Te Pūrongo - TWoA Annual Report 2020 by Te Wananga o Aotearoa

Annual Report 2020

| Te Wānanga o Aotearoa

Te Wānanga o Aotearoa Head Office, Te Puna Mātauranga 320 Factory Road, Te Awamutu 3840

Cover design inspired by the artwork of: Nichola Te Kiri (Ngāi Tuhoe)

Ngā Matawhānui

Te Pūrongo 2020 |

Our Vision

He takapau mātauranga, he whānau huarewa

Whānau transformation through education

Ngā Whakatakanga Our Mission

Kia angitu te tauira

Tauira success

| Te Wānanga o Aotearoa

Te Pūrongo 2020 |

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

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

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

Te Kotahitanga Unity amongst iwi and other ethnicities; standing as one.

| Te Wānanga o Aotearoa

Rārangi Upoko Contents

Ngā Uara Our Values

He Tauira Student Profile

Arotakenga In Review

The World in Motion Our People, Our Tauira

Tā Te Heamana Chairperson’s Report

He Tauira Student Profile

Te Mana Whakahaere Council

Ngā ki Taurangi Statement of Service Performance

Tā Te Taiurungi Chief Executive’s Report

Te Tahua Financial Report

Ngā Tumu Leadership Team

Te Pūrongo 2020 |

| Te Wānanga o Aotearoa

Arotakenga In Review

of tauira reported that their use of te reo Māori has increased

22,839

tauira studied with Te Wānanga o Aotearoa in 2020

8,154

people studied te reo Māori in 2020

7.3 million

surplus reported for 2020

14,239 EFTs for 2020

50,000

Listeners each month for Taringa, the popular podcast which recorded its 175th episode in 2020.

Te Pūrongo 2020 |

of tauira reported sharing their new skills and knowledge with whānau, hapū, iwi or community

1,486

full and part-time kaimahi as at 31 December 2020

21,000

value of scholarships awarded by the Aotearoa Scholarship Trust

266

tauira completed He Waka Hiringa Master of Applied Indigenous Studies programme

average days of cultural leave provided each year

5,846

registered participants in Mahuru Māori

69%

of kaimahi are female

53%

Māori tauira

9.7 million

Te Wānanga o Aotearoa forgoes $9.7 million in fees income to provide fee free beginner te reo Māori courses

51%

aged over 40 years

75%

female tauira

| Te Wānanga o Aotearoa

Bryan Hemi Te Heamana Chairperson

Te Pūrongo 2020 |

It gives me great pleasure to present Te Pūrongo 2020, the annual report of Te Wānanga o Aotearoa and my second as chair of this inspiring organisation

| Te Wānanga o Aotearoa

Tā Te Heamana Chairperson's report

Ka mātua rā taku mihi ki te Wāhi Ngaro, i āna tini manaakitanga ki a tātou. E ngā mate o te wā, okioki atu i te mūnga o te tini, o te mano. Tātou e ngā maunga whakahī, e ngā wai whakatere taniwha, e ngā kanohi ora o ngā mātua tūpuna, tēnā rā koutou katoa. Nōku te waimarie ki te tuku i Te Pūrongo a Te Wānanga o Aotearoa, me te whakamānawatanga nui ki ngā whakapaunga kaha a ngā ringaringa me ngā waewae i ngā marama ka huri. E whakamenemene ana ahau i te āhuatanga ki tā Te Wānanga o Aotearoa aronga wawe nei, whai hua nei, nō te pānga mai o ngā tini mānakanaka, i te mate urutā e mahi nei i tana mahi. Ahakoa tērā, i kitea, i rangona te aroha, te whakapono, me te kotahitanga o Te Ururoa rātou ko Ngā Tumu me te apataki nui o Te Wānanga o Aotearoa, i te wā o te pōkaikaha me te mānukanuka; he tohu nui tērā nō te ngākau tapatahi, te whakaaro nui, me te kaha o te kaupapa. I tēnei tau ka mahue nei me ōna piki, me ōna heke, kei te mātāmua tonu te kōrero nei ‘kia angitu te tauira’, heoi anō, e angitu ai te tauira, me manaaki, me tautoko rawa i a ia, kātahi ka huarewa te whānau, i te takapau mātauranga e hora nei. Nā runga i tērā, e mihi atu ana, tēnā rā koutou katoa.

It is my privilege to present Te Pūrongo 2020, the annual report of Te Wānanga o Aotearoa, and honour the outstanding efforts of our kaimahi during the last 12 months. I take great pride in chairing an organisation which was able to respond so positively and quickly when faced with the unforeseen challenges of the COVID-19 global pandemic. The unique situation faced by Te Taiurungi Te Ururoa Flavell, Ngā Tumu and all our kaimahi brought out the best in Te Wānanga o Aotearoa and reflected the values we share as an organisation. These values - Te Aroha, Te Whakapono, Ngā Ture and Kotahitanga – provided the foundation of our COVID-19 response and enabled us to continue providing a world-class indigenous education to our tauira while also supporting kaimahi to adapt to the significant challenges of working from home.

The impacts of COVID-19 also provided an opportunity for Te Wānanga o Aotearoa to observe first-hand how technology can be used to enhance programme delivery. This experience led to a new blended learning environment, employing both in-person and technology-assisted programme delivery. The development of this tauira-centric model will continue and provide significant benefits for tauira and the organisation in future years. These unusual circumstances had a major impact on Te Wānanga o Aotearoa, more significant than for many other providers due to our tauira demographic. They were more likely to be affected by the move to online learning, due largely to our tauira having lower access to digital devices, online connection issues, or dependants who needed to be home schooled.

Te Pūrongo 2020 |

What is a wānanga? This wānanga-wide discussion goes to the heart of everything we do and will enable us to consider fundamental issues around being a wānanga and how this may impact on what, when, and how we deliver programmes across the country.

Throughout these challenging times, our number one priority was always to get tauira and kaimahi safely through the pandemic. Yet kaimahi were still able to look forward and commit mahi to progress other business-critical strategic projects. These include the multi-million dollar work programme to improve our tauira journey, digitising enrolments and developing systems to support blended learning. As a council we have also been working on a review of our organisational strategy, Te Pae Tawhiti. As our operating and external environments change this is an important process to ensure it continues to provide the focus required to achieve our mission of Tauira Success. The revised Te Pae Tawhiti – which changes from a 10-year plan to a 5-year plan reviews our current provision along with planned work to continue meeting the changing needs of our tauira and whānau and also outlines our approach to respond to vocational education reforms.

That Te Wānanga o Aotearoa has emerged from such a challenging year during the 35th anniversary of its inception helps remind us of the kaupapa behind everything we do, Whānau Transformation Through Education, and encourages us to continue our journey to define and enhance tauira success. For the support, encouragement and advice during an immensely challenging year, I must express my ongoing gratitude for my fellow Te Mana Whakahaere members, including Josh Wharehinga, who we farewelled in 2020 after five years’ of dedicated service. His contribution has been greatly beneficial. Finally, I acknowledge the leadership and commitment shown by Te Taiurungi, Ngā Tumu and all kaimahi of Te Wānanga o Aotearoa. Their efforts give me confidence that Te Wānanga o Aotearoa is well placed to meet the challenges ahead, and continue to thrive in positively affecting the lives of our tauira.

Our contribution to the revitalisation of te reo Māori throughout Aotearoa, through accessible programmes, is a major contributor to achieving the government’s te reo revitalisation strategy (1 million in 2040), and our koha to the nation. Equally, as Aotearoa continues to adapt to the changes imposed by COVID-19, providing support to displaced workers becomes an increasingly important role and one that Te Wānanga o Aotearoa is uniquely equipped to fill.

Bryan Hemi Te Heamana | Chairperson

| Te Wānanga o Aotearoa

Te Mana Whakahaere Council

Bryan Hemi Te Heamana Chairperson MBA, BE Ngāti Kahungunu, Ngāti Koata, Samoan

Vanessa Eparaima MNZM Te Heamana Tuarua Deputy Chairperson Raukawa, Ngāti Tūwharetoa Hon. Te Ururoa Flavell Te Taiurungi Chief Executive MA, DipTchg Ngāti Rangiwēwehi, Ngāraranui, Ngāti Raukawa, Ngāti Te Ata, Ngāpuhi

Te Ururoa concluded his mahi with Te Mana Whakahaere on 29 th July 2020

Te Pūrongo 2020 |

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

Jon Stokes Mema Whakatūria Ministerial Appointment DipJour Raukawa, Ngāti Maniapoto

Katie Bhreatnach Mema | Member LLB (Hons), BA (Hons), LLM, MInstD Ngāti Mahuta, Ngāti Whakaue

Josh Wharehinga Mema | Member BSocSci, GradDipSupv, DipAdtEd Ngāti Porou, Rongowhakaata, Te Aitanga ā Māhaki, Te Arawa

Josh concluded his mahi with Te Mana Whakahaere on 24th April 2020

Bella Takiari-Brame Mema Whakatūria Ministerial Appointment MMS, CA, ACT (UK) Waikato-Maniapoto, Te Whānau a Apanui, Ngāti Mutunga, Ngāpuhi

