Te Pūrongo - TWoA Annual Report 2016 by Te Wananga o Aotearoa

Te PÅ«rongo Annual Report 2016

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te waka o Te Waonui o Tāne Buried within the heart of the magnificent tōtara lies unlimited potential. That potential remains hidden, waiting for skilled craftsmen to carefully transform it into something which can change the lives of many.

Kupu whakataki

Tērā te riu a Tāne Kei te iho Kei te uho Kei te kōhiwi Kei te tīwai Ka koti ki raro Ka heu ki runga Kimihia i roto Tāraia i waho Rere mai te maramara Rere mai te kongakonga Koia rā! Koia rā!

Within each of our tauira lies this same unlimited potential. Through the careful nurturing of our kaiako, our tauira are able to create their own waka and through its use, transform lives. In 2002 a 13-metre partially completed dugout waka was discovered buried near Otorohanga. This one is estimated to be up to 200 years old and is a rare example of a waka under construction. It can be seen at the Otorohanga Museum.

Te Wānanga o Aotearoa — Te Pūrongo 2016

10 Tā Te Heamana › Chairperson’s Report 16 Tā Te Taiurungi › Chief Executive’s Report 22 Te Mana Whakahaere › Council 24 Ngā Tumu › Executive Directors 26 Whāinga Rautaki 1 › Strategic Objective 1 32 Whāinga Rautaki 2 › Strategic Objective 2 38 Whāinga Rautaki 3 › Strategic Objective 3 42 Whāinga Rautaki 4 › Strategic Objective 4 46 Te ine whakaritenga › Measuring our performance 76 Te tahua › Financial Report 134 Hei whakamaumahara › Remembrance

Rārangi ūpoko 5

Te Wānanga o Aotearoa — Annual Report 2016

Ko te Whakakitenga Our Vision

He takapau mātauranga, he whānau huarewa Whānau transformation through education

Ko te Koromakinga Our Mission

Kia angitu te tauira Tauira success

el ou r b

. ner

tin

l ly

t ha

g a s o ne .

a l ly

a nd

et h

ic a

h rig

nd ta

e tw

s t a nd i n

t ies;

a ns

et h

nici

e dg

o cti

r ight.

of a si s

e f s a nd t h

hat we a re doi

n an

apono

tw t ha

h ta

ga an

ty ni

g on

Ng ā

a ur to

ak Wh

n si

for

om w

ho n ou r

nf i de

v Ha

a re g

t ho r a nd

es er

d to wh ble a n

c ea

a wi

ng i

a nt

Ko ngā uara

a oh r A

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te Wānanga o Aotearoa — Annual Report 2016

In review:

734

rangahau outputs

He Waka Hiringa EFTS

kaimahi participate in Tau Ora wellness programme

31,291 tauira in

Level 1-2 8,113 Level 3+ 23,188 Youth Guarantee 678 8

Te Wānanga o Aotearoa — Te Pūrongo 2016

23 Te Whare Māreikura leadership workshops for kaimahi wāhine

Kaikohe, Tauranga, Lower Hutt

Thirteen

new programme pathways to tauira success

income from non-government sources

paddlers compete in the 2016 TWOA Waka Ama Nationals 9

Tā Te Heamana Chairperson’s report

Te Wānanga o Aotearoa — Te Pūrongo 2016

Nōku te hōnore ki te tuku i tēnei pūrongo ā-tau 2016, te tuatahitanga mōku hei heamana mō Te Mana Whakahaere.

E ngā mana, e ngā reo, e ngā kōrero He takapau mātauranga, he karangatanga maha tēnā koutou katoa. whānau huarewa. Ka tika kia tangihia te rironga, i tēnei tau 2016, o ngā hautoa e rua o Te Mana Whakahaere me Te Wānanga o Aotearoa. I te marama o Whiringa-a-rangi i poroporoakihia a Rea Wikaira, arā, tētahi tino mema o te Waipā Kōkiri Arts Centre, mō muri mai ka tū ko Te Wānanga o Aotearoa. I hono atu a Rea ki Te Mana Whakahaere hei mema nā te Minita i te tau 2013. He māngai kaha tohe i ngā whanaketanga o te iwi Māori, ka mutu, ka mihia ia me ōna mātauranga, mōhiotanga mō te wānanga. I taua marama tonu o Whiringa-arangi i hinga hoki a Minita Te Napi Tutewehiwehi Waaka, tētahi mema hoki o mua o Te Mana Whakahaere me tētahi kaimahi o Te Wānanga o Aotearoa. Ko Napi tētahi kōpua mātauranga mō te ao Māori. He rite tonu te kitea o tana tinihanga, o tana pukuhohe i a ia i Te Wānanga o Aotearoa.

Koinei te tau tuatahi i nōhia ngā tūru katoa e te tokoiwa o Te Mana Whakahaere, ā, i whai wāhi hoki ngā mema hou ki te whakawhanake i ō rātou mātauranga, me ō rātou māramatanga mō te wānanga. I tēnei tau hoki, i whai māramatanga, maiohatanga, ka mutu, i whakamahia ngā pūkenga whānui o ngā mema i whārikihia ki te aroaro hei whakapūmau i ngā whakataunga ā-mana whakahaere nei. Kia mihia ngā mahi, me te whakapau kaha a ōku hoa mema Mana Whakahaere – a Bryan Hemi (Heamana Tuarua), rātou ko Tākuta Kathie Irwin, Josh Wharehinga, Katie Bhreatnach ko Robert Gabel. Kia toro atu hoki aku whakamaiohatanga ki Te Taiurungi me te mema Mana Whakahaere, ki a Tākuta Jim Mather, i āna mahi arataki. Kia mihia hoki ngā mema hou – Steve Ruru rāua ko Jon Stokes – i whakatūria hei mema i te marama o Hakihea 2016.

Moe mai rā e ngā rangatira. Ko te tau kātahi anō ka hori tētahi tau e kitea tonutia ana te angitu i roto i Te Wānanga o Aotearoa, ka mutu, he tau whakatōtika, whakapai ake e whakaū tonu ai tā tātou oati Kia angitu te tauira me te

Ko Te Wānanga o Aotearoa tētahi whare mātauranga hei hiki i te whakatutukihanga mātauranga o te iwi Māori me ngā iwi katoa o ō tātou hapori puta noa i Aotearoa. Kua riro mā mātou tētahi wāhanga nui o te kawenga kia kore rawa

te iwi Māori e mahue i roto i ngā mahi mātauranga, kia whānui ake hoki ngā huarahi ako me ngā hua whiwhi mahi. Hei heamana, ko tāku he whakapau kaha ki te taunaki i te pakari me te whai mana o te mana whakahaere e taea ai e te wānanga te eke ki te pae o te pito mata, ki te pae i manakohia ai e ngā hapori maha e whakarato nei tātou. Ko te aronga o Te Mana Whakahaere, ko te whakarite i te rautaki me te ahunga o Te Wānanga o Aotearoa, ko te āta tirotiro hoki i ngā mahi a Tākuta Mather me tōna tira. Katoa nei he aro pū ki te arotake me te whakatōtika i ngā tukunga mātauranga ka whakaritea e mātou, he whakaaro ake hoki ki ētahi atu whare mātauranga, rōpū whakahaere e taea ai e tātou te mahi ngātahi kia tutuki ai ngā hiahia o rātou e rapu ana i te mātauranga, e rapu ana rānei i tētahi huarahi mahi. Ko tēnei ahunga o mātou, he āhuatanga e whai tonu nei i te tūāpapa i whakaritea e ngā mema Mana Whakahaere o mua, i aratakina e te heamana o mua, e Richard Batley, nānā te tūranga i whakawātea i te tau 2016, e whakakapi nei i ana ngahuru e whakapau kaha ana ki Te Mana Whakahaere.

Te Wānanga o Aotearoa — Annual Report 2016

Kia whakamihia e au a Richard, nānā, otirā nā rātou ko ētahi atu mema o te Mana Whakahaere, te huarahi i para, e whai hua ai te āpōpō o Te Wānanga o Aotearoa. I mauria mai e Richard ngā pūkenga nui mō te taha kaute ki te tūranga, ka mutu i kōkiritia tetahi hurihanga nui o Te Wānanga o Aotearoa, īnāianei e tū rawa nui ana e tutuki tonu ai a tātou mahi ako me te kounga o ngā mahi, puta noa. I te tau 2016, i pūrongotia te tau tuangahuru e tuwhene ai te taha pūtea ki te $2.6 miriona. Ahakoa i iti ake i tēnei tau, i pērā i runga i te āhuatanga o te hekenga wāriu me te ine anō i te wāriu o ngā whenua me ngā whare. Ā kāti, koinei, kia pakari tonu te pūtea tuwhene, kia pakari hoki te whakahaere putea, tētahi aronga nui e whāia tonutia e Te Mana Whakahaere i ngā tau kei mua. E whakamoemiti ana au i te kaha me te nui o ngā pūkenga kaute o roto mai i Te Mana Whakahaere, he mea whakaū i tēnei aronga o mātou. I ngā marama tekau mā rua kua hori ake nei he rite tonu te whakatōtika, te whakapai ake, ka mutu, ka pērā tonu i te tau 2017. Me mātua whakarite e tātou tētahi pae hiranga nui, pae whakaū, pae ngaio i roto i a mātou mahi katoa.

I te tau 2016 i angitu te whakarewa i Te Pae Tawhiti 2027 – tā tātou mahere rautaki. Koinei te mahere nui whakaharahara e whakatakoto nei i te ahunga mō ngā tau tekau kei mua. E titikaha ana te ngākau i Te Pae Tawhiti 2027 i te mea he mea āpiti ki te hītori me ngā whakapeto ngoi o mua a ngā kaimahi. Mai i ngā panonitanga o ngā tau o mua me tā tātou arotahi ki ngā tauira e taea ai e Te Wānanga o Aotearoa te kōkiri whakamua i runga i te mōhio. Kua whakaarohia e mātou ka pēwhea te āhua o te wānanga hei ngā tau tekau, kua kitea kei whea mātou īnāianei, ka mutu, kua tautuhia me aha mātou e ū ai ki taua pae. E kitea ana hoki tēnei aronga kētanga i roto i te tohu hou o Te Wānanga o Aotearoa, i whakarewangia i te marama o Paengawhawha, 2016. He tohu nō te huarahi e para nei mātou, ā, he tirohanga ā-rangi ki tētahi waka, kei te pokapū ko te tauira – he mea whakaatu i tā tātou ahunga tahitanga. Hei ngā tau tekau e heke mai ka whakaū tonu Te Wānanga o Aotearoa i tana tūranga hei whare mātauranga whakaihuwaka, e whai wheako ai te tauira o te mātauranga kounga taketake o te ao, me te whakaū hoki i taua whakapūmautanga mā

roto i te mātauranga hihiri. Ka whakakōkiri tonu hoki i taua ahurea auaha me te whai mahinga ngātahitanga kia angitu. I tēnei wā ka mihi ki a Tākuta Jim Mather me tōna tira e ngākau nui nei te hoe i te waka ki te tautoko me te whakaaraara i ngā tauira mano tini kua ako mai ki Te Wānanga o Aotearoa i tēnei tau, 2016. Ia tau he rite tonu ngā kupu whakamihi a ngā tauira ki ngā kaimahi e whakapeto ngoi ana, e ngākau hihiri ana i roto i te akomanga. Koinei e rangatira ai Te Wānanga o Aotearoa, e pakari te tū i te ao o te tuku mātauranga, mā roto mai i te whakatū kanohi māia, kanohi whakahihiri mā ngai Māori me ngā tauira puta noa i ngā hapori. Tēnei e mihi nei ki a Jim me tana tira i ngā hua pai i puta i te tau 2016 me ngā hua ka puta i te tau e heke mai, 2017. Vanessa Eparaima

Te Wānanga o Aotearoa — Te Pūrongo 2016

I am honoured to present the Annual Report for 2016, my first as chairperson of Te Mana Whakahaere.

I would like to firstly acknowledge the passing of two stalwarts of Te Mana Whakahaere and Te Wānanga o Aotearoa during 2016. In November, we farewelled Rea Wikaira, who was a key member of the Waipa Kokiri Arts Centre, which would go on to become Te Wānanga o Aotearoa. Rea joined Te Mana Whakahaere as a Ministerial appointee in 2013. He was a passionate advocate for Māori development and his wisdom and knowledge of the institution in its early days will be sadly missed. November also marked the passing of Reverend Te Napi Tutewehiwehi Waaka, who was also a former Te Mana Whakahaere member and kaimahi of Te Wānanga o Aotearoa. Napi was a deep well of knowledge of Te Ao Māori. His humility and good humour was a consistent part of who he was during his time with Te Wānanga o Aotearoa. Moe mai rā e ngā rangatira. The past year was one of continued success for Te Wānanga o Aotearoa and a year of further refinement and improvement as we continued our commitment to Tauira Success and Whānau Transformation Through Education. It was the first full year of the new nine-member council and it provided an opportunity for new members to further expand their

knowledge and understanding of the organisation. It also allowed greater appreciation and application of the various range of skillsets the collective council membership bring to the table to enhance our governance decision making.

expectations and aspirations of the many communities that we serve. Te Mana Whakahaere is focused on setting the strategy and direction for Te Wānanga o Aotearoa and for monitoring the performance of Dr Mather and his team.

I would like to acknowledge the commitment and work of fellow council members – Bryan Hemi (Deputy Chairperson), Dr Kathie Irwin, Josh Wharehinga, Katie Bhreatnach and Robert Gabel. I would also like to extend my appreciation for the leadership of Te Taiurungi and council member Dr Jim Mather.

It also focuses on reviewing and refining the educational offerings we provide and to consider organisations we can work alongside to meet the needs of those seeking further learning or the enhancement of their employment opportunities.

I’d like to welcome new members – Steve Ruru and Jon Stokes – who were appointed to the council in December 2016. Te Wānanga o Aotearoa is an organisation which has a crucial role in lifting the educational achievement of Māori and all people within our communities across Aotearoa. We have an essential part to play in ensuring Māori are no longer left behind in educational performance and that our people also have a range of pathways to further education and improved employment outcomes. As chair, it is my role to do all that I can to support strong and considered governance that enables the organisation to achieve its potential and to meet the

This approach is a continuation of the foundation set by former council members, led by former chairman Richard Batley, who stood down from the role during 2016, concluding almost a decade of service to Te Mana Whakahaere. I would like to acknowledge Richard who, supported by other council members, laid the foundation for the strong and vibrant future that lays before Te Wānanga o Aotearoa. Richard brought a strong financial pedigree to the role and initiated a significant turn-around for Te Wānanga o Aotearoa which now has a solid financial platform from which to continue our evolution as a leading provider of quality education and training across Aotearoa.

Te Wānanga o Aotearoa — Annual Report 2016

In 2016, at Group level we recorded our tenth consecutive year of financial surplus, at $2.6 million. While this figure was a reduction on last year, this was due largely to depreciation of buildings. A continued focus of ensuring strong surpluses and solid financial performance will remain a key focus for this council. I am grateful for the range of excellent financial expertise across Te Mana Whakahaere, which will ensure this remains a key priority.  The past 12-month period has been one of continued refinement and improvement, which will continue throughout 2017. We must set a platform of excellence, sustainability and professionalism across all that we do. In 2016, we successfully launched Te Pae Tawhiti 2027 (The Distant Horizon 2027). This important plan sets out our strategic direction for the next 10 years. We have confidence in Te Pae Tawhiti 2027 because it builds on the history and past commitment of our kaimahi. The changes made over recent years and our tauiracentric focus allows Te Wānanga o Aotearoa to move forward with certainty. We have considered what we want to look like in 10 years, established where we are now and identified what we need to do to get there.

This refocusing is also reflected in the new brand for Te Wānanga o Aotearoa, which was launched in April 2016. It represents the journey we are embarking upon and the tohu – based on a bird’s eye view of a waka with tauira in the centre – shows we are heading in the same direction. In the coming 10 years, Te Wānanga o Aotearoa will consolidate its place as a leading New Zealand tertiary organisation, providing a worldclass indigenous experience, and ensuring sustainability through educational excellence. We will also continue a commitment to driving a culture of innovation and partnering for success. I would like to take this time to thank Dr Mather and his team who have worked hard and passionately throughout the year to support and motivate the tens of thousands of tauira who studied with Te Wānanga o Aotearoa through 2016. Each year, our kaimahi receive consistently high praise from our tauira for the hard work and passion they provide in the classroom. It is this passion that stands us in a powerful position in tertiary education provision by providing a compelling and welcoming face for Māori and learners from across the community.

I thank Jim and his team for the continued strong results of 2016 and in anticipation for the further strides forward we will take in 2017. Vanessa Eparaima

“ Hei heamana ko tāku he whakapau kaha ki te taunaki i te pakari me te whai mana o te mana whakahaere e taea ai e te wānanga te eke ki te pae o pito mata, ki te pae i manakohia ai e ngā hapori maha e whakarato nei tātou.” As chair, it is my role to do all that I “ can to support strong and considered governance that enables the organisation to achieve its potential and to meet the expectations and aspirations of the many communities that we serve.”

TÄ Te Taiurungi Chief Executive's report

Te Wānanga o Aotearoa — Te Pūrongo 2016

E ngākau whakahī ana ahau ki te tuku i Te Pūrongo 2016, te pūrongo ā-tau o Te Wānanga o Aotearoa.

Tēnei te tuku i ngā takutaku whakawhetai ki te runga rawa e tauwhiro nei tātou i raro i tana korowai atawhai. Manaakitia hoki te mounga o te motu e pupuru nei i te Mana Māori Motuhake, kei taku ariki tēnei ka whakamiha.

Ko Te Muka Kaimahi te huinga kaimahi e whai reo kōrero ai te kaimahi ki Ngā Tumu me Te Mana Whakahaere. Ko tā Te Taumata Kaumātua he tuku tohutohu ārahi mō ngā take ahurea, me te taha ki te toro atu ki ngā hinonga Māori me ērā atu hunga whai pānga matua.

Ko tētahi o ngā hōkai o mua ake ko te arotake i ā tātou akoranga hei whakaū i te hāngai me te whai take ki te katoa o ngā hunga whai pānga mai. I puta tēnei i muri mai i ngā hui whakawhitiwhiti whānui, whakapā Kātahi te tau kua ahu whakamua, hoki ki ngā tauira, ngā ahumahi me kua whai hua hoki i roto i aua ngā hapori. Kua tautuhia e mātou ahunga, ka mutu, kua paiheretia ētahi panonitanga e hiahiatia ana tonutia e tātou tō tātou koromakinga ki ētehi akoranga me te whakahou 'kia angitu te tauira' me tō tātou haere i ngā akoranga. whakakitenga 'he takapau mātauranga, he whānau huarewa'. I te tau 2016, 32 ngā akoranga i arotakengia ai. O ēnei, 28 i Ko tētahi tino whakatutukihanga whakamanahia e te Mana Tohu o te tau ko te whakatoko i te tā Mātauranga o Aotearoa - 15 i tātou mahere rautaki - Te Pae arotakengia, i whakahoungia, 13 ngā Tawhiti 2027. He mea whakaoti mā tohu hou i waihangatia - arā ko ngā roto i te mahi ngātahi ki Te Mana toenga kua whai wāhi ki te rārangi Whakahaere me ngā urupare mai whakahou akoranga o te tau 2017. i ngā uiui a ngā kaimahi me ngā tauira. I whakapūmautia hoki te Ko tētahi mea nui i roto i aku mahi ahunga e te whakahounga tohu i whakamahere i ngā rā kei mua, whakamahia i tērā tau. ko tā māua ko Te Taituarā, a John Whaanga, whakatau kia haere ki I te tau 2016 i whakatūria hoki ngā ngā whare katoa o Te Wānanga o huinga kaimahi, kaumātua hoki. Nā Aotearoa i taua tau tonu 2016. Ko ēnei huinga e rua ētehi urupare nui i tēnei mahi nui he mea i mahia kia tuku mō te mahere o ngā rā kei mua. whai wāhi ai māua ki te whakarongo Ka tika kia mihia, kia tangihia ngā huhua mate o te tau, rātou mā kua nunumi ki tua o te ārai, ki te pūtahi nui o Rehua, koutou ki a koutou.

ki ngā kaimahi kia mārama ai māua ki ō rātou whakaaro mō te ahunga o te wānanga. E manea ana te ngākau ki te taha pūtea i tēnei tau, he $2.6 miriona te pūtea tuwhene i riro mai ai, ā, koinei tō tātou tau tuangahuru i pēnei ai. Mā roto tonu i ā tātou mahi pai e toko tonu ai te taha pūtea hei ngā rā kei mua. Kua whakatauria e Te Amorangi Mātauranga kia toru tau te whakaaetanga i tā tātou mahere haumi, arā e taunaki tonu ana i te pai o ā tātou mahi whakahaere pūtea. Ahakoa ngā pānga o ngā panonitanga kaupapa here, kei mua tonu tātou mō ngā mahi ako o te ao mātauranga, ka mutu, e kitea tonutia ana ngā hua mō te iwi Māori me ngā tauira katoa kua piri mai ki Te Wānanga o Aotearoa. E kaha ū tonu ana ngā tauira ki ngā akoranga nō reira he tohu nui o te kounga o ā tātou kaiako me ngā akoranga. I te tau 2016 i tāpuitia ngā tapeke tauira e 20,242 ka mutu i riro te 20,209 – he whakatutukihanga nui i tēnei taiao taukumekume o te ao mātauranga. Hei tuatahitanga hoki mō te Wānanga, ko te whiwhi i tētahi pūtea taunaki rangahau i te tau 2016, ka mutu, nā tēnei i tutuki tētahi o ngā tino whāinga o Te Rautaki Rangahau. Ko taua

Te Wānanga o Aotearoa — Annual Report 2016

pūtea $60,000 mai i Ngā Pae o te Māramatanga ka whakapaua ki te tuatahi o ngā kaupapa rangahau e rua e aro ana ki te Reo Māori. E tūhāhā tonu ana Te Wānanga o Aotearoa i te ao mātauranga i ngā whare wānanga puta noa te motu, i roto i tā mātou kawe i te mātauranga ki ngā hapori mā roto tonu i ō tātou whare mai i Kaitāia ki Murihiku. Kua paiheretia tēnei āhuatanga e ngā kaiako, me te noho hei whare mātauranga taketake kounga puta noa te ao. E ū tonu ai tēnei, me kaha tuku tonu i te hangarau i roto i ngā mahi ako. Nā tēnei kua puta ngā whakaaro mō te pēwhea o te whakakotahi i te hangarau me te āhuatanga o te ako kanohi ki te kanohi. E tirohia ana hoki ngā āhuatanga e tōtika ake te taha whakauru tauira, e whai hua anō ai te tauira, e whakamahia tika hoki ai ngā rauemi. Hei āpiti hoki ki tā tātou whakarato i ngā hapori me ngā tauira, kua whakatauria e Te Wānanga o Aotearoa kia whāia tētahi rautaki kanohi kitea ki Tāmaki ki te tonga, ki te Taitokerau hoki mā te whakatū me te whakaū i ngā hononga me ngā toronga ki ngā iwi whai pānga, arā, koia ko ētahi atu whare mātauranga hoki. I tīmata ētahi mahi whakariterite i te tau

2016, ka mutu ka noho hei aronga mō te tau 2017. I te tau 2016, ehara i te mea i whakatauria noatia tā tātou tautoko i te Taitokerau mā roto i te hūnuku ki tētahi whare kei te pokapū o te taone, engari i whakahāngai i ērā mahi ki ētahi atu kōkiritanga. I hūnuku mātou ki tētahi whare hou i Tauranga, ka mutu, i whakahoungia tētahi whare i Te Awakairangi. Nā ēnei whanaketanga i taea ai e mātou te whānui o ngā akoranga me ngā taputapu hangarau hou te tuku ki ngā tauira. I poroakitia hoki ētahi tino kaikōkiri o Te Wānanga o Aotearoa. Koia ko Marie ‘Aunty Ma’ Panapa – tētahi o ngā kaiwhakatū i Te Wānanga o Aotearoa, i rīhaina, ka mutu, i whakanuia ki tētahi huinga i tae mai ai te rau tāngata mai i ngā tōpito o te motu. E noho tonu ana a Aunty Ma ki Te Taumata Kaumātua hei kaihāpai, hei kaitaunaki tonu i te wānanga ki te taha ahurea. E whakamānawa hoki ana i ngā mahi a te heamana o mua, i a Richard Batley, i rītaia i te wānanga i te marama o Whiringa-a-nuku 2016. Ā kāti ake, ko aku kupu whakamihi ki te heamana ki a Vanessa Eparaima, me ngā mema o Te Mana Whakahaere i tā rātou ārahi, tautoko hoki, ā, e ngākau rikarika ana ki ngā hua nui o te

tau 2017 me ngā rā kei mua. He mea nui hoki kia whakamihia ngā mahi a aku hoa mahi ko Te Taituarā John Whaanga, ko Ngā Tumu, me ngā Hoe Whakatere, ka mihia hoki ngā kaimahi puta noa i Te Wānanga o Aotearoa.

