%
9%
4%
3%
The income profile for 2006 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. Source
2006
2005
2004
2003
2002
Personnel Costs
46%
43%
35%
36%
37%
Resources/ Administration
37%
41%
43%
50%
37%
Trading
Overall Financial Performance The net deficit for 2006 was $16 million against a budgeted deficit of $14 million. During the year an extensive restructure was undertaken, which was funded through the sale of surplus assets and rationalisation of expenditure rather than through assistance from external sources. EFTS targets were achieved and our revenue from Government sources was $5.7 million better than budget. Other income included $4.3 million favourable to budget due to higher interest earnings and a $1 million gain from the revaluation of an investment property. This resulted in an overall favourable variance for revenue of $9.6 million. Personnel costs were $13 million over budget. This resulted, in part, from a number of one-off redundancy and other costs related to the restructure. Depreciation and amortisation charges were $2.5 million under budget, which was a reflection of the revaluation of assets that occurred in the two previous years along with a slow
Other expenditure was
-
-
-
-
11%
Property Costs
8%
8%
8%
8%
7%
Depreciation
9%
8%
5%
6%
8%
Impairment of Assets
-
-
9%
-
-
Personnel costs have continued to increase in relation to other costs. This is partly a result of the non-recurring costs associated with the restructure, but also reflects an overdue realignment of our employee remuneration levels to meet market and sector benchmarks.
Cash Flow The opening cash balance held at the organisation was $9.8 million. There was a negative net cash flow from operations of $2.8 million for the year as well as a negative net cash flow from financing activities of $4.7 million. Purchases of property, plant and equipment and programme development were $1.8 million offset by a positive cash flow from sales of property, plant and equipment of $5.0 million.
Financial Overview - 2006 - 41
Accordingly the total net decrease in cash balances was $4.3 million, giving a closing cash balance of $5.5 million. This amount included the $6 million treasury facility that was drawn-down at year end.
Summary Overall results for 2006 reflect the significant restructuring and change the organisation has been through. The deficit was largely budgeted for, with the eventual negative variance attributable to the additional time and costs absorbed to implement the restructure. These additional costs were offset, albeit not entirely, by higher levels of revenue from Government and other sources. By year end the organisation reached a stage whereby the restructure had been completed and most costs met. Our revenue streams had been stabilised along with associated “business as usual� expenditure. The statement of financial position now shows a solid repositioning of the organisation. Most unproductive assets have been disposed of; the indebtedness of the organisation has been reduced; and towards the end of the year improvements were becoming evident in the net working capital position of the organisation. All these factors indicate that 2007 and beyond will see continued positive progress in our financial performance and position.
42 - Financial Overview - 2006
Statement of Responsibility In the financial year ended 31 December, 2006, Te Mana Whakahaere (the Council) and the management of Te W채nanga 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 W채nanga o Aotearoa, the annual financial statements for the financial year ended 31 December, 2006 fairly reflect the financial position and operation of Te W채nanga o Aotearoa.
Richard Batley - Council Chairperson BMS (Waikato); CA 30 April, 2008
Bentham Ohia - Pouhere Dip Tchg; BA; Exec MBA 30 April, 2008
Brian Roche - Crown Manager BCA (Victoria); CA 30 April, 2008
Statement of Responsibility
- 43
AUDIT REPORT TO THE READERS OF TE WÄNANGA O AOTEAROA TE KURATINI O NGÄ WAKA AND GROUP’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2006 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, using the staff and resources of Audit New Zealand to carry out the audit of the financial statements and statement of service performance of the Wänanga and group, on his behalf, for the year ended 31 December 2006.
Qualified Opinion – Comparative Information The scope of the audit of the 2005 financial statements was limited because 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. Accordingly, we were unable to determine whether any adjustments were necessary to the 2005 financial statements of the Wänanga and group. Except for the effect of the matter noted above, which relates only to the comparative information, in our opinion the financial statements of the Wänanga and group on pages 46 to 70: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect: - the Wänanga and group’s financial position as at 31 December 2006; and - the results of operations and cash flows for the year ended on that date. The performance information of the Wänanga and group on pages 10 to 40 fairly reflects the service performance achievements measured against the performance targets adopted for the year ended on that date. The audit was completed on 30 April 2008, and is the date at which our qualified opinion is expressed. The basis of our opinion 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 comparative information. 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 statements and statement of service performance 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 and statement of service performance. We were unable to determine whether there were material misstatements in the previous year because the scope of our work was limited due to the limitation in evidence over the comparative information, as we referred to in our opinion. The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: • 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.
44 - Audit New Zealand
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance. We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We did not obtain all the information and explanations we required because of the limitation in evidence over the comparative information, as explained above
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 2006. They must also fairly reflect the results of operations and cash flows for the year ended on that date. The Council is also responsible for preparing performance information that fairly reflects the service performance achievements for the year ended 31 December 2006. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.
Independence When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. In addition to the audit, Audit New Zealand has carried out two assignments since 1 January 2006, 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 Wänanga or its subsidiary.
S B Lucy Audit New Zealand On behalf of the Auditor-General Hamilton, New Zealand Audit New Zealand - 45
Statement of Accounting Policies for the year ended 31 December, 2006
General Accounting Policies
recognised when eligibility has been established by the grantor.
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.
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 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.
Going Concern Reliance is placed on the fact that Te Wänanga o Aotearoa is a going concern and that sufficient funds are available or will become available to maintain current operations to at least their current level.
Accounts Receivable
D.
Property, Plant and Equipment Property, Plant and Equipment are initially recorded at cost within the Statement of Financial Position. Subsequent Expenditure
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.
Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:
A. Revenue 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 was undertaken which gave rise to the revenue. Government grants are
46 - Statement of Accounting Policies
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. Impairment 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. 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 and the revaluation surplus is transferred from the revaluation reserve directly to retained earnings.
G.
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.
Valuation Valuation of Land and Buildings was carried out by Jones Land Laselle Ltd (Registered Valuers) as at 31st March, 2006. Except for land, valuation of these assets is based on optimised depreciated replacement cost. The valuation of land is based on fair value for the existing use.
H.
Under Section 192(4) of Education Act 1989 TWOA is required to seek approval from the Ministry for the disposal of assets.
Depreciation Property, Plant and Equipment, with the exception of Land and Artwork (which are not depreciated) 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 are as follows:
F.
Buildings
1.33% - 33%
3 - 75 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
Library Books
10%
10 years
Library Subscriptions
50%
2 years
Leasehold Improvements
Over the period of the lease
All inter-company transactions, balances and unrealised profits are eliminated on consolidation.
I.
Operating Leases Operating lease rentals are recognised evenly over the expected period of benefit to Te W채nanga o Aotearoa.
J.
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.
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.
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.
Approval
E.
Goods and Services Tax
K.
Financial Instruments Financial Instruments carried on the Statement of Financial Position include cash and bank balances, investments, receivables, trade creditors and borrowings. These instruments are carried at their estimated fair value. The particular recognition methods adapted are disclosed in the individual policy statements associated with each item. Financial Instruments denominated in foreign currencies are translated at the rates of exchange ruling on the balance date.
Statement of Accounting Policies
- 47
L.
Trademarks
• 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.
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.
• 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.
M. Investments Investments are stated at the lower of cost and net realisable value.
N.
P.
Transactions denominated in foreign currencies are translated into the reporting currency using the exchange rate in effect at the transaction date.
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.
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.
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.
O.
Statement of Cash Flows The Statement of Cash Flows is prepared exclusive of GST, which is consistent with the method used in the Statement of Financial Performance.
Exchange differences on foreign currency balances are recognised in the statement of financial performance.
Q.
48 - Statement of Accounting Policies
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.
R.
Employee Entitlements Provision is made in the statement of financial performance and financial position for the benefits due to staff under existing contracts for annual, long service and gratuities leave, on the basis of actual entitlement.
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.
Foreign Currency Transactions
S.
Comparative Figures Comparative information has been reclassified where necessary to achieve consistency in disclosure with the current year.
Changes in Accounting Policies There has been a change in the Accounting Policy for Library Books. Previously Library Books were depreciated at 12.5% on a diminishing value basis. The policy has been changed to straight line depreciation over a life of 10 years for books and over a life of 2 years for subscriptions for magazines and journals depreciating. The impact of this change in accounting policy resulted in an increase in surplus for the year of $518,740 and an increase in the value of the Property, Plant and Equipment of $518,740. All other accounting policies have been applied on a basis consistent with the previous year.
Statement of Accounting Policies
- 49
Statement of Financial Performance for the year ended 31 December, 2006
Group Actual 31/12/2006
Group Budget 31/12/2006
$000
Notes
Parent Actual 31/12/2006
Parent Budget 31/12/2006
Group Actual 31/12/2005
Parent Actual 31/12/2005
$000
$000
$000
$000
$000
108,435
101,760
108,435
101,760
142,490
142,490
785
1,777
785
1,777
1,905
1,905
109,220
103,537
109,220
103,537
144,395
144,395
2,242
2,623
2,242
2,623
4,965
4,965
Trading Income
2,591
5,096
3,176
6,707
4,830
4,830
Interest
1,413
430
1,411
390
2,031
1,996
5
-
5
-
-
-
Gain on Investment Property
1,020
-
1,020
-
-
-
Other Income
4,757
-
4,731
-
5,495
4,703
Total Other Income
9,786
5,526
10,343
7,097
12,356
11,529
121,248
111,686
121,805
113,257
161,716
160,889
63,616
50,654
58,480
45,518
73,079
67,740
Consumable/Faculty Costs
49,922
49,700
64,079
63,801
71,286
83,040
Occupancy Property Costs
11,415
10,299
10,832
9,673
13,303
12,753
Interest Expense
510
747
510
747
375
375
Total Other Costs
61,847
60,746
3
75,421
74,221
84,964
96,168
Depreciation/Amortisation
11,772
14,253
12
10,122
12,573
13,329
11,834
137,235
125,653
144,023
132,312
171,372
175,742
$(15,987)
$(13,967)
$(22,218)
$(19,055)
$(9,656)
$(14,853)
Government Funding Ministry of Education Other Government Funding Total Government Funding
1
Student Tuition Fees Domestic
Other Income
Dividends
Total Income
4
Less Personnel Salaries & Associated Costs
2
Other Costs
Total Cost of Services Net Surplus (Deficit) for the Year
The notes to these accounts form an integral part of these statements and should be read in conjunction with them.
50 - Statement of Financial Performance
Statement of Movements in Equity for the year ended 31 December, 2006
Opening Public Equity Revaluation reserve
Group Actual 31/12/2006
Group Budget 31/12/2006
$000
$000
83,530
93,492
7,615
-
Notes
5
Parent Actual 31/12/2006
Parent Budget 31/12/2006
Group Actual 31/12/2005
Parent Actual 31/12/2005
$000
$000
$000
$000
62,223
70,766
93,186
77,076
7,615
-
-
-
Net Surplus/(Deficit) for the year
(15,987)
(13,967)
(22,218)
(19,055)
Public Equity as at 31 December, 2006
$75,158
$79,525
$47,620
$51,711
(9,656) $83,530
(14,853) $62,223
The notes to these accounts form an integral part of these statements and should be read in conjunction with them.
