2008 Annual Report by Te Wananga o Aotearoa

HE KUPU WHAKATAKI

E inoi atu ana kia tukua tonu mai e te Atua ana tauwhirotanga ki runga i a tätou katoa. Kia tau tonu iho ai hoki ki runga i a Kïngi Tuheitia e noho ana i ahurewa tapu. Paimärire. Käore te aroha te tau o taku ate, mö koutou kei aku nui, kua rüpeke atu ki te käpunipunitanga o te wairua. Aku tötara haemata, aku kökö tatakï, aku puna wänanga. ‘Kia whakataukï ake te mamae, auë taukiri e’ Engari, ko rätou ki a rätou, ä, ko tätou ki a tätou Tihë mauri ora! E ngä mana, e ngä reo, e ngä töpü mana Tënä rä koutou katoa.

HE KUPU WHAKATAKI // I

Presented to the House of Representatives pursuant to the Public Finance Act 1989 II //

KO TE UARATANGA O TE WÁNANGA O AOTEAROA The Mission Statement of Te Wánanga 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 tätou reo, tö tätou 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 takoha e whai hua ai; kia manawapä anö; Kia mutu tonu, he käinga pai tënei ao.

To provide 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 people with knowledge of our heritage, our language, our 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.

Dr Buck Nin

KO TE UARATANGA O TE WÁNANGA O AOTEAROA // III

KO TE KAUPAPA O TE WÁNANGA O AOTEAROA The Purpose of Te Wánanga o Aotearoa Ki te whakawhiwhi i ngä mea angitu, 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

IV // KO TE KAUPAPA O TE WÁNANGA O AOTEAROA

KO NGÁ UARA O TE WÁNANGA O AOTEAROA The Values of Te Wánanga o Aotearoa Ngä Uara are embedded in and woven through the actions we take to achieve successful outcomes for our tauira (students), as by achieving success for tauira, we achieve success as an organisation. Our values are significant to Mäori and non-Mäori. They are:

TE AROHA

TE WHAKAPONO

Having regard for one another and those for whom we are responsible and to whom we are accountable

The basis of our beliefs and the confidence that what we are doing is right

NGÁ TURE

KOTAHITANGA

The knowledge that our actions are morally and ethically right and that we are acting in an honourable manner

Unity amongst iwi and other ethnicities; standing as one

KO NGÁ UARA O TE WÁNANGA O AOTEAROA // V

HE WHAKAMAUMAHARA - REMEMBRANCE Auë, ka tanuku koa a Harataunga! E te tohunga e Paki, näu te whao a Rauru, näu te whatitoka o Rua-i-te-wänanga; tomokia! Kei Otäwhao te orokohanganga o te kaupapa, e whakairo tonungia ana e mätou. Waihongia ana ki a au, ki te pito ora, ö whare, hei whakamihatanga mä ö rau iwi, tënei e tangi atu nei. Nö reira, e te mata toki pounamu i tü te tätai o te whakanikoniko, o te whakanakonako, nä te toki a Hine-nui-i-te-pö koe i tua, haere. E koro e Täne, ko koe tëtehi o ngä pouako tüäpapa o Te Wänanga o Aoteroa i töna tuaititanga. E te ruänuku, e te pükenga mätai rangi, kua wehe atu koe kia pïratarata mai ai i ngä huinga whetü i körerongia ai e koe i te wä o te ora. Haere ki a Matariki, ki a Rehua-ariki, ki Te Mangoroa. ‘Ko ngä whetü o te rangi tü tonu, engari ko täua ko te tangata, e tanuku kau, e tanuku kau.’ Karekare tonu ana a Tauranga, papaki ana ngä tai ki Waikawa, he moana anö kei aku kamo. E kara e Monte, näu ngä kete e toru i kawe kia mau ai öna kïwai i te tini mäioio, näu hoki i äki, kia tü niwha ai ngä Wänanga Mäori i te keokeonga tika o te mätauranga. Ko koe te manu i whakataukïngia: ‘He manu kai i te hua o te mätauranga’. Möu te körero: ‘Pikitia te Toihuarewa, Te Ara o Täwhaki i piki ai ki runga!’ Nö reira haere e pä mä, haere i te rangapü o Aituä, haere ki a nunui mä, ki a roroa mä, kia pöwhiritia ai e ngä märeikura, e ngä whatukura o roto o Hawaiki-nui, Hawaiki-roa, Hawaiki-whämamao, Te Hono-i-wairua, haere, okioki atu. During 2008, it was with great sadness that we bade farewell to a number of rangatira who had close associations with Te Wänanga o Aotearoa. The passing of these great totara creates a void in Te Ao Mäori, in the education sector and in Te Wänanga o Aotearoa.

Pákáriki (Paki) Harrison The year saw the passing of Päkäriki (Paki) Harrison (Ngäti Porou ki Harataunga): a leader, a visionary and one of the founders of Te Wänanga o Aotearoa. Paki is revered as one of our country’s greatest contemporary tohunga whakairo (master carvers). He was chosen to lead the Otäwhao Marae Project: the initial project that led to the creation of the Waipä Kökiri Arts Centre. Paki and his wife, Hinemoa, were the first tutors at the Waipä Kökiri Arts Centre and both have remained committed supporters of Te Wänanga o Aotearoa since this time. Paki lives on in the many taonga he has carved for whare throughout the country. Päkäriki (Paki) Harrison

Otäwhao Marae

VI //

Otäwhao Marae - Interior

HE WHAKAMAUMAHARA - REMEMBRANCE Tane Taylor This year, we also lost Tane Taylor (Ngäti Raukawa, Ngäti Maniapoto and Taranaki). Tane, a scholar, artist, teacher and composer, was steeped in knowledge of Te Ao Mäori, particularly Mäori cosmology and spirituality. We were fortunate to have Tane as a kaiako of mätauranga Mäori in our early years. He contributed many works of art to Te Wänanga o Aotearoa and we will continue to treasure these.

Tane Taylor

Monte Ohia

It was with particular sorrow that we mourned the passing of Monte Ohia (Ngäti Pukenga, Ngaiterangi, Ngäti Ranginui and Te Arawa) this year. Monte committed his life to working in the education field and held senior positions in wänanga, polytechnics and universities. He also worked with NZQA, the Ministry of Education and a range of independent research organisations, boards and councils. Monte led the group that wrote the definition of wänanga that was incorporated in the Education Amendment Act 1990. This amendment recognised wänanga as tertiary institutions of Aotearoa New Zealand. At the time of his passing, Monte was Te Pou Matua / Kaiarahi for Te Wänaka o Otautahi (Christchurch Polytechnic Institute of Technology). Monte’s knowledge and his passion for education will be sadly missed. We also acknowledge the passing of loved ones within Te Wänanga o Aotearoa and the communities we serve. Their memory shall continue to live on in all we do. Heoi anö 'ka mate he tëtë kura, ara mai ana he tëtë kura', nö reira rätou ki a rätou, ä ko tätou te hunga ora ki a tätou.

HE WHAKAMAUMAHARA - REMEMBRANCE // VII

VIII //

CONTENTS COUNCIL MEMBERS

MANAGEMENT

REPORT FROM THE CHAIR OF TE MANA WHAKAHAERE

REPORT FROM TE POUHERE

OVERVIEW

HIGHLIGHTS

NEW PROGRAMMES

TAUIRA INFORMATION

EMPLOYEE INFORMATION

SUSTAINABLE DEVELOPMENT

STATEMENTS OF SERVICE PERFORMANCE

FINANCIAL REVIEW - 2008

STATEMENT OF RESPONSIBILITY

AUDIT REPORT

STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

RÁRANGI WHAKAMÁRAMA

CONTENTS // IX

X //

COUNCIL MEMBERS Chair

Deputy Chair

Richard Batley

Parekáwhia McLean

Co-opted Member Ngäti Tama, Ngäti Maniapoto BMS, CA

Co-opted Member Waikato and Ngäti Maniapoto MA, MSocSci

Members Bentham Atirau Ohia

Lloyd Anderson

Te Pouhere - Chief Executive Officer Ngäi Te Rangi, Ngäti Pükenga, Ngäti Ranginui, Te Atiawa and Ngäti Rärua MBA, BA, Dip.Tchg

Co-opted Member Registered Comprehensive Nurse, Dip. Dairy Farming, Adv Cert in Te Ara Reo Mäori

Jo Davey

Ministerial Appointed Member Te Rarawa, Te Aupöuri and Ngäti Kuri PhD, BA (Hons) (VUW)

Tauira Representative Ngäti Maniapoto B.InfoTech, Dip.Bus Comp, Cert in Mauri Ora, Cert in Te Ara Reo Mäori, Cert Bus Comp and Nat Cert Bus Admin & Comp

Tania Hodges Ministerial Appointed Member Ngäti Kahungunu, Ngäti Ranginui, Ngäti Haua and Ngäti Tüwharetoa MBA (with Distinction), Grad Dip Mgmt St, PGCBR, BSocSci, RPN

Peter Skerrett Academic/Tutorial Staff Representative Ngäi Tahu, Waitaha, Käti Mamoe, Ngäti Pikiao, Ngäti Te Rangiunuora, Ngäti Whakaue, Ngäti Unu, Waikato and Ngäti Maniapoto B.AppSocSci, Dip Te Tohu Mätauranga i Te Reo Me ona Ähuatanga Katoa, Cert in Mäori Nautical Studies Kaihoe Waka and Dip. in Te Reo Rangatira

Manaoterangi E Forbes Co-opted Member Ngäti Maniapoto and Tainui Waka Dip.Tchg, Dip in Te Arataki Manu Körero

Dr Manuka Henare

Rev Te Napi Tutewehiwehi Waaka Kaumatua Ngäti Pikiao (Te Arawa) and Ngäti Mähanga (Tainui) Dip.Theol, Dip.Tchg (Secondary)

Neville Baker Business New Zealand Nominated Member Te Atiawa Dip. Social Work

Marie Panapa General Staff Representative Te Atiawa and Taranaki B.Ed, JP

June McCabe Ministerial Appointed Member Ngäpuhi, Te Rarawa, Te Aupöuri, Ngäti Kahu and Ngäti Kahurau MBA

Peter Joseph NZCTU Nominated Member Te Arawa, Tühourangi and Ngäti Pikiao

Deirdre Dale Ministerial Appointed Member BA (SocSci)

Secretary Gilly Mathieson Staff Member TTC COUNCIL MEMBERS // 1

2 //

MANAGEMENT Ngá Kaihautú

Kaiwhakahaere-á-Rohe

Shane Edwards

Ripeka Paraone

Kaihautü – Marautanga (Curriculum) Ngäti Maniapoto MA Hons, PGDipEco.Dev, GDip.HE, B.Ed, Dip.Tchg, NCB

Te Waipounamu Manager - Te Tai Tonga Ngäi Tahu Whänui, Ngäti Kahungungu ki Wairarapa, Rangitäne B.Ed, TTC, Dip.Tchg

Turi Ngatai

Matthew Maynard

Kaihautü – Whakaü Kounga Ako (Delivery) Ngäi Te Rangi, Ngäti Ranginui PGDip, PGDipEd, B.Ed, Dip.Tchg

Regional Manager – Te Tai Tonga Rongowhakaata B.Bus

Jeremy Morley

Haimona Maruera

Kaihautü – Titiraukura (Operations Support Services) BA, DipAcc, CA

Regional Manager – Papaiöea Ngäti Ruanui B.Adult Ed Te Tohu Pökairua Kura Kaupapa Mäori (Dip.Tech.Ed)

Kingi Wetere General Manager – MO1 Limited Ngäti Maniapoto NZCE

Kath Te Kani

Ray Miller

Campus Manager – Whirikökä Te Aitanga-a-Mahaki Dip.Mgt

Associate Kaihautü – Whakaü Kounga Ako (Delivery) MA (Hons), BA, Dip.Tchg

Toby Te Anini o Rongo Westrupp Campus Manager – Whirikökä (commenced 2009) Rongomaiwahine, Rongowhakaata, Te Whänau a Apanui Dip. Tchg, Higher Dip.Tchg

Neville King Regional Manager – Waiariki Ngäti Pikiao, Ngäti Ngararanui, Ngäi Te Rangi BSocSci, Dip.Tchg

Brad Totorewa Regional Manager – Tainui Ngäti Naho, Ngäti Mahuta MMPD, Masters of Maori & Pacific Development (First Class Hons), Dip.Tchg

Yvonne Hawke Regional Manager – Tämaki Makaurau / Te Tai Tokerau Ngäti Ranginui, Ngäti Awa, Ngäti Pikiao B.Ed, DipATE

Dean Martin Area Manager – Te Tai Tokerau Ngäti Mahuta ki Taharoa

MANAGEMENT // 3

4 //

REPORT FROM THE CHAIR OF TE MANA WHAKAHAERE It is a pleasure to present this year’s Annual Report. This report reflects a year that involved further consolidation and refinement resulting in an increase in equivalent full time student (EFTS) and a strong financial position. A key goal for 2008 was to strengthen governance and management systems thereby maximising the organisation's value to the communities we serve. The departure of Brian Roche (Crown Manager) and Malcolm Inglis (Crown Observer) illustrates the advances that the organisation has made in this area. We are grateful for their assistance and their contribution to Te Wänanga o Aotearoa. The year also saw the retirement of Professor Tamati Reedy from Te Mana Whakahaere. His support and input during the time he served at Te Wänanga o Aotearoa were invaluable and will be missed greatly. Dr Manuka Henare (Te Rarawa, Te Aupöuri and Ngäti Kuri) was appointed to Te Mana Whakahaere during 2008. Three appointments were also made to the Audit and Risk Management Committee: Lisa Tipping as Chairperson, Wayne McLean (Ngäti Mähanga, Ngäti Hourua) and Craig Owen as committee members. These people bring a wealth of experience and knowledge that will augment the capacity of Te Mana Whakahaere to guide the organisation into the future. I would like to extend my thanks to the staff and management of Te Wänanga o Aotearoa and to members of Te Mana Whakahaere for their continued efforts in supporting the kaupapa of the organisation. Our collective achievements include: • improved tauira graduation and reduced attrition rates; • increased numbers of tauira pathwaying to employment and further education; and • positive financial results and audits. We will maintain our focus on continuous improvement and strengthen relationships with stakeholders to return real value to Aotearoa New Zealand. Strategic goals for 2009 and 2010 include continuing to meet the aspirations of the communities we serve, lifting the engagement of Mäori youth with tertiary study, and increasing literacy, numeracy and Te Reo levels. The significant progress made during 2008 has laid a solid foundation to achieve these goals. Nö reira noho ora mai nä.

Richard Batley Chair - Te Mana Whakahaere

REPORT FROM THE CHAIR OF TE MANA WHAKAHAERE // 5

REPORT FROM TE POUHERE

On behalf of the whänau of Te Wänanga o Aotearoa, it is with pleasure that I present our Annual Report for 2008. I offer my sincere gratitude to the kaimahi (staff) of Te Wänanga o Aotearoa for their outstanding effort during the past year. Their hard work ensured our organisation maintained its momentum and continued to build on the substantial gains made in 2007. I would like to acknowledge Te Mana Whakahaere members for their sound leadership as we continue to navigate our way towards our goals. I also offer my thanks to our kaumätua, who are the kaitiaki of the values of Te Wänanga o Aotearoa. They ensure we remain true to our kaupapa. Te Wänanga o Aotearoa celebrated the 25th anniversary of the foundation of the Waipä Kökiri Arts Centre (our precursor organisation) in 2008. This celebration culminated in Mata Wänanga, held this year on the original site of the Waipä Kökiri Arts Centre. In recognition of this occasion, a historical exhibition ‘Kia Ngäwari’ was assembled detailing key events that shaped our organisation. The exhibition is housed in the Apakura Campus building at Te Awamutu, the original home of the Waipä Kökiri Arts Centre. The year saw the appointment of Jeremy Morley as Kaihautü-Titiraukura (Operations). Jeremy brings a wealth of commercial and management experience to the role and has already proved a valuable addition to the senior executive team. We also strengthened our rohe management team with the appointment of Dean Martin as Campus Manager - Te Tai Tokerau. These appointments enhance our internal structures, an initiative we will continue over the coming years. Our relationships have always been among our core strengths. During 2008, we continued to reinforce existing relationships while exploring a variety of new relationships. This work included identification of inter-organisational pathways that provide enhanced opportunities for our tauira to transition between Te Wänanga o Aotearoa and other tertiary institutions. A 6 // REPORT FROM TE POUHERE

pathway of particular significance was that established between our Te Arataki Manu Körero programme and Te Kähui Kärohirohi (run by Te Wänanga o Raukawa). This pathway provides opportunities for our kaumätua to build their confidence and competence in mätauranga Mäori and will do much to strengthen paepae throughout Aotearoa New Zealand. 2008 marked a return to growth in equivalent full time student (EFTS) numbers, with 19,030 EFTS recorded for the year. It is particularly pleasing to report that this increase was matched by an increase in tauira retention, completion and graduation rates; graduation rates were the highest in our organisation's history at 63 per cent. Tauira satisfaction rates also remained high (above 95%) across most measures. These results stand as testament to the quality of our programmes and underscore our commitment to our tauira as being central to everything we do. During 2008, Te Wänanga o Aotearoa bolstered its financial position. We generated a surplus of $5.93million on the back of continued strong enrolments and through a robust process of cost containment. This is a highly respectable result and arises from commitment by our kaimahi to maintain a financially viable institution. We continued to enhance our educational portfolio during the year with the approval of eight new programmes. These were the Certificate in Rongoä Mäori Appreciation; the Certificate in Indigenous Research; Te Pïnakitanga ki te Reo Kairangi; the Certificate in Waka Ama; the Environmental Foundation Certificate; the Certificate in Tü Taua; the Certificate in Business and E-commerce; and the Graduate Diploma in Professional Supervision. These programmes provide additional pathways within Te Wänanga o Aotearoa and other institutions. A personal highlight during 2008 was the presentation of the Te Wänanga o Aotearoa - He Kura Waka award to Diggeress Rangituatahi Te Kanawa. He Kura Waka recognises exceptional work in the advancement of education for the benefit of others. Mrs Te Kanawa (the first person to receive He Kura Waka) was presented

the award in acknowledgement of her contribution to the protection, preservation, reclamation and advancement of Mätauranga Mäori in mahi harakeke and its associated elements. Other highlights included: • Toi Äwhio: a symposium that provided an opportunity for artists, researchers and educators engaged in higher levels of study at Te Wänanga o Aotearoa to showcase their work; • Wänanga 2020: a symposium that brought together some great indigenous thinkers from within our own whänau to discuss their vision for Te Wänanga o Aotearoa in the year 2020; • Aotearoa Film Festival: an inaugural event that attracted some of the world’s leading storytellers to share not only the gift of their art, but also the deep knowledge they bring to the film-making arena; • the graduation of our first tauira from the Bachelor of Mäori Art (Level 7) – Raranga; and • the national Mata Wänanga kapa haka competition held in Te Awamutu and won this year by Tainui Rohe. The kaimahi of Te Wänanga o Aotearoa have been through difficult times in recent years, with morale being a casualty of the turmoil surrounding the institution. It was extremely pleasing therefore to note that staff satisfaction improved substantially during 2008. We have made enormous progress, which will stand us in good stead as we face the challenges brought about by the current recession. As a nationwide provider, we are well-positioned to help during this difficult period. We have programmes and an infrastructure capable of providing new skills to tens of thousands of workers who will be affected by the economic downturn. Our focus must now be directed towards further enhancing our programme portfolio to meet the needs of these people and the communities we serve. This is vital to ensuring the education we provide is timely and relevant and offers opportunities that are attractive to our people. At this time, our commitment to whänau transformation through education is stronger than ever. It is the hard work of the kaimahi and tauira of Te Wänanga o Aotearoa that nurtures the continuation of our organisation, and I thank you all for your tremendous efforts during 2008. Although we have made great progress, we still have much work to do to realise our full potential. Your contribution ensures that Te Wänanga o Aotearoa will be available to help future generations realise their aspirations. Heoi anö, kia kaha rä tätou ki te häpai ake i te kaupapa o Te Wänanga o Aotearoa hei oranga mö te katoa.