Ngā manaakitanga, Dr Jim Mather

Te Wānanga o Aotearoa — Te Pūrongo 2016

I am extremely proud to present Te Pūrongo 2016, the annual report of Te Wānanga o Aotearoa.

It has been a year in which further credible progress has been made and as an organisation we have continued to emphasise our commitment to our mission of ‘Tauira Success’ and vision of ‘Whānau Transformation Through Education’. A key achievement over the past year has been the development of our long-term Strategic Plan – ‘Te Pae Tawhiti 2027’. This was completed alongside Te Mana Whakahaere with input from both kaimahi and tauira surveys. Our new direction was also enhanced by our brand refresh implemented during the year. In 2016, we established new kaimahi and kaumātua forums, both of which provided important feedback to our long-term planning. ‘Te Muka Kaimahi’ is a kaimahi forum that ensures the ‘kaimahi voice’ is conveyed to both Ngā Tumu and Te Mana Whakahaere. ‘Te Taumata Kaumātua’ provides guidance on specific cultural matters and advice on managing relationships with Māori entities and other key stakeholders. An early step in our new journey has been a review of our programmes to ensure they continue to remain relevant and fulfil the expectations of all

stakeholders. This came about following extensive consultation and engagement with our tauira, industry and communities. We have identified changes we want to make to some of our programmes and are progressively updating them. In 2016, 32 programmes were reviewed. Of these, 28 were accredited by NZQA – 15 were reviewed and redeveloped and 13 new qualifications developed–with the balance now part of the 2017 programme development plan.

Despite the ongoing impact of policy changes, our education performance continues to lead the wānanga sector and we are seeing positive outcomes for Māori and all other tauira who choose to study with Te Wānanga o Aotearoa. Retention of tauira continues to be a strength, which is testament to the quality of our kaiako and programmes.

In 2016, Te Wānanga o Aotearoa was allocated 20,014 EFTS (Equivalent Fulltime Students) and achieved 20,242 – a very creditable result in what continues to be a challenging Another important factor in our long- tertiary environment. term planning was a commitment by Te Taituarā John Whaanga and Te Wānanga o Aotearoa was awarded myself to visit all Te Wānanga o its first significant rangahau (research) Aotearoa campuses during 2016. grant in 2016 and in the process This ambitious exercise was an achieved one of the key goals of the opportunity to listen to our kaimahi newly-released rangahau strategic and understand their views plan, ‘Te Rautaki Rangahau’. The about the direction in which the $60,000 funding from New Zealand’s organisation is heading. Māori Centre of Research Excellence, Ngā Pae o te Māramatanga, is for the It is also pleasing to achieve a first of two planned flagship rangahau $2.6 million Group surplus, our projects and focuses on te reo Māori. tenth successive year of financial surpluses. Ongoing refinement will Te Wānanga o Aotearoa continues ensure Te Wānanga o Aotearoa to be unique among tertiary can sustain this strong financial organisations throughout New Zealand performance into the future. The in that we literally take education to Tertiary Education Commission our communities through our national (TEC) has committed to a threenetwork of delivery sites stretching year approval of our Investment from Kaitaia to Invercargill. Kaimahi Plan, offering further support for are committed to this approach and our sound financial management. remaining a national provider of worldclass indigenous education.

Te Wānanga o Aotearoa — Annual Report 2016

To maintain this commitment means an increasing emphasis on digital technology for programme delivery. This has prompted further consideration of how technology can be merged with our traditional kanohi ki te kanohi (face-to-face) delivery of programmes. We are also investigating ways to streamline our enrolments process, providing further benefits to tauira and enabling more efficient use of resources. Alongside our continuing service to our communities and tauira, Te Wānanga o Aotearoa has a firm commitment to establishing a stronger strategic presence in South Auckland and Northland through enhancing partnerships with stakeholders, which include other tertiary institutions. Preparatory work commenced in 2016 and will remain a key area of focus in 2017. In 2016, we not only confirmed our commitment to Northland by relocating our Kaikohe campus to a more central site in the town, but aligned that work with other key initiatives. We relocated our Tauranga campus to a new custom-designed site and opened a completely refurbished campus in Lower Hutt. These developments enabled us to

increase the range of programmes offered and to provide tauira with the latest technology available. We also farewelled several people who have played integral roles in Te Wānanga o Aotearoa. Marie ‘Aunty Ma’ Panapa – who was one of the founding members of Te Wānanga o Aotearoa – retired and was honoured at an emotional farewell event attended by hundreds of people from around the country. Aunty Ma remains a member of Te Taumata Kaumātua and will continue to provide cultural advice and support to the organisation. I also recognise the efforts of the former Chair, Richard Batley, who retired from our organisation in October 2016. Finally, I offer my sincere thanks to the Chair, Vanessa Eparaima, and Te Mana Whakahaere members for their ongoing support as well as clear direction, and look forward to the positive challenges in 2017 and beyond. It is also important that I acknowledge the efforts of our Te Taituarā (Deputy Chief Executive) John Whaanga, my Ngā Tumu and Hoe Whakatere colleagues, as well as all kaimahi throughout Te Wānanga o Aotearoa.

Ngā manaakitanga, Dr Jim Mather

“ Ko tā mātou he kawe mātauranga ki ngā hapori, nā konā e noho tūhāhā ai mātou i ērā atu whare mātauranga puta noa Aotearoa. Kua paiheretia tēnei āhuatanga e ngā kaimahi me te noho hei whare mātauranga taketake kounga puta noa te ao.” “Te Wānanga o Aotearoa is unique among tertiary organisations throughout New Zealand in that we take education to our communities. Kaimahi are committed to this approach and remaining a national provider of world-class indigenous education.”

Te Mana Whakahaere Council

Vanessa Eparaima MNZM Heamana (Chairperson) Raukawa, Ngāti Tūwharetoa

Bryan Hemi Heamana Tuarua (Deputy Chair) BE (Civil), MBA Ngāti Kahungunu, Ngāti Koata, Samoan

Katie Bhreatnach Mema (Member) LLB (Hons), BA (Hons), LLM Ngāti Mahuta, Ngāti Awa

Robert Gabel Mema (Member) BA, BCom, CA Ngāti Kahu, Te Rarawa, Te Paatu

Dr Kathie Irwin Mema Whakatūria (Ministerial Appointment) Poupou Karanga Certificate, DipTchg, DipTchEd, BEd (Hons), MEd, PhD Rakaipaaka, Ngāti Porou, Ngāti Kahungunu

The membership of Te Mana Whakahaere is determined by the Constitution and the Education Act 1989. The members of Te Mana Whakahaere come from a broad range of backgrounds and are selected for the knowledge and value they bring to the strategic direction and governance of Te Wānanga o Aotearoa.

Dr Jim Mather Mema (Member) BBus, MBA, PhD, ACA Ngāti Awa, Ngāi Tūhoe

Steve Ruru Mema Whakatūria (Ministerial Appointment) BMS, CA Raukawa, Ngāti Ranginui

Jon Stokes Mema Whakatūria (Ministerial Appointment) Diploma in Journalism Raukawa, Maniapoto

Josh Wharehinga Mema (Member) BSocSci, Grad Dip Supervision, DipAdultEd Ngāti Porou, Te Arawa, Rongowhakaata, Te Aitanga ā Māhaki

Ngā Tumu Executive Directors

Dr Jim Mather Te Taiurungi Chief Executive BBus, MBA, PhD, ACA Ngāti Awa, Ngāi Tūhoe

John Whaanga Te Taituarā Deputy Chief Executive MEd, BA Ngāti Rakaipaaka, Ngāti Kahungunu, Ngāti Rongomaiwahine

Keri Milne-Ihimaera Tumuratonga Executive Director Tauira Services DipTchg, Higher Diploma Teaching, BA Ngāi Tahu, Ngāti Mamoe

Tracey Hook Tumutahua Executive Director Finance BBS, CA Te Āti Haunui a Pāpārangi, Ngā Wairiki Ngāti Apa

Leesah Murray Tumutaumatua Executive Director Quality & Corporate Services MBA (Distinction), BIEM Ngāti Maniapoto, Ngāti Tūwharetoa

Hone Paul Tumukahuroa Executive Director Marketing BBus, GradDipBus Ngāti Manawa, Te Arawa

Brent Sincock Tumuwhanake Executive Director People Ngāi Tahu

Nepia Winiata Tumuaramātauranga Executive Director Education Delivery Services Ngāti Raukawa

Pakake Winiata Tumuakoranga Executive Director Programmes & Development BMA (Hons), MMM, Te Panekiretanga o Te Reo Ngāti Raukawa, Ngāti Awa, Ngāti Whakaue

Grant Strang Tumuhangarau Executive Director Information Technology MBA, DipBS, MIIE, MIITP, CITP, Chartered IT Professional

Te Wānanga o Aotearoa — Annual Report 2016

Te Pae Tawhiti Whāinga Rautaki 1 Strategic Objective 1 Providing a world-class indigenous educational experience In 2016 we embarked on a new strategic direction encapsulated in our 10-year strategic plan – Te Pae Tawhiti. Like our refreshed brand, it places tauira at the centre of everything we do. Staff throughout the organisation have embraced this new approach and are committed to the success of our tauira, our organisation and fulfilling the aspirations of our communities. Te Wānanga o Aotearoa is a world leader in indigenous education and we are dedicated to providing our tauira with unique, high-quality education in a kaupapa Māori environment and creating outcomes which enhance themselves, their whānau and society. A truly indigenous educational experience The popularity of the He Waka Hiringa Master of Applied Indigenous Knowledge programme continues to exceed expectations. The two-year applied masters degree, which was first offered in 2013, had more than 100 people on the waiting list in 2016.

The programme – which was initially offered only at the Mangakōtukutu Campus in Hamilton – was expanded to include the Māngere Campus in Auckland, which accepted its first intake of 23 tauira. Tauira and graduates of the programme are using their rangahau to make significant contributuions to their whānau, iwi and communities. Current He Waka Hiringa tauira, Te Atiwei Ririnui, whose rangahau is on raranga, had his work featured as a special edition Matariki 2016 postage stamp by NZ Post and his work has been recognised nationally through numerous exhibitions and weaving gatherings.

the inaugural recipient of the $5,000 Sir Hugh Kawharu Research Grant. The grant is presented to a full-time student of Māori descent with an interest in cultural heritage and will help Kayreen establish a knowledge exchange between Auckland Museum and Ngāi Tai. “The aim of my rangahau project is to uplift the healing and wellbeing of the community of Ngāi Tai Iwi by adding real value,” she says. Another masters tauira, Jane Caffery (Tainui, Ngāpuhi), received a prestigious Kupe Scholarship, which is awarded nationally to highly talented Māori and Pasifika people who have leadership expertise, and who will be role models of the teaching profession in their communities.

Te Atiwei (Ngāti Ranginui) says others often broach the subject of He Waka Hiringa alumnus and him being a male weaver, something artist Visesio Siasau took up an he doesn’t consider unusual. international residency in New York after being named the Paramount “Raranga was practised by men Award Winner in the 24th Wallace many generations ago. I’m just Art Awards in 2015. trying to maintain that knowledge so I don’t see this as unusual, but as Tauira on other programmes are history repeating itself.” also being recognised nationally for their rangahau. Fellow masters tauira, Kayreen Tapuke (Ngāi Tai, Whakatōhea, Maunga Kura Toi (Raranga) degree Taranaki, Ngāti Porou, Tuhoe), was tauira Cori Marsters won the

Image left: Kararaina Rangihau

Te Wānanga o Aotearoa — Te Pūrongo 2016

100+ people on He Waka Hiringa waiting list prestigious Ngā Manu Pīrere Award for emerging artists at the annual Te Waka Toi Awards.

the importance rangahau plays in our organisational vision of being a world-class indigenous educational organisation.

The award will assist his ongoing rangahau into pōtae taua (traditional Along with supporting tauira Māori head-dress) with the aim of success and whānau transformation educating and reviving the art. through education, Te Wānanga o Aotearoa must also provide Rangahau tauira Kararaina the opportunity for kaiako Rangihau (Tuhoe, Te Arawa) – who transformation through education. is also Kaiwhakahaere Ako at our Whirikoka Campus – presented Rangahau forms an important at the 40th International Society component of the tertiary education for Engineering Research and context and holds a deeper meaning Development Conference in Egypt. than the western notion of research. At the conference, she presented her rangahau on Māori traditions of oral storytelling and how that can be conveyed through e-learning. Her presentation was judged best presentation/best content at the conference. From research to rangahau Many kaimahi and past and current tauira are involved in rangahau which contributes important knowledge to our learning environments, organisational priorities and communities. The recent launch of our Rangahau Strategy recognises

The western notion of research is inappropriate in the context of Te Wānanga o Aotearoa as it does not capture the true essence of this activity. Rangahau is driven by takepū (principles) and uara (values) derived from a Māori world view. It features three phases: Te Kore – the realm of potential being (asking the question); Te Pō – the realm of becoming (investigation and enquiry to answer the question), and Te Ao Mārama – the realm of enlightenment (the answer to the question). It is Māori enquiry, not discovery. It is innovative, it validates Māori indigeneity and does not have to be

validated externally. Pouārahi Rangahau Lead Dr Shireen Maged says this new conceptual approach will ensure rangahau is culturally rich, culturally relevant and challenges the dominant western eurocentric perspective of how knowledge is constructed. The strategy has set an ambitious goal to have 70% of degree-level academic kaimahi and 50% of certificate and diploma kaiako research active within two years. Three symposia were held in 2016, which celebrated the theme Rangahau: Our Word, Our Way and were attended by more than 200 kaiako and kaimahi. Te Wānanga o Aotearoa had 164 individual rangahau plans established in 2016 and 734 rangahau outputs, including seven kaiako who presented at the Ngā Pae o te Māramatanga conference at The University of Auckland. In late 2016, Te Wānanga o Aotearoa received its first significant rangahau funding grant and in the process achieved one of the key goals of the newly-released rangahau strategic plan, Te Rautaki Rangahau 2015-2019.

Image left: Hariru Roa & Paraone Gloyne

Te Wānanga o Aotearoa — Annual Report 2016

Te Pae Tawhiti 2027 contains the aspirational aim of having all kaimahi conversant in te reo Māori and having a good understanding of tikanga Māori by 2027

The $60,000 funding from New Zealand’s Māori Centre of Research Excellence, Ngā Pae o te Māramatanga, is for the first of two planned flagship rangahau projects and focuses on te reo Māori. This ensures the organisation will be well placed to continue to provide te reo Māori education to growing numbers of tauira. Revitalising te reo Māori To further support kaimahi learning te reo Māori, each year Te Wānanga o Aotearoa hosts two kura reo, which are part of the Reo Ora strategy. The four-day full immersion programmes are aimed at kaimahi at all levels of understanding and competency of te reo Māori. In 2016 5,719 tauira were learning te reo Māori with Te Wānanga o Aotearoa, up from 5,319 in 2015.

A strategic partnership between Te Wānanga o Aotearoa and the (SIT) Southern Institute of Technology in Invercargill – which sees cultural, computing and te reo Māori programmes offered – has seen a significant increase in the number of tauira enrolling in te reo Māori programmes in that region. The continued growth and interest in Mahuru Māori provides further positive reinforcement for learning te reo Māori at Te Wānanga o Aotearoa. During Mahuru Māori, participants are challenged to speak as much te reo Māori as possible, both at work and out in the community. Some speak te reo Māori exclusively during the month, while others are encouraged to speak as much as they can. Mahuru Māori was the brainchild of Poutiaki Reo Paraone Gloyne and

has grown in popularity throughout the organisation and Aotearoa. As part of Te Wiki o te reo Māori 2016, Te Wānanga o Aotearoa hosted Irish scholar Aoife Finn. Aoife was completing her PhD in te reo Māori despite never having visited New Zealand or spoken te reo Māori. During her time in New Zealand she visited several Te Wānanga o Aotearoa campuses, took part in the Te Wiki o te reo Māori parade in Wellington and was interviewed by numerous media organisations, leading to further interest in learning the language.

Te Wānanga o Aotearoa — Annual Report 2016

Knowledge from the past informs the future

When it comes to haka composition, Te Ara Reo Māori kaiwhakahaere Ruki Tobin has dedicated his life to the lessons of his teachers. By using the teachings passed down to him by the late Dr Ngāpo Wehi, the 36-year-old is taking the Tira Rangahau road to share his knowledge to ensure that haka is seen as a form of learning rather than just "a performance". "When you dive into mōteatea, when you dive into waiata-ā-ringa, you see references to people and events. Haka is the same but in western institutions, they don't see that. Often when you say haka, people will say, oh it's a war challenge or they see a dance. That's what I want to change," he says. In changing the perception, Ruki hopes individuals will gain a greater appreciation of the messages delivered in haka. "Often you'll see patriots of Aotearoa overseas enjoying their time and people will say 'do a haka', and these people, who would not normally participate in any sort of kapa haka, are all of a sudden – 'ka mate ka mate'. Why? because they're not informed," he says. "I'm not here to point the finger, I'm just here to say 'hey that's a deficiency in learning. Let's fix that'." Although every person will have their own unique style, Ruki was tutored to approach haka in a very systematic way.

"The composition of a haka documents many things; it challenges, it inspires, it informs but it also unites people under one idea. That idea is what you're delivering in your haka," he says. "Koro said to me, 'The composition of haka is a holistic one, beginning with a thought." "He'd say that's the birthplace of all haka. From that thought there's wānanga because your words are the embodiment of your thoughts and feelings through sound." The next part, of course, is action. "Haka is the language of the body so from whakaaro, kupu, ā-ringa, we now have haka. All three of those need to be balanced before you can even attempt to do a haka." At the 2013 Te Matatini, Ruki's roopu Te Waka Huia, held wānanga over four consecutive weekends to present their haka on whakamomori. "Wānanga was a big part to give people the chance to have their say. That's what a haka is. It's an opportunity to document that and as a roopu, present it," he says. Since the launch of the Polynesian Festival in 1972 – which became the Aotearoa Traditional Māori Performing Arts festival and is now Te Matatini – audio and video documentation of every performance means researchers like Ruki can access almost five decades' worth of compositions to draw on and study. "It's planting that seed, that kākano into people," says Ruki. "Kapa haka has played a huge part in my life, it's helped define who I am but in saying that, there's still a lot more to learn."

Ruki Tobin

Te Wānanga o Aotearoa — Annual Report 2016

Te Pae Tawhiti Whāinga Rautaki 2 Strategic Objective 2 Ensuring sustainability through educational excellence It is only through providing worldclass indigenous educational opportunities which meet the needs of tauira and society that Te Wānanga o Aotearoa can ensure its long-term sustainability. Meeting these needs fulfils the overall aims of the organisation of Tauira Success and Whānau Transformation through Education and throughout 2016 further progress was made to ensure future generations have access to quality education at Te Wānanga o Aotearoa.

iNative, a support network of homework hubs to primarily help rangatahi Māori studying NCEA Level 2. Based on existing relationships with secondary schools, iNative hubs have been established in Kaikohe, South Auckland, Hamilton, Kawerau and Gisborne. iNative provides more than just a regular homework space. In addition to weekly and noho marae sessions, iNative also provides holistic support for young people and their families.

Rangatahi Te Wānanga o Aotearoa is the largest provider of Youth Guarantee. These programmes - in tourism, multimedia, performing arts, construction and infrastructure, retail and fitness – aim to give tauira an introduction to these industries and enable them to explore career options or continue on to further study. In 2017, our Youth Guarantee programme offerings will expand into the primary industries – including agriculture, aquaculture, horticulture and apiculture. During 2016, Te Wānanga o Aotearoa partnered with the Ministry of Education to create

In total, 254 tauira enrolled in iNative and achieved a 71% attendance average throughout the year. They benefitted from career and pathway planning and specific subject tuition within a fun and interactive environment. iNative also hosts whānau workshops throughout the year for families to learn more about NCEA and how to support young people with their school work, or find out about the opportunities and pathways available for them. More than 70 whānau members took part in the workshops. Professional development opportunities for kaimahi ensure they continually develop their skills to provide further benefits for tauira.