Statement of Movements in Equity
- 51
Statement of Financial Position as at 31 December, 2006
Parent Actual 31/12/2006
Parent Budget 31/12/2006
Group Actual 31/12/2005
Parent Actual 31/12/2005
$000
$000
$000
$000
$000
75,158
79,525
47,620
51,711
83,530
62,223
Cash at Bank
5,469
3,299
3,286
2,208
9,816
9,452
Accounts Receivable
4,518
8,784
6
3,340
7,112
6,663
5,335
35
100
7
35
100
468
468
2,761
5,802
8
954
4,327
6,294
5,114
12,783
17,985
7,615
13,747
23,241
20,369
Accounts Payable
6,720
4,262
24,957
23,147
9,963
22,641
Crown Loan
6,000
6,000 16, 19
6,000
6,000
6,000
6,000
Public Equity
Group Actual 31/12/2006
Group Budget 31/12/2006
$000
Notes
Current Assets
Prepayments Inventory Total Current Assets Less Current Liabilities
Current Portion of Term Liabilities
9
794
-
17
794
-
44
44
3,161
795
10
2,998
641
4,315
4,134
Total Current Liabilities
16,675
11,057
34,749
29,788
20,322
32,819
Working Capital Surplus/(Deficit)
(3,892)
6,928
(27,134)
(16,041)
2,919
(12,450)
Property, Plant and Equipment
68,954
65,626
11
66,480
63,333
80,283
76,838
Programme Development
4,531
4,592
13
2,709
2,038
3,164
670
Investment Property
6,800
-
6,800
-
-
-
5
-
5
-
5
5
Employee Entitlements
Other Non Current Assets
Trademark Investment in MO1 Limited
-
-
1
1
-
1
Advance to Aotearoa Institute
-
3,115
-
3,116
3,115
3,115
11,336
7,707
9,515
5,155
6,284
3,791
Mortgage
721
736
721
736
706
706
Aotearoa Institute
520
-
520
-
5,250
5,250
1,241
736
1,241
736
5,956
5,956
$75,158
$79,525
$47,620
$51,711
$83,530
$62,223
Total Other Non Current Assets
14
Term Liabilities
Total Term Liabilities Net Assets
17
The notes to these accounts form an integral part of these statements and should be read in conjunction with them.
52 - Statement of Financial Position
Richard Batley, Council Chair BMS (Waikato); CA 30 April, 2008
Bentham Ohia, Pouhere/CEO, appointed May 2006 Dip Tchg; BA; Exec MBA 30 April, 2008
Brian Roche, Crown Manager BCA (Victoria); CA 30 April, 2008
for and on behalf of the Council
Statement of Cashflows for the year ended 31 December, 2006
Group Actual 31/12/2006
Group Budget 31/12/2006
$000
Operating Income Interest Received
Notes
Parent Actual 31/12/2006
Parent Budget 31/12/2006
Group Actual 31/12/2005
Parent Actual 31/12/2005
$000
$000
$000
$000
$000
119,891
125,909
128,678
124,541
171,893
155,792
422
280
396
240
2,031
1,996
120,313
126,189
129,074
124,781
173,924
157,788
Employees
63,616
51,680
58,480
51,529
178,850
160,046
Suppliers
59,036
73,759
74,730
73,543
-
-
510
747
510
747
375
375
123,162
126,186
133,720
125,819
179,225
160,421
Cash Flows from Operating Activities Cash was provided from:
Cash was applied to:
Interest expense Net Cash Flows From Operating Activities
(2,849)
3
15
(4,646)
(1,038)
(5,301)
(2,633)
Cash Flows from Investing Activities Cash was provided from: Sale of Property, Plant and Equipment
5,049
7,200
4,988
7,200
1,621
1,498
5,049
7,200
4,988
7,200
1,621
1,498
1,487
5,940
1,487
5,540
6,902
6,519
304
-
265
-
254
-
1,791
5,940
1,752
5,540
7,156
6,519
3,258
1,260
3,236
1,660
(5,535)
(5,021)
-
-
-
-
12,000
12,000
-
-
-
-
12,000
12,000
4,730
-
4,730
-
-
-
15
14
15
14
6,014
6,014
Cash was applied to: Purchase of Property, Plant and Equipment Programme Development Net Cash Flows From Investing Activities
Cash Flows from Financing Activities Cash was provided from: Crown Loan Cash was applied to: Mortgage Aotearoa Institute Settlement of Debt
4,745
14
4,745
14
6,014
6,014
Net Cash Flows From Financing Activities
(4,745)
(14)
(4,745)
(14)
5,986
5,986
Net (Decrease) / Increase In Cash Held
(4,336)
1,249
(6,155)
608
(4,850)
(1,668)
9,816
2,050
9,452
1,600
14,666
11,120
-
-
-
$2,208
$9,816
$9,452
Opening Balance 1 January, 2006 Gain (Loss) on Foreign Exchange Closing Balance 31 December, 2006
(11) $5,469
$3,299
(11) $3,286
The notes to these accounts form an integral part of these statements and should be read in conjunction with them. Statement of Cashflows
- 53
Financial Ratios for the year ended 31 December, 2006
2006 Group
2006 Parent
2005 Group
2005 Parent
2004 Group
2004 Parent
2003 Group
2003 Parent
$000
$000
$000
$000
$000
$000
$000
$000
5,469
3,286
9,816
9,452
14,666
11,120