Bentham Ohia Te Pouhere o Te Wänanga o Aotearoa

REPORT FROM TE POUHERE // 7

OVERVIEW Te Wänanga o Aotearoa is chosen by over 35,000 tauira each year as the tertiary education provider best suited to their needs and aspirations. We offer flexible learning opportunities designed to meet the diverse circumstances of the communities we serve. With over eighty sites throughout New Zealand, tauira can study a wide range of programmes from certificate to degree level. These programmes can be studied during weekdays, in the evening, at the weekend or from home.

Te Wánanga o Aotearoa is chosen by over

All our programmes are delivered in a uniquely Mäori environment and are based on a teaching method called Ako Whakatere, which provides an

inclusive, interactive and nurturing learning experience. As a whänau-based organisation we support all our tauira on their journey towards achieving their full potential.

35,000

tauira each year

HIGHLIGHTS Refurbished Apakura gallery opens with

KIA NGÁWARI

an exhibition presenting the history of Te Wánanga o Aotearoa from the past 25 years

Richard Batley elected as Chair of Te Mana Whakahaere. Lisa Tipping replaces Richard as Chair of the Audit and Risk Management Committee Te Pouhere, Bentham Ohia, appointed as Chair of Te Tauihu (an incorporated society representing the country’s three wänanga recognised under the Education Act 1989) EFTS for the year increase to 19,030, the first increase since 2003 Crown Manager, Brian Roche, and Crown Observer, Malcolm Inglis, depart Te Wänanga o Aotearoa illustrating advances made since 2005 NZQA delegates authority to Te Rautiaki Mätauranga (the Academic Board of Te Wänanga o Aotearoa) to approve certificate programmes (levels 1-4) Refurbished Apakura gallery opens with Kia Ngäwari: an exhibition presenting the history of Te Wänanga o Aotearoa from the past 25 years

8 // OVERVIEW

NZQA approves eight new programmes for launch in 2009 Te Wänanga o Aotearoa reaches agreement with the Government regarding Wai Claim 718 Wänanga 2020 symposium brings together great indigenous thinkers to discuss a vision for Te Wänanga o Aotearoa in the year 2020 Te Wänanga o Aotearoa awards Diggeress Rangituatahi Te Kanawa with the He Kura Waka Award Inaugural Aotearoa Film Festival attracts some of the world’s leading storytellers to share their work and their knowledge of film-making Toi Äwhio symposium showcases work by artists, researchers and educators engaged in higher levels of study at Te Wänanga o Aotearoa Te Mana Whakahaere approves Papatoa project, marking re-entry by Te Wänanga o Aotearoa into the trades training sector

Inaugural Aotearoa

FILM FESTIVAL

attracts some of the world's leading storytellers to share their work

Te Wänanga o Aotearoa wins an award from Raukawa Reo - Raukawa Trust Board for its Te Wiki o Te Reo Mäori (Mäori Language Week) initiative - a colouring competition that involved nearly 200 primary schools from the Far North to Stewart Island Te Wänanga o Aotearoa journal Toroa-te-Nukuroa Volume 2 – Tradition and Values in Frameworks of Being released

Staff and tauira from the Ráhui Pókeka Campus win

AG ART WEAR

Supreme Award at Hamilton Fieldays wearable art awards

Staff and tauira from the Rähui Pökeka Campus win Ag Art Wear Supreme Award at Hamilton Fieldays wearable art awards

NEW PROGRAMMES During 2008 Te Wänanga o Aotearoa approved eight new programmes. Each of these is described below.

Certificate in Rongoá Máori Appreciation (Level 4)

The Environmental Foundation Certificate (Level 4)

This programme covers the foundation practices of Rongoä Mäori. It explores origins, cultural principles and practices that surround Rongoä Mäori and includes identification, classification, health and safety and kaitiakitanga of indigenous plant species.

The Environmental Foundation Certificate provides tauira with a basic understanding of environmental matters from a Mäori perspective. This programme provides a pathway into higher level iwi environmental management programmes offered by Te Wänanga o Aotearoa.

Certificate in Indigenous Research (Level 4) The Certificate in Indigenous Research provides knowledge and skills in indigenous research practice. The programme includes exploration of the purpose of traditional and contemporary research, tikanga and ethics relating to indigenous and Mäori research, roles and responsibilities of indigenous researchers and important issues facing indigenous researchers now and for the future.

Diploma in Te Pínakitanga ki te Reo Kairangi (Level 7) Diploma in Te Pïnakitanga ki te Reo Kairangi helps tauira develop a high level of fluency and proficiency in applying Te Reo and tikanga Mäori in a wide range of contexts. The programme provides graduates with a pathway into further study at a higher level of Te Reo and tikanga Mäori.

Certificate in Waka Ama (Level 4)

Certificate in Tú Taua (Level 4) This programme explores foundational practices of Tü Taua (the traditional art, modes and styles of the Mäori warrior). Topics include tikanga, history, purpose, cultural values and key movements of Mau Räkau.

Certificate in Business and E-Commerce (Level 3) This certificate teaches tauira the skills to use e-commerce as an effective business tool. This programme is a pathway that links graduates of the Certificate in First Steps to Business (Level 2) with the Certificate in Small Business Management (Level 4).

Graduate Diploma in Professional Supervision (Level 7) This programme invites tauira to deconstruct existing supervision models of practice and reconstruct biculturism in professional supervision practice.

The Certificate in Waka Ama provides tauira with an opportunity to learn about waka history, construction, etiquette, method and technique within a safe and supportive environment. Learning is based on the legacy of ngä mätua tüpuna (our ancestors).

OVERVIEW // 9

TAUIRA INFORMATION Overview

Tauira Numbers

2008 marked a turning point for Te Wänanga o Aotearoa. After three years of intensive efforts by staff to consolidate and stabilise the organisation, Te Wänanga o Aotearoa is now positioned well for the future.

The 2008 single data returns (SDRs) show tauira numbers declined by 5.05% on 2007 figures. This compares with a 13% decline between 2006 and 2007. Although numbers of tauira decreased, the number of consumed EFTS increased, indicating that tauira opted to undertake programmes of longer duration during 2008.

Most significantly, 2008 brought improvements in all measures of tauira achievement (course retention, course completion and graduation). These rates continue to exceed those of many other tertiary institutions in Aotearoa New Zealand. They also stand as a testament to the effectiveness of the unique style of education offered by the organisation. Tauira satisfaction rates remained high (above 95% across most measures) indicating the quality of education delivered by Te Wänanga o Aotearoa. The organisation also recorded an increase in consumed EFTS (the first since 2004) showing the continued popularity of Te Wänanga o Aotearoa programmes throughout the country.

The following table shows tauira numbers from SDRs for 2004 to 2008.

TAUIRA NUMBERS

2004

2005

2006

2007

2008

66,756

57,843

42,455

36,941

35,075

The following chart shows the profile of tauira numbers for 2004 to 2008. TAUIRA NUMBERS

These results place Te Wänanga o Aotearoa in a good position as the country moves into a period of national consolidation and stabilisation. The organisation is ready to provide support and encouragement to the many communities in which it operates throughout Aotearoa New Zealand. This section presents participation, achievement, satisfaction and demographic data and statistics for tauira attending Te Wänanga o Aotearoa in 2008. Information is also presented for 2004 to 2007 to enable comparative analyses.

Tauira Participation Te Wänanga o Aotearoa continues its commitment to providing equal opportunities for all tauira, particularly 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 that provide all tauira with opportunities to actualise their potential. Reflecting the extent to which tauira value this commitment, tauira participation remained strong during 2008.

10 // TAUIRA INFORMATION

Consumed EFTS During 2008, the staff of Te Wänanga o Aotearoa reversed the trend of declining EFTS experienced by the organisation over the preceding four years. The 2008 target for consumed EFTS (stated in the institutional Investment Plan) was 19,500. Te Wänanga o Aotearoa achieved 19,030 EFTS for the year. This result is well within the 3% threshold stipulated by the Tertiary Education Commission. It also marks the first increase in consumed EFTS at Te Wänanga o Aotearoa since 2004.

The following table shows consumed EFTS from SDRs for 2004 to 2008.

EFTS

2004

2005

2006

2007

2008

29,671

27,014

19,670

18,578

19,030

The following chart shows tauira course completion statistics from 2004 to 2008. TAUIRA COURSE COMPLETION

The following chart shows the profile of consumed EFTS for 2004 to 2008. EFTS

The following table shows tauira graduation statistics for the 2004 to 2008 period.

GRADUATION RATE*

2004

2005

2006

2007

2008

59%

60%

53%

57%

61%

Tauira Achievement

* 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.

Tauira achievement improved substantially during 2008, with improvements noted across course retention, course completion and graduation rates.

The following chart shows tauira graduation statistics for the 2004 to 2008 period.

The following table shows tauira course retention statistics for the 2004 to 2008 period.

COURSE RETENTION

2004

2005

2006

2007

2008

83%

74%

75%

80%

GRADUATION RATE

The following chart shows tauira course retention statistics from 2004 to 2008. TAUIRA COURSE RETENTION

2004

Tauira Satisfaction

The following table shows tauira course completion statistics for the 2004 to 2008 period.

COURSE COMPLETION

2004

2005

2006

2007

2008

74%

77%

70%

71%

78%

Tauira satisfaction is a key metric against which Te W채nanga o Aotearoa assesses its performance. This metric provides the organisation with an understanding of how well it is meeting the needs of the tauira it serves. Overall tauira satisfaction was extremely high for both semesters in 2008. The following table shows overall tauira satisfaction ratings for semesters A and B in 2007 and 2008.

TAUIRA INFORMATION // 11

2007

2008

SEMESTER A

96%

94%

SEMESTER B

97%

Note: Sample sizes for both semesters achieved statistical significance at the 95% confidence level.

Additional highlights from the 2008 tauira evaluation surveys include: 98% of tauira expressed satisfaction with the level of support provided by kaiako (Semester A and Semester B);

The following diagram shows age demographic statistics for the 2004 to 2008 period. 2004

2005

2006

2007

2008

UNDER 18 YEARS

18 TO 24 YEARS

11%

10%

25 TO 39 YEARS

43%

41%

39%

36%

33%

40 YEARS PLUS

45%

48%

51%

54%

57%

The following chart shows age profile statistics for 2008. AGE PROFILE

98% of tauira expressed satisfaction with kaiako preparedness for class (Semester A and Semester B); 97% of tauira expressed satisfaction with the enrolment process (Semester B); 97% of tauira expressed overall satisfaction with their programme of study (Semester B); and 95% of tauira expressed satisfaction with Student Support Services (Semester B).

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 and people aged over 40 years of age with low or no secondary qualifications. Tauira demographics remained stable in nearly all areas during the 2008 period. Exceptions to this included increases in numbers of tauira aged over 40 years and in European / Päkehä tauira choosing to transform their lives through study with Te Wänanga o Aotearoa.

During 2008, Te Wänanga o Aotearoa began developing a raft of strategies aimed at encouraging younger tauira to study with the organisation. The strategy involves collaborating with schools to initiate pathways into Te Wänanga o Aotearoa before students complete their secondary education.

Gender Profile Age Profile Trends in the age profile of Te Wänanga o Aotearoa tauira followed those of previous years. Most notably, the number of tauira aged over 40 years increased by 3%, with those in the 25 to 39 year age bracket decreasing by the same amount. These trends have been reasonably consistent since 2002.

12 // TAUIRA INFORMATION

In line with previous years, Te Wänanga o Aotearoa continued to attract larger numbers of female tauira than male tauira during 2008. The tauira gender profile remains unchanged since 2006. The following table shows percentages of males and females engaging with education at Te Wänanga o Aotearoa from 2004 to 2008. 2004

2005

2006

2007

2008

MALE

33%

32%

30%

FEMALE

67%

68%

70%

The following chart shows gender profile statistics for 2008.

ETHNICITY PROFILE

GENDER PROFILE

No Secondary Award Ethnicity Profile The proportion of tauira Mäori studying at Te Wänanga o Aotearoa has in general been declining from a high of 77% in 2002. This decline appears to have stabilised at around 45% in recent years. The proportion of tauira Mäori increased by 1% in 2008 and the proportion of European / Päkehä tauira increased by 3%. The following table shows ethnicity statistics for 2004 to 2008.

Te Wänanga o Aotearoa has, since its inception, been committed to providing education to those marginalised by the secondary education system. The popularity of our programmes with tauira in this group arises from the extensive support provided and the portfolio of programmes offered by the organisation. Te Wänanga o Aotearoa continued to attract a significant proportion of tauira with no secondary award in 2008 with growth of 2% in this demographic. The following table shows percentages of tauira engaging in study with Te Wänanga o Aotearoa between 2004 and 2008 who had no secondary qualifications when they joined the organisation.

NO SECONDARY AWARD 2004

2005

2006

2007

2008

MÁORI

45%

48%

43%

44%

EUROPEAN

17%

18%

20%

29%

32%

ASIAN

28%

27%

23%

18%

15%

PACIFIC ISLAND

OTHER

2004

2005

2006

2007

2008

38%

37%

38%

40%

The following chart shows statistics for tauira joining Te Wänanga o Aotearoa with no secondary award from 2004 to 2008. NO SECONDARY AWARD

Note: During 2007, the Ministry of Education changed the way ethnicity is reported in alignment with Statistics NZ. SDR summaries created under the new system do not provide a complete representation of people who report more than one ethnicity. For this reason, ethnicity statistics reported in this annual report are drawn from the tauira database of Te Wänanga o Aotearoa in line with previous years.

The following chart shows ethnicity profile statistics for 2008.

TAUIRA INFORMATION // 13

Prior Activity Profile

TAUIRA WITH DISABILITIES

2004

2005

2006

2007

2008

10%

11%

Te Wänanga o Aotearoa has experienced a decline in the proportion of ‘non-workforce’ tauira since 2001 when the rate was 53%. This decline has resulted from increasing numbers of tauira choosing to upskill while remaining in employment. The proportion of ‘non-workforce’ tauira stabilised in 2007 at 29%.

Note: This table presents statistics for tauira identified as having a disability on their enrolment form. It does not show tauira with disabilities who were supported by Tauira Support Services, but who did not identify a disability on their enrolment form.

The following table shows prior activity statistics for tauira enrolling at Te Wänanga o Aotearoa for the 2004 to 2008 period.

TAUIRA WITH DISABILITIES

2004

2005

2006

2007

2008

NON-WORKFORCE

37%

35%

32%

29%

WORKFORCE

43%

45%

49%

54%

55%

TERTIARY STUDENT

10%

11%

SECONDARY STUDENT

OVERSEAS

OTHER

The following chart shows prior activity profile statistics for 2008. PRIOR ACTIVITY PROFILE

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 2008. The following table shows percentages of tauira for 2004 to 2008 who reported having a disability. Data presented here are taken from enrolment forms.

14 // TAUIRA INFORMATION

The following chart shows statistics for tauira with disabilities enrolling between 2004 and 2008.

EMPLOYEE INFORMATION Te Wänanga o Aotearoa is committed to being a good employer. As part of this commitment and in accordance with its kaupapa and EEO policy, 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 2004 and 2008.

Employee Numbers Full-time equivalent (FTE) employee numbers decreased by 11.3% during 2008. Much of this decline was in response to falling tauira numbers. The following table shows FTE employee numbers for 2004 to 2008. Data for 2006 to 2008 are drawn from the staff SDR.

Gender Profile The employee gender profile of Te Wänanga o Aotearoa has remained relatively constant over the past five years, although the number of males has increased gradually during this time. This trend continued during 2008 with the proportion of males employed by the institution increasing to 40%. The following table shows gender profile statistics for Te Wänanga o Aotearoa employees from 2004 to 2008. 2004

2005

2006

2007

2008

MALE

34%

37%

40%

FEMALE

66%

63%

60%

The following chart shows employee gender profile statistics for 2004 to 2008. GENDER PROFILE

FTE EMPLOYEES

2004

2005

2006

2007

2008

1,432

1,393

1002

853

756

The following chart shows numbers of FTE employee numbers for 2004 to 2008. FULL TIME EQUIVALENT EMPLOYEES

Ethnicity Profile Strong numbers of Mäori employees are essential for an organisation based in ähuatanga Mäori and operating in accordance with tikanga Mäori. These employees support Te Wänanga o Aotearoa with their mätauranga (knowledge) and provide informal, but invaluable, channels of communication with iwi and the communities we predominantly serve. They also provide day-to-day input from key stakeholders into activities occurring within the organisation. The proportion of NZ Mäori employees working at Te Wänanga o Aotearoa increased by 11% to 74% during 2008. The following table shows ethnicity demographic statistics for Te Wänanga o Aotearoa between 2004 and 2008.

EMPLOYEE INFORMATION // 15

2004

2005

2006

2007

2008

NZ MÁORI

55%

66%

64%

63%

65%

NZ EUROPEAN / PÁKEHÁ

11%

10%

12%

PACIFIC ISLAND

ASIAN

OTHER

NOT SPECIFIED

28%

11%

14%

13%

16%

The following chart shows employee ethnicity profile statistics for 2004 to 2008. ETHNICITY PROFILE

16 // EMPLOYEE INFORMATION

SUSTAINABLE DEVELOPMENT Te Wänanga o Aotearoa has gone through enormous strategic, structural and operational change during the past five years. At the same time, we have witnessed significant changes in the area of sustainability on both a world and national scale. More recently, we have seen real challenges to the sustainability of our economic and social frameworks accompanied by similar challenges from an environmental perspective. As an indigenous, Mäori organisation, Te Wänanga o Aotearoa has always strongly espoused the philosophy, culture and values of Mäoritanga and Mätauranga Mäori. These tenets have led us to manage our resources in a holistic and sustainable manner. During the past 12 months, Te Wänanga o Aotearoa has commenced the process of adopting formal policies and procedures towards becoming a sustainable organisation. Although we are currently in the early stages of this process, we are committed to continuing this work.