More than 100 kaimahi attended Disruptive by Nature, a day-long symposium held to inspire kaimahi who work with young people and to give them the confidence to challenge themselves and critique their practice. Keynote speaker Dr Jeff DuncanAndrade, from San Francisco State University, used the words of rapper, actor and poet Tupac Shakur to highlight his view that how people think about a problem frames the answer. One of his poems talks of a rose growing through concrete and Dr Duncan-Andrade says it encourages people not to look at the damaged petals, rather “look at its will to reach the sun”. He says it was important to understand that message and says many young people growing up in poverty suffer from complex posttraumatic stress disorder (PTSD) due to the ongoing trauma they face with little relief. “Unlike soldiers with PTSD, the kids don’t get to leave the toxic stress behind. Kids carry this toxic load but they are very good at masking it.”

Te Wānanga o Aotearoa — Te Pūrongo 2016

Review enables pathways to success Following a major review of programme offerings in 2016, Te Wānanga o Aotearoa is now offering more than 30 new and redeveloped programmes with a greater focus on primary industries, including horticulture, agriculture, aquaculture and apiculture. In total, 32 programmes were reviewed. Of these, 28 were accredited by NZQA – 15 were reviewed and redeveloped and 13 new qualifications developed – with the balance now part of the 2017 programme development plan. There is a new home-based te reo Māori programme at level 1 and a new diploma at level 5 for waka tauira wanting to progress from the current level 4 programme.

Responsive to communities Te Wānanga o Aotearoa is also focused on ensuring our delivery sites and campuses are maintained at a standard which contributes to tauira success and enhances our ability to assist communities to achieve their aspirations. In early 2016, the Kaikohe campus was relocated to a more central, modern and larger site within the town and was therefore able to offer an increased range of programmes and services. The new campus development reinforces the organisation’s commitment to Kaikohe and the Far North.

Te Taiurungi Dr Jim Mather and Te Taituarā John Whaanga visited in 2016, as part of an initiative to find out first-hand about the issues faced at the organisation’s more than 80 sites around New Zealand. Throughout the year, they undertook a series of visits to sites including Opōtiki, Whakatāne, Rāhui Pōkeka, Tokoroa, Te Kuiti, New Plymouth, Kaikohe, Kaitaia, Dunedin, Invercargill, Whanganui, Palmerston North, Hastings and Tauranga, and intend continuing their visits in 2017. The visits have highlighted the vast differences in the needs of the various sites.

It helps cater to increasing demand for programmes in the area and provides support for the increasing number of community and maraebased programmes being offered by Te Wānanga o Aotearoa.

Te Wānanga o Aotearoa will also offer courses in infrastructure works to diploma level, tiaki kuia, Further vocational training koroua for tauira who look after their elders and a new post-graduate programmes in the areas of sports, diploma in professional supervision. arts and tourism are now being offered in Kaikohe and the new campus hosts a weekly homework These programme offerings are centre for secondary school the result of ongoing consultation students. between Te Wānanga o Aotearoa, Kaikohe was one of the campuses industry and communities.

Te Wānanga o Aotearoa — Annual Report 2016

31,291 tauira in Level 1-2 8,113 Level 3+ 23,188 Youth Guarantee 678

Firm foundations It is equally important for Te Wānanga o Aotearoa to maintain financial sustainability. This continued focus of ensuring a strong surplus and solid financial performance will remain a key strategy for the organisation. Overall revenue increased by $2.9 million to $156,596 million in 2016 while Government funding increased by $1.0 million, largely due to an increase of 269 EFTS over 2015 in the provision of level 1 and 2 programmes. In 2016, the total economic impact of Te Wānanga o Aotearoa on the New Zealand economy was an estimated $359 million in output, $227 million in gross domestic product and our organisation is directly or indirectly responsible for the employment of 2,918 FTE. Ongoing refinement will ensure Te Wānanga o Aotearoa can sustain this strong financial performance into the future. The TEC has committed to a three-year approval of our investment plan, offering further support for our sound financial management.

The organisation continues to diversify its income through the Innovation Development Group, which has not only managed to bring alternative income streams but has also established partnerships and programmes that are well aligned with our vision and mission.

Te Wānanga o Aotearoa — Annual Report 2016

Sustainability built on tauira success

It's not every day you organise a giant knitted jersey to be sent to England for a Rugby World Cup event, or send an Antarctic snow machine to Nouméa to groom sand beaches, but that's exactly what freight forwarder Alex Gukalo does for a job. These are just a couple of the more unusual items his company Easy Freight has shipped, but thanks to the tools gained from completing a Certificate in Applied Small Business Growth and Development Level 5, deliveries remain on the increase. Alex arrived from Russia in 2005 with a background in logistics and while working for a shipping firm he had an idea to be his own boss. In 2010, he met customs broker Max Sherstobitov and the two partnered up their different but related fields and set off as an independent company with just five clients. "We were advertising through Google ads, going to different events and became members of the Auckland Chamber of Commerce, but we were lacking in managerial experience,” says Alex. “We'd been operating for a while and were ready to make another step and grow a bit. Then we saw in Newmarket, Te Wānanga o Aotearoa offering great courses that were exactly what we needed." Initially they signed up for the Certificate in Small Business Management before they were transferred to Applied Small Business Growth based on their experience. Even so, they found the few small business classes they did attend, valuable.

The vision the pair came up with in the early days is still their vision today. "Doing the course has helped a lot to understand processes. By using the knowledge we received from that time to now, growth profit-wise has doubled in digits, 24 to 30 percent growth per year." Through providing a world class indigenous education to tauira such as Alex and Max not only enables their success but also helps ensure the long term sustainability of Te Wānanga o Aotearoa. Alex and Max have now also employed three customer service employees to deal with more than 150 clients, mostly working in the smallto-medium import-export business sector. "People are different, experiences are different, (the) approach is different and the ways to get clients is different. Service is so important in New Zealand, you can't afford to lose a single client.” "Marketing was where we really got a lot out of the course. How to advertise properly and put yourself out there so people can see, that was the most valuable. How to show customers our best side."

Alex Gukalo: Easy Freight

Te Wānanga o Aotearoa — Annual Report 2016

Te Pae Tawhiti Whāinga Rautaki 3 Strategic Objective 3 Driving a culture of innovation Driving a culture of innovation begins by acknowledging the fact that good ideas can come from anywhere.

features a built-in android-based touchscreen tablet, offering the option to interact with the printers entirely in te reo Māori.

Supporting this has proved successful Further developments in technology and is considered a key part of our and digital learning in 2016 saw business as usual approach. two Te Wānanga o Aotearoa kaimahi recognised at the Distance Seeking innovation has seen new Education Association of New developments throughout Te Wānanga Zealand Awards with the DEANZ o Aotearoa during 2016 which have Award, which is designed to benefited the organisation, kaimahi promote and reward excellence and – most importantly – tauira and in e-learning, distance, open and their whānau. flexible learning. Te Pae Tawhiti 2027 requires Te Wānanga o Aotearoa to be “confident, audacious and constantly challenging ourselves, the status quo and leading the pace of change.” Embracing technology The ongoing support of te reo Māori throughout Te Wānanga o Aotearoa and aspiring to the goal of providing all tauira with a modern digital learning environment is exemplified by the adoption of bi-lingual printers which can be operated using te reo Māori and English. Te Wānanga o Aotearoa became the first organisation in the world to adopt the technology, which

The kaimahi, kaitiaki taonga Donna Dyet and graphic designer Hika Taewa, designed and developed a mobile app with the support of He Ātea Taonga (the resource development team) to support learners in the Level 4 carpentry course, which is part of the Certificate in Applied Technology offered by Te Wānanga o Aotearoa. The app provided breakthroughs for tauira, including easier access to relevant programme content, better learner engagement and an increased likelihood of educational success for tauira. The ongoing development of digital learning technologies has also seen the establishment of the first

Innovation Hub for Te Wānanga o Aotearoa at the Māngere campus. The hub was developed by Kane Milne, project manager innovation, and will initially target secondary school students to do photography, video production, music, coding and app development, 3D design, robotics and graphic design in an informal learning environment. By placing tauira success at the heart of everything we do at Te Wānanga o Aotearoa, innovative kaimahi have also been helping their wider communities. The Ōpōtiki Level 4 National Certificate in Computing tauira had a course requirement to create a website, but kaiako Sidney Thompson thought their talents were better used helping people in their community to create a genuine website rather than a fictitious website for their course curriculum. The computing tauira – all female and aged 30-50- advertised their services as web designers on an Ōpōtiki Community Facebook page aimed at cash-strapped local businesses. Nine businesses replied to the advertisement and the group chose the Ōpōtiki SPCA who until then did not have a website and instead used

Te Wānanga o Aotearoa — Te Pūrongo 2016

The research project that informed our rebrand was recognised with two national research awards at the biennial 2016 RAEAWARDS, which celebrate the top market research projects in New Zealand

Facebook to engage with the public. The group had to learn aspects of Javascript, Adobe Illustrator and how to modify the high-resolution images throughout the website using Photoshop. Different look, same kaupapa While remaining at the forefront of technological developments it is equally important for Te Wānanga o Aotearoa to retain its connection to its past. This was a key part of the awardwinning research and insights project to rebrand Te Wānanga o Aotearoa during 2016. The successful rebranding followed research showing many New Zealanders knew little about the organisation and what it offered.

Te Wānanga o Aotearoa were also named winners of the Innovation Award.

and support structures available to them to succeed – both in their mahi and away from the workplace.

Mana wahine

Tau Ora

To provide further development opportunities for the skills of kaimahi wāhine, the three wāhine Executive Directors of Te Wānanga o Aotearoa held a series of hui around the country to connect, inspire and empower all women within the organisation, not just those holding leadership aspirations.

A continued focus on the physical health of kaimahi is also a characteristic of life at Te Wānanga o Aotearoa and the award-winning Tau Ora programme continues to prove both popular and successful.

Tumutaumatua Leesah Murray, Tumuratonga Keri Milne-Ihimaera and Tumutahua Tracey Hook hosted the workshop series – titled Te Whare Māreikura – which focused on Māori women and leadership.

The research project that informed the rebrand was undertaken in partnership with TRA and the project was recognised with two national research awards at the biennial 2016 RAEAWARDS, which celebrate the top market research projects in New Zealand.

The purpose of the series – a first for Te Wānanga o Aotearoa and which attracted more than 200 registrations – was to create a whare where women within the organisation could consider their leadership journey and contribution within a safe, nurturing, supportive and reciprocal environment.

As well as collecting the Gold Award in the Community and Social Services category, TRA and

It provided an opportunity to create a network of empowered women who are clear about the pathways

In 2016, Tau Ora won the supreme award for Health, Safety and Wellbeing at the Human Resources Institute of New Zealand awards held in Auckland. The accolade adds to the ongoing recognition for the health and wellness programme that goes back to 2007. Wellness advisor Tuihana Ohia says the programme was judged ahead of entrants from numerous health organisations and multinational corporations. She says there are plans to spread the Tau Ora message to other organisations, commercial entities, communities and marae along with seeking opportunities overseas for the programme.

Te Wānanga o Aotearoa — Annual Report 2016

Finding a future through Innovation Hub

Certified IT-geek and a self-confessed tutu, Kane Milne is in the development stages of implementing the first Innovation Hub for Te Wānanga o Aotearoa. The first Hub in Māngere will initially target secondary school students to do photography, video production, music, coding and app development, 3D design, robotics, and graphic design in an informal learning environment. It is hoped in time, it will also open up opportunities for current tauira and kaimahi to participate as well. The first hub, a Proof of Concept, will be based at the Māngere Campus with plans for additional hubs at other campuses. Kane says he sees this as a way to engage in an educational paradigm changer for what the future looks like, by getting future members exploring their creative passions and critical thinking. "These hubs are about engaging rangatahi, increasing digital fluency and developing our critical creativity and capacity for innovation with technology," he says. "With this type of design-based thinking, it's also important to remember our indigenous capacity and expertise. With aroha and whānaungatanga at its core, we are the designers, inventors, entrepreneurs, scientists, artists and leaders." The 43-year-old's foray into this field of work is life-long. Growing up he felt frustrated by the lack of inspiration in his classrooms and rebelled.

"First of all I'm a tutu, I couldn't wait to start pulling things apart. Secondly, I've always had a hunger for learning and that's what I want our rangatahi to discover, if they haven't already." With an aptitude for computers, Kane worked in IT for a number of South Auckland schools. Then a conversation to start a free after-school creative space at Kia Aroha College turned into Clubhouse 274 – New Zealand's first computer clubhouse-in 2006. The non-profit community collaboration made a space for tamariki to get into creative technologies attracting lots of media attention for its positive outcomes. This included fundraising to construct their own studio. "It was built on the back of our kids and their whānau to create success without leaving their whakapapa behind," says Kane. "Computers were one part but I wanted to put them in charge to learn concepts such as the value of hard work. When kids asked me how to do something, I'd be honest and say 'I don't know, let’s find out'. What they'd see as innovation, is actually themselves." The successful model inspired 10 more clubs in New Zealand, Hawaii and Fiji, with the Wānanga now getting ready to adopt a similar approach. "I'm really excited about what may come by injecting our identity into the space. There's an undercurrent of people across the country understanding and working in ways to empower our whānau," Kane says. "There's a real power in that."

Te Wānanga o Aotearoa — Annual Report 2016

Te Pae Tawhiti Whāinga Rautaki 4 Strategic Objective 4 Partnering for success For Te Wānanga o Aotearoa, partnering means understanding the needs of our stakeholders and working to meet those needs through the provision of world-class indigenous tertiary education.

people back to their tupuna awa, marae and tupuna maunga.” She says the club recommended other whānau members enrol on the Te Wānanga o Aotearoa Waka Ama programme.

It also means tauira are actively engaged in their journey towards tauira success, leading to improved educational outcomes.

“We want our whānau to go through the course as we know that it delivers a high standard of paddlers and awareness from the tikanga you learn.”

This approach was evident when Karāpiro Waka Ama was formed by Lake Karāpiro iwi Ngāti Koroki-Kahukura. The club has the aim of attracting iwi members back to the area – at least temporarily – and recognises waka ama as a way of achieving that. Te Wānanga o Aotearoa runs extensive waka ama programmes and the club was established after iwi members successfully completed the Level 4 Waka Ama Programme, run at Lake Karāpiro. Iwi member Te Hiiri Taute completed the programme and says it provided more than simply learning about how to paddle a waka. “There were a number of bonuses, one of those bonuses was that it was taught here at Lake Karāpiro and it attracted our whānau from everywhere. We are starting this waka ama club to bring generations of our

By working together to meet community needs, Te Wānanga o Aotearoa graduates are then able to be employed to fulfil those needs. Graduates in demand In Rotorua, He Korowai Ākonga – Bachelor of Education (Primary Teaching) – graduate Te Wehi Preston says principals at many schools in Rotorua – where Māori make up about 40 percent of the population – are keen to employ Wānanga graduates. “The proof is in the pudding. Wānanga graduates are highly sought after here in Rotorua. There are lots of Wānanga graduates working here.” The appeal, he says, comes from the way the programme embraces Māori philosophies, principles and mātauranga Māori to produce culturally responsive graduates.

Collaborating with communities This ability to provide culturallyresponsive graduates has proved beneficial during the ongoing partnership between Te Wānanga o Aotearoa and Corrections. This highly successful collaboration focuses on two key areas of benefit – providing tauira with the skills required to become Corrections officers and delivering important cultural, literacy and numeracy education to inmates. In 2016, the first graduates of the 36-week Taumata Raukura Certificate in Career Preparation (Corrections) programme secured places at the Corrections training college at Rimutaka Prison in Wellington. The programme was developed by the Department of Corrections in collaboration with Te Wānanga o Aotearoa to provide an understanding about the skills required and the recruitment process involved to work in one of 19 correctional facilities nationwide. Corrections Principal Recruitment Adviser Bridget Cooksley says the course would only succeed if students came out with the appropriate skills and experiences to prepare them for the roles and for the recruitment process. “From our perspective we are very happy to see this

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te Wānanga o Aotearoa is committed to assisting those whose needs have not been met by the mainstream education system and the partnership with Corrections is an opportunity to provide long-lasting benefits to individual inmates, their whānau, communities and ultimately, society

programme being delivered and for graduates of the course now graduating as Corrections officers. That is great news.”

since 2009, sees Te Wānanga o Aotearoa delivering the Taumata Raukura Certificate in Career Preparation (Police) programme.

Also in 2016, graduates of a Te Wānanga o Aotearoa literacy and numeracy programme were able to use their newfound reading and writing skills to continue further study. The programme not only improves literacy and numeracy among mainstream prison inmates but could also lead to a significant reduction in reoffending.

This programme continues to contribute to increasing diversity within New Zealand Police and has led to an increase in the number of Māori police officers.

Te Wānanga o Aotearoa is delivering the literacy and numeracy programme across all of New Zealand’s 16 public prisons. Since its launch two years ago, 884 prisoners have graduated from the programme. The Intensive Literacy and Numeracy Service (ILNS) programme followed the successful Te Waharoa agreement between the two organisations. This agreement focused on slashing Māori reoffending rates via a specialised tikanga Māori programme for inmates in Corrections’ Māori focus units. The programme involves 40 improvement workshops and sees inmates undertake an average of 100 hours learning time over a five to 20-week period. Another successful partnership, which has been in operation

We are also continuing our involvement with the popular television programme Mārae DIY, which sees major renovation projects undertaken. Both kaimahi and tauira have been involved in these projects, which provide excellent opportunities for whānau to reconnect with their marae and for Te Wānanga o Aotearoa to make visible and significant contribution to our communities.

Te Wānanga o Aotearoa is working closely with other tertiary education providers in the South Auckland area to ensure the needs of this significantly growing population are being met. Research shows this is an area of considerable educational need and educational disparity. The most effective way of achieving successful outcomes for all parties is by being clear and honest about our strategic intentions. In 2016, Te Wānanga o Aotearoa developed a partnership with Auckland Council around the Matariki Festival and Tāmaki Herenga Waka which produced several strategic outcomes, including: a stronger brand presence across Auckland; improved working relationship with council; increased enrolments and greater community engagement across the region.

Meeting stakeholder needs These examples show how Te Wānanga o Aotearoa is intent on delivering what stakeholders want and it is likely this will become more important in the years ahead as we work closer with industry and communities. We believe the future for tertiary education is a connected one and it will become increasingly incumbent on us to deliver what stakeholders want and to increase life and work opportuities through those programmes.

We have also established a partnership with Waka Ama NZ, which enables us to support and engage with the waka ama community, including at their three key events during the year, the National Waka Ama Sprint Championships, the National Secondary Schools Champs and the Long Distance Nationals. It also provides the opportunity to be involved in growing and developing waka ama in the cultural sense and as a competitive sport.

Te Wānanga o Aotearoa — Annual Report 2016

Partnerships prove their worth

For more than 30 years, Te Hiiri Taute pined to return from Australia to live once again near her ancestral Waikato River under the shadow of Maungatautari. So after working in Sydney and raising the youngest of her three children to the age of 21, the proud Ngāti Koroki Kahukura mother successfully applied for an administration role with her iwi (two years ago) and wasted no time in throwing herself into developing initiatives to bring other whānau members home. In 2015, Te Hiiri enrolled in the Te Wānanga o Aotearoa Level 4 Waka Ama programme, which is delivered at Lake Karāpiro. “The programme was awesome,” she says.“It wasn't just about learning how to paddle in a waka, there were a number of bonuses. One of those bonuses was that it was taught here at Lake Karāpiro and it attracted our whānau from everywhere.” Another bonus was creating their own waka ama club, Karāpiro Waka Ama, as well as Waikato-Tainui providing them with two six-man waka ama. "We are starting this waka ama club to bring generations of our people back to their tupuna awa, marae and tupuna maunga and then we will open it to the rest of them."

The success of the Ngāti Koroki-Kahukura venture supports the partnership between Te Wānanga o Aotearoa and Waka Ama NZ, which was established in 2016. This partnership provides opportunities for Te Wānanga o Aotearoa to support and engage with the growing waka ama community. This engagement includes Waka Ama NZ’s three key events during the year, the National Waka Ama Sprint Championships, the National Secondary Schools Champs and the Long Distance Nationals. Waka Ama NZ has more than 5,000 registered paddlers and waka ama is the fastest-growing water sport in Aotearoa, with a 70% growth in membership in the last three years. Te Wānanga o Aotearoa Tumukahuroa Hone Paul says waka ama was “well and truly part of the whakapapa of Te Wānanga o Aotearoa.” “Since the first Te Whakangunguru Kaihoe Waka Ama class in 2009, Waka Ama has grown to become a popular and important course,” says Hone. “More than 1,700 tauira across the country have successfully completed a waka ama qualification with Te Wānanga o Aotearoa."

Te Hiiri Taute

Te Wānanga o Aotearoa — Te Pūrongo 2016

49 Te Huanganui > Outcomes Framework 52 Ngā ki taurangi > Statement of Service Performance 54 Ahurea > Cultural 58 Hapori > Community 62 Arumoni > Commercial 66 Ngā Mahinga Here o te Mahere Haumītanga › Investment Plan Performance Commitments 73 Te momo tauira me ngā ahunga › Profile and Trends 74 Te ōritetanga › Equal Opportunities

Te ine whakaritenga 47

Te Wānanga o Aotearoa — Annual Report 2016

Te Huanganui is Te Wānanga o Aotearoa Outcomes Framework that sets out the pathway to achieve our vision and mission. The name Te Huanganui refers to the wider benefits or advantages that result from our work, but more literally, the fruits of our labour. Te Huanganui encapsulates the unique contribution of Te Wānanga o Aotearoa to tertiary education and Aotearoa and sets out the indicators we will use to measure our performance. At a societal level, the three outcomes of Te Huanganui: Ahurea (cultural); Hapori (community) and Arumoni (commercial), reflect a holistic approach to transformation within a mātauranga Māori context. During 2016, Te Huanganui was reviewed to incorporate our new strategic direction – Te Pae Tawhiti 2027. The revised framework was negotiated with, and approved by, the Tertiary Education Commission (TEC) and published in Te Wānanga o Aotearoa Investment Plan 2017-19. The revised framework will be used for reporting from 2017. The 2016 education performance results are interim as they are subject to validation by the (TEC) following submission of the final single data return in April 2017. The TEC publishes the actual results on their website annually and the 2015 results in this report have been updated accordingly.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te Huanganui Outcomes Framework

The following table shows a high-level diagram of Te Huanganui - Outcomes Framework as approved in the 2015–2017 Investment Plan.