37,377
33,335
Current Liabilities
16,675
34,749
20,322
32,819
32,071
32,728
14,667
16,457
Ratio
0.33:1
0.09:1
0.48:1
0.29:1
0.46:1
0.34:1
2.55:1
2.02:1
Public Equity
75,158
47,620
83,530
62,223
93,186
77,076
Total Assets
93,073
83,610 109,808 100,998 131,227
Ratio
0.80:1
0.56:1
0.77:1
0.63:1
0.72:1
0.68:1
0.89:1
0.86:1
Total Liabilities
17,916
35,990
26,278
38,775
38,041
38,698
14,679
16,469
Public Equity
75,158
47,620
83,530
62,223
93,186
77,076
Exposure to Liabilities
0.24:1
0.77:1
0.30:1
0.58:1
0.40:1
0.47:1
75,158
47,620
83,530
62,223
93,186
77,076
Short Term Liquidity Current Monetary Assets
Public Equity to Total Assets Ratio 116,769 100,817
115,774 131,448
117,286
Exposure to Liabilities 116,769 100,817 0.13:1
0.16:1
Change in Financial Value Net Assets Change in Financial Value
-10.02% -23.47% -10.82% -19.54% -18.20% -18.22%
116,769 100,817 49.00%
40.00%
33,247
24,003
115,774 131,448
117,286
Return on Assets Net Result for the Period Total Assets Percentage
54 - Financial Ratios
(15,987) (22,218) 75,158
(9,656) (14,853) (23,583) (23,741)
47,620 109,808 100,998 131,227
-21.27% -46.66%
-8.55% -14.52% -15.92% -18.35%
25.29%
20.47%
Notes to the Financial Statements for the year ended 31 December, 2006
1. Government Funding Te W채nanga o Aotearoa is a Crown recognised tertiary institution. The major source of funding is from the Ministry of Education.
2. Council Remuneration 2006 Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $100,090 distributed as follows: Craig Coxhead - Council
$
46,135
Lloyd Anderson - Council/Audit & Risk
$
5,355
Richard Batley - Council/Audit & Risk
$
7,650
Tania Hodges - Council/Audit & Risk
$
4,335
Hoturoa Barclay-Kerr - Council
$
2,295
Neville Baker - Council
$
1,275
Jo Davey - Council
$
255
Richard Jones - Audit & Risk
$
12,150
Matt McCarten - Council
$
3,570
Parek채whia McLean - Council
$
2,805
Hinerangi Raumati - Audit & Risk
$
10,800
Tamati Reedy - Council
$
765
Lisa Tipping - Audit & Risk
$
2,700
$
16,500
Directors Fees paid by MO1 Limited of $53,167 were distributed as follows: Richard Batley
$
36,667
Lloyd Anderson
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.
3. Statutory Disclosures Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
510
510
375
375
For Audit Services
350
310
495
405
For Other Services
1
1
-
-
Provision for Doubtful Debts
867
867
579
579
Operating Lease Expense
288
288
5,554
5,554
50
50
1,429
1,429
Interest Expense Fees Paid to Auditors
Bad Debts Written Off Koha Amortisation of Programme Development Costs (note 13) Depreciation (note 12) Net Loss on Sale of Fixed Assets (note 12) Rent
71
67
176
161
1,063
226
608
152
10,556
9,770
11,729
10,690
153
126
992
992
1,332
1,332
1,139
1,139
Notes to the Financial Statements
- 55
4. Other Income Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
3,901
3,901
4,385
3,696
Rent Received
288
288
357
351
Other Income
568
542
753
656
4,757
4,731
5,495
4,703
Contract Income
Total Other Income
Contract income relates to licences and subcontracting arrangements that Te Wänanga o Aotearoa has with other institutions.
5. Equity Disclosure Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
General Equity
31,839
10,532
41,495
25,385
Crown Capital
51,691
51,691
51,691
51,691
Revaluation Reserve Net Surplus/ Deficit for the Year Closing Public Equity
7,615
7,615
(15,987)
(22,218)
(9,656)
-
(14,853)
-
75,158
47,620
83,530
62,223
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.
6. Accounts Receivable Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
Student Fee Debtors
464
464
191
191
Ministry of Education
2,774
2,774
355
355
Intercompany - MO1 Limited
-
-
-
336
Oma Investments Limited
-
-
2,268
2,268
2,147
969
4,652
2,764
5,385
4,207
7,466
5,914
General Debtors Less Provision for Doubtful Debts
867
867
803
579
4,518
3,340
6,663
5,335
Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
-
-
94
94
Other
35
35
374
374
Total Prepayments
35
35
468
468
Total Accounts Receivable
7. Accounts Receivable
VLC Computers
56 - Notes to the Financial Statements
8. Inventory In December 2006 $2.011m of stock was written off. This was in respect of obsolete stock and Greenlight stock.