OUR FOCUS IS FIRMLY ON THE PRINCIPLE OF MANAAKI TANGATA - CARE FOR OUR PEOPLE

Over the coming years, we will adapt and implement these formal policies and develop appropriate sustainability and environmental key performance indicators that are unique to Te Wänanga o Aotearoa. The challenge for us is to strike a good balance between what is important in terms of sustainability within the Mäori worldview while reflecting what is important to all New Zealanders and the world as a whole with regard to best practice sustainability policies and reporting. This outcome is to be achieved within the traditional, collective decision-making framework of our people. Te Wänanga o Aotearoa is fully committed to the concept of sustainability, and it is an important driver of all our strategies. Whether it is in the area of cultural, economic or environmental sustainability, our focus is firmly on the principle of manaaki tangata – care for our people – and our ability to sustain future generations.

Bentham Ohia Te Pouhere o Te Wänanga o Aotearoa

SUSTAINABLE DEVELOPMENT // 17

STATEMENTS OF SERVICE PERFORMANCE The performance indicators that make up these statements of service performance are drawn from the organisation’s Investment Plan (as negotiated with the Tertiary Education Commission). Investment Plans are central to the tertiary reforms as they describe how a tertiary organisation will use government funds to respond to the Tertiary Education Strategy 2007 – 2012 and the needs of stakeholders. The Tertiary Reforms and the Investment Plan system led Te Wänanga o Aotearoa to make substantial changes to its performance indicators in 2008. This section reports achievement against these new indicators, with each objective representing a key shift required of wänanga as outlined in the Tertiary Education Strategy. The objectives are:

1 Strengthening of provision at diploma level and above within the wánanga sector; 2 Focusing capability building efforts to achieve increased quality and performance against new benchmarks within the tertiary education reforms; 3 Strengthening engagement of iwi and Máori with the tertiary education sector to assist in guiding and supporting the delivery of wánanga provision; 4 Increasing cross-sector collaboration opportunities and improving staircasing and pathways between wánanga and other tertiary education organisations to maximise Máori potential opportunities; and 5 Strengthening of the wánanga contribution to sector-wide leadership to sustain the continued advancement of mátauranga Máori. Performance indicators under each objective demonstrate the contribution Te Wänanga o Aotearoa is making to advance the role of wänanga and mätauranga Mäori within the tertiary sector. Te Wänanga o Aotearoa has shown sustained improvement during 2008 and is pleased to report that it exceeded seventeen of its key performance indicators targets and partially achieved one target. The organisation did not achieve two key performance indicators but came within 3% of these targets.

18 // STATEMENTS OF SERVICE PERFORMANCE

[ OBJECTIVE 1 ] Strengthening of provision at the diploma and above level within the wánanga sector The need for increased participation in diploma and above level is acknowledged. However, the need for foundation education remains significant; 50% of the working population have either no qualifications or only school-level qualifications. Added to this, an additional 7,500 students leave secondary school each year without a qualification. Given these statistics, Te Wänanga o Aotearoa continues to focus on providing opportunities for tauira to gain foundation education (level 1 to 3) that will enable them to pathway to diploma-level qualifications. This approach continues to be successful with 41% of tauira enrolling in further education last year. Te Wänanga o Aotearoa exceeded the 2008 target in all but two KPIs relating to this objective and has shown

steady improvement across 10 of the 11 KPIs. Most notably, Te Wänanga o Aotearoa has achieved significant improvement in its course completion rate, with 73% of tauira enrolled at diploma level and above successfully completing their courses. This compares favourably with the wänanga sub-sector average of 67% in 2007. These results were achieved by maintaining an environment based on ähuatanga Mäori and in accordance with tikanga Mäori, and by focusing on staff capability and quality teaching and learning. The organisation did not achieve two key performance indicators (numbers 7 and 10) but came within 3% of these targets.

PERFORMANCE INDICATORS

2006 ACTUAL

2007 ACTUAL

2008 ACTUAL

2008 TARGET

Tauira successfully complete their studies measured by Unit Retention (R), Unit Completion (C) and Graduation (G)

R = 74% C = 70% G = 53%

R = 75% C = 71% G = 57%

R = 80% C = 78% G = 61%

R  80% C  70% G  50%

Successful course completion rates for level 4 certificates and level 5 – 7 diplomas, degrees and grad diplomas

65%

67%

73%

65%

Successful course completion rates for level 4 certificates and level 5 – 7 diplomas, degrees and grad diplomas for Mäori students

65%

67%

73%

66%

First year qualification-level attrition for level 4 and above

20%

17%

16%

21%

First year qualification-level attrition for level 4 and above qualifications for Mäori students

23%

18%

16%

21%

Qualification-level completion rates in one EFTS and under level 4 and above qualifications (over a 2 year period)

51%

58%

60%

47%

Qualification-level completion rates for all level 4 and above qualifications (over a 5 year period)

53%

54%

55%

Qualification-level completion rates in one EFTS and under level 4 and above qualifications for Mäori students (over a 2 year period)

50%

56%

58%

47%

Proportion of EFTS at diploma level 4 and above qualifications

30%

33%

35%

30%

10.

Qualification-level completion rates in all level 4 and above qualifications for Mäori students (over a 5 year period)

52%

53%

51%

54%

11.

Proportion of EFTS at diploma level 4 and above qualifications for Mäori students

33%

34%

38%

32%

STATEMENTS OF SERVICE PERFORMANCE // 19

[ OBJECTIVE 2 ] Focusing capability-building efforts to achieve increased quality and performance against new benchmarks within the tertiary education reforms Two of the organisation’s key goals are to pursue excellence and to provide tauira with quality learning experiences. Quality Reinvestment Programme (QRP) projects are central to the organisation’s strategy for achieving these goals. Each project aims to enhance organisational capacity and capability to respond to the Tertiary Education Strategy while continuing to meet the needs of tauira, employers and communities. QRP project milestones (set by Te Wänanga o Aotearoa and the Tertiary Education Commission) continue to be achieved within stated timeframes.

PERFORMANCE INDICATORS

2006 ACTUAL

2007 ACTUAL

2008 ACTUAL

2008 TARGET

Milestones achieved

TWoA set milestones achieved

Not previously recorded

Liquid Assets to Annual Cash outflow from operations

4.35%

23.19%

23.41%

98%

129%

111%

108%

-12.37%

4.53%

4.50%

Break-even2

Milestones achieved

TWoA set milestones achieved

Budget year end1 Financial Management and Risks Strategy

These results confirm the advances made in quality management and enable the organisation to support initiatives that drive quality and continuous improvement.

Deliver against QRP milestones

Cash inflow from operations to cash outflow from operations

Te Wänanga o Aotearoa has exceeded benchmarks across the three financial indicators defined by Tertiary Advisory Monitoring Unit. An organisational restructure in 2006 combined with prudent financial management and monitoring have enabled the organisation to achieve these outcomes.

Surplus to total revenue expressed as a percentage. That is 0%.

20 // STATEMENTS OF SERVICE PERFORMANCE

Not previously recorded

[ OBJECTIVE 3 ] Strengthening the engagement of iwi and Máori within the tertiary education sector to assist in guiding and supporting the delivery of wánanga provision This objective is linked to Objective 4, as it connects iwi and Mäori aspirations with the wider sector. Outcomes of both these objectives are measured through the key performance indicators for Mäori detailed in Objective 1. To achieve this objective, Te Wänanga o Aotearoa initiated a project entitled Collaboration Framework under the Quality Reinvestment Programme. The Collaboration Framework project will design and build a nationwide framework that incorporates principles, protocols, processes and procedures for capturing stakeholders’ needs and aspirations. Stakeholders comprise iwi, community, tertiary sector and industry. The iwi component of the Collaboration Framework is made up of a Koeke (council) in each institutional rohe (region). These Koeke will enable the organisation to collect information on the satisfaction levels and needs of each iwi and include the findings in the organisation’s strategic planning. The structure and terms of reference have been finalised in each rohe. The next step is to populate and operationalise each

PERFORMANCE INDICATORS Stakeholders (iwi) express satisfaction in TWoA

Koeke in accordance with the kawa and requirements of each respective iwi. The Collaboration Framework project is progressing in line with the project timetable and progress is being made towards being able to measure iwi satisfaction. Therefore, the performance indicator attached to this objective has been assessed as partially achieved pending completion of the Collaboration Framework project. In addition to the Collaboration Framework, extensive surveying of the views of tauira is undertaken during the year and at graduation. Findings from these surveys assist the organisation to understand the needs of both Mäori and non-Mäori tauira in respect of programme provision and delivery methodologies. Outcomes resulting from engagement with iwi are demonstrated by the proportion of tauira Mäori who enrol and successfully complete their programme of study (discussed under Objective 1).

2006 ACTUAL

2007 ACTUAL

Not previously recorded

2008 ACTUAL

2008 TARGET

Partially achieved

Baseline set

STATEMENTS OF SERVICE PERFORMANCE // 21

[ OBJECTIVE 4 ] Increasing cross-sector collaboration opportunities, and improving pathways between wánanga and other TEOs to maximise Máori potential opportunities A key component of the Collaboration Framework (discussed in Objective 3) includes engagement of other tertiary education providers. The primary aims of any collaboration initiative are to utilise the strengths of collaboration partners to provide improved opportunities for tauira and to ensure efficient use of government resources and funding. Five initiatives implemented in 2008 to achieve these ends include: supporting Mäori in apprenticeship programmes; sharing on-campus facilities;

PERFORMANCE INDICATORS Opportunities for collaboration are investigated

arranging pathways to higher-level qualifications at other tertiary organisations; provision of tikanga Mäori programmes to other tertiary education organisations and government agencies; and collaboration with industry and education providers to advance Mäori design. A steady increase in employment and education pathways within and between institutions indicates that these initiatives are assisting tauira to take advantage of these new opportunities.

2006 ACTUAL

2007 ACTUAL

Not previously recorded

2008 ACTUAL

2008 TARGET

9 investigated

4 opportunities investigated

6 implemented Graduation Destination survey shows employment and pathways to further education

3 4

3 P = 20% E4 = 74%

P =36% E = 62%

P = 41% E = 68%

P = Pathway - the percentage of the tauira population who enrolled in further education on graduation. E = Employment – the percentage of the tauira population who indicated that they were employed after graduation.

22 // STATEMENTS OF SERVICE PERFORMANCE

Improvement

[ OBJECTIVE 5 ] A strengthening of the wánanga contribution to sector-wide leadership to sustain the continued advancement of mátauranga Máori There is a dearth of literature on methods Te Wänanga o Aotearoa could employ to achieve this objective, particularly within a tertiary sector that is based on non-Mäori paradigms. Achievement of this objective requires Te Wänanga o Aotearoa to: create, document and embed unique elements that combine to generate a distinctive mätauranga Mäori approach to teaching and learning; and build capability and capacity to create a research culture, that contributes understanding of mätauranga Mäori within the tertiary sector. Two QRP projects (Kaupapa Wänanga and Kaupapa Rangahau) have been initiated to achieve this objective:

PERFORMANCE INDICATORS Research informs mätauranga Mäori

The Kaupapa Wänanga project aims to build a philosophical base that underpins the distinctive contribution of Te Wänanga o Aotearoa and suggests ways in which mätauranga Mäori can be incorporated into teaching and learning approaches. This project will be completed in June 2009. The Kaupapa Rangahau project aims to establish research capability and capacity that will contribute understanding of mätauranga Mäori to the wider sector. This project will be completed in June 2010. QRP milestones set by Te Wänanga o Aotearoa and the Tertiary Education Commission have been achieved within stated timeframes.

2006 ACTUAL

2007 ACTUAL

Not previously recorded

2008 ACTUAL

2008 TARGET

Milestones achieved

Deliverables of QRP Project achieved

STATEMENTS OF SERVICE PERFORMANCE // 23

FINANCIAL REVIEW - 2008 Results for the Group A comparison of the results for the Group with budget and 2007 performance is shown in the table below.

2008 ACTUAL $'000

BUDGET 2008 $'000

Surplus

5,937

4,775

5,419

Surplus/Income

4.6%

3.7%

4.5%

38,353

36,428

21,861

1.14

1.09

1.29

Working Capital

21,460

31,602

8,459

Net Assets

98,000

89,994

79,623

Cash* Cash Inflows/Cash Outflows

PERFORMANCE AGAINST BUDGET

2007 ACTUAL $'000

PERFORMANCE AGAINST PREVIOUS YEAR

*Cash includes cash, other financial assets in both current and non-current assets.

Overall Financial Performance The results show a solid performance by the organisation as follows: operating within the guidelines set down by our funders, the Tertiary Education Commission, for surplus and cash management; achieving a surplus better than budget by $1.2million; working capital is very strong and shows an improvement on last year; net assets (equity) have increased by $18.4million during the year; and Te W채nanga o Aotearoa currently has very healthy cash reserves, minimal levels of inventory compared with previous years, and a fixed assets ledger with up-to-date valuations and reflecting recent write-downs of other assets. These results represent another year that reinforces our place in the tertiary landscape. They indicate a good balance between quality and financial performance. This supports all of the changes implemented over the previous four years to ensure the continued financial viability and sustainability of the organisation.

24 // FINANCIAL REVIEW - 2008

Te W채nanga o Aotearoa is well-placed from a financial perspective to weather the storm clouds of the current economic crisis. A working capital surplus of approximately $21million and additional cash equivalents of $3.5million is a very strong position to be in at the present time. Similarly, an asset ledger reflecting conservative and up-to-date overall and component values and including write-downs of small assets shows the desired level of prudence required. From an operational and educational viewpoint, we are continuing to implement quality improvement initiatives that will sustain us. The demand for our programmes and services remains high and we are refreshing our portfolio of offerings. Our management and staff are focused on achieving the targets set for them in 2009.

Equivalent Full Time Students (EFTS) Our total EFTS this year were 19,030, an increase of 2.4% on the results for 2007. The most significant changes to the EFTS mix were the suspension of Kiwi Ora (750 EFTS), the decline of the mixed-mode version of the Certificate in Small Business Management (130 EFTS) and the decline of Te Tohu Mätauranga Certificate Te Reo Mäori (130 EFTS).

This was offset by the introduction of 12 updated or new programmes, including a new level of Speaking and Living English (100 EFTS) and Tikanga Marae (110 EFTS). Existing programmes also grew - Mauri Ora grew by 235 EFTS, the Introduction to Visual Arts grew by 225 EFTS and First Steps to Business grew by 206 EFTS.

Income The profile of our income streams is shown in the table below.

SOURCE

2008

2007

2006

2005

2004

Government Funding

92%

90%

89%

Student Fees

Other (e.g. Interest, Joint Ventures)

The income profile for 2008 has continued to remain consistent with the profile from previous years as reflected in a stabilisation of the Government funding,

particularly EFTS revenue. Government funding remains the primary source of revenue for the organisation.

Expenditure The profile of our expenditure streams is shown in the table below.

SOURCE

2008

2007

2006

2005

2004

Personnel Costs

52%

49%

46%

43%

35%

Resources/Administration

32%

37%

41%

43%

Property Costs

Depreciation

Impairment of Assets

Personnel costs are now above 50% of the organisation’s total expenditure, which is comparable with benchmarking around other organisations. This has resulted from the changing mix of programmes being offered, the organisation’s increased focus on attracting staff

with higher level qualifications in both academic and support roles and alignment of our wages and salaries with sector norms. Over the period shown above, we have also made a number of classification changes, which impact on the increase in personnel

FINANCIAL REVIEW - 2008 // 25

costs and a subsequent decrease in resource and administration costs. Combined resource, administration and property costs have remained constant over the last 12 months at 40%. This is due to the continued rationalisation of our property portfolios and monitoring and improvement in procurement practices. Our depreciation cost for the last 12 months decreased to 7% as a consequence of a change in the capitalisation levels for our small assets and the write off of a number of other assets.

Financial Position Cash balances for 2008 have exceeded budget given the higher surplus on the back of reduced levels of expenditure against budget. The organisation has a positive working capital balance at the end of the year of $21.5million. This is a 153.7% increase on the 2007 working capital balance. This increase results primarily from an increase in cash and other financial assets. Working capital is lower than budget. This is as a result of the following: the recognition of project funding received in advance as a liability; the treatment of some Government Stock investments as non-current assets; and an increased holiday pay and other employee entitlements accrual. Our fixed asset and programme development spend increased in the second half of 2008. The movements were caused by the following: the change to the small capital policy accounting; revaluation increase of properties; investment property revaluations; and an acceleration in the spend on IT and property assets. During the year, two properties were purchased. These were land and buildings in Kawerau and Te Awamutu. Net assets as at year end are now $98million, which is an increase of $18.4million on last year. This is attributable to a combination of: the surplus generated for 2008 - $5.9million; the classification of the suspensory loan funding as equity - $10million; and other movements in equity received and revaluation reserves - $2.5million.

26 // FINANCIAL REVIEW - 2008

Cash Flow The closing cash position for the year is very strong and shows a more aggressive approach to maximising our earning potential from our surplus cash. During 2008, we were able to achieve interest revenue of nearly $3million, which was $1.1million better than budget. Our main source of interest earnings was from term deposits with the bank; however, in the later part of the year, it was decided to spread our risk by investing in other securities and financial institutions within our credit risk criteria. During the year, our cash and cash equivalents increased from $22million to $38million. The net surplus for the year was $5.8million; however, when non-cash items are removed the net operating inflow of cash to the organisation was $15.4million. We had a net cash outflow of $9.5million on investing activities. This expenditure relates mainly to property, plant and equipment. For a number of years now we have under-spent on replacement and improvement of these assets. 2008 was the first year that we undertook a significant programme of up-grading our vehicle fleet and our information technology assets. In addition, we have undertaken major improvements on many of our large sites, especially with regards to roof and plant replacements. We also purchased the land and buildings in Rickett Road, Te Awamutu, which houses our warehousing and resource distribution facilities. In addition to this cash inflow, we received $10million as a suspensory loan. This has been recognised as an equity injection. We also received $0.6million from the Ministry of Education to enable us to reopen an early learning centre in M채ngere, which has been out of operation for the last few years due to a decision to relocate the building from its previous site.

STATEMENT OF RESPONSIBILITY In the financial year ended 31 December 2008, Te Mana Whakahaere (the Council) and the management of Te W채nanga o Aotearoa were responsible for: preparation of the annual financial statements and statement of service performance, and the judgements used in them; and

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 financial statements and statement of service performance fairly reflect the financial position and operations of Te W채nanga o Aotearoa for the year ended 31 December 2008.

Richard Batley - Council Chairperson

Bentham Ohia - Te Pouhere

BMS (Waikato), CA 30th April 2009

Dip Tchg, BA, Exec MBA 30th April 2009

STATEMENT OF RESPONSIBILITY // 27

AUDIT REPORT To the readers of Te Wánanga o Aotearoa Te Kuratini o Ngá Waka and group’s financial statements and performance information for the year ended 31 December 2008 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 2008.