Ngā putanga › Our outcomes What we seek to influence or contribute to

Ahurea › Cultural Mātauranga Māori is advanced

Hapori › Community Social wellbeing for all New Zealanders

Arumoni › Commercial Economic wellbeing for all New Zealanders

Ngā pānga › Our impacts The difference we want to make

›› All New Zealanders are motivated to engage with mātauranga Māori

›› Graduates have highly valued, relevant skills

›› Graduates are sought after by the industries they are qualified in

›› Graduates are secure and confident in mātauranga Māori ›› Rangahau advances mātauranga Māori

Ngā hua › Our outputs What we will deliver

›› Te Wānanga o Aotearoa delivers high-quality and relevant mātauranga Māori qualifications ›› Te Wānanga o Aotearoa rangahau contributes to the store of knowledge

Ngā mahi › Our inputs What we will input

›› Graduates make positive contributions to their iwi, hapū or community ›› Relationships with stakeholders return benefits for all parties

›› Te Wānanga o Aotearoa is operating in a sustainable manner

›› Te Wānanga o Aotearoa delivers educational excellence

›› Te Wānanga o Aotearoa provides clear vocational pathways

›› Te Wānanga o Aotearoa serves our diverse communities

›› Te Wānanga o Aotearoa meets agreed financial ratios

›› Enriched tauira experiences ›› High-quality Ako Wānanga teaching capability and support ›› High-quality mix of provision and educational pathways ›› Effective leadership ›› Strong reputation and brand ›› Effective communication ›› Innovation and alternative revenue streams

Te Wānanga o Aotearoa — Annual Report 2016

Outcomes Framework mix of provision The following table shows the discipline mix of provision for Te Wānanga o Aotearoa outcomes, in 2016: • • •

Outcome Arumoni – Commercial consists of 38% of the provision Outcome Hapori – Community consists of 12% of the provision Outcome Ahurea – Cultural makes up most of the provision at 50%

The following table shows EFTS provision for each outcome group for the 2015-2017 Investment Plan period. The EFTS totals by outcome grouping may differ due to rounding.

Outcome Group

2015 Planned

2015 Actual

2016 Planned

2016 Actual

Arumoni – Commercial

8,071

8,285

7,993

7,708

Hapori – Community

2,306

2,338

2,311

2,475

Ahurea – Cultural

9,656

9,362

9,710

10,059

20,033

19,985

20,013

20,242

Total

Te Wānanga o Aotearoa — Te Pūrongo 2016

The following table shows EFTS provision for each discipline within each outcome group for the 2015-2017 Investment Plan period. The EFTS totals by outcome grouping may differ due to rounding.

Outcome Group

2015 Planned

2015 Actual

2016 Planned

2016 Actual

Arumoni – Commercial

8,071

8,285

7,993

7,708

Te Arawhānui (business)

2,881

2,963

2,673

2,944

Te Arawhānui (computing)

2,609

2,212

2,572

1,850

384

336

383

400

Te Hiringa (health and social services/youth work)

1,010

1,111

1,068

1,098

Umanga (skills, trades and vocations)

1,187

1,663

1,297

1,415

Hapori – Community

2,306

2,338

2,311

2,475

Tūāpapa (learning to learn /ESOL)

1,500

1,493

1,500

1,608

806

845

811

868

Ahurea – Cultural

9,656

9,362

9,710

10,059

Angitu (Māori and indigenous people's development)

3,507

2,834

3,632

3,143

Te Reo Rangatira (Māori language)

4,707

5,179

4,708

5,497

Toi (Māori and indigenous arts)

1,442

1,349

1,370

1,418

20,033

19,985

20,014

20,242

Te Hiringa (education)

Hauora (health and fitness)

Total

Arumoni EFTS were 285 EFTS down against the plan with a 722 EFT decrease in computing EFTS. This was partially met by an increase in business (271 EFTS increase) and skills, trades and vocational courses (118 EFTS increase). The shifts in Arumoni are part of a planned move away from low-level computing courses as new vocational qualification pathways are introduced. There was a 164 EFT increase in Hapori EFTS in 2016, with an increase in both Tūāpapa (108 EFTS) and Hauora (57 EFTS). There was a significant increase in Ahurea EFTS in 2016 with a 489 EFT decrease in Angitu (as we exit out of Mahi Ora) well exceeded by an increase in Te Reo Rangatira (789 EFTS) and Toi (48 EFTS).

Te Wānanga o Aotearoa — Annual Report 2016

Ngā kī taurangi Statement of Service Performance Te Wānanga o Aotearoa delivered 20,242 EFTS in 2016, that is 31,291 tauira who completed 3,136 qualifications with us in homes and communities across Aotearoa. It was an eventful year for our organisation; a new strategy was developed, a new Investment Plan approved and a multi-million dollar bid for Level 1 and 2 funding was successfully tendered. During the year we signed major sponsorship agreements and made our presence known at the Waka Ama Nationals, Polyfest and Secondary Schools Kapa Haka. We also formed new partnerships and furthered relationships with iwi, business and other tertiary providers nationwide. At a national level, we worked with the TEC and other government departments to quantify the value of tertiary education beyond economic outcomes and are working on finalising these outcomes as formal measures for the wānanga sector. We also contributed to the development of TEC-led initiatives to provide better information to learners. The tertiary environment continued to shift and change as the TEC progressed the work programme to refine the ‘Investment Approach’. In addition to ongoing changes to funding conditions, there were changes to the methodology for calculating education performance indicators and Level 1 and 2

funding moved from being 60% allocated through the competitive process to being fully allocated through a competitive process. As we review our performance for 2016, it is important not to underestimate the scale of change that Te Wānanga o Aotearoa has undergone over the last two years. The organisationwide change programme – Te Raumairanga – led to the creation of a new leadership team and uepū structure, home-based learning programmes were fully integrated back into the organisation and we transitioned from six disparate regional rohe to three takiwā. Despite ongoing challenges, both internal and external, Te Wānanga o Aotearoa continues to have a strong underlying financial and educational performance. At the close of 2016, this was recognised by a three-year Investment Plan approval – a strong indicator of confidence by the TEC. As we embark on our new strategic direction, placing tauira success at the heart of everything we do, Te Wānanga o Aotearoa is well positioned to meet the future and realise the next phase of whānau transformation through education.

Te Wānanga o Aotearoa — Annual Report 2016

Ahurea (Cultural) Advancing mātauranga Māori Ahurea represents the ideal of advancing mātauranga Māori to provide the foundation for Māori to succeed as Māori. Advancing mātauranga Māori includes the generation and dissemination of contemporary knowledge of our language, culture and heritage within a te ao Māori worldview. The following outcome, impact and output indicators show how we measure progress towards advancing mātauranga Māori.

Ngā putanga (Outcome) Performance Indicators Mātauranga Māori is advanced

Proportion of Māori who can speak some te reo Māori1 Proportion of the population in Aotearoa New Zealand who can hold a conversation in te reo Māori 2

Trend

›

Target 2030

Current

40%

21%

›

With thousands of tauira every year taking up the challenge to learn about Māori language and culture, Te Wānanga o Aotearoa is in a unique position to play a lead role in the revitalisation of te reo Māori. As an organisation we have an ambitious goal for all kaimahi to be conversant in te reo Māori by 2027 and we develop and implement numerous initiatives that encourage New Zealanders to kōrero Māori all year round. Our expectation is that we will have a tangible impact on the proportion of the population who can speak Māori and this indicator will continue to feature in our refined Outcomes Framework.

1 2

NZ Census 2013 – Statistics New Zealand ibid

Te Wānanga o Aotearoa — Te Pūrongo 2016

Ngā pānga (Impacts) Performance Indicators

2014 Actual

2015 Actual

2016 Target

2016 Actual

All New Zealanders are motivated to engage with mātauranga Māori

Successful completion rate for mātauranga Māori qualifications

69%

72%

80%

72%

Graduates are secure and confident in mātauranga Māori

Proportion of tauira who confirm an increased understanding of mātauranga Māori

77%

73%

86%

71% 3

Rangahau advances mātauranga Māori

Number of rangahau outputs produced for iwi, hapū or communities by graduates enrolled in He Waka Hiringa qualification

The qualification completion rate for mātauranga Māori qualifications remained steady at 72% in 2016. Although it missed target, we expect this result to improve as we introduce new and refreshed mātauranga Māori programmes following the Targeted Review of Qualifications. The Graduate Survey (formerly known as the Tauira Destination Survey) is conducted annually to better understand tauira outcomes following study with us. In 2016, survey changes led to 934 fewer responses (3,852 in 2015 and 2,918 in 2016) and this may have had an effect, with the result for the proportion of tauira who reported increased understanding of mātauranga Māori falling well short of target at 71%. Although this result is disappointing, since completing a qualification with Te Wānanga o Aotearoa, 67% report that their use of te reo has increased and 53% report feeling more connected with their tūrangawaewae. He Waka Hiringa is Te Wānanga o Aotearoa flagship masters programme. As part of the qualification, tauira must complete a rangahau project that benefits hapū, iwi or the community. A strategic decision was made to stage the growth of He Waka Hiringa with the initial cohort, based in Tainui, on a two-year enrolment cycle. The timing of the Tainui cohort meant that there were zero rangahau outputs in 2016. Due to strong demand, a new cohort has been introduced in Tāmaki, which means that Tainui graduate outputs will be recorded in 2017 and Tāmaki graduate outputs will be recorded from 2018.

See ‘A note about Surveys’ on page 72 of this report

Te Wānanga o Aotearoa — Annual Report 2016

Ngā hua (Outputs) Performance Indicators Te Wānanga o Aotearoa delivers high-quality and relevant mātauranga Māori qualifications

2014 Actual

2015 Actual

2016 Target

2016 Actual

External Evaluation and Review finding for capability in self-assessment

Confident

External Evaluation and Review finding for capability in educational performance

Highly confident

Confident

Highly confident

92%

90%

95%

90% 4

Number of rangahau outputs

363

310

220

734

Number of EFTS enrolled in He Waka Hiringa qualification

Proportion of tauira who are satisfied or highly satisfied with their experience at Te Wānanga o Aotearoa Te Wānanga o Aotearoa rangahau contributes to the store of knowledge

The External Evaluation and Review (EER) targets were met and exceeded at the last review in 2013, with Te Wānanga o Aotearoa rated ‘confident’ for capability in self-assessment and ‘highly confident’ for capability in educational performance. The next EER is scheduled for September 2017, when we will be one of the first organisations to be assessed against the revised Mātauranga Māori Evaluative Quality Assurance Framework – Te Hono o Te Kahurangi. Tauira satisfaction is monitored through the annual Graduate Survey. Tauira satisfaction remained strong and steady at 90% in 2016. Although the result missed target, survey changes have meant that it now provides us with a more honest appraisal of where we can improve. Following feedback provided in the 2016 survey, we will look to make significant improvements to enrolment processes and communication with tauira. In response to other feedback, we will also seek to be more environmentally friendly in how we produce resources and handle waste on our campuses. Our efforts to advance mātauranga Māori are underpinned by rangahau. In 2015, Te Tira Rangahau (rangahau team) was established and in 2016 the Rangahau Strategy was approved and efforts to increase rangahau activity started to gain traction, with the rangahau target exceeded by 514 outputs.

See ‘A note about surveys’ on page 72

Te Wānanga o Aotearoa — Te Pūrongo 2016

This upswing in rangahau was mainly due to effective planning and coordination of rangahau activity across all three takiwā. The positive variance is also due to a deliberate strategy to move from the traditional concept of research to rangahau. As part of this, ‘rangahau outputs’ have been broadened to include all ‘rangahau contributions’. There were many opportunities for rangahau contributions throughout 2016, with workshops, writing retreats and conferences held across the takiwā. Te Tira Rangahau supported the development of Individual Research Plans, published a journal (Rangahau Our People, Our Voices, Our Word, Our Way), several staff presented at the Ngā Pae o te Māramatanga (Māori Centre of Research Excellence) conference and funding was secured for a flagship rangahau project on te reo Māori. He Waka Hiringa has also gone from strength to strength, with strong demand leading to the introduction of a new cohort in Tāmaki and the target exceeded by 21 EFTS.

Cost of Service Statement for Ahurea For the year ending 31 December 2016 Group Actual 2015 $'000

Group Budget 2016 $'000

Group Actual 2016 $'000

Parent Actual 2015 $'000

Parent Actual 2016 $'000

Revenue

68,489

72,320

75,922

68,805

73,736

Expenditure

60,300

69,204

69,562

60,500

67,328

8,189

3,116

6,360

8,305

6,408

Operating net cost of services

At group level there was a significant increase in Ahurea revenue in 2016 (largely due to the increase in Te Reo Rangatira EFTS) and this brought with it increased kaimahi costs that resulted in a net cost of service of $6.4 million. The variance between the budget and actual figures is outlined in the Cost of Service Statement for all outputs.

Te Wānanga o Aotearoa — Annual Report 2016

Hapori (Community) Social wellbeing for all New Zealanders Hapori reflects our desire to improve social wellbeing resulting in a more equitable society where all New Zealanders have the opportunity to succeed. We believe that we can achieve this by serving New Zealand’s diverse communities and ensuring that barriers to education are reduced. Social wellbeing can also be realised by ensuring our tauira have skills that are relevant to them and for the communities in which they live. The following outcome, impact and output indicators show how we measure progress towards achieving social wellbeing for all New Zealanders.

Ngā putanga (Outcomes) Performance Indicators Social wellbeing for all New Zealanders

Trend

Proportion of Māori satisfied with life overall 5

›

Proportion of New Zealanders satisfied with life overall 2

›

Target 2030

Current

88%

80%

88%

80%

A good indicator of the long-term impact of whānau transformation is life satisfaction. Through our unique approach we ensure that our graduates don’t just have skills – they know who they are, where they have come from and where they are going to. Their social wellbeing matters to us. As part of our mission of tauira success, we believe that new strategic initiatives, such as those to eliminate barriers to success, will have a positive impact on life satisfaction for our tauira and their whānau and this will be reflected in the refined framework.

2012 NZ social indicators He Kete Tatauranga – Statistics New Zealand

Te Wānanga o Aotearoa — Te Pūrongo 2016

Ngā pānga (Impacts) Performance Indicators

2014 Actual

2015 Actual

2016 Target

2016 Actual

Qualification completion rates

75%

73%

82%

72%

Progression rate for tauira at NQF Level 1-2

50%

47%

43%

49%

Proportion of tauira retained in study

76%

75%

77%

73%

Graduates make a positive contribution to their iwi, hapū or community

Proportion of tauira who confirm that they are using their knowledge and skills within their whānau, hapū, iwi or community

79%

80%

87% 6

Relationships with stakeholders return benefits for all parties

Stakeholders express satisfaction with Te Wānanga o Aotearoa

not measured

76%

90%

80%7

Graduates have highlyvalued relevant skills

The education performance indicators for ‘graduates have highly-valued relevant skills’ were mixed in 2016. The qualifications completion and retention rate missed target and the progression rate for tauira studying at Level 1-2 exceeded target. A major focus for 2016 was the integration of home-based learning student management practices and processes. This, along with the introduction of new programme pathways, changes to enrolment practices and kaiako capability development initiatives are expected to lift education performance in 2017. At 87%, the Graduate Survey returned a strong result for the proportion of tauira who are using their newly acquired skills and knowledge with others, exceeding target by 7%. This was an 8% increase on the 2015 result and reflects ongoing efforts to ensure qualifications are relevant in the ‘real world’. Stakeholder satisfaction, measured through the annual Stakeholder Survey, was 80% in 2016. Although this was a 4% improvement on the 2015 result, the target was missed. Te Pae Tawhiti 2027, strategic objective four is ‘partnering for success’. As part of this we will look to deepen our relationships with iwi and collaborate with communities and industry to co-create solutions that meet their needs. A key priority for 2017 will be working with South Auckland stakeholders to meet demand with programmes targeted to improve outcomes for Māori and Pasifika tauira and their whānau in that community. 6 7

See ‘A note about surveys’ on page 72 ibid

Te Wānanga o Aotearoa — Annual Report 2016

Ngā hua (Outputs) Performance Indicators Te Wānanga o Aotearoa delivers educational excellence

Te Wānanga o Aotearoa serves our diverse communities

2014 Actual

2015 Actual

2016 Target

2016 Actual

External Evaluation and Review finding for capability in self-assessment

Confident

External Evaluation and Review finding for capability in educational performance

Highly confident

Confident

Highly confident

Proportion of tauira who are satisfied or highly satisfied with their experience at Te Wānanga o Aotearoa

92%

90%

95%

90% 8

Proportion of tauira who are Māori

54%

55%

50%

55%

Proportion of tauira who are Pasifika

11%

10%

11%

The EER targets were met and exceeded at the last review in 2013, with Te Wānanga o Aotearoa rated ‘confident’ for capability in self-assessment and ‘highly confident’ for capability in educational performance. The next EER is scheduled for September 2017, when we will be one of the first organisations to be assessed against the revised Mātauranga Māori Evaluative Quality Assurance Framework – Te Hono o Te Kahurangi. Tauira satisfaction is monitored through the annual Graduate Survey. Tauira satisfaction remained strong and steady at 90% in 2016. Although the result missed target, survey changes have meant that it now provides us with a more honest appraisal of where we can improve. Following feedback provided in the 2016 survey we will look to make significant improvements to enrolment processes and communication with tauira. In response to other feedback, we will also seek to be more environmentally friendly in how we produce resources and handle waste on our campuses. At 55%, Te Wānanga o Aotearoa continues to attract a large number of tauira Māori. This is the largest cohort of tauira Māori of any tertiary institution, exceeding the target by 5%. Pasifika tauira also remained steady and exceeded target at 11%.

See ‘A note about surveys’ on page 72

Te Wānanga o Aotearoa — Te Pūrongo 2016

Cost of Service Statement for Hapori For the year ending 31 December 2016 Group Actual 2015 $'000

Group Budget 2016 $'000

Group Actual 2016 $'000

Parent Actual 2015 $'000

Parent Actual 2016 $'000

Revenue

39,263

19,322

33,482

38,527

35,041

Expenditure

40,712

20,264

35,414

39,564

37,353

(1,449)

(942)

(1,932)

(1,037)

(2,312)

Operating net cost of services

At group level, Hapori EFTS increased in 2016, however shifts in the mix of provision meant that less revenue was earned from the EFTS mix. While expenditure also decreased, it still exceeded income, resulting in a net cost of service of -$1.9 million. The variance between the budget and actual figures is outlined in the Cost of Service Statement for all outputs.

Te Wānanga o Aotearoa — Annual Report 2016

Arumoni (Commercial) Economic wellbeing for all New Zealanders Arumoni recognises the interconnectedness between mātauranga Māori, the strength of communities and economic wellbeing. It is the responsibility we have to add value to the Government’s investment in our organisation as well as the economic advancement of our tauira, their whānau and Aotearoa. The following outcome, impact and output indicators show how we measure progress towards achieving economic wellbeing for all New Zealanders.

Ngā putanga (Outcome) Performance Indicators Economic wellbeing for all New Zealanders

Trend

The difference between the weekly income for Māori and non-Māori9

›

The Gini Coefficient for Aotearoa New Zealand improves10

›

Target 2030

Current

($50)

($166)

Improvement

.33

From programmes for at-risk youth to small business owners, we provide our tauira with the keys to succeed culturally, socially and economically. Te Pae Tawhiti includes strategic initiatives that aim to reduce inequality so that all New Zealanders have adequate income and we have reflected this in the refined framework.

NZ Income Survey: June 2015 quarter – Statistics New Zealand The Gini coefficient represents income distribution, and is the most commonly used measure of inequality – data source is OECD Income Distribution Database

Te Wānanga o Aotearoa — Te Pūrongo 2016

Ngā pānga (Impacts) Performance Indicators Graduates are sought after by industry

Te Wānanga o Aotearoa has operated in a sustainable manner

2014 Actual

2015 Actual

2016 Target

2016 Actual

Proportion of graduates who gain employment or additional responsibility in employment

60%

62%

65%

80% 11

Qualification completion rate

75%

73%

82%

72%

Proportion of tauira retained in study

76%

75%

77%

73%

Risk rating under TEC Financial Monitoring Framework

Low

Confident

Highly confident

Confident

Highly confident

External Evaluation and Review finding for capability in self-assessment External Evaluation and Review finding for capability in educational performance

As part of the changes to the Graduate Survey outlined earlier in this report, the methodology for the proportion of graduates who gained employment or additional responsibility in employment changed in 2016 to only include respondents that were unemployed and seeking work (this is an important distinction due to our graduate profile including a high proportion of retired tauira). This change effectively reset the baseline for this measure, confirming positive outcomes for 80% of tauira who were seeking employment. Although a large proportion of our programmes are not intended to deliver direct employment outcomes, the curriculum redesign has refined qualifications pathways and we expect this measure to improve as new programmes are introduced over the next three years. The qualifications completion and retention rates missed target in 2016. A major focus for 2016 was the integration of home-based learning student management practices and processes. This, along with the introduction of new programme pathways, changes to enrolment practices and kaiako capability development initiatives, is expected to lift education performance in 2017. Te Wānanga o Aotearoa continues to be rated ‘low-risk’ against the TEC Financial Monitoring Framework. The External Evaluation and Review (EER) targets were met and exceeded at the last review in 2013 with Te Wānanga o Aotearoa rated ‘confident’ for capability in self-assessment and ‘highly confident’ for capability in educational performance. The next EER is scheduled for September 2017, when we will be one of the first organisations to be assessed against the revised Mātauranga Māori Evaluative Quality Assurance Framework – Te Hono o Te Kahurangi.

See ‘A note about surveys’ on page 72

Te Wānanga o Aotearoa — Annual Report 2016

Ngā hua (Outputs) Performance Indicators Te Wānanga o Aotearoa provides clear vocational pathways

Mix of provision for vocational qualifications matches the Investment Plan agreement

Te Wānanga o Aotearoa meets agreed financial ratios

Operating surplus/deficit

2014 Actual

2015 Actual

104%

97%

3.1%

2016 Target

2016 Actual

95-107%

1-3%

96%

1.7%

Due to shifts during the Investment Plan period and the complexity of delivering a national network of provision that meets the compliance requirements of the TEC, it is not always possible to deliver the agreed mix of provision. Despite this, delivery very closely matched the Investment Plan at 96% in 2016. Overall revenue increased by $2.9 million in 2016, mainly due to increased income from government funding as a result of changes in the mix of provision and the Corrections contract. However, expenditure also increased by $6.3 million due to an increase in kaimahi costs and depreciation and amortisation. This resulted in a surplus of 1.7%, which is within the target range of 1-3%, but slightly down on 2015.