Steve Ruru Mema Whakatūria Ministerial Appointment BMS, FCA Raukawa, Ngāti Ranginui

| Te Wānanga o Aotearoa

Hon. Te Ururoa Flavell Te Taiurungi Chief Executive

Te Pūrongo 2020 |

Taku manawa ora ki a Ranginui e tū nei Taku manawa ora ki a Papatūānuku e takoto nei He koronga nōku kia tauwhirotia mai ēnei ringaringa, ēnei waewae o Te Wānanga o Aotearoa! Rukutia ki te kotahitanga, tāwhia ki te aroha mau roa Purutia ngā iho taketake o te kaupapa kia ū, kia whena, kia ora Kia puta ki te whai ao, ki te ao mārama Tūturu whakamaua kia tina Haumi e, hui e, taiki e!

| Te Wānanga o Aotearoa

Tā Te Taiurungi Chief Executive's report

Kei te rere ngā mihi ki a koutou katoa i runga i ngā tūmanako o te karakia kua takina ā-tuhi nei. E whakamānawa atu ana ki a Kīngi Tuheitia me tōna whare. Me pēhea e kore ai e mihi ki te hunga kua tahuri atu ki te kāpunipunitanga o te wairua – koutou kei aku kahurangi, e moe, okioki atu. Tēnā rā tātau e ngā kanohi ora o rātau mā, e oreore nei ki te whai i ngā tini kaupapa e ora ai tātau katoa. Ko Te Wānanga o Aotearoa tērā mai, mai, e aro ana ki te tauākī e kīia nei ‘he takapau mātauranga, he whānau huarewa!’. Ahakoa ngā uauatanga o te tau ka mahue nei, e takaahuareka ana te ngākau ki te tuku i Te Pūrongo ki te ao. Nō te wā o te pōkaikaha, o te pōrearea me te rangirua, i tōngakengake tonu ngā ringaringa me ngā waewae o Te Wānanga o Aotearoa: ki te manaaki i ngā tauira; ki te ako mea hou e pā ana ki te hangarau; ki te whakatutuki tonu i ngā mahi hei painga mō ngāi katoa – me kore ake koutou. Heoi anō, ko te whakamānawa nui āku, mō koutou e ngā tauira, tatū atu ki ō koutou whānau nāna rā koutou i manaaki nō koutou e hoe ana i ō koutou waka ki te pae tawhiti. Māringanui ana Te Wānanga o Aotearoa ki te tautoko i a koutou, kei aku rangatira – ko te angitu o koutou, te angitu o ō koutou whānau, hapū, iwi hoki, ā, puta i Aotearoa whānui. Hei whakaoti ake i tēnei wāhanga āku, tēnā, kia tōaitia tētehi o ngā rerenga o te karakia, hei whakahihiri i a tātau, hei whakamahara hoki i a tātau ki te matū o Te Wānanga o Aotearoa ‘rukutia ki te kotahitanga, tāwhia ki te aroha mau roa, purutia ngā iho taketake o te kaupapa kia ū, kia whena, kia ora!’ Tēnā rā tātau katoa. Following a year in which we were all forced to come to terms with a new reality, it gives me great pleasure to present Te Pūrongo 2020, the annual report of Te Wānanga o Aotearoa. Like every other organisation, community and whānau, Te Wānanga o Aotearoa faced multiple challenges during 2020. But like our ancestors before us who adapted to new challenges, through the committed work of our kaimahi and our steadfast belief in the kaupapa, the organisation has emerged in a strong position and ready to focus on the future.

Without the outstanding efforts of our dedicated kaimahi at Te Wānanga o Aotearoa, it would have proven extremely challenging to have been able to provide for the educational needs of our tauira in an environment none of us had previously faced. In an extremely short period of time, Te Wānanga o Aotearoa transitioned from predominantly face-to-face teaching to a totally online delivery environment. While our most popular programme, Te Ara Reo Māori Level 2, is delivered predominantly online through our Akorau platform, and other courses use the iAkoranga interface, many of our courses – such as raranga and whakairo – do not adapt easily to online delivery.

Te Pūrongo 2020 |

Equally, there were issues for many kaiako and tauira who did not have the necessary technology at home to deliver or access online classes and a number required training in its use. This necessitated the acquisition, set up and distribution of large quantities of appropriate technology and the training of significant numbers of both kaimahi and tauira. It is a credit to our kaimahi that this was able to be achieved in such a short period of time. Also significant was the input of Ngā Tumu to our success in 2020. Their work supporting our kaimahi and tauira while making significant decisions in a rapidly changing and complex situation is a credit to their dedication to the kaupapa. During 2020 we welcomed Leon Takimoana as Tumuwhanake following the departure of Brent Sincock. Given the complexity of the COVID-19 environment and its personal impact on many kaimahi, it was somewhat a baptism of fire for Leon and I admire the way he and Ngā Tumu worked together in challenging circumstances. Working from home also posed many other challenges for kaimahi, including enabling their children to access school lessons online, protecting vulnerable whānau and keeping themselves safe and healthy. While causing massive disruption, COVID-19 proved to be a catalyst for Te Wānanga o Aotearoa to move to a blended or technology assisted learning environment, providing the impetus for a new tauira-centric, technology enhanced delivery model. This model provides for a ‘what you want, where you want, when you want’ learning environment that is under development.

The quality of our education was endorsed in 2020 through the New Zealand Qualifications Authority’s (NZQA) National External Moderation process. During the year Te Wānanga o Aotearoa was required to submit 37 completed tauira assessments across 12 NZQA-managed standards for moderation. The moderation results confirmed the assessment samples submitted were ‘consistent’ with the relevant standards. This is the most positive outcome the organisation has achieved through NZQA National External Moderation and highlights the steps undertaken to improve outcomes in this area. Also in 2020 we began a review of our long-term strategic plan – Te Pae Tawhiti 2027 – and it is envisaged that the revised strategy will define our place in the tertiary education system by capturing our identity as a wānanga and contribution to Aotearoa. Kaimahi also spent a significant part of 2020 preparing for the planned External Evaluation and Review (EER). Reviews were undertaken of education systems, policies and procedures from enrolment through to graduation, however, the continued impacts of COVID-19 saw the EER scheduled for 2020 now deferred until 2022. Finally, I want to once again acknowledge the efforts of kaimahi throughout Te Wānanga o Aotearoa for their efforts during 2020. Through their dedication and in what we do - our kaupapa, Te Wānanga o Aotearoa has emerged in a strong and sustainable position, ready to continue the pursuit of our vision of Whānau Transformation Through Education.

However, the COVID-19 enforced rāhui reminded us of the value of kanohi ki te kanohi learning and the connection between kaiako and tauira and āhuatanga Māori that are critical to our point of difference as a wānanga. We understand the importance of this connection and transformational experience it can provide, regardless of how tauira choose to complete their studies with us and we will continue to deliver an educational experience rich in mātauranga Māori. It must also be acknowledged that the responsiveness and support of the Tertiary Education Commission (TEC) was critically important during 2020. Te Wānanga o Aotearoa reported a financial surplus of 4.7% of revenue, or $7.3 million. The surplus is achieved as Te Wānanga o Aotearoa enters a multi-million dollar transformation programme that includes business critical IT infrastructure, implementing a tauira-focussed delivery model and positioning our organisation to respond to the vocational education reforms.

Hon. Te Ururoa Flavell Te Taiurungi | Chief Executive

| Te Wānanga o Aotearoa

Ngā Tumu Leadership Team

Hon. Te Ururoa Flavell Te Taiurungi Chief Executive MA, DipTchg Ngāti Rangiwēwehi, Ngāraranui, Ngāti Raukawa, Ngāti Te Ata, Ngāpuhi

Nepia Winiata Te Kōmaru Deputy Chief Executive GradDipBA, MALP (Dist) Ngāti Raukawa

During 2020, Brent Sincock concluded his tenure as Tumuwhanake (Executive Director People & Culture) at Te Wānanga o Aotearoa.

Hon. Te Ururoa Flavell

Te Pūrongo 2020 |

Hone Paul Tumukahutaupua Executive Director Tauira Services & Marketing BBus, GradDipBus, DipAupiki Ngāti Manawa, Ngāti Awa

Leon Takimoana Tumuwhanake Executive Director People & Culture GradDipPsyc. BSocSci (Honours). Professional Member of HRINZ Ngāpuhi, Ngāti Kawa, Ngāti Hine, Ngāti Rāhiri

Lindsay Baxter Tumutaumatua Executive Director Performance & Quality Assurance DipCPM, BIT, PMP, MEd (Dist)

Shireen Maged Tumuakoranga Executive Director Academic Management, Delivery & Rangahau PhD, MEd, BEd, BA Awherika

Joe Valenti Tumutahua Executive Director Finance BBus, FCPA

Ben Ngaia Tumukauneke Executive Director Development BA (Hons) Te Āti Awa

| Te Wānanga o Aotearoa

"And it’s also the privilege of learning it because it is such a beautiful language. I think no matter what your ethnicity, when you go through the journey of learning te reo you learn about te Ao Māori and you learn about yourself."

Te Pūrongo 2020 |

Learning journey continues for Ellen Ellen Hall | Tauira

Ellen Hall started learning te reo Māori to support her family but has found she is now on her own journey of self-discovery. “This is my third year of study. I initially came to support my husband - he’s Māori - but he works shift work so it’s been too hard for him to keep going at this stage,” she says. “But it’s a real community and you become very much a part of it and feel welcome. I’ve got two kids so it’s really important to both of us that they can learn te reo. That’s kind of what drew me and then it becomes part of your own journey. You’re doing it for them but it becomes about yourself too.” “I’m Pākehā but it’s important for me to learn the language for me,” she says. “And it’s also the privilege of learning it because it is such a beautiful language. I think no matter what your ethnicity, when you go through the journey of learning te reo you learn about te Ao Māori and you learn about yourself.”

Ellen is enrolled in the Level 5 Te Rōnakitanga ki te Reo Kairangi programme at the Ngāmotu campus of Te Wānanga o Aotearoa and says te reo wasn’t something she grew up with. “I grew up in Egmont Village and it just wasn’t part of life, it wasn’t something I was familiar with,” she says. “I think part of the journey has been learning what my place is in learning te reo Māori and I think there is a place for Pākehā to learn te reo Māori and being able to awhi and tautoko to tangata whenua. I think it can only be a good thing, to be supportive and be included in that journey.” She says learning te reo has changed the way she views the world. “It’s very humbling to learn this language and I feel more compassionate, I guess. You’ve got to be compassionate to yourself when you learn something new and when it’s hard. But the support and awhi you get from your other tauira and your kaiako and just how much they’ve embraced me makes me feel really part of it.”

That feeling of whanaungatanga is an important part of learning at Te Wānanga o Aotearoa and Ellen says it’s made her language journey much easier. “You’re always apprehensive about the unknown, like you don’t know anyone, but I’ve only ever been welcomed and when I come here, sometimes it’s such a mish. You’ve got two kids and you’re trying to get them everywhere but then you come here and when we do karakia and waiata, it’s such a special time, I love it,” she says. “You come to this place and when you come in here, that’s the kaupapa and the people here are so supportive.” That support applies to all students and Ellen says anyone contemplating learning te reo should go for it. “I think its building momentum and in five years’ time hopefully there are more options for people to learn te reo, but just be open to learning and prepared to be humbled. Just have faith and keep coming and keep learning. I’m pushing myself to keep going so it’s haere tonu, haere tonu.”

| Te Wānanga o Aotearoa

“I’m a lot happier, a lot calmer. My body was in the western world, where I have to pay my mortgage, buy kai and all the rest of it, but my mindset over the last few years has been in a te Ao Māori world,” he says.

Te Pūrongo 2020 |

Life's better in te Ao Māori Deane Gage | Tauira

For years, Deane Gage lived what most people would think was a pretty good life. He’d worked hard since leaving school, spent three years playing rugby professionally in Europe and was making good money as a factory manager. But, he says, there was something missing. “I grew up in a western world where money was the main goal. I picked up that work ethic from my parents, mum used to work two jobs, dad was always working, so all I knew was to work,” he says. “I had some big money jobs, and I had some rough jobs as well, but money was always the goal.” However, as the saying goes, money isn’t everything. “Going all the way through, there was something missing. I didn’t speak Māori. That’s what I was missing.” So at the age of 44, Deane – Te Whānau-a-Apanui - enrolled to learn te reo Māori with Te Wānanga o Aotearoa and hasn’t looked back. After reaching diploma level, he has now switched his focus to completing the two-year He Waka Hiringa Master of Applied Indigenous Knowledge

programme, with his rangahau (research) into the mātauranga (knowledge) behind gathering kai from the ocean.

Studying with Te Wānanga o Aotearoa has completed changed the way he thinks about and sees the world, he says.

“I think it will give people a different perspective of kai gatherers. I wanted to create a tikanga (Māori practice) paper that I could pass on to my kids and just to pass on to whānau about how we were taught to gather kai when we were kids. I thought everyone knew how to gather kai, because that’s the way we were brought up. I want to let people understand that this is what you can do when you’re gathering kai. I think COVID-19 made a massive change to that, with all the supermarkets and the takeaways closed, some people had lost that ability to gather kai.”

He says his studies with Te Wānanga o Aotearoa have enabled him to grow as a person. “This is the gap that’s been filled, it’s that ability to walk in both worlds that I think I was missing,” he says. Deane is the 2020 recipient of the $3,000 He Waka Hiringa Scholarship from the Aotearoa Scholarship Trust, which has awarded seven scholarships to Te Wānanga o Aotearoa tauira this year.

“More caring about the wellbeing of people, caring about other people more than myself, making sure everyone is happy, realising that money isn’t everything.” And while he’s happier today then he was five years ago, Deane also acknowledges that it isn’t always easy making major life changes. “Five years ago there was no way I was going to do any masters degree, I was too busy being the worker. But I resigned from my job because they wouldn’t let me study. Those are the sacrifices you’re willing to make to make yourself better. If I’m happy doing what I’m doing - which I am – then the value in that sense, I don’t think you can put a price on it. If it’s for the betterment of other people, if it’s for my hapori, hapū, iwi than it’s a win-win. If you can improve yourself, you can improve everyone else.”

| Te Wānanga o Aotearoa

The World in Motion Our People, Our Tauira

Te Pūrongo 2020 |

Ongoing support for Waka Ama Sprint Nationals 2020 began with the Waka Ama New Zealand Sprint Nationals at Lake Karāpiro in early January. Te Wānanga o Aotearoa has been the principal sponsor of this event for several years and continues to support what is one of the biggest sporting events on the calendar. The regatta featured nearly 4,000 paddlers, 406 races, more than 13,000 spectators, 150 volunteers, and 68 clubs competing over seven days. For the ninth year running, Horouta Waka Hoe from Gisborne took out the club points award.

| Te Wānanga o Aotearoa

Rāhui to keep us safe With the commencement of Alert Level 4 in March 2020, Te Wānanga o Aotearoa introduced a COVID-19 rāhui, utilising a tikanga used by our tūpuna to look after both physical and spiritual wellbeing. The rāhui saw new measures being applied to kaimahi and tauira, particularly the suspension of kanohi ki te kanohi learning and the banning of hongi and kihi. We also held daily karakia by Zoom and the whānau of our Kaikohe administrator Te Wairua Smith got to showcase their te reo and tikanga skills to kaimahi across the country.

New campus for Ngāmotu As part of our commitment to providing our tauira with state-of-the-art facilities, in October we opened our new campus in Ngāmotu (New Plymouth). The new site features administration and office areas, five classrooms, a cafeteria and dining area. It also has recreational, open access and common spaces and adjoins the Herekawe reserve walkway. In Ngāmotu, Te Wānanga o Aotearoa offers te reo Māori programmes from levels 2 to 6, tikanga, raranga, rongoā and business courses.

Te Pūrongo 2020 |

New courses in town We began offering several programmes in new locations around the country to satisfy local demand. These include rongoā and adult teaching programmes in Kawerau, Toi Maruata in Ōpōtiki, Certificate in Tākaro, Sport and Exercise in Whakatāne and Hamilton, Computing in Rotorua, Tokoroa, Whakatane and Whangārei and Māori Advancement in Gisborne.

| Te Wānanga o Aotearoa

Te Pūrongo 2020 |

Unique celebrations for 35th anniversary Te Wānanga o Aotearoa celebrated its 35th birthday in a unique fashion in 2020, with the anniversary taking place during COVID-19 lockdown. In the absence of candles and cake, staff settled for a congratulatory video from Te Taiurungi Te Ururoa Flavell. The milestone was also marked by two art exhibitions in Te Awamutu, which celebrated the past and the future of art at Te Wānanga o Aotearoa. The Te Awamutu Museum hosted artworks from Te Kōpuni Kura, the extensive $3.7 million Te Wānanga o Aotearoa art collection comprising works by former and current toi kaiako, while the Apakura Campus in Factory Rd hosted Whakapuāwai, an exhibition of works by Te Wānanga o Aotearoa toi graduates.

| Te Wānanga o Aotearoa

Kōkiri keeps going Nine technology-focussed start-ups successfully completed the business accelerator programme Kōkiri with Te Wānanga o Aotearoa in 2020. Kōkiri is a Māori business acceleration programme, based on kaupapa Māori values, focused on accelerating early-stage Māori led start-ups who have bold ambitions and are impact positive. Companies taking part in Kōkiri were involved in industries including renewable energy, agri-tech, advertising, law and social enterprises. Despite the impacts of COVID-19, the 2020 Kōkiri programme quickly moved to virtual delivery, allowing flexibility using digital tools, distance-learning methodology and remote coaching. Programme content took into account changing business horizons and allowed for flexibility to incorporate real-time changes for teams to be ‘recovery-ready’ for the future.

Tikanga gets Auckland Transport moving Te Wānanga o Aotearoa successfully worked with Auckland Transport to improve staff understanding of tikanga Māori. A cohort from Auckland Transport completed the Level 3 Te Whāinga o te Ao Tikanga programme at our Māngere campus and Māori Responsiveness Programme Manager Lillian Tahuri says it produced real benefits. “They understand that we are building relationships and these have to be enduring, not just from one project to the next. Everyone wanted more knowledge and understanding,” she says. Auckland Transport works with 19 different tribal organisations, meaning it has a genuine need for staff to have an understanding of tikanga.

Te Pūrongo 2020 |

Taringa ki Te Tai Tokerau Our award-winning bi-lingual podcast Taringa took to the road in 2020 and broadcast live from our Kaitaia campus in November. Taringa typically attracts more than 50,000 listeners each month and in 2018 received the Mātauranga - Kaupapa Māori/Education - Māori Medium award at the Ngā Tohu Reo Māori awards. In 2020 Taringa recorded its 175th episode since its launch in July 2017 and continues to attract new listeners eager to learn more about Te Ao Māori.

| Te Wānanga o Aotearoa

"And that’s how I ended up being in business. That’s what Te Wānanga o Aotearoa has done for me. It’s an awesome place to study, I love it, we’re like an intimate family."

Te Pūrongo 2020 |

Sarah gets cooking in Kaitaia Sarah Aumata | Tauira

What started out as a simple idea to make a little extra cash selling donuts at the market has turned into a successful foodtruck venture for Kaitaia couple Sarah and Tokoa Aumata. Sarah began the venture several years ago and while her cooking proved popular, she had a lot to learn about running a food business. “By the third week, the lady who runs the market, she asked me if I had a certificate, a food licence. And I thought ‘what’s that?’. I was oblivious to it eh,” Sarah says. “So I had to find out how to get a licence.” That involved the long process of having her home kitchen certified, and that’s when she came up with the business name, Cook Island Māori. “When the council came to verify the kitchen, they said I needed a business name and that’s the first thing that popped into my head. Because he’s Cook Island, I’m Māori.” It’s also when she decided to learn more about running a business and to buy a food caravan, rather than continue selling kai from boxes.

“I didn’t want to be in debt, because I don’t like that. So we talked and decided we’d just take the plunge and go into debt for the caravan and it was worth it.” She also enrolled in the Certificate in Small Business and Project Management Course at Te Wānanga o Aotearoa in Kaitaia. “I thought, maybe that’s what I need, because I wasn’t supposed to be in business, it was just to make extra money. It’s really great when you have a great tutor behind you, like Valerie West. I learned so many things.” She also completed the Certificate in Money Management programme and says it was “awesome”. “I’m good at money, but we had forecasting and I’d never done any forecasting, and I didn’t even know about spreadsheets and how much I spend on the donuts, the amount of flour I use, all that kind of thing, I’d never broken it down.” She says the course also taught her about paperwork and working online. “Val keeps pressing in to me, do it on the computer. But I don’t like the computer, I’ve got a laptop but I don’t like it but finally I’m

actually doing all my forecasting, everything on spreadsheets now, and I love it,” she says. “And that’s how I ended up being in business. That’s what Te Wānanga o Aotearoa has done for me. It’s an awesome place to study, I love it, we’re like an intimate family.”

| Te Wānanga o Aotearoa

Ngā ki taurangi Statement of Service Performance

Te Huanganui Outcomes Framework

Ahurea Culture

Oranga Hapori Community

Arumoni Commercial

Ngā Mahinga Here o te Mahere Haumītanga Investment Plan Performance Commitments

Te Tahua Financial Report

Te Pūrongo 2020 |

| Te Wānanga o Aotearoa

Te Huanganui Outcomes Framework Te Huanganui is the outcomes framework for Te Wānanga o Aotearoa, setting out the pathway to achievement of our vision and mission. The name Te Huanganui refers to the wider benefits or advantages that result from our work, or more literally, the fruits of our labour. Te Huanganui encapsulates the difference we will make in the lives of tauira and their whānau, and our unique contribution to Aotearoa. The three outcomes of Te Huanganui; Ahurea (culture), Oranga Hapori (community) and Arumoni (commercial), reflect a holistic approach to transformation within a mātauranga Māori context. This is the first year of reporting against Te Wānanga o Aotearoa Investment Plan 2020-2022 that was approved by the Tertiary Education Commission for one year, and the second year of reporting against the Investment Plan Performance Commitments that were negotiated for 2019-2021. A note on COVID-19 The COVID-19 pandemic and nationwide lockdown had a wide ranging impact on the New Zealand tertiary education sector. At Te Wānanga o Aotearoa domestic enrolments were heavily impacted as our tauira, many of whom are women over 40 years of age, had to withdraw from study to focus on more pressing commitments. These withdrawals had a flow on effect on education performance, as the move to online learning interrupted our ability to connect with new tauira and deliver an engaging kanohi ki te kanohi learning experience. The impact of the COVID-19 pandemic on Te Wānanga o Aotearoa is reflected throughout the 2020 Statement of Service Performance, with more specific detail provided for those key performance indicators that have been directly affected.

Te Pūrongo 2020 |

The following diagram provides a high-level representation of Te Huanganui as approved in the 2020-2022 Investment Plan. Outcomes At a societal level we contribute to:

Ahurea Advancing mātauranga Māori

Oranga Hapori

Arumoni

Social wellbeing

Economic wellbeing

Impact Making a difference in the lives of tauira and their whānau; and We achieve our vision of Whānau Transformation and mission of Tauira Success by:

Tauira are confident in their identity and culture

Tauira are connected with, and contributing to iwi, hapū, whānau or community

Tauira have the skills and knowledge to succeed

Outputs - Standing strong in the NZ tertiary education system:

Delivering a world-class indigenous educatonal experience › we contribute to the revitalisation of te reo Māori › we hold open the door to te Ao Māori › our rangahau advances mātauranga Māori › we reaffirm what it means to be a wānanga within the current context

Partner for success › we listen and respond to our stakeholders › we deliver a transformational tauira experience

Ensure sustainability through educational excellence › we focus on quality › we are financially sustainable Drive a culture of innovation › we use technology to deliver an accessible and engaging tauira experience

| Te Wānanga o Aotearoa

Te Pūrongo 2020 |

Ngā Putanga: Ahurea Mātauranga Māori is advanced Ahurea represents the ideal of advancing mātauranga Māori to provide the foundation for Māori to succeed as Māori and recognises our role in the cultural enrichment and identity of Aotearoa. 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 table sets out how we intend to advance mātauranga Māori over the next three years:

Impact

Making a difference in the lives of tauira and their whānau by ensuring

We will achieve our vision of Whānau Transformation Through Education and mission of Tauira Success by:

1.1 Tauira are confident in their identity and culture We will stand strong in the NZ tertiary education system by: 1.2 1.3 1.4 1.5

Contributing to the revitalisation of te reo Māori Holding open the door to te Ao Māori Our rangahau advances mātauranga Māori Affirming what it means to be a wānanga within the current context

| Te Wānanga o Aotearoa

Performance measures Tauira report that the skills and knowledge gained helped improve their cultural identity

Key Performance Indicator

1.1.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>80%

80%

75%

74%

73%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. Regardless of what they study, our holistic approach to teaching and learning exposes tauira to Māori culture and encourages tauira to connect with their own cultural identity. In 2020 74% of tauira reported improvements in cultural identity. Although the result just missed the target, it was a 1% improvement on 2019 and it provides a baseline from which we can improve. The challenge, and opportunity, for Te Wānanga o Aotearoa is to incorporate holistic outcomes into our delivery model and ensure that all tauira receive a consistent experience regardless of whether it is kanohi ki te kanohi or online.

Tauira report that their use of te reo Māori has increased

Key Performance Indicator

1.2.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

75%

77%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. Te Wānanga o Aotearoa is the driving force behind the revitalisation of te reo Māori in Aotearoa. In addition to being the largest provider of te reo Māori programmes, the majority of our tauira are exposed to tikanga and te reo and encouraged to use basic words and greetings. In 2020 77% of tauira reported that their use of te reo Māori has increased, exceeding the target by 2%. Our strength and point of difference, is āhuatanga Māori. As we make changes to our delivery model, our intention is that all programmes are grounded in kaupapa Māori and all tauira and have a safe place to kōrero Māori.

Te Pūrongo 2020 |

Forego tauira fee income to provide accessible language and culture programmes

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

$10 million

$9.7 million

$11 million

Fees foregone is calculated by a base fee for tauira studying fee-free language and cultural programmes with an annual adjustment in accordance with the Annual Maximum Fee Movement published in the New Zealand Gazette. Key Performance Indicator

1.3.1

One of the primary ways that Te Wānanga o Aotearoa work to revitalise te reo Māori is by providing accessible, fee-free language and cultural programmes across Aotearoa. Prior to 2020 the number of EFTS in these programmes had grown year on year peaking at 6,435 fee-free EFTS in 2019. In 2020 the pandemic significantly impacted EFTS numbers resulting in 5,664 fee-free Te Reo Rangatira and Angitu EFTS, 771 less fee-free EFTS than 2019. Although this meant that we fell just short of the $10 million target, we are still proud to have forgone $9.7 million of fees income in 2020. In 2021 we will begin to implement changes to our delivery model that will make our programmes even more accessible for tauira. As part of this we will also roll out more flexible, beginner te reo Māori programmes so that even more New Zealanders can learn te reo Māori.

Provide kaimahi with cultural leave so they can contribute to iwi and community events to maintain their Māori cultural relevance and mana Key Performance Indicator

1.3.2

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

200 days

300 days

200 days

60 days

350 days

Over the last five years Te Wānanga o Aotearoa has provided an average of 266 days a year of cultural leave for kaimahi to serve their marae or participate in cultural events or activities that enable them to maintain their cultural relevance and mana. At 60 days, cultural leave for 2020 was significantly lower than previous years as many events were changed or cancelled due to the pandemic. With a calendar of events that includes the annual Koroneihana celebrations at Turangawaewae Marae and regional qualifying events for Te Matatini, we look forward to continuing to support our kaimahi to take opportunities to connect with their culture over the coming year.

| Te Wānanga o Aotearoa

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

3 initiatives

3+ initiatives

Partner in major cultural initiatives

Key Performance Indicator

1.3.3

In addition to providing fee-free beginner language courses, we also use our capability and resources to support an ecosystem of events and initiatives where te reo Māori is spoken, celebrated and revived. In 2020 Te Wānanga o Aotearoa supported the following three major cultural initiatives: › We were the naming sponsor of the Waka Ama Sprint Nationals at Lake Karāpiro that expanded to a seven day event in 2020; › Coinciding with Te Wiki o Te Reo Māori, we continued to deliver Mahuru Māori where participants commit to speak te reo Māori for a day, a week or the whole month of September; and › We also continued to deliver the Taringa podcast that attracts around 50,000 listeners per month.

Proportion of degree kaiako with an approved Individual Rangahau Plan (IRP)

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>90%

>75%

60-75%

36%

83%

Rangahau is grounded in te Ao Māori and holds a deeper meaning than the western notion of research. It is Māori enquiry - not discovery. It is innovative, it validates Māori indigeneity and does not have to be validated externally. Key Performance Indicator

1.4.1

Individual Rangahau Plans are the building blocks of our strategy to advance mātauranga Māori through a tradition of rangahau. Due to organisational change and the disruption of the pandemic, only 15 of the 42 degree-kaiako had an IRP in 2020. Despite this set back, much progress was made with the approval of a new strategy Te Aratiatia, Kimihia Ranghaua (Rangahau Strategic Plan 2020 – 2025). Throughout the year rangahau kaimahi were busy supporting the aims and objectives of the new strategy including facilitating workshops and presentations, advising tauira and overseeing rangahau related aspects of degree programmes. In the coming year we will continue to focus on lifting the capability of degree kaiako and supporting the professional development of our PBRF-ranked kairangahau.

Te Pūrongo 2020 |

Tauira confirm an increased understanding of mātauranga Māori

Key Performance Indicator

1.5.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>80%

79%

80%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. At Te Wānanga o Aotearoa mātauranga Māori runs through everything we do, in what we deliver and how we deliver it, and we expect this to have a tangible impact on tauira knowledge of te Ao Māori. Although the result of 79% just missed the target, it held up well in a year dominated by a pandemic and unexpected move to online learning. Over the next year we will continue to affirm what it means to be a wānanga in the current context so that future tauira can benefit from studying with us.

| Te Wānanga o Aotearoa

Te Pūrongo 2020 |

Ngā Putanga: Oranga Hapori Social wellbeing for all New Zealanders Oranga 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 table sets out how we intend to contribute to social wellbeing for all New Zealanders over the next three years: Impact

Making a difference in the lives of tauira and their whanau by ensuring

We will achieve our vision of Whānau Transformation Through Education and mission of Tauira Success by:

2.1 Tauira are connected with, and contributing to iwi, hapū, whānau or community We will stand strong in the NZ tertiary education system by: 2.2 We listen and respond to our stakeholders 2.3 We deliver a transformational tauira experience

| Te Wānanga o Aotearoa

Performance measures Tauira report that the skills and knowledge gained helped improve their health and wellbeing

Key Performance Indicator

2.1.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

75%

70%

65%

68%

65%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. Te Wānanga o Aotearoa seeks to positively impact tauira through a holistic approach to teaching and learning. In 2020 68% of tauira reported improvements in their health and wellbeing, this is 3% higher than 2019 and exceeded the target by 3%. This result is particularly pleasing as kaiako and kaimahi worked tirelessly to support tauira through the lockdown and maintain a connection through online learning. Over the coming year Te Wānanga o Aotearoa will continue to go beyond knowledge transfer to ensure all tauira are healthy, wealthy and wise.

Tauira are sharing their new skills and knowledge with whānau, hapū, iwi or community

Key Performance Indicator

2.1.2

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>85%

87%

88%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. Our tauira are strengthened through the meaningful connections they make whilst studying with us. In 2020 87% of tauira reported sharing their new skills and knowledge with others, exceeding the target by 2%. This result is particularly pleasing as opportunities to come together were severely limited by the pandemic. The pandemic provided a timely reminder of the importance of connection and the value of kanohi ki te kanohi learning. Over the next year we will continue to provide tauira with opportunities to come together and encourage them to share their new knowledge and skills with others.

Te Pūrongo 2020 |

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

85%

>80%

80%

72%

79%

Stakeholders satisfied

Key Performance Indicator

2.2.1

The annual Stakeholder Survey contributes to our understanding of stakeholder’s needs, expectations, perceptions and experiences of Te Wānanga o Aotearoa tauira and kaimahi. The response rate of 6% (57 responses from 927 invitations) was significantly lower than 2019. This is likely due to a combination of factors, including database changes and survey timing (in December). There were significant changes to the stakeholder database in 2020 with 650 new contacts added by the takiwā. Unfortunately, the timing of the 2020 survey was delayed by the pandemic and this had a significant impact on survey engagement and the stakeholder satisfaction result. In the context of year on year increases in satisfaction since 2017, the result of 72% is disappointing. However, it does provide us with a new baseline from which we can improve. In 2021 we will continue to sharpen our focus on the needs of iwi, industry and other stakeholders through a detailed plan of action set out in the Stakeholder Plan.

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>90%

>85%

86%

87%

Tauira satisfaction

Key Performance Indicator

2.3.1

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. We aim for every tauira to have a transformative educational experience. Their satisfaction is of primary importance to our mission of tauira success. Throughout the year all kaimahi worked tirelessly to ensure that every tauira was supported to continue their learning journey through the pandemic. At 86% the result for tauira satisfaction held up well and exceeded the target by 1%. We anticipate that tauira satisfaction will continue to rise as we implement improvements from first contact and enrolment through to graduation.

| Te Wānanga o Aotearoa

Te Pūrongo 2020 |

Ngā Putanga: Arumoni 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 table sets out how we intend to contribute to economic wellbeing for all New Zealanders over the next three years: Impact

Making a difference in the lives of tauira and their whānau by ensuring

We will achieve our vision of Whānau Transformation Through Education and mission of Tauira Success by:

3.1 Tauira have the skills and knowledge to succeed We will stand strong in the NZ tertiary education system by: 3.2 We focus on quality 3.3 We are financially sustainable 3.4 We use technology to deliver accessible and engaging tauira experience

| Te Wānanga o Aotearoa

Performance measures Tauira report that the skills and knowledge gained helped improve their career prospects

Key Performance Indicator

3.1.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

80%

75%

70%

69%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. Regardless of what they study, our intention is that tauira to leave us confident in who they are, where they have come from and the skills and knowledge they need to succeed in future. The proportion of tauira that reported their studies had improved their career prospects remained steady at 69% in 2020, missing the target by 1%. In line with the vocational educational reforms, we will seek to lift this result over the plan period by increasing the range of programmes with direct employment outcomes.

Tauira have a clearer view of how to achieve future goals

Key Performance Indicator

3.1.2

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

85%

>80%

80%

86%

77%

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2020 survey was sent to a cohort of 14,901 recent graduates and 3,326 took the opportunity to respond. The response rate of 22% was 3% lower than 2019. This is likely due to a degree of survey fatigue from increased surveying of the tauira population that was necessitated by the pandemic response and the late timing of the survey in December. With skills, confidence and a plan, 86% of tauira reported they have a clearer view of how to achieve their future goals in 2020. This result exceeded the target by 6% and the 2019 result by 9% as the pandemic helped to sharpen their focus on the future. Over the next three years Te Wānanga o Aotearoa will also sharpen its focus on assisting tauira to achieve their future goals. We will seek to do this by engaging with iwi and employers, improving relevance of the programmes and other initiatives to assist more Māori into training or employment.

Te Pūrongo 2020 |

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

Category 1

Deliver Quality Action Plan

Quality Action Plan Delivered

Category 3

EER category rating

Key Performance Indicator

3.2.1

Te Wānanga o Aotearoa has spent the last two years implementing an organisation-wide quality improvement programme in preparation for the External Evaluation and Review (EER) that was scheduled for late 2020. Although the organisation was looking forward to presenting the improvement journey, including 100% of kaiako assessment decisions verified in NZQA external moderation, the EER had to be postponed as the full effects of the pandemic and nationwide lockdown took hold. High quality education provision remains a top priority for Te Wānanga o Aotearoa and we expect to see further improvements in our teaching and learning practices, and the implementation of new and revised policies, procedures and systems in advance of the March 2022 EER.

Proportion of policies on new QMS framework

Key Performance Indicator

3.2.2

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

100%

75%

50%

93%

n/a1

Te Kaupapa Kounga - the Quality Management System (QMS) provides a comprehensive framework for organisational policy that underpins quality and a culture of continuous improvement at Te Wānanga o Aotearoa. Te Kaupapa Kounga was established in 2019 as part of the quality improvement programme. A dedicated policy analyst and takiwā based roles were also appointed to install the QMS and ensure compliance with quality expectations. The work programme to move all policies to the new framework exceeded expectations with 93% or 54 of 58 policies transferred to Te Kaupapa Kounga by close of 2020. In 2021 the remaining policies will be assigned to the framework with a regular cycle of review. New policies may also be added when gaps or shortcomings are identified.

This result is not available as the QMS framework was developed in 2019.

| Te Wānanga o Aotearoa

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

80% compliant

75% compliant

70% compliant

68% compliant

n/a2

Quality teaching – Kaiako Capability Strategy

Key Performance Indicator

3.2.3

This indicator measures the proportion of kaiako that meet the minimum qualification requirements for their role. Minimum role requirements include teaching, subject matter, and literacy and numeracy qualifications. Te Wānanga o Aotearoa kaiako stand at the forefront of our unique āhuatanga Māori educational experience. Te Ara Kounga - the Kaiako Capability Strategy was developed to provide common goals and objectives that support, promote, and enhance quality ako practice. A core focus for Te Ara Kounga is ensuring that we work towards 100% of kaiako having the minimum requirements for their role. This is the first year of tracking minimum requirements and, although the result of 68% just misses the target, it provides a baseline from which we can improve. The focus for 2021 will be on implementing the Strategy and bedding in new policies, systems and procedures that establish a pathway to quality kaiako practice.

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

>99%

79.1%

95.95%

Funded EFTS

Key Performance Indicator

3.3.1

Te Wānanga o Aotearoa 2020 EFTS were significantly affected by the pandemic, falling well short of the target at 79.1% of Investment Plan funded EFTS. Although 2020 domestic and international EFTS numbers were down across the whole tertiary education sector, Te Wānanga o Aotearoa domestic EFTS numbers were disproportionately affected by the pandemic. This is due to a combination of factors including the majority of qualifications are one-year in duration, which means they are more easily delayed or cancelled than multi-year qualifications. The other major factor was the move to online learning for Semester A. Over 51% of our tauira are women over 40 years of age. This means they are more likely to have dependants or be working full-time reducing their capacity to engage with online learning. To accommodate our tauira, a decision was made to extend the deadline for early withdrawals. Although this had a significant impact on our EFTS numbers, it meant that tauira who did not want to study online could withdraw from the programme without disadvantage.

This result is not available as the Kaiako Capability Strategy was under development in 2019.

Te Pūrongo 2020 |

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

4.7%

Surplus

Key Performance Indicator

3.3.2

In response to the pandemic, the Tertiary Education Commission guaranteed that tertiary education providers would receive full Investment Plan funding for 2020. This enabled Te Wānanga o Aotearoa to focus on caring for tauira and kaimahi, and undertake preparation and training to deliver a quality online learning experience through the nationwide lockdown. The funding guarantee cushioned the impact of a drop in EFTS and significant cost savings were made from closed campuses and reduced services resulting in a surplus of 4.7% or $7.3 million. The surplus is an unexpected boon as Te Wānanga o Aotearoa enters into a multi-million dollar transformation programme that includes business critical IT infrastructure, implementing a tauira-focussed delivery model and positioning our organisation to respond to the vocational education reforms.

Programmes delivered on Akorau platform

Key Performance Indicator

3.4.1

Target 2022

Target 2021

Target 2020

Actual 2020

Actual 2019

In 2018 Te Wānanga o Aotearoa partnered with The Open Polytechnic to develop the Akorau online learning platform. A dedicated team was established to train kaiako and prepare our largest programme (Te Ara Reo Māori - He Pi ka Pao Level 1 and 2) to be delivered from the platform. In 2019 a number of implementation issues were ironed out as 154 classes were delivered from Akorau. In 2020 Te Ara Reo Māori - He Pi ka Rere (Level 3 and 4) became the second programme to be delivered on Akorau. The pandemic disrupted planning and the target was not met as the third programme was delayed by the extra support, increased functionality and resources required to deliver 224 classes fully online during Semester A 2020. Although we missed the target, the move to online learning provided a valuable opportunity to learn how we can use technology to enhance programme delivery and the tauira experience. The lessons learnt will be used to help develop the new tauira-centric delivery model for ‘what you want, where you want, when you want’ learning that is under development.

| Te Wānanga o Aotearoa

Outcomes Framework Mix of Provision The following table shows EFTS provision for each outcome group for the 2020-2022 Investment Plan period. The EFTS totals may differ due to rounding. Outcome group/discipline

2022 Planned

2021 Planned

2020 Planned

2020 Actual

2019 Actual

Arumoni - Commercial

3,471

3,437

3,438

2,060

3,272

Te Arawhānui (business)

2,756

2,727

2,737

1,792

2,616

Te Arawhānui (computing)

389

386

145

372

Umanga (skills, trades and vocations)

326

324

314

124

284

Oranga Hapori - Community

3,364

3,304

3,249

2,754

2,943

Tūāpapa (learning to study/ESOL)

1,516

1,505

1,165

1,575

Hauora (health and fitness)

539

535

478

120

Te Hiringa (education)

351

324

279

235

251

Te Hiringa (health and social services/youth work)

959

940

930

877

996

11,444

11,367

11,436

9,425

11,904

Angitu (Māori and indigenous people's development)

3,239

3,217

3,319

2,588

3,421

Te Reo Rangatira (Māori language)

6,813

6,766

6,734

5,737

7,015

Toi (Māori and indigenous arts)

1,392

1,384

1,383

1,100

1,467

18,279

18,109

18,123

14,239

18,120

Ahurea - Culture

Total

Due to a combination of factors Te Wānanga o Aotearoa domestic enrolments were disproportionately affected by the COVID-19 pandemic with 21% less enrolments than 2019. Enrolments in all programmes were impacted as the nationwide lockdown necessitated a move to online learning for Semester A 2020. We understood that our tauira, 75% are women and 51% over 40 years of age, were less able to engage with online learning and made it easy for them to withdraw from study to focus on other priorities.

Te Pūrongo 2020 |

Cost of Service Statement For the year ending 31 December 2020

Group Budget

Group Actual

Parent Actual

Investment Plan

TMW Approved

2020 $000

2019 $000

2020 $000

2019 $000

Ahurea - Culture

86,235

92,804

96,285

83,022

96,277

92,922

Oranga Hapori - Community

19,045

19,641

24,402

21,959

24,401

15,729

Arumoni Commercial

46,549

38,089

32,700

41,689

32,659

41,272

151,829

150,533

153,388

146,670

153,338

149,923

Ahurea - Culture

88,480

94,429

90,317

86,953

90,286

90,745

Oranga Hapori - Community

16,000

17,226

19,634

17,786

19,628

15,499

Arumoni -Commercial

49,884

42,199

36,172

41,932

36,162

43,509

154,363

153,853

146,125

146,671

146,079

149,753

(2,534)

(3,320)

7,263

(1)

7,259

170

Revenue

Total revenue

Expenditure

Total expenditure Operating surplus/deficit

The Cost of Service Statements include budget figures from the 2020-2022 Investment Plan (approved by Te Mana Whakahaere on 26 June 2019) and the annual budget (approved by Te Mana Whakahaere on 26 February 2020). These budgets differ as Investment Plan funding is approved on an annual basis and is subject to change. The figures above reflect the TEC funding guarantee, providing Te Wānanga o Aotearoa with full Investment Plan funding to enable business continuity during the COVID-19 pandemic.

| Te Wānanga o Aotearoa

Ngā Mahinga Here o te Mahere Haumitanga Investment Plan Performance Commitments This section provides the results for performance commitments negotiated with TEC for 2019-2021. These targets align strategic objectives with government goals set out in the Tertiary Education Strategy. The 2020 results are interim as they are subject to validation by the TEC following submission of the final single data return in April 2021. Participation

The expected number of graduates at Level 1-3

The proportion of total SAC eligible EFTS enrolled at Level 1-3

The proportion of total SAC eligible EFTS enrolled at Level 4-7 (non degree)

The proportion of total SAC eligible EFTS enrolled at Level 7 degree

The proportion of total SAC eligible EFTS enrolled at Level 8-10

2018 Actual

2019 Actual

2020 Target

2020 Interim Result

non-Māori, non-Pasifika

9,955

10,444

7,000

7,703

Māori

6,774

6,052

5,000

6,118

Pasifika

1,142

960

1,000

1,033

non-Māori, non-Pasifika

50%

48%

51%

Māori

45%

Pasifika

non-Māori, non-Pasifika

36%

35%

30%

33%

Māori

58%

59%

60%

61%

Pasifika

10%

non-Māori, non-Pasifika

12%

10%

Māori

70%

68%

70%

Pasifika

26%

28%

22%

27%

non-Māori, non-Pasifika

11%

10%

Māori

75%

77%

80%

71%

Pasifika

19%

20%

10%

29%

Te Pūrongo 2020 |

Despite the COVID-19 pandemic, Te Wānanga o Aotearoa continued to attract thousands of Māori and Pasifika tauira and the participation targets for Levels 1-7 were met or exceeded. The majority of EFTS at Level 1-3 are in beginner reo programmes. EFTS in these programmes were significantly affected by the pandemic and this is reflected in a drop in participation, particularly for non-Māori, non-Pasifika tauira. This drop in participation is likely due to these tauira being more likely to put off their studies to focus on other commitments during the nationwide lockdown. The participation results for Māori tauira held up well at all levels with targets met, and 2019 results exceeded, for every level grouping except levels 8-10. The results also show that we continue to attract large numbers of Pasifika tauira, with 73 more Pasifika graduates at Level 1-3 than 2019, and targets for all level groupings were met or exceeded. Te Wānanga o Aotearoa only has one programme at Level 8-10, that is He Waka Hiringa (Master of Applied Indigenous Knowledge). He Waka Hiringa has a small cohort of approximately 40 tauira therefore the ethnicity of one tauira has a big impact on the results for that level grouping. First-Year Retention

The first year retention rate for students at Level 4-7 (non degree)

The first year retention rate for students at Level 7 degree

2018 Actual

2019 Actual

2020 Target

2020 Interim Result

non-Māori, non-Pasifika

Māori

Pasifika

non-Māori, non-Pasifika

77%

86%

76%

69%

Māori

73%

68%

71%

66%

Pasifika

73%

77%

74%

60%

The targets and results for Level 4-7 (non-degree) are zero as all programmes at these levels are one year or less in duration. After trending upwards, the first-year retention rates for Level 7 degree is disappointing. Although we have a higher proportion of second chance learners who are entering in to degree study without prior qualifications, we want our tauira to have every chance at success. We will investigate the internal and external (COVID-19 and the Government’s Fee Free Policy) causes of this and take action to ensure that we are providing tauira with the support they need to complete their studies and launch their careers in their chosen profession.

| Te Wānanga o Aotearoa

Course Completion

The course completion rate for students at Level 1-10

2018 Actual

2019 Actual

2020 Target

2020 Interim Result

non-Māori, non-Pasifika

81%

82%

78%

Māori

72%

73%

78%

65%

Pasifika

70%

74%

78%

71%

Disappointingly, after trending up in 2019, course completion results were heavily impacted by the pandemic and the move to online learning. Although disappointing, the course completion rates are not surprising as the move to online learning created many barriers for our tauira. Tauira surveys and withdrawal reports highlighted these issues including a lack of digital literacy, no access to a device, internet connectivity issues and many were unable to continue as they had to support dependents with online schooling. Despite this, Te Wānanga o Aotearoa remains committed to parity of achievement for all tauira. To get our tauira back on track we are taking actions to help them overcome these barriers by providing digital literacy training, devices and internet connections.

Progression

The progression rate for students at Level 1-3

2018 Actual

2019 Actual

2020 Target

2020 Interim Result

non-Māori, non-Pasifika

39%

35%

45%

33%

Māori

42%

40%

45%

36%

Pasifika

38%

37%

45%

29%

Following a drop in course completions, the rate of progression to higher levels of study was also impacted by the pandemic and the results for all groupings missed the target and were significantly lower than 2019. Te Wānanga o Aotearoa progression rates often fluctuate with a large proportion of older tauira who take up language and cultural courses at different levels rather than following a linear path to higher level study or employment. Despite this, work is underway to improve progression rates by improving the pathways and employment outcomes of our programmes. Until then we are hoping that progression rates will improve as tauira settle back in to kanohi ki te kanohi learning in 2021.

Te Pūrongo 2020 |

Other commitments

2018 Actual

2019 Actual

2020 Target

2020 Interim Result

The amount of external research income earned

$60,000

The number of research degrees completed

The number of international student EFTS

Commitment

Although Te Wānanga o Aotearoa received no external research income in 2020, it continued to make great progress in building the capability of new and emerging researchers and the quality of rangahau through Te Aratiatia 2020-2025 (Rangahau Strategic Plan). We came very close to the research degree completion target with 37 tauira graduating He Waka Hiringa (Master of Applied Indigenous Knowledge) in 2020. Te Wānanga o Aotearoa exited out of international provision in 2018.

| Te Wānanga o Aotearoa

Tauira Profile The following tables provide a five year overview of tauira demographics. Due to the COVID-19 pandemic Te Wānanga o Aotearoa had approximately 5,000 less tauira in 2020 than 2019. Over the last five years the popularity of our beginner reo programmes has seen an upward trend in European tauira over 40 years of age. This trend was interrupted in 2020 as tauira had to set aside their studies to focus on other commitments.

Tauira Year

Tauira

2020

22,839

2019

27,835

2018

31,445

2017

31,636

2016

31,291

Te Pūrongo 2020 |

EFTS Year

Overall

SAC 1-2 EFTS

SAC 3+ EFTS

Youth Guarantee

2020

14,239

3,562

10,673

2019

18,120

4,714

13,348

2018

19,558

5,420

13,908

230

2017

20,199

5,399

14,276

455

2016

20,242

4,883

14,804

523

Tauira Ethnicity Please note that these figures may add up to more than 100% as tauira identify with more than one ethnicity

Year

Māori

European

Asian

Pasifika

Other

2020

53%

44%

12%

10%

2019

48%

47%

13%

2018

51%

44%

12%

2017

54%

40%

12%

10%

2016

55%

36%

12%

11%

Tauira Age Year

Under 25

25 to 39 Years

40 Years +

2020

40%

51%

2019

37%

53%

2018

11%

36%

53%

2017

14%

36%

50%

2016

15%

33%

52%

| Te Wānanga o Aotearoa

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 ngā uara, our values 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 22,839 tauira: ›

53% are Māori, 44% European, 10% Pasifika, 12% Asian;

›

75% are female and 25% male;

›

51% are over 40 years of age;

›

19% had no secondary qualifications and 31% had no prior tertiary qualification; and

›

12% have 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 opportunities for our kaimahi. In 2020 there were 1,486 full and part-time kaimahi, of this 69% were female and 68% Māori. Family-friendly working environments, and cultural leave are just some of the initiatives that we provide as we seek to ‘walk the talk’ through values-based employment policies and practices.

Te Pūrongo 2020 |

Recipients Recognised Seven scholarships were awarded by the Aotearoa Scholarship Trust to high-achieving tauira in 2020. Recipients ranged from a mother of 14 completing an arts degree in Hastings, a young wahine Māori learning whakairo (carving) in Kirikiriroa, a masters tauira who wants to teach rangatahi how to gather kaimoana in accordance with tikanga Māori and a busy Dunedin medical student who still finds the time to learn te reo Māori. Since 2012, the Aotearoa Scholarship Trust has awarded more than $500,000 to recipients throughout the country, supporting their academic journey and success.

| Te Wānanga o Aotearoa

Te Tahua Financials

Tauaki Haepapa Statement of Responsibility

Te Pūrongo a te kaitātari kaute motuhake Independent Auditor's Report

Tauaki whiwhinga moni me te utu matawhānui Statement of comprehensive revenue and expense

Tauaki nekehanga rawa Statement of changes in net assets/equity

Tauaki tūnga pūtea Statement of financial position

Tauaki kapewhiti Statements of cash flows

Ngā whakamārama ki ngā tauaki pūtea Notes to the financial statements

Te Pūrongo 2020 |

| Te Wānanga o Aotearoa

Tauaki Haepapa Statement of Responsibility

In the financial year ended 31 December 2020, 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 2020.

28 | 04 | 21 Vanessa Eparaima Te Heamana | Chairperson

28 | 04 | 21 Nepia Winiata Te Kōmaru | Acting Chief Executive Officer

Te Pūrongo 2020 |

Te Pūrongo a te kaitātari kaute motuhake

Independent Auditor's Report

To the readers of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka and Group’s financial statements and statement of service performance for the year ended 31 December 2020. The Auditor-General is the auditor of Te Wānanga o Aotearoa Te Kuratini o Ngā Waka (the Wānanga) and Group. The Auditor-General has appointed me, 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 the Wānanga and Group on his behalf. Opinion

›

the financial statements of the Wānanga and Group on pages 72 to 126, that comprise the statement of financial position as at 31 December 2020, 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 the Wānanga and Group on pages 38 to 57.

In our opinion: ›

the financial statements of the Wānanga and Group on pages 72 to 126: ›

present fairly, in all material respects:

›

the financial position as at 31 December 2020; and

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

›

comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards; and

›

the statement of service performance on pages 38 to 57:

›

presents fairly, in all material respects, the Wānanga and Group’s service performance achievements as compared with the forecast outcomes included in the investment plan for the year ended 31 December 2020; and

›

complies with generally accepted accounting practice in New Zealand.

We have audited: ›

›

Our audit was completed on 28 April 2021. This is the date at which our opinion is expressed. The basis for our opinion is explained below and we draw attention to the impact of COVID-19 on the Wānanga and Group. In addition, we outline the responsibilities of Te Mana Whakahaere and our responsibilities relating to the financial statements and the statement of service performance, we comment on other information, and we explain our independence.

| Te Wānanga o Aotearoa

Emphasis of matter – Impact of COVID-19 Without modifying our opinion, we draw attention to the disclosures about the impact of COVID-19 on the Wānanga as set out in note 25 to the financial statements and page 38 of the statement of service performance information. Basis for our opinion 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 Auditor-General’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 the Wānanga and Group for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand. Te Mana Whakahaere is also responsible on behalf of the Wānanga and Group for preparing a statement of service performance that is fairly presented and that complies with generally accepted accounting practice in New Zealand. 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 service performance, Te Mana Whakahaere is responsible on behalf of the Wānanga and Group for assessing the Wānanga 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 the Wānanga and Group or to cease operations, or has no realistic alternative but to do so. Te Mana Whakahaere’s responsibilities arise from the Education and Training Act 2020 and the Crown Entities Act 2004.

Responsibilities of the auditor for the audit of the financial statements and the statement of service 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 service performance. For the budget information reported in the financial statements and the statement of service performance, our procedures were limited to checking that the information agreed to the Wānanga and Group’s investment plan. We did not evaluate the security and controls over the electronic publication of the financial statements and the statement of service 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 fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

›

We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Wānanga and Group’s internal control.

›

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

Te Pūrongo 2020 |

›

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

›

We obtain sufficient appropriate audit evidence regarding the financial statements and the statement of service performance of the entities or business activities within the Group to express an opinion on the consolidated financial statements and the consolidated statement of service performance. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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 1 to 36 and 58 to 65, 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 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 information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the statement of service performance or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Independence We are independent of the Wānanga 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: International 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, the Wānanga or any of its subsidiaries.

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

| Te Wānanga o Aotearoa

Statement of comprehensive revenue and expense | For the year ended 31 December 2020

Group Actual 2020 $'000

Note

Group Actual 2019 $'000

Group Budget 2020 $'000

Parent Actual 2020 $'000

Parent Budget 2020 $'000

Parent Actual 2019 $'000

Revenue Government funding

Tauira fees

Interest revenue

Other revenue

Total income

133,946 3,178

1,135 15,129 153,388

130,459 3,739 925

15,410 150,533

127,858 3,488 2,325 12,999 146,670

133,946 3,178

1,097 15,117 153,338

130,459

127,858

3,739 3,488 866 2,255

15,390 16,322 150,454

149,923

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

4 14,15 5

(84,244) (11,798) (50,083) (146,125) 7,263

(89,076) (12,835) (51,942) (153,853)

(85,526) (12,250) (48,895) (146,671)

(3,320) (1)

(84,244) (11,798) (50,037) (146,079) 7,259

(89,049) (12,835) (51,869) (153,753)

(82,653) (12,107) (54,993) (149,753)

(3,299) 170

Other comprehensive revenue and expense Gains/(loss) on property revaluations

–

Total other comprehensive income Total comprehensive income

–

7,263

–

(3,320) (1)

Explanations of major variances against budget are provided in note 24. The accompanying notes form an integrated part of these financial statements.

– –

7,259

–

(3,299) 170

Te Pūrongo 2020 |

Statement of changes in net assets / equity | For the year ended 31 December 2020

Group Balance as at 1 January 2020

Note

Actual accumulated comprehensive revenue and expense $'000

Actual property revaluation reserves $'000

Actual total net assets/equity $'000

Budget $'000

155,035

34,642

189,677

187,052

7,263

–

7,263

(3,320)

2,670 (2,670)

–

Total comprehensive revenue and expense for the year Transfer of revaluation reserves on sale of property Total comprehensive income

9,933

(2,670)

7,263

(3,320)

Balance as at 31 December 2020

164,968

31,972

196,940

183,732

Balance as at 1 January 2019

155,036

34,574

189,610

176,295

Total comprehensive revenue and expense for the year

(1)

(2,021)

Group

Reversal of revaluation charge to equity

–

Balance as at 31 December 2019

– 68

–

155,035

34,642

189,677

174,274

152,826

34,642

187,468

184,495

7,259

(2,948)

Parent Balance as at 1 January 2020

Total comprehensive revenue and expense for the year

7,259

–

Transfer of revaluation reserves on sale of property

2,670

(2,670)

Total comprehensive income

9,929

(2,670)

7,259

(2,948)

Balance as at 31 December 2020

162,755

31,972

194,727

181,547

Balance as at 1 January 2019

152,962

34,574

187,536

170,140

Total comprehensive revenue and expense for the year

170

(2,116)

–

Parent

Reversal of revaluation charge to equity Transfers from DSL Balance as at 31 December 2019

–

– 68

(306) 152,826

– 34,642

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

–

(306)

–

187,468

168,024

| Te Wānanga o Aotearoa

Statement of financial position | For the year ended 31 December 2020 Group Actual 2020 $'000

Note

Group Budget 2020 $'000

Group Actual 2019 $'000

Parent Actual 2020 $'000

Parent Budget 2020 $'000

Parent Actual 2019 $'000

ASSETS Current assets Cash and cash equivalents Tauira and other receivables Other financial assets Inventories Prepayments Non-current assets held for sale Total current assets

6 7,489 3,856 7,096 5,256 3,866 7,071 7 11,490 8,635 11,640 11,490 8,635 11,637 10 59,000 33,195 38,195 59,000 31,000 36,000 8 2,215 4,589 2,399 2,215 4,589 2,399 1,240 1,129 1,130 1,240 1,129 1,126 9 911

– 2,073 911

– 2,073

82,345 51,404 62,533 80,112 49,219 60,306

Non-current assets Managed funds

10 43,497 43,582 40,687 43,497 43,582 40,687

Property, plant and equipment

14 88,083 90,577 95,657 88,083 90,577 95,657

Intangible assets

15 7,130 10,540 7,970 7,130 10,540 7,970

Total non-current assets

138,710 144,699 144,314 138,710 144,699 144,314 221,055 196,103 206,847 218,822 193,918 204,620

Total assets LIABILITIES Current liabilities Payables

11 13,545 1,764 8,228 13,524 1,765 8,210

Kaimahi entitlements

12 9,696 9,780 7,897 9,696 9,779 7,897

Provisions

13 277 440 440 277 440 440

EECA Crown loan Total current liabilities

109

–

109

–

109

23,627

11,984

16,674

23,606

11,984

16,656

Non-current liabilities Provisions

13 244 142 142 244 142 142

EECA Crown loan

245 245 354 245 245 354

Total non-current liabilities

489 387 496 489 387 496

Total liabilities

24,116 12,371 17,170 24,095 12,371 17,152

Net assets

196,939 183,732 189,677 194,727 181,547 187,468

EQUITY Accumulated funds

16 164,967 144,818 155,035 162,755 142,633 152,826

Property revaluation reserve

16 31,972 38,914 34,642 31,972 38,914 34,642

Total equity

196,939 183,732 189,677 194,727 181,547 187,468

Explanations of major variances against budget are provided in note 24. The accompanying notes form an integrated part of these financial statements. For and on behalf of Te Mana Whakahaere:

28 | 04 | 21 Vanessa Eparaima Te Heamana | Chairperson

28 | 04 | 21 Nepia Winiata Te Kōmaru | Acting Chief Executive Officer

Te Pūrongo 2020 |

Statement of cash flows | For the year ended 31 December 2020 Group Actual 2020 $'000

Note

Group Budget 2020 $'000

Group Actual 2019 $'000

Parent Actual 2020 $'000

Parent Budget 2020 $'000

Parent Actual 2019 $'000

Cash flows from operating activities Receipts from government grants

137,405 130,459 126,401 137,405 130,459 126,401

Receipts from tauira fees

3,266 3,739 3,610 3,266 3,739 3,610

Receipt from intercompany

–

– 3,390

Payment to intercompany

–

– (8,019)

Interest revenue received Dividends revenue

940 925 2,651 899 866 2,576 3 1,086 1,215 5 1,086 1,215 4

Other cash receipts from operating activities

13,407 12,289 11,177 13,395 12,265 11,103

Payments to kaimahi

(83,661) (94,853) (85,904) (83,661) (93,785) (82,973)

Payments to suppliers

(47,859) (52,111) (47,069) (47,819) (53,063) (45,146)

GST (net)

481 (432) (27) 481 (431) 58

Net cash flow from operating activites

25,065

1,231

10,844

25,052

1,265

11,007

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

3,670 723 462 3,670 723 461

Purchase of property, plant and equipment

(5,282) (5,815) (2,931) (5,282) (5,814) (2,847)

Purchase of software development

(644) (318) (287) (644) (318) (282)

Purchase of programme development

(413) (2,846) (515) (413) (2,846) (500)

Purchase of managed funds investments

(1,089)

Purchase of cash investments (net)

(20,805) 3,785 28,970 (23,000) 3,785 29,000

Net cash flow from investing activities

(24,563)

– (40,000) (1,089)

(4,471)

(14,301)

(26,758)

– (40,000)

(4,470)

(14,170)

Cash flows from financing activities Proceeds from borrowed funds

–

Repayment of borrowed funds

(109)

– (36) (109)

– (36)

Net cash flow from financing activities

(109)

– 464 (109)

– 464

Net (decrease)/increase in cash and cash equivalents

393 (3,240) (2,993) (1,815) (3,205) (2,699)

Cash and cash equivalents at the beginning of the year

7,096 7,096 10,089 7,071 7,071 9,770

Cash, cash equivalents, and bank overdrafts at the end of the year

–

500

–

500

6 7,489 3,856 7,096 5,256 3,866 7,071

Explanations of major variances against budget are provided in note 24. The accompanying notes form an integrated part of these financial statements.

| Te Wānanga o Aotearoa

Statement of cash flows continued | For the year ended 31 