2010 Annual Report

TE PﾅｪRONGO ANNUAL REPORT 2010

Whﾄ］au Transformation through Education

Published in 2011

Address: Te Wānanga o Aotearoa

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Te Awamutu 3800 Phone: 0800 355 553 Web: www.twoa.ac.nz

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HELEN RANGIHUNA (Ngāti Porou) “WHĀNAU REVITALISATION” 2010

Mā te kaihanga o te rangi me te whenua tātou e tauwhiro Koia te uho o te ora Korōria ki tōna ingoa tapu E whakamānawa atu ana ki a Kīngi Tuheitia Noho mai rā i te mana, te tapu me te wehi Paimārire E kore e pau ngā tangi ki te iwi kua huri Haere whakangaro atu rā ki te mūnga o te tini Tāoki mai rā E ngā mana, e ngā reo, e ngā iwi puta noa Tēnā rā koutou katoa

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Te Uaratanga o Te Wānanga o Aotearoa The Mission Statement of Te Wānanga o Aotearoa Ko te whakarite mātauranga e hāngai ana ki ngā wawata o tēnei whakatupuranga, ki te whakaū hoki i ngā moemoeā o ngā whakatupuranga o te ao tūroa, ki te whakatikatika kia mārama ai ki te hā o te ao tawhito Ki te whakatō ki roto i te hinengaro tangata te mōhiotanga o ngā taonga tuku iho, tō tātou reo, tō tātou Māoritanga e pai ai tā rātou torotoro i ngā iwi o te ao i runga i te māia me te manawanui

To provide education that best fits the aspirations of this generation, enhances the dreams of future generations and prepares for understanding the essence of past generations 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 ones potential for learning as a base for progress in the modern world

Ki te whakamana i te pūmanawa moe ki te ako hei taumata e hīkoi whakamua i roto i te ao hou To make contributions of consequence Ki te whakatakoto tākoha e whai hua ai To care Kia manawapā ano Kia mutu tonu, he kāinga pai tēnei ao

To make our world a better place

Dr.

Buck Nin

Ko te Kaupapa o Te Wānanga o Aotearoa

GUIDING PRINCIPLES

The Purpose of Te Wānanga o Aotearoa

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Ki te whakawhiwhi i ngā mea angitū, ā, i ngā akoranga katoa tino teitei mō ngā Māori me ngā iwi o Aotearoa me te ao

To provide holistic education opportunities of the highest quality for Māori, peoples of Aotearoa and the world

Ki te waihanga i tētahi āhuatanga hei akoranga tikanga Māori

To provide a unique Māori cultural learning environment

Ki te whakawhiwhi i te mea akoranga whai kiko

To provide practical learning experiences

Ki te tautoko, ki te whakahau, ki te arahi i ngā tauira katoa, i a rātou e aru ana i ngā whanaketanga i ngā akoranga me ngā mahi e pā ana ki a rātou

To provide support, encouragement and guidance to all learners in their pursuit of personal development, learning and employment

Ki te whakahau i ngā tauira katoa ki te ako kia whiwhi ai rātou i te puāwaitanga tino teitei o te māiatanga

To encourage all learners to learn and achieve to their fullest potential

Ki te whakahau i ōna kaimahi, kia pai ai te haere o ngā tikanga o te mahi i whakaatu mai, kia whiwhi ai rātou i te puāwaitanga tino teitei o te māiatanga

To be a good employer and encourage staff to develop personally and professionally to their fullest potential

Ko Ngā Uara o Te Wānanga o Aotearoa The Values of Te Wānanga o Aotearoa Our values of Te Aroha, Te Whakapono, Ngā Ture and Kotahitanga are embedded in and woven through the actions we take to achieve successful outcomes for our tauira, as by achieving success for tauira we achieve success as an organisation. Our values also provide an ongoing cycle of evaluation and improvement that contributes to the achievement of our Kaupapa and our goals.

Te Wānanga o Aotearoa defines its values as follows:

Te Aroha

Kotahitanga

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

Unity amongst iwi and other ethnicities; standing as one

“Kotahi te kōhao o te ngira e kuhuna ai te miro mā, te miro pango te miro whero. A muri kia mau ki te whakapono, kia mau ki ngā ture, kia mau ki te aroha.”

There is but one eye of the needle through which must pass the white thread, the black thread and the red thread. Hold fast to faith, hold fast to the laws, hold fast to the love.

Ngā Ture

Te Whakapono

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

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

This whakatauakī was spoken by Pōtatau Te Wherowhero. It speaks of the beauty that can be gained when individual threads are woven together, and the strength that is gained through unity. This philosophy is at the core of our organisation’s origins. To us it represents the vision of providing quality education that is affordable and inclusive of all iwi and ethnicities.

GUIDING PRINCIPLES

nā Pōtatau Te Wherowhero

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MangakĹ?tukutuku Campus - Hamilton

Contents He Whakamaumahara............................................................................................................................................................ 1

Statements of Service Performance............................................................................................................... 47

Report from the Chair of Te Mana Whakahaere................................................................................ 5

Financial Report – 2010................................................................................................................................................... 53

Report from Te Pouhere..................................................................................................................................................... 6

Financial Review - 2010................................................................................................................................................................................54

Organisational Report - 2010...................................................................................................................................... 8 Overview............................................................................................................................................................................................................................. 9 Highlights - 2010...................................................................................................................................................................................................10 Organisational highlights....................................................................................................................................................................................... 10 Celebrating tauira success................................................................................................................................................................................... 17

Statement of Responsibility.....................................................................................................................................................................57 Independent Auditor’s Report...............................................................................................................................................................58 Statement of Comprehensive Income..........................................................................................................................................60 Statement of Changes in Equity..........................................................................................................................................................61

New programmes......................................................................................................................................................................................................... 24 Rangahau 2010 - Highlights................................................................................................................................................................................ 28

Statement of Financial Position..........................................................................................................................................................62

Governance and Management...............................................................................................................................................................29

Statement of Cash Flows.............................................................................................................................................................................64

Members of Te Mana Whakahaere............................................................................................................................................................... 30 Management...................................................................................................................................................................................................................... 31 Governance......................................................................................................................................................................................................................... 32 Matataki – Risk management............................................................................................................................................................................ 32

Notes to the Financial Statements..................................................................................................................................................67

Rārangi Whakamārama................................................................................................................................................ 104

Corporate responsibility......................................................................................................................................................................................... 33 Rohe delivery sites....................................................................................................................................................................................................... 34

Tauira Information...............................................................................................................................................................................................35 Tauira achievement..................................................................................................................................................................................................... 37 Tauira engagement...................................................................................................................................................................................................... 39 Tauira demographics................................................................................................................................................................................................. 41

Kaimahi Information.........................................................................................................................................................................................44

CONTENTS

Tauira satisfaction........................................................................................................................................................................................................ 39

Kaimahi numbers.......................................................................................................................................................................................................... 44 Kaimahi capability development..................................................................................................................................................................... 46 Wānanga Ora..................................................................................................................................................................................................................... 46

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Apakura Campus - Te Awamutu

He Whakamaumahara Remembrance

Aku tōtara whakahae i tū ai i te wao o te wenerau o te mano, e tangi ana. Ko koutou tērā kei aku puna kōrero kei aku pou wānanga, nā koutou te tauira mai hei whāinga mā te makiu. Ko te karamatamata o te iti kahurangi i whāia, i whakamaua, hei oranga mō runga i ō koutou nā iwi e mapu nei e tangi nei.

Waiho mai ko mamae ko mōteatea hei hoa mō ō rahinga e ngana nei ki te hāpai i ā koutou ōhākī hei kawenga ki mua, ā mau ake nei.

In 2010, we mourned the passing of three leaders who grasped life with both hands. They spent their time amongst us in the pursuit of lofty goals; they pursued knowledge and wisdom, and they lived their lives in the service of others. We continue to mourn their loss and we feel the void that remains where they once stood.

Our sympathy goes out to all who lost loved ones in 2010; our thoughts are with you.

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He Whakamaumahara Rememberance Tione (Hone) Haunui QSO

Associate Professor Dr. Mark Laws

Ngāti Mahuta, Ngāti Maniapoto

Ngāti Awa, Ngāti Tūwharetoa, Te Arawa

3rd Whiringa-ā-rangi 1939 – 14th Hakihea 2010

15th Whiringa-ā-nuku 1958 – 30th Hakihea 2010

Hone was born in Waahi Pā in Huntly. He was the great grandson of King Tāwhiao, the second Māori King, and the eldest of thirteen children. Hone spent the early part of his life at Waahi before, at the age of 7 or 8, being sent with his sister to live with his grandparents in Waitomo. His grandparents were stalwart followers of the Kīngitanga and also followers of the Ratana faith. It was from them that Hone learnt the knowledge and practise of tikanga that would play such a big part in his life.

In 1952, Hone returned to Waahi to attend Rākaumangamanga Native School (which later became Te Wharekura o Rākaumangamanga). Hone found the move from Waitomo to be particularly difficult.

Until that time, he had been immersed in te reo ō ōna tūpuna (the language of his elders) and the use of te reo Māori was restricted in schools at that time. Even though his early experiences at the school were not as positive as they could have been, Hone remained an enthusiastic supporter of Te Wharekura o Rākaumangamanga and was involved with the school for the rest of his life.

HE WHAKAMAUMAHARA

Hone had an extraordinary depth and breadth of knowledge of tikanga and of te reo Māori. An expert in oratory and Waikato-Tainui history, Hone served as kaumātua, advisor and dedicated supporter to two generations of the Māori monarchy. He served as chief kaumātua to Te Arikinui Atairangikaahu and later to Kīngi Tuheitia. His knowledge put him at the forefront of iwi hui and events, including Koroneihana and Poukai, and he often accompanied both the late Te Arikinui and Kīngi Tuheitia on official visits, both within Aotearoa and overseas.

In the final few days of 2010, it was with great sadness that we learned of the loss of Dr. Mark Laws. Mark was an enthusiastic supporter of wānanga and served on a number of wānanga boards and committees, one of which was Te Rautiaki Mātauranga – the Academic Board of Te Wānanga o Aotearoa.

Mark was born and bred in Kawerau and Matata. He gained a PhD in Information Science from the University of Otago. The Foundation of Research, Science and Technology (FRST) twice awarded him the Tūāpapa Pūtaiao Māori Fellowship. The first award was in 1997 for work done as part of his MSc; the second was in 1999 for his PhD research. In 2002, Mark won the University of Waikato’s National Māori Academic Excellence Award - Computing and Mathematical Sciences section.

In 2001, Mark was employed by the Royal Society of New Zealand and the National Association of Māori Mathematicians, Scientists and Technologists. In this work, he focused on Māori issues relating to the Science Communicators, Mentoring and Teacher Fellowships programmes. This included supporting Māori funding initiatives with the Ministry of Research, Science & Technology.

Mark began a three-year post-doctoral research fellowship from FRST in 2002, hosted by the Auckland University of Technology’s Knowledge Engineering & Discovery Research Institute and the University of Hawaii’s Research Centre for Advanced Computing and Virtual Experiments. The fellowship was extended to include other Polynesian languages to provide an online central-eastern Polynesian speech and language information system.

In other roles, Hone served as kaumātua for the Tainui Māori Trust Board, the Waikato Raupatu Lands and River Trusts, the Tainui Confederation of Tribes, Waikato Tainui Te Kauhanganui, Hamilton Māori Women’s Welfare League and Te Wharekura o Rākaumangamanga. He also served as kaumātua to Te Whare Taonga o Waikato (Waikato Museum).

In 2004, Mark became the founder and head of a new Computer Information Science and Technology Faculty at Te Whare Wānanga o Awanuiārangi. His role was to provide the frameworks, templates and language models to support te reo Māori. Mark’s professional and research interests included computer applications to support te reo Māori speech recognition and synthesis.

On the paepae, Hone was a dynamic, commanding and inspiring speaker; when he spoke, everyone listened. Hone was heavily committed to ensuring the survival of tikanga and te reo Māori. He encouraged rangatahi to stand and speak on the marae and felt strongly the urgent need to protect these taonga gifted to us by our tūpuna.

Mark was also involved in the development of a number of other applications to support te reo Māori, including Māori fonts and keyboard drivers, Māori spell-checkers and an online word translator. Much of this work came to fruition in late 2009 with the establishment of the Tokorau Indigenous Innovation Institute, of which Mark was director. The institute’s vision is ‘to connect traditional knowledge with new and emerging technologies’.

Hone will be remembered for his work ethic and the invaluable knowledge he shared with so many. He was a very humble man and was warm and approachable, enabling people to come to him for advice and to access the wisdom he had accumulated during his lifetime.

Hone was awarded the Queen’s Service Order – Companion of the Order in 2008 in recognition of his work with iwi and with the Kīngitanga. He will be greatly missed by all who knew him. He leaves a void yet to be filled.

Mark was appointed director of the eWānanga Centre for Creative Teaching and Learning. His plan was to develop research projects for online language learning, or eWānanga. The system was to include a ‘virtual technology village’.

In his private life, Mark had a long association with Touch New Zealand as a referee, gaining a black badge qualification and refereeing at the 1995 World Cup in Hawaii.

The legacy Mark leaves behind will continue to help thousands of people for many years to come.

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Sir Archie John Te Atawhai Taiaroa Ngāti Haua, Ngāti Kurawhatia, Te Āti Haunui-a-Pāpārangi, Ngāti Tūwharetoa, Ngāti Apa and Ngāti Maru 13th Kohi-tātea 1937 - 21st Mahuru 2010 In September 2010, the country mourned the loss of the influential leader and inspiring role model, Sir Archie Taiaroa.

Sir Archie was born at Tawata (an isolated village on the Whanganui River) in 1937 and spent his life in the service of his people. He began to take on his role as a leader while working as a welfare officer in the Aotea District for the Department of Māori Affairs and, later, the Iwi Transition Agency in the Waiariki District.

Between 1973 and 1975, Sir Archie represented the South Pacific at international fora and attended Florida State University, working with Native American and Canadian nations in the social development area.

Continuing work started by his grandfather Titi Tihu, Sir Archie was primary litigant and advocate for the return of the Whanganui River to its people - the longest unresolved litigation in the country’s history.

Sir Archie led the discussions to establish the Whanganui River Māori Trust Board in the 1980s to provide a platform to progress the river case and subsequent claim. Sir Archie served as chairperson of Whanganui River Māori Trust for 20 years.

In 1993, Sir Archie was appointed to the board of the Treaty of Waitangi Fisheries Commission - Te Ohu Kaimoana by then Prime Minister Jim Bolger. He remained on the board until his death, serving as deputy chairperson from 2000 and chairperson from 2006. He stepped down from the chair voluntarily in 2009. While on the board, Sir Archie was a peacemaker during turbulent times as iwi discussed how to distribute the Māori Commercial Fisheries Settlement. Following this, he led the work that eventually produced recognition of freshwater rights for iwi. He was also a key player in the creation of a milliondollar annual fund to support tertiary students who are studying fisheries management, aquaculture and marine biology. In alignment with this work, Sir Archie was appointed Māori representative on the World Council of Whalers.

NEW PROGRAMMES

A long-time resident of Taumarunui, Sir Archie served on Taumarunui Borough Council for 16 years, part of this time as deputy mayor. He also served on Manawatu-Wanganui Regional Council (now Horizons Regional Council). Sir Archie was co-chair of the Māori Congress and was prominent in the Catholic Church and the Ratana Church.

Sir Archie did much to advance the development and growth of the Whanganui River and Ngāti Tūwharetoa tribes resulting in him being awarded a Distinguished Companion of the New Zealand Order of Merit for his services to Māori in 2003. In 2009, he was knighted and became ‘Sir Archie’. A humble man, he dedicated his knighthood to his grandchildren.

Sir Archie contributed much to te ao Māori as a peacemaker, a negotiator, an advisor, a representative and an advocate, but most importantly as a koro. His calm approach, his knowledge and his skills will be greatly missed.

Raroera Campus - Hamilton

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Tﾄ［aki Makaurau Campus - Auckland

Report from the Chair of Te Mana Whakahaere Richard Batley Tēnā rā tātou katoa i runga i ngā mihi. Nōku te waimarie ka riro māku Te Pūrongo o tēnei tau e whakarewa.

like to acknowledge Business New Zealand representative Neville Baker who, at the conclusion of his term in July 2010, also did not seek re-appointment to Te Mana Whakahaere.

It is a pleasure to introduce the 2010 Te Wānanga o Aotearoa annual report.

As a result of an assessment of our governance and strategic functions, I have commissioned a review of governance to ensure Te Mana Whakahaere is operating in the most effective and efficient manner to support the operation of Te Wānanga o Aotearoa. The review will focus on assessing whether we can identify possible improvements to our governance arrangements. Existing Te Mana Whakahaere vacancies will not be filled until the review has been completed and considered, which is expected to be about the middle of 2011. The review, however, did not preclude the election of Te Wānanga o Aotearoa Apakura Campus Kaiako Matua Vince Hapi, who was appointed academic representative to Te Mana Whakahaere following the departure of outgoing representative Peter Skerrett, whose term expired in April.

Complementing the significant educational achievement is another year of healthy financial results. We report a surplus for 2010 of $6.2 million. This strong financial platform provides resources to re-invest in our infrastructure and in the new programmes required to ensure we remain a vibrant educational provider, agile and able to move to meet the educational needs of the many communities we serve throughout New Zealand.

New programmes include increased diploma and degree options for our tauira and a continued focus on youth training, as demonstrated by the ongoing success of our recently introduced trades training initiatives, including forestry training and conservation cadet training.

Te Mana Whakahaere saw some changes to its membership during the year. I would like to congratulate Dr Toby Curtis, who was elected deputy chair of Te Mana Whakahaere in February, taking up the position left vacant by former deputy Parekāwhia McLean, whose term as a co-opted member of Te Mana Whakahaere expired in January. Parekāwhia has since been appointed chief executive of the Waikato Raupatu Lands Trust and I wish her well in her future endeavours. I would also

2010 was another very successful year for Te Wānanga o Aotearoa. As an institution, however, we shun the complacency that can come from success. To this end, we will continue to review, enhance and improve as an institution. We are tasked with providing opportunity for all in New Zealand who seek to improve their lives through education. We will continue to be pro-active in doing all we can to support this worthy and essential cause.

Once again, I thank Bentham and his staff for their continued efforts in ensuring the sustainability of our organisation as we move into the second decade of the 21st Century.

Richard Batley Chair – Te Mana Whakahaere

CHAIR’S REPORT

The year was marked by the continuation of the strong performance seen in recent years.

This is most aptly demonstrated in the excellent work of our staff in driving the continued increase in tauira retention, completion and graduation rates; Te Wānanga o Aotearoa now has some of the highest achievement rates in the country. Alongside these achievement results, it is important to note that many of the tens of thousands of tauira who choose an education with Te Wānanga o Aotearoa each year are returning to the classroom after many years away from education; these tauira often have not achieved their potential in the past because of difficulties in mainstream education. All in all, this is an excellent result.

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Report from Te Pouhere Bentham Ohia E tū ana au i raro i ngā whakamihi e rere atu rā. Tēnei au te noho whakaiti ki te whakatairanga i Te Pūrongo o tēnei tau hei pānui mā te ao. Tēnā koutou katoa.

On behalf of the whānau of Te Wānanga o Aotearoa, it is my privilege to present this annual report for 2010.

As always, I acknowledge the visionary founders of Te Wānanga o Aotearoa: those who had the foresight and commitment to establish and nurture an organisation that transforms the lives of so many New Zealanders each year. I also give thanks for the opportunity of working with kaimahi who continue to express their commitment to the principles of our organisation: principles which, if adopted more widely, could do much to solve many problems faced by the world today.

TE POUHERE REPORT

2010 was a big year for Te Wānanga o Aotearoa. We celebrated the 25th anniversary of the opening of O-Tāwhao Marae; we established a range of youth initiatives; we consolidated relationships with a number of other tertiary providers; and we opened Mangakōtukutuku: a stunning new learning facility in Kirikiriroa Hamilton. We also approved a range of new programmes that will help the organisation realise its objectives of offering more qualifications at level 4 and above, increasing opportunities for those under 25 years of age, and providing direct pathways to employment.

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Our tauira achieved great things in 2010, recording the highest programme graduation rate in the organisation’s history (70%).

This result was accompanied by very respectable course retention and completion rates (81% and 78% respectively).

Congratulations to all tauira who completed their qualifications in 2010. Your efforts will contribute to the transformation of whānau and communities throughout Aotearoa New Zealand in the years to come.

Our ongoing efforts to contain costs and our commitment to prudent financial management have enabled the organisation, once again, to record a surplus: $6.2 million in 2010. This strong result further reinforces the financial viability of our organisation.

I commend our kaimahi for their responsible handling of our pūtea and for their vigilance in eliminating waste, both of which contribute to the sustainability of our organisation.

At the end of April, we bade farewell to our Kaihautū-Titiraukura Jeremy Morley. Jeremy joined us as a Crown Manager from PriceWaterhouseCoopers in 2005 and took on the role of Kaihautū in 2007. He was instrumental in consolidating our financial position and establishing sound financial management systems and practices throughout Te Wānanga o Aotearoa. Jeremy’s work has positioned us well as we face the difficulties inherent in these recessionary times, and I am extremely grateful to him for his substantial contribution while he was with us. I know the kaimahi of Te Wānanga o Aotearoa join me in wishing Jeremy every success in the future.

At the start of June, the highly-qualified and experienced Hinerangi Raumati took up the role as Interim Kaihautū-Titiraukura. She was previously the Chief Financial Officer for Tainui Group Holdings.

Hinerangi is no stranger to our organisation, having been appointed to our Audit and Risk Management Committee in 2006 and helping steer our waka through troubled waters in 2006 and 2007. She understands our organisation well and has done an outstanding job picking up the reins where Jeremy laid them down. I commend Hinerangi and am grateful for her leadership over the past six months and for her management of Titiraukura. We look forward to making a permanent appointment to this position in early 2011.

Our tauira population profile remained relatively unchanged during 2010. We continued to provide educational opportunities for large numbers of people with low or no formal secondary school qualifications (38%) and we continued to attract a large number of tauira who were unemployed prior to joining our whānau (30%). Of note, however, our youth strategy (Mātātahi Mataora) has had an impact on the age profile of our tauira population over the past two years, with increases noted in the number of tauira aged under 24 years and decreases in those over the age of 40 years. We also saw an increase in the proportion of Māori and Pasifika tauira studying with us, with these tauira now making up sixty percent of our tauira population.

Our Marautanga uepū continued to strengthen our programme portfolio during the year, adding a number of mātauranga Māori programmes that fill gaps in educational pathways within the organisation.

Additions to our degree-level portfolio will provide an endpoint for these pathways and enable tauira to complete their educational journey with us from start to finish.

Te Wānanga o Aotearoa continued to be involved in trades training during 2010 through a number of collaborative ventures. In the past, Te Wānanga o Aotearoa had its own trades training programmes; however, more recently the organisation has supported tauira Māori while they are engaged with trades training at another institution. Although these partnerships have been successful, I believe that Te Wānanga o Aotearoa could better serve these tauira by delivering the whole package in our own environment. I look forward to exploring these opportunities in the future.

Two key highlights that occurred towards the end of the year were the opening of Mangakōtukutuku in Kirikiriroa Hamilton and the approval of Tai Wānanga. Mangakōtukutuku is set to become a centre of educational excellence and will be home to our degree programmes. It will also eventually become

home to a Tai Wānanga learning facility - an exciting new secondary education model that combines individualised learning with tikanga Māori and community-embedded, whānau-connected, practical learning experiences. Our first Tai Wānanga learning centre (Tū Toa) was opened in Palmerston North in February 2011 and we hope to open our second facility at Mangakōtukutuku in early 2012.