Unqualified Opinion In our opinion: the financial statements of the Wänanga and group on pages 30 to 71: comply with generally accepted accounting practice in New Zealand; and fairly reflect: the Wänanga and group’s financial position as at 31 December 2008; 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 18 to 23 fairly reflects service performance achievements measured against the performance targets adopted for the year ended on that date. The audit was completed on 30 April 2009, and is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and 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.

28 // AUDIT REPORT

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. If we had found material misstatements that were not corrected, we would have referred to them 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. 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 obtained all the information and explanations we required to support our opinion 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 2008. 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 2008. 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, we carried out an assignment to review a procurement policy, which is compatible with those independence requirements. Other than the audit and this assignment, 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 REPORT // 29

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 December 2008

GROUP ACTUAL 31 DEC 08 $'000

GROUP BUDGET 31 DEC 08 $'000 NOTES

PARENT ACTUAL 31 DEC 08 $'000

PARENT BUDGET 31 DEC 08 $'000

GROUP ACTUAL 31 DEC 07 $'000

PARENT ACTUAL 31 DEC 07 $'000

83,926

81,647

105,062

INCOME GOVERNMENT FUNDING EFTS Funding

83,926

81,647

34,384

37,759

118,310

119,406

34,384

37,759

2,815

118,310

119,406

107,877

Domestic

2,114

TOTAL STUDENT TUITION FEES

2,114

2,517

2,114

2,517

2,197

2,517

2,114

2,517

2,197

Other Income

4,988

5,555

Finance Income

2,943

1,860

3(b)

27,646

8,073

7,929

9,913

3(c)

2,578

1,710

1,750

1,659

TOTAL OTHER INCOME

7,931

7,415

30,224

9,783

9,679

11,572

128,355

129,338

150,648

131,706

119,753

121,646

Employee Benefit Expense

63,433

63,493

3(d)

57,792

57,993

55,707

50,360

Consumable / Faculty Expense

38,923

41,089

3(e)

51,888

54,835

36,077

48,491

Occupancy Property Expense

10,267

9,403

9,646

8,808

9,346

8,803

Depreciation Expense

7,441

8,634

7,030

7,783

9,240

8,642

Amortisation Expense

1,224

1,144

797

724

1,478

903

136

800

3(c)

136

800

497

459

994

1,530

Other Funding TOTAL GOVERNMENT FUNDING

3(a)

STUDENT TUITION FEES

OTHER INCOME

TOTAL INCOME EXPENDITURE

Finance Costs Fair Value Adjustment on Financial Instruments Loss on Investment Property TOTAL EXPENDITURE

SURPLUS / (DEFICIT)

994

122,418

124,563

128,283

130,943

114,334

119,685

5,937

4,775

22,365

763

5,419

1,961

Explanation of significant variances against budget are detailed in note 21. The accompanying notes form part of these financial statements.

30 // STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2008

GROUP ACTUAL 31 DEC 08 $'000

BALANCE AT 1 JANUARY

GROUP BUDGET 31 DEC 08 $'000 NOTES

79,623

85,219

1,989

PARENT ACTUAL 31 DEC 08 $'000

PARENT BUDGET 31 DEC 08 $'000

GROUP ACTUAL 31 DEC 07 $'000

PARENT ACTUAL 31 DEC 07 $'000

48,717

56,809

74,204

46,756

2,406

Amounts recognised directly in equity: Property, plant and equipment

Revaluation gains / (losses) taken to equity

5,937

4,775

22,365

763

5,419

1,961

TOTAL RECOGNISED INCOME AND EXPENSE

87,549

89,994

73,488

57,572

79,623

48,717

Capital Contribution

10,451

BALANCE AT 31 DECEMBER

98,000

89,994

83,939

57,572

79,623

48,717

Surplus / (deficit) for the year

The accompanying notes form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY // 31

STATEMENT OF FINANCIAL POSITION As at 31 December 2008

GROUP ACTUAL 31 DEC 08 $'000

GROUP BUDGET 31 DEC 08 $'000 NOTES

PARENT ACTUAL 31 DEC 08 $'000

PARENT BUDGET 31 DEC 08 $'000

GROUP ACTUAL 31 DEC 07 $'000

PARENT ACTUAL 31 DEC 07 $'000

CURRENT ASSETS 13,103

36,428

12,384

30,244

21,861

17,416

Debtors and other receivables

1,659

1,722

1,572

1,724

531

519

Inventories

1,535

3,018

759

1,800

2,183

899

21,750

20,250

38,127

41,168

35,004

33,768

24,614

18,873

10,093

4,963

15,844

26,441

11,923

34,057

200

6,283

4,403

10(a)

5,832

4,278

3,703

3,440

291

10(b)

291

Intercompany payable

3,067

Current portion of term liabilities

520

TOTAL CURRENT LIABILITIES

16,667

9,566

25,034

30,919

16,155

38,026

WORKING CAPITAL SURPLUS / (DEFICIT)

21,460

31,602

9,970

2,849

8,459

(19,153)

3,500

65,787

68,667

63,870

66,771

62,616

60,249

Investment properties

4,300

5,270

Intangible assets

2,953

4,725

2,298

2,952

3,278

2,350

76,540

73,392

73,969

69,723

71,164

67,870

15,000

98,000

89,994

83,939

57,572

79,623

48,717

88,102

89,994

73,918

57,572

71,714

41,102

9,898

10,021

7,909

7,615

98,000

89,994

83,939

57,572

79,623

48,717

Cash and cash equivalents

Prepayments Other financial assets Rental income receivable TOTAL CURRENT ASSETS

CURRENT LIABILITIES Creditors and other payables Student fees Employee entitlements Provision for onerous leases

15(b)

NON-CURRENT ASSETS Investment in MO1 Other financial assets Property, plant and equipment

TOTAL NON-CURRENT ASSETS

NON-CURRENT LIABILITIES Suspensory loan Total non-current liabilities NET ASSETS

15(d)

EQUITY Retained earnings Asset revaluation reserve TOTAL EQUITY

The accompanying notes form part of these financial statements. For and on behalf of the Council:

30.4.09

Richard Batley, Council Chairperson

Bentham Ohia, Te Pouhere

BMS (Waikato), CA

Exec MBA, Dip Tchg, BA

32 // STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS for the year ended 31 December 2008

GROUP ACTUAL 31 DEC 08 $'000

GROUP BUDGET 31 DEC 08 $'000 NOTES

PARENT ACTUAL 31 DEC 08 $'000

PARENT BUDGET 31 DEC 08 $'000

GROUP ACTUAL 31 DEC 07 $'000

PARENT ACTUAL 31 DEC 07 $'000

125,392

140,188

126,971

140,188

119,621

127,343

20,898

1,921

1,860

1,654

1,710

1,751

1,659

127,313

142,048

149,523

141,898

121,372

129,002

Payments to employees

60,549

51,977

55,400

54,022

63,827

58,480

Payments to suppliers

50,575

77,965

79,309

81,034

29,949

45,421

136

800

136

800

497

111,260

130,742

134,845

135,856

94,273

104,398

16,053

11,306

14,678

6,042

27,099

24,604

3,067

1,446

1,366

1,563

1,434

1,446

4,433

1,563

1,434

11,021

8,335

10,561

7,535

4,610

4,248

Software development

218

Programme development

219

1,480

219

730

121

25,250

23,750

36,708

9,815

34,594

8,265

4,731

4,369

(35,262)

(9,795)

(30,161)

(8,265)

(3,168)

(2,935)

10,451

15,000

10,451

15,000

10,451

15,000

10,451

15,000

Aotearoa Institute mortgage repayment

1,515

Settlement of debt

6,000

7,515

NET CASH FLOWS FROM FINANCING ACTIVITIES

10,451

15,000

10,451

15,000

(7,515)

Net increase / (decrease) in cash and cash equivalents

(8,758)

16,511

(5,032)

12,777

16,416

14,154

(24)

Cash and cash equivalents 1 January

21,861

19,917

17,416

17,467

5,469

3,286

CASH AND CASH EQUIVALENTS 31 DECEMBER

13,103

36,428

12,384

30,244

21,861

17,416

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Operating income Dividends Interest received Cash was applied to:

Interest paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOW FROM INVESTING ACTIVITIES Cash was provided from: Funds from MO1 Ltd Sale of property, plant and equipment Cash was applied to: Purchase of property, plant and equipment

Term deposits

NET CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES Cash was supplied from: Capital contribution Cash was applied to:

Gain / (loss) on foreign exchange

The accompanying notes form part of these financial statements. STATEMENT OF CASH FLOWS // 33

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2008

1. Statement of Accounting Policies for the Year Ended 31 December 2008 REPORTING ENTITY

Functional and presentation currency

Te Wänanga o Aotearoa is a Crown Entity and is established under the Education Act 1989 as a public tertiary institution and is domiciled in New Zealand.

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($'000). The functional currency of Te Wänanga o Aotearoa is New Zealand dollars.

The primary objective of Te Wänanga o Aotearoa is to provide full-time and part-time tertiary education, as opposed to that of making a financial return.

Changes in accounting policies and estimates

The Te Wänanga o Aotearoa group consists of the ultimate parent Te Wänanga o Aotearoa and its subsidiary, MO1 Limited (100% owned). The subsidiary of Te Wänanga o Aotearoa is incorporated and domiciled in New Zealand.

The capitalisation threshold has risen from $500 to $5,000. Any purchases under $5,000 have been expensed in the statement of financial performance. This amounted to $1,519,000 for the Group.

Te Wänanga o Aotearoa has designated itself and the group as a public benefit entity for the purpose of New Zealand Equivalents to International Reporting Standards ("NZ IFRS"). The financial statements of Te Wänanga o Aotearoa for the year ended 31 December 2008 were authorised for issue on 30 April 2009 in accordance with a resolution of the councillors.

BASIS OF PREPARATION Statement of compliance The financial statements of Te Wänanga o Aotearoa have been prepared in accordance with the requirements of the Education Act 1989 and the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting standards ("NZ GAAP"). These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities

Measurement base The financial statements have also been prepared on a historical cost basis, except where modified by the revaluation of land and buildings and investment property.

34 // NOTES TO THE FINANCIAL STATEMENTS

In December 2008 Council approved a change in the asset capitalisation threshold effective 1st January 2008.

The subsidiary company MO1 Limited has changed its depreciation policy for computers from 5 years to 4 years to fall in line with the overall group policy amounting to $182,827.

Standard, amendments and interpretations issued that are not yet effective and have not been early adopted Standards, amendments and interpretations issued but are not effective that have not been early adopted, and which are relevant to Te Wänanga o Aotearoa include: NZ IAS 1 Presentation of Financial Statements (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (issued 2004) and is effective for reporting periods beginning on or after 1 January 2009. This revised standard will require information in financial statements to be aggregated on the basis of shared characteristics and introduces a statement of comprehensive income. The statement of comprehensive income will enable readers to analyse changes in equity resulting from non-owner changes separately from transactions with owners. The revised standard gives Te Wänanga o Aotearoa the option of presenting items of income and expense and components of other comprehensive income either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate income statement followed by a statement of comprehensive income). Te Wänanga o Aotearoa intends to adopt this standard for the year ending 31 December 2009, and is yet to decide whether it will prepare a single statement of

comprehensive income or a separate income statement followed by a statement of comprehensive income.

BASIS OF CONSOLIDATION The purchase method is used to prepare the consolidated financial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line-by-line basis. All significant intra-group balances, transactions, income and expenses are eliminated on consolidation.

Subsidiaries Te Wänanga o Aotearoa consolidates as subsidiaries in the group financial statements all entities where Te Wänanga o Aotearoa has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the entity. This power exists where Te Wänanga o Aotearoa controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by Te Wänanga o Aotearoa or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary. Te Wänanga o Aotearoa measures the cost of a business combination as the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, in exchange for control of the subsidiary plus any costs directly attributable to the business combination.

net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill. If the interest of Te Wänanga o Aotearoa in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised exceeds the cost of the business combination, the difference will be recognised immediately in the statement of financial performance. Investments in subsidiaries are carried at cost in the "parent entity" financial statements of Te Wänanga o Aotearoa.

Going concern Reliance is placed on the fact that Te Wänanga o Aotearoa is a going concern and that sufficient funds are available or become available to maintain current operations to at least their current level.

Foreign currency translation Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Any excess of the cost of the business combination over the interest of Te Wänanga o Aotearoa in the

2. Significant Accounting Policies NON-CURRENT ASSETS HELD FOR SALE Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in the statement of financial performance. Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have previously been recognised.

Non-current assets held for sale (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment asset classes consist of land, buildings, leasehold improvements, equipment, computers, furniture and fittings, motor vehicles, waka, library books and artwork. The measurement bases used for determining the gross carrying amount for each class of assets is as follows:

NOTES TO THE FINANCIAL STATEMENTS // 35

Land and buildings are measured at cost or valuation less subsequent accumulated depreciation on buildings and subsequent accumulated impairment losses. Artwork is held at cost and is not depreciated. All other asset classes are stated at cost less accumulated depreciation and any accumulated impairment in value.

Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment other than land, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Buildings

2.22 - 33.33%

3 to 45 years

Equipment

20%

5 years

Computers

25% - 50%

2 to 4 years

Furniture and Fittings

20%

5 years

Motor 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 are depreciated over the unexpired period of the lease or the estimated remaining useful life of the improvements, whichever is the shorter.

Impairment Assets held for educational and related matters and related activities are assessed for impairment by considering the assets for obsolescence, changes in useful life assessments, optimisation and other related matters. The carrying values of property, plant and equipment other than those with future economic benefits are not directly related to their ability to generate net cash are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future 36 // NOTES TO THE FINANCIAL STATEMENTS

cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses are recognised in the statement of financial performance. An impairment loss on a revalued asset is recognised directly against any revaluation surplus for that asset.

Revaluations Land and buildings are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value and at least every 2 years. Fair value is determined from market-based evidence by an independent valuer. All other asset classes are carried at depreciated historical cost. The carrying values of revalued items are reviewed at each balance date to ensure that those values are not materially different to fair value. Additions between revaluations are recorded at cost.

Accounting for revaluations Te W채nanga o Aotearoa accounts for revaluations of property, plant and equipment on a class of asset basis. The results of revaluing are credited or debited to an asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the statement of financial performance. Any subsequent increase on revaluation that off-sets a previous decrease in value recognised in the statement of financial performance will be recognised first in the statement of financial performance up to the amount previously expensed, and then credited to the revaluation reserve for the class of asset.

Additions The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to Te W채nanga o Aotearoa and the cost of the item can be measured reliably. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained.

Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying value amount of the asset. Gains and losses on disposals are included in the statement of financial performance.

When revalued assets are sold, the amounts included in revaluation reserve in respect of those assets are transferred to retained earnings.

INTANGIBLE ASSETS

Subsequent costs

Computer software is separately acquired and capitalised at its cost as at the date of acquisition. After initial recognition, separately acquired intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Te W채nanga o Aotearoa and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in the statement of financial performance as they are incurred.

INVESTMENT PROPERTIES An investment property is initially measured at its cost including transaction cost. Where an investment property is acquired at no cost or nominal cost, its cost is deemed to be its fair value as at the date of acquisition. Subsequent to initial recognition, investment properties are stated at fair value as at each balance sheet date. Gains or losses arising from changes in the fair values of investment properties are recognised in the statement of financial performance in the year in which they arise. Investment properties are de-recognised when they have either been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal. Any gains or losses on de-recognition of an investment property are recognised in the statement of financial performance in the year of de-recognition. Transfers are made to investment property when, and only when, there is a change in use, evidenced by ending of owner occupation or the commencement of an operating lease to another party. Transfers are made from investment property when, and only when, there is a change in use, evidenced by the commencement of owner-occupation. For a transfer from investment property to owner-occupied property, the deemed cost of property for subsequent accounting is its fair value at the date of change in use. If the property occupied by the Group as an owner-occupied property becomes an investment property, the Group accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use.

Computer software

Course development costs Course development costs relate to development of educational courses and are capitalised once accreditation has been received and when it is probable that future economic benefit arising from use of the intangible asset will flow to the Group. Following the initial recognition of the course development costs, the cost model is applied and the asset is carried at cost less accumulated amortisation and accumulated impairment losses.

Amortisation A summary of the policies applied to the Group's intangible assets is as follows: COMPUTER SOFTWARE

COURSE DEVELOPMENT COSTS

Useful lives

Finite - 5 years

Method used

Straight line method

Straight line method from course commencement

Internally generated / Acquired

Separately acquired

Internally generated / separately acquired

The amortisation period and amortisation method for each class of intangible asset having a finite life is reviewed at each financial year-end. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. The carrying value of each class of intangible asset is reviewed for indicators of impairment annually. Intangible assets are tested for impairment where an indicator of impairment exists. Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of financial performance when the asset is de-recognised. All other research and development costs are recognised as an expense in the statement of financial performance in the year in which it is incurred.

NOTES TO THE FINANCIAL STATEMENTS // 37

FINANCIAL ASSETS

INVENTORIES

All financial assets are initially recognised at cost, being the fair value of the consideration given and, in the case of a financial asset not at fair value through profit or loss, including acquisition charges associated with the financial asset.

Inventories held for distribution, or consumption in the provision of services, that are not issued on a commercial basis are measured at the lower of cost and net realisable value. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition.

After initial recognition, financial assets which are classified as available-for-sale are measured at fair value or at amortised cost in cases where the fair value cannot be reliably measured. Gains or losses on available-for-sale financial assets are recognised as a separate component of equity until the financial asset is sold, collected or otherwise disposed of, or until the financial asset is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the statement of financial performance. Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as heldto-maturity when the Group has the positive intention and ability to hold to maturity. Financial assets intended to be held for an undefined period are not included in this classification. Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Financial assets in bank deposits are classified as loans and receivables. Financial assets that are intended to be held-to-maturity or those classified as loans and receivables, are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any discount or premium on acquisition, over the period to maturity. For financial assets carried at amortised cost, gains and losses are recognised in income when the financial assets are de-recognised or impaired, as well as through the amortisation process. For financial assets where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the financial asset. Where the fair value cannot be reliably determined the financial assets are measured at cost.

38 // NOTES TO THE FINANCIAL STATEMENTS

The replacement cost of the economic benefits or service potential of inventory held for distribution reflects any obsolescence or any other impairment. The cost of purchased inventory is determined as follows: Inventories held for resale â&#x20AC;&#x201C; purchase cost on a weighted average cost; Materials and consumables to be utilised for rendering of services - purchase cost on a first-in, first-out basis. The write-down from cost to current replacement cost or net realisable value is recognised in the statement of financial performance in the period when the writedown occurs.

DEBTORS AND OTHER RECEIVABLES Student fees and other receivables are recognised and carried at original receivable amount less any provision for impairment. A specific provision for impairment is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

CASH AND CASH EQUIVALENTS Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

CREDITORS AND OTHER PAYABLES Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

BORROWING COSTS

SUPERANNUATION SCHEMES

Borrowing costs are recognised as an expense in the period in which they are incurred.

Defined contribution schemes

PROVISIONS Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed.

Obligations for contributions to Kiwisaver are accounted for as defined contribution superannuation scheme and are recognised as an expense in the statement of financial performance as incurred.