9. Accounts Payable
Goods and Services Tax Accrual Intercompany - MO1 Limited PAYE
Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
315
352
370
73
-
19,085
-
13,656
569
520
619
578
Sundry Creditors
5,836
5,000
8,974
8,334
Total Accounts Payable
6,720
24,957
9,963
22,641
Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
813
763
29
29
Accrued Holiday Pay
2,348
2,235
4,286
4,105
Total Provision for Employee Entitlements
3,161
2,998
4,315
4,134
10. Provision for Employee Entitlements
Accrued Salaries
Notes to the Financial Statements
- 57
Balance @ 01 Jan 06
58 - Notes to the Financial Statements
111,729
21
WIP
Total PPE
1,198
VLC
967
Artwork
3,422
1,214
Waka
Library Books
9,265
14,057
Computers
Motor Vehicles
13,301
Equipment
7,627
10,301
Leasehold Imp
Furniture & Fittings
43,440
1,725
616
272
200
-
-
6
51
461
99
4
16
Revaluation
Buildings
5,813
-
-
-
-
-
-
-
-
-
-
(1,025)
Disposals (5,041)
(56)
-
-
-
-
(1,544)
(1)
(154)
(166)
(99)
(2,174)
(847)
Reclassification
6,838
581
1,470
3,622
967
1,214
7,727
7,219
14,364
12,687
10,206
36,171
11,794
(6,204) 108,022
-
-
-
-
-
-
(458)
-
(547)
-
(4,086)
(1,113)
Balance @ 31 Dec 06 (32,048)
-
(220)
(1,050)
-
(242)
(4,743)
(4,207)
(9,182)
(6,594)
(3,475)
(2,335)
-
$000
Balance @ 01 Jan 06
$000
(10,556)
-
(599)
38
-
(110)
(1,638)
(1,281)
(2,386)
(2,322)
(1,116)
(1,142)
-
$000
Depreciation
$000
1,251
-
-
-
-
-
1,065
-
2
34
11
139
-
$000
Disposals
$000
1,802
-
-
-
-
-
-
-
-
-
-
1,802
-
$000
Revaluation
$000
483
-
-
-
-
-
-
137
-
164
-
182
-
$000
Reclassification
-
$000
(39,068)
-
(819)
(1,012)
-
(352)
(5,316)
(5,351)
(11,566)
(8,718)
(4,580)
(1,354)
-
$000
Accumulated Depreciation & Impairment Losses
Balance @ 31 Dec 06
6,916
Additions
$000
Cost / Revaluation
Net Book Value
79,681
21
978
2,372
967
972
4,522
3,420
4,875
6,707
6,826
41,105
6,916
$000
Balance @ 01 Jan 06
Land
Group - 2006
11. Property, Plant and Equipment (PPE)
68,954
581
651
2,610
967
862
2,411
1,868
2,798
3,969
5,626
34,817
11,794
$000
Balance @ 31 Dec 06
Balance @ 01 Jan 06
106,137
21
WIP
Total PPE
1,198
VLC
967
Artwork
3,422
1,214
Waka
Library Books
8,493
12,421
Computers
Motor Vehicles
12,175
Equipment
7,418
10,260
Leasehold Imp
Furniture & Fittings
41,632
1,535
616
272
200
-
-
-
51
283
99
-
14
Revaluation
Buildings
5,813
-
-
-
-
-
-
-
-
-
-
(1,025)
Disposals (4,747)
(56)
-
-
-
-
(1,413)
(1)
(4)
(159)
(95)
(2,172)
(847)
Reclassification
6,838
581
1,470
3,622
967
1,214
7,080
7,010
12,700
11,568
10,165
34,363
11,794
(6,204) 102,534
-
-
-
-
-
-
(458)
-
(547)
-
(4,086)
(1,113)
Balance @ 31 Dec 06 (29,736)
-
(220)
(1,050)
-
(242)
(4,345)
(4,082)
(8,223)
(6,052)
(3,456)
(2,066)
-
$000
Balance @ 01 Jan 06
$000
(9,770)
-
(599)
38
-
(110)
(1,507)
(1,241)
(2,106)
(2,113)
(1,109)
(1,023)
-
$000
Depreciation
$000
1,167
-
-
-
-
-
996
-
3
19
11
138
-
$000
Disposals
$000
1,802
-
-
-
-
-
-
-
-
-
-
1,802
-
$000
Revaluation
$000
483
-
-
-
-
-
-
137
-
164
-
182
-
$000
Reclassification
-
$000
(36,054)
-
(819)
(1,012)
-
(352)
(4,856)
(5,186)
(10,326)
(7,982)
(4,554)
(967)
-
$000
Accumulated Depreciation & Impairment Losses
Balance @ 31 Dec 06
6,916
Additions
$000
Cost / Revaluation
Net Book Value
76,401
21
978
2,372
967
972
4,148
3,336
4,198
6,123
6,804
39,566
6,916
$000
Balance @ 01 Jan 06
Land
Parent - 2006
66,480
581
651
2,610
967
862
2,224
1,824
2,374
3,586
5,611
33,396
11,794
$000
Balance @ 31 Dec 06
Notes to the Financial Statements
- 59
Balance @ 01 Jan 05
60 - Notes to the Financial Statements
6,871
9,394
Furniture & Fittings
Motor Vehicles
107,892
3,072
WIP
Total PPE
2,860
Library Books
912
13,011
Computers
Artwork
12,232
Equipment
614
10,996
Leasehold Imp
Waka
40,095
Buildings
178
12,430
2,540
562
55
-
176
787
2,569
1,227
538
3,976
-
Revaluation
Leasehold Land Imp
600
-
-
-
600
-
-
-
-
-
-
-
Disposals
-
(8,698)
(5,522)
-
-
-
(305)
(31)
(77)
(158)
(97)
(1,767)
-
(741)
Balance @ 31 Dec 05 112,046
90
3,422
967
1,214
9,265
7,627
15,503
13,301
11,437
42,304
-
6,916
(20,229)
-
(585)
-
(150)
(3,060)
(2,782)
(5,769)
(4,090)
(2,173)
(1,565)
(55)
-
$000
Balance @ 01 Jan 05
$000
(11,729)
-
(465)
-
(92)
(1,678)
(1,426)
(3,458)
(2,515)
(1,101)
(994)
-
-
$000
Depreciation
$000
140
-
-
-
-
(5)
1
(39)
11
33
139
-
-
$000
Disposals
$000
-
-
-
-
-
-
-
-
-
-
-
-
-
$000
Impairment losses
-
$000
Accumulated Depreciation & Impairment Losses
(31,763)
-
(1,050)
-
(242)
(4,743)
(4,207)
(9,266)
(6,594)
(3,241)
(2,420)
-
-
$000
Balance @ 31 Dec 05
7,657
Additions / Reclassifications
$000
Cost / Revaluation
87,663
3,072
2,275
912
464
6,334
4,089
7,242
8,142
8,823
38,530
123
7,657
$000
80,283
90
2,372
967
972
4,522
3,420
6,237
6,707
8,196
39,884
-
6,916
$000
Net Book Value
Balance @ 01 Jan 05
Land
Group - 2005
Balance @ 31 Dec 05
Balance @ 01 Jan 05
11,049
11,556
6,676
8,702
Equipment
Computers
Furniture & Fittings
Motor Vehicles
Notes to the Financial Statements
11,701
2,540
561
55
-
96
745
2,100
1,227
532
3,845
600
-
-
-
600
-
-
-
-
-
-
(8,272)
(5,522)
-
-
-
(305)
(3)
(38)
(101)
(55)
(1,507)
(741)
106,205
90
3,422
967
1,214
8,493
7,418
13,618
12,175
11,396
40,496
6,916
(18,676)
-
(585)
-
(150)
(2,811)
(2,698)
(5,201)
(3,755)
(2,137)
(1,339)
(811)
-
$000
(10,690)
-
(465)
-
(92)
(1,534)
(1,384)
(3,022)
(2,297)
(1,085)
Land and Buildings were valued by Jones Lang Laselle Ltd (Registered Valuers), as at 31st March, 2006.