These are exciting developments in the life of our organisation. They mark a return to a younger client group after 25 years of catering to more mature learners who had missed out on gaining an education in their youth. I look forward to seeing the benefits that our rangatahi will reap as they progress through Tai Wānanga and on to further education and employment.

Once again, I thank all who have contributed to the performance of Te Wānanga o Aotearoa during 2010. This includes Richard Batley and members of Te Mana Whakahaere, members of Te Rautiaki Mātauranga (our Academic Board), members of Te Komiti Ārai i ngā Tūpono (our Audit and Risk Management Committee), members of the board of Open Wānanga and kaumātua of Te Kāhui Amorangi o Te Wānanga o Aotearoa. As kaitiaki of our organisation at this time, your work ensures that our organisation remains available to future generations. You walk alongside the visionaries who foresaw the importance of Te Wānanga o Aotearoa to Aotearoa New Zealand and to the world. Thank you!

Bentham Ohia Te Pouhere o Te Wānanga o Aotearoa

Early Learning Centre, Raroera Campus - Hamilton

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Organisational Report 2010

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Overview 2010

Te Wānanga o Aotearoa is now moving into a transformative phase. During this phase, our kaimahi are working to reinforce the unique and distinctive essence that defines Te Wānanga o Aotearoa within the tertiary sector. Work in this area includes strengthening commitment to the Kaupapa and Ngā Uara of the organisation and ensuring that all activities align with these philosophies. Kaimahi are also working to create new programmes that provide tauira with clear and complete pathways through the organisation, particularly in key curriculum areas, and increasing our provision at degree level.

In the meantime, the organisation will implement a number of youth-targeted initiatives that will attract larger numbers of younger tauira. Although in the early stages of implementation, Te Wānanga o Aotearoa is already seeing a shift in the age profile of its tauira population. Since 2008, the proportion of tauira aged under 24 years studying with the organisation has increased by four percent and the proportion over the age of 40 years has decreased by five percent. (Note: a one percent increase equates to approximately 360 tauira).

These activities ensure Te Wānanga o Aotearoa remains futurefocused. They ensure that kaimahi continue to look forwards, enabling them to be ready to respond to our ever-changing world. These activities also reassure tauira that an education with Te Wānanga o Aotearoa will provide them with the skills and knowledge that will prepare them to take on the world with confidence, possessing the capabilities required to engage in a 21st Century workforce.

Ray Brown, Apakura Campus - Te Awamutu

During this transformative phase, kaimahi at Te Wānanga o Aotearoa remain keenly aware that our organisation is different.

We have a different tauira population with different needs; we have different stakeholders with different interests; and the environment within which we operate is different. It is for these reasons that we exercise caution in the application of solutions that may have been successful elsewhere. Our organisation often requires that we start from scratch and explore frontiers that remain out of sight to mainstream organisations. We choose to do these things because we are committed to ensuring that we maintain the unique flavour that our tauira tell us they appreciate when they become part of our whānau.

Even so, we remain acutely aware that we have obligations to the Government and to all people of Aotearoa New Zealand. In this regard, we continue to align our aspirations with the objectives for wānanga set down in the Tertiary Education Strategy, including strengthening provision at diploma level and above; improving quality and performance to meet new benchmarks set down in the tertiary education reforms; strengthening engagement of iwi and Māori with the tertiary education sector; increasing crosssector collaboration opportunities and improving staircasing and pathways between wānanga and other tertiary education; and strengthening sector-wide leadership to sustain advancement of mātauranga Māori.

This report describes some of the ways in which the kaimahi of Te Wānanga o Aotearoa have strived during 2010 to meet our obligations to our stakeholders while upholding the principles of our organisation.

OVERVIEW

Te Wānanga o Aotearoa has now completed a phase of consolidation during which systems and processes were strengthened to ensure the viability and sustainability of the organisation. Work during this phase focused on restoring the financial viability of the organisation, implementing robust financial management systems, strengthening governance and management practices, and creating a sound structure with clear delegations of authority. Work also focused on reviewing and rationalising the organisation’s programme portfolio and revitalising relationships with key stakeholders.

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Highlights 2010

HIGHLIGHTS 2010

Organisational highlights

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25th Anniversary of O-Tāwhao

Mangakōtukutuku

Tuesday 27th April 2010 marked the 25th anniversary of the official opening of O-Tāwhao Marae at Te Awamutu College. O-Tāwhao is the birthplace of Te Wānanga o Aotearoa, and the construction of the marae brought together the group that laid the foundations of this organisation. The stated commitment of these visionary founders was to provide educational options for those who had been abandoned by an education system that was failing to meet the needs of those who needed it most.

In November, Te Wānanga o Aotearoa opened its newest learning facility, Mangakōtukutuku, at Glenview in Kirikiriroa Hamilton. More than 150 people attended the re-dedication of what was formerly ‘the Glenview site’, including Hamilton Mayor Julie Hardaker and Mayor of Waipā District Council Allan Livingston.

The opening of O-Tāwhao was a significant event for Te Awamutu College, for Te Awamutu township and for Aotearoa New Zealand. For the college, it provided a culturally-rich environment in which to conduct Māori studies; Te Awamutu township benefited from having a heavily community-focused organisation in its midst; for the country, O-Tāwhao was the first marae to be built on the grounds of a secondary school. This marked a shift in perceptions of the importance of Māori cultural studies and supported other Māori initiatives gaining ground at the time.

Te Wānanga o Aotearoa was honoured to have Kīngi Tuheitia unveil the tomokanga to the main entrance of Mangakōtukutuku as part of the formal proceedings. The open day that followed the re-dedication attracted more than 300 people, with a large proportion of these coming from the local community.

Mangakōtukutuku is a stunning building that is already winning accolades for its design and its beauty. Aptly, the building will be a centre of excellence for education and home to the organisation’s degree programmes.

This re-development is part of an ongoing strategy to enhance Te Wānanga o Aotearoa learning environments for the benefit of all tauira. As part of this strategy, work has started on upgrading our campuses and sites in Auckland and Whangarei.

External Evaluation and Review by NZQA

Although Te Wānanga o Aotearoa prides itself as an inclusive organisation, it remains committed to increasing participation in tertiary education for Māori and Pasifika tauira. During 2010, the proportion of Māori and Pasifika tauira exceeded 60% (21,722 tauira) for the first time since 2003. Within this result, the number of tauira Māori studying with the organisation increased by 15% on 2009 numbers and the number of Pasifika tauira increased by 36%.

In late March 2010, a team from NZQA conducted the first External Evaluation and Review (EER) at Te Wānanga o Aotearoa. The EER process is a collaborative one in which NZQA works with an organisation to evaluate its performance in specific areas. The two areas of focus at Te Wānanga o Aotearoa for 2010 were strategic direction and rangahau.

The findings of the review were highly favourable for Te Wānanga o Aotearoa, with NZQA recording the following: 1.

2.

3.

NZQA is confident in the strategic direction of Te Wānanga o Aotearoa.

NZQA is confident in performance in rangahau.

NZQA is highly confident in the self-assessment capability within Te Wānanga o Aotearoa as demonstrated in the focus areas of strategic direction and rangahau.

HIGHLIGHTS 2010

Participation by Māori and Pasifika tauira

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HIGHLIGHTS 2010

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NZ Sports Academy/Te Wānanga o Aotearoa joint venture

Memorandum of understanding with New Zealand Police

NZ Sports Academy and Te Wānanga o Aotearoa have joined forces to support an increasing need for sports programmes in the Northland region. NZ Sports Academy has been running programmes for the past 12 years and will deliver the Certificate in Sports Leadership (Applied) - Level 4 at Te Wānanga o Aotearoa in Whangarei. This new venture will see 20 potential future stars of Northland rugby and rugby league start a year-long programme that will provide them with the skills to become professional sports people.

A memorandum of understanding between New Zealand Police and Te Wānanga o Aotearoa has put a formal seal on many years of work between the two organisations. The core of this work involved establishing and nurturing relationships at various levels in both organisations. The relationship will help the Māori, Pacific and Ethnic Affairs Office of New Zealand Police meet its ‘ethnic diversity’ recruiting targets. For Te Wānanga o Aotearoa, the relationship will contribute to the organisation’s goal of achieving whānau transformation. It also provides Te Wānanga o Aotearoa with an opportunity to play a leadership role in the education and preparation of tauira for entry into New Zealand Police.

Prime Minister John Key visited the programme during 2010 and gave it the ‘thumbs up’. The venture enables each organisation to maximise its strengths, ensuring that tauira receive a wellrounded introduction to the world of professional sport.

The signing of the MoU was marked by an occasion attended by Police Commissioner Howard Broad and his executive staff, representatives of Te Mana Whakahaere, Kāhui Amorangi, rohe managers and kaimahi, and senior staff members from New Zealand Police. The MoU was signed by the Police Commissioner on behalf of New Zealand Police and by Turi Ngatai on behalf of Te Wānanga o Aotearoa.

Meanwhile, Te Wānanga o Aotearoa continues to run its Certificate in Vocational Preparation (Police) - Level 3. The programme has now been running for two years and has enrolled 142 tauira.

Of these, 116 have graduated – an 82% graduation rate. In the past 18 months, Te Wānanga o Aotearoa tauira have tripled the percentage of women and Pasifika recruits being delivered to New Zealand Police Recruiting and doubled the number of Māori recruits.

Māori trades training

Department of Conservation cadetships

After a five-year hiatus, Te Wānanga o Aotearoa has re-entered Māori trades training through a collaborative venture with Tainui and Wintec. The pilot programme, which began in 2009, offers tauira a chance to complete a 1.5 EFTS (equivalent full-time student) carpentry programme. The programme is comprised of the 1.0 EFTS Certificate of Technology (Carpentry) - Level 3 delivered by Wintec and the 0.5 EFTS Certificate in Tikanga Māori - Level 3 delivered by Te Wānanga o Aotearoa.

In 2010, the Certificate of Introduction to the Trades was added and the carpentry qualification was upgraded to a Certificate in Building (Level 4).

Te Wānanga o Aotearoa saw the culmination of another pilot collaborative venture in 2010: the Tauira Kaitiaki Taiao Programme (a Department of Conservation cadetship). The partnership involved the Department of Conservation (DoC), Te Wānanga o Aotearoa and the Nelson Marlborough Institute of Technology (NMIT), and was supported by Te Puni Kōkiri and Ngā Whenua Rāhui.

During 2010, tauira on the MTT programme achieved significant results. Tauira on the Certificate in Tikanga Māori - Level 3 achieved a graduation rate of 82%. This was supported by a 58% graduation rate in the Certificate in Building (Level 4) and a 47% employment rate for tauira from this programme.

Te Wānanga o Aotearoa values the opportunity to be part of this successful, ground-breaking pilot.

At the graduation, an announcement was made that, due to the success of the current group, DoC will continue to offer the programme on an expanded basis at some time in the near future.

HIGHLIGHTS 2010

Te Wānanga o Aotearoa supports tauira on the Wintec programmes through a Māori Trades Training (MTT) Coordinator. The coordinator works closely with Wintec’s Pouarahi Māori and the manager of the Waikato-Tainui Tribal Development Unit to interview and select tauira and resolve all matters related to the training.

In November 2010, 14 tauira graduated from the programme, each receiving a Level 3 National Certificate in Conservation, a Trainee Ranger Certificate from Nelson Marlborough Institute of Technology (NMIT) and a Level 3 Certificate in Tikanga Māori from Te Wānanga o Aotearoa. The graduation ceremony was hosted by the Chair of Ngā Whenua Rāhui.

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HIGHLIGHTS 2010

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Secondary Tertiary Alignment Resource (STAR)

Youth Guarantee

2010 saw the introduction of a new wave of Te Wānanga o Aotearoa youth initiatives (Mātātahi Mataora) designed to encourage secondary students to move directly from school into tertiary education. Key amongst these is a range of STAR programmes.

In mid-2010, Te Wānanga o Aotearoa signalled its intention to begin offering Youth Guarantee programmes. The Youth Guarantee initiative provides funding for organisations to work with 16 and 17 year olds whose needs are not being met in the secondary education sector. The aim of the initiative is to help these rangatahi transition from school into tertiary organisations that are better equipped to meet the specific interests and needs of this group.

STAR at Te Wānanga o Aotearoa presents the organisation’s unique learning environment, facilities and personnel in a way that helps students feel comfortable and at home while they study. The flagship STAR programme, Ākina, is an open day run the wānanga way. Each Ākina begins with a pōwhiri and provides information sessions about STAR and tertiary provision at Te Wānanga o Aotearoa, including information about pathways from secondary school into and out of the organisation.

Te Wānanga o Aotearoa will start delivering Youth Guarantee as part of its Mātātahi Mataora (youth) strategy in 2011. Work in 2010 focused on establishing a youth unit, environmental scanning to inform course provision, programme design, and establishment of a collaborative relationship with the Ministry of Social Development as a source of referrals.

Other STAR programmes developed in 2010 include an Ākina follow up course; Mauri Ora; Police Preparation; Māori Art Design; Māori Art Drawing Techniques; Whakairo and Huihuinga. Wherever possible, programmes offer opportunities for students to complete unit standards as part of their STAR learning.

Youth Guarantee tauira at Te Wānanga o Aotearoa will choose one of two options: sports or computing/business administration, depending on location. These fields have been highly successful at unlocking educational achievement in the past, and tauira will be supported by renowned tauira support at Te Wānanga o Aotearoa..

To date, Te Wānanga o Aotearoa STAR programmes have attracted more than 450 student engagements. Programmes have also received an enthusiastic response from teachers and principals in Tainui and Tāmaki Makaurau rohe. Programmes will be rolled out nationally in 2011.

During Semester A, tauira will focus on their area of interest and work towards gaining a national certificate in that field. In Semester B, tauira will complete the Mahi Ora National Certificate in Employment Skills. The Mahi Ora programme will be modified to include elements of each interest area (sports and computing/business) to make it relevant and to maintain interest.

Te Toi Roa

Kāpuia

Te Toi Roa unites a raft of quality initiatives implemented at Te Wānanga o Aotearoa over the past three years into a cohesive, logical, tauira-centric celebration of the pursuit of excellence. At the centre of this strategy is the Tauira Footprint – an initiative that links quality enhancement of every endeavour at Te Wānanga o Aotearoa with its impact on tauira. Te Toi Roa operates within the framework of Kaupapa Wānanga – an evaluative lens used to assess organisational activities against the philosophy of Te Wānanga o Aotearoa.

Te Wānanga o Aotearoa launched its graduate community network at the end of September 2010.

More than an alumni association, Kāpuia is about relationships; it provides a communication channel that not only enables Te Wānanga o Aotearoa to keep in touch with its graduates, but also enables graduates to keep in touch with each other.

Te Toi Roa encourages kaimahi to engage with this evolutionary approach to quality enhancement and emphasises benefits of this activity to tauira and to the ongoing viability and sustainability of the organisation. The benefits of this new strategy are already being felt throughout Te Wānanga o Aotearoa, with kaimahi taking ownership of their individual contributions to whānau transformation through education.

Guests were invited to contribute to the success of Kāpuia by investing time (voluntary services), treasure (financial contributions) or talent (expertise). Since the launch, Kāpuia has received overwhelming support from both internal and external stakeholders.

HIGHLIGHTS 2010

Quality enhancement is evaluated and monitored through Aromatawai, including Aromarau (programme review), Arotika and Arotaumata (organisational evaluation systems) and Wānanga Ora (an organisational wellness programme).

The Kāpuia launch attracted a wide range of guests, both from within Te Wānanga o Aotearoa and externally. Those gathered were fortunate to hear from three graduates (and Kāpuia members) who spoke about the outstanding impact that studying at Te Wānanga o Aotearoa has had on them, both professionally and personally.

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Tai Wānanga

Kāhui Amorangi

Te Wānanga o Aotearoa was originally founded to help rangatahi whose needs were not being met by secondary school. Although much has changed in the intervening 25 years, Māori continue to record younger school-leaving ages and lower rates of NCEA and University Entrance achievement than non-Māori rangatahi. It is now acknowledged that a key contributor to these results has been secondary schools’ inability to cater appropriately for the needs of rangatahi Māori.

Te Amorangi ki mua, te hāpai ō ki muri.

HIGHLIGHTS 2010

Until now, Te Wānanga o Aotearoa has focused on providing opportunities for tauira after they have left the secondary school system. However, in 2010 Te Wānanga o Aotearoa received approval from the Ministry of Education to open two Tai Wānanga learning facilities, one in Papaiōea Palmerston North and one in Kirikiriroa Hamilton. These facilities will cater for secondary school-aged students, marking a move by Te Wānanga o Aotearoa towards a more proactive approach to resolving some of the issues for Māori in the secondary education system.

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Each Tai Wānanga will have places for a maximum of 120 rangatahi aged between 13 years and 18 years. Rangatahi will follow a learning pathway tailored to meet their individual learning needs and interests. They will study at their own pace towards NCEA, as well as having access to programmes at Te Wānanga o Aotearoa and other tertiary providers. Exploration of the workplace and engagement in community service will be integral learning experiences for all rangatahi.

Tai Wānanga facilities will maintain close relationships with Te Wānanga o Aotearoa, and many of the services critical to their successful operation, such as Finance, HR, IT and Property, will be provided through service level agreements with Te Wānanga o Aotearoa. It is also anticipated that Te Wānanga o Aotearoa kaimahi will be involved in facilitation of learning within Tai Wānanga (where this is appropriate) and some will assist as mentors for Tai Wānanga rangatahi.

In 2009, Te Wānanga o Aotearoa supported the establishment of a national iwi forum called Kāhui Amorangi o Te Wānanga o Aotearoa. This forum enables iwi stakeholders (kuia/kaumātua) to act as a community voice and advocate for important issues from their respective iwi, hapū, marae and whānau.

A strategic framework for Kāhui Amorangi has been developed which provides the mechanism to develop a shared vision with each iwi stakeholder group and allow that vision to be understood and contributed to by other iwi stakeholders and Te Wānanga o Aotearoa.

In 2010, the six rohe of Te Wānanga o Aotearoa continued to establish ‘iwi fora’ in each region under the guidance and direction of the rohe managers. Kāhui Amorangi continues to be a crucial support mechanism for Te Wānanga o Aotearoa.

Mission ‘To ensure we act as a pillar and foundation for Te Wānanga o Aotearoa in the endeavours to manifest its’ philosophical aspirations for the betterment of whānau education’ ‘Kia noho ko te Kāhui Amorangi hei poutokomanawa, hei korowai mō Te Wānanga o Aotearoa e Kōkiri nei i ngā take, i ngā huarahi kia puawai ngā wawata, ngā tūmanako ā ngā whānau whai mātauranga’

Celebrating tauira success Te Wānanga o Aotearoa judges its success by the success of its tauira. This applies while tauira are studying with us and continues as tauira progress into communities across Aotearoa New Zealand.

Each year, tens of thousands of graduates take the ideals of Te Wānanga o Aotearoa (Te Uaratanga, Te Kaupapa and Ngā Uara) out into the world. They aim to make contributions of consequence.

They aim to make our world a better place.

HIGHLIGHTS 2010

Gathered here is a tiny fraction of the thousands of success stories that mark the personal journeys undertaken by the tauira of Te Wānanga o Aotearoa.

Graduating Tauira, Porirua Campus - Wellington

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Wayne Poutoa Entrepreneur – Streets Ahead 237 Bachelor of Social Work ‘Whānau transformation through education’ is at the core of Wayne Poutoa’s experience at Te Wānanga o Aotearoa, and he acknowledges the power of this formula in helping people achieve their goals. ‘Te Wānanga o Aotearoa is not just an institution, it’s a family and a way of life that reaches into our communities and provides an alternative to a culture of circumstance that our people have been entrenched in for generations.’

HIGHLIGHTS 2010

Originally from Lufilufi village, Upolo, Western Samoa, Wayne dreamt of becoming a social worker; his goal: to make a difference working with at-risk youth. Te Wānanga o Aotearoa provided him with an opportunity to achieve his goal through Te Tohu Paetahi ngā Poutoko Whakarara Oranga - Bachelor of Social Work (Biculturalism in Practice), a qualification that is gaining a solid reputation for producing practically-focused, work-ready graduates. ‘Graduating from Te Wānanga o Aotearoa with a Bachelor of Social Work turned my lifelong dream into reality. It gave me a sense of accomplishment and changed my past perception that tertiary education was only for an exclusive group.’

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A founding director for Streets Ahead 237, Wayne has led significant changes in youth work and community development over the past seven years. ‘My studies have been of great assistance in my current line of work, which involves implementing social work and youth initiatives within communities.’ That work has won him plenty of acknowledgements. Wayne was appointed by Cabinet as a member of a steering group that created a relationship agreement between Government and the Community and Voluntary Sector of New Zealand.

He has been a finalist in the community section of the Wellingtonian of the Year awards. In 2008, he was a recipient of the Vodafone Foundation World of Difference programme. In 2009, the Orangi Kaupapa Trust acknowledged his work and presented him with

an award in recognition of this. In 2010, the Porirua Rotary Club awarded him a certificate of recognition for his outstanding contribution to the community.

But most importantly, Wayne acknowledges the impact education has had on his whānau. ‘I’ve set an example for my whānau that education is an integral part of moving forward and breaking free from the intergenerational cycle of simply making ends meet. Studying at Te Wānanga o Aotearoa is a pathway to a future that may have once seemed out of our reach. Change has to start with the individual and the realisation that you need to take the first step.’

‘ Te Wānanga o Aotearoa is not just an institution, it’s a family and a way of life that reaches into our communities and provides an alternative to a culture of circumstance that our people have been entrenched in for generations. ’ - Wayne Poutoa

Mere Maika Teacher Te Korowai Ākonga - Bachelor of Teaching (Primary)

Mere had tried distance learning, but dropped out. ‘I felt like I was just a number to the lecturer. I didn’t have the motivation and failed to complete the first year.

Now, I put it down to being 19.’ It was a pattern Mere knew well: start something, get distracted, and give up.

Te Wānanga o Aotearoa changed all that. When she enrolled at the Rotorua campus, she was expected to be in class every day. ‘You are face-to-face with the person teaching you - our lecturers were always there.

It makes it so much easier. I knew I wanted to get a degree and I knew I would get there, but it was a matter of when and where.’

Mere admits the first couple of years were touch and go, but, by year three, she had worked into a routine. ‘I sucked it up and found I loved the papers.’

At her graduation in Rotorua in May, Mere put into words for the first time how she managed to turn a life that was heading nowhere into one with purpose and the power to help others. ‘Graduation was awesome!

It was a buzz to see not only the people you invited, but your mates and the people important to them as well,’ Mere says. ‘When you see that many people behind you in one place, it’s amazing!’

Since her graduation, Mere has been relief teaching at Ngongotaha Primary School. She now plans to complete her Masters and gain her teaching registration certificate, which will take her a couple of years. Beyond that, studying for a doctorate is an option she may consider.

‘ You are face-to-face with the person teaching you - our lecturers were always there.

It makes it so much easier.

I knew I wanted to get a degree and I knew I would get there, but it was a matter of when and where. ’ - Mere Maika

HIGHLIGHTS 2010

Mere Maika did everything she could to prevent herself from getting an education. At school she played up in class, wouldn’t listen, refused to take any interest in learning and left when she was just 15 years old.