Cost of Service Statement for Arumoni For the year ending 31 December 2016 Group Actual 2015 $'000

Group Budget 2016 $'000

Group Actual 2016 $'000

Parent Actual 2015 $'000

Parent Actual 2016 $'000

Revenue

45,961

67,677

47,192

46,172

45,834

Expenditure

46,709

65,118

49,001

46,843

47,613

(748)

2,559

(1,809)

(671)

(1,778)

Operating net cost of service

At group level Arumoni revenue increased in 2016, however Arumoni programmes are more expensive to deliver leading to a net cost of service of -$1.8 million. The variance between the budget and actual figures is outlined in the Cost of Service Statement for all outputs.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Cost of Service Statement – all outputs For the year ending 31 December 2016 Group Actual 2015 $'000

Group Budget 2016 $'000

Group Actual 2016 $'000

Parent Actual 2015 $'000

Parent Actual 2016 $'000

Ahurea Cultural

68,489

72,320

75,922

68,805

73,736

Hapori Community

39,263

19,322

33,482

38,527

35,041

Arumoni Commercial

45,961

67,677

47,192

46,172

45,834

153,713

159,319

156,596

153,504

154,611

Ahurea Cultural

60,300

69,204

69,562

60,500

67,328

Hapori Community

40,712

20,264

35,414

39,564

37,353

Arumoni Commercial

46,709

65,118

49,001

46,843

47,613

147,721

154,586

153,977

146,907

152,294

5,992

4,733

2,619

6,597

2,317

Revenue

Total revenue Expenditure

Total expenditure Operating surplus/deficit

The Cost of Service statements include budget figures from the 2015-17 Investment Plan as approved by Te Mana Whakahaere on 24 September 2014. We note that the Investment Plan budget figures differ from the budget approved by Te Mana Whakahaere on 16 December 2015 and presented in the Statement of Comprehensive Revenue and Expense. A Cost of Service statement was not approved at that time. Te Mana Whakahaere has presented the 2016 actual figures on the same basis as the 2015 actual figures. The main difference between the budget and actual figures is due to the reallocation of courses within output class. Smaller shifts are due to changes in the approved mix of provision during the Investment Plan period (see the Cost of Service statement for each output for more details). The timing of funding notifications mean that the annual budget is set before funding for the following year is confirmed.

Te Wānanga o Aotearoa — Annual Report 2016

Investment Plan Performance Commitments This section includes performance commitments from Te Wānanga o Aotearoa 2015-2017 Investment Plan that is negotiated with the Tertiary Education Commission (TEC). These targets align strategic objectives with government goals set out in the Tertiary Education Strategy. The 2016 results are interim as they are subject to validation by the TEC following submission of the final single data return in April 2017.

Attracting and engaging priority learners

2014 Actual

2015 Actual

2016 Target

2016 Interim Result

Level 1 and 2

15%

13%

17%

12%

Level 3 and above

40%

41%

38%

43%

Level 4 and above

31%

30%

38%

33%

Level 1 and 2

Level 3 and above

Level 4 and above

Level 3 and above

10%

12%

Level 4 and above

12%

Proportion of SAC eligible EFTS that are:

NQF Level

Māori

Pasifika

Under 25

Te Wānanga o Aotearoa continues to attract large numbers of Māori and Pasifika tauira nationwide. In 2016, the participation targets for Māori and Pasifika tauira studying at Level 1 and 2 were not met. This is due to shifts in the mix of provision funded through the competitive process that has shifted the demographic profile of tauira studying at Level 1 and 2. For instance, ESOL programmes are for new migrants and a large majority of cultural programmes attract a wide demographic of New Zealanders who are interested in learning more about Māori language and culture. As a major provider of foundation education, we aim to be a catalyst for Māori and Pasifika learners to enter a tertiary pathway. It was pleasing that we have increased the proportion of tauira Māori studying at Level 3 and above year on year, exceeding the target by 5% in 2016. Although we missed the target for Level 4 and above, we expect curriculum enhancements to provide clearer qualification pathways to lift tauira Māori participation at higher levels as new programmes are introduced from 2017. Pasifika enrolments have remained steady over the last three years. Although we missed target for Level 1 and 2 and Level 4 and above, it was pleasing that Pasifika tauira are shifting to higher levels, with a 1% increase at Level 3 and above in 2015 leading to a 1% increase at Level 4 and above in 2016. Pasifika tauira are important to us and in 2017 we will work closely with other providers to significantly improve outcomes for Pasifika tauira in South Auckland. It is disappointing that we have been unable to increase the proportion of youth tauira, with results steady at 9% for tauira studying at Level 3 and above and 7% for Level 4 and above.

Te Wānanga o Aotearoa — Te Pūrongo 2016

A Youth Strategy was developed in 2016 and we are now actively targeting the youth demographic through recruitment activity at takiwā and national level. During the year, we also reached thousands of rangatahi through a strong presence at major events such as Waka Ama Nationals, Polyfest and Secondary Schools Kapa Haka.

SAC Level 1 and 2 The following table shows education performance results for tauira studying at Level 1 and 2.

2014 Actual

2015 Actual

2016 Target

2016 Interim Result

Successful course completion rate (SAC eligible EFTS)

73%

75%

76%

Qualification completion rate (SAC eligible EFTS)

64%

67%

70%

67%

Student retention rate (SAC eligible student count)

67%

61%

68%

63%

Student progression (SAC eligible student count) from levels 1 and 2 to a higher level

51%

50%

40%

52%

Te Wānanga o Aotearoa is the largest provider of foundation education programmes, delivering 4,871 SAC Level 1 and 2 EFTS in 2016. We aim to deliver a quality educational experience that lifts tauira aspirations and gives them the confidence to take the next step in tertiary education or employment. The Level 1 and 2 competitive funding process has caused considerable uncertainty over our ability to deliver a high-quality, sustainable suite of programmes. The funding conditions also add a layer of complexity that makes it difficult to deliver the funded mix of provision and meet compliance requirements. Despite these challenges, Level 1 and 2 course completions have steadily improved in recent years from 73% in 2014 to 76% in 2016. This has laid the groundwork for improvements in the other education performance indicators. Although qualifications completion and retention rates missed target they were the same or better than 2015. The progression rate also improved on the 2015 result and the target was well exceeded.

Te Wānanga o Aotearoa — Annual Report 2016

SAC Level 3 and above The following table shows education performance results for tauira studying at Level 3 and above.

2014 Actual

2015 Actual

2016 Target

2016 Interim Result

Level 3 and above

84%

81%

83%

79%

Level 4 and above

83%

80%

83%

79%

Level 3 and above

78%

74%

78%

74%

Level 4 and above

78%

74%

78%

74%

Level 3 and above

81%

78%

81%

76%

Level 4 and above

80%

78%

81%

77%

Level 3 and above

82%

79%

82%

77%

Level 4 and above

83%

79%

82%

78%

Level 3 and above

79%

75%

82%

74%

Level 4 and above

79%

74%

82%

74%

Level 3 and above

70%

65%

71%

64%

Level 4 and above

70%

65%

71%

64%

Level 3 and above

76%

72%

78%

71%

Level 4 and above

76%

71%

78%

71%

Level 3 and above

78%

69%

79%

69%

Level 4 and above

80%

68%

79%

69%

Level 3 and above

81%

75%

77%

Māori

78%

77%

72%

74%

Pasifika

78%

79%

73%

75%

46%

38%

44%

39%

49%

38%

44%

41%

48%

42%

44%

43%

NQF Level Course completion rate (SAC eligible EFTS)

all tauira

under 25

Māori

Pasifika

Qualification completion rate (SAC eligible EFTS)

all tauira

under 25

Māori

Pasifika

Tauira retention rate (SAC student count)

Tauira progression (SAC student count)

all tauira

all tauira Māori Pasifika

Levels 1 to 3, to a higher level

Te Wānanga o Aotearoa education performance results peaked in 2013/2014 before the impact of changes to the eligibility criteria. It is these results that were used to set performance expectations for the 2015-16 Investment Plan period. Overall 2016 education performance results for SAC 3+ showed : • course completions declined for a second year across all categories except youth tauira and missed target; • qualification completions were at similar levels to 2015, but still below target; • retention rates dropped slightly on 2015, but still exceeded target; and • progression rates improved on 2015 results, but missed target.

Te Wānanga o Aotearoa — Te Pūrongo 2016

The education performance results for all tauira remained relatively steady in 2016, with a slight drop in course completions leading to a drop in retention. Small shifts have a big impact on the education performance of tauira under 25 (due to a smaller cohort), so it was pleasing that course and qualification completions remained steady at 2015 levels. There was a similar story for Māori and Pasifika tauira, with course and qualification completions relatively steady, retention rate down and progression up on 2015. A major focus for 2016 was the integration of home-based learning student management practices and processes. This, along with the introduction of new programme pathways, changes to recruitment and enrolment practices and kaiako capability, development initiatives are expected to have a positive impact on education performance from 2017.

Te Wānanga o Aotearoa — Annual Report 2016

Youth Guarantee Youth Guarantee provides fees-free tertiary places for eligible domestic students aged 16 to 19 years who are studying towards NCEA levels 1 or 2 or another qualification at levels 1, 2, or 3 on the NZQF. The following table shows education performance results for Youth Guarantee tauira.

2014 Actual

2015 Actual

2016 Target

2016 Interim Result

Level 1

74%

72%

70%

65%

Level 2

68%

71%

70%

61%

Level 3

78%

74%

70%

64%

Level 1 and 2

77%

80%

65%

63%

Level 3

69%

57%

70%

53%

Level 1

69%

- 12

50%

- 13

Level 2

74%

66%

45%

66%

Level 3

67%

73%

55%

61%

Level 1

50%

42%

40%

45%

Level 2

36%

21%

35%

27%

Level 3

18%

16%

35%

NQF Level Course completions rate for:

Qualification completions rate for:

Retention rate for:

Progression to a higher level from:

At 523 EFTS in 2016, Youth Guarantee numbers are significantly smaller than the EFTS cohort for other SAC funds. This means that small shifts in education performance have a big impact on the results. This is reflected in a significant decline in Youth Guarantee course completions in 2016 that had a flow-on effect to other education performance indicators. The course completion rates were between 5-9% below target and qualifications completions also missed target. It is an ongoing challenge for our kaiako to ensure at-risk tauira complete a course or qualification when they are dealing with significant social issues. Many Youth Guarantee tauira lack the motivation and studies are often disrupted by illness, the criminal justice process and family obligations or issues. Despite these challenges, the strong retention rates are a testament to the quality of our kaiako and it is particularly pleasing that the progression rate for levels 1 and 2 were much improved on 2015. After five years of growth in Youth Guarantee, we will look to keep EFTS at current levels and focus on improving outcomes for these tauira. Over the next three years we will also introduce a suite of new programmes designed to get tauira off the couch and on a tertiary pathway.

At the time of printing this document TEC records show there is no retention rate for Level 1 for 2015 and 2016

ibid

Te Wānanga o Aotearoa — Te Pūrongo 2016

Other commitments Commitment

PBRF participants only

International EFTS

2014 Actual

2015 Actual

2016 Target

2016 Interim Result

The amount of external research income earned ($000)

n/a

The number of research degrees completed

The number of international student EFTS

154

Although Te Wānanga o Aotearoa does not participate in the Performance Based Research Fund, we do receive funding from the Wānanga Research Capability Fund that is used to build rangahau capability and capacity. During 2016, Te Wānanga o Aotearoa won a research grant from Ngā Pae o te Māramatanga, however the income from this will be recorded in 2017. There were 35 research degree completions in 2016 and we expect this to increase in line with growth in He Waka Hiringa. Through the subsidiary, Dynaspeak, Te Wānanga o Aotearoa delivered 154 international EFTS in 2016 (a 65 EFT increase on 2015).

Te Wānanga o Aotearoa — Annual Report 2016

A note about surveys Te Wānanga o Aotearoa uses SurveyMonkey to conduct annual surveys of tauira, graduates and stakeholders. Following Te Raumairanga, responsibility for these surveys shifted internally leading to a number of changes (summarised below) that may have affected the results used in this report.

Tauira Experience Survey Ratonga (Tauira Services) uepū took up responsibility for the Tauira Experience Survey in 2015. In 2015 and 2016 a number of questions were added to the survey to gain more insight into whether our services and support are meeting the needs of tauira. Although the survey population remained the same, the increase in survey questions and timing led to a significant drop in responses from 5,389 in 2015 to 3,431 in 2016. The survey population was 13,428 and the response rate was 26%. Graduate Survey Ratonga also assumed responsibility for the Graduate Survey (formerly known as the Tauira Destination Survey) in 2016. Significant changes were made, with a number of questions changed or added to the survey. In addition to this, the 2016 survey was only sent to graduates who completed in 2015, a change from previous years when the survey was sent to all tauira. Although this led to a significant drop in respondents (from 3,852 in 2015 to 2,918 in 2016) it is a more accurate reflection of graduate outcomes. We surveyed graduates for whom we had a current email address. The survey population was 11,919 and the response rate was 24% In 2017 survey timing and other refinements will be made to the Tauira Experience Survey and Graduate Survey to ensure they continue to be both a reliable source of information and a valuable feedback loop. Stakeholder Survey The National Lead Stakeholder and Strategic Partnerships assumed responsibility for the Stakeholder Survey in 2016. The survey questions were updated to better inform our responsiveness to stakeholders. In 2016, the survey was sent to the newly populated stakeholder database resulting in 40 responses, up from 29 responses in 2015. The survey population was 180 and the response rate was 22%.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Profile and Trends The following tables provide an overview of the profile and trends of our tauira from 2012. Tauira

EFTS

Year

Tauira

Year

Overall

SAC 1-2 EFTS

SAC 3+ EFTS

Youth Guarantee

2016

31,291

2016

20,242

4,883

14,802

523

2015

30,467

2015

19,987

5,231

14,123

590

2014

32,235

2014

20,713

5,621

14,469

576

2013

31,808

2013

20,716

7,057

13,299

319

2012

32,372

2012

20,481

7,805

12,499

142

Our tauira numbers have remained steady at just over 30,000 since 2012, reflecting the capped funding environment.

Overall EFTS numbers have remained constant, around 20,000 since 2012, reflecting the capped funding environment.

Tauira Ethnicity Year

Māori

European

Asian

Pasifika

Other

2016

55%

36%

12%

11%

2015

55%

34%

12%

11%

2014

54%

36%

12%

11%

2013

50%

37%

14%

10%

2012

48%

41%

15%

10%

These figures may add up to more than 100% as some tauira identify with more than one ethnicity. Our tauira Māori demographic has steadily increased to 55% since 2012. Tauira Age Year

Under 25 Years

25 to 39 Years

40 Years +

2016

15%

33%

52%

2015

16%

32%

52%

2014

16%

32%

52%

2013

16%

32%

52%

2012

14%

33%

53%

There has been a slight increase in the under 25-year-old demographic since 2012, however this is anticipated to increase more rapidly over the next few years as we implement the youth strategy and roll out the newly developed programmes targeting youth.

Te Wānanga o Aotearoa — Annual Report 2016

Equal Opportunities Te Wānanga o Aotearoa is committed to providing open, accessible and inclusive study and employment opportunities for all. This commitment is embedded in our values, particularly ‘Te Aroha’ and ‘Kotahitanga’, that are considered as part of our policies and practices and everything we do as an organisation.

Equal educational opportunities Te Wānanga o Aotearoa has a diverse tauira population unlike any other New Zealand tertiary education organisation. Of 31,291 tauira: •

55% are Māori, 36% European, 11% Pasifika, 12% Asian;

•

over two-thirds are female (69%);

•

half are over 40 years of age (52%);

•

32% had no secondary qualifications and 34% had no prior tertiary qualification;

•

14% had a disability.

Despite the challenges posed by such a diverse student body, we are determined to eliminate barriers to tauira success and boost achievement for Māori and Pasifika tauira. Our fees-free policy for the majority of sub-degree qualifications is the key component of maintaining accessibility for tauira who would not normally have the financial means to undertake tertiary studies. As a major provider of foundation education, we aim to give tauira without prior qualifications the confidence to achieve higher levels of qualification. Our part-time and home-based learning programmes provide tauira with the ability to upskill without interrupting employment or other responsibilities. We also take pride in a values-based learner experience that connects all tauira with their identity, so they can succeed in cultural, social and economic contexts.

Equal employment opportunities Te Wānanga o Aotearoa is also committed to equal employment opportunities for our kaimahi. As a kaupapa Māori organisation with 1,584 full-time and part-time kaimahi, including 63% Māori, we seek to ‘walk the talk’ through values-based employment policies and practices. In the 2016 Wānanga Ora climate survey, 80% of kaimahi are committed to Te Wānanga o Aotearoa and 79% were proud to work here. Family-friendly working environments and professional development opportunities are just some of the initiatives that we provide for the approximately 65% female and 35% male kaimahi.

Ko te wh훮nau huarewa kei te iho o 훮 m훮tou mahi katoa Wh훮nau transformation is at the heart of everything we do

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te tahua › Financial Report 79 Tauaki Haepapa › Statement of Responsibility 80 Te Pūrongo a te kaitātari kaute motuhake › Independent Auditor's Report 83 Tauaki whiwhinga moni me te utu matawhānui › Statement of comprehensive revenue and expense 84 Tauaki nekehanga rawa › Statement of changes in net assets/equity 85 Tauaki tūnga pūtea › Statement of financial position 86 Tauaki kapewhiti › Statement of cash flows 88 Ngā whakamārama ki ngā tauaki pūtea › Notes to the financial statements

Te tahua 77

Te Wānanga o Aotearoa — Annual Report 2016

Te Wānanga o Aotearoa — Te Pūrongo 2016

Statement of Responsibility

In the financial year ended 31 December 2016, 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; and ›› establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting and non financial reporting. In the opinion of Te Mana Whakahaere and management of Te Wānanga o Aotearoa, the financial statements and statement of service performance fairly reflect the financial position and operations of Te Wānanga o Aotearoa for the year ended 31 December 2016.

Vanessa Eparaima, Chairperson Date 26 | 04 | 2017

Dr Jim Mather, Te Taiurungi (CEO) Date 26 | 04 | 2017

Te Wānanga o Aotearoa — Annual Report 2016

Independent Auditor's Report

To the readers of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka and Group's financial statements and non-financial performance information for the year ended 31 December 2016 The Auditor-General is the auditor of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka (Te Wānanga o Aotearoa) and group. The AuditorGeneral has appointed me, Clarence Susan, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of and group on his behalf. Opinion We have audited: ››

››

the financial statements of Te Wānanga o Aotearoa and group on pages 83 to 133, that comprise the statement of financial position as at 31 December 2016, the statement of comprehensive revenue and expense, 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 Te Wānanga o Aotearoa and group on pages 48 to 72.

– present fairly, in all material respects:

we comment on other information, and we explain our independence.

››

the financial position as at 31 December 2016; and

Basis for our opinion

››

the financial performance and cash flows for the year then ended;

– comply with generally accepted accounting practice in New Zealand in accordance with the Public Benefit Entity International Public Sector Accounting Standards for Tier 1 Entities. ››

the statement of service performance of Te Wānanga o Aotearoa and group on pages 48 to 72 presents fairly, in all material respects, Te Wānanga o Aotearoa and group’s service performance achievements measured against the proposed outcomes described in the investment plan for the year ended 31 December 2016.

Our audit was completed on 26 April 2017. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, In our opinion: we outline the responsibilities of Te Mana Whakahaere and ›› the financial statements of Te our responsibilities relating to Wānanga o Aotearoa and group the financial statements and the on pages 83 to 133: statement of service performance,

We carried out our audit in accordance with the AuditorGeneral’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report. We have fulfilled our responsibilities in accordance with the AuditorGeneral’s Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Te Mana Whakahaere for the financial statements and the statement of service performance Te Mana Whakahaere is responsible on behalf of Te Wānanga o Aotearoa and group for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Te Mana Whakahaere is also responsible on behalf of Te Wānanga o Aotearoa and group for preparing a statement of service performance that is fairly presented. Te Mana Whakahaere is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. In preparing the financial statements and the statement of performance, Te Mana Whakahaere is responsible on behalf of Te Wānanga o Aotearoa and group for assessing Te Wānanga o Aotearoa and group’s ability to continue as a going concern. Te Mana Whakahaere is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless Te Mana Whakahaere intends to liquidate Te Wānanga o Aotearoa and group or to cease operations, or has no realistic alternative but to do so. Te Mana Whakahaere’s responsibilities arise from the Crown Entities Act 2004 and the Education Act 1989.

Responsibilities of the auditor for the audit of the financial statements and the statement of performance Our objectives are to obtain reasonable assurance about whether the financial statements and the statement of service performance, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of these financial statements and statement of performance.

the statement of service performance. We did not evaluate the security and controls over the electronic publication of the financial statements and the statement of performance.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also: ›› We identify and assess the risks of material misstatement of the financial statements and the statement of service performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as For the budget information reported fraud may involve collusion, in the financial statements and forgery, intentional omissions, statement of service performance, our misrepresentations, or the procedures were limited to checking override of internal control. that the information agreed to: ›› We obtain an understanding of ›› Te Mana Whakahaere’s internal control relevant to the approved group budget for the audit in order to design audit financial statements; and procedures that are appropriate ›› the investment plan for in the circumstances, but not

Te Wānanga o Aotearoa — Annual Report 2016

for the purpose of expressing an opinion on the effectiveness of Te Wānanga o Aotearoa and group’s internal control.

performance represent the underlying transactions and events in a manner that achieves fair presentation.

››

We evaluate the appropriateness ›› of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Te Mana Whakahaere.

››

We conclude on the appropriateness of the use of the going concern basis of accounting by Te Mana Whakahaere and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Te Wānanga o Aotearoa and group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the statement of service performance or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Te Wānanga o Aotearoa and group to cease to continue as a going concern.

››

We evaluate the overall presentation, structure and content of the financial statements and the statement of service performance, including the disclosures, and whether the financial statements and the statement of service

assurance conclusion thereon. In connection with our audit of the financial statements and the statement of service performance, our responsibility is to read the other We obtain sufficient appropriate information. In doing so, we consider audit evidence regarding whether the other information the financial statements is materially inconsistent with and the statement of service the financial statements and the performance of the entities statement of service performance or business activities within or our knowledge obtained in the the group to express an audit, or otherwise appears to be opinion on the consolidated materially misstated. If, based on financial statements and the our work, we conclude that there is a consolidated statement of service material misstatement of this other performance. We are responsible information, we are required to report for the direction, supervision and that fact. We have nothing to report performance of the group audit. in this regard. We remain solely responsible for our audit opinion. Independence

We communicate with Te Mana Whakahaere regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Our responsibilities arise from the Public Audit Act 2001. Other information Te Mana Whakahaere is responsible for the other information. The other information comprises the information included on pages 2 to 47 and pages 73 to 82, but does not include the financial statements and the statement of service performance, and our auditor’s report thereon. Our opinion on the financial statements and the statement of service performance does not cover the other information and we do not express any form of audit opinion or

We are independent of Te Wānanga o Aotearoa and group in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1 (Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board. Other than the audit, we have no relationship with or interests in Te Wānanga o Aotearoa or any of its subsidiaries.