102,176
3,072
WIP
Total PPE
2,861
912
Library Books
Artwork
614
10,919
Leasehold Imp
Waka
38,158
Revaluation
Buildings
Disposals
-
Balance @ 31 Dec 05 $000
Balance @ 01 Jan 05
$000
Depreciation
$000
-
-
-
-
-
-
-
-
-
-
-
-
$000
Disposals
$000
-
-
-
-
-
-
-
-
-
-
-
-
$000
Impairment losses
-
$000
Accumulated Depreciation & Impairment Losses
(29,366)
-
(1,050)
-
(242)
(4,345)
(4,082)
(8,223)
(6,052)
(3,222)
(2,150)
-
$000
Balance @ 31 Dec 05
7,657
Additions / Reclassifications
$000
Cost / Revaluation
83,500
3,072
2,276
912
464
5,891
3,978
6,355
7,294
8,782
36,819
7,657
$000
76,839
90
2,372
967
972
4,148
3,336
5,395
6,123
8,174
38,346
6,916
$000
Net Book Value
Balance @ 01 Jan 05
Land
Parent - 2005
Balance @ 31 Dec 05
- 61
12. Depreciation Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
Buildings
1,142
1,023
994
811
Leasehold Improvement
1,116
1,109
1,101
1,085
Equipment
2,322
2,113
2,515
2,297
Computers
2,386
2,106
3,458
3,022
Furniture & Fittings
1,281
1,241
1,426
1,384
Motor Vehicles
1,638
1,507
1,678
1,534
Waka
110
110
92
92
Library
(38)
(38)
465
465
Loss on Sale
153
126
992
992
VLC
599
599
-
-
1,063
226
608
152
11,772
10,122
13,329
11,834
Group 2006 $000
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
3,164
670
3,518
822
2,430
2,265
Amortisation (note 13) Total Depreciation
13. Programme Development
Balance at Beginning of Year Capitalisation During the Year Amortisation (note 12) Balance at End of Year
(1,063) 4,531
(226) 2,709
254 (608) 3,164
(152) 670
Programme development costs were incurred in developing Lifeworks, Mauri Ora programmes, Certificate in Small Business Management, First Steps to Business and Te Ara Reo M채ori.
14. 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.
62 - Notes to the Financial Statements
15. Reconciliation of Year to Date Surplus to Operating Activities Cashflow Group 2006 $000
Year to Date Surplus/(Deficit)
Parent 2006 $000
Group 2005 $000
Parent 2005 $000
(15,987)
(22,218)
(9,656)
(14,853)
Add Depreciation/Losses on Disposal
11,772
10,122
13,329
11,834
Add Investment Property
(1,020)
(1,020)
-
-
Add Loss of Foreign Exchange
11
11
-
-
(5,224)
(13,105)
3,673
(3,018)
(3,193)
1,936
3,929
1,418
433
1,819
1,819
Add Movements in Working Capital: Debtors Prepayments
433
Inventory
3,533
4,160
3,087
3,057
Creditors
2,735
3,066
(18,450)
(6,438)
Employees
(1,133)
(1,136)
Cash Flows From Operating Activities
(2,849)
(4,646)
641 (5,301)
530 (2,633)
16. Financial Instruments Financial instruments which may subject Te Wänanga o Aotearoa to interest rate risk relate to overdrawn bank balances. To limit the amount of interest rate risk exposure, Te Wänanga o Aotearoa has provided to their bankers the right of offset between credit funds held by the bank against any overdrawn balances. In 2006 Te Wänanga o Aotearoa had a US$ Account with a closing balance of US$241,749 (2005 - $231,902). The exchange rate as at 31 December, 2006 of 0.7137 (2005 - 0.6915) was applied. The $US bank account was closed in October 2007. This account was in breach of the Education Act 1989. The Crown provided the institution with a $20 million funding facility in early 2005 to enable the institution to meet 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. In May 2005 the organisation drew down $12 million of the $20 million facility. In July 2005 $6 million of this facility was repaid to the Crown. The facility was reduced from $20 million to $10 million in 2006 and expired on 30 November, 2007. The interest rate is fixed at 8%. The interest is payable monthly. BNZ have committed a cash advance facility of $10 million to Te Wänanga o Aotearoa. This was due to be received in January 2008; however, it cannot be used until the 2006 accounts are signed.