LEASES Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the statement of financial performance on a straight-line basis over the lease term.

REVENUE

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

EMPLOYEE ENTITLEMENTS

Government grants

Short-term employee entitlements Employee entitlements that Te W채nanga o Aotearoa expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date and sick leave. Te W채nanga o Aotearoa recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date to the extent Te W채nanga o Aotearoa anticipates it will be used by staff to cover those future absences.

Government grants are recognised when eligibility to receive the grant has been established and it is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the days of course completed as a percentage of total days for each course. Where funds have been received but not earned at balance date a Revenue in Advance liability is recognised. Government grants which are allocated to the Group with no restriction on use and in which the Crown has no future residual interest are considered equity injections and are reflected in the Statement of Changes in Equity.

Student tuition fees Revenue from student tuition fees is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the days of course completed as a percentage of total days for each course.

NOTES TO THE FINANCIAL STATEMENTS // 39

Rental income Rental income is recognised in the Statement of Financial Performance on an accrual basis.

Interest Revenue is recognised as the interest accrues (using the effective interest method which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

DIVIDENDS Dividends are received by Te W채nanga o Aotearoa from the subsidiary company, MO1 Limited. These dividends are recognised as revenue in the Statement of Financial Performance in the period in which they are received.

EQUITY Equity is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are: retained earnings; revaluation reserves; and capital contribution.

GOODS AND SERVICES TAX Revenues, expenses and assets are recognised net of the amount of GST except: where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed exclusive of GST.

40 // NOTES TO THE FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.

BUDGET FIGURES The budget figures are those approved by the Council at the beginning of the year. The budget figures have been prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.

FINANCIAL INSTRUMENTS Interest-bearing loans and borrowing All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of transaction costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs, and any discount or premium on settlement. Gains and losses are recognised in the statement of financial performance when the liabilities are de-recognised and as well as through the amortisation process.

Investments and other financial assets Investments and financial assets are categorised as either financial assets at fair value through statement of financial performance, loans and receivables, held-to-maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Designation is re-evaluated at each financial year end, but there are restrictions on reclassifying to other categories. When financial assets are recognised initially, they are measured at fair value, plus, in the case of assets not at fair value through Statement of Financial Performance, directly attributable transaction costs.

Recognition and de-recognition All regular way purchases and sales of financial assets are recognised on the trade date, i.e. the date that the Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial

assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the market place. Financial assets are de-recognised when the right to receive cash flows from the financial assets have expired or been transferred.

Financial assets at fair value through Statement of Financial Performance Financial assets classified as held for trading are included in the category financial assets at fair value through Statement of Financial Performance. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a profit. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on financial assets held for trading are recognised in profit or loss and the related assets are classified as current assets in the Statement of Financial Position.

Loans and receivables Loans and receivables including loan notes and loans to key management personnel are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the Statement of Financial Performance when the loans and receivables are de-recognised or impaired. These are included in current assets, except for those with maturities greater than 12 months after balance date, which are classified as non-current.

Available-for-sale investments Available-for-sale investments are those non-derivative financial assets, principally equity securities that are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for-sale securities are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is de-recognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the Statement of Financial Performance.

DE-RECOGNITION OF FINANCIAL INSTRUMENTS The de-recognition of a financial instrument takes place when the Group no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent third party.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group's principal financial instruments comprise receivables, payables, bank loans and overdrafts, available for sale investments, cash and short-term deposits. The Group manages its exposure to key financial risks, including interest rate and currency risk in accordance with the Group's financial risk management policy. The objective of the policy is to support the delivery of the Group's financial targets whilst protecting future financial security. The main risks arising from the Group's financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate, foreign exchange and commodity prices. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk, liquidity risk is monitored through the development of future rolling cash flow forecasts. Council reviews and agrees policies for managing each of these risks as summarised below. Primary responsibility for identification and control of financial risks rests with the Audit and Risk Committee under the authority of Council. Council reviews and agrees policies for managing each of the risks identified below, including the setting of limits for hedging cover of foreign currency and interest rate risk, credit allowances, and future cash flow forecast projections.

RISK EXPOSURES AND RESPONSES Interest rate risk The Group has no risk exposure to market interest rates as all interest bearing debt obligations were repaid during the year.

Foreign currency risk The Group only has limited exposure to foreign currency risk. All fees are denominated in NZ dollars to diminish risks associated with revenue streams. Where transactions in foreign currencies are forecast that are material to the Group forward exchange contracts are entered into to diminish the risk of the group to fluctuations in exchange rates.

NOTES TO THE FINANCIAL STATEMENTS // 41

Credit risk Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and other receivables, and available-for-sale financial assets.

determined. Management do not consider that the triggers for impairment testing have been significant enough and as such these assets have not been tested for impairment in this financial period.

The Group's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note. The Group does not hold any credit derivatives to offset its credit exposure. The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Group's policy to securitize its trade and other receivables. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures including an assessment of their independent credit rating, financial position, past experience and industry reputation. Risk limits are set for each individual customer in accordance with parameters set by the Council. These risk limits are regularly monitored.

Classification of assets and liabilities as held for sale

In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant. There are no significant concentrations of credit risk within the Group.

Valuation of investment properties

Liquidity risk The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans. The Group's policy is that not more than 33% of borrowings should mature in any 12 month period. At 31 December 2008, the Group had NIL borrowings (2007 - NIL).

KEY JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The following items have been included in the financial statements as a result of key judgements or estimates.

Operating lease commitments The Group has entered into commercial property leases on its property portfolio. The Group has determined that it retains all the significant risks and rewards of ownership of these properties and has thus classified the leases as operating leases.

Impairment of non-financial assets The Group assesses impairment of all assets at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. These include programme performance, technology, economic and political environments and future programme expectations. If an impairment trigger exists the recoverable amount of the asset is 42 // NOTES TO THE FINANCIAL STATEMENTS

The Group classifies assets and liabilities as held for sale when its carrying amount will be recovered through a sale transaction. The assets and liabilities must be available for immediate sale and the Group must be committed to selling the asset either through the entering into a contractual sale agreement or the activation and commitment to a program to locate a buyer and dispose of the assets and liabilities.

Capitalised programme development costs Development costs are only capitalised by the Group when it can be demonstrated that the technical feasibility of completing the intangible asset is valid so that the asset will be available for use or sale and that the programmes will provide positive cash flows.

The fair value of investment properties is determined by an appropriately qualified independent valuer with reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an armâ&#x20AC;&#x2122;s length transaction as at the valuation date.

Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience as well as manufacturers' warranties (for plant and equipment), lease terms (for leased equipment) and turnover policies (for motor vehicles). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.

3. Revenues and Expenses A. GOVERNMENT FUNDING GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Student Achievement Component Funding

83,926

105,062

83,926

105,062

Tertiary Education Organisation Component Funding

28,662

1,049

28,662

1,049

4,156

1,575

4,156

1,575

177

191

177

191

1,389

118,310

107,877

118,310

107,877

GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

2,697

3,030

2,697

2,542

275

788

275

788

Rent received

642

900

642

900

Canteen sales

323

213

323

213

Quality Reinvestment Plan Performance Based Research Fund Other Government Funding

B. OTHER INCOME

Contract income Profit on sale of assets Other income

Koha Lease income Motel room income MO1 Dividends Misc. income

433

365

433

365

1,930

2,077

20,898

555

2,554

385

2,949

4,988

7,929

27,646

9,913

Contract income relates to licences and subcontracting arrangements that the Group has with other institutions.

C. FINANCE (COSTS) / INCOME GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Loans and overdrafts

(136)

(497)

(136)

(497)

Interest earned on bank deposits

2,943

1,750

2,578

1,659

NOTES TO THE FINANCIAL STATEMENTS // 43

D. EMPLOYEE BENEFITS EXPENSE

Wages and salaries Employer contributions to defined contribution plans Termination expenses Increase/(decrease) in employee sick leave

GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

61,590

53,469

56,249

48,122

1,545

2,439

1,479

2,439

200

(201)

(34)

(201)

63,433

55,707

57,792

50,360

Employer contributions to defined contribution plans include contributions to Kiwisaver.

E. OTHER EXPENSES INCLUDE: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

459

Management fees

1,631

1,111

Rent

1,079

1,222

744

902

Fair value movement on financial instruments

Impairment of receivables

(321)

Minimum lease payments â&#x20AC;&#x201C; operating lease

4,611

3,381

4,611

3,380

282

271

Koha

210

182

206

169

Fees paid to auditor for audit services

226

235

190

195

Loss on sale of property, plant and equipment

Consultancy fees

6,266

4,850

5,135

3,793

Inventories consumed

3,104

5,806

1,595

1,308

200

Fees paid to auditor for other assurance services

Bad debts written off

The fees paid to auditor for other assurance services were for a review of a procurement policy.

44 // NOTES TO THE FINANCIAL STATEMENTS

4. EQUITY GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

71,714

66,295

41,102

39,141

5,937

5,419

22,365

1,961

Equity contribution

10,451

Balance at 31 December

88,102

71,714

73,918

41,102

Balance at 1 January

7,909

7,615

Revaluation gain/(losses)

1,989

2,406

Balance at 31 December

9,898

7,909

10,021

7,615

9,898

7,909

10,021

7,615

RETAINED EARNINGS Balance at 1 January Surplus/(deficit) for the year

ASSET REVALUATION RESERVE

Asset revaluation reserves consists of: Operational assets: - land and buildings

The Crown have made equity contributions to Te W채nanga o Aotearoa in line with the recommendations outlined in The W채nanga Capital Establishment Report - Waitangi Tribunal Report 1999 (WAI 718). To date the Crown has made Equity contributions of $51,691,000. A $20,000,000 suspensory loan agreement has been entered into. This will complete the equity contributions agreed to in 1999. The first $10,000,000 of the loan was received in June 2008. A further $5,000,000 is due in 2009 and the last payment of $5,000,000 will occur in 2010. The Crown provides Quality Reinvestment Fund (QRF) funding for projects run by Te W채nanga o Aotearoa. A number of these projects have been funded as an equity contribution. The total of this equity contribution in 2008 was $451,300 (2007 - NIL).

5. CASH AND CASH EQUIVALENTS GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Cash at bank and in hand

3,853

21,861

3,134

17,416

Term deposits with maturities less than 3 months

9,250

13,103

21,861

12,384

17,416

Total cash and cash equivalents

The carrying value of cash at bank and term deposits, with maturities less than three months, approximate their fair value. The weighted average effective interest rate for term deposits is 7.66% (2007 - NIL). There were no cash or cash equivalent balances held at 31 December 2008 that were not available for use by the group.

NOTES TO THE FINANCIAL STATEMENTS // 45

RECONCILIATION OF CASH FOR THE PURPOSE OF THE CASH FLOW STATEMENT For the purpose of the cash flow statement, cash and cash equivalents comprise the following as at 31 December: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Cash at bank and in hand

3,853

21,861

3,134

17,416

Term deposits with maturities less than 3 months

9,250

13,103

21,861

12,384

17,416

RECONCILIATION FROM THE NET SURPLUS TO THE NET CASH FLOWS FROM OPERATING ACTIVITIES GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

5,937

5,419

22,365

1,961

Depreciation / loss on disposal

7,450

9,820

7,039

9,200

Amortisation

1,224

1,155

797

617

Fair value (gain) / loss on investment properties

994

1,742

994

1,742

Fair value (gain) / loss on financial instruments

459

(273)

(500)

(275)

(500)

291

648

576

140

(106)

4,202

(129)

3,048

(50)

(9)

(Increase) / decrease in interest accrued

(1,022)

(924)

Increase / (decrease) in trade and other payables

(1,830)

129

(18,213)

3,974

282

(1,189)

282

(1,189)

Surplus / (deficit) ADD/(LESS) NON-CASH ITEMS:

Net (gain) on disposal of property, plant and equipment Net (gain) on onerous lease provision Net foreign exchange loss ADD/(LESS) MOVEMENTS IN WORKING CAPITAL ITEMS: (Increase) / decrease in inventories (Increase) / decrease in trade and other receivables (Increase) / decrease in prepayments

Increase / (decrease) in lease provision Increase / (decrease) in revenue received in advance Increase / (decrease) in provision for employee entitlements Net cash flow from operating activities

46 // NOTES TO THE FINANCIAL STATEMENTS

(72)

5,116

(72)

5,116

2,580

141

2,392

16,053

27,099

14,678

24,604

6. DEBTORS AND OTHER RECEIVABLES GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

743

1,130

734

1,109

1,022

924

533

437

533

437

Subsidiary (note 18)

Other related parties

Gross debtors and other receivables

2,298

1,642

2,203

1,627

Less provision for impairment

(639)

(1,111)

(631)

(1,108)

Total debtors and other receivables

1,659

531

1,572

519

Trade receivables Accrued interest Student fees receivable Related party receivables:

FAIR VALUE Miscellaneous debtors are non-interest bearing and receipt is normally on 30-day terms, therefore the carrying value of miscellaneous debtors approximates their fair value. Student debtors are non-interest bearing and receipt is normally on enrolment and no later than at graduation, therefore the carrying value of student debtors approximates their fair value.

IMPAIRMENT As of 31 December 2008 and 2007, all overdue debtors have been assessed for impairment and appropriate provisions applied. Te W채nanga o Aotearoa holds no collateral as security or other credit enhancements over receivables that are either past due or impaired. Movements in the provision for impairment of receivables are as follows: 2008 GROSS $'000

2007

IMPAIRMENT $'000

NET $'000

GROSS $'000

IMPAIRMENT $'000

NET $'000

1,017

307

(15)

292

Past due 1-60 days

122

(1)

121

(2)

Past due 61-120 days

147

(8)

139

(10)

Past due > 120 days

1,012

(630)

382

1,243

(1,084)

159

Total

2,298

(639)

1,659

1,642

(1,111)

531

GROUP Not past due

NOTES TO THE FINANCIAL STATEMENTS // 47

2008

2007

GROSS $'000

IMPAIRMENT $'000

NET $'000

GROSS $'000

IMPAIRMENT $'000

NET $'000

1,020

305

(15)

290

122

(1)

121

(2)

(7)

Past due > 120 days

1,012

(630)

382

1,243

(1,084)

159

Total

2,203

(631)

1,572

1,627

(1,108)

519

PARENT Not past due Past due 1-60 days Past due 61-120 days

The impairment provision has been calculated based on expected losses for Te W채nanga o Aotearoa's pool of receivables. Expected losses have been determined based on an analysis of Te W채nanga o Aoteaora's losses in previous periods, and a review of specific receivables, as detailed below: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Miscellaneous debt impairment

460

467

452

464

Student debt

179

644

179

644

Total provision for impairment

639

1,111

631

1,108

Miscellaneous impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor. An analysis of these individually impaired debtors is as follows: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Past due 1-60 days

Past due 61-120 days

Past due > 120 days

452

437

452

434

Total individual impairment

460

467

452

464

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Movements in the provision for impairment of receivables are as follows: GROUP 2008 $'000 At 1 January

1,111

856

1,108

853

Additional provisions made during the year

(314)

255

(319)

255

Receivables written off during the period

(158)

639

1,111

631

1,108

At 31 December

48 // NOTES TO THE FINANCIAL STATEMENTS

7. OTHER FINANCIAL ASSETS GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

18,250

16,750

3,500

21,750

20,250

Government bonds with maturities > 12 months

3,500

Total non-current portion

3,500

Total other financial assets

25,250

23,750

CURRENT PORTION Term deposits with maturities of 4-12 months Government bonds Total current portion

NON-CURRENT PORTION

FAIR VALUE The carrying amount of term deposits approximates their fair value.

GOVERNMENT BONDS The fair value of government bonds is $3,671,248 (2007 - NIL). Fair value has been determined by discounting cash flows from the instrument using a discount rate derived from relevant market inputs. The discount rate is 4.225%.

IMPAIRMENTS There were no impairment provisions for other financial assets. None of the assets are either past due or impaired.

8. INVENTORY GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Inventories held for distribution

1,535

2,165

759

881

Inventories - Business Studies

1,535

2,183

759

899

The carrying amount of inventories for distribution are measured at cost as at 31 December 2008 and therefore the carrying amount at current replacement cost is NIL (2007 - NIL). Inventories are made up of consumables and inventories held for distribution to campuses. Consumables are materials or supplies which will be consumed in conjunction with the delivery of services. These predominantly comprise books and resources used in the teaching of courses to students.

NOTES TO THE FINANCIAL STATEMENTS // 49

The write-off of inventories was due to a change in resources and technologies required in a number of programmes amounting to $116,000 (2007 - $265,000). There have been no reversals of write-offs (2007 - NIL). No inventories are pledged as security for liabilities.

9. CREDITORS AND OTHER PAYABLES GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

3,202

3,655

3,191

3,589

808

1,792

423

1,409

2,547

5,094

2,570

5,094

2,570

Pay As You Earn Tax

799

518

796

495

Goods and Service Tax

190

841

102

599

10,093

11,923

9,606

11,209

6,238

22,848

10,093

11,923

15,844

34,057

Trade payables Accruals MOE funding Quality Reinvestment Plan

PARENT 2007 $'000

Related party payable: Subsidiary

Creditors and other payables are non-interest bearing and are normally settled on terms varying between 7 days and 20th of the month following the invoice date. Therefore, the carrying value of trade and other payables approximates their fair value. For terms and conditions relating to related parties refer to note 19.

10. PROVISIONS A. EMPLOYEE ENTITLEMENTS GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Accrued salaries

1,621

1,162

1,473

899

Annual leave

4,487

2,382

4,234

2,382

175

159

125

159

6,283

3,703

5,832

3,440

Sick leave

Annual leave and sick leave entitlements expected to be settled within 12 months of the balance sheet date are measured at the current rates of pay and classified as current liabilities.

50 // NOTES TO THE FINANCIAL STATEMENTS

B. PROVISION FOR ONEROUS LEASES GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

1,198

291

(9)

(335)

(9)

(335)

Cash paid to settle obligation

(479)

Provision release following settlement

(375)

291

Balance at 1 January Additional provisions made Utilised during the year

Balance at 31 December

The provision for onerous leases relates to property leased by the Group, which is unoccupied. The provision remaining at December 2008 is in relation to one property in Rotorua. The provision remaining at December 2007 was for one property in Auckland. This lease expired on 23 January 2008.