Clarence Susan Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

Te Wānanga o Aotearoa — Te Pūrongo 2016

Statement of comprehensive revenue and expense For the year ended 31 December 2016

Note

Group Actual Dec 16 $'000

Group Budget Dec 16 $'000

Group Actual Dec 15 $'000

Parent Actual Dec 16 $'000

Parent Budget Dec 16 $'000

Parent Actual Dec 15 $'000

Government funding

133,769

133,259

132,739

133,769

133,259

132,739

Tauira fees

6,534

6,300

6,427

5,206

5,507

5,354

Interest revenue

2,931

2,890

3,655

2,855

2,800

3,562

Other revenue

13,362

14,672

10,892

12,781

14,769

11,849

156,596

157,121

153,713

154,611

156,335

153,504

(90,069)

(97,609)

(85,775)

(85,765)

(93,129)

(81,799)

14,15

(10,305)

(9,046)

(8,550)

(10,069)

(8,839)

(8,353)

(53,603)

(45,028)

(53,396)

(56,460)

(48,929)

(56,755)

(153,977)

(151,683)

(147,721)

(152,294)

(150,897)

(146,907)

2,619

5,438

5,992

2,317

5,438

6,597

Gains/(loss) on property revaluations

–

9,282

–

9,282

Total other comprehensive revenue and expense

–

9,282

–

9,282

2,619

5,438

15,274

2,317

5,438

15,879

Revenue

Total revenue

Expenditure Kaimahi costs Depreciation and amortisation expense Other expenses Total expenses Surplus/(deficit) for the year

Other comprehensive revenue and expense

Total comprehensive revenue and expense

Explanations of major variances against budget are provided in note 26.

The accompanying notes form an integrated part of these financial statements. 83

Te Wānanga o Aotearoa — Annual Report 2016

Statement of changes in net assets / equity For the year ended 31 December 2016

Balance as at 1 January 2015

147,022

145,916

15,274

3,485

6,597

–

154,175

18,684

172,859

150,507

154,175

18,684

172,859

2,619

–

2,619

148,183 5,992

Total transactions with owners of the entity

Group Actual Reserves $'000

Group Actual Total Net Assets/ Equity $'000

9,402 9,282

–

Balance as at 1 January 2016 Total comprehensive revenue and expense for the year Total transactions with owners of the entity Balance at 31 December 2016

157,585

Note

Total comprehensive revenue and expense for the year

Balance at 31 December 2015

Group Budget $'000

Parent Actual Accumulated Comprehensive Revenue and Expense $'000

Group Actual Accumulated Comprehensive Revenue and Expense $'000

–

156,794

–

18,684

Parent Actual Reserves $'000

Parent Actual Total Net Assets/ Equity $'000

Parent Budget $'000

9,402

155,318

144,482

15,879

3,501

–

152,513

18,684

171,197

147,983

155,073

152,513

18,684

171,197

152,913

5,438

2,317

–

2,317

5,438

–

175,478

–

160,511

The accompanying Note form an integrated part of these financial statements. 84

–

154,830

9,282

–

18,684

–

173,514

–

158,351

Te Wānanga o Aotearoa — Te Pūrongo 2016

Statement of financial position As at 31 December 2016

Note

Group Actual Dec 16 $'000

Group Budget Dec 16 $'000

Group Actual Dec 15 $'000

Parent Actual Dec 16 $'000

Parent Budget Dec 16 $'000

Parent Actual Dec 15 $'000

ASSETS Current assets Cash and cash equivalents

8,926

12,181

9,001

8,362

11,645

8,408

Tauira and other receivables

14,733

3,326

16,200

14,713

3,285

16,202

Inventories

1,915

2,482

1,571

1,907

2,461

1,553

725

976

1,157

656

929

1,110

–

571

621

–

571

621

Prepayments Assets held for sale Other financial assets

9 10

Total current assets

61,050

35,070

54,070

59,000

33,000

52,000

87,349

54,606

82,620

84,638

51,891

79,894

475

Non-current assets Shares in subsidiaries

–

Investment property

–

1,333

1,550

475

–

1,333

1,550

Other financial assets

–

20,000

5,000

Property, plant and equipment

96,318

98,314

96,881

96,010

–

20,000

5,000

98,007

96,509

Intangible assets

8,353

7,816

6,904

7,966

7,428

6,534

Total non-current assets

104,671

127,463

110,335

104,451

127,243

110,068

Total assets

192,020

182,069

192,955

189,089

179,134

189,962

8,766

11,660

12,515

8,440

11,184

11,746

271

350

194

–

350

–

7,185

9,248

6,998

6,894

8,949

6,699

LIABILITIES Current liabilities Payables

Tauira fees Kaimahi entitlements

Provisions

Total current liabilities

104

16,320

21,362

19,797

15,412

20,587

18,513

–

Non-current liabilities Payables

Provisions

Total non-current liabilities Total liabilities Net assets

206

196

218

147

196

171

222

196

299

163

196

252

16,542

21,558

20,096

15,575

20,783

18,765

175,478

160,511

172,859

173,514

158,351

171,197

Equity Accumulated funds

156,794

148,609

154,175

154,830

146,449

152,513

Property revaluation reserve

18,684

11,902

18,684

11,902

18,684

175,478

160,511

172,859

173,514

158,351

171,197

Total equity

Explanations of major variances against budget are provided in note 26. The accompanying Note form an integrated part of these financial statements.

For and on behalf of Te Mana Whakahaere:

26 | 04 | 17 Vanessa Eparaima, Chair

26 | 04 | 17 Dr Jim Mather, Te Taiurungi (CEO)

Te Wānanga o Aotearoa — Annual Report 2016

Statement of cash flows For the year ended 31 December 2016

Group Actual Dec 16 $'000

Group Budget Dec 16 $'000

Group Actual Dec 15 $'000

Parent Actual Dec 16 $'000

Parent Budget Dec 16 $'000

Parent Actual Dec 15 $'000

133,817

133,259

132,016

133,817

133,800

132,016

6,520

6,500

6,538

5,112

5,499

5,187

–

GST received

–

170

–

147

Receipt from intercompany

–

200

–

680

4,781

2,890

2,564

4,696

2,801

2,479

12,614

14,672

9,628

11,880

15,547

9,245

–

(6,060)

(6,173)

( 5,960)

Note

Cash flows from operating activities Receipts Receipts from government grants Receipts from tauira fees Dividend revenue

Interest revenue received Other cash receipts from operating activities

–

Payments Payment to intercompany Payments to kaimahi

(93,414)

(97,359)

(87,364)

(89,054)

(87,203)

(83,304)

Payments to suppliers

(54,973)

(44,728)

(53,269)

(51,226)

(49,084)

(49,295)

–

15,234

10,286

15,187

11,198

GST (net)

577

Net cash flow inflow/(outflow) from operating activities

9,926

414 9,782

Cash flows from investing activities Receipts Sale of property, plant and equipment Sale of investments

932

–

987

932

–

987

–

2,500

–

2,500

Payments Purchase of property, plant and equipment

(7,729)

(10,000)

(3,684)

(7,651)

(9,894)

(3,600)

Purchase of software development

(562)

(4,000)

(1,827)

(458)

(2,000)

(1,776)

Purchase of programme development

(662)

–

(953)

(651)

(2,000)

(800)

(1,980)

–

(944)

(2,000)

Purchase of investments Net cash inflow/(outflow) from investing activities

–

(974)

(10,001)

(11,500)

(6,421)

(9,828)

(11,394)

(6,162)

–

Cash flows from financing activities Net cash inflow/(outflow) from financing activities

Net increase/(decrease) in cash and cash equivalents

(75)

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

3,734

3,865

9,001

8,447

5,136

8,926

12,181

9,001

Explanations of major variances against budget are provided in note 26. The accompanying Note form an integrated part of these financial statements. 86

(46)

3,793

5,036

8,408

7,852

3,372

8,362

11,645

8,408

Te Wānanga o Aotearoa — Te Pūrongo 2016

Statement of cash flows continued For the year ended 31 December 2016

Reconciliation of net surplus/(deficit) after tax to net cash flow from operating activities

Note

Surplus/(deficit) after tax

Group 2016 $'000

2,619

Group 2015 $'000

5,992

Parent 2016 $'000

2,317

Parent 2015 $'000

6,597

Add/(less) non-cash movements Depreciation and amortisation expense Capitalisation of labour Asset impairment Revaluation

14,15

10,305

8,550

10,069

8,353

(2,580)

–

(2,580)

–

213

–

Provisions/(provision reversal)

(13)

(24)

Impairment of receivables

(68)

242

(66)

242

Donation from DynaSpeak Limited Total non-cash items

–

(634)

7,857

8,927

7,612

8,096

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

(248)

(343)

(248)

(343)

Total items classified as investing or financing activities

(248)

(343)

(248)

(343)

(Increase)/decrease in inventories

(344)

311

(356)

294

(Increase)/decrease in tauira and other receivables

(316)

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

Add/(less) movements in working capital items

(Increase)/decrease in prepayments (Increase)/decrease in interest accrued Increase/(decrease) in payables

(1,737)

(288)

(1,161)

433

(309)

455

(327)

1,850

(1,091)

1,841

(1,083)

(2,749)

(115)

577

Increase/(decrease) in revenue received in advance

(19)

(98)

–

(85)

168

–

Increase/(decrease) in provision for kaimahi entitlements

414

568

Increase/(decrease) in net GST

Increase/(decrease) in tauira fees

170

(2,161)

196

147

187

(1,589)

(1,505)

Net movement in working capital

(302)

(4,290)

101

(3,152)

Net cash inflow(outflow) from operating activities

9,926

10,286

9,782

11,198

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

1. Statement of Accounting Policies 1.1 Reporting entity Te Wānanga o Aotearoa is a Tertiary Education Institution domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989. The primary purpose of Te Wānanga o Aotearoa is to provide tertiary education and it has designated itself as a public sector public benefit entity for the purposes of financial reporting. The Group consists of the ultimate Parent, Te Wānanga o Aotearoa, and its subsidiaries, DynaSpeak Limited (100% owned) and Aotearoa Scholarship Trust (100% controlled). The subsidiaries are incorporated and domiciled in New Zealand. The financial statements cover all of the activities pertaining to an educational and research institution including but not limited to:

Statement of compliance The financial statements comply with Public Benefit Entity International Public Sector Accounting Standards ("PBE IPSAS") for Tier 1 entities. The financial statements of Te Wānanga o Aotearoa and group have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education Act 1989, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with PBE IPSAS and other applicable Financial Reporting Standards, as appropriate for Tier 1 public sector public benefit entities. Measurement base The financial statements have been prepared on a historical cost basis except where modified by the revaluation of artwork, 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 the Entity and its subsidiaries and associate is New Zealand dollars.

››

The provision of student services and the facilitating of student activities, including scholarships;

››

The activities of a researcher, developer, publisher, property owner, occupier including tenant or landlord, trustee, provider of accommodation, early childhood services, conferences, exhibitions, recreation facilities, sponsorship and hireage; and

The functional currency of Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars.

Any other activity or occupation incidental to an educational and research institution.

Changes in accounting policies and estimates These accounting policies have been consistently applied in the periods covered by these financial statements.

››

The financial statements of Te Wānanga o Aotearoa and group are for the year ended 31 December 2016. The financial statements were authorised for issue on 26 April 2017 by Te Mana Whakahaere. 2. Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to the opening statements of financial position and reporting period to 31 December 2016, unless otherwise stated. 2.1 Basis of preparation The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

There has been no change in the functional currency of the group during the year.

2.2 Basis of consolidation The consolidated financial statements are prepared by adding together like items of assets, liabilities, equity, revenues, expenses and cashflows on a line-by-line basis. All significant intra-group balances, transactions, revenue and expenses are eliminated in full on consolidation. Subsidiaries Te Wānanga o Aotearoa consolidates in the group financial statements all entities where Te Wānanga o Aotearoa has the capacity to control their financing and operating policies so as to obtain benefits from the activities of those entities. This power exists where Te Wānanga o Aotearoa controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by Te Wānanga o Aotearoa or where the determination of such policies is unable

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary. Investments in subsidiaries are carried at cost in the Parent entity financial statements of Te Wānanga o Aotearoa. 2.3 Goods and Services Tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense. The net amount of GST recoverable from or payable to the Inland Revenue (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. 2.4 Cost allocation The cost of service for each significant activity of Te Wānanga o Aotearoa and the group has been derived using the cost allocation outlined below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific activity. Direct costs are charged directly to the significant activity. Indirect costs are charged to significant activities using the appropriate cost drivers. 2.5 Key judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The following items have been included in the financial statements as a result of key judgements or estimates:

Distinction between revenue and capital contribution: Most Crown funding received is operational in nature. Thus it is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, Te Wānanga o Aotearoa accounts for the funding as a capital contribution directly in accumulated funds. Estimation of useful lives of assets: The estimation of the useful lives of assets has been based on historical experience as well as manufacturers' warranties (for plant and equipment), lease terms (for leased equipment) and turnover policies (for motor vehicles). In addition, the condition of each asset is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary. Property revaluations: Note 14 provides information about the estimates and assumptions exercised in the measurement of revalued land and buildings. Early childhood centre grant: Te Wānanga o Aotearoa received a 2008 grant from the Crown for the construction of a new early childhood learning centre facility at Māngere. There are a number of conditions attached to this grant, which include the condition to repay all or part of the grant should Te Wānanga o Aotearoa cease to operate, close or sell the facility prior to 28 March 2018. Accounting for the revenue from this grant is not clear under PBE IPSAS 23 Revenue from Non-Exchange Transactions. Te Wānanga o Aotearoa has recognised the funds as a liability and releases the liability to revenue on a straight-line basis during the period from 2008 to 28 March 2018. Te Wānanga o Aotearoa considers it is continuously proportionally satisfying the conditions of the grant while the facility remains in operation. 3. Revenue Accounting policy Revenue classification Te Wānanga o Aotearoa classifies its revenue as exchange and non-exchange transactions. Exchange transactions are transactions in which one entity receives assets or

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange. Non-exchange transactions are those where Te Wānanga o Aotearoa either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

The following specific recognition criteria in relation to the parent and group's non-exchange transaction revenue streams must also be met before revenue is recognised. Student Achievement Component (SAC) funding

SAC funding is Te Wānanga o Aotearoa's main source of operational funding from the Tertiary Education Commission (TEC). Te Wānanga o Aotearoa considers SAC funding to be non-exchange and recognises SAC Revenue recognition funding as revenue when the course withdrawal date has Revenue is recognised when the amount of revenue can be passed, based on the number of eligible students enrolled measured reliably and it is probable that economic benefits in the course at that date and the value of the course. will flow to Te Wānanga o Aotearoa and is measured at the fair value of consideration received or receivable. Other government grants Revenue from exchange transactions The following specific recognition criteria in relation to the parent and group's revenue streams must also be met before revenue is recognised. Rental revenue Rental revenue is recognised in the surplus or deficit on an accrual basis. Interest revenue Interest revenue is recognised using the effective interest method. Contract revenue Certain contract revenue is accounted for as an exchange transaction and is recognised on percentage of completion basis. International tauira tuition fees International tauira tuition fees are accounted for as an exchange transaction and recognised in revenue on course percentage of completion basis. The percentage of completion is measured by the reference to the days of the course completion as a percentage. Revenue from non-exchange transactions Inflows of resources from non-exchange transactions are only recognised as assets where it is probable that the associated future economic benefit or service potential will flow to the entity and fair value is reliably measured. Liabilities are recognised in relation to inflows of resources from non-exchange transactions when there is a resulting present obligation as a result of the nonexchange transactions where it is probable that an outflow of resources embodying future economic benefit or service potential will be required to settle the obligation and the amount of the obligation can be reliably estimated.

Funding is received from the TEC in relation to costs expected to be incurred by Te Wānanga o Aotearoa to complete specific projects agreed between the TEC and Te Wānanga o Aotearoa. Revenue from other government grants is considered non-exchange and 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 revenue is recognised and is released over the specific period using the stage of completion method. Domestic tauira tuition fees Domestic tauira tuition fees are subsidised by government funding and are considered non-exchange. Revenue is recognised when the course withdrawal date has passed, which is when a student is no longer entitled to a refund for withdrawing from the course. Research and contract revenue Research grants are considered non-exchange, which provide reciprocal benefits to the research funding provider that can extend over balance dates. Research grants are usually subject to a contract for services which sets out the outputs expected and includes a payment schedule. Each research grant is recorded as a separate contract in the consolidated entity’s financial records. At balance date the aggregate balance of research projects for which research grant funding received exceeds costs incurred to date is recorded in the statement of financial position as a liability, being a future obligation to complete research. Donations In 2015 donations were received by Te Wānanga o Aotearoa from the subsidiary company, DynaSpeak Limited. These donations are recognised as non-exchange revenue in the period in which they are received.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

132,049

131,185

132,049

131,185

1,720

1,554

1,720

1,554

Government funding Student Achievement Component funding Other government funding Total government funding

133,769 132,739 133,769 132,739

Tauira fees Fees from domestic tauira

5,206

5,354

5,206

Fees from international tauira

1,328

1,073

Total tauira fees

6,534

6,427

5,206

5,354

Interest revenue

2,931

3,655

2,855

3,562

Total interest revenue

2,931

3,655

2,855

3,562

7,386

4,157

7,114

4,157

285

343

285

343

–

5,354 –

Other revenue Contract revenue* Profit on sale of property, plant, equipment and assets held for sale Investment property revaluation gain

–

217

–

217 634

Donation from DynaSpeak Limited

–

Donation from Open Wānanga Limited**

–

518

Dividends from external sources Miscellaneous revenue Total other revenue Total revenue

5,687

6,172

5,379

5,977

13,362

10,892

12,781

11,849

156,596

153,713

154,611 153,504

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

Revenue classified as exchange or non-exchange transactions Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Fees from international tauira

1,328

1,073

Contract revenue*

4,326

4,157

4,054

4,157

285

343

285

343

2,931

3,655

2,855

3,562

1,231

1,008

923

827

10,105

10,239

8,120

8,892

132,049

131,185

132,049

131,185

Other government funding

1,720

1,554

1,720

1,554

Fees from domestic tauira

5,206

5,354

5,206

5,354

Revenue from exchange transactions

Profit on sale of property, plant and equipment Interest revenue Dividends from external sources Miscellaneous revenue Total revenue from exchange transactions

–

Revenue from non-exchange transactions Student Achievement Component funding

Investment property revaluation gain

–

217

–

217

Donation from DynaSpeak Limited

–

634

Donation from Open Wānanga Limited**

–

518

Miscellaneous revenue

4,456

5,164

4,456

5,150

Contract revenue

3,060

–

3,060

–

Total revenue from non-exchange transactions

146,491

143,474

146,491

144,612

Total exchange and non-exchange

156,596

153,713

154,611

153,504

* Contract revenue relates to licences and subcontracting arrangements. ** Donation from Open Wānanga Limited was a result of the settlement of the intercompany debt.

4. Kaimahi costs

Wages and salaries Employer contributions to defined contribution plans* Capitalised internal labour Increase/(decrease) in employee entitlements Total kaimahi costs

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

90,680

85,636

86,450

81,735

1,836

1,654

1,742

1,569

(2,580)

(388)

(2,580)

(388)

133

(1,127)

153

(1,117)

90,069

85,775

85,765

81,799

Te Raumairanga was an organisation-wide change programme which led to the creation of a new leadership team and uepū structure. Home-based learning programmes were fully integrated back into the organisation and we transitioned from six disparate regional rohe to three takiwā. This change programme was undertaken from 2014 to 2015. In 2016 there were no Te Raumairanga costs (2015: $1.4m). *Employer contributions to defined contribution plans include contributions to KiwiSaver. 92

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

5. Other expenses Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

258

254

207

206

Administration*

14,282

14,883

12,484

13,468

Contract tutors

6,925

6,200

6,925

6,200

Impairment/(impairment reversal) of receivables

(66)

139

(66)

139

Bad debts written off

191

123

191

103

Sponsorship and koha

308

221

308

221

1,931

2,310

1,931

2,310

Intercompany expenses

–

6,628

6,771

Small capital purchases

836

1,827

784

1,689

2,990

2,772

2,975

2,740

10,461

9,376

10,327

9,234

Travel*

2,095

1,988

2,007

1,877

Occupancy expenses*

6.629

6,716

6,277

6,430

Rent

2,329

2,313

1,048

1,093

Minimum lease payments – operating lease

4,008

3,856

4,008

3,856

325

Note

Fees to auditor Audit fees for financial statements audit

Audit fees for other services

Satellite payments

Consultancy fees* Tauira resources

Impairment of intangibles and inventory Loss on revaluation of artwork Loss on sale (assets held for sale) Total other expenses

14 9

–

267

8 53,603

– 53,396

– 8 56,460

267 – 56,755

The fees paid to audit firms for other services were for planning and undertaking internal audits. * There were no Te Raumairanga related costs in 2016 (2015: $95k).

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

6. Cash and cash equivalents Accounting policy Cash and cash equivalents includes cash at bank and in hand, deposits held at call and short term deposits with an original maturity of three months or less.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Cash at bank and in hand

1,055

1,084

491

Call deposits

7,871

7,917

7,871

7,917

Total cash and cash equivalents

8,926

9,001

8,362

8,408

The carrying value of cash and cash equivalents approximates their fair value. There are no restrictions over any of the cash and cash equivalent balances held by the organisation and group at 31 December 2016 (2015: nil).

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

7. Tauira and other receivables Accounting policy Tauira fees and other receivables are recognised and carried at original receivable amount less any provision for impairment. A specific provision for impairment is made when collection of the full amount is no longer probable. Bad debts are written off when identified. Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

939

845

939

845

Less: provision for impairment

(149)

(144)

(149)

(144)

Net debtors

790

701

790

701

1,782

1,406

1,761

1,406

995

2,845

965

2,806

–

11,166

11,319

11,166

11,319

13,943

15,570

13,923

15,572

Tauira receivables Tauira fee receivables

Other receivables Trade receivables Accrued interest Related party receivables Subsidiary TEC funding receivable

Less: provision for impairment Gross debtors and other receivables

–

(71)

–

(71)

14,733

16,200

14,713

16,202

1,164

3,433

1,134

3,394

Receivables from non-exchange transactions

13,569

12,767

13,579

12,808

Total receivables

14,733

16,200

14,713

16,202

Total receivables above comprise: Receivables from exchange transactions

Fair value Other receivables are non-interest bearing and receipt is normally on short term of 30-day terms. Therefore the carrying value of other receivables approximates their fair value. Tauira receivables are non-interest bearing and receipt is normally on enrolment and no later than graduation. Therefore the carrying value of tauira receivables approximates their fair value. Impairment The carrying amount of receivables that would otherwise be past due or impaired and whose terms have been renegotiated is nil (2015: nil).