17. 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, Mängere. 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. As at 31 December, 2006 the current mortgage liability is $14,804. At this point no Ministerial approval for this loan has been obtained. This is in breach of s192 of the Education Act 1998. The mortgage was repaid on 17th September, 2007.
Notes to the Financial Statements
- 63
18. Early Learning Centres
During the 2006 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 2006
2005
244,000
179,086
Low Socio Economic
4,233
3,433
Special Needs
3,704
3,004
Language & Kaupapa
1,800
1,800
MOE Funding Received Bulk Funding Incentive Funding
Training
3,762
2,165
$257,499
$189,488
257,499
189,488
$257,499
$189,488
2006
2005
106,039
106,903
Low Socio Economic
2,159
1,815
Special Needs
1,889
1,588
Training
7,837
2,734
$117,924
$113,040
117,924
113,040
$117,924
$113,040
TOTAL MOE Funding Received Funds applied to: Salaries
Raroera Te K채kano
MOE Funding Received Bulk Funding Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries
64 - Notes to the Financial Statements
Manukau Te K채kano 2006
2005
91,674
149,993
Low Socio Economic
3,266
5,551
Special Needs
1,653
2,791
750
1,800
$97,343
$160,135
97,343
160,135
$97,343
$160,135
2006
2005
144,258
109,516
Low Socio Economic
7,386
7,330
Special Needs
2,902
2,880
Language & Kaupapa
1,800
1,800
Training
3,762
2,734
$160,108
$124,260
160,108
124,260
$160,108
$124,260
2006
2005
120,012
98,105
Low Socio Economic
4,439
4,627
Special Needs
2,219
3,545
Language & Kaupapa
1,800
1,800
Training
6,583
2,734
$135,053
$110,811
135,053
110,811
$135,053
$110,811
MOE Funding Received Bulk Funding Incentive Funding
Language & Kaupapa TOTAL MOE Funding Received Funds applied to: Salaries
Te Rau Oriwa
MOE Funding Received Bulk Funding Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries
Raroera Te Pu채wai
MOE Funding Received Bulk Funding Incentive Funding
TOTAL MOE Funding Received Funds applied to: Salaries
Notes to the Financial Statements
- 65
Building Programme Grants 2006
2005
Unspent Building Programme Grants as at 01-01-06
-
836,347
Additional Grants Received
-
-
Repayment of Building Grant to Ministry
-
(836,347)
Building Grants Applied to the Building Programme
-
-
Unspent Building Programme Grants as at 31-12-06
-
-
19. Crown Loan 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 current facility of $6 million was repaid by 30 November, 2007. The funds are currently held in an interest bearing account controlled by the Crown Manager. It has not been necessary to draw down on these funds during the course of the year. The net cost of the interest on the loan was $479,998 in 2006 (2005 - $101,549).
20. Related Party Transactions 20.1 Unite Incorporated Unite Incorporated is a trade union with a presence throughout a number of main centres in New Zealand. The Secretary of Unite Incorporated is Matt McCarten who was a member of the Council of Te Wänanga o Aotearoa in 2006. 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. Under the agreement, Te Wänanga o Aotearoa pays an amount of $620 per enrolment to Unite Incorporated to cover the following, inter alia: • marketing, advertising, enrolment and other administrative services; • provision of serviced premises in central Auckland inclusive of all outgoings, security and reception (These premises are leased by Unite Incorporated from an independent third party although the lease is guaranteed by the Aotearoa Institute); • dual branding of the premises; • full access to the premises for students; and • ongoing pastoral care for students. 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. The first enrolments under this pilot project were taken in November 2006 and further opportunities under this 66 - Notes to the Financial Statements
relationship are currently being investigated. During 2006 $120,095 was paid to Unite under this agreement.
20.2 Aotearoa Institute Te Kuratini o Ngä Waka Trust Board (Aotearoa Institute) 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. » Governance There is now no common membership of the two Boards. 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. Kingi Wetere is a member of the Board of Aotearoa Institute. (2005 - The governing bodies of Aotearoa Institute and Te Wänanga o Aotearoa had two members in common. There were also five senior employees of Te Wänanga o Aotearoa on the Board of Aotearoa Institute. Aotearoa Institute’s financial operations are, however, separate and distinct to that of Te Wänanga o Aotearoa. All material transactions between the two entities are charged at a fair market rate.) » Property Aotearoa Institute continues to lease buildings to Te Wänanga o Aotearoa at commercial rental rates however this is no longer a related party transaction (2005 - $1.7 million). Te Wänanga o Aotearoa previously had a claim against Aotearoa Institute for leasehold improvements on the properties leased from Aotearoa Institute. This matter was settled as part of the December 2006 agreement between the parties (refer below). » Advances During 2001 an advance of $3.1 million was made to Aotearoa Institute. Repayment of this advance was settled as part of the December 2006 agreement between the parties (refer below). At the date of signing these financial statements there were no further amounts outstanding. » 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. As part of the settlement the following occurred: • 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. • All amounts due to Te Wänanga o Aotearoa with respect to the trade rebates, loans and advances were extinguished. • 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 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. Notes to the Financial Statements
- 67
• 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. 20.3 OMA Investments Limited (GTL Investments Limited since 4 April, 2006) Te Wänanga o Aotearoa and MO1 Limited continue to purchase student learning resources from OMA Investments Limited, which is a fully owned subsidiary of Aotearoa Institute. OMA Investments Limited also continues to manage and distribute the inventory on behalf of Te Wänanga o Aotearoa and MO1 Limited. This is no longer a related party (2005 - $1.527 million including GST). (2005 - Rongo Wetere was Tumuaki of Te Wänanga o Aotearoa until December 2005. William Wetere and Kingi Wetere are sons of Rongo Wetere. Rongo Wetere, William Wetere and Kingi Wetere were all, at one time, directors of both OMA Investments Limited and MO1 Limited. (2005 - Kingi Wetere was in a senior position in Te Wänanga o Aotearoa until April 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. In late 2004 OMA Investments Limited issued Te Wänanga o Aotearoa with a trade rebate of $3.2 million including GST. Repayment of this rebate has now been effected either through subsequent transactions or as part of the December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa Institute (refer Note 21.2).