NOTES TO THE FINANCIAL STATEMENTS // 51

52 // NOTES TO THE FINANCIAL STATEMENTS

36,462 2,732

Land $’000

344

Additions

Disposals

(1,127) 2,972 401

Depreciation

Disposals

Revaluations

Fully depreciated assets

Reclassifications (244)

33,972

31,514

11,375

17,919

NBV at 1 January 2008

NBV at 31 December 2008

Closing Accumulated Depreciation at 31 December 2008

Reclassifications

(2,490)

Opening Accumulated Depreciation at 1 January 2008

Reclassifications

Closing Cost at 31 December 2008

Reclassifications

31,758

(202)

Reclassifications

17,919

Fully depreciated assets

Revaluations

(52)

(7,182)

Land & Buildings $’000

(52)

49,433

45,347

(244)

401

2,972

(1,127)

(2,490)

49,677

(202)

(982)

Leasehold Improvements $’000

6,200

3,822

4,726

(5,704)

(10)

1,125

(1,141)

(5,678)

9,526

(1,125)

(25)

Equipment $’000

235

1,351

2,183

(3,405)

816

7,869

(1,317)

(10,773)

4,756

(1,063)

(7,869)

(209)

941

Computers $’000

3,076

1,296

2,331

(1,593)

444

10,233

(1,156)

(11,114)

2,889

(486)

(10,233)

(670)

833

Furniture & Fittings $’000 405

906

(2,074)

129

4,754

(612)

(6,345)

2,479

(137)

(4,754)

(66)

185

2,548

1,990

(2,578)

435

2,586

1,130

(1,071)

(5,658)

5,126

(458)

(2,586)

(1,168)

1,690

7,648

Motor Vehicles $’000

7,251

677

775

(495)

(77)

(439)

1,172

(42)

1,214

Waka $’000

13,445

1,091

971

1,091

971

Artworks $’000

12,956

2,495

2,379

(1,720)

331

(537)

(1,514)

4,215

(331)

(11)

664

3,893

Library $’000

10,404

463

545

(316)

272

(403)

(185)

779

(272)

321

730

VLC $’000

47,837

2,206

463

2,206

1,743

463

WIP $’000

Opening Cost at 1 January 2008

GROUP 2008

Buildings $’000

11,375

11. PROPERTY, PLANT AND EQUIPMENT

65,787

62,616

(18,129)

2,215

27,170

2,972

1,151

(7,441)

(44,196)

83,916

(2,219)

(27,170)

(982)

(2,243)

9,718

106,812

Total $’000

36,262 787 (628) 41

Land $’000

(364)

Additions

Disposals

Revaluations

Reclassification

(1,232) 56 -

Depreciation

Disposals

Revaluations

Reclassifications

34,948

33,972

11,739

11,375

NBV at 1 January 2007

NBV at 31 December 2007

Closing Accumulated Depreciation at 31 December 2007

Closing Cost at 31 December 2007

(2,490)

(1,314)

Opening Accumulated Depreciation at 1 January 2007

36,462

Closing Cost at 31 December 2007

11,375

Closing Cost at 31 December 2007

Land & Buildings $’000 45,347

46,687

(2,490)

(1,232)

(1,314)

47,837

Leasehold Improvements $’000

(992)

4,726

5,626

(5,678)

(1,127)

(4,580)

10,404

(41)

Equipment $’000

239

2,183

3,969

(10,773)

(2,055)

(8,718)

12,956

269

Computers $’000

787

2,331

2,324

(11,114)

(26)

(1,408)

(9,718)

13,445

(40)

1,443

Furniture & Fittings $’000 906

1,868

(6,345)

(994)

(5,351)

7,251

1,990

2,410

(5,658)

930

(1,271)

(5,317)

7,648

(993)

914

7,727

Motor Vehicles $’000

7,219

775

862

(439)

(87)

(352)

1,214

Waka $’000

12,042

971

967

971

967

Artworks $’000

12,687

2,379

2,610

(1,514)

(502)

(1,012)

3,893

271

3,622

Library $’000

10,206

545

651

(185)

1,198

(564)

(819)

730

(1,198)

458

1,470

VLC $’000

48,001

463

581

463

(2,077)

1,959

581

WIP $’000

Opening Cost at 1 January 2007

GROUP 2007

Buildings $’000

11,739

11. PROPERTY, PLANT AND EQUIPMENT (continued)

62,616

68,555

(44,196)

2,187

(9,240)

(37,181)

106,812

(5,300)

6,376

105,736

Total $’000

NOTES TO THE FINANCIAL STATEMENTS // 53

54 // NOTES TO THE FINANCIAL STATEMENTS

34,357 2,719

Land $’000

344

Additions

Disposals -

30,648

(1,988)

(1,090) 2,832 (246)

32,369

30,402

17,669

11,375

17,669

Opening Accumulated Depreciation at 1 January 2008

Depreciation

Disposals

Revaluations

Fully depreciated assets

Closing Accumulated Depreciation at 31 December 2008

NBV at 1 January 2008

NBV at 31 December 2008

Closing Cost at 31 December 2008

Fully depreciated assets

Revaluations

(52)

(6,376)

Land & Buildings $’000

(52)

48,071

43,744

(246)

2,832

(1,090)

(1,988)

48,317

(426)

Leasehold Improvements $’000

5,950

3,799

4,726

(5,690)

1,125

(1,137)

(5,678)

9,489

(1,125)

(25)

Equipment $’000

235

1,333

1,918

(3,367)

7,825

(1,304)

(9,888)

4,700

(7,825)

(209)

928

Computers $’000

3,063

1,247

1,987

(1,085)

9,649

(903)

(9,831)

2,332

(9,649)

(670)

833

Furniture & Fittings $’000 399

883

(2,051)

4,708

(603)

(6,156)

2,450

(4,708)

(66)

185

2,198

1,862

(2,410)

2,551

1,053

(976)

(5,038)

4,608

(2,551)

(1,102)

1,361

6,900

Motor Vehicles $’000

7,039

677

775

(495)

(77)

(439)

1,172

(42)

1,214

Waka $’000

11,818

982

967

982

967

Artworks $’000

11,806

2,495

2,379

(1,720)

331

(537)

(1,514)

4,215

(331)

(11)

664

3,893

Library $’000

10,404

463

545

(316)

272

(403)

(185)

779

(272)

321

730

VLC $’000

45,732

2,206

463

2,206

1,743

463

WIP $’000

Opening Cost at 1 January 2008

PARENT 2008

Buildings $’000

11,375

11. PROPERTY, PLANT AND EQUIPMENT (continued)

63,870

60,249

(17,380)

26,461

2,832

1,074

(7,030)

(40,717)

81,250

(26,461)

(426)

(2,177)

9,348

100,966

Total $’000

34,198 787 (628) -

34,357 (959)

(1,085) 56 -

(1,988)

Land $’000

(364)

11,375

Additions

Disposals

Revaluations

Fully depreciated assets

Opening Accumulated Depreciation at 1 January 2007

Depreciation

Disposals

Revaluations

Fully depreciated assets

Closing Accumulated Depreciation at 31 December 2007

33,239

32,369

11,739

11,375

NBV at 1 December 2007

NBV at 31 December 2007

Closing Cost at 31 December 2007

Land & Buildings $’000 43,744

44,978

(1,988)

(1,085)

(959)

45,732

Leasehold Improvements $’000 4,726

5,611

(5,678)

(1,124)

(4,554)

10,404

239

Equipment $’000

787

1,918

3,586

(9,888)

(1,906)

(7,982)

11,806

238

Computers $’000

(992)

1,987

1,956

(9,831)

(1,239)

(8,592)

11,818

1,270

Furniture & Fittings $’000 883

1,824

(6,156)

(970)

(5,186)

7,039

1,862

2,224

(5,038)

983

(1,165)

(4,856)

6,900

(981)

801

7,080

Motor Vehicles $’000

7,010

775

862

(439)

(87)

(352)

1,214

Waka $’000

10,548

967

Artworks $’000

11,568

2,379

2,610

(1,514)

(502)

(1,012)

3,893

271

3,622

Library $’000

10,165

545

651

(185)

1,198

(564)

(819)

730

(1,198)

458

1,470

VLC $’000

45,937

463

581

463

(2,077)

1,959

581

WIP $’000

Opening Cost at 1 January 2007

PARENT 2007

Buildings $’000

11,739

11. PROPERTY, PLANT AND EQUIPMENT (continued)

60,249

65,850

(40,717)

1,198

1,039

(8,642)

(34,312)

100,966

(1,198)

(4,050)

6,052

100,162

Total $’000

NOTES TO THE FINANCIAL STATEMENTS // 55

VALUATION Operational land and buildings At fair value as determined from market-based evidence by an independent valuer. The most recent valuation was performed by W Hickey of Jones Lang LaSalle and the valuation is effective as at 31 December 2008.

Total fair value of property, plant and equipment valued by valuer

W Hickey of Jones Lang LaSalle

GROUP 2008 $'000

PARENT 2008 $'000

45,449

44,089

No classes of property, plant and equipment were revalued in 2007.

12. INVESTMENT PROPERTIES GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

5,270

6,800

5,270

6,800

Fair gain / (loss) on valuation

(994)

(1,530)

(994)

(1,530)

Balance as at 31 December

4,300

5,270

4,300

5,270

Balance as at 1 January Additions (reclassification from PPE)

Te W채nanga o Aotearoa investment property is valued annually at fair value effective 31 December. The valuation was performed by W Hickey of Jones Lang LaSalle, in accordance with NZ IAS 40. Jones Lang LaSalle is a member of the New Zealand Institute of Valuers (Inc). Jones Lang LaSalle is an industry specialist in valuing these types of investment properties. The valuation undertaken was based on an open market value, supported by market evidence in which assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm's length transaction at the date of valuation. GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Rental income

520

780

520

780

Expenses from investment property not generating income

134

162

134

162

56 // NOTES TO THE FINANCIAL STATEMENTS

13. INTANGIBLE ASSETS Programme development costs were incurred in developing Mauri Ora programmes, Management and First Steps to Business. Externally Acquired Software $'000

Programme Development Costs $'000

Trademark $'000

2,322

5,516

Additions

339

Disposals

WIP $'000

Total $'000

7,843

343

764

(2,149)

Reclassification

359

Closing cost at 31 December 2008

614

5,855

343

6,817

(2,172)

(2,393)

(4,565)

(236)

(988)

(1,224)

Fully amortised assets

2,149

Reclassification

(224)

Closing Accumulated Amortisation at 31 December 2008

(483)

(3,381)

(3,864)

NBV at 1 January 2008

150

3,123

3,278

NBV at 31 December 2008

131

2,474

343

2,953

Externally Acquired Software $'000

Programme Development Costs $'000

Trademark $'000

WIP $'000

Total $'000

2,322

10,556

12,883

GROUP 2008 Opening Cost at 1 January 2008

Fully amortised assets

Opening Accumulated Amortisation at 1 January 2008 Amortisation Disposals

GROUP 2007 Opening Cost at 1 January 2007 Additions

121

Disposals

(5,161)

Impairment

2,322

5,516

7,843

(1,848)

(6,400)

(8,248)

(324)

(1,154)

(1,478)

5,161

(2,172)

(2,393)

(4,565)

NBV at 1 January 2007

474

4,156

4,635

NBV at 31 December 2007

150

3,123

3,278

Closing cost at 31 December 2007 Opening Accumulated Amortisation at 1 January 2007 Amortisation Disposals Closing Accumulated Amortisation at 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS // 57

Externally Acquired Software $'000

Programme Development Costs $'000

Trademark $'000

WIP $'000

Total $'000

2,152

3,207

5,364

Additions

339

343

745

Disposals

(2,079)

136

3,546

343

4,030

(2,020)

(994)

(3,014)

(136)

(661)

(797)

2,079

Closing Accumulated Amortisation at 31 December 2008

(77)

(1,655)

(1,732)

NBV at 1 January 2008

132

2,213

2,350

1,891

343

2,298

Externally Acquired Software $'000

Programme Development Costs $'000

Trademark $'000

WIP $'000

Total $'000

2,152

8,247

10,404

PARENT 2008 Opening Cost at 1 January 2008

Fully amortised assets Impairment Closing cost at 31 December 2008 Opening Accumulated Amortisation at 1 January 2008 Amortisation Disposals Fully amortised assets

NBV at 31 December 2008

PARENT 2007 Opening Cost at 1 January 2007 Additions

121

Disposals

(5,161)

Impairment

2,152

3,207

5,364

(1,734)

(5,538)

(7,272)

(286)

(617)

(903)

5,161

(2,020)

(994)

(3,014)

NBV at 1 January 2007

418

2,709

3,132

NBV at 31 December 2007

132

2,213

2,350

Closing cost at 31 December 2007 Opening Accumulated Amortisation at 1 January 2007 Amortisation Disposals Closing Accumulated Amortisation at 31 December 2007

There are no restrictions over the title of Te W채nanga o Aotearoa intangible assets, nor are any intangible assets pledged as security for liabilities.

58 // NOTES TO THE FINANCIAL STATEMENTS

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 into the Group financial statements.

15. INTEREST-BEARING LIABILITIES [A] CROWN LOAN In June 2008 Te W채nanga o Aotearoa received the first $10million of a $20million suspensory loan from the Crown in settlement of WAI 718. The funds are to be used on property, plant and equipment to enable the organisation to provide quality education to their students. (2007 - A facility of $10million provided by the Crown to provide a short term overdraft facility to the organisation expired on 30 November 2007).

[B] AOTEAROA INSTITUTE Market rent of $1,300,000 was imputed into the final settlement between Aotearoa Institute and Te W채nanga o Aotearoa in December 2006. This rent was for 20 months starting 1st January 2007 and ended on 31st August 2008 (2007 - $520,000).

[C] BNZ FACILITY The Group has an agreement with BNZ for a cash advance of $10million. This can be drawn down if required.

NOTES TO THE FINANCIAL STATEMENTS // 59

16. EARLY LEARNING CENTRES During the year Te Wänanga o Aotearoa received grants from the Ministry of Education for Early Learning purposes. 2008 $'000

2007 $'000

476

385

Low socio economic

Special needs

Language and kaupapa

Training

483

400

483

400

156

APAKURA TE KÁKANO Bulk funding Incentive funding

Total MOE funding received Funds applied to: Salaries

RAROERA TE KÁKANO Bulk funding Incentive funding Low socio economic Special needs

Training

Total MOE funding received

169

468

260

Special needs

Language and Kaupapa

506

289

506

289

542

304

Low socio economic

Special needs

Language and Kaupapa

Training

562

318

562

318

Funds applied to: Salaries

TE RAU ORIWA Bulk funding Incentive funding Low socio economic

Training Total MOE funding received Funds applied to: Salaries

RAROERA TE PUAWAI Bulk funding Incentive funding

Total MOE funding received Funds applied to: Salaries

60 // NOTES TO THE FINANCIAL STATEMENTS

17. FINANCIAL INSTRUMENTS Te Wänanga o Aotearoa has a series of policies to manage the risks associated with financial instruments. Te Wänanga o Aotearoa is risk averse and seeks to minimise exposure from its treasury activities. The policies do not allow any transactions that are speculative in nature to be entered into.

[A] CREDIT RISK Credit risk is the risk that a third party will default on its obligation to Te Wänanga o Aotearoa, causing Te Wänanga o Aotearoa to incur a loss. Due to the timing of its cash inflows and outflows, Te Wänanga o Aotearoa invests surplus cash into term deposits and government bonds which gives rise to credit risk. With the exception of student fees the Group trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant as a result of the ability to withhold graduation from students who do not pay their fees. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents and loans and receivables financial assets, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. There are no significant concentrations of credit risk within the Group.

Maximum exposure to credit risk Te Wänanga o Aotearoa's maximum credit exposure for each class of financial instrument is as follows: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Cash at bank and term deposits

31,353

21,861

29,134

17,416

Debtors and other receivables

1,659

531

1,572

519

Government bonds

7,000

40,012

22,401

37,706

17,944

Derivative financial instruments assets Total credit risk

Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor's credit ratings (if available) or to historical information about counterparty default rates: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

5,000

26,353

24,134

Total cash at bank and term deposits

31,353

29,134

AA to AA+

7,000

Total local authority and government stock

7,000

38,353

36,134

COUNTERPARTIES WITH CREDIT RATINGS Cash at bank and term deposits AA+

Term deposits, local authority and government stock

Total financial instrument assets

NOTES TO THE FINANCIAL STATEMENTS // 61

Debtors and other receivables mainly arise from Te W채nanga o Aotearoa statutory functions. Therefore, there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. Council has no significant concentrations of credit risk in relation to debtors and other receivables.

[B] FAIR VALUES Set out below is a comparison by category of carrying amounts and fair values of all the Group's financial instruments. Loans and Receivables $'000

Other Liabilities @ Amortised Cost $'000

Fair Value $'000

13,103

Accounts receivable

1,659

Other financial assets

21,750

(10,093)

3,500

3,671

40,012

(10,093)

30,090

21,861

531

Rental income receivable

Accounts payable

(11,923)

Current portion of term liabilities

(520)

22,401

(12,443)

9,958

12,384

Accounts receivable

1,572

Other financial assets

20,250

(15,844)

3,500

3,671

37,706

(15,844)

22,033

17,416

519

Rental income receivable

Accounts payable

(34,057)

Current portion of term liabilities

(520)

17,944

(34,577)

(16,633)

GROUP 2008 Cash and cash equivalents

Accounts payable Non-current other financial assets Current portion of term liabilities

GROUP 2007 Cash and cash equivalents Accounts receivable

PARENT 2008 Cash and cash equivalents

Accounts payable Non-current other financial assets Current portion of term liabilities

PARENT 2007 Cash and cash equivalents Accounts receivable

[C] LIQUIDITY RISK Management of liquidity risk Liquidity risk is the risk that Te W채nanga o Aotearoa will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Te W채nanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available. 62 // NOTES TO THE FINANCIAL STATEMENTS

Contractual maturity analysis of financial liabilities The table below analyses Te W채nanga o Aotearoa financial liabilities into relevant maturity groupings, based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows. Carrying amount Contractual cash $'000 flows $'000

Less than 1 year $'000

1-2 years $'000

2-5 years $'000

More than 5 years $'000

GROUP 2008 Creditors and other payables

10,093

TOTAL

10,093

Creditors and other payables

15,844

TOTAL

15,844

Creditors and other payables

11,923

TOTAL

11,923

Creditors and other payables

34,057

TOTAL

34,057

PARENT 2008

GROUP 2007

PARENT 2007

Contractual maturity analysis of financial assets The table below analyses Te W채nanga o Aotearoa financial assets into relevant maturity groupings, based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows. Carrying amount Contractual cash $'000 flows $'000

Less than 1 year $'000

1-2 years $'000

2-5 years $'000

More than 5 years $'000

GROUP 2008 Cash and cash equivalents Debtors and other receivables

13,103

1,659

1,527

132

18,250

7,000

3,500

40,012

36,380

132

3,500

12,384

1,572

1,440

132

16,750

7,000

3,500

37,706

34,074

132

3,500

Other financial assets - term deposits - government stock TOTAL

PARENT 2008 Cash and cash equivalents Debtors and other receivables Other financial assets - term deposits - government stock TOTAL

NOTES TO THE FINANCIAL STATEMENTS // 63

Carrying amount Contractual cash $'000 flows $'000

Less than 1 year $'000

1-2 years $'000

2-5 years $'000

More than 5 years $'000

GROUP 2007 Cash and cash equivalents

21,861

531

22,392

17,416

519

17,935

Debtors and other receivables TOTAL

PARENT 2007 Cash and cash equivalents Debtors and other receivables TOTAL

[D] SENSITIVITY ANALYSIS The tables below illustrate the potential profit and loss and equity (excluding retained earnings) impact for reasonably possible market movements, with all variables held constant, based on the financial instrument exposures of Te Wänanga o Aotearoa at the balance sheet date. 2008 $'000

INTEREST RATE RISK Profit

-100bps Other Equity

2007 $'000 Profit

+100bps Other Equity

NOTE

GROUP

-100bps Other Equity

Profit

+100bps Other Equity

Profit

FINANCIAL ASSETS 13,103

(131)

13,103

131

21,861

(219)

21,861

219

- government stock, term deposits

25,250

(253)

25,250

253

Total sensitivity to interest rate risk

38,353

(384)

38,353

384

21,861

(219)

21,861

219

Cash and cash equivalents Other financial assets:

Explanation of sensitivity analysis – Group [1] Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $13,052,093 (2007 - $21,860,866) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $131,000. Government stock A total of investments in government stock are classified at fair value through equity. A movement in interest rates of plus or minus 1.0% has an effect on the fair value through equity reserve of $253,000. 2008 $000

PARENT INTEREST RATE RISK Profit

-100bps Other Equity

2007 $000 Profit

+100bps Other Equity

NOTE

[2]

-100bps Other Equity

Profit

+100bps Other Equity

Profit

FINANCIAL ASSETS 12,384

(124)

12,384

124

17,416

(174)

17,416

174

- government stock, term deposits

23,750

(238)

23,750

238

Total sensitivity to interest rate risk

36,134

(362)

36,134

362

17,416

(174)

17,416

174

Cash and cash equivalents Other financial assets:

64 // NOTES TO THE FINANCIAL STATEMENTS

Explanation of sensitivity analysis – Parent [1] Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $12,384,209 (2007 - $17,415,400) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $124,000.

[2]

Government stock A total of investments in government stock and term deposits are classified at fair value through equity. A movement in interest rates of plus or minus 1.0% has an effect on the fair value through equity reserve of $238,000.

[E] CAPITAL MANAGEMENT Capital of Te Wänanga o Aotearoa is its equity, which comprises accumulated funds and other reserves. Equity is represented by net assets. Te Wänanga o Aotearoa is subject to the financial management and accountability provisions of the Tertiary Education Commission (TEC), who impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives. Te Wänanga o Aotearoa manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments, and general financial dealings to ensure Te Wänanga o Aotearoa effectively achieves its objectives and purpose, whilst remaining a going concern.

18. STATEMENT OF COMMITMENTS AND CONTINGENCIES [A] COMMITMENTS Operating lease commitments - Group as lessee The Group has entered into commercial leases on certain buildings where it is not in the best interest of the Group to purchase these assets. These leases have an average life of between 4 and 10 years with renewal terms included in the contracts. Renewals are at the option of the Group. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows: GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Within one year

3,442

3,223

3,300

3,063

After one year but no more than five years

1,118

3,492

1,078

3,397

4,560

6,716

4,378

6,461

More than five years

Operating lease commitments - Group as lessor The Group owns a number of buildings and has entered into commercial leases where it is not in the best interest of the Group to use these buildings for their operations. These leases have an average life of between 1 and 2 years with renewal terms included in the contracts. Renewals are at the option of the lessee. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals receivable under non-cancellable operating leases as at 31 December are as follows:

NOTES TO THE FINANCIAL STATEMENTS // 65

GROUP 2008 $'000

GROUP 2007 $'000

PARENT 2008 $'000

PARENT 2007 $'000

Within one year

333

2,264

333

2,264

After one year but no more than five years

101

182

101

182

434

2,446

434

2,446

No contingent rents have been recognised in the statement of financial performance during the period.

[B] CONTINGENCIES Personal grievances As at 31 December 2008, there were five open personal grievance claims against Te Wänanga o Aotearoa. Of these, three claims are considered low risk and unlikely to proceed. The other two claims could result in legal costs of approximately $5,000 each however they are also unlikely to proceed.

Contingent Liabilities Lawsuit Te Wänanga o Aotearoa has a contingent liability for settlement costs relating to performance management of a current employee. The estimated cost of settlement is $60,000 (2007 - $100,000). This has not progressed any further at this point. Government funding Te Wänanga o Aotearoa has a contingent liability of $588,653 (2007 - NIL) related to the creation of a new Early Learning Centre in Manukau. The condition surrounding the liability is that the centre should stay open for 10 years. Failure to achieve this will result in the repayment of the funding. Suspensory Loan Te Wänanga o Aotearoa has a $10,000,000 contingent liability (2007 - NIL) due to the first instalment of a $20,000,000 suspensory loan.

Contingent Asset Te Wänanga o Aotearoa has a $10,000,000 contingent asset due to the final instalments of a $20,000,000 suspensory loan. The second and third instalments of $5,000,000 each are due to be paid in June 2009 and June 2010. This loan is an equity contribution agreed to by the Crown.

19. RELATED PARTY DISCLOSURE The consolidated financial statements include the financial statements of Te Wänanga o Aotearoa and its subsidiary MO1 Limited.

Equity Interest

MO1 Limited

66 // NOTES TO THE FINANCIAL STATEMENTS

Investment

Country of Incorporation

2008 %

2007 %

2008 $'000

2007 $'000

New Zealand

100

19.1

HCW Holdings Limited (formally Power Chill NZ Limited) HCW Holdings Limited, trading as All Seasons Air (Waikato) Limited undertakes work for Te Wänanga o Aotearoa and MO1 Limited. Kingi Wetere is a Director of HCW Holdings Limited. Kingi Wetere has no influence over dealings that Te Wänanga o Aotearoa has with HCW Holdings Limited. Any dealings with HCW Holdings Limited by MO1 Limited are approved by Board Members. During 2008 $74,773 (2007 - $45,901) was paid to HCW Holdings Limited for work undertaken. At balance sheet date Te Wänanga o Aotearoa had an outstanding balance due to HCW Holdings Limited of $6,849 (2007 - NIL).

19.2

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 2008 Te Wänanga o Aotearoa paid MO1 Limited $24,098,995 (2007 - $21,816,415) for these services and MO1 Limited paid Te Wänanga o Aotearoa $2,673,846 (2007 - $2,054,898). At balance sheet date Te Wänanga o Aotearoa had an outstanding balance due to MO1 of $6,238,306 (2007 - $22,847,992) and a balance due from MO1 of $9,847 (2007 - $6,067).

19.3

Gallery 8 Ltd Marie Panapa is a member of Council of Te Wänanga o Aotearoa and is also a shareholder in Gallery 8 Ltd, an art gallery established to promote local art. In 2008 Te Wänanga o Aotearoa bought artwork as gifts which amounted to $15,751 (2007 - $285). There were no outstanding balances as at balance sheet date.

19.4

Tuia Group Parekäwhia McLean is a Council member of Te Wänanga o Aotearoa. Her brother-in-law is a partner of Tuia Group. Tuia Group is engaged to undertake legal work on behalf of Te Wänanga o Aotearoa. In 2008 this amounted to $467,341 (2007 - $347,038). As at balance sheet date Te Wänanga o Aotearoa had an outstanding balance due to Tuia Group of $100,095 (2007 - $36,778).

19.5

Te Wánanga o Raukawa Parekäwhia McLean is a Council member of Te Wänanga o Aotearoa. Her father-in-law is Chairperson of Te Wänanga o Raukawa. Te Wänanga o Raukawa invoiced Te Wänanga o Aotearoa for travel expenses to attend an Academic Board meeting. This amounted to $854 (2007 - NIL). There were no outstanding balances as at balance sheet date.

19.6

Tertiary Education Commission Deirdre Dale is a Council member of Te Wänanga o Aotearoa and also a Commissioner of the Tertiary Education Commission (TEC). TEC provides funding to Te Wänanga o Aotearoa to enable them to provide educational services. Te Wänanga o Aotearoa pays TEC for the reimbursement of the professional services of the Crown Manager. During 2008 Te Wänanga o Aotearoa paid TEC $528,708 and TEC paid Te Wänanga o Aotearoa $132,873,921 for these services. As at balance sheet date Te Wänanga o Aotearoa had an outstanding balance due to TEC of $11,499 for Crown Manager expenses (2007 - NIL).

19.7

The University of Auckland Manuka Henare is a Council member of Te Wänanga o Aotearoa and is also an employee of The University of Auckland. The University of Auckland supplies the Te Wänanga o Aotearoa library with documentation such as student theses.

NOTES TO THE FINANCIAL STATEMENTS // 67

During 2008 Te Wänanga o Aotearoa paid The University of Auckland $3,338 for these services. As at balance sheet date Te Wänanga o Aotearoa had an outstanding balance due to The University of Auckland of $675.

19.8

TVNZ June McCabe is a Director of Television New Zealand and is also a board member of MO1 Limited. MO1 Limited used TVNZ for marketing purposes on their morning programme during 2008. MO1 Limited paid TVNZ $117,438 for these services in 2008 (2007 - $58,050). As at balance sheet date, MO1 had an outstanding balance of $11,160 due to TVNZ (2007 - $10,350).

19.9

Unite Incorporated Unite Incorporated was not a related party in 2008. (2007 - Matt McCarten was a member of the Council of Te Wänanga o Aotearoa until April 2007. He was also the Secretary of Unite Incorporated, a trade union with a presence throughout New Zealand. In November 2006 Te Wänanga o Aotearoa entered into an agreement with Unite to offer a suite of programmes within the Unite network. In 2007 $745,330 was paid to Unite).

19.10

Aotearoa Institute Te Kuratini o Ngá Waka Trust Board (Aotearoa Institute) Aotearoa Institute is a trust that provides car parking to MO1 Limited. William Wetere is the brother of Kingi Wetere. Rongo Wetere is the father of Kingi Wetere. Both are trustees of Aotearoa Institute. The cost of leasing the car park at Rickett Rd in 2008 was $10,188 (2007 - $16,300). There were no outstanding transactions for MO1 Limited as at 31 December 2008 (2007 - NIL). (2007 - From June 2007, at the point of the Crown Manager handing back financial powers to Te Wänanga o Aotearoa, Aotearoa Institute was considered a related party due to Kingi Wetere being a member of the Board of Aotearoa Institute. Kingi Wetere resigned from the Board of Aotearoa Institute in late 2007). Property (2007 - Aotearoa Institute leases buildings to Te Wänanga o Aotearoa at commercial rental rates. In 2007 $1,023,000 was paid for these leases). (2007 - as at 31st December 2007, Aotearoa Institute had an outstanding balance due to Te Wänanga o Aotearoa of $27,011. Te Wänanga o Aotearoa had an outstanding balance due to Aotearoa Institute of $90,851).

19.11

GTL Investments Limited GTL Investments Limited is a fully owned subsidiary of Aotearoa Institute. MO1 Limited purchases student learning resources from GTL Investments Limited. MO1 purchased resources totalling $308,156 in 2008 (2007 - $1,900,000). There were no outstanding transactions for MO1 Limited as at 31 December 2008 (2007 - NIL). GTL Investments Limited is not a related party for the Parent in 2008. (2007 - Te Wänanga o Aotearoa purchased $2,222,222 of student resources from GTL Limited).

19.12

Glenview International Hotel and Conference Centre Limited The Glenview International Hotel and Conference Centre Limited is a fully owned subsidiary of Aotearoa Institute. The company leases from Te Wänanga o Aotearoa the accommodation and conference areas of the Glenview complex. The Glenview International Hotel and Conference Centre Limited was not a related party in 2008. (2007 - Te Wänanga o Aotearoa paid $152,533 to the organisation for motel accommodation and room hireage).

68 // NOTES TO THE FINANCIAL STATEMENTS

19.13

Ora Limited Susan Cullen (sister of Kingi Wetere) is the sole shareholder and director of Ora Limited. In 2008 Te Wänanga o Aotearoa had no dealings with Ora Limited. (2007 - Ora Limited had a sub-contracting arrangement with Te Wänanga o Aotearoa. $1,314,084 was paid to Ora Ltd for programme provision).

19.14

Wairau Property Developments Limited Susan Cullen (sister of Kingi Wetere) is the sole shareholder and one of the directors of Wairau Property Developments Limited. Te Wänanga o Aotearoa had no dealings with Wairau Property Developments in 2008. (2007 - Te Wänanga o Aotearoa leased a property from Wairau Properties until 1 March 2007 and paid them $21,094 for the lease).

19.15

Tainui Group Holdings Tainui Group Holdings was not a related party in 2008. (2007 - Hinerangi Raumati was the Chief Financial Officer for Tainui Group Holdings and a member of a subcommittee of Council of Te Wänanga o Aotearoa. Te Wänanga o Aotearoa was a tenant of Tobin Street, Pukekohe, premises owned by Tainui Group Holdings and paid rent to Tainui Group Holdings of $14,563).

19.16

Tainui Corporation Limited Tainui Corporation Limited was not a related party in 2008. (2007 - Hinerangi Raumati was the Chief Financial Officer for Tainui Group Holdings and a member of a subcommittee of Council of Te Wänanga o Aotearoa. Tainui Corporation Ltd is a wholly owned subsidiary of Tainui Group Holdings. Te Wänanga o Aotearoa paid Tainui Corporation Ltd $7,395 in respect of operating expenses for Tobin Street, Pukekohe).

19.17

Raukura Moana Fisheries Ltd Richard Batley is the Chairman of the Council of Te Wänanga o Aotearoa and was a director of Raukura Moana Fisheries Ltd until July 2008. As part of his agreement as Council member Te Wänanga o Aotearoa pay a reimbursement of $213 a month for cell-phone charges. This amounted to $1,496 (2007 - $3,493). Richard Batley resigned as Director of Raukura Moana Fisheries Ltd in July 2008.

19.18

University of Waikato This was not a related party in 2008. (2007 - Craig Coxhead was the Chairperson of Council of Te Wänanga o Aotearoa and was also an employee of University of Waikato. Tamati Reedy was a Council member of Te Wänanga o Aotearoa and an employee of University of Waikato. Te Wänanga o Aotearoa uses the University of Waikato for external courses for employees - 2007 $1,635).

Terms and conditions of transactions with related parties Providing of services to and purchases from related parties are made in arm's length transactions at both normal market prices and normal commercial terms. Outstanding balances at 31 December 2008 and 2007 are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables. For the year end 31 December 2008, the Group has not raised any provision for impairment of receivables relating to amounts owed by related parties as the payment history has been excellent (2007 - NIL). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates in. When assessed as required the Group raises such a provision. NOTES TO THE FINANCIAL STATEMENTS // 69

Council Remuneration Wages and salaries includes Te Mana Whakahaere and sub-committees remuneration of $126,240 (2007 - $247,431) distributed as follows: 2008 $'000

2007 $'000

157

Craig Coxhead

Council

Lisa Tipping

Audit & Risk

Richard Batley

Council / Audit & Risk

Richard Jones

Audit & Risk

Hinerangi Raumati

Audit & Risk

Lloyd Anderson

Council / Audit & Risk

Jo Davey

Council

Neville Baker

Council

Tania Hodges

Council

June McCabe

Council

Parekáwhia McLean

Council

Tamati Reedy

Council

Matt McCarten

Council

Mana Forbes

Council

Peter Joseph

Council

Deidre Dale

Council

Manuka Henare

Council

Audit & Risk

126

248

2008 $'000

2007 $'000

Richard Batley

Lloyd Anderson

2008 $'000

2007 $'000

1,331

1,358

Council

126

248

Crown Management payments

529

604

1986

2,210

GROUP 2008 $'000

GROUP 2007 $'000

1,986

1,936

274

1,986

2,210

Wayne McLean

Directors fees paid by MO1 Limited were as follows:

June McCabe

Key Management Personnel Compensation Kaihautú

Short term and employee welfare benefits Termination payments

70 // NOTES TO THE FINANCIAL STATEMENTS

20. EVENTS AFTER THE BALANCE SHEET DATE There were no significant events occurring after the Balance Sheet date.

21. PERFORMANCE AGAINST BUDGET Group Ministry of Education funding exceeded budget due to being within the specified 3% threshold and therefore being able to recognise all revenue ($2.2million). Group other government funding is lower than budget due to lower Quality Reinvestment Plan revenue being recognised than was budgeted ($4.8million). Other income has exceeded budget due to an extra $1million in interest income. This has occurred through improved cash management processes in 2008. Costs are under budget by $2.1million principally due to lower than budgeted spend on Quality Reinvestment Plan projects during 2008.

NOTES TO THE FINANCIAL STATEMENTS // 71

RÁRANGI WHAKAMÁRAMA GLOSSARY Words in this glossary are defined according to their usage at Te Wänanga o Aotearoa. In any language, a word may have a number of meanings with subtle nuances and shades of meaning depending on context. This is particularly so for the Mäori language. As an oral language, meanings may vary quite markedly depending not only on context, but also on intonation when a word is spoken. Knowledge of concepts that underpin kupu Mäori can also alter, or add to, the apparent meanings of words. It should be noted that this glossary does not provide global meanings for the words contained here. For additional meanings of kupu Mäori, refer to the Dictionary of the Mäori Language by H.W Williams (ISBN 186956-045-0).

Áhua

Ápiha Kirimana

essence, character or appearance of something or someone that generates an understanding of its nature and state of being

Contract Officer

Áhuatanga likeness; characteristic

Ako learn; teach (see tikanga whakaako)

Ako Whakatere

Ápiha Mátaki Taituará Security Monitoring Officer

Ápiha Púrongo Records Officer

Ápiha Pútea Tauira Student Finance Officer

Ápiha Rárangi Utu

learning delivery approach developed by TWoA that uses holistic and active/experiential learning approaches and strategies

Payroll Officer

Ákonga

Student Support Officer

a learner engaged in the tikanga whakaako process in a field in which he or she has some previous experience (See Tauira)

Ao world; daytime

Aotearoa long white cloud; New Zealand

Apakura Tainui ancestor and tribe; name of the Te Awamutu campus

Ápiha officer

Ápiha Hokohoko Purchasing Officer

Ápiha Kaiutu Kaute Accounts Payable Officer

Ápiha Tautoko Tauira Ariki leader; noble rank / status

Aroha love; compassion; affectionate regard

Aromatawai assessment

Aronui humanities

Atua a god; demon; supernatural being

Awhi embrace; foster; cherish

Áwhina assist; benefit; befriend

Hangarau technology

72 // RÁRANGI WHAKAMÁRAMA - GLOSSARY

Hapú

Kaiárahi Matua (Toi)

subdivision of a tribe; or sub-tribe

Curriculum Portfolio Leader (Arts)

Hauora

Kaiárahi Matua (Umanga)

health; vigour; spirit of life

Curriculum Portfolio Leader (Careers)

Híkoi / Whíkoi

Kaiarataki

step; walk; journey or trip

leader

Hímene

Kaiarataki Hanganga

hymn

Infrastructure Team Leader

Hinengaro

Kaiarataki Kótuitui

mind; Intellectual and /or emotional dimension of a person or group

Networks Engineer Team Leader

Hoamahi

Audit Team Leader

colleague

Hoe paddle; row; convey a canoe

Hongi a greeting by the pressing of noses

Hou new

Hui assemble; gather; meet

Ingoa name

Iti small; unimportant

Kaiarataki Mátaki Kaiarataki Rárangi Utu Payroll Team Lead

Kaiarataki Take Kaimahi HR Consultant Team Leader

Kaiarataki Tautoko Hangarau Help Desk Team Leader

Kaiarataki Tautoko Tauira Student Support Team Leader

Kaiarataki Tautoko VLC VLC Help Desk Team Leader

Kaiarataki: Te Púnga Curriculum Development Hub Leader

Kaiarataki Whakahaere Túpono

Iwi

Risk Management Team Leader

group of hapü who are linked by tüpuna and blood; tribe

Kaiarataki Whakapoapoa

Kaha strong; able; strength

Kaiako tutor

Kaiako Matua senior kaiako

Kaiárahi Mátauranga Curriculum Portfolio Owner

Kaiárahi Matua (Aronui) Curriculum Portfolio Leader (Humanities)

National Team Leader

Kaiarataki Whakarite Administrator Team Lead

Kaiáwhina Personal Assistant

Kaiáwhina Marautanga Personal Assistant to the Kaihautü: Marautanga

Kaiáwhina Pátengi Raraunga Database Support

Kaiáwhina Ratonga Hangarau Technical Services Administrator / PA

Kaiárahi Matua (Mátauranga Máori) Curriculum Portfolio Leader (Mäori Education)

RÁRANGI WHAKAMÁRAMA - GLOSSARY // 73

Kaiáwhina Whakahaere Púrongo

Kairautaki Máori

Personal Assistant to the Kaihautü: Information Management

Strategic Advisor Mäori

Kaiáwhina Whakaú Kounga Ako

Careers Coordinator

Administrator / Personal Assistant

Kaihautú Executive Director

Kaihoahoa Whakairoiro Graphic Designer

Kaihoko Raupapa Acquisitions Serials Librarian

Kaihoko Túturu Procurement Specialist

Kaikaranga person issuing a call of welcome

Kaimahi staff member; staff

Kaipúkaha Hiko Desktop Engineer

Kaipúkaha Kótuitui Networks Engineer

Kaipupuri Kiritaki Client Services

Kairaraunga Whakawhiwhinga Tauira Academic Data Administrator

Kairaupapa-á-Kupu Literacy Librarian

Kairaupapa-á-Rohe Regional Librarian

Kairaupapa Púnaha Systems Librarian

Kairaupapa Púranga Kórero Ref /Circulation Librarian

Kairaupapa Takawaenga Liaison Librarian

Kairaupapa Tautoko Assistant Librarian

Kairaupapa Táutu Pukapuka Interloans Librarian

Kairuruku Mahi Kairuruku Pánui Advertising Coordinator

Kairuruku Pánui Matua Senior Advertising Coordinator

Kairuruku Rangahau Research Coordinator

Kairuruku Raraunga Database Coordinator

Kairuruku Raraunga Matua Senior Database Coordinator

Kairuruku Rauemi Tauira Student Resource Coordinator

Kairuruku Rawa Property Coordinator

Kairuruku Taituará-á-Rohe Regional Security Coordinator

Kairuruku Táruru Fleet Coordinator

Kairuruku Whakaarahi Tracking Coordinator

Kairuruku Whakapápátanga Communications Centre Coordinator

Kairuruku Whakapoapoa Matua Senior Marketing Coordinator

Kairuruku Whakatítari Asset Dispatch Coordinator

Kairuruku Whakatoha Distribution / Graduation Coordinator

Kaitátai analyst

Kaitátai Raraunga Academic Data Analyst

Kaitátai Umanga Business Analyst

Kaitátari auditor

74 // RÁRANGI WHAKAMÁRAMA - GLOSSARY

Kaitátari Matua

Kaiwhakaahu Rauemi

Lead Auditor

Resource Developer

Kaitautoko

Kaiwhakahaere

Assistant; support person

Manager

Kaitautoko Hangarau

Kaiwhakahaere-á-Mahi

Field Support Technician

Operations Manager

Kaitautoko Kaute

Kaiwhakahaere-á-Rohe

Assistant Accountant

Regional Manager

Kaitautoko Mátauranga

Kaiwhakahaere Arai i ngá Túpono

Academic Support Manager

Audit and Risk Manager

Kaitautoko Whakarite

Kaiwhakahaere Hauora me te Haumaru

Administration Support

Health and Safety Manager

Kaitiaki

Kaiwhakahaere Kaupapa Hangarau

guardian; Mahi Ora programme tutor

Technology Project Manager

Kaitiaki Raupapa

Kaiwhakahaere Kaute

Library Assistants

Accounting Manager

Kaitiakitanga

Kaiwhakahaere Mátauranga

guardianship

Academic Manager

Kaitohutohu

Kaiwhakahaere o te Whare

advisor

Facilities Manager

Kaitohutohu Huanga Matua

Kaiwhakahaere Pánga

QMS Senior Advisor

Relationship Manager

Kaitohutohu Kaupapa me te Akoranga

Kaiwhakahaere Papa Ákonga

HR Policy and Programmes Advisor

Site Manager

Kaitohutohu Raraunga Rákaunui - Räkaunui Database

Kaiwhakahaere Púrongo

Advisor

Records Information Manager

Kaitohutohu Tautoko Tauira

Kaiwhakahaere Pátea

Student Support Advisor

Finance Manager

Kaitohutohu Ture

Kaiwhakahaere Raraunga Whakawhiwhinga Tauira

Legal Advisor

Academic Data Unit Manager

Kaitohutohu Whakapakari Kaimahi

Kaiwhakahaere Ratonga Hangarau

Professional Development Advisor

Technical Services Manager

Kaitoro

Kaiwhakahaere Ratonga Kiritaki

technician

Customer Services Manager

Kaitoro Waea

Kaiwhakahaere Rauemi me ngá Kirimana

Telecommunications Technician

Resource and Contracts Manager

Kaitoro Waea Matua

Kaiwhakahaere Rautaki

Senior Telecommunications Technician

Strategic Quality Assurance Manager

Kaitúruki Pakihi

Kaiwhakahaere Taituará

Business Developer

Security Manager RÁRANGI WHAKAMÁRAMA - GLOSSARY // 75

Kaiwhakahaere Take Kaimahi

Kaiwhakarite Púnaha Pútea

HR Operations Manager

Finance System Administrator

Kaiwhakahaere Tautoko Hangarau

Kaiwhakarite Rauanga Táruru Matua

Support Services Manager

Fleet Database Administrator

Kaiwhakahaere Tautoko Tauira

Kaiwhakarite Raupapa

Student Support Services Manager

Administrative Librarian

Kaiwhakahaere Whakapoapoa

Kaiwhakarite Tautoko Tauira

National Marketing Manager

Student Support Administrator

Kaiwhakahaere Whakauru Tauira

Kaiwhakarite Whakauru Tauira

Student Registry Unit Manager

Student Registry Administrator

Kaiwhakahaere Whakawhanake Kaimahi

Kákano

HR Development Manager

seed; kernel

Kaiwhakahanga

Kanohi

Designer

face

Kaiwhakahanga Marautanga

Kanohi ki te kanohi

Curriculum Designer

face to face

Kaiwhakamátaki

Kapa Haka

reviewer

haka group

Kaiwhakamátaki Akoranga

Karakia

Programme Reviewer

incantation; similar to the western concept of prayer

Kaiwhakarite

Karanga

Administrator

a call (usually of welcome)

Kaiwhakarite Hauora me te Haumaru

Katoa

Health and Safety Coordinator

all; the whole; altogether

Kaiwhakarite Kirihauá

Kaumatua / Kaumátua

Disability Administrator

elder/s

Kaiwhakarite Marautanga

Kaupapa

Curriculum Administrator

theme; philosophy; topic; agenda

Kaiwhakarite Matua

Kaupapahere

Senior Administrator

policy

Kaiwhakarite Matua o Te Mana Whakahaere

Kaupapahere Kaupapa Huanga

Council Senior Administrator

QMS Policy Analyst

Kaiwhakahaere o te Pátaka Raupapa

Kaupapahere Matua

Library Manager

Senior Analyst

Kaiwhakarite Papa Ákonga

Kaupapahere Púnaha Púrongo

Site Administrator

Information Systems Analyst

Kaiwhakarite Pouhere

Kaupapahere Whakaaenga me te Tohutuku Kawa

Administrator to the Pouhere

Approval and Accreditation Analyst

Kaiwhakarite Pouhere Matua

Kaupapahere Whakaú Kounga Ako

Senior Administrator to the Pouhere

Delivery Analyst

76 // RÁRANGI WHAKAMÁRAMA - GLOSSARY

Kawa

Kuia

Protocol

elderly woman

Kete

Kuki Airani

basket traditionally made from flax

Cook Islands

Kíngitanga

Kupu

Mäori King movement

word

Kirikiriroa

Kura

Hamilton; from the ‘long, gravel bed’ of the Waikato River as it flows through the city

school

Kiripaepae Matua Ratonga Kiritaki

work

Senior Customer Services Representative

Kiripaepae Ratonga Kiritaki Customer Services Representative

Kiritake Kaimahi Junior HR Consultant

Kiritake Kaimahi Matua HR Consultant

Koha gift (not exclusively materialistic)

Kóhanga nest

Kóhanga Reo language nest

Kókiri move forward

Komiti committee

Komiti Arai I ngá Túpono Council Audit and Risk Committee

Mahi Mana prestige; having influence of power

Mana whenua local people

Manaaki show respect or kindness to; entertain

Manaakitanga hospitality; respectfulness

Manawanui generosity, warm-heartedness

Mángai Matua Kaupapa Senior Cultural Ambassador

Maniapoto a Tainui tribe and ancestor; Te Kuiti campus

Manu bird

Manuhiri / Manuwhiri visitor

Manukau Campus

Komiti Áwhina

campus in South Auckland

a committee that provides input into programme development

Máoritanga

Koro / Koroua elderly man

Koroneihana coronation

Kotahitanga oneness; unity

Kówae ako module; paper

pertaining to Mäori

Marae communal gathering place

Márama light, not dark

Máramatanga enlightenment

Marau curriculum; curriculum area RÁRANGI WHAKAMÁRAMA - GLOSSARY // 77

Marautanga

Paepae

Curriculum Directorate

speaking platform

Mátauranga

Pákehá

knowledge; understanding

a person of European descent (generally)

Matua

Pánui

senior; male parent

newsletter; circular

Mátua

Papa Ákonga

parents

Delivery Site

Maunga

Papa Ruruku

mountain

Coordination Centre

Mauri

Papa Whakahaere

life principle

Management Centre

Mihi

Papaióea

to greet; a speech of greeting

traditional name given to the Palmerston North campus

Mihi Whakatau speech of welcome (less formal than a pöwhiri)

Papaióea Rohe

Moana sea

Te Wänanga o Aotearoa region that covers the area south of a line that joins Waitara, Waiouru and Napier, excluding Wellington and Porirua and the South Island

Moko

Papakainga

tattooing on the face or body

Mokopuna grandchild

Móteatea lament

Motu island

Motuhake special

Ngá plural of ‘te’

Ngahere forest

Ngáti

village

Pátaka storehouse

Pátaka Raupapa Library Unit

Poari board (trans.)

Pono true; honest

Pou Leader

Pou Marautanga Curriculum Leader

Pouako

tribal prefix

tutor

Noa

Pounamu

free from tapu or any other restriction

Noho Marae live-in or stay over (not exclusively on a marae)

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greenstone; jade

Poutoko Executive Assistant

Pówhiri / Póhiri

Reo

beckon; welcome; a ceremony to welcome visitors

language; speech

Pú

Ringa Hangarau

source; origin

Technical Services Librarian

Puna

Ringa Hangarau Tautoko

spring (of water)

Help Desk Technician

Púnaha Whakahaere

Rohe

procedure

region

Púrakau

Rongoá

ancient legend; myth

medicine;

Rá nehu

Rópú

burial day

group

Ráhui Pókeka

Rúnanga

Huntly campus

council

Rákaunui

Tainui Rohe

full moon – a time for sharing; academic database that holds information about curriculum and delivery

Te Wänanga o Aotearoa region that covers the western central region of the North Island from Pukekohe in the north, Mokau through to National Park in the south and from Tokaanu around the western side of Lake Taupo through Tokoroa and Matamata across to Katikati, and taking in the Coromandel Peninsula

Rangahau research

Rangatahi youth

Rangatira chief; leader; well-born noble

Rangatiratanga chieftainship; leadership

Raranga weaving

Támaki Makaurau bride sought by a hundred suitors, referring to the highly sought after land that is currently the site of Auckland City

Támaki Makaurau / Tai Tokerau Rohe Te Wänanga o Aotearoa region that covers the north of the North Island from North Cape to Papakura

Tamariki

Raroera

children

name of the pä of Tawhiao situated on the side of Maungatautari; Hamilton campus

Táne

Ratonga Kiritaki Customer Services

Ratonga Whakatikatika Rawa Facilities Services Unit

Raukawa a Tainui tribe and ancestor; Tokoroa campus

Rautaki strategy / strategic

Te Rautakinga

man; male

Tangata / Tángata person / people

Tangi to cry; to weep

Tangihanga formal ceremony during which relatives and friends mourn and honour the passing of a loved one

Taonga property; anything highly prized

Strategic Plan

RÁRANGI WHAKAMÁRAMA - GLOSSARY // 79

Tapu

Te Mana Whakahaere

under spiritual or religious restriction affecting persons, places or things

the Council of Te Wänanga o Aotearoa

Tauihu

Chief Executive Officer of Te Wänanga o Aotearoa

prow of a canoe; a forum within which Te Wänanga o Aotearoa, Te Wänanga o Raukawa and Te Wänanga o Awanuiärangi discuss issues relating to wänanga

Te Puna Mátauranga

Tauira

Te Puna Waihanga

a participant engaged a field of new learning (see Äkonga)

Tauiwi

Te Pouhere

Head Office

the Programme Development Committee of Te Wänanga o Aotearoa

Te Pátake

non-Maori

Rationale

Taupaepae Ratonga Kiritaki

Te Puáwaitanga

Customer Services Receptionist

graduation

Taupaepae VLC Kiritaki

Te Ranga Tuarua

VLC Help Desk Representative

Tier Two Managers

Tautoko

Te Rautiaki Mátauranga

support

the Academic Board of Te Wänanga o Aotearoa

Tau-utuutu

Te Tai Tonga Rohe

reciprocity

Te the

Te Anga Whakamua

Te Wänanga o Aotearoa region that covers Wellington, Porirua and the South Island

Tika right; correct

Tikanga

the move forward; the organisational restructure that occurred in 2006

custom; plan method (derived from Tika)

Te Ao Máori

Tikanga Whakaako

Te Ara Kókiri

a Mäori teaching and learning methodology that incorporates the concept that everyone has something to learn and something to teach.

the pathway to move forward; the Profile of Te Wänanga o Aotearoa

Tinana

Mäori worldview and its representations

Te Ara Waihanga Marau

body; trunk; the main part of anything

Tino

programme development and approval process of Te Wänanga o Aotearoa

an intensifier; a prefix used to give force or emphasis

Te Arawa

Tipuna / Túpuna

one of the great ocean-going waka that travelled from Hawaiki to Aotearoa and first landed near Cape Runaway; iwi residing in the Rotorua region

Te Káhui Rangahau Te Wänanga o Aotearoa Research Committee

Te Kete Te Wänanga o Aotearoa website

ancestor / ancestors

Tiriti transliteration of the word Treaty

Toa Rangatira a tribe of the Tainui people; the name of the Porirua campus

Tohu certificate; proof; sign; mark

80 // RÁRANGI WHAKAMÁRAMA - GLOSSARY

Toi

Umanga

art / arts programmes

business and computing programmes

Túápapa

Upoko

foundation; base; foundation programmes

head; upper part

Tukutuku

Wáhanga

woven wall panel

unit

Túpono

Wáhanga Arai i ngá Túpono

risk

Audit and Risk Unit

Tupuna / Túpuna

Wáhanga Pouhere

ancestor / ancestors

Office of the CEO

Turangawaewae

Wáhanga Raraunga Whakawhiwhinga Tauira

a place to stand; place of belonging

Academic Data Unit

Ture

Wáhanga Ratonga Hangarau

lore; law

Technical Services Unit

Turipuku

Wáhanga Ratonga Tautoko Tauira - Student Support

name of a fighting chief of Ngäti Whakaue, who lived near the current site of Rotorua campus; the name of Rotorua campus

Services Unit

Uara value

Uaratanga organisational mission statement

Uepú directorate

Uepú Marautanga Curriculum Directorate

Uepú Púreirei Whakamátau Teaching and Learning Directorate

Uepú Ratonga Tauira Student Services Directorate

Uepú Take Kaimahi Human Resources Directorate

Uepú Take Pútea Finance Directorate

Uepú Whakahaere Púrongo Information Management Directorate

Uepú Whakaú Kounga Ako Delivery Directorate

Úkaipútanga

Wáhanga Rautaki Strategic Unit

Wáhanga Whakahaere Pútea Finance Operations Unit

Wáhanga Whakapoapoa Marketing Unit

Wáhanga Whakaú Take Kaimahi Human Resources Operations Unit

Wáhanga Whakauru Tauira Student Registry Unit

Wáhanga Whakawhanake Kaimahi Human Resources Development Unit

Wahine woman; female

Waiariki Rohe Te Wänanga o Aotearoa region that covers the area from Katikati in the north, bounded by the Tainui Rohe in the west down to Turangi, then east taking in the Huiarau Range and north to Opötiki

Waiata to sing; a song

Wairua the spiritual dimension of a person, group or event.

to suckle; to nurture

RÁRANGI WHAKAMÁRAMA - GLOSSARY // 81

Waka Hourua

Whanaungatanga

double hulled, voyaging canoe

relationships, kinship

Wánanga

Whánui

place of higher learning

broad; wide; extend

Wánangatanga

Whare

essence of wänanga

house

Whaikórero

Wharekai

formal process of oratory

dining hall

Wháinga

Wharenui

goal; objective

traditional meeting house

Whaka

Wháriki

causative prefix

woven mat

Whakairo

Whenua

carving

land

Whakaiti

Whíkoi / Híkoi

to humble or to belittle (depending on context)

step; walk; journey or trip

Whakamá

Whirikóká

embarrassment; shame; to make clear, (depending on context)

a tipuna renowned for his relationship with the sea and the animals that live there; Gisborne campus

Whakamana

Whirikóká Rohe

to give prestige to; to empower

Te Wänanga o Aotearoa region that covers the East Cape and is bounded by the Waiariki Rohe to the east and the Papaiöea Rohe to the south

Whakamárama to illuminate; to enlighten

Whakamáramatanga creating enlightenment

Whakangáwari mitigation strategy

Whakanui to enlarge; to celebrate

Whakapapa ancestral lineage; genealogical table

Whakatauákí proverb, the author of which is known (see whakataukï)

Whakataukí proverb, the author of which is unknown (see whakatauakï)

Whakawhanaungatanga to create, or restore, relationships

Whánau family

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WINHEC World Indigenous Nations Higher Education Consortium

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