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

The ageing profile of receivables at year end is detailed below:

Gross $'000

2016 Impairment $'000

Net $'000

Gross $'000

2015 Impairment $'000

Net $'000

13,211

–

13,211

15,354

(50)

15,304

Past due 1-60 days

129

–

129

–

Past due 61-120 days

388

–

388

–

Past due > 120 days

1,154

(149)

1,005

1,003

(165)

838

14,882

(149)

14,733

16,415

(215)

16,200

13,197

–

13,197

15,356

(50)

15,306

Past due 1-60 days

129

–

129

–

Past due 61-120 days

382

–

382

–

1,005

1,003

14,713

16,417

Group Not past due

Total

Parent Not past due

Past due > 120 days Total

1,154 14,862

(149) (149)

(165) (215)

838 16,202

All receivables greater than 30 days in age are considered to be past due. The impairment provision has been calculated based on expected losses for Te Wānanga o Aotearoa and the 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. Other impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor.

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

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

At 1 January

215

101

215

101

Additional provisions made during the year

125

216

125

216

(191)

(102)

(191)

(102)

149

215

149

215

Receivables written off during the period At 31 December

Te Wānanga o Aotearoa and group holds no collateral as security as other credit enhancements over receivables that are either past due or impaired.

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

8. Inventory Accounting policy Inventories held for distribution or consumption in the provision of services that are not issued on a commercial basis are measured at the cost, adjusted for any loss of service potential. Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition. Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost and net realisable value. 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.

The amount of any write-down for the loss of service potential or from cost to net reliable value is recognised in the surplus or deficit in the period of the write-down.

Inventories held for distribution Work in progress Total inventory

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

1,695

1,571

1,687

1,553

220

–

220

–

1,915

1,571

1,907

1,553

The carrying amount of inventories for distribution are measured at cost as at 31 December 2016 and therefore, the carrying amount at current replacement cost is nil (2015: nil). Inventories are made up of consumables and inventories held for distribution to Takiwā. Consumables are materials or supplies which will be consumed in conjunction with the delivery of services and predominantly comprise of books and resources used in the teaching of courses to tauira. Inventory consumed for the group in 2016 is $4.0m (2015: $3.7m) and parent 2016 is $3.9m (2015: $3.7m). These figures form part of tauira resources which is disclosed in note 5, other expenses. The write-down of inventories held for distribution due to tauira resources being revised and redeveloped amounted to $84k in 2016 (2015: $18k). There have been no reversals of write-downs in 2016 (2015: nil). No inventories are pledged as security for liabilities (2015: nil).

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

9. Assets held for sale Accounting policy An asset is held for sale if its carrying amount will be recovered principally through a sale transaction rather than continuing use. On classification as 'finance costs', non-current assets and disposal groups are recognised at the lower of carrying amount and fair value less costs to sell. Impairment losses on initial classification as 'held for sale' are included in the statement of comprehensive revenue and expense. On 8 March 2016, Te Wānanga o Aotearoa sold the land at Botanical Road, Palmerston North. The profit on sale of $50,000 has been recorded in the statement of comprehensive revenue and expense. This is also in note 3 as part of profit on sale of property, plant and equipment. On 4 August 2016, Te Wānanga o Aotearoa sold the lease of the berth that was in Whangaparaoa. The loss on sale of $8,000 has been recorded in the statement of comprehensive revenue and expense (see note 5).

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Buildings

–

621

–

621

Total

–

621

–

621

Asset held for sale

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

10. Other financial assets Accounting policy Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit. Purchases and sales of financial assets are recognised on trade-date, the date on which the parent and group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Parent and Group has transferred substantially all the risks and rewards of ownership. Financial assets are classified into the following categories for the purpose of measurement: ››

fair value through surplus or deficit;

››

loans and receivables; and

››

fair value through other comprehensive income.

The classification of a financial asset depends on the purpose for which the instrument was acquired. Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or is part of a portfolio of assets that are managed together and for which there is evidence of short term profit taking. A financial asset acquired principally for the purpose of selling in the short term or part of a portfolio classified as held for trading is classified as a current asset. After initial recognition, financial assets in this category are measured at their fair values with gains or losses on remeasurement recognised in the surplus or deficit. Loans and receivables (including cash and cash equivalents and tauira and other receivables) Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. After initial recognition, loans and receivables are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

Fair value through other comprehensive revenue and expense Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in noncurrent assets unless management intends to dispose of, or realise, the investment within 12 months of balance date. The Entity and Group includes in this category: ››

investments that it intends to hold long-term but which may be realised before maturity; and

››

shareholdings that it holds for strategic purposes.

After initial recognition, these investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On derecognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. Impairment of financial assets At each balance date, Te Wānanga o Aotearoa assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the surplus or deficit.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Term deposits with maturities <12 months

61,050

54,070

59,000

52,000

Total current portion

61,050

54,070

59,000

52,000

Term deposits with maturities >12 months

–

5,000

–

5,000

Total non-current portion

–

5,000

–

5,000

61,050

59,070

59,000

57,000

Current portion

Non-current portion

Total other financial assets

Fair value Term deposits The carrying amount of term deposits approximates their fair value. The weighted average effective interest rate for term deposits is 4.23% (2015: 4.66%). Impairment There were no impairment provisions for other financial assets. None of the financial assets are either past due or impaired.

100

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

11. Payables Accounting policy Short term creditors and other payables are recorded at their face value.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Trade payables

2,684

5,059

2,478

4,944

Accrued expenses

1,991

3,318

1,840

2,643

–

4,675

8,396

4,318

7,587

Other government funding

487

592

487

592

Early childcare centre grant

–

742

174

–

Taxes payable (GST, PAYE)

3,538

3,462

2,827

3,325

Total

4,091

4,120

4,122

4,160

Total current portion

8,766

12,516

8,440

11,747

–

Early childcare centre grant

Total non-current portion

8,782

12,597

8,456

11,828

Note

Current portion Payables and deferred revenue under exchange transactions:

Revenue in advance

–

Total

–

Payables and deferred revenue under non-exchange transactions:

Related party payable – DynaSpeak Limited Related party payable – Aotearoa Scholarship Trust

Non-current portion Payables and deferred revenue under exchange transactions: Payables and deferred revenue under non-exchange transactions:

Total payables and deferred revenue

Creditors and other payables are non-interest bearing and are normally settled on terms varying between seven days and 20th of the month following invoice date. Therefore, the carrying value of trade and other payables approximates their fair value. Deferred non-exchange revenue relates to grants and donations received to which there are stipulated conditions attached. Non-exchange revenue in relation to this balance is recognised at the point-in-time as each stipulated condition is met. For terms and conditions relating to related parties payables, refer to note 21.

101

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

12. Kaimahi entitlements Accounting policy Short term kaimahi entitlements Kaimahi entitlements that Te Wānanga o Aotearoa expects to be settled within 12 months of balance date are measured at 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. Superannuation schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.

Current portion

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Accrued salaries

1,586

1,188

1,518

1,131

Annual leave

5,196

5,155

4,975

4,917

403

359

401

355

–

296

–

296

7,185

6,998

6,894

6,699

–

7,185

6,998

6,894

6,699

Sick leave Termination benefits Total current portion

Non-current portion Total non-current portion Total kaimahi entitlements

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

102

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

13. Provisions Accounting policy A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in 'finance costs'. Lease make-good The lease make-good provision is based on an estimate of future costs to restore leased premises back to the condition when the lease period commenced.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Lease make-good

Total current portion

Lease make-good

206

218

147

171

Total non-current portion

206

218

147

171

Total lease make-good

304

308

225

239

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Balance at 1 January

308

300

239

231

Additional provisions

(15)

–

(15)

–

Current portion

Non-current portion

Movements for lease make-good provisions are as follows:

Amounts used Unused amounts reversed

(54)

(31)

(54)

(31)

Balance at 31 December

304

308

225

239

In respect of a number of leased premises, Te Wānanga o Aotearoa is required at the expiry of the lease term to make good any fixtures or fittings installed in the premises. In many cases, Te Wānanga o Aotearoa has the option to renew these leases, which impacts on the timing of expected cash outflows to make good the premises. The cash flows associated with the non-current portion of the lease make-good provision are expected to occur in August 2018, January 2019 and December 2020. Information about Te Wānanga o Aotearoa leasing arrangements are disclosed in note 24. 103

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

14. Property, plant and equipment Accounting policy Property, plant and equipment asset classes consist of land and buildings, leasehold improvements, furniture and equipment, computers, motor vehicles, waka, library books and artwork. Items of property, plant and equipment are initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition. Items of property, plant and equipment are subsequently measured under the following: ››

Buildings are measured at cost or valuation less subsequent accumulated depreciation.

››

Land and artwork are stated at cost or valuation and are not depreciated.

››

All other asset classes are stated at cost less accumulated depreciation and impairment losses.

››

Items of property, plant and equipment that have been acquired through non-exchange transactions are measured at fair value.

(i) Revaluation Land and buildings are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value and at least every three years. The carrying values of revalued classes are assessed annually to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the off-cycle asset classes are revalued. Property, plant and equipment revaluation movements are accounted for on a class-of-asset basis. The net revaluation results are credited or debited to other comprehensive revenue and expense and are 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 revenue and expense 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 the deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue and expense. (ii) 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 Wānanga o Aotearoa and Group 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 through a non-exchange transaction, it is recognised at its fair value and as at the date of acquisition. (iii) 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 the revaluation reserve in respect of those assets are transferred to accumulated funds.

104

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

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 Wānanga 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. (iv) Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment (excluding land and artwork) 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:

Class of asset depreciated Buildings

Estimated useful life 1-50 years

Depreciation rates 2%-100%

Leasehold improvements

Expiry of lease including renewal periods

Furniture and equipment

2-19 years

5%- 50%

2-5 years

20%-50%

2 years

50%

1-5 years

20%-100%

5-10 years

10%-20%

10 years

10%

2 years

50%

Computers Virtual learning computers Motor vehicles Waka Library books Library subscriptions

Leasehold improvements are depreciated over the non-cancellable period for which Te Wānanga o Aoteaora has contracted to lease the asset together with any further terms for which Te Wānanga o Aoteaora has the option to continue to lease the asset. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

105

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

14. Property, plant and equipment (continued) Group 2016 Cost Balance as at 1 January 2016

Land $'000

Buildings $'000

Leasehold Improvements $'000

27,085

50,352

7,237

Additions

–

2,382

196

Disposals

–

330

1,220

–

27,415

53,954

7,433

Reclassification Closing cost at 31 December 2016

Accumulated depreciation Balance as at 1 January 2016

–

Disposals

–

Depreciation charge

–

(4,013)

Closing accumulated depreciation at 31 December 2016

–

(4,025)

(3,117)

50,340

4,693

Net book value at 1 January 2016

27,085

Net book value at 31 December 2016

27,415

(12)

49.929

Parent 2016 Cost Balance as at 1 January 2016

(2,544) – (573)

4,316

Land $'000

Buildings $'000

Leasehold Improvements $'000

27,085

50,352

6,933

Additions

–

2,382

139

Disposals

–

330

1,220

–

27,415

53,954

7,072

Reclassification Closing cost at 31 December 2016

Accumulated depreciation Balance as at 1 January 2016

–

(11)

(2,353)

Disposals

–

Depreciation charge

–

(4,014)

Closing accumulated depreciation at 31 December 2016

–

(4,025)

(2,901)

– (548)

Net book value 1 January 2016

27,085

50,341

4,580

Net book value at 31 December 2016

27,415

49,929

4,171

106

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Furniture & Equipment $'000

Computers $'000

Motor Vehicles $'000

Waka $'000

Artwork $'000

Library $'000

Virtual Learning Computers $'000

Work in Progress $'000

Total $'000

3,034

2,588

9,997

783

3,521

7,041

2,048

1,738

115,424

970

1,964

1,273

270

1,387

8,569

(15)

–

(2,597)

3,989

4,552

10,370

839

3,548

7,311

2,092

528

(1,302)

(2,020)

(5,854)

(4,698)

(1,559)

(900)

–

(488)

(625)

(1,507)

(28)

–

(509)

(1,790)

(2,645)

(6,498)

(582)

–

1,732

568

4,143

229

2,199

1,907

3,872

257

Computers $'000

Motor Vehicles $'000

Waka $'000

Furniture & Equipment $'000

863

(554)

–

(915) (1,047) 122,031

(18,543)

–

(290)

–

(8,033)

863

(5,207)

(1,849)

–

(25,713)

3,521

2,343

489

1,738

96,881

3,548

2,104

243

528

96,318

Artwork $'000

Library $'000

Virtual Learning Computers $'000

Work in Progress $'000

Total $'000

2,757

2,397

9,890

783

3,521

7,034

2,048

1,738

114,538

948

1,966

1,274

272

1,387

8,495

(15)

–

(2,597)

3,690

4,363

10,263

839

3,548

7,306

2,092

528

(1,169)

(1,903)

(5,783)

(4,697)

(1,559)

(901)

863

(554)

–

(429)

(588)

(1,488)

(28)

–

(509)

–

(1,598)

(2,491)

(6,408)

(582)

–

1,588

494

4,107

229

2,092

1,872

3,855

257

–

(916) (1,047) 121,070

(18,029)

–

(290)

–

(7,894)

863

(5,206)

(1,849)

–

(25,060)

3,521

2,337

489

1,738

96,509

3,548

2,100

243

528

96,010

107

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

14. Property, plant and equipment (continued) Group 2015 Cost Balance as at 1 January 2015

Land $'000

Buildings $'000

Leasehold Improvements $'000

22,580

52,233

6,967

Additions

–

2,186

465

Disposals

–

Reclassification

–

Revaluation Closing cost at 31 December 2015

4,505 27,085

(4,067)

– (195) –

50,352

7,237

Accumulated depreciation Balance as at 1 January 2015

–

(5,768)

(1,949)

Depreciation

–

(3,089)

(620)

Disposals

–

Reclassification

–

Revaluation

–

8,845

Closing accumulated depreciation at 31 December 2015

–

(12)

Net book value at 1 January 2015

22,580

46,465

5,018

Net book value at 31 December 2015

27,085

50,340

4,693

Land $'000

Buildings $'000

Leasehold Improvements $'000

22,580

52,233

6,663

Additions

–

2,186

465

Disposals

–

Parent 2015 Cost Balance as at 1 January 2015

Reclassification Revaluation Closing cost at 31 December 2015

– 4,505 27,085

– (4,067)

– (2,544)

(195) –

50,352

6,933

–

(5,768)

(1,776)

Depreciation

–

(3,088)

(602)

Disposals

–

Accumulated depreciation Balance as at 1 January 2015

–

Reclassification

–

Revaluation

–

8,845

–

Closing accumulated depreciation at 31 December 2015

–

(11)

Net book value at 1 January 2015

22,580

46,465

4,887

Net book value at 31 December 2015

27,085

50,341

4,580

108

(2,353)

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Furniture & Equipment $'000

Computers $'000

Motor Vehicles $'000

Waka $'000

Artwork $'000

Library $'000

Virtual Learning Computers $'000

Work in Progress $'000

Total $'000

1,767

2,579

9,805

1,356

3,649

6,663

1,624

1,210

110,433

1,267

1,330

139

378

424

1,810

8,071

–

(1,138)

(636)

–

(217)

(1,991)

–

(1,065)

(1,260)

–

3,034

2,588

9,997

783

(1,027)

(1,669)

(5,474)

(1,164)

(275)

(351)

(1,469)

(26)

(267)

–

7,041

2,048

1,738

–

(4,082)

(1,271)

–

(22,404)

–

(616)

(288)

–

(6,734)

3,521

(171) 115,424

–

1,089

636

–

1,725

–

8,845

–

(18,543)

– (1,302)

– (2,020)

– (5,854)

(554)

–

– (4,698)

(1,559)

740

910

4,331

192

3,649

2,581

353

1,210

88,029

1,732

568

4,143

229

3,521

2,343

489

1,738

96,881

Computers $'000

Motor Vehicles $'000

Waka $'000

Artwork $'000

Library $'000

Virtual Learning Computers $'000

Work in Progress $'000

Total $'000

1,561

2,397

9,698

1,356

3,649

6,658

1,624

1,210

109,629

1,196

139

376

424

1,810

–

(217)

(1,991)

–

(1,065)

(1,260)

–

171

7,034

2,048

1,738

114,538

(1,271)

–

(22,016)

(288)

Furniture & Equipment $'000

–

1,330

–

(1,138)

(636)

–

2,757

2,397

9,890

783

(942)

(1,589)

(5,424)

(227)

(314)

(267) 3,521

(1,164)

–

(4,082)

7,989

(1,448)

(26)

–

(615)

–

(6,608)

–

1,089

636

–

1,725

–

8,845

–

(18,029)

(1,169)

(1,903)

(5,783)

(554)

–

(4,697)

(1,559)

619

808

4,274

192

3,649

2,576

353

1,210

87,613

1,588

494

4,107

229

3,521

2,337

489

1,738

96,509

109

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

14. Property, plant and equipment (continued)

Artwork The most recent valuation of artwork was performed by an independent valuer, James Parkinson of Art and Object, on 7 September 2015. The valuation was undertaken in accordance with PBE IPSAS 17 using fair value and is effective as at 31 December 2015.

Valuation The most recent valuation of land and buildings was performed by independent valuers Jones Lang LaSalle as at 31 December 2015. Land Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Buildings Specialised buildings (for example, campuses) are valued at fair value using depreciated replacement cost as no reliable market data is available for buildings designed for education delivery purposes.

››

Restrictions of title Under the Education Act 1989, Te Wānanga o Aotearoa is required to obtain consent from the Ministry of Education to dispose of land and buildings. Te Wānanga o Aotearoa does not have any:

The replacement asset is based on the replacement with modern equivalent 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 useful life of assets is estimated.

››

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

››

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

–

303

231

303

231

Computers

985

Buildings

121

511

121

511

Waka

–

Library books

–

528

1,738

528

1,738

Artwork Equipment

Total

Property, plant and equipment pledged as security for liabilities. Compensation for items of property, plant and equipment that were impaired, lost or given up.

The net carrying amount of property, plant and equipment held under finance leases is nil (2015: nil).

Work in progress The value of work in progress is disclosed at cost by class of asset as follows:

Class

Restrictions on title on property, plant and equipment.

Leasing

Buildings were revalued at fair value using marketbased evidence. Market rates and capitalisation rates were applied to reflect market value.

110

›› Reference to observable prices in an active market. Where the market exists for the same or similar asset the market prices are deemed to be a fair value. The values ascribed in the valuation are primarily based on observable prices both in the primary retail market and secondary auction market. ›› If there is no active market, fair value is determined by other market-based evidence adjudged by active and knowledgeable participants in the market.

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

Determination of fair value has been made by:

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

15. Intangible assets Accounting policy Intangible assets are initially recorded at cost except for: ››

Intangible assets acquired through non-exchange transactions (measured at fair value).

All of the group's intangible assets are subsequently measured in accordance with the cost model, being cost (or fair value for items acquired through non-exchange transactions) less accumulated amortisation and impairment. 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. Programme development costs Programme development costs relate to development of educational courses and are capitalised once accreditation has been received and when it is probable that future economic benefit arising from use of the intangible asset will flow to the group. Following initial recognition of programme development costs, the cost model is applied and the asset is carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation A summary of policies applied to the group's intangible assets is as follows:

Class of intangible asset

Estimated useful life

Method used

Computer software

Finite – 5 years

Straight-line method

Programme development costs

Finite – 5 years

Straight-line method

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. The amortisation period starts when the asset is available for use and ceases at the date that the asset is derecognised. The 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 amortisation for each period is recognised in the surplus or deficit. The carrying value of each class of intangible asset is reviewed annually for indicators of impairment. Intangible assets are tested for impairment where an indicator of impairment exists. Gains or losses arising from derecognition 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 derecognised. All other research and development costs are recognised as expenses in the surplus or deficit in the year in which they are incurred.

111

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

15.1 Impairment of intangible assets Intangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When an asset is found to be impaired, a recoverable amount is estimated. An impairment loss is 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. The value in use for cash-generating assets is the present value of expected future cash flows. If an asset's carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. Value in use for non-cash-generating assets Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash-generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information. Value in use for cash-generating assets Cash-generating assets are those assets that are held with the primary objective of generating a commercial return. Movements in the carrying value for each class of intangible asset are as follows:

Group 2015 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

Opening net book value

1,181

4,347

1,322

6,850

Additions

1,132

555

2,408

4,095

Disposals

–

(90)

–

(90)

Reclassification

–

(2,059)

Impairment (net)

–

(77)

Year ended 31 December 2015

Amortisation

(446)

(1,369)

–

(1,815)

Closing net book value

1,867

3,443

1,594

6,904

3,994

10.117

(2,127)

(6,674)

1,867

3,443

At 31 December 2015 Cost Accumulated amortisation and impairment Net book value

112

1,594

15,705 –

1,594

(8,801) 6,904

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Group 2016 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

1,867

3,443

1,594

6,904

658

598

5,105

6,361

–

114

(2,512)

(2,398)

Year ended 31 December 2016 Opening net book value Additions Reclassification Impairment (net)

(158)

(84)

–

(242)

Amortisation

(673)

(1,599)

–

(2,272)

Closing net book value

1,694

2,472

4,187

8,353

4,346

10,048

(2,652)

(7,576)

1,694

2,472

At 31 December 2016 Cost Accumulated amortisation and impairment Net book value

4,187

18,581 –

4,187

(10,228) 8,353

113

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

15. Intangible assets (continued)

Parent 2015 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

Opening net book value

1,130

4,347

1,138

6,615

Additions

1,081

371

2,202

3,654

Disposals

–

(90)

–

(90)

Reclassification

–

(1,824)

Impairment (net)

–

(77)

Year ended 31 December 2015

Amortisation

(430)

(1,314)

–

(1,744)

Closing net book value

1,781

3,314

1,439

6,534

3,880

9,827

1,439

15,146

(2,099)

(6,513)

–

(8,612)

1,781

3,314

1,439

6,534

Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

1,781

3,314

1,439

6,534

640

598

5.008

6,246

–

(2,397)

At 31 December 2015 Cost Accumulated amortisation and impairment Net book value

Parent 2016

Year ended 31 December 2016 Opening net book value Additions Reclassification Impairment (net)

(158)

(84)

–

(242)

Amortisation

(648)

(1,527)

–

(2,175)

Closing net book value

1,615

2,301

4,050

7,966

4,214

9,750

4,050

18,014

(2,599)

(7,449)

–

(10,048)

1,615

2,301

4,050

7,966

At 31 December 2016 Cost Accumulated amortisation and impairment Net book value

114

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

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 impaired intangible assets of $242k in 2016 for the group and parent (2015: $77k for group and parent).