Ten years on and things have changed. Mere recently graduated from Te Wānanga o Aotearoa with Te Korowai Ākonga - Bachelor in Teaching, is halfway through studying for her Masters and has discovered a passion for theories of human development.

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Travis Eruera Police Officer Certificate in Vocational Preparation (Police) - Level 3 Travis Eruera always wanted to become a police officer, but admits he was hesitant to join the force when he was younger.

programme kaiako Glen McKay says, ‘I’ve seen such a change in Travis. At the beginning of the programme, he was so shy you couldn’t get boo out of him. Now he’s able to stand in front of a group of people and share his experiences about his journey.’

Travis attended Onehunga High School, where he excelled in sport and had a particular talent for in-line hockey. This sport led him to represent Aotearoa New Zealand from under-14s to under-20s, and took him to Australia and the United States, where he participated in the Junior World Cup Olympics in New Orleans.

After graduating from Te Wānanga o Aotearoa, Travis was selected to become a police officer and graduated from the Royal New Zealand Police College in February 2011. He is now stationed in the Counties-Manukau district at Otāhuhu Police Station.

HIGHLIGHTS 2010

While at school, Travis also had a keen interest in cooking and building, and he followed these interests when he moved into the workforce. He became a qualified joiner and was thinking about becoming a chef when he saw the advertisement for the Certificate in Vocational Preparation (Police) - Level 3 delivered by Te Wānanga o Aotearoa. The advertisement changed his career path and his life.

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The certificate programme (developed with and supported by NZ Police) prepares tauira for the NZ Police entry test. Key areas of study help tauira build literacy and numeracy skills, communication and abstract reasoning skills, and health and fitness. The programme also includes defensive driving and first aid certificates.

But for Travis, a key outcome of the certificate was that it enabled him to return to his culture. During his time with Te Wānanga o Aotearoa, he learned a basic mihi, pepeha, waiata, haka and karakia.

Completing the certificate in 2009, Travis overcame a number of challenges to become the first Māori to graduate from the programme. Literacy was one of those challenges. Committed to improving his command of the English language, Travis got extra tuition from a tutor at the Police College and began carrying a dictionary around with him. The extra effort paid off. Mentor and

Travis plans to find a way to help youth in his community of South Auckland. ‘Working with youth is a direction I’d like to look at within NZ Police in the future. I want to help our people, and I’m looking for a long-term career where every day is different.’

And for anyone else thinking of engaging in education, Travis has a simple message. ‘Set your goals as high as possible. The sky’s the limit!’

‘ I’ve seen such a change in Travis. At the beginning of the programme, he was so shy you couldn’t get boo out of him.

Now he’s able to stand in front of a group of people and share his experiences about his journey. ’ - Glen McKay

Kaiako, Certificate of Vocational Preparation (Police)

Hinurewa Poutu Kaiako mō te Kura Kaupapa Māori o Mana Tamariki & Māori Language Media Consultant Te Panekiretanga o te Reo

Hinurewa has been sailing this waka all her life. With te reo as her first language, she attended kura kaupapa Māori up to Year 8. From this point, Hinurewa learnt English one or two days per week. However, it was her commitment to te reo that led her to a perfect mark in her Bursary exams. Initially, Hinurewa was upset when she had received a mark of 96 percent for Bursary Māori, but soon found out she had scored 100 percent and that her mark had been scaled down. This made her the top student in the country for this subject.

Her achievements in te reo led to an invitation to join Te Panekiretanga o te Reo. ‘I felt privileged to be invited into Te Panekiretanga o te Reo programme at Te Wānanga o Aotearoa because it’s one of the few courses for advanced reo Māori speakers and I was hungry and eager to further my knowledge of te reo in an environment that promotes excellence.’

The motto of Te Panekiretanga o te Reo is ‘Ko te reo kia tika, ko te reo kia rere, ko te reo kia Māori’ (May the language be correct, fluent, and authentic). Hinurewa strives to follow this philosophy in her day-to-day work in kura kaupapa Māori and in the Māori language media industry, where her commitment to excellence is an essential part of her work.

Hinurewa greatly valued her time with Te Wānanga o Aotearoa. She says, ‘Te Wānanga o Aotearoa provides a very positive, stimulating and supportive learning environment. It’s inspiring to study alongside tutors who are among the most distinguished experts in Māori language and customs. They challenged some of my previously held beliefs and encouraged me to continue reflecting on what it means to maintain our language, culture and identity as Māori in the 21st Century and beyond.’

She is also thankful to Te Wānanga o Aotearoa for introducing her to others who are active in the promotion of te reo Māori, including those involved in iwi, education, broadcasting, research, law, health and more. ‘Kei whea mai rā e Te Wānanga o Aotearoa. He kainga e maimoatia ai ngā moehewa o te iwi Māori kia eke panuku, eke tangaroa. (I thank Te Wānanga o Aotearoa. It is certainly a home where dreams and aspirations for Māori to succeed are nurtured and cherished).

’ We are all sailing our waka across the challenging seas of language revitalisation, driven by a shared passion and love of the language. ’ - Hinurewa Poutu HIGHLIGHTS 2010

Hinurewa Poutu (Ngāti Rangi, Te Āti Haunui-aPāpārangi, Ngāti Maniapoto) has a real passion for protecting our taonga, te reo Māori. ‘We are all sailing our waka across the challenging seas of language revitalisation, driven by a shared passion and love of the language’, she says.

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Andrea Pearson

Anaru Eketone

Entrepreneur Certificate in Small Business Management - Level 4

Lecturer Diploma in Te Ara Reo Māori

Fitting in work and study is something Andrea Pearson has become an expert at. The 40-year-old Christchurch woman works in a call centre by day and sews all night, that is now she has completed the Certificate in Small Business Management - Level 4.

Anaru Eketone lectures in Social Work at Dunedin’s Otago University. Three years ago, he and his wife Margaret enrolled in a te reo class with their daughter and two of Anaru’s brothers. The idea was for the couple to participate in something together while improving their te reo skills.

Andrea decided to study business at Te Wānanga o Aotearoa after her sister completed a course there and had really enjoyed the experience. ‘I had an idea for a business I wanted to start, so I thought I needed to give the course a go so I could take the next step.’

HIGHLIGHTS 2010

What Andrea ended up with - in addition to her certificate and a whole raft of knowledge on goalsetting, planning and pitfalls - was more motivation to really make her idea work. She started by making dog jackets and beds and now has the confidence to expand into cat beds and toys. Andrea’s also working on other ideas for her range.

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It’s small and part-time by necessity, and she does her business via the online auction site Trade Me, but whenever she hits a snag it’s back to Te Wānanga o Aotearoa for help. ‘The tutors have been fantastic and so helpful. After you’ve finished, they’re still there for you. You can always call them and ask for advice. The great thing about it is that you’re surrounded by so much enthusiasm; it makes you want to do it.’

Having got a taste for learning, Andrea enrolled in a money management course. Work and sewing permitting, she’ll be back at Te Wānanga o Aotearoa before long.

‘I’d done a few Māori courses before, but needed to improve my skills,’ Anaru says. ‘It was such a good environment, and we had great teachers and a really supportive group of students. It was more a community feeling, which I’ve really enjoyed.’

Anaru and his wife completed the first year of Te Ara Reo Māori and enrolled in the second year, then the third. Now Anaru has completed his diploma and is contemplating another year of study, ‘just to improve my confidence’.

And there have been some unexpected benefits from Anaru’s three years of study – he studied the teaching methods used by his kaiako and became interested in the methods used at Te Wānanga o Aotearoa. ‘I’ve taken a lot of inspiration from that. I’d really recommend it to other people and I’m surprised there’re not more couples going,’ Anaru says.

Bobbie Jarvis

Jennifer Bettridge

Real Estate Agent Certificate in Te Ara Reo Māori

Kaiāwhina Papatoa - Certificate in Cable Logging

If ever proof was needed that people never stop learning, just ask Bobbie Jarvis. She’s an 82-year-old Hamilton grandmother who has spent decades working as a real estate agent in the city with no plans of retiring just yet. Bobbie enrolled in a te reo course to gain more understanding of the language and of tikanga.

Jennifer is a 42-year-old mother of five proving she’s a cut above in an industry generally regarded as a men’s domain. And she’s not the only one. Of Ngāi Tūhoe descent, the Kawerau Papatoa kaiāwhina is one of the ‘Papatoa Sisters’ – graduates of the Papatoa course who have taken up the challenge to succeed in the forestry industry. Jennifer enrolled in 2002 in Auckland, taking up the challenge after her forestry worker husband Stephen (now working alongside her as a kaiako for the Papatoa programme) told her she couldn’t cut it.

Since uncovering her ancestry, Bobbie has met whānau she never knew she had and has become closely involved in helping to run family forestry blocks and rebuild the family’s original marae at Waitomo. She recently took her granddaughter, Olympic skier Sarah Jarvis, to see the progress being made in an effort to show another generation where the family roots lie.

Te Wānanga o Aotearoa’s language course, which she completed with her daughter Sue Allen, has been a wonderfully enriching process: ‘It’s just been incredibly fulfilling,’ she says. ‘I’d like to have a greater knowledge of the language and eventually be able to speak it fluently. It’s just so important to me. It’s such a pity I didn’t think about it earlier.’

Bobbie really appreciated the help she received during the programme and says she wouldn’t have succeeded without the support of her kaiako and classmates. ‘I’m hoping to do the next level, but I’ll have to give up work to do it. It’s not easy; there’s so much to learn.’

‘I went on the course because Stephen dared me to.

“You can’t handle a chainsaw,” he said. “Watch me,” I said. And to rub salt into the wound, I really enjoyed it,’ Jennifer says. She was one of four women on the course back in 2002. ‘It was tough at first because they kept us girls isolated,’ Jennifer says. ‘They kept us in a different group to the boys when in the forest. This made us even more determined to step up and kick butt.’

Jennifer found the theory to be easy. ‘The practical was okay too, because all our hubbies were in the industry and we had experience with chainsaws. Jennifer says there’s a ‘heck’ of a lot more women in the industry now.

‘The men are waking up to our presence and that we can do the job. I can’t wait to see a woman in a waratah (the big forestry machine that pulls trees, clears limbs and cuts logs).’

As kaiāwhina, Jennifer has seen all sorts go through the Papatoa programme. ‘What I see is a big lifestyle change, plus confidence and pride growing within our students because they’ve achieved something great,’ Jennifer says. ‘This is why I’m still here: to see the light come on in their eyes and in their faces.’

HIGHLIGHTS 2010

Behind her decision lies a discovery that changed Bobbie’s life; she was born to a Pākehā mother and a Māori father who was not part of her life. Her mother kept her Māori heritage from her and she never knew she had Tainui and Maniapoto connections - including being related to the late, great weaver Diggeress Te Kanawa - until she was in her early 40s. ‘I didn’t have the opportunity to learn about it when I was young, so you see how much I lost,’ Bobbie says. ‘It was just very unfortunate. I had a very narrow education.’

23

New programmes Te Wānanga o Aotearoa continued to develop its programme portfolio during 2010. Key themes that guided programme development included promoting employment, providing tauira with extended pathway options, providing culturally-appropriate education in Māori management, leadership and governance, and supporting community development.

HIGHLIGHTS 2010

The following provides a summary of new programmes developed and approved at Te Wānanga o Aotearoa in 2010.

24

Papa Whairawa (Certificate in Financial Literacy) Level 1

Te Ara Reo Māori Ako ki Tāwhiti Level 2

Papa Whairawa (Certificate in Financial Literacy) is a home-based learning programme that provides tauira with the knowledge and skills to make smart decisions about their money. The programme is delivered by Open Wānanga and helps tauira take control of their finances by developing money skills and learning about investment. The programme is designed to provide a foundation for further finance and business studies.

Te Ara Reo Māori Ako ki Tāwhiti is a home-based learning Māori language programme that includes the Certificate in Te Ara Reo Māori – Level 2. Delivered by Open Wānanga, the programme helps tauira build confidence in conversational te reo Māori and provides an introduction to Māori customs and protocols.

Each tauira receives five kete full of exciting learning resources, which tauira explore with the help of a kaitiaki. Te Ara Reo Māori Ako ki Tāwhiti encourages tauira to learn as a whānau in their own home, at their own pace and at a time of their choosing.

He Waka Tangata: Certificate in Community Innovation (Introduction) Level 3

Certificate in Te Pūtaketanga o te Reo Level 4

The Certificate in First Line Management and Leadership helps tauira develop foundation knowledge, skills and attributes in first line management and leadership. The programme places emphasis on the needs of the communities Te Wānanga o Aotearoa serves. It also reinforces the unique wānanga management and leadership approach, which focuses on empowerment, personal growth, confidence-building and mātauranga Māori. Key topics include communication, team development, process and system management, and leadership.

He Waka Tangata - Level 3 guides tauira to explore opportunities for transformation within communities throughout Aotearoa New Zealand. This introductory certificate provides tauira with the core skills to begin a path into community action and leadership.

Te Pūtaketanga o Te Reo is a foundation level, total immersion Māori language programme. Although the programme develops all language skills, its key focus is on kōrero (spoken language).

Based on the Kaupapa Wānanga philosophy, skills shared in this programme include self-awareness, communication skills, relationships and learning, multiple literacies, and cultural, political, social and economic awareness. This programme is a pre-requisite for He Waka Tangata - Level 4.

The programme opens up employment opportunities for tauira within Māori organisations and communities, the Māori health sector or the education sector.

HIGHLIGHTS 2010

Certificate in First Line Management and Leadership Level 3

25

HIGHLIGHTS 2010

26

Certificate in Hauora (Elderly Health Care) Level 4

He Waka Tangata: Certificate in Community Innovation (Applied) Level 4

Diploma in Hauora (Elderly Health Care) Level 5

The Certificate in Hauora (Elderly Health Care) provides an introduction to the knowledge and skills that enable tauira to care for the elderly. The programme includes concepts surrounding wellness for the elderly, fundamentals of care provision and care within the health system. It also provides knowledge about looking after the carer. Emphasis is placed on caring for elderly Māori and the additional requirements that ensure care is culturally appropriate.

He Waka Tangata – Level 4 provides tauira with an opportunity to use the skills they learnt in He Waka Tangata – Level 3. In this Level 4 programme, each tauira is guided and supported to establish a project in his/her community. Projects can be undertaken individually, in small groups or as a class group. Each tauira establishes a tuakana/teina relationship with a mentor (either within the programme, or in the community) who provides support while the project is established. Assessment for the programme is provided by project stakeholders made up of the community affected by the initiative.

The Diploma in Hauora (Elderly Health Care) helps tauira further develop and enhance skills in caring for the elderly, especially elderly Māori, and builds on the Level 4 certificate of the same name. Tauira enrolled in this programme will explore Māori models of wellness in more depth and gain a more specific understanding of the health care profession to enable them to apply this knowledge appropriately in today’s world.

Te Aupikitanga ki te Reo Kairangi Level 6

Diploma in Māori Governance and Leadership Level 6

The Diploma in Hauora (Contemporary Rongoā Health Care) builds on learning gained in the Certificate in Rongoā Māori Appreciation Level 4 programme to provide knowledge and skills for the health care industry. Tauira enrolled in this diploma explore Māori models of wellness to gain a fuller understanding of therapeutic health care in a Māori context. This knowledge is combined with western health care models to produce graduates who are able to provide appropriate care in both Māori and Pākehā health care environments.

Te Aupikitanga ki te Reo Kairangi is an intermediate-level total immersion reo Māori programme. Following on from Te Pūtaketanga o Te Reo - Level 4, this programme helps tauira develop an intermediate level of fluency and proficiency in te reo Māori and tikanga Māori for use in a wide range of contexts.

The Diploma in Māori Governance and Leadership is designed for people who currently work as trustees in a whānau, hapū or iwi trust. This programme provides skills in critical thinking, public speaking (oratory), leadership, protocols, and rites and customs within Māori governance and leadership. Āhuatanga Māori is interwoven through this programme to ensure key concepts, values and philosophies are central to programme delivery.

HIGHLIGHTS 2010

Diploma in Hauora (Contemporary Rongoā Health Care) Level 5

27

Rangahau 2010 - Highlights Te Wānanga o Aotearoa is committed to increasing the quality and quantity of scholarly research (rangahau) activity throughout the organisation by providing kaimahi with continual opportunities to engage in rangahau projects. These opportunities enable kaimahi to present at conferences (local, national and international) and publish their work (internally and externally).

Activities contribute to: • the advancement and enhancement of Māori/indigenous bodies of knowledge • development of kaimahi capability in rangahau • informing ako (teaching and learning) and organisational practices.

During 2010, Te Wānanga o Aotearoa continued to develop its rangahau capability. This work built on that of previous years, focusing on exploration and development of a suitable indigenous research paradigm. This approach opens up opportunities for research to be conducted in a respectful, contextually-appropriate and culturally-rich rangahau environment. It honours, upholds and protects traditional mātauranga while connecting this knowledge with current and future realities.

Key symposia hosted during 2010 include: • • • • •

Te Tai Tonga Rangahau Symposia – 2010 Matatuhi 2010 - Tainui Rohe Rangahau Symposium Ako Wānanga Symposium He Poutangata, He Poukōrero The Student Support Research Symposium.

HIGHLIGHTS 2010

Te Wānanga o Aotearoa kaimahi also presented at a range of external symposia - both nationally and internationally. These included: • • • • •

9th Annual Hawaii International Conference on Education International Journal of Arts and Science Conference Ngā Pae o te Māramatanga – Mātauranga Taketake: Traditional Knowledge Conference New Zealand SharePoint Conference Literacy and Numeracy for Adults Symposium.

A key rangahau publication at Te Wānanga o Aotearoa during 2010 was the organisational rangahau journal, Toroa-te-Nukuroa Vol. V, and He Pātaka Kai He Pātaka Tāngata – 2010.

He Pātaka Tangata, He Pātaka Kai - 2010 (the Research Register of Te Wānanga o Aotearoa) contains a full list of rangahau publications by kaimahi and tauira.

This publication can be viewed at Te Wānanga o Aotearoa libraries throughout the country or online at: http://www.twoa.digisite.co.nz/1/

28

Computing tauira, Raroera Campus - Hamilton

Governance and Management 2010

29

Governance and Management Members of Te Mana Whakahaere as at 31st December 2010

Lloyd Anderson

Matthew Goodall

Bentham Atirau Ohia

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

Tauira Representative Affiliated with the Aotea waka DipTchg (ECE), Dip Te Ara Reo Māori (Level 5), Cert Mauri Ora, Cert Mahi Ora

Te Pouhere – Chief Executive Officer Ngāi Te Rangi, Ngāti Pūkenga, Ngāti Ranginui, Te Āti Awa, Ngāti Rārua MBA, BA, DipTchg

(to July 2010) Business New Zealand Nominated Member Te Āti Awa Dip Social Work

Associate Professor Manuka Henare

Marie Panapa JP

Ministerial Appointment Te Rarawa, Te Aupōuri, Ngāti Kuri PhD, BA (Hons) (VUW)

General Staff Representative Te Āti Awa, Taranaki BEd (Massey)

Richard Batley (Chair)

Tania Hodges

Peter Skerrett

Co-opted Member Ngāti Tama, Ngāti Maniapoto, Waikato, Raukawa CA, BMS

Ministerial Appointment Ngāti Kahungunu, Ngāti Ranginui, Ngāti Haua, Ngāti Tūwharetoa MBA (with Distinction), GradDipMgmtStud, GradDip Te Reo Māori, PGCBR, BSocSci, RPN

(to October 2010) Academic/Tutorial Staff Representative Ngāi Tahu, Waitaha, Kāti Mamoe, Ngāti Pikiao, Ngāti Te Rangiunuora, Ngāti Whakaue, Ngāti Unu, Waikato, Ngāti Maniapoto BAppSocSci (Te Reo and Māori Development), Dip Tertiary Teaching

Neville Baker

GOVERNANCE AND MANAGEMENT

Dr Toby Curtis

30

Co-opted Member Ngāti Rongomai, Te Arawa PhD, MA(Hons), BA, DipTchg

Peter Joseph

Deirdre Dale MNZM JP

June McCabe

Ministerial Appointment BA (SocSci)

Ministerial Appointment Ngāpuhi, Te Rarawa, Te Aupōuri, Ngāti Kahu, Ngāti Kahurau MBA

Manaoterangi E Forbes Co-opted Member Ngāti Maniapoto, Tainui Waka DipTchg, Dip in Te Arataki Manu Kōrero

NZCTU Nominated Member Te Arawa, Tūhourangi, Ngāti Pikiao

Parekāwhia McLean (Deputy Chair) (to February 2010) Co-opted Member Waikato, Ngāti Maniapoto MA, MSocSci

Rev Te Napi Tutewehiwehi Waaka OBE Kaumātua Ngāti Pikiao (Te Arawa), Ngāti Māhanga (Tainui) Adj Professor, DipTheol, DipTchg (Secondary)

Vince Hapi Academic/Tutorial Staff Representative Waikato, Raukawa Tainui MMPD, BA, BEd, Te Panekiretanga o te Reo

Management

as at 31st December 2010

Dr Shane Edwards Kaihautū – Marautanga (Curriculum and Research) Ngāti Maniapoto PhD, MA (Hons), PGDipEcoDev, GDipHE, BEd, DipTchg, NCB

Hinerangi Raumati

Matthew Maynard

Acting Kaihautū – Titiraukura (Operations Support Services) (from 1st June 2010) Ngāti Mutunga, Waikato BMS, MMS, CA

Regional Manager – Te Tai Tonga Rongowhakaata BBus

Kingi Wetere Kieran Hewitson Associate Kaihautū – Marautanga Ngāti Porou, Te Whānau-a-Apanui BSocSci

General Manager – Open Wānanga Ngāti Maniapoto NZCE

Ray Miller Associate Kaihautū – Whakaū Kounga Ako (Delivery) MA (Hons), BA, DipTchg

Neville King

Jeremy Morley

Regional Manager – Waiariki Ngāti Pikiao, Ngāti Ngāraranui, Ngāi Te Rangi BSocSci, DipTchg

Kaihautū – Titiraukura (Operations Support Services) (to 30th April 2010) BA, DipAcc, CA

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

Turi Ngatai MNZM

Te Kowhai Ohia

Regional Manager – Tāmaki Makaurau/Te Tai Tokerau Ngāti Ranginui, Ngāti Awa, Ngāti Pikiao BEd, DipATE

Ripeka Paraone

Kaiwhakahaere a Rohe

Kaihautū – Whakaū Kounga Ako (Delivery) Ngāi Te Rangi, Ngāti Ranginui PGDipEd, BEd, DipTchg

Yvonne O’Brien

Haimona Maruera Regional Manager – Papaiōea Ngāti Ruanui BAdult Ed Te Tohu Pōkairua Kura Kaupapa Māori (DipTechEd)

Area Manager – Te Waipounamu Ngāi Tahu Whānui, Ngāti Kahungungu ki Wairarapa, Rangitāne BEd, TTC, DipTchg

Brad Totorewa Regional Manager – Tainui Ngāti Naho, Ngāti Mahuta MMPD (First Class Hons) DipTchg

Toby Te Anini o Rongo Westrupp Regional Manager – Whirikoka Rongomaiwahine, Rongowhakaata, Te Whānau-a-Apanui DipTchg, Higher DipTchg

GOVERNANCE AND MANAGEMENT

Ngā Kaihautū

Associate Kaihautū – Marautanga Ngāi Te Rangi, Ngāti Pūkenga, Ngāti Ranginui, Te Āti Awa, Ngāti Rārua BEd, DipTchg

31

Governance

Matataki – Risk management

Te Mana Whakahaere is the governing body of Te Wānanga o Aotearoa. It is charged with creating a strong future for the organisation by leading and guiding it towards achieving its kaupapa and vision.