20.4 Glenview International Hotel and Conference Centre Limited The Glenview International Hotel and Conference Centre Limited (“the company”) is a full owned subsidiary of Aotearoa Institute. The company leases from Te Wänanga o Aotearoa the accommodation and conference areas of the Glenview complex. The company is no longer a related party. 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).
20.5 Ora Limited Ora Limited is no longer a related party. During 2006 Te Wänanga o Aotearoa paid $13.145 million to Ora 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 Te Wänanga o Aotearoa $2.3 million (excluding GST). This amount was repaid by September 2007. Susan Cullen is the sister of Kingi Wetere. Ora Limited has no dealings with MO1 Limited. (2005- 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 (excluding GST) to Ora Limited for the provision of this programme.)
20.6 Wairau Property Developments Limited Wairau Property Developments Limited is no longer a related party however Te Wänanga o Aotearoa continued to lease property from them during 2006. All leases between the two parties were terminated in 2007. (2005 - $104,965). (Susan Cullen is the sole shareholder and one of the directors of Wairau Property Developments Limited.)
20.7 Power Chill NZ Limited In 2006 Power Chill NZ Limited was no longer a related party; however, Power Chill NZ Limited continued to 68 - Notes to the Financial Statements
undertake work for Te Wänanga o Aotearoa and MO1 Limited (2005 - $90,440). (Kingi Wetere and William Wetere have a significant ownership interest in Power Chill NZ Limited. Kingi Wetere and William Wetere are also directors of this company). 20.8 Aranui (2003) Limited During 2006 there were no transactions with Aranui (2003) Limited (2005 - $145,875). (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.)
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 for these services and MO1 Limited paid Te Wänanga o Aotearoa $1,891,397. During 2006, MO1 Limited invoiced Te Wänanga o Aotearoa $22,805,890 for these services Te Wänanga o Aotearoa invoiced MO1 Limited $1,963,227. At balance sheet date Te Wänanga o Aotearoa had a balance due to MO1 Ltd of $19,084,679 (2005 - $13,656,385) and a balance due from MO1 Ltd of $25,826 (2005 - $313,583).
21. Legislative Compliance Te Wänanga o Aotearoa breached the Crown Entities Act 2004, in that its audited statements were not available within 4 months of 31 December, 2006. 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 obtained approval from the Secretary for the mortgage on a property in Mängere.
22. Subsequent Events 22.1 Kaihautü Restructure During 2007, the Executive Management team (Kaihautü) was restructured. This resulted in the executive being reduced from 7 members down to 3 plus the General Manager of MO1 Ltd.
22.2 Banking Facilities On 30 November, 2007 Te Wänanga o Aotearoa repaid the $6 million Crown Loan as part of the terms of the Crown departure. The BNZ has committed a cash advance facility to Te Wänanga o Aotearoa of $10 million. This facility will be made available once the 2006 accounts have been signed. Given cash forecasts for the next 12-18 months it is unlikely any drawdown will be required.
22.3 Crown Manager Transition and Financial Delegations Handover In March 2007, a plan for the transition of the Crown Manager was submitted to Council and approved. This plan included a timeframe for the handover of partial and then full delegations back to Te Wänanga o Aotearoa Council and management. From March 2007 to December 2007 this plan and the handover was phased in.
Notes to the Financial Statements
- 69
Statement of Commitments and Contingencies as at 31 December, 2006
At the 14th December, 2007 Council meeting, the Council passed a resolution which approved the full handover of those delegations back to the Council, the CEO/Pouhere and selected members of the Te Wänanga o Aotearoa senior management team. In conjunction with this handover, the transition plan for the Crown Manager continues to be implemented with the aim being that completion will occur some time in the first half of 2008 once various tasks and milestones have been met.
Commitments Non-cancellable Operating Leases Buildings 2006 $000
2005 $000
Not later than one year
2,397
2,974
Later than one year and not later than two years
1,483
2,045
Later than two years but not later than five years
2,709
3,786
-
520
Later than five years
Contingencies Personal Grievances As at 31 December, 2006 there were 14 open personal grievance claims against Te Wänanga o Aotearoa. Of these 14 claims, 7 are still active. They are considered to be low risk and unlikely to proceed.
Te Rapu Mätauranga As at 31 December, 2006 there was a dispute between Te Wänanga o Aotearoa and Te Rapu Mätauranga over the delivery and development of Greenlight Programme. The maximum financial exposure is $110,000.
Software Educational Resources Ltd (SERL) As at 31 December, there was a dispute between Te Wänanga o Aotearoa and SERL over termination of the contract. The estimated maximum financial exposure is $220,000. There are no other known contingent liabilities at balance date for the group.
70 - Statement of Commitments and Contingencies
- 71