Work in progress The value of work in progress is disclosed at cost by class of asset as follows: Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

465

368

Programme development

3,722

1,496

3,682

1,341

Total

4,187

1,594

4,050

1,439

Class Software

115

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

16. Equity Accounting policy Net assets/equity is measured as the difference between total assets and total liabilities. Net assets/equity is disaggregated and classified into a number of reserves. The components of net assets/equity are: ››

accumulated funds

››

property revaluation reserves

Property revaluation reserves These reserves relate to the revaluation of land and buildings to fair value.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

154,175

148,183

152,513

145,916

2,619

5,992

2,317

6,597

156,794

154,175

154,830

152,513

18,684

9,402

18,684

9,402

Accumulated funds Balance at 1 January Surplus/(deficit) Balance at 31 December Property revaluation reserve Balance at 1 January Gains/(loss) on property revaluations Balance at 31 December

–

9,282

–

9,282

18,684

17,029

1,655

18,684

Property revaluation reserve Property revaluation reserves for each asset class consist of: Land Buildings Total

116

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Capital management The capital of Te Wānanga o Aotearoa is its net assets/equity, which comprises of accumulated funds and the property revaluation reserves. Equity is represented by net assets. Te Wānanga o Aotearoa is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings and borrowings. Te Wānanga o Aotearoa acknowledges it has complied with the financial management and accountability provisions of the Education Act 1989 for the year ended 31 December 2016. 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 equity of Te Wānanga o Aotearoa is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings. The objective of managing the equity of Te Wānanga o Aotearoa is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.

17. Shares in subsidiaries Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Shares in DynaSpeak Limited (cost)

–

475

Total investment in subsidiaries

–

475

Country of Incorporation

DynaSpeak Limited

New Zealand

Equity Interest

Investment

2016 %

2015 %

2016 $'000

2015 $'000

100

475

Total investment in subsidiaries

Te Wānanga o Aotearoa has 100% control over Aotearoa Scholarship Trust (2015: 100%).

117

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

18 . Investment property Accounting policy Properties leased to third parties under operating leases are classified as an investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. Property held to meet service delivery objectives is classified as property, plant and equipment. Investment property is measured initially at its cost, including transaction costs. After initial recognition, investment property is measured at fair value as determined annually by an independent valuer. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

1,550

1,333

1,550

1,333

(1,550)

–

(1,550)

–

Fair value gains/(losses) on valuation

–

217

–

217

Balance at 31 December

–

1,550

–

1,550

Balance at 1 January Investment properties - at fair value - transfer (to) owner-occupied property

The property located at 55 Rickit Road, Te Awamutu was valued by independent valuers, ended 31 December 2015 at fair value using market-based evidence. Market rates and capitalisation of rental were applied to reflect the market value. One of the key assumptions was a 10-year tenancy. The property at Rickit Road was unoccupied from January to November 2016 and no lease revenue was earned. In December 2016 the property became occupied by its owner, therefore has been transferred to property, plant and equipment as owner occupied.

118

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

19. Early learning centres During 2016, Te Wānanga o Aotearoa received total grants of $2.7m from the Ministry of Education for early learning purposes (2015: $2.7m). These grants have been classified as non-exchange revenue. 2016 $'000

2015 $'000

470

491

475

495

Salaries

475

495

Total funds applied

475

495

405

419

Low socio-economic

Special needs

–

438

449

Salaries

438

449

Total funds applied

438

449

652

604

Low socio-economic

Special needs

709

650

Apakura Te Kākano Bulk funding Language and kaupapa Total Ministry of Education funding received

Funds applied to:

Nga Kākano o te Manukau Bulk funding

Language and kaupapa Total Ministry of Education funding received

Funds applied to:

Te Rau Oriwa Bulk funding

Language and kaupapa Total Ministry of Education funding received

119

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

Te Rau Oriwa (continued)

2016 $'000

2015 $'000

Funds applied to: Salaries

599

557

Property occupancy costs

Provision of meals for Tamariki

–

709

650

583

570

Low socio-economic

Special needs

616

598

554

537

Faculty support

–

Property occupancy costs

Resources

–

Capital expenditure

–

616

598

450

485

Low socio-economic

Special needs

Total Ministry of Education funding received

486

516

Faculty support Resources

Capital expenditure (shade sails) Capital expenditure (verandah roof) Depreciation Total funds applied

Raroera Te Puawai Bulk funding

Language and kaupapa Total Ministry of Education funding received

Funds applied to: Salaries

Provision of meals for tamariki Total funds applied

Whare Amai Bulk funding

Funds applied to: Salaries

486

485

Property occupancy costs

–

Other

–

486

516

Total funds applied 120

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016 20. Financial instruments The Group's activities expose it to a variety of financial risks (market risk, liquidity risk and credit risk). The Group's risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the group. The group uses derivative financial instruments such as interest rate swaps and forward foreign exchange contracts to hedge certain risk exposures. (a) Financial instrument categories The estimated carrying amount and fair values of Te Wānanga and its Group's financial assets and liabilities are presented as follows: Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

8,926

9,001

8,362

8,408

14,733

16,200

14,713

16,202

Term deposits

61,050

59,070

59,000

57,000

Total financial assets

84,709

84,271

82,075

81,610

Creditors and other payables

8,782

12,597

8,456

11,828

Total financial liabilities at amortised cost

8,782

12,597

8,456

11,828

Financial assets Loans and receivables Cash and cash equivalents Tauira and other receivables Other financial assets:

Financial liabilities at amortised cost

(b) Value hierarchy For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy: ››

Quoted market price (level 1) – Financial instruments with quoted prices for identical instruments in active markets.

››

Valuation technique using observable inputs (level 2) – 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 (level 3) – Financial instruments valued using models where one or more significant inputs are not observable.

(c) Financial instrument risks Te Wānanga o Aotearoa has policies to manage risks associated with financial instruments. Te Wānanga o Aotearoa is risk averse and seeks to minimise exposure from its treasury activities. The policies do not allow any transactions that are speculative in nature to be entered into. Market risk Currency 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. Te Wānanga o Aotearoa has only limited exposure to foreign currency risk. Te Wānanga o Aotearoa purchases library items from overseas and also attends overseas conferences, which exposes it to currency risk. 121

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

Fair value interest rate risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. 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. Investments issued at variable interest rates create exposure to cash flow interest rate risk. Te Wānanga o Aotearoa manages cashflow interest rate risk by ensuring that no more than 35% of total liquid funds are held with any one approved counterparty. 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, which gives rise to credit risk. 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. 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 tauira fees, the group trades only with recognised and creditworthy third parties. Receivable balances are monitored on an on-going basis with the result that the group's exposure to bad debts is not significant as a result of the ability to withhold graduation from tauira who do not pay their fees. Te Wānanga o Aotearoa holds no collateral or other credit enhancements for financial instruments that give rise to credit risk. Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates. Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

AA-

58,976

63,571

56,362

60,908

A+

11,000

4,500

11,000

4,500

Total cash at bank and term deposits

69,976

68,071

67,362

65,408

Existing counterparty with no defaults in the past

14,733

16,200

14,713

16,202

Total debtors and other receivables

14,733

16,200

14,713

16,202

Total financial instrument assets

84,709

84,271

82,075

81,610

Counterparties with credit ratings Cash at bank and term deposits

Counterparties without credit ratings Tauira and other receivables

122

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Liquidity risk Management of liquidity risk Liquidity risk is the risk that Te Wānanga o Aotearoa will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilties and the ability to close out market positions. Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available. Te Wānanga o Aotearoa manages liquidity risk by continuously monitoring forecast and actual cash flow requirements. Contractual maturity analysis of financial liabilities The table below shows an analysis of Te Wānanga o Aotearoa's financial liabilities grouped according to maturity, based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.

Carrying Amount $'000

Contractual Cash Flows $'000

Less than 1 Year $'000

1-2 Years $'000

2-5 Years $'000

More than 5 Years $'000

Payables

8,782

8,766

–

Accrued salaries

1,586

–

10,368

10,352

–

12,596

12,515

–

1,188

–

13,784

13,703

–

Carrying Amount $'000

Contractual Cash Flows $'000

Less than 1 Year $'000

1-2 Years $'000

2-5 Years $'000

More than 5 Years $'000

Payables

8,456

8,440

–

Accrued salaries

1,518

–

Total

9,974

9,958

–

11,827

–

1,131

–

12,958

–

Group 2016

Total

Group 2015 Payables Accrued salaries Total

Parent 2016

Parent 2015 Payables Accrued salaries Total

123

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

Contractual maturity analysis of financial assets The table below shows an analysis of Te Wānanga o Aotearoa financial assets grouped according to maturity, based on the remaining period at the balance date to the contractual maturity date.

Carrying Amount $'000

Contractual Cash Flows $'000

Less than 1 Year $'000

1-2 Years $'000

2-5 Years $'000

More than 5 Years $'000

8,926

–

14,733

–

– Term deposits

61,050

–

Total

84,709

–

9,001

–

16,200

–

– Term deposits

59,070

54,070

5,000

–

Total

84,271

79,271

5,000

–

Carrying Amount $'000

Contractual Cash Flows $'000

Less than 1 Year $'000

1-2 Years $'000

2-5 Years $'000

More than 5 Years $'000

8,362

–

14,713

–

– Term deposits

59,000

–

Total

82,075

–

8,408

–

16,202

–

– Term deposits

57,000

52,000

5,000

–

Total

81,610

76,610

5,000

–

Group 2016 Cash and cash equivalents Tauira and other receivables Other financial assets

Group 2015 Cash and cash equivalents Tauira and other receivables Other financial assets

Parent 2016 Cash and cash equivalents Tauira and other receivables Other financial assets

Parent 2015 Cash and cash equivalents Tauira and other receivables Other financial assets

124

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Sensitivity analysis The table below illustrates the potential impact to the surplus or deficit and equity (excluding retained earnings) for reasonably possible market movements with all variables held constant based on the financial instrument exposures of Te Wānanga o Aotearoa at balance date. 2016 -100bps Surplus $'000

-100bps Other Equity $'000

2016 +100bps Surplus $'000

+100bps Other Equity $'000

2015 -100bps Surplus $'000

-100bps Other Equity $'000

2015 +100bps Surplus $'000

+100bps Other Equity $'000

(89)

–

(90)

–

Other financial assets

(611)

–

611

–

(541)

–

541

–

Total sensitivity to interest rate risk

(700)

–

700

–

(631)

–

631

–

(84)

–

(84)

–

Other financial assets

(590)

–

590

–

(520)

–

520

–

Total sensitivity to interest rate risk

(674)

–

674

–

(604)

–

604

–

Group Interest rate risk – financial assets Cash and cash equivalents *

Parent Interest rate risk – financial assets Cash and cash equivalents *

* Explanation of interest rate risk sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement. For example, a decrease in 100 bps is equivalent to a decrease in interest rates of 1.0%.

21. Related party disclosure Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect Te Wānanga o Aotearoa and group would have adopted in dealing with the party at arm's length in the same circumstances. Related party disclosures have also not been made for transactions with entities within Te Wānanga o Aotearoa group (such as funding and financing flows), where the transactions are consistent with the normal operating relationships between the entities and are on normal terms and conditions for such group transactions. In conducting its activities, DynaSpeak Limited received subcontracting revenue from Te Wānanga o Aotearoa to provide education services for the year ended 31 December 2016. DynaSpeak Limited invoices Te Wānanga o Aotearoa for this revenue on a monthly EFTS consumption basis. The subcontracting revenue paid by Te Wānanga o Aotearoa is disclosed in note 5, intercompany expenses. Te Wānanga o Aotearoa invoices DynaSpeak Limited for a management fee ($0.2m per annum) to recover overhead costs in respect of support services provided to DynaSpeak Limited during the year. This includes accounting, transaction processing, payroll, human resources and information technology support. The management fee received by Te Wānanga o Aotearoa is disclosed in note 3, and is included in miscellaneous revenue.

125

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

22. Key kaimahi remuneration

Appointment Date

Retirement Date

Group & Parent 2016 $'000

Group & Parent 2015 $'000

Current Council Katie Bhreatnach

Council

Jul-15

–

Vanessa Eparaima

Council Chair

Jul-15

–

Robert Gabel

Council / Audit & Risk

Jul-15

–

Bryan Hemi

Council Deputy Chair

Jul-15

–

Dr Kathie Irwin

Council

Apr-14

–

Steve Ruru*

Council / Audit & Risk

Jun 10

–

Jon Stokes

Council

Dec 16

–

Josh Wharehinga

Council / Academic Board

Jul-15

–

Richard Batley

Council

Aug 04

Oct 16

The late Rea Wikaira

Council / Audit and Risk

Aug-13

Nov 16

Ainsleigh Cribb-Su'a

Academic Board

Dec-15

–

Gary Dyall

Audit & Risk

Aug-11

–

Wayne McLean

Audit & Risk Chair

Jul-08

–

Hinerangi Raumati-Tu'ua

Investment Committee

Jan-16

–

Christopher Tooley

Academic Board

Dec-15

–

Council sub-committees

Previous Council Sir Toby Curtis

Council

Apr-09

Jul-15

–

Manaoterangi Forbes

Council

Jun-98

Jul-15

–

Manuka Henare

Council / Audit & Risk

Jan-06

Jul-15

–

Peter Joseph

Council

Sep-07

Jul-15

–

Tukoroirangi Maatiaha Morgan

Council

Feb-13

Jul-15

–

Colleen Tuuta

Council

Aug-11

Jul-15

–

Karl Wixon

Council

Aug-13

Jul-15

–

205

128

The current council was appointed in July 2015. * Steve Ruru was a member of the Audit & Risk committee for the majority of 2016. He was appointed as a Te Mana Whakahaere member in December 2016 and received no income in this capacity for 2016.

126

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Key management kaimahi and goverance remuneration:

Tumu/ senior management Te Mana Whakahaere and sub-committees Total

Short-term and kaimahi welfare benefits Other long-term benefits – KiwiSaver Total

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

2,664

2,674

2,388

2,402

205

128

205

128

2,869

2,802

2,593

2,530

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

2,805

2,738

2,537

2,474

2,869

2,802

2,593

2,530

Total remuneration includes any non-financial benefits provided to kaimahi, including motor vehicle, medical insurance, life insurance and income protection insurance. Number of key management kaimahi and governance members:

Group 2016

Group 2015

Parent 2016

Parent 2015

Tumu/ senior management

Te Mana Whakahaere and sub-committees

Total

To detemine management kaimahi numbers for Tumu/senior leadership, full-time equivalents (FTE) is used. An FTE is based on kaimahi working a 37.5 hour week. To determine the number of governance members with respect to Te Mana Whakahaere and sub-committees, a member is recognised only once if they hold more than one position. The FTE concept is not practical to apply to governance roles.

127

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

23. Contingencies Contingent liabilities Litigation Te Wānanga o Aotearoa has two legal claims outstanding as at balance date (2015: six). These claims relate to legal disputes with external parties. Te Wānanga o Aotearoa has not disclosed the details of these claims as it may seriously prejudice the position of Te Wānanga with respect to disputes with other external parties. Financial guarantee Te Wānanga o Aotearoa has no financial guarantees in place as at balance date (2015: nil). Contingent assets Te Wānanga o Aotearoa has no contingent assets as at balance date (2015: nil). 24. Capital commitments and operating leases Accounting policy (i) Operating 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 revenue. Operating lease payments are recognised as an expense in the surplus or deficit on a straight-line basis over the lease term. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term. Capital commitments Capital commitments represent capital expenditure contracted for at balance date, but not yet incurred. Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Buildings

259

Total capital commitments

259

Class of asset

128

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Operating leases as lessee The Group has entered commercial leases on certain buildings where it is not in the best interest of the group to purchase these assets. These leases have a life of between one and eight 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 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

Within one year

4,667

3,834

3,692

After one year and not later than five years

7,410

9,277

6,317

7,537

Later than five years Total

1,338

2,043

1,338

2,043

13,415

15,987

11,489

13,272

Operating leases as lessor The Group owns a number of buildings and has entered commercial leases where it is not in the best interest of the group to use these buildings for their operations. These leases have an average life of between one and two 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:

Within one year After one year and not later than five years Total

Group 2016 $'000

Group 2015 $'000

Parent 2016 $'000

Parent 2015 $'000

156

158

156

158

125

246

283

246

283

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

129

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

25. Events after the balance date There are no events after balance date (2015: nil). 26. Explanation of major variances against budget Accounting policy It should be noted only the group budget figures are approved by Te Mana Whakahaere at the beginning of the year. Budget figures are prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by Te Mana Whakahaere for the preparation of the financial statements. Explanations for major variations from Te Wānanga's budget figures in the plan are as follows: Statement of comprehensive revenue and expense The Group achieved a surplus of $2.6m (1.7% of total revenue), which is $2.8m behind budget of $5.4m (3.5% of total revenue). Other revenue was $1.3m below budget. External research grants of $0.5m was budgeted in other revenue, whereby the actual reporting of external research grants was included in government funding. In addition $0.9m represents a shortfall in subcontracting revenue in relation to both SIT and the deferred income recognition for the Corrections contract. Kaimahi costs are $7.5m or 7.7% less than budget. Training and professional development was not undertaken to the levels expected, contributing $1.2m in savings to budget. Programme development was more active than anticipated, and an additional $2.1m of internal labour was capitalised when compared to budget. The budget for contract tutorial costs of $4.5m was included in kaimahi costs, and the actuals of $6.9m was included in other expenses. Depreciation and amortisation was $1.3m or 14% higher than budget. The impact of depreciation on the increase in value of land and buildings from the 2015 revaluation was not predicted. Additionally, the valuers identified that some buildings' useful lives were less than anticipated. Other expenses were $8.6m or 18% higher than budget. An additional $1.2m was spent due to a change in the mix of provision for programme delivery which provided for more noho-based courses than anticipated. The actuals for contract tutorial costs was disclosed under other expenses, whereas the budget was disclosed under kaimahi costs. Statement of financial position Total cash, cash equivalents, and term deposits of $70.0m were higher than budget by $2.7m. Several capital projects, largely information technology which contributed $1.4m to the variance, either had been cancelled or deferred. Tauira and other receivables were $11.4m higher than budget, mainly due to a prior period adjustment of $11.3m relating to revenue recognition for government grants (refer note 27). Property, plant and equipment of $96.3m were less than budget by $2m, mainly due to several IT projects that had been cancelled or deferred. Creditors and other payables were $2.9m lower than budget, as there was no large capital spend in December as anticipated. Kaimahi entitlements was $2.1m lower than budget, as annual leave balances were less than anticipated.

130

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Equity was $15.0m more than budget. This is represented by accumulated funds being $8.2m above budget, as a prior period adjustment to other revenue recognition for government grants of $11.3m is recognised (refer note 27). This is offset by less-than-anticipated profitability of $2.8m. Property revaluation reserves were $6.8m above budget. The 2016 budget was prepared before the independent valuation of land and buildings was undertaken in December 2015. Statement of movements in equity The increase in net assets/equity is explained by the 2015 asset valuation and prior period adjustment (refer note 27). This was not anticipated in the 2016 budget, however it is offset by the surplus which is less than budget. Statement of cash flows Interest income received was $1.9m higher than budget as the budget did not reflect the maturity profile of term deposits which included maturities occuring 18 months from inception, resulting in significantly higher-thanbudget cashflows. Other cash receipts from operating activities were $2.1m below budget, mainly due in part to the Corrections contract being deferred to 2017/2018. Payments to kaimahi was $4.0m below budget and payments to suppliers was $10.2m above budget. This is mainly explained by contract tutorial costs budgeted under payments to kaimahi and actuals were disclosed as payment to suppliers. The acquisition of property, plant and equipment, software and programme development was $5.0m less than budget, as $1.4m of information technology projects were deferred or not undertaken, and $0.9m of programme development was deferred to 2017. In addition, the capitalised labour component of programme development of $2.6m was recognised as non-cash whereas in the budget it was recognised as cash. Due to the reduced spend on capital projects, an additional $2.0m was placed on term deposit compared to budget.

131

Te Wānanga o Aotearoa — Annual Report 2016

Notes to the financial statements For the year ended 31 December 2016

27. Adjustments to the comparative year financial statements The Wānanga and group has adjusted its comparative year financial statements for the year ended 31 December 2015 due to a correction of a prior period error. The adjustments are shown in the table below:

Group

Note

Actual 2015

Correction of Error

After Adjustments

Before Adjustments

$'000

924

132,739

$'000

Income Government funding

131,815

Assets Current assets Trade and other receivables

4,882

11,318

16,200

Opening balance 1 January 15

137,789

10,394

148,183

Total comprehensive revenue and expense for the year

5,068

924

5,992

Closing balance 31 December 15

142,856

11,318

154,174

Equity

Parent

Note

Actual 2015

Correction of Error

After Adjustments

Before Adjustments

$'000

131,815

924

132,739

4,884

11,318

16,202

Opening balance 1 January 15

135,521

10,394

145,915

Total comprehensive revenue and expense for the year

5,673

924

6,597

Closing balance 31 December 15

141,194

11,318

152,512

$'000

Income Government funding Assets Current assets Trade and other receivables Equity

132

Te Wānanga o Aotearoa — Te Pūrongo 2016

Notes to the financial statements For the year ended 31 December 2016

Explanatory notes: Te Wānanga o Aotearoa's financial statements for the year ended 31 December 2015 were prepared for the first time using the new Public Benefit Entities International Public Sector Accounting Standards (PBE IPSAS). On adoption, there was a change in revenue recognition to report government grants as revenue when the course withdrawal date has passed as opposed to recognising revenue based on consumption. Revenue recognition for government grants for the year ended 31 December 2015 was reported on a consumption basis and not reported in accordance with Te Wānanga o Aotearoa accounting policy. As a result of this government funding revenue and total comprehensive revenue and expense for the year of $0.9m were incorrectly omitted from 2015 and so were understated. Tauira and other receivables of $11.3m and the statement of movement in equity opening balance of $10.4m were incorrectly omitted from the 31 December 2015 financial statements and as a result were understated.

133

Te Wānanga o Aotearoa — Annual Report 2016

Hei whakamaumahara Remembrance

E te iwi nui tonu tēnei ka tangi mō koutou kua ngaro ki te Honoi-wairua. Mahue mai ko mātou te hunga ora ki muri nei auē atu ai, mōteatea atu ai, mapu atu ai. Nō reira moe mai rā kei aku rau kahurangi kei aku kuru tongarerewa. Waiho mai ko mātou hei pīkau ī ā koutou ōhākī hei oranga mō ngā whakatupuranga. E moe, okioki atu.

134

Te Wānanga o Aotearoa — Te Pūrongo 2016

To the multitudes who have departed this world, we mourn for you as you now take your place where the spirits gather. In the world of the living – those of us who have been left behind – we wail in sorrow, we weep as we think of you, we heave a sigh of grief. But, sleep my cherished ones, my treasured ones. Leave for us your works that we may continue to fulfil your aspiration to help our future generations. Forever be at rest.

135

twoa.ac.nz | 0800 355 553