Te Mana Whakahaere members ensure that the interests of the organisation and its stakeholders are protected and ensure that all statutory requirements are met.

Our matataki (risk) framework provides a system for governance and management of strategic and operational matataki at Te Wānanga o Aotearoa. While overall responsibility for matataki sits with Te Mana Whakahaere, Te Komiti Ārai i ngā Tūpono (the Audit and Risk Management Committee) is delegated with responsibility for providing assurance to Te Mana Whakahaere regarding integrity of financial reporting, effectiveness of internal control, risk management and internal and external audit activity.

The following sub-committees of Te Mana Whakahaere have been established to help it meet its obligations: • Te Rautiaki Mātauranga The role of Te Rautiaki Mātauranga is to determine the educational standards and direction of Te Wānanga o Aotearoa and advise on academic matters. In addition, the committee has responsibility for promoting the maintenance and advancement of an indigenous body of knowledge and maintaining educational standards.

• Te Komiti Ārai i ngā Tūpono Te Komiti Ārai i ngā Tūpono assists Te Mana Whakahaere to oversee the integrity of financial reporting, internal control, risk management, and internal and external audit functions.

GOVERNANCE AND MANAGEMENT

• Executive Committee The objectives of the Executive Committee are to ensure Te Wānanga o Aotearoa achieves its obligation of being a good employer. The committee also recommends human resource strategy and sets remuneration and performance levels for Te Pouhere.

32

The matataki framework includes processes for: • •

• •

regular assessment of strategic and operational matataki identifying and reporting significant matataki (and associated action plans) to Te Komiti Ārai i ngā Tūpono managing an annual internal audit programme developing, monitoring and completing improvement plans once the findings of each internal audit have been finalised.

At an operational level, Te Wānanga o Aotearoa is moving into an era that focuses on driving Te Toi Roa (organisational excellence) through Aromatawai (self-reflection and review) and ongoing quality improvement activity. The organisation is also in the process of embedding Ngā Ture Whakapai (our legislative compliance framework) that focuses on promoting understanding and awareness of legislative responsibilities. These activities naturally complement matataki activity and can be focused in areas where operational matataki have been identified.

Corporate responsibility

Te Wānanga o Aotearoa takes its responsibilities seriously and is committed to being a responsible and caring organisation.

Cultural Te Wānanga o Aotearoa recognises the critical importance of revitalising mātauranga Māori and enhancing the development of the mātauranga Māori continuum (with its inherent paradigms) as part of its obligation to enliven tikanga and āhuatanga Māori. Mātauranga Māori forms the bedrock of all programme development and practices at Te Wānanga o Aotearoa. The advancement of mātauranga Māori paradigms by the organisation and the active promotion of these helps support the vitality of Te Ao Māori now and into the future.

Each year, Te Wānanga o Aotearoa connects thousands of people with these paradigms as ways of living through educational delivery as normal and implicit practice.

Economic Te Wānanga o Aotearoa views education that leads to financial independence as a key strategy to reversing the negative indicators often associated with intergenerational non-participation in tertiary education. Te Wānanga o Aotearoa is committed to assisting tauira to achieve their study goals as a step towards gaining meaningful employment. For some tauira, this means starting and operating their own businesses. For others, it means learning more advanced skills necessary to enter employment or progress as an employee in an area of their choosing.

Social Te Wānanga o Aotearoa is a conduit for community connectedness. The organisation often uses existing community facilities as classrooms for delivery of its programmes, including schools, halls, marae and other community venues. These partnerships provide income for these facilities, helping to support and protect these invaluable community resources. They also help Te Wānanga o Aotearoa to stay connected with the communities it serves.

Te Wānanga o Aotearoa programmes emphasise the value of bringing people together in safe and supportive environments. Programmes nurture meaningful relationships through practices such as whanaungatanga and manaakitanga, values that are central to all programmes.

Te Wānanga o Aotearoa is also committed to supporting and sustaining local communities by delivering its programmes in smaller towns across Aotearoa New Zealand rather than centralising delivery in main centres. This strategy enables tauira to study locally and remain with their whānau, as well as creating local employment opportunities and generating a flow of funds in support of local community sustainability.

Environmental Te Wānanga o Aotearoa is a future-focused organisation that understands that each of us is a kaitiaki with responsibility for protecting our environment for future generations. As such, Te Wānanga o Aotearoa is committed to providing systems and processes that support each kaimahi in their duty of kaitiakitanga.

This includes systems that promote waste minimisation, energy efficiency, pollution prevention, bio-diversity protection and climate change mitigation.

We do these things to ensure our tamariki and mokopuna have a world to inherit.

GOVERNANCE AND MANAGEMENT

Te Wānanga o Aotearoa was originally established to provide educational opportunities to help improve the social and economic well-being of those who had previously had negative experiences with the secondary education system. As a Māori organisation, Te Wānanga o Aotearoa has been committed to transferring cultural knowledge and to encouraging responsible kaitiakitanga over Papatūānuku.

Bentham Ohia Te Pouhere o Te Wānanga o Aotearoa

33

Rohe delivery sites

Tāmaki Makaurau/Te Tai Tokerau

(09) 256 5900

Auckland/Northland

1

2 4

3

1

Kaitāia

2

Whangaroa 1

3

Hokianga

4

Whangarei

5

Wellsford

4

6

North Shore

5

7

Manukau

7

Queen Street

7

2

Tainui

(07) 849 9241

Waikato

1

Rāhui Pōkeka

2

Raroera

Huntly

Hamilton

3

6 7

1

3

Apakura

4

Tokoroa

5

Maniapoto

6

Mangakōtukutuku

Te Awamutu

2 6 3 4 5

Hamilton

New Lynn

5

Waiariki 6

6

(07) 349 2360

Bay of Plenty

Papaiōea

1

Tauranga Moana

1

Hastings

2

Rotorua

2

New Plymouth

3

Whakatāne

3

Whanganui

4

Kawerau

4

Palmerston North

5

Taupō

1 2

4

(06) 355 3381

Central North Island

2

3

1

3 4

GOVERNANCE AND MANAGEMENT

5

1 2

Tāmaki Makaurau/Te Tai Tokerau

4

Auckland/Northland

Tainui

Whirikoka East Coast/Poverty Bay

5

Waikato

Papaiōea Central North Island

East Coast/Poverty Bay

(06) 867 5960

Te Tai Tonga

1

Ōpōtiki

1

Porirua

2

Gisborne

1

Lower Hutt

1

Upper Hutt

2

Picton

3

O-Tautahi

1

Wellington/South Island

(04) 237 7166

2

Christchurch

3

Waiariki Bay of Plenty

6

Te Tai Tonga Wellington/South Island

To contact a service centre call 0800 355 553 34

Whirikoka

2

4

Wanaka

5

Queenstown

6

Dunedin

7

Invercargill

3 4 5 6 7

1

Tauira Information 2010

35

Tauira Information 2010 This year’s programme graduation rate (70%) was the highest in the organisation’s history and continues a trend of year-on-year increases since 2006. Te Wānanga o Aotearoa has put significant effort into kaiako capability development in recent years and this year’s graduation rate can be partially attributed to this work. Other contributing factors include a rejuvenated programme portfolio, which assists in retaining tauira, and a commitment to continuous quality improvement throughout the organisation. These activities continue to enhance organisational systems and processes, programmes, learning environments, and teaching and learning practices.

Te Wānanga o Aotearoa recorded an increase in consumed EFTS during 2010 and, although the number of tauira studying with the organisation was slightly less than in 2009, numbers were still in excess of 35,000. In alignment with previous years, the organisation continued to attract significant numbers of Māori and Pasifika tauira and remained the largest single provider of education to these tauira in Aotearoa New Zealand. As always, Te Wānanga o Aotearoa continued to welcome people of all ethnicities, and diversity of its tauira population is a key strength.

In line with previous years, tauira reported the unique learning environment, programmes offered and the whānau atmosphere as determining factors in their choice to study with Te Wānanga o Aotearoa. The organisation remains committed to delivering the engaging style of education for which it has gained a sound reputation and continues to look towards a bright future.

TAUIRA INFORMATION

The kaimahi of Te Wānanga o Aotearoa humbly present the results in this section as a representation of the commitment of tauira and kaiako to the principle of whānau transformation through education.

36

Raihi Hunia & Jhenara Asquith - Rotorua

Tauira achievement

Tauira achievement remained high at Te Wānanga o Aotearoa during 2010 with the organisation recording increases in course completion and programme graduation rates compared with 2009 figures. These increases result from continuous quality improvement initiatives implemented across the organisation. A number of these initiatives were implemented under consultation with Janice Shiner, the previous chief executive officer of the Tertiary Education Commission. We acknowledge Janice’s contribution to helping us achieve these results.

Course retention The organisational course retention target for 2010 was ≥80%. Te Wānanga o Aotearoa exceeded this target, achieving a course retention rate of 81%.

Course retention has improved significantly since 2006 as a result of targeted enrolment processes and improvements made to tauira pastoral care. Continuous quality improvement initiatives ensure that tauira are enrolled on a programme that meets their needs and aspirations and that tauira pastoral care needs are identified early to enable appropriate support to be offered.

The following table shows course retention statistics from December Single Data Returns (SDR) for 2006 to 2010.

Course retention

2006

2007

2008

2009

2010

74%

75%

80%

82%

81%

The following chart shows course retention statistics for 2006 to 2010. %

74% 2006

75% 2007

80% 2008

82% 2009

81% 2010

100

80

60

40

TAUIRA INFORMATION

Te Wānanga o Aotearoa remains committed to supporting tauira to achieve their educational goals and aspirations. The organisation measures its success in this regard through its tauira achievement rates: course retention, course completion and programme graduation.

20

0

37

Course completion The organisational course exceeded this target with rate results from changes professional development Wānanga o Aotearoa.

Programme graduation completion rate target for 2010 was ≥70%. Te Wānanga o Aotearoa a course completion rate of 78%. The improved course completion made to tauira pastoral care, academic support systems and kaiako initiatives as part of the continuous improvement philosophy at Te

The following table shows course completion statistics from December SDRs for 2006 to 2010.

Course completion

2006

2007

2008

2009

2010

70%

71%

78%

77%

78%

The following chart shows course completion statistics for 2006 to 2010.

TAUIRA INFORMATION

%

38

70% 2006

71% 2007

78% 2008

77% 2009

The organisational programme graduation rate target for 2010 was ≥50%. Te Wānanga o Aotearoa significantly exceeded this target with a programme graduation rate of 70%. The improved rate results from the commitment of tauira to achieving their educational aspirations and the dedication of kaiako in assisting tauira to do this. Improvements have also been made to tauira pastoral care processes and academic support systems and kaiako professional development initiatives.

The following table shows programme graduation statistics for 2006 to 2010.

Programme graduation

2006

2007

2008

2009

2010

53%

57%

61%

68%

70%

The following chart shows programme graduation statistics for 2006 to 2010.

78% 2010

%

100

100

80

80

60

60

40

40

20

20

0

0

53% 2006

57% 2007

61% 2008

68% 2009

70% 2010

Tauira satisfaction Te Wānanga o Aotearoa continued to record high levels of tauira satisfaction during 2010. Most notably, 91% of tauira across the country were very satisfied or satisfied with their kaiako and 90% of tauira were very satisfied or satisfied with their learning environment. Tauira also recorded satisfaction ratings above 85% for the quality of learning resources, their programmes of learning and the quality of facilities on their campus.

Tauira numbers The number of tauira choosing an education with Te Wānanga o Aotearoa remained strong during 2010. However, tauira numbers decreased by 1.9% on 2009 figures.

The following table shows tauira numbers extracted from December SDRs for 2006 to 2010.

Te Wānanga o Aotearoa uses qualitative feedback recorded on tauira evaluation forms to inform continuous improvement activities.

Number of tauira

2006

2007

2008

2009

2010

42,455

36,941

35,075

36,695

35,991

Tauira engagement

Tauira engagement is measured by the number of tauira enrolling at Te Wānanga o Aotearoa and the number of EFTS consumed each year. During 2010, the organisation recorded a decrease in tauira numbers, but an increase in consumed EFTS. This anomaly results when a larger proportion of tauira choose to study programmes of longer duration (and higher EFTS value) within a constrained funding environment.

The following chart shows tauira numbers for 2006 to 2010.

No. of tauira

42,455 2006

36,941 2007

35,075 2008

36,695 2009

35,991 2010

50,000

40,000

30,000

20,000

TAUIRA INFORMATION

Te Wānanga o Aotearoa is committed to providing all potential tauira with equal access to educational opportunities and providing those who enrol with the skills that enable them to be successful in their studies. As part of this commitment, the organisation eliminates many of the barriers that prevent people from accessing tertiary education. Te Wānanga o Aotearoa also provides extensive support services and facilities that ensure that those who engage stay engaged.

10,000

0

39

Consumed EFTS During 2010, Te Wﾄ］anga o Aotearoa consumed 21,660 EFTS against a target of 21,591. Total consumed EFTS increased by 2.1% on 2009 figures as a result of a shift in the mix of provision as the organisation continues to realign its strategic direction to meet the objectives of its strategic plan and the Tertiary Education Strategy.

Variation between planned and consumed EFTS falls within the required ﾂｱ3% threshold set down by the Tertiary Education Commission.

The following table shows consumed EFTS from December SDRs for 2006 to 2010.

Consumed EFTS

2006

2007

2008

2009

2010

19,670

18,578

19,030

21,210

21,660

The following chart shows consumed EFTS for 2006 to 2010.

No. of tauira

19,670 2006

18,578 2007

19,030 2008

21,210 2009

21,660 2010

25,000

TAUIRA INFORMATION

20,000

15,000

10,000

5,000

0

40

Whakairo tauira, Rotorua Campus - Rotorua

Tauira demographics The tauira demographic profile of Te Wānanga o Aotearoa reflects areas of need within the communities served by the organisation. Since inception, Te Wānanga o Aotearoa has consistently attracted high numbers of Māori, women and people aged over 25 years of age with low or no secondary school qualifications. Tauira demographic trends remained relatively stable in most areas during the 2010 period.

Ethnicity profile Te Wānanga o Aotearoa is the largest single provider of tertiary education to Māori and Pasifika tauira throughout Aotearoa New Zealand. In 2010, 21,722 tauira (more than 60%) indicated they had Māori or Pasifika whakapapa.

The following table shows numbers of tauira Māori enrolling with the organisation from 2006 to 2010.

Data are drawn from December SDRs.

Age profile In 2010, the age profile of tauira remained relatively consistent with those recorded for previous years.

Increases in the ‘under 24 years’ age bracket continued as Te Wānanga o Aotearoa worked to attract younger tauira. This increase was matched by a decrease in tauira aged over 40 years. These trends are a reflection of the initial success of the Mātātahi Mataora strategy and will continue in the coming years as Te Wānanga o Aotearoa continues to implement the strategy across the country.

Tauira Māori

2006

2007

2008

2009

2010

20,372

15,784

15,379

15,654

18,020

The following table shows age demographic statistics from December SDRs for 2006 to 2010.

Tauira age

2006

2007

2008

2009

2010

Under 24 years

10%

10%

10%

13%

14%

25 to 39 years

39%

36%

33%

33%

34%

40 years plus

51%

54%

57%

54%

52%

Gender profile

The following chart plots numbers of tauira Māori enrolled at Te Wānanga o Aotearoa from 2006 to 2010.

No. of tauira

20,372 2006

15,784 2007

15,379 2008

15,654 2009

18,020 2010

25,000

In line with previous years, Te Wānanga o Aotearoa continued to attract larger numbers of female than male tauira during 2010. In 2010, the tauira gender profile shifted by 1% in favour of males.

15,000

The following table shows tauira gender statistics from December SDRs for 2006 to 2010.

10,000

Gender

2006

2007

2008

2009

2010

Male

30%

30%

30%

31%

32%

Female

70%

70%

70%

69%

68%

TAUIRA INFORMATION

20,000

5,000

0

41

In 2010, numbers of Pasifika tauira enrolling at Te Wānanga o Aotearoa increased by 36% to 3,702.

The following table shows numbers of Pasifika tauira enrolling with the organisation from 2006 to 2010. Data are drawn from December SDRs.

Pasifika tauira

2006

2007

2008

2009

2010

1,817

2,036

2,360

2,705

3,702

The following chart plots numbers of Pasifika tauira enrolled at Te Wānanga o Aotearoa from 2006 to 2010.

No. of tauira

4,000

3,000

1,817 2006

2,036 2007

2,360 2008

2,705 2009

3,702 2010

Highest secondary award Since inception, Te Wānanga o Aotearoa has been committed to providing tertiary education opportunities for those people previously marginalised by the secondary education system. The quality of programmes delivered by the organisation and support offered enables re-engaged learners to be successful in their study.

In 2010, Te Wānanga o Aotearoa continued to attract a significant proportion of tauira (35%) with no formal secondary school qualifications.

The following table shows statistics for highest secondary qualifications achieved by tauira enrolling with Te Wānanga in 2009 and 2010. Information is drawn from the tauira database of Te Wānanga o Aotearoa.

Highest secondary award

2009

2010

No formal secondary school qualification

38%

35%

14 or more credits at any level

2%

3%

NCEA Level 1 or School Certificate

12%

12%

NCEA Level 2 or Sixth Form Certificate

9%

10%

University Entrance

10%

10%

NCEA Level 3 or Bursary or Scholarship

5%

5%

Overseas qualification

13%

13%

Other qualification

11%

13%

The following chart shows the highest secondary qualification achieved by tauira enrolling with Te Wānanga o Aotearoa in 2010.

TAUIRA INFORMATION

2,000

Other None

Overseas

1,000

NCEA 3 14+ Credits

UE

0

NCEA 1

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NCEA 2

Prior activity profile

Tauira with disabilities

The tauira prior activity profile has remained relatively constant. Exceptions include a decrease in the proportion of tauira enrolling at Te Wānanga o Aotearoa direct from the workforce and an increase in the proportion of tauira who were tertiary students prior to enrolling.

In line with its commitment to reducing barriers to education, Te Wānanga o Aotearoa continued to attract a significant proportion of tauira who had disabilities.

The following table shows activities tauira were engaged in immediately prior to enrolling with Te Wānanga o Aotearoa for the 2006 to 2010 period. Information is drawn from the tauira database of Te Wānanga o Aotearoa.

The following table shows percentages of tauira who enrolled with Te Wānanga o Aotearoa between 2006 and 2010 who reported having disabilities. Information is drawn from the tauira database of Te Wānanga o Aotearoa.

Tauira with disabilities Tauira prior activity

2006

2007

2008

2009

2010

Non-workforce

32%

29%

29%

30%

30%

Workforce

49%

54%

55%

52%

49%

Tertiary Student

10%

10%

11%

13%

16%

Secondary

2%

2%

2%

2%

2%

Overseas

6%

4%

2%

2%

2%

Other

1%

1%

1%

1%

1%

The following chart shows prior activity profile statistics for tauira enrolling at Te Wānanga o Aotearoa in 2010.

2006

2007

2008

2009

2010

10%

10%

11%

10%

11%

The following chart shows statistics for tauira with disabilities enrolling with Te Wānanga o Aotearoa from 2006 to 2010. %

10% 2006

10% 2007

11% 2008

10% 2009

11% 2010

12

10

6

Workforce 4

Other Overseas Secondary

2

Tertiary

0

TAUIRA INFORMATION

8

Non-workforce

43

Kaimahi Information Kaimahi numbers

Kaimahi gender profile

Full-time equivalent (FTE) employee numbers grew at Te Wānanga o Aotearoa during 2010. Some of this growth resulted from additional kaimahi employed to support the transformation of the organisation’s programme portfolio to include more degree provision. Additional increases resulted from capacity and capability-building in support of the Mātātahi Mataora strategy (the organisation’s youth strategy).

Growth also resulted from kaimahi being employed to explore new business development initiatives that will bring alternative revenue streams to the organisation.

The kaimahi gender profile has remained relatively constant (within 3%) for the past five years.

The following table shows FTE employee numbers from August SDRs for 2006 to 2010.

FTE employees

2006

2007

2008

2009

2010

1,002

853

890

1,033

1,085

The following table shows gender profile statistics for kaimahi from August SDRs for 2006 to 2010.

Gender

2006

2007

2008

2009

2010

Male

37%

37%

40%

39%

38%

Female

63%

63%

60%

61%

62%

The following chart shows kaimahi gender profile statistics for 2010.

The following chart shows numbers of FTE employees for 2006 to 2010.

FTE Employees

1,002 2006

853 2007

890 2008

1,033 2009

1,085 2010

1200

KAIMAHI INFORMATION

1000

800

600

400

200

0

44

Male

Female

Kaimahi ethnicity profile The proportion of Māori employed at Te Wānanga o Aotearoa increased by 9% during 2010.

The following table shows kaimahi ethnicity profile statistics from the kaimahi database between 2006 and 2010.

Ethnicity

2006

2007

2008

2009

2010

Māori

64%

63%

65%

63%

72%

European

10%

12%

9%

11%

13%

Pasifika

5%

5%

4%

4%

5%

Asian

3%

3%

3%

4%

3%

Other

4%

4%

3%

3%

1%

Not Specified

14%

13%

16%

15%

5%

The following chart shows kaimahi ethnicity demographics for 2010.

NZ European

Pasifika NZ Māori

Asian Other Not specified

Tāmaki Makaurau Campus - Auckland

I

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Kaimahi capability development

Wānanga Ora

Te Wānanga o Aotearoa is committed to providing learning and development opportunities that equip and empower kaimahi to perform their roles and enable them to achieve excellence. Te Wānanga o Aotearoa kaimahi attended 1,799 learning and development events during 2010. These ranged from single-day development workshops to engagement in academic study.

Te Wānanga o Aotearoa completes a kaimahi satisfaction survey called Wānanga Ora each year. The survey has been running since 2006 and is used to gather information about kaimahi knowledge and understanding of key organisational principles; satisfaction with members of Te Mana Whakahaere and management; satisfaction with the goals and performance of the organisation; and satisfaction with the work environment at Te Wānanga o Aotearoa.

The following table shows kaimahi participation in learning and development events during 2010.

Figures for 2008 and 2009 are provided for comparison.

Kaimahi capability development

2008

2009

2010

Learning events attended

1,126

1,591

1,799

Learning events included:

KAIMAHI INFORMATION

•

•

•

•

•

46

management development – internal and external management professional development training events identified during 360º Feedback Review activities kaimahi development – internal and external kaimahi professional development opportunities identified during annual performance reviews career succession planning – Te Wānanga o Aotearoa-specific leadership competency development training compliance (policies and procedures) training – compliance training delivered via an elearning system called Policy Point learning progressions framework training – a Tertiary Education Commission-funded literacy and numeracy education capability development project.

The survey, held in May 2010, obtained 456 useable responses – a response rate of 29.8%. Among the improvements recorded against results from the 2009 Wānanga Ora survey were the following.

•

•

•

In 2010, kaimahi reported stronger commitment to the organisation, its mission and values, and the associated job satisfaction they get from working at Te Wānanga o Aotearoa.

In 2010, kaimahi reported higher levels of commitment to the organisation and what it is seeking to achieve. Among kaimahi who expressed concerns, it was because they would like to see further improvements in internal structures and processes that will enable them to achieve more.

In 2010, kaimahi reported significantly improved perceptions of the external reputation of Te Wānanga o Aotearoa.

Te Wānanga o Aotearoa will use the results of Wānanga Ora 2010 as a guide to making changes that will improve kaimahi perceptions of the organisation and their role as kaimahi.

Statements of Service Performance 2010

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Statements of Service Performance

The Tertiary Education Priorities for wānanga in 2010 were:

STATEMENTS OF SERVICE PERFORMANCE

1. Strengthening of provision at diploma level and above within the wānanga 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 Māori with the tertiary education sector to assist in guiding and supporting the delivery of wānanga provision 4. Increasing cross-sector collaboration opportunities and improving staircasing and pathways between wānanga and other tertiary education organisations to maximise Māori potential opportunities 5. Strengthening of the wānanga contribution to sector-wide leadership to sustain the continued advancement of mātauranga Māori.

Performance indicators under each objective demonstrate the contribution Te Wānanga o Aotearoa is making towards achieving the objectives of the Tertiary Education Strategy, reflect our role outlined in the Education Act 1985 and respond to the aspirations of iwi, communities and industry.

Increasing quality and performance

Strengthening the engagement of iwi and Māori

Increasing cross-sector collaboration

Advancing mātauranga Māori

To achieve quality with a continuous improvement philosophy

To be a waka huia for mātauranga Māori

To be a good employer

To be a leader in positive Māori development

To ensure sustainability through multiple and profitable income streams

To promote āhuatanga Māori through our values by ethical compassion and inclusive leadership

To deliver mātauranga that drives positive cultural, social, economic and intellectual transformation

The following diagram depicts the connection between the Tertiary Education Priorities 2008 – 2010 and the strategic goals of Te Wānanga o Aotearoa.

To advance access to mātauranga Māori

Te Wānanga o Aotearoa has shown constant improvement across all indicators since 2008. This is a result of the organisation’s drive to achieve excellence and operate continuous improvement philosophies in all areas.

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Strengthening of provision at diploma level and above

To be a leader in the provision of innovative and accessible mātauranga

TE WĀNANGA O AOTEAROA Strategic Goals

Investment plans are central to describing how a tertiary organisation will use government funds to respond to the Statement of Tertiary Education Priorities 2008 – 2010 and the needs of stakeholders. The performance indicators that make up these statements of service performance are drawn from the organisation’s Investment Plan 2008 - 2010 (as negotiated with the Tertiary Education Commission).

GOVERNMENT STRATEGY Tertiary Education Priorities(2008-2010)

2010

To ensure that the needs of tauira are the primary drivers for decision-making

Te Wānanga o Aotearoa is committed to increasing the number of people with qualifications at diploma level and above. However, the need for foundation education (level 1 to 3) remains significant, as 26% of the working population have no qualification.

To increase the number of people achieving at diploma level, it is essential that programmes at foundation level continue to be offered. These programmes provide a pathway to diploma level study for those without qualifications and for those re-engaging in education.

As a result of continuous quality improvement initiatives, Te Wānanga o Aotearoa recorded significant improvements in its course and qualification completion rates. As planned, Te Wānanga o Aotearoa recorded a 9% increase in the number of tauira studying at level 4 and above. This contributes significantly to increasing the number of Māori staircasing into qualifications at diploma level and above.

Performance indicators

2008 Result

2009 Result

2010 Result

2010 Target

R = 80%

R = 82%

R = 81%

R ≥ 80%

C = 78%

C = 77%

C = 78%

C ≥ 70%

G = 61%

G = 68%

G = 70%

G ≥ 50%

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

73%

75%

80%

≥65%

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

73%

72%

80%

≥66%

First year qualification-level attrition for level 4 and above

16%

15%

14%

≤21%

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

16%

15%

15%

≤21%

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

60%

66%

70%

≥47%

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

54%

59%

65%

≥55%

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

58%

62%

67%

≥47%

Proportion of EFTS at diploma level 4 and above qualifications

35%

36%

42%

≥30%

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

51%

56%

63%

≥54%

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

38%

39%

48%

≥32%

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

STATEMENTS OF SERVICE PERFORMANCE

Objective 1: Strengthening of provision at diploma and above level within the wānanga sector

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Objective 2: Focusing capability-building efforts to achieve increased quality and performance against new benchmarks within the tertiary education reforms The Quality Reinvestment Programme projects at Te Wānanga o Aotearoa included 21 projects with the primary goal of pursuing excellence and providing tauira with quality learning experiences.

To achieve the performance indicator related to QRP milestones, project deliverables and key performance indicators agreed with the Tertiary Education Commission were completed by July 2010. These projects continue to be implemented into business-as-usual and form part of the organisation’s ability to improve and measure outcomes experienced by stakeholders. The projects were grouped into themes of: • Network of Provision, Collaboration and Distinctive Contribution This suite of projects examined how mātauranga Māori could inform and underpin the organisation’s operations, rangahau and collaborative activity with the aim of improving outcomes for tauira, stakeholders and the wider tertiary system.

STATEMENTS OF SERVICE PERFORMANCE

• Educational Sustainability Projects within this theme explored methods for creating programmes that are relevant and responsive to the needs of tauira and ensure that tauira have access to resources and support that enable them to achieve success.

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• Kaimahi Capability Kaimahi Capability projects developed a competency framework that identified the competencies required to work successfully in a wānanga environment. This framework formed the foundation of a distinctive teaching methodology based on āhuatanga Māori which will improve tauira satisfaction and achievement.

• Financial Sustainability Financial Sustainability projects enabled the organisation to implement process and technology systems to provide the organisation with a data-rich environment to support decision-making, planning and continuous quality improvement.

• Evaluation This group of projects developed methodologies that enabled Te Wānanga o Aotearoa to understand the connection between the vision, activities and anticipated outcomes.

Financial performance indicators ensure that Te Wānanga o Aotearoa is financially sustainable so that it can continue to offer education to iwi, communities and industry and contribute to whānau transformation through education. To achieve the financial performance indicators, Te Wānanga o Aotearoa implemented a Financial Management and Risk Strategy that identified milestones related to the financial drivers of revenue, personnel, overheads, capital expenditure, working capital and total balance sheet management.

2008 Result

2009 Result

2010 Result

2010 Target

Milestones achieved

Milestones achieved

Milestones achieved

TWoA set milestones achieved

Liquid assets to annual cash outflow from operations

23.41%

28.17%

26.7%

8%

Cash inflow from operations to cash outflow from operations

111%

113%

108%

108%

Budget year end ¹

4.50%

5.4%

4.1%

Breakeven ²

Milestones achieved

Milestones achieved

Milestones achieved

TWoA set milestones achieved

Performance indicators

Deliver against QRP milestones

Financial Management and Risk Strategy

¹ Surplus to total revenue expressed as a percentage ² That is, 0%

Objective 3: Strengthening the engagement of iwi and Māori within the tertiary education sector to assist in guiding and supporting the delivery of wānanga provision

Objective 4: Increasing cross-sector collaboration opportunities, and improving pathways between wānanga and other TEOs to maximise Māori potential opportunities

This objective is linked to Objective 4, as it assists Te Wānanga o Aotearoa to understand iwi and Māori aspirations and maximise opportunities for learning and success. Success in this objective is reflected in the tauira success rates for Māori under Objective 1 and the collaborative activities that improve learning pathways under Objective 4.

A key component of the Collaboration Framework involves engagement with 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.

Four initiatives were implemented in 2010 relating to the following activities:

The iwi component of the framework includes three elements that assist Te Wānanga o Aotearoa to capture the needs and satisfaction level of iwi. Those elements are the establishment of koeke (iwi advisory groups) within each region and the formation of Te Kāhui Amorangi (the national collective of koeke).

Koeke and Te Kāhui Amorangi are vehicles for gaining an understanding of iwi aspirations and needs, and for gauging the level of satisfaction and support that iwi have for Te Wānanga o Aotearoa. Koeke enable the organisation to work with iwi to respond to regionally-specific needs, while Te Kāhui Amorangi provides a macro view of iwi needs that can be addressed by the wider tertiary system.

Performance indicator Stakeholders (iwi) express satisfaction with Te Wānanga o Aotearoa

2008 Result

2009 Result

2010 Result

2010 Target

Partially achieved

Achieved

Achieved

Improvement

• sharing resources and programmes with other tertiary education organisations • providing educational pathways for tauira • developing programmes to re-engage tauira in vocational programmes.

The Graduate Destination Survey enables the organisation to evaluate the tauira experience and the impact of an education at Te Wānanga o Aotearoa. Of the 45% of tauira who re-enrolled in further study, 57% chose to stay at Te Wānanga o Aotearoa. This is a 24% increase from 2008.

Performance indicators Opportunities for collaboration are investigated Graduate destination survey shows employment (E) and pathways (P) to further education

2008 Result

2009 Result

2010 Result

2010 Target

9 investigated 6 implemented

6 investigated 6 implemented

5 investigated 4 implemented

2 opportunities investigated

P = 41% E = 68%

P = 47% E = 65%

P = 45% E = 71%

Improvement

STATEMENTS OF SERVICE PERFORMANCE

To achieve this objective, Te Wānanga o Aotearoa implemented a nationwide framework that incorporates principles, protocols, processes and procedures for capturing stakeholders’ needs and aspirations and their level of satisfaction with Te Wānanga o Aotearoa. ‘Stakeholders’ are comprised of iwi, community, tertiary sector and industry.

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Objective 5: A strengthening of the wānanga contribution to sector-wide leadership to sustain the continued advancement of mātauranga Māori The Kaupapa Wānanga and Kaupapa Rangahau projects were initiated in response to the dearth of literature available on the methods that Te Wānanga o Aotearoa could employ to achieve this objective. The goal of the projects was for Te Wānanga o Aotearoa to: • create, document and embed unique elements that combine to generate a distinctive mātauranga Māori approach to teaching and learning • build capability and capacity to create a research culture that contributes understanding of mātauranga Māori within the tertiary sector.

The Kaupapa Wānanga project was completed in June 2009. The result was the development of a philosophical base that underpins the distinctive contribution of Te Wānanga o Aotearoa. This base enables kaimahi to have the tools to embrace te ao Māori practices for the benefit of tauira and the tertiary sector.

STATEMENTS OF SERVICE PERFORMANCE

The Kaupapa Rangahau project was completed in July 2010 and established research capability and capacity to contribute to the understanding of mātauranga Māori.

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The Kaupapa Wānanga and Kaupapa Rangahau projects enabled Te Wānanga o Aotearoa to increase the depth and breadth of research outputs related to mātauranga Māori. The research centred on engaging indigenous learners, retention and advancement of traditional and contemporary bodies of knowledge and embedding ako in organisational practice.

Performance indicator

Research informs mātauranga Māori

2008 Result

2009 Result

2010 Result

2010 Target

Milestones achieved

Milestones achieved

Milestones achieved

Deliverables of QRP Project achieved

Raroera Library - Hamilton

Financial Report 2010

53

Financial Review 2010 Results for the group

Equivalent full time students (EFTS)

A comparison of the results for the Group with budget and 2009 performance is shown in the table below.

Our total EFTS for 2010 were 21,660, an increase of 2% on the results for 2009. Overall, our business programmes decreased by 257 EFTS, while our sports and fitness programmes increased by 493 EFTS. The most significant increase in EFTS in individual programmes occurred in the Certificate in Cable Logging, Te Tohu Mātauranga i te reo me ōna Tikanga Māori, the Certificate in te Reo Māori, the Certificate in Applied Sports, and the Certificate in Tikanga Marae. These increases were offset by decreases in a number of programmes, most notably the Certificate in Te Ara Reo Māori, the Certificate in Small Business Management, Mahi Ora, and the Certificate in First Steps to Business.

Performance against guidelines

Actual 2009 $’000

Actual 2010 $’000

Budget 2010 $’000

TEC guidelines

Surplus

6,217

6,817

N/A

8,125

Surplus

4.1%

4.4%

3-5%

5.4%

Comprehensive Income

8,782

6,817

N/A

8,125

53,855

42,401

N/A

50,549

1.08

1.12

1.08

1.13

25,815

16,502

N/A

22,953

126,497

123,218

N/A

112,222

Cash* Cash Inflows/Cash outflows Working Capital Net Assets

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

Results for the overall financial performance

FINANCIAL REVIEW

The results show a solid performance by the organisation as follows:

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• As a result of operating within the guidelines set down by our funders, the Tertiary Education Commission, and consistently achieving these standards, Te Wānanga o Aotearoa has been assessed as a low risk institution.

• Working capital continues to strengthen when compared with previous years.

• Net assets (equity) have increased by $14 million during the year.

• Te Wānanga o Aotearoa currently has healthy cash reserves.

Income Profiles of our income streams over the past five years are shown in the table below.

2010

2009

2008

2007

2006

Government funding

Source

90%

90%

92%

90%

90%

Student fees

4%

3%

2%

2%

2%

Other (e.g. interest, joint ventures)

6%

7%

6%

8%

8%

The income profile for 2010 has remained consistent with profiles from previous years. Of particular note is the steady increase in revenue from student fees. This has resulted from the changing mix of programmes being offered by the organisation. Government funding remains the primary source of revenue for the organisation.

Expenditure

Financial position

Profiles of our expenditure over the past five years are shown in the table below.

Cash, cash equivalents and other financial assets as a total in 2010 have exceeded budget for the year. This is due to less than anticipated spend on property, plant and equipment and programme development. During the year, we also increased our investment in financial assets with maturities of longer than 12 months. This helped contribute to interest earnings for the year being both better than budget and also better than 2009.

2010

2009

2008

2007

2006

Personnel costs

55%

52%

52%

49%

46%

Resources/administration

35%

37%

32%

32%

37%

Property costs

5%

5%

8%

8%

8%

Depreciation

5%

6%

7%

9%

9%

-

-

1%

2%

-

Impairment of assets

Personnel costs continue to increase relative to other expenditure types. This is due to a number of factors, including employing staff with higher qualifications, employing staff rather than contractors, increasing support staff for our tauira and general cost of living increases. Resource and administration costs have remained constant as a result of management’s focus on keeping variable costs under tight control.

Property costs remained fairly stable from 2009 to 2010. This results from our property rationalisation that occurred in earlier years and an ongoing commitment to ensure we are maximising utilisation of our existing space. Depreciation costs have steadily decreased over the past five years as a result of rationalising our balance sheet and changing our capitalisation thresholds.

Comprehensive income As a result of a revaluation exercise undertaken on all land and buildings owned by the organisation, this year we saw a gain on property revaluations of $2.6 million. This resulted in our total comprehensive income for the year being $8.8 million.

The organisation had a positive working capital balance at the end of the year of $25.8 million: an increase of nearly $3 million on our 2009 result and created by both current assets increasing and current liabilities decreasing. This was primarily as a result of an increase in accrued interest income and a decrease in the provision for impairment of debtors along with a property that was held for sale.

In 2009, we had $13.5 million in long-term financial assets, and in 2010 a further $3.5 million of surplus cash was placed on term deposits with maturities longer than 12 months.

Working capital is better than budget by close to $10 million. This results from better than budgeted cash reserves ($8 million) and an increased in inventory held at year end ($1 million).

Our land and buildings were revalued at the end of the year resulting in an increase in the property revaluation reserve of $2.6 million.

Overall non-current assets increased by $11.4 million. This resulted from an increase in longer term investments and purchase of land, buildings and vehicles. Thirteen programmes were developed during the year along with the purchase of software at a total cost of $2.2 million. As a result of amortisation and impairment, there was little movement in intangibles assets over the year.

Net assets as at year end are now $126.5 million, which is an increase of $14.3 million on last year.

FINANCIAL REVIEW

Source

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Cash flow The closing cash position for the year is very strong and continues to show the results of a focused approach to maximising our earning potential from our surplus cash. During 2010 we continued to achieve interest revenue of just over $3 million, which was slightly above the amount received in 2009. This level of interest income was achieved through investments in investment-rated financial institutions and varying lengths of deposit terms within our credit risk criteria. The average interest rate for cash and current financial assets in 2010 was 5.42%: a decrease of only 0.15% on what was achieved in 2009.

During the year, our cash and cash equivalents (both short and long-term) increased from $51 million to $54 million. The net surplus for the year was $6.2 million; however, when non-cash items are removed the net operating inflow of cash to the organisation was $14.5 million.

We had a net cash outflow of $11 million on investing activities. This expenditure relates mainly to property, plant and equipment purchases and improvements and programme development.

Thirteen new programmes were developed in 2010 compared with seven in 2009 highlighting the growth of the organisation and the commitment to providing more opportunities for tauira. Our focus in 2010, as in 2009, has been on property, plant and equipment with completion of major improvements on many of our large sites rather than acquisition of new buildings.

FINANCIAL REVIEW

In addition to this cash inflow, we also received $5 million as the final suspensory loan payment. This has been recognised as an equity injection.

56

Computing tauira, Raroera Campus - Hamilton

Statement of Responsibility 2010 In the financial year ended 31 December 2010, Te Mana Whakahaere (the Council) and the management of Te Wānanga o Aotearoa were responsible for: • preparation of the annual financial statements and statement of service performance and the judgements used in them • establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

Richard Batley

Bentham Ohia

Chair - Te Mana Whakahaere CA, BMS (Waikato)

Te Pouhere (CEO) MBA, BA, DipTchg

30 March 2011

30 March 2011

Date

Date

STATEMENT OF RESPONSIBILITY

In the opinion of Te Mana Whakahaere and management of Te Wānanga o Aotearoa, the financial statements and statements of service performance fairly reflect the financial position and operations of Te Wānanga o Aotearoa for the year ended 31 December 2010.

57

Independent Auditor’s Report For the year ended 31 December 2010 To the readers of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka and group’s financial statements and statement of service performance for the year ended 31 December 2010 The Auditor-General is the auditor of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka (the Wānanga) and group. The Auditor-General has appointed me, B H Halford, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the Wānanga and group on her behalf.

We have audited: • the financial statements of the Wānanga and group on pages 60 to 103, that comprise the statement of financial position as at 31 December 2010, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and • the statement of service performance of the Wānanga and group on pages 48 to 52.

Opinion In our opinion:

Basis of Opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and statement of service performance are free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance.

If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and statement of service performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and statement of service performance, whether due to fraud of error. In making those risk assessments, we consider internal control relevant to the Wānanga and group’s preparation of the financial statements and statement of service performance that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Wānanga and group’s internal control.

• the financial statements of the Wānanga and group on pages 60 to 103: o comply with generally accepted accounting practice in New Zealand; and

INDEPENDENT AUDITOR’S REPORT

o fairly reflect the Wānanga and group’s:

58

An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been consistently applied;

• financial position as at 31 December 2010; and

• the reasonableness of the significant accounting estimates and judgements made by the Council;

• financial performance and cash flows for the year ended on that date;

• the adequacy of all disclosures in the financial statements and statement of service performance; and

• the statement of service performance of the Wānanga and group on pages 48 to 52: o complies with generally accepted accounting practice in New Zealand; and o fairly reflects the Wānanga and group’s service performance achievements measured against the performance targets adopted for the year ended 31 December 2010.

Our audit was completed on 30 March 2011. This is the date our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence.

• the overall presentation of the financial statements and statement of service performance.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Council The Council is responsible for preparing financial statements and a statement of service performance that: • comply with generally accepted accounting practice in New Zealand; • fairly reflect the Wānanga and group’s financial position, financial performance and cash flows; and • fairly reflect the Wānanga and group’s service performance achievements.

The Council is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error.

The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004.

Responsibilities of the Auditor When are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004

Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

Other than the audit, we have no relationship with or interests in the Wānanga or any of its subsidiaries.

B H Halford Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

Kaiako, Rotorua Campus - Rotorua

I

59

Statement of Comprehensive Income For the year ended 31 December 2010

Notes

Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

Income Government funding

3(a)

138,865

139,873

138,865

139,873

134,905

134,905

Tuition fees

3(b)

5,478

6,001

5,478

6,001

4,852

4,852

3,189

2,221

3,034

2,144

2,969

2,888

5,955

5,759

13,932

12,237

6,422

12,272

153,487

153,854

161,309

160,255

149,148

154,917

4

80,409

80,532

74,023

74,058

74,013

67,775

14, 16

7,852

8,488

7,130

7,345

8,452

7,603

Interest income Other income

3(c)

Total income

Expenditure Personnel costs

STATEMENT OF COMPREHENSIVE INCOME

Depreciation and amortisation expense Finance costs

5

41

-

41

-

-

-

Other expenses

6

58,968

58,017

76,242

72,607

58,558

73,283

147,270

147,037

157,436

154,010

141,023

148,661

6,217

6,817

3,873

6,245

8,125

6,256

2,565

-

2,394

-

-

-

Total other comprehensive income

2,565

-

2,394

-

-

-

Total comprehensive income

8,782

6,817

6,267

6,245

8,125

6,256

Total expenditure

Surplus/(deficit)

Other comprehensive income Gains/(loss) on property revaluations

20

Explanation of significant variances against budget is detailed in note 24.

The accompanying notes form part of these financial statements.

60

Statement of Changes in Equity For the year ended 31 December 2010 Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

112,222

111,401

96,292

96,293

98,000

83,939

Surplus/(deficit)

6,217

6,817

3,873

6,245

8,125

6,256

Other comprehensive income

2,565

-

2,394

-

-

-

Total comprehensive income

8,782

6,817

6,267

6,245

8,125

6,256

488

-

488

-

1,097

1,097

5,000

5,000

5,000

5,000

5,000

5,000

126,492

123,218

108,047

107,538

112,222

96,292

Notes Balance at 1 January

Comprehensive income

Non-comprehensive income items Capital contributions from the Crown

20

Suspensory loans from the Crown Balance at 31 December

20

STATEMENT OF CHANGES IN EQUITY

The accompanying notes form part of these financial statements.

61

Statement of Financial Position As at 31 December 2010

Notes

Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

Current assets Cash and cash equivalents

7

20,304

27,401

17,093

26,954

21,549

19,571

Debtors and other receivables

8

2,263

2,100

2,300

2,100

1,406

1,414

Inventories

10

1,894

889

1,023

780

1,570

833

399

-

394

-

299

274

Prepayments Assets held for sale

11

200

-

200

-

-

-

Other financial assets

9

16,551

1,500

15,500

-

15,500

15,500

41,611

31,890

36,510

29,834

40,324

37,592

8,914

7,171

18,790

16,993

9,660

19,790

625

682

625

682

835

835

6,257

7,535

5,658

6,900

6,876

6,355

Total current liabilities

15,796

15,388

25,073

24,575

17,371

26,980

Working capital surplus/(deficit)

25,815

16,502

11,437

5,259

22,953

10,612

Total current assets

Current liabilities Creditors and other payables

12

Student fees

STATEMENT OF FINANCIAL POSITION

Employee entitlements

62

13(a)

Statement of Financial Position (continued)

Notes

Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

Non-current assets Investment in Open Wānanga

17

-

-

1

-

-

1

Other financial assets

9

17,000

13,500

17,000

13,500

13,500

13,500

Property, plant and equipment

14

78,071

88,677

75,825

85,822

70,343

68,414

Intangible assets

16

5,606

4,539

3,784

2,957

5,426

3,765

Total non-current assets

100,677

106,716

96,610

102,279

89,269

85,680

Net assets

126,492

123,218

108,047

107,538

112,222

96,292

Retained earnings

20

114,007

123,218

95,610

107,538

102,324

86,271

Property revaluation reserve

20

12,485

-

12,437

-

9,898

10,021

126,492

123,218

108,047

107,538

112,222

96,292

Total equity

The accompanying notes form part of these financial statements.

Richard Batley

Bentham Ohia

Chair - Te Mana Whakahaere CA, BMS (Waikato)

Te Pouhere (CEO) MBA, BA, DipTchg

30 March 2011

30 March 2011

Date

Date

STATEMENT OF FINANCIAL POSITION

Equity

63

Statement of Cash Flows For the year ended 31 December 2010 Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

136,203

136,981

136,202

136,981

133,746

133,746

5,268

6,001

5,268

6,001

5,687

5,687

5

-

6,214

4,720

2

4,342

Interest income received

2,659

2,221

2,543

2,144

3,091

2,920

Receipts from other income

5,733

10,402

7,293

10,408

6,432

7,967

Payments to employees

(81,028)

(75,679)

(74,720)

(90,749)

(73,420)

(67,252)

Payments to suppliers

(57,165)

(63,778)

(74,420)

(55,620)

(58,084)

(68,489)

(41)

-

(41)

-

-

-

11,634

16,148

8,339

13,885

17,454

18,921

-

-

-

-

-

1,500

78

-

59

-

213

172

17,500

-

17,500

-

38,400

36,900

(12,358)

(23,112)

(11,953)

(21,851)

(7,673)

(7,365)

(370)

-

(257)

-

(594)

(299)

Programme development

(1,166)

(2,454)

(654)

(1,580)

(3,301)

(2,022)

Funds to Open Wānanga

-

-

-

-

-

(4,567)

Purchase of investments

(22,051)

-

(21,000)

-

(42,150)

(42,150)

Net cash flow from investing activities

(18,367)

(25,566)

(16,305)

(23,431)

(15,105)

(17,831)

Cash flows from operating activities Receipts from government grants Receipts from tuition fees Dividend income

Interest paid Net cash flow from operating activities

Cash flows from investing activities Funds from Open Wānanga Sale of property, plant and equipment

STATEMENT OF CASH FLOWS

Sale of investments

64

Purchase of property, plant and equipment Software development

Statement of Cash Flows (continued) Group Actual 31-Dec-10 $’000

Group Budget 31-Dec-10 $’000

Parent Actual 31-Dec-10 $’000

Parent Budget 31-Dec-10 $’000

Group Actual 31-Dec-09 $’000

Parent Actual 31-Dec-09 $’000

Capital contribution from the Crown

5,488

5,000

5,488

5,000

6,097

6,097

Net cash flow from financing activities

5,488

5,000

5,488

5,000

6,097

6,097

Net increase/(decrease) in cash and cash equivalents

(1,245)

(4,418)

(2,478)

(4,546)

8,446

7,187

Cash and cash equivalents 1 January

21,549

31,819

19,571

31,500

13,103

12,384

Cash and cash equivalents 31 December

20,304

27,401

17,093

26,954

21,549

19,571

Cash flows from financing activities

STATEMENT OF CASH FLOWS

The accompanying notes form part of these financial statements.

65

Statement of Cash Flows (continued) Reconciliation from the net surplus to the net cash flows from operating activities Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

6,217

8,125

3,873

6,256

7,852

8,452

7,130

7,603

-

300

-

300

467

-

467

-

8,319

8,752

7,597

7,903

Net (gain) on disposal of property, plant and equipment

(46)

(126)

(28)

(100)

Total items classified as investing or financing activities

(46)

(126)

(28)

(100)

(324)

(35)

(190)

(74)

(39)

190

(395)

190

(Increase)/decrease in prepayments

(100)

(219)

(120)

(235)

(Increase)/decrease in interest accrued

(530)

58

(491)

(32)

2,320

796

2,354

5,169

-

(291)

-

(291)

(3,354)

(1,224)

(3,354)

(1,223)

Increase/(decrease) in student fees

(210)

835

(210)

835

Increase/(decrease) in provision for employee entitlements

(619)

593

(697)

523

Net movement in working capital

(2,856)

703

(3,103)

4,862

Net cash flow from operating activities

11,634

17,454

8,339

18,921

Surplus/(deficit) from the statement of comprehensive income Add/(less) non-cash items Depreciation and amortisation expense Fair value (gain)/loss on investment properties Asset impairment Total non-cash items

Add/(less) items classified as investing or financing activities

Add/(less) movements in working capital items (Increase)/decrease in inventories

STATEMENT OF CASH FLOWS

(Increase)/decrease in trade and other receivables

66

Increase/(decrease) in trade and other payables Increase/(decrease) in lease provision Increase/(decrease) in revenue received in advance

Notes to the Financial Statements For the year ended 31 December 2010 1. Statement of accounting policies Reporting entity

Basis of preparation

Te Wānanga o Aotearoa is a TEI domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989.

Statement of compliance

The Te Wānanga o Aotearoa group consists of the ultimate parent Te Wānanga o Aotearoa and its subsidiaries, Open Wānanga Limited (100% owned), Papatoa Forestry Limited (100% owned) and Aotearoa Scholarship Trust (100% controlled). The subsidiaries of Te Wānanga o Aotearoa are incorporated and domiciled in New Zealand.

Te Wānanga o Aotearoa has designated itself as a public benefit entity for the purpose of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).

The financial statements of Te Wānanga o Aotearoa and group for the year ended 31 December 2010 were authorised for issue on 30th March 2011 in accordance with a resolution of the councillors.

These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable financial reporting standards, as appropriate for public benefit entities.

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

Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars.

Changes in accounting policies and estimates There have been no changes in accounting policies during the financial year.

Early adopted amendments to NZ IFRS 7 Financial Instruments: Disclosures Te Wānanga o Aotearoa has early adopted the amendments to NZ IFRS 7. The effect of early adopting these amendments is the following information is no longer disclosed: • the carrying amount of financial assets that would otherwise be past due or impaired whose terms have been renegotiated; and • the maximum exposure to credit risk by class of financial instrument if the maximum credit risk exposure is best represented by their carrying amount.

NOTES TO THE FINANCIAL STATEMENTS

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

The financial statements of Te Wānanga o Aotearoa have been prepared in accordance with the requirements of the Education Act 1989 and the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP).

67

Standard, amendments and interpretations issued that are not yet effective and have not been early adopted Standards, amendments and interpretations issued but are not effective that have not been early adopted, and which are relevant to Te Wānanga o Aotearoa include:

NOTES TO THE FINANCIAL STATEMENTS

NZ IAS 24 Related Party Disclosures (Revised 2009) replaces NZ IAS 24 Related Party Disclosures (Issued 2004) and will be applied for the first-time in Te Wānanga o Aotearoa 31 December 2011 financial statements. The revised standard:

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

• removes the previous disclosure concessions applied by Te Wānanga o Aotearoa for arms-length transactions between Te Wānanga o Aotearoa and entities controlled or significantly influenced by the Crown. The effect of the revised standard is that more information is required to be disclosed about transactions between Te Wānanga o Aotearoa and entities controlled or significantly influenced by the Crown • clarifies that related party transactions include commitments with related parties.

Te Wānanga o Aotearoa consolidates as subsidiaries in the group financial statements all entities where Te Wānanga o Aotearoa has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the entity. This power exists where Te Wānanga o Aotearoa controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by Te Wānanga o Aotearoa or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary.

NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement.

Investments in subsidiaries are carried at cost in the parent entity financial statements of Te Wānanga o Aotearoa.

NZ IAS 39 is being replaced through the following 3 main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology and Phase 3 Hedge Accounting. Phase 1 on the classification and measurement of financial assets has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in NZ IAS 39. The new standard is required to be adopted for the year ended 31 December 2013. Te Wānanga o Aotearoa has not yet assessed the impact of the new standard and will assess the appropriateness of early adoption once the assessment is completed.

Going concern Reliance is placed on the fact that Te Wānanga 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 translated at the rate of exchange ruling at the balance sheet date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

68

2. Significant accounting policies 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 as an expense in the statement of comprehensive income.

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.

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% - 33.33%

3 to 50 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

10% - 25%

2 to 10 years

Property, plant and equipment

Leasehold improvements

Property, plant and equipment asset classes consist of land and buildings, leasehold improvements, equipment, computers, furniture and fittings, motor vehicles, waka, library books and artwork.

Library books

10%

10 years

Library subscriptions

50%

2 years

The measurement bases used for determining the gross carrying amount for each class of assets is as follows: • 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.

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

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Revaluations Land and buildings are revalued at least every 2 years and with sufficient regularity to ensure that the carrying amount does not differ materially from fair value. Fair value is determined from market-based evidence by an independent valuer. All other asset classes are carried at depreciated historical cost.

The carrying values of revalued items are reviewed at each balance date to ensure that the carrying values are not materially different to fair value. Additions made are recorded at cost until revalued.

NOTES TO THE FINANCIAL STATEMENTS

Non-current assets held for sale

69

Accounting for revaluations Te Wﾄ］anga o Aotearoa accounts for revaluations of property, plant and equipment on a class of asset basis.

The net revaluation results are credited or debited to other comprehensive income and is accumulated to an asset revaluation reserve in equity for that class of asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to Te Wﾄ］anga o Aotearoa and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated.

In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

Intangible assets Computer software Computer software is separately acquired and capitalised at its cost as at the date of acquisition.

After initial recognition, separately acquired intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Course development costs Course development costs relate to development of educational courses and are capitalised once accreditation has been received and when it is probable that future economic benefit arising from use of the intangible asset will flow to the Group.

Following 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窶冱 intangible assets is as follows: Computer software

Course development costs

Finite - 5 years

Finite - 5 years

Method used

Straight line method

Straight line method from course commencement

Internally generated/acquired

Separately acquired

Internally generated/separately acquired

Useful lives

NOTES TO THE FINANCIAL STATEMENTS

Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying value of the asset. Gains and losses on disposals are recognised in the surplus or deficit.

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

Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Te Wﾄ］anga o Aotearoa and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.

The amortisation period and amortisation method for each class of intangible asset having a finite life is reviewed at the end of each financial year. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly.

The carrying value of each class of intangible asset is reviewed 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 surplus or deficit when the asset is de-recognised.

All other research and development costs are recognised as an expense in the surplus or deficit in the year in which it is incurred.

70

Impairment of property, plant and equipment and intangible assets

Financial assets

Intangible assets that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When there is an indicator of impairment, the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

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

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where Te Wānanga o Aotearoa would, if deprived of the asset, replace its remaining future economic benefits or service potential.

Gains or losses on available-for-sale financial assets are recognised as a separate component of equity until the financial asset is sold, collected or otherwise disposed of, or until the financial asset is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in other comprehensive income.

The value in use for cash-generating assets is the present value of expected future cash flows.

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when Te Wānanga o Aotearoa has the positive intention and ability to hold to maturity.

Financial assets intended to be held for an indefinite period are not included in this classification.

Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Financial assets in bank deposits are classified as loans and receivables.

For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.

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.

The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the asset revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit.

Amortised cost is calculated by taking into account any discount or premium on acquisition, over the period to maturity.

For assets not carried at a revalued amount the reversal of an impairment loss is recognised in the surplus or deficit.

Gains and losses for financial assets carried at amortised cost are recognised in income when the financial assets are de-recognised or impaired, as well as through the amortisation process.

Where there is no quoted market price for financial assets, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the financial asset. Where the fair value cannot be reliably determined the financial assets are measured at cost.

NOTES TO THE FINANCIAL STATEMENTS

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the revaluation reserve in equity for that same class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit.

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.

71

Inventories

Borrowing costs

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.

Te Wānanga o Aotearoa has elected to defer the adoption of the revised NZ IAS 23 Borrowing Costs (Revised 2007) in accordance with the transactional provisions of NZ IAS 23 that are applicable to public benefit entities.

Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred.

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 – purchase cost is on a weighted average cost • materials and consumables to be utilised for rendering of services – purchase cost is on a first-in, first-out basis.

NOTES TO THE FINANCIAL STATEMENTS

Provisions are recognised when Te Wānanga o Aotearoa 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.

The write-down from cost to current replacement cost or net realisable value is recognised in the surplus or deficit in the period when the write-down occurs.

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.

Debtors and other receivables

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.

Student fees and other receivables are recognised and carried at original receivable amount less any provision for impairment.

72

Provisions

A specific provision for impairment is made when collection of the full amount is no longer probable.

Bad debts are written off when identified.

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

Employee entitlements

Cash and cash equivalents Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

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

Short-term employee entitlements Employee entitlements that Te Wānanga o Aotearoa expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date and sick leave.

Te Wānanga o Aotearoa recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent Te Wānanga o Aotearoa anticipates it will be used by staff to cover those future absences.

Defined contribution schemes Obligations for contributions to Kiwisaver are accounted for as defined contribution superannuation scheme and are recognised as an expense in the surplus or deficit 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 surplus or deficit on a straight-line basis over the lease term.

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

Government grants Government grants are recognised as revenue upon entitlement.

Other government grants Funding is received from the Tertiary Education Commission (TEC) in relation to costs expected to be incurred by Te Wānanga o Aotearoa to complete specific projects and organisational change objectives as established and agreed between TEC and Te Wānanga o Aotearoa. Revenue from these projects is recognised based on the stage of the completion of the project. The stage of completion is measured based on the percentage of costs incurred to date compared to the total estimated costs to complete the full project. When funding is received in advance of the project being completed, deferred income is recognised and is released over the specific period using the stage of completion method.

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.

Rental income Rental income is recognised in the surplus or deficit on an accrual basis.

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

Dividends Dividends are received by Te Wānanga o Aotearoa from the subsidiary company, Open Wānanga Limited. These dividends are recognised as revenue in the surplus or deficit in the period in which they are received.

Equity Equity is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are: • general funds • property revaluation reserves • capital contribution.

Property revaluation reserves This reserve relates to the revaluation of property, plant and equipment to fair value.

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 • 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.

NOTES TO THE FINANCIAL STATEMENTS

Superannuation schemes

Commitments and contingencies are disclosed exclusive of GST.

73

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.

Loans and receivables

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.

Financial assets at fair value through other comprehensive income

After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs, and any discount or premium on settlement. Gains and losses are recognised in the surplus or deficit when the liabilities are de-recognised and as well as through the amortisation process.

NOTES TO THE FINANCIAL STATEMENTS

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

Loans and receivables including loan notes and loans to key management personnel are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the surplus or deficit when the loans and receivables are derecognised 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.

Financial Instruments

74

Financial assets at fair value through surplus or deficit

Investments and other financial assets Investments and financial assets are categorised as either financial assets at fair value through the surplus or deficit, loans and receivables, held-to-maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired.

Designation is 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 the surplus or deficit, 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 Te Wānanga o Aotearoa commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the market place. Financial assets are derecognised when the right to receive cash flows from the financial assets have expired or been transferred.

Financial assets at fair value through other comprehensive income are those non-derivative financial assets, principally equity securities, that are designated as financial assets at fair value through other comprehensive income and are not classified as any of the preceding categories. After initial recognition financial assets at fair value through other comprehensive income securities are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised 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 other comprehensive income.

De-recognition of financial instruments The de-recognition of a financial instrument takes place when Te Wānanga o Aotearoa no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent third party.

Financial risk management objectives and policies Te Wānanga o Aotearoa’s principal financial instruments comprise receivables, payables, bank loans and overdrafts, available for sale investments, cash and short-term deposits. Te Wānanga o Aotearoa manages its exposure to key financial risks, including interest rate and currency risk in accordance with Te Wānanga o Aotearoa’s financial risk management policy. The objective of the policy is to support the delivery of Te Wānanga o Aotearoa’s financial targets whilst protecting future financial security.

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 Te Wānanga o Aotearoa has no risk exposure to market interest rates as all interest bearing debt obligations were repaid during the year.

Foreign currency risk Te Wānanga o Aotearoa 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 Te Wānanga o Aotearoa forward exchange contracts are entered into to diminish the risk of Te Wānanga o Aotearoa to fluctuations in exchange rates.

Credit risk Credit risk arises from the financial assets of Te Wānanga o Aotearoa, which comprise cash and cash equivalents, trade and other receivables, and other financial assets.

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

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

Liquidity risk Te Wānanga o Aotearoa’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans. Te Wānanga o Aotearoa’s policy is that not more than 33% of borrowings should mature in any 12 month period. At 31 December 2010, Te Wānanga o Aotearoa had NIL borrowings (2009 - 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 Te Wānanga o Aotearoa has entered into commercial property leases on its property portfolio. Te Wānanga o Aotearoa 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 Te Wānanga o Aotearoa assesses impairment of all assets at each reporting date by evaluating conditions specific to Te Wānanga o Aotearoa and to the particular asset that may lead to impairment.

These include programme performance, technology, economic and political environments and future programme expectations. If an impairment trigger exists the recoverable amount of the asset is determined. Management do not consider that the triggers for impairment testing have been significant and as such these assets have not been tested for impairment in this financial period.

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

Distinction between revenue and capital contribution

NOTES TO THE FINANCIAL STATEMENTS

The main risks arising from Te Wānanga o Aotearoa’s financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. Te Wānanga o Aotearoa uses 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 and foreign exchange. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future rolling cash flow forecasts.

Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, Te Wānanga o Aotearoa accounts for the funding as a capital contribution directly in equity. Information about capital contributions recognised in equity is disclosed in note 20.

75

Suspensory loans with equity conversion features Te Wānanga o Aotearoa has received a suspensory loan during the year from the Crown whereby the loan converts to equity when the conversion conditions of the loan agreement are satisfied. This includes suspensory loans drawn down in respect of the Creative Thinking Programme and the Excellence Programme.

Because Te Wānanga o Aotearoa is committed to meeting the equity conversion conditions, it considers the loan is in substance an equity contribution from the Crown and therefore recognises the amount drawn down under the loan facilities directly in the statement of changes in equity.

Further information about the suspensory loan is disclosed in note 20.

Early childhood centre grant

NOTES TO THE FINANCIAL STATEMENTS

Te Wānanga o Aotearoa received a grant from the Crown for the construction of a new early childhood learning centre facility. There are a number of conditions attached to this grant which require all or part of the grant to be repaid in the event the grant conditions are not met. NZ IFRS does not provide authoritative support on the accounting for government grants for public benefit entities because public benefit entities are not permitted to apply the recognition and measurement requirements of NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. Te Wānanga o Aotearoa has considered the liability definition in the New Zealand Framework and in applying its judgement has recognised the grant as revenue because management is committed to satisfying the remaining grant conditions. It is therefore not considered probable that Te Wānanga o Aotearoa will be required to repay all or part of the grant to the Crown. Further information about the grant is disclosed in note 21.

76

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

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.

Early Learning Centre, Apakura Campus - Te Awamutu

3. Income (c) Other income Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Student Achievement Component Funding

97,570

94,662

97,570

94,662

Contract income

Tertiary Education Organisation Component Funding

33,296

32,319

33,296

32,319

Profit on sale of assets

4,835

4,054

4,835

4,054

163

138

163

138

3,001

3,732

3,001

3,732

138,865

134,905

138,865

134,905

Quality Reinvestment Programme Performance Based Research Fund Other Government funding Total Government funding fees

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

1,281

2,647

1,281

2,647

49

165

30

139

Rent received

178

176

178

176

Canteen sales

577

438

577

438

18

11

18

11

151

321

151

321

26

41

26

41

Open Wānanga Limited

-

-

1,687

1,576

Dividends from Open Wānanga Limited

-

-

6,209

4,340

Dividends from external sources

5

2

5

2

3,670

2,621

3,770

2,581

5,955

6,422

13,932

12,272

Other income:

Koha Lease income

(b) Tuition fees

Motel room income

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Fees from domestic students

5,478

4,852

5,478

4,852

Total tuition fees

5,478

4,852

5,478

4,852

Miscellaneous income Total other income

Contract income relates to licences and subcontracting arrangements that Te Wānanga o Aotearoa has with other institutions.

NOTES TO THE FINANCIAL STATEMENTS

(a) Government funding

77

4. Personnel costs

6. Other expenses Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

79,739

73,474

73,430

67,265

575

446

529

390

Termination expenses

76

74

76

64

Management fees

Increase/(decrease) in employee sick leave

19

19

(12)

56

Administration

80,409

74,013

74,023

67,775

Wages and salaries Employer contributions to defined contribution plans

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

243

226

198

190

2,668

2,590

-

-

13,363

13,504

11,564

11,833

(509)

15

(509)

15

426

316

419

306

5,109

5,467

5,109

5,467

Open Wānanga Limited payments

-

-

23,825

23,427

Aotearoa Scholarship Trust payment

-

-

2,150

-

Other expenses

2,108

3,635

1,981

3,493

Consultancy fees

6,612

5,702

5,377

4,554

Inventories consumed

1,888

1,260

1,888

1,260

10,800

11,485

8,813

9,006

Travel

2,204

2,436

2,204

2,436

Occupancy expenses

5,645

5,405

5,645

5,082

296

-

296

-

Rent

1,925

1,403

1,489

1,100

Minimum lease payments – operating lease

4,884

4,409

4,487

4,409

822

300

822

300

2

39

2

39

Bad debts written off

482

366

482

366

Total other expenses

58,968

58,558

76,242

73,283

Fees to principal auditor: - audit fees for financial statement audit

Impairment of receivables Koha

Employer contributions to defined contribution plans include contributions to Kiwisaver.

Satellite payments

NOTES TO THE FINANCIAL STATEMENTS

5. Finance costs

78

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Interest paid on Suspensory Loan

41

-

41

-

Total finance costs

41

-

41

-

Student resources

Artwork lease

Impairment of assets Loss on sale of property, plant and equipment

8. Debtors and other receivables Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

6,630

2,618

6,093

2,140

Student receivables

Term deposits with maturities less than 3 months

13,674

18,931

11,000

17,431

Total cash and cash equivalents

20,304

21,549

17,093

19,571

Cash at bank and in hand

The carrying value of cash at bank and term deposits with maturities less than three months approximate their fair value.

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Student fee receivables

485

492

485

492

Less provision for impairment

(79)

(260)

(79)

(260)

Net student fee receivables

406

232

406

232

421

595

421

595

1,494

964

1,447

956

Subsidiary (note 15)

-

-

84

16

Other related parties

-

-

-

-

1,915

1,559

1,952

1,567

(58)

(385)

(58)

(385)

2,263

1,406

2,300

1,414

Other receivables Trade receivables

The weighted average effective interest rate for term deposits is 5.42% (2009 - 5.57%).

Accrued interest

There were no cash or cash equivalent balances held at 31 December 2010 that were not available for use by the group.

Reconciliation of cash for the purpose of the cash flow statement For the purpose of the cash flow statement, cash and cash equivalents comprise the following as at 31 December:

Related party receivables:

Gross debtors and other receivables Less provision for impairment Total debtors and other receivables

Cash at bank and in hand Term deposits with maturities less than 3 months

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

6,630

2,608

6,093

2,140

13,674

18,941

11,000

17,431

20,304

21,549

17,093

19,571

NOTES TO THE FINANCIAL STATEMENTS

7. Cash and cash equivalents

79

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.

The impairment provision has been calculated based on expected losses for Te Wānanga o Aotearoa and their pool of receivables. Expected losses have been determined based on an analysis of losses for Te Wānanga o Aotearoa in previous periods, and a review of specific receivables, as detailed below: Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Miscellaneous debt impairment

58

385

58

385

Student debt

79

260

79

260

137

645

137

645

Student debtors are non-interest bearing and receipt is normally on enrolment and no later than graduation, therefore the carrying value of student debtors approximates their fair value.

Impairment As of 31 December 2010 and 2009, all overdue debtors have been assessed for impairment and appropriate provisions applied. Te Wānanga o Aotearoa holds no collateral as security or other credit enhancements over receivables that are either past due or impaired.

Total provision for impairment

The ageing profile of receivables at year end is detailed below: 2010 Gross $’000

Impairment $’000

Net $’000

2009 Gross $’000

Impairment $’000

Net $’000

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 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Past due 1-60 days

-

-

-

-

-

-

-

-

Group

NOTES TO THE FINANCIAL STATEMENTS

Not past due

1,598

-

1,598

1,105

-

1,105

Past due 1-60 days

192

-

192

21

-

21

Past due 61-120 days

148

-

148

116

-

116

Past due 61-120 days

Past due > 120 days

462

(137)

325

809

(645)

164

Past due > 120 days

58

385

58

385

2,400

(137)

2,263

2,051

(645)

1,406

Total individual impairment

58

385

58

385

Total

Movements in the provision for impairment of receivables are as follows:

Parent Not past due

1,635

-

1,635

1,113

-

1,113

Past due 1-60 days

192

-

192

21

-

21

Past due 61-120 days

148

-

148

116

-

116

Past due > 120 days

462

(137)

325

809

(645)

164

2,437

(137)

2,300

2,059

(645)

1,414

Total

All receivables greater than 30 days in age are considered to be past due.

80

At 1 January Additional provisions made during the year Receivables written off during the period At 31 December

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

645

639

645

631

72

164

72

164

(580)

(158)

(580)

(150)

137

645

137

645

9. Other financial assets Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

13,051

15,500

12,000

15,500

3,500

-

3,500

-

16,551

15,500

15,500

15,500

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

17,000

10,000

17,000

10,000

-

3,500

-

3,500

Total non-current portion

17,000

13,500

17,000

13,500

Total other financial assets

33,551

29,000

32,500

29,000

Government bonds with maturities > 12 months

• Quoted market price - Financial instruments with quoted prices for identical instruments in active markets • Valuation technique using observable inputs - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable • Valuation techniques with significant non-observable inputs - Financial instruments valued using models where one or more significant inputs are not observable.

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value on the statement of financial position:

Non-current portion Term deposits with maturities >12 months

For those instruments recognised at fair value on the statement of financial position, fair values are determined according to the following hierarchy:

Total $’000

Quoted market price $’000

Observable inputs $’000

Significant non-observable inputs $’000

3,500

3,500

-

-

3,500

3,500

-

-

3,500

3,500

-

-

3,500

3,500

-

-

Group 2010

Fair value Term deposits The fair value of non-current term deposits is $17,983,943 (2009 - $10,283,683). Fair value has been determined by discounting future interest cash flows using a discount rate based on the market interest rate on term deposits at balance date with principal terms to maturity that match as closely as possible the cash flows of term deposits held. The discount rates range between 4% and 4.76% (2009 - 4.30% - 5.51%).

Government bonds The government bond is not a non-current term deposit in 2010. In 2009 the fair value of government bonds was $3,610,788. Fair value was determined by discounting cash flows from the instrument using a discount rate derived from relevant market inputs. The discount rate in 2009 was 4.30%.

Government bonds

Group 2009

Financial assets Government bonds

Parent 2010

Financial assets Government bonds

Parent 2009

Financial assets Government bonds

NOTES TO THE FINANCIAL STATEMENTS

Financial assets

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

81

10. Inventory

Inventories held for distribution

11. Non-current assets held for sale Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

1,894

1,570

1,023

833

The building owned by Te Wānanga o Aotearoa on Taupiri Street, Te Kuiti has been presented as held for sale following approval by Council on 9th August 2010 to sell the premises. The Council has approved the sale of the premises, as it will provide no future use to Te Wānanga o Aotearoa. The completion date of the sale is expected to be by February 2011.

The carrying amount of inventories for distribution are measured at cost as at 31 December 2010 and therefore the carrying amount at current replacement cost is NIL (2009 - NIL).

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

150

-

150

-

50

-

50

-

200

-

200

-

Non-current assets held for sale

Inventories are made up of consumables and inventories held for distribution to campuses.

Consumables are materials or supplies which will be consumed in conjunction with the delivery of services and predominantly comprise books and resources used in the teaching of courses to students.

During the year a write off of inventories occurred due to a change in resources and technologies required in a number of programmes. This write off amounted to $200,611 in 2010 (2009 - $152,000).

There have been no reversals of write-offs (2009 - NIL).

NOTES TO THE FINANCIAL STATEMENTS

No inventories are pledged as security for liabilities.

82

- buildings - land Total non-current assets held for sale

13. Provisions

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Trade payables

2,883

1,806

2,542

1,567

Accrued expenses

2,331

2,345

2,262

2,138

Quality Reinvestment Programme

367

3,871

367

3,871

Other Government funding

841

-

841

-

1,573

867

1,509

805

919

771

716

720

8,914

9,660

8,237

9,101

-

-

10,553

10,689

8,914

9,660

18,790

19,790

Pay As You Earn Tax Goods and Services Tax

Related party payable: Subsidiary - Open Wānanga Limited

(a) Employee entitlements Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Accrued salaries

2,024

2,195

1,778

2,002

Annual leave

4,040

4,487

3,711

4,172

193

194

169

181

6,257

6,876

5,658

6,355

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.

(b) Provision for onerous leases

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 payables refer to note 22.

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Balance at 1 January

-

291

-

291

Additional provisions made

-

-

-

-

Utilised during the year

-

(291)

-

(291)

Balance at 31 December

-

-

-

-

The provision for onerous leases relates to property leased by the Group which is unoccupied.

NOTES TO THE FINANCIAL STATEMENTS

12. Creditors and other payables

83

Total $’000

WIP $’000

VLC $’000

Library $’000

Artworks $’000

Waka $’000

Motor Vehicles $’000

Furniture & Fittings $’000

Computers $’000

37,615

58,409

9,530

5,496

3,092

2,499

6,672

1,172

1,166

4,909

1,936

480

95,361

Additions

400

9,075

9,475

50

388

232

-

764

-

324

474

138

7,960

19,805

Disposals

-

-

-

-

-

-

-

(69)

-

-

-

-

(7,452)

(7,521)

(50)

(165)

(215)

-

-

-

-

-

-

-

-

-

-

(215)

Impairment

-

(23)

(23)

(4,296)

(1,505)

(520)

(1,396)

90

-

(28)

-

-

-

(7,678)

Revaluation

924

(2,712)

(1,788)

-

-

-

-

-

-

-

-

-

-

(1,788)

22,068

43,790

65,858

5,284

4,379

2,804

1,103

7,457

1,172

1,462

5,383

2,074

988

97,964

Opening accumulated depreciation at 1 January 2010

-

(2,318)

(2,318)

(6,869)

(4,094)

(2,138)

(2,365)

(3,411)

(563)

-

(2,353)

(907)

-

(25,018)

Depreciation

-

(2,358)

(2,358)

(804)

(417)

(482)

(48)

(949)

(60)

-

(620)

(730)

-

(6,468)

Disposals

-

-

-

-

-

-

-

38

-

-

-

-

-

38

Reclassification

-

15

15

-

-

-

-

-

-

-

-

-

-

15

Impairment

-

15

15

3,926

1,452

497

1,387

(90)

-

-

-

-

-

7,187

Revaluation

-

4,353

4,353

-

-

-

-

-

-

-

-

-

-

4,353

Closing accumulated depreciation at 31 December 2010

-

(293)

(293)

(3,747)

(3,059)

(2,123)

(1,026)

(4,412)

(623)

-

(2,973)

(1,637)

-

(19,893)

Net book value at 1 January 2010

20,794

35,297

56,091

2,661

1,402

954

134

3,261

609

1,166

2,556

1,029

480

70,343

Net book value at 31 December 2010

22,068

43,497

65,565

1,537

1,320

681

77

3,045

549

1,462

2,410

437

988

78,071

Closing cost at 31 December 2010

NOTES TO THE FINANCIAL STATEMENTS

Equipment $’000

20,794

Reclassification

84

Leasehold Improvements $’000

Buildings $’000

Land $’000

GROUP 2010

Opening cost at 1 January 2010

Total Land & Buildings $’000

14. Property, plant and equipment

Total $’000

WIP $’000

VLC $’000

Library $’000

Artworks $’000

Waka $’000

Motor Vehicles $’000

Furniture & Fittings $’000

Computers $’000

Equipment $’000

Leasehold Improvements $’000

17,919

31,758

49,677

9,526

4,756

2,889

2,479

5,126

1,172

1,091

4,215

779

2,206

83,916

Additions

2,875

5,857

8,732

29

740

203

28

1,758

-

75

708

1,157

3,552

16,982

Disposals

-

-

-

(25)

-

-

(8)

(212)

-

-

(14)

-

(5,278)

(5,537)

Revaluations

-

-

-

-

-

-

-

-

-

-

-

-

-

-

20,794

37,615

58,409

9,530

5,496

3,092

2,499

6,672

1,172

1,166

4,909

1,936

480

95,361

Opening accumulated depreciation at 1 January 2009

-

(244)

(244)

(5,704)

(3,405)

(1,593)

(2,074)

(2,578)

(495)

-

(1,720)

(316)

-

(18,129)

Depreciation

-

(2,074)

(2,074)

(1,177)

(689)

(545)

(291)

(993)

(68)

-

(633)

(591)

-

(7,061)

Disposals

-

-

-

12

-

-

-

160

-

-

-

-

-

172

Revaluations

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Closing accumulated depreciation at 31 December 2009

-

(2,318)

(2,318)

(6,869)

(4,094)

(2,138)

(2,365)

(3,411)

(563)

-

(2,353)

(907)

-

(25,018)

Net book value at 1 January 2009

17,919

31,514

49,433

3,822

1,351

1,296

405

2,548

677

1,091

2,495

463

2,206

65,787

Net book value at 31 December 2009

20,794

35,297

56,091

2,661

1,402

954

134

3,261

609

1,166

2,556

1,029

480

70,343

Closing cost at 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

Opening cost at 1 January 2009

Total Land & Buildings $’000

Buildings $’000

Land $’000

GROUP 2009

85

Total $’000

WIP $’000

VLC $’000

Library $’000

Artworks $’000

Waka $’000

Motor Vehicles $’000

Furniture & Fittings $’000

Computers $’000

36,484

57,028

9,493

5,429

2,519

2,470

5,982

1,172

1,034

4,911

1,936

480

92,454

Additions

400

9,067

9,467

50

388

225

-

471

-

298

472

138

7,891

19,400

Disposals

-

-

-

-

-

-

-

(69)

-

-

-

-

(7,452)

(7,521)

(50)

(165)

(215)

-

-

-

-

-

-

-

-

-

-

(215)

-

(23)

(23)

(4,296)

(1,505)

(520)

(1,395)

90

-

(28)

-

-

-

(7,677)

924

(2,723)

(1,799)

-

-

-

-

-

-

-

-

-

-

(1,799)

21,818

42,640

64,458

5,247

4,312

2,224

1,075

6,474

1,172

1,304

5,383

2,074

919

94,642

Opening accumulated depreciation at 1 January 2010

-

(2,240)

(2,240)

(6,852)

(4,046)

(1,569)

(2,338)

(3,172)

(563)

-

(2,353)

(907)

-

(24,040)

Depreciation

-

(2,278)

(2,278)

(800)

(412)

(479)

(47)

(784)

(60)

-

(620)

(730)

-

(6,210)

Disposals

-

-

-

-

-

-

-

38

-

-

-

-

-

38

Reclassification

-

15

15

-

-

-

-

-

-

-

-

-

-

15

Impairment

-

15

15

3,926

1,452

497

1,387

(90)

-

-

-

-

-

7,187

Revaluations

-

4,193

4,193

-

-

-

-

-

-

-

-

-

-

4,193

Closing accumulated depreciation at 31 December 2010

-

(295)

(295)

(3,726)

(3,006)

(1,551)

(998)

(4,008)

(623)

-

(2,973)

(1,637)

-

(18,817)

Net book value at 1 January 2010

20,544

34,244

54,788

2,641

1,383

950

132

2,810

609

1,034

2,558

1,029

480

68,414

Net book value at 31 December 2010

21,818

42,345

64,163

1,521

1,306

673

77

2,466

549

1,304

2,410

437

919

75,825

Impairment Revaluations Closing cost at 31 December 2010

NOTES TO THE FINANCIAL STATEMENTS

Equipment $’000

20,544

Reclassification

86

Leasehold Improvements $’000

Buildings $’000

Land $’000

PARENT 2010

Opening cost at 1 January 2010

Total Land & Buildings $’000

14. Property, plant and equipment (continued)

Total $’000

WIP $’000

VLC $’000

Library $’000

Artworks $’000

Waka $’000

Motor Vehicles $’000

Furniture & Fittings $’000

Computers $’000

Equipment $’000

Leasehold Improvements $’000

17,669

30,648

48,317

9,489

4,700

2,332

2,450

4,608

1,172

982

4,215

779

2,206

81,250

Additions

2,875

5,836

8,711

29

729

187

28

1,519

-

52

710

1,157

3,552

16,674

Disposals

-

-

-

(25)

-

-

(8)

(145)

-

-

(14)

-

(5,278)

(5,470)

Revaluations

-

-

-

-

-

-

-

-

-

-

-

-

-

-

20,544

36,484

57,028

9,493

5,429

2,519

2,470

5,982

1,172

1,034

4,911

1,936

480

92,454

Opening accumulated depreciation at 1 January 2009

-

(246)

(246)

(5,690)

(3,367)

(1,085)

(2,051)

(2,410)

(495)

-

(1,720)

(316)

-

(17,380)

Depreciation

-

(1,994)

(1,994)

(1,174)

(679)

(484)

(287)

(870)

(68)

-

(633)

(591)

-

(6,780)

Disposals

-

-

-

12

-

-

-

108

-

-

-

-

-

120

Revaluations

-

-

-

-

-

-

-

-

-

-

-

-

Closing accumulated depreciation at 31 December 2009

-

(2,240)

(2,240)

(6,852)

(4,046)

(1,569)

(2,338)

(3,172)

(563)

-

(2,353)

(907)

-

(24,040)

Net book value at 1 January 2009

17,669

30,402

48,071

3,799

1,333

1,247

399

2,198

677

982

2,495

463

2,206

63,870

Net book value at 31 December 2009

20,544

34,244

54,788

2,641

1,383

950

132

2,810

609

1,034

2,558

1,029

480

68,414

Closing cost at 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

Opening cost at 1 January 2009

Total Land & Buildings $’000

Buildings $’000

Land $’000

PARENT 2009

87

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

W Hickey of Jones Lang LaSalle

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

64,114

45,449

62,714

45,449

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Balance as at 1 January

-

4,300

-

4,300

Fair gain/(loss) on valuation

-

(300)

-

(300)

Land

Disposal (reclassification to PPE)

-

(4,000)

-

(4,000)

Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values.

Balance as at 31 December

-

-

-

-

Buildings Specialised buildings (e.g. campuses) are valued at fair value using depreciated replacement cost because no reliable market data is available for buildings designed for education delivery purposes.

Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include:

NOTES TO THE FINANCIAL STATEMENTS

Group 2010 $’000

The classes of property, plant and equipment that were revalued in 2010 were land and buildings.

The most recent valuation of land was performed by a registered independent valuer, Jones Lang LaSalle, and the valuation is effective as at 31 December 2010.

• The replacement asset is based on the reproduction cost of the specific assets with adjustments where appropriate for obsolescence due to over-design or surplus capacity.

• The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information.

• The remaining life of assets is estimated.

• Straight-line depreciation has been applied in determining the depreciated replacement cost value of the asset.

Non-specialised buildings (for example, residential buildings) are revalued at fair value using marketbased evidence. Market rates and capitalisation rates were applied to reflect market value.

The most recent valuation of buildings was performed by an independent valuer, Jones Lang Lasalle, and the valuation is effective as at 31 December 2010.

Total fair value of property, plant and equipment valued by valuer The total fair value of property, plant and equipment valued by Jones Lang Lasalle at 31 December 2010 totalled $64,114,000.

Work in progress 88

15. Investment properties

The total value of property, plant and equipment in the course of construction is $919,710 (2009 - $480,333).

Te Wānanga o Aotearoa investment property was valued annually at fair value effective 31 December.

Te Wānanga o Aotearoa took over full control of the property on 1 July 2009. A valuation took place on 1 July 2009 and the property was reclassified into Property, Plant and Equipment as per NZ IAS 16. This 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 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Rental income

-

-

-

-

Expenses from investment property not generating income

-

99

-

99

Total

-

(99)

-

(99)

16. Intangible assets

Externally Acquired Software $’000

Programme Costs $’000

Trademark $’000

WIP $’000

Total $’000

1,208

7,647

-

1,602

10,457

Additions

263

1,017

-

963

2,243

Impairment

(30)

-

-

(356)

(386)

-

-

-

(323)

(323)

1,441

8,664

-

1,886

11,991

Closing cost at 31 December 2009

Opening accumulated amortisation at 1 January 2010

(601)

(4,430)

-

-

(5,031)

Opening accumulated amortisation at 1 January 2009

Amortisation

(162)

(1,222)

-

-

(1,384)

30

-

-

-

30

-

-

-

-

-

(733)

(5,652)

-

-

(6,385)

Net book value at 1 January 2010

607

3,217

-

1,602

5,426

Net book value at 31 December 2010

708

3,012

-

1,886

5,606

GROUP 2010

Opening cost at 1 January 2010

Disposals Closing cost at 31 December 2010

Impairment Disposals Closing accumulated amortisation at 31 December 2010

Externally Acquired Software $’000

Programme Costs $’000

Trademark $’000

WIP $’000

Total $’000

Opening cost at 1 January 2009

614

5,605

5

343

6,567

Additions

594

2,042

-

1,259

3,895

Impairment

-

-

(5)

-

(5)

Disposals

-

-

-

-

-

1,208

7,647

-

1,602

10,457

(483)

(3,131)

-

-

(3,614)

Amortisation

(92)

(1,299)

-

-

(1,391)

Impairment

(26)

-

-

-

(26)

-

-

-

-

-

(601)

(4,430)

-

-

(5,031)

Net book value at 1 January 2009

131

2,474

5

343

2,953

Net book value at 31 December 2009

607

3,217

-

1,602

5,426

GROUP 2009

Disposals Closing accumulated amortisation at 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

Programme development costs were incurred in developing Certificates in First Line Management, Cable Logging, Pūtaketanga, Business & E-Commerce and Iwi Marine and Freshwater Studies and Diplomas in Māori Governance and Leadership, Adult Education and Training, Papa Whai Rawa, TARM Distance, SALE Level 2, Greenlight, Papa Ako and Mauri Ora.

89

16. Intangible assets (continued) Externally Acquired Software $’000

Programme Costs $’000

Trademark $’000

WIP $’000

Total $’000

Opening cost at 1 January 2010

435

4,688

-

1,223

6,346

Additions

150

694

-

451

1,295

Impairment

(30)

-

-

(356)

(386)

-

-

-

-

-

555

5,382

-

1,318

7,255

(128)

(2,453

-

-

(2,581)

Amortisation

(88)

(832)

-

-

(920)

Impairment

30

-

-

-

30

-

-

-

-

-

PARENT 2010

Disposals Closing cost at 31 December 2010

Opening accumulated amortisation at 1 January 2010

Disposals

NOTES TO THE FINANCIAL STATEMENTS

Closing accumulated amortisation at 31 December 2010

90

Externally Acquired Software $’000

Programme Costs $’000

Trademark $’000

WIP $’000

Total $’000

Opening cost at 1 January 2009

136

3,546

5

343

4,030

Additions

299

1,142

-

880

2,321

Impairment

-

-

(5)

-

(5)

Disposals

-

-

-

-

-

Closing cost at 31 December 2009

435

4,688

-

1,223

6,346

Opening accumulated amortisation at 1 January 2009

(77)

(1,655)

-

-

(1,732)

Amortisation

(25)

(798)

-

-

(823)

Impairment

(26)

-

-

-

(26)

-

-

-

-

-

(128)

(2,453)

-

-

(2,581)

59

1,891

5

343

2,298

307

2,235

-

1,223

3,765

PARENT 2009

Disposals Closing accumulated amortisation at 31 December 2009

(186)

(3,285)

-

-

(3,471)

Net book value at 1 January 2010

307

2,235

-

1,223

3,765

Net book value at 1 January 2009

Net book value at 31 December 2010

369

2,097

-

1,318

3,784

Net book value at 31 December 2009

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

Te Wānanga o Aotearoa wrote off assets of $27,173 in 2010 - Diploma in IT (2009 - $5,000 -Trademark licences and $25,687 - WDC warehouse management system).

17. Investment in Open Wﾄ］anga Limited Open Wﾄ］anga Limited is a fully owned subsidiary of Te Wﾄ］anga o Aotearoa and is in the business of education. The balance date of the company is 31 December. The results of Open Wﾄ］anga Limited are incorporated into the Group financial statements.

Tracey Brown, Raranga kaiako, Raroera Campus - Hamilton

I

91

18. Early learning centres During the year Te Wānanga o Aotearoa received grants from the Ministry of Education for early learning purposes.

APAKURA TE KĀKANO Bulk funding

2010 $’000

2009 $’000

547

507

2009 $’000

623

466

11

9

Low socio economic

-

-

Low socio economic

Special needs

-

-

Special needs

5

5

Language and kaupapa

2

2

Language and kaupapa

2

2

Training

5

3

Training

6

12

Total MOE funding received

554

512

Total MOE funding received

647

494

Funds applied to salaries:

554

512

Funds applied to salaries:

647

494

2010 $’000

2009 $’000

2010 $’000

2009 $’000

653

294

607

568

MANUKAU NOTES TO THE FINANCIAL STATEMENTS

Bulk funding

2010 $’000

Incentive funding

Incentive funding

92

TE RAU ORIWA

Bulk funding

RAROERA TE PUĀWAI Bulk funding Incentive funding

Incentive funding 15

-

Low socio economic

6

6

Special needs

7

-

Special needs

5

5

Language and kaupapa

-

-

Language and kaupapa

2

2

16

5

Training

8

7

Total MOE funding received

691

299

Total MOE funding received

628

588

Funds applied to salaries:

691

299

Funds applied to salaries:

628

588

Low socio economic

Training

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

(a) Market risk Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in the market prices. Te Wānanga o Aotearoa is exposed to price risk because it invests in government bonds. This price risk is managed in accordance with the limits set out in Te Wānanga o Aotearoa investment policy.

In the normal course of business, Te Wānanga o Aotearoa is exposed to credit risk from cash and term deposits with banks, debtors and other receivables and government bonds. For each of these, the maximum credit exposure is best represented by the carrying amount in the statement of financial position.

With the exception of Student Fees the Group trades only with recognised and 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.

Currency risk

Te Wānanga o Aotearoa holds no collateral or other credit enhancements for financial instruments that give rise to credit risk.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.

Credit quality of financial assets

Te Wānanga o Aotearoa purchases library items from overseas which exposes it to currency risk.

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:

Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments issued at fixed rates of interest create exposure to fair value interest rate risk. Te Wānanga o Aotearoa does not actively manage its exposure to fair value interest rate risk.

Cash flow interest rate risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates create exposure to cash flow interest rate risk.

(b) Credit risk Credit risk is the risk that a third party will default on its obligation to Te Wānanga o Aotearoa, causing Te Wānanga o Aotearoa to incur a loss. Due to the timing of its cash inflows and outflows, Te Wānanga o Aotearoa invests surplus cash into term deposits and government bonds which gives rise to credit risk.

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

AA

50,355

50,549

46,093

48,571

Total cash at bank and term deposits

50,355

50,549

46,093

48,571

COUNTERPARTIES WITH CREDIT RATINGS Cash at bank and term deposits

Term deposits, local authority and government stock AAA

3,500

3,500

3,500

3,500

Total local authority and government stock

3,500

3,500

3,500

3,500

53,855

54,049

49,593

52,071

Total financial instrument assets

NOTES TO THE FINANCIAL STATEMENTS

Fair value interest rate risk

93

(c) Liquidity risk

More than 5 years $’000

2-5 years $’000

1-2 years $’000

Debtors and other receivables

NOTES TO THE FINANCIAL STATEMENTS

- government stock

Creditors and other payables

8,914

8,914

8,914

-

-

-

Total

8,914

8,914

8,914

-

-

-

-

-

-

2,263

2,263

2,071

192

-

-

30,051

30,051

13,051

4,000

13,000

-

3,500

3,500

-

3,500

-

-

56,118

56,118

35,426

7,692

13,000

-

17,093

17,093

17,093

-

-

-

2,300

2,300

2,108

192

-

-

29,000

29,000

12,000

4,000

13,000

-

3,500

3,500

3,500

-

-

-

51,893

51,893

34,701

4,192

13,000

-

2-5 years $’000

More than 5 years $’000

20,304

Total

Parent 2010 Parent 2010

Cash and cash equivalents

Creditors and other payables

18,790

18,790

18,790

-

-

-

Debtors and other receivables

Total

18,790

18,790

18,790

-

-

-

Other financial assets - term deposits

Group 2009

- government stock

Creditors and other payables

9,660

9,660

9,660

-

-

-

Total

9,660

9,660

9,660

-

-

-

Creditors and other payables

19,790

19,790

19,790

-

-

-

Total

19,790

19,790

19,790

-

-

-

Parent 2009

94

20,304

Other financial assets - term deposits

Group 2010

20,304

Group 2010 Cash and cash equivalents

Less than 1 year $’000

Contractual cash flows $’000

Carrying amount $’000

The table below analyses Te Wānanga 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.

1-2 years $’000

Contractual maturity analysis of financial liabilities

Less than 1 year $’000

The table below analyses Te Wānanga o Aotearoa financial assets into relevant maturity groupings, based on the remaining period at the balance date to the contractual maturity date.

Contractual cash flows $’000

Contractual maturity analysis of financial assets

Liquidity risk is the risk that Te Wānanga o Aotearoa will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available.

Carrying amount $’000

Management of liquidity risk

Total

(c) Liquidity risk (continued)

(d) Sensitivity analysis

Debtors and other receivables

106

381

-

- government stock Total

Interest rate risk

2-5 years $’000

Financial assets

Other financial assets - term deposits

+100bps Other Equity

919

Surplus

1,406

-100bps Other Equity

1,406

Surplus

-

25,500

25,500

15,500

5,000

5,000

-

3,500

3,500

-

3,500

-

-

51,955

51,955

37,968

8,606

5,381

-

Cash and cash equivalents¹

20,304

(203)

20,304

203

21,549

(215)

21,549

215

government stock, term²

33,551

(336)

33,551

336

29,000

(290)

29,000

290

Total sensitivity to interest rate risk

53,855

(539)

53,855

539

50,549

(505)

50,549

505

Other financial assets:

Parent 2009 Cash and cash equivalents Debtors and other receivables

19,571

19,571

19,571

-

-

-

1,414

1,414

927

106

381

-

25,500

25,500

15,500

5,000

5,000

-

3,500

3,500

-

3,500

-

-

49,985

49,985

35,998

8,606

5,381

-

Other financial assets - term deposits - government stock Total

Explanation of sensitivity analysis – Group 1. Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $20,304,125 (2009 - $21,548,904) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $203,000 (2009 - $215,000).

2. Government stock A total of $33,551,000 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 $336,000 (2009 - $290,000).

NOTES TO THE FINANCIAL STATEMENTS

Cash and cash equivalents

+100bps Other Equity

-

Group 2009

2009 $’000

Surplus

-

GROUP

-100bps Other Equity

21,549

2010 $’000

Surplus

Less than 1 year $’000

21,549

More than 5 years $’000

Contractual cash flows $’000

21,549

1-2 years $’000

Carrying amount $’000

The tables below illustrate the potential profit and loss and equity (excluding retained earnings) impact for reasonably possible market movements, with all variables held constant, based on the financial instrument exposures of Te Wānanga o Aotearoa at the balance sheet date.

95

(d) Sensitivity analysis (continued)

(e) Capital Management Capital of Te Wānanga o Aotearoa is its equity, which comprises general funds, and property valuation. Equity is represented by net assets. +100bps Other Equity

Surplus

-100bps Other Equity

Surplus

+100bps Other Equity

2009 $’000

Surplus

-100bps Other Equity

PARENT

Surplus

2010 $’000

Te Wānanga o Aotearoa manages its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. The Group’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities, and general financial dealings.

Interest rate risk Financial assets Cash and cash equivalents¹

17,093

(171)

17,093

171

19,571

(196)

19,571

196

Government stock, term²

32,500

(325)

32,500

325

29,000

(290)

29,000

290

Total sensitivity to interest rate risk

49,593

(496)

49,593

496

48,571

(486)

48,571

486

NOTES TO THE FINANCIAL STATEMENTS

Other financial assets:

96

Te Wānanga o Aotearoa is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases or land or buildings or parts of buildings, and borrowings.

Explanation of sensitivity analysis - Parent 1. Cash and cash equivalents Cash and cash equivalents include deposits at call totalling $17,093,202 (2009 - $19,570,723) which are at fixed rates. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $171,000 (2009 - $196,000).

2. Government stock & term deposits 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 $325,000 (2009 - $290,000).

The objective of managing the Group’s equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.

20. Equity Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

102,324

88,102

86,271

73,918

(22)

-

(22)

-

6,217

8,125

3,873

6,256

488

1,097

488

1,097

5,000

5,000

5,000

5,000

114,007

102,324

95,610

86,271

9,898

9,898

10,021

10,021

Transfer to retained earnings on disposal of property

22

-

22

-

Land and buildings net revaluation gains

2,565

-

2,394

-

12,485

9,898

12,437

10,021

126,492

112,222

108,047

96,292

Suspensory loan A $20,000,000 suspensory loan has been entered into. This will complete the equity contributions agreed to in 1999. The remaining $5,000,000 of the loan was received in July 2010 (2009 - $5,000,000).

Retained earnings Balance at 1 January Property revaluation reserve transfer on disposal Surplus/(deficit) for the year Capital contributions from the Crown Suspensory loans from the Crown Balance at 31 December

Property revaluation reserves

Land and buildings

Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

12,485

9,898

12,437

10,021

Balance at 1 January

Balance at 31 December

Total equity

Capital contributions The Crown have made equity contributions to Te Wānanga o Aotearoa in line with the recommendations outlined in the Wānanga Capital Establishment Report - Waitangi Tribunal Report 1999 (WAI 718). To date the Crown has made Equity contributions of $60,000,000 (2009 - $55,000,000).

NOTES TO THE FINANCIAL STATEMENTS

Property revaluation reserves

The Crown provides Quality Reinvestment Fund (QRF) funding for projects run by Te Wānanga o Aotearoa. A number of these projects have been funded as an equity contribution. The total of this equity contribution in 2010 was $487,800 (2009 - $1,097,100).

97

21. Statement of commitments and contingencies (a) Commitments

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.

Capital commitments Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Capital commitments Property, plant and equipment

144

-

144

-

144

-

144

-

Capital commitments represent capital expenditure contracted for at balance date but not yet incurred.

Operating lease commitments - Group as lessee

NOTES TO THE FINANCIAL STATEMENTS

The Group has entered into commercial leases on certain buildings where it is not in the best interest of the Group to purchase these assets. These leases have an average life of between 1 and 6 years with renewal terms included in the contracts. Renewals are at the option of the Group. There are no restrictions placed upon the lessee by entering into these leases.

Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows: Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Within one year

3,848

4,129

3,441

3,950

After one year but no more than five years

4,905

3,963

4,630

3,888

76

321

76

321

8,829

8,413

8,147

8,159

More than five years

These leases have an average life of between 1 and 2 years with renewal terms included in the contracts. Renewals are at the option of the lessee. There are no restrictions placed upon the lessee by entering into these leases.

Future minimum rentals receivable under non-cancellable operating leases as at 31 December are as follows: Group 2010 $’000

Group 2009 $’000

Parent 2010 $’000

Parent 2009 $’000

Within one year

240

89

240

89

After one year but no more than five years

182

14

182

14

422

103

422

103

No contingent rents have been recognised in surplus or deficit during the period.

(b) Contingencies Personal grievances As at 31 December 2010, there were 3 personal grievance claims against Te Wānanga o Aotearoa (2009 - NIL). If the claims were successful, the estimated amount of the settlement costs would be approximately $25,000 (2009 - NIL). Te Wānanga o Aotearoa is defending these claims.

Contingent liabilities Lawsuit Te Wānanga o Aotearoa has no contingent liabilities as at balance sheet date (2009 - NIL).

Government funding Te Wānanga o Aotearoa has a contingent liability of $692,533 (2009 - $692,533) 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.

98

22. Related party disclosure The consolidated financial statements include the financial statements of Te Wānanga o Aotearoa and its subsidiaries Open Wānanga Limited, Papatoa Forestry Limited and Aotearoa Scholarship Trust.

Equity interest

Financial guarantee Te Wānanga o Aotearoa entered into an arrangement in 2008 with the Bank of New Zealand to provide a guarantee for Open Wānanga Limited.

Investment

Country of Incorporation

2010 %

2009 %

2010 $’000

2009 $’000

Contingent assets

Open Wānanga Limited

New Zealand

100

100

1

1

Te Wānanga o Aotearoa has no contingent assets as at balance sheet date (2009 - NIL).

Papatoa Forestry Limited

New Zealand

100

100

-

-

Aotearoa Scholarship Trust

New Zealand

100

-

-

-

22(a) HCW Holdings Limited HCW Holdings Limited has undertaken work for Open Wānanga Limited in prior years, trading as All Seasons Air. In 2009 All Seasons Air was a related party, up until 31st March 2009 when HCW Holdings Limited ceased trading. Kingi Wetere remains a Director of HCW Holdings Limited. Any dealings with HCW Holdings Limited by Open Wānanga Limited were approved by Board Members.

There were no transactions with HCW Holdings Limited in 2010, and as such the company was not a related party for 2010 (2009 $10,946).

At balance date HCW Limited had no outstanding balance (2009 - NIL).

22(b) Open Wānanga Limited Open Wānanga Limited is a wholly owned subsidiary of Te Wānanga o Aotearoa. The Board of Open Wānanga Limited is appointed by the Council of Te Wānanga o Aotearoa. Open Wānanga Limited provides educational services for Te Wānanga o Aotearoa and Te Wānanga o Aotearoa is part of the Open Wānanga Limited provider network. During 2010 Open Wānanga Limited invoiced Te Wānanga o Aotearoa $23,949,870 for these services (2009 - $23,513,420) and Te Wānanga o Aotearoa invoiced Open Wānanga Limited $1,790,547 (2009 - $1,710,038).

NOTES TO THE FINANCIAL STATEMENTS

Suspensory loan Te Wānanga o Aotearoa has a $20,000,000 contingent liability (2009 - $15,000,000) due to the suspensory loan.

At balance sheet date Te Wānanga o Aotearoa had an outstanding balance due to Open Wānanga Limited of $10,552,623 (2009 - $10,688,653) and a balance due from Open Wānanga Limited of $83,810 (2009 - $15,928).

99

22(c) Aotearoa Scholarship Trust

22(g) Manukau Institute of Technology

Aotearoa Scholarship Trust is a wholly owned subsidiary of Te Wānanga o Aotearoa and was established in April 2010. The Board of Trustees is appointed by the Council of Te Wānanga o Aotearoa. Aotearoa Scholarship Trust provides scholarships for students of Te Wānanga o Aotearoa.

Te Wānanga o Aotearoa paid $2,181,956 to Aotearoa Scholarship Trust for the initial settlement and scholarship funds (2009 - NIL).

Manuka Henare is a Council member of Te Wānanga o Aotearoa and is a Council member of Manukau Institute of Technology. Te Wānanga o Aotearoa rents rooms from Manukau Institute of Technology to run Te Ara Reo Māori programmes. Te Wānanga o Aotearoa paid $73,034 for these services in 2010 (2009 - $1,644).

There were no outstanding balances as at 31 December 2010 (2009 - NIL).

As at balance sheet date Te Wānanga o Aotearoa had an outstanding balance of $100 due to Manukau Institute of Technology (2009 - NIL).

22(d) Tertiary Education Commission

22(h) TVNZ

Deirdre Dale is a Council member of Te Wānanga o Aotearoa and also a Commissioner of the Tertiary Education Commission (TEC). TEC provides funding to Te Wānanga o Aotearoa to enable them to provide educational services. Te Wānanga o Aotearoa paid TEC for consultancy on contribution of Te Wānanga o Aotearoa to Aotearoa project and for the reimbursement of the professional services of the Crown Manager in 2009.

June McCabe was a Director of Television New Zealand until October 2010 and is also a board member of Open Wānanga Limited. Open Wānanga Limited used TVNZ for marketing purposes on their morning programme during 2010.

Te Wānanga o Aotearoa did not pay TEC for any of these services in 2010 (2009 - $208,889) and TEC paid Te Wānanga o Aotearoa $136,576,965 for these services (2009 - $134,461,318).

As at balance sheet date Open Wānanga Limited had an outstanding balance of $6,325 due to TVNZ (2009 - $11,700).

NOTES TO THE FINANCIAL STATEMENTS

There were no outstanding balances as at 31 December 2010 (2009 - NIL).

22(i) Sustainable Prosperity NZ Ltd

22(e) The University of Auckland

June McCabe is a director of Sustainable Prosperity NZ Ltd and is also a Board Member of Open Wānanga.

Manuka Henare is a Council member of Te Wānanga o Aotearoa and is also an employee of The University of Auckland. The University of Auckland supplies Te Wānanga o Aotearoa library with documentation such as student theses. During 2010 Te Wānanga o Aotearoa paid The University of Auckland $7,204 for these services (2009 - $7,256).

Open Wānanga Limited had no transactions with Sustainable Prosperity NZ Ltd in 2010 (2009 - $1,235).

There were no outstanding balances as at balance sheet date (2009 - NIL).

As at balance sheet date there was no outstanding balance due to Sustainable Prosperity NZ Ltd (2009 - NIL).

22(f) Te Tau Ihu o Ngā Wānanga Bentham Ohia is Pouhere of Te Wānanga o Aotearoa and is also the Chair of Te Tau Ihu o Ngā Wānanga. Te Tau Ihu o Ngā Wānanga is the collective name of the national wānanga in New Zealand, Raukawa, Awanuiārangi and Te Wānanga o Aotearoa. All three Wānanga pay an annual subscription to Te Tau Ihu o Ngā Wānanga. This amounted to $30,546 in 2010 (2009 - $48,842).

There were no outstanding balances as at balance sheet date (2009 - $54,947).

100

Open Wānanga Limited paid TVNZ $121,532 for these services in 2010 (2009 - $99,620).

The 2009 transactions relate to travel costs for June McCabe’s attendance at Open Wānanga board meetings.

22(j) Arrowmight International Ltd Arrowmight Limited is a fully owned subsidiary of Aotearoa Institute. Open Wānanga Limited had no transactions with Arrowmight Limited (2009 - $71,360). The 2009 transactions related to consultancy services provided to assist with programme development.

There was no outstanding balance due to Arrowmight as at balance date (2009 - NIL).

22(k) GTL Investments Limited

Terms and conditions of transactions with related parties

GTL Investments Limited is a fully owned subsidiary of Aotearoa Institute.

Provision of services to and purchases from related parties are made in arm’s length transactions at both normal market prices and normal commercial terms.

Open Wānanga Limited purchase student learning resources from GTL Investments Limited. Open Wānanga Limited purchased resources totalling $562,255 in 2010 (2009 - $536,510).

Outstanding balances at 31 December 2010 and 2009 are unsecured and settlement occurs in cash.

As at balance sheet date Open Wānanga Limited had no outstanding balance due to GTL Investments Limited (2009 - $33,834).

GTL Investments Limited is not a related party for the Parent in 2010.

22(l) Tuia Group

There have been no guarantees provided or received for any related party receivables.

For the year end 31 December 2010, 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 (2009 - 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.

Parekāwhia McLean resigned as a Council member of Te Wānanga o Aotearoa in February 2010.

Her brother-in-law is a partner of Tuia Group. Tuia Group is engaged to undertake legal work on behalf of Te Wānanga o Aotearoa $41,070 to February 2010 (2009 - $406,738).

Tuia Group ceased to be a related party in February 2010 following Parekāwhia’s resignation from Council.

Parekāwhia McLean resigned as a Council member of Te Wānanga o Aotearoa in February 2010.

Her father-in-law is Chairperson of Te Wānanga o Raukawa. Te Wānanga o Raukawa invoiced Te Wānanga o Aotearoa for travel expenses to attend Academic Board meetings in 2009 ($2,719).

There were no transactions in 2010.

Te Wānanga o Raukawa was no longer a related party in 2010.

22(n) Mauriora Ki Te Ao/Living Universe Limited Parekāwhia McLean resigned as a Council member of Te Wānanga o Aotearoa in February 2010.

She is the director and shareholder of Mauriora ki Te Ao. Mauriora Ki Te Ao invoiced Te Wānanga o Aotearoa for a guest speaker presentation by Charles Royal in 2009 ($300).

NOTES TO THE FINANCIAL STATEMENTS

22(m) Te Wānanga o Raukawa

There were no transactions in 2010.

Mauriora Ki Te Ao/Living Universe Limited is no longer a related party in 2010.

101

NOTES TO THE FINANCIAL STATEMENTS

102

Council remuneration

Directors’ fees

Wages and salaries include Te Mana Whakahaere and sub-committees remuneration of $85,832 (2009 - $107,089) distributed as follows:

Directors’ fees paid by Open Wānanga were as follows:

2010 $’000

2009 $’000

25

25

Richard Batley

Council/Audit & Risk

Tania Hodges

Council

9

7

Mana Forbes

Council

9

3

Lloyd Anderson

Council/Audit & Risk

8

7

June McCabe

Council

8

3

Toby Curtis

Council

8

3

Peter Joseph

Council

4

5

Deirdre Dale

Council

4

5

Matthew Goodall

Council

4

1

Manuka Henare

Council

3

2

Wayne McLean

Audit & Risk

2

6

Steve Ruru

Audit & Risk

1

-

Neville Baker

Council

1

8

Lisa Tipping

Audit & Risk

-

24

Parekāwhia McLean

Council

-

8

86

107

2010 $’000

2009 $’000

Richard Batley

45

45

Lloyd Anderson

18

18

June McCabe

18

18

81

81

2010 $’000

2009 $’000

1,219

1,329

86

107

1,305

1,436

2010 $’000

2009 $’000

1,305

1,436

-

-

1,305

1,436

Key management personnel compensation

Kaihautū Council

Short term and employee welfare benefits Termination payments

23. Events after the balance sheet date There were no events after the balance sheet date.

24. Performance against budget Statement of comprehensive income Government grants Other government funding is under budget by $1m due to a change in the recognition of funding in 2009 for a number of projects. The change in funding recognition was made after budget was set.

An agreement was also reached with Ministry of Education to delay certain project payments to 2011. Budget assumed all payments would be received in 2010.

Depreciation and amortisation Depreciation and Amortisation is under budget by $0.6m due to lower capital purchases in 2010 than was anticipated.

Other expenses Other expenses are over budget by $1m due to specific aspects of the fixed asset register being reviewed in detail and a number of assets being impaired.

Statement of financial position Property, plant and equipment Group property, plant and equipment are lower than budgeted by $10m as a result of delays in planned capital expenditure projects.

General funds Group general funds are greater than budgeted by $11.5m due to surplus cash as a result of delays in planned capital expenditure projects.

Raroera Campus - Hamilton

I

103

Rārangi Whakamārama Glossary ako teaching and learning

kaiako

ākonga

kaiāwhina

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

assistant; carer

aroha

executive director

love; compassion; affectionate regard

Aromarau programme review activities

Aromatawai self-review activities

Arotaumata Gatherings that use information from self-review activities to plan quality improvement initiatives

Arotika The process of collating and monitoring information from self-review activities

EEO equal employment opportunities

EFTS equivalent full-time student

RĀRANGI WHAKAMĀRAMA

FTE

104

tutor

kaihautū kaimahi staff member; staff

kaitiaki guardian

kaitiakitanga guardianship

Kāpuia the graduate community network of Te Wānanga o Aotearoa

kaumātua elder/s

kaupapa theme; philosophy; topic; agenda

Kaupapa Wānanga

full-time equivalent

an initiative to strengthen adherence to the Kaupapa of Te Wānanga o Aotearoa in everyday activities throughout the organisation

Hakihea

kete

December

basket; pack

hapū

Kīngitanga

extended family unit

the Māori monarchy

hui

Kohi-tatea

assemble; gather; meet; meeting

January

iwi

kōrero

group of hapū who are linked by tūpuna and blood; tribe

speak; spoken language

Pākehā

elderly man

European person

Koroneihana

Papatoa

the annual coronation celebrations of the Kīngitanga

Certificate in Cable Logging delivered by Te Wānanga o Aotearoa

kotahitanga

Papatūānuku

oneness; unity

Mother Earth

kura

poukai

school

annual events during which the Māori monarch consults the people

Mahuru

pōwhiri/pōhiri

September

beckon; welcome; a ceremony to welcome visitors

manaakitanga

pūtea

hospitality

purse; funds

marae

rangahau

communal gathering place

research

Mātātahi Mataora

rangatahi

the youth strategy of Te Wānanga o Aotearoa

youth

matataki

Ratana

risk

religious and political movement Tahupōtiki Wiremu Ratana

mātauranga

reo

knowledge; understanding

language; speech

mokopuna

rohe

grandchildren

region

ngā

rongoā

plural of ‘te’; the

traditional Māori medicine

Ngā Ture Whakapai

SDR

legislative compliance framework

Single Data Return: a report sent to the Ministry of Education containing tauira enrolment and achievement data

ngāti tribal prefix

RĀRANGI WHAKAMĀRAMA

koro/koroua

STAR Secondary Tertiary Alignment Resource

105

RĀRANGI WHAKAMĀRAMA

tamariki

tupuna/tūpuna

children

ancestor/ancestors

taonga

ture

property; anything highly prized

lore; law

tauira

uaratanga

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

organisational mission statement

te

uara

the

value

Te Ao Māori

waka

the Māori world or sphere

canoe; vehicle

Te Komiti Ārai i ngā Tūpono

Wānanga Ora

the Audit and Risk Management Committee of Te Wānanga o Aotearoa

Te Wānanga o Aotearoa wellness programme

Te Mana Whakahaere

whakapono

the Council of Te Wānanga o Aotearoa

to act with integrity

Te Pouhere

whakamaumahara

the chief executive officer of Te Wānanga o Aotearoa

remembrance

Te Rautiaki Mātauranga

whānau

the Academic Board of Te Wānanga o Aotearoa

family

Te Toi Roa

whanaungatanga

quality initiatives at Te Wānanga o Aotearoa

family ties

Te Panekiretanga o te Reo

Whiringa-ā-nuku

Institute of Excellence for the Māori Language

October

tika

Whiringa-ā-rangi

right; correct

November

tikanga custom; plan method (derived from tika)

tomokanga entranceway

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TE P的RONGO - ANNUAL REPORT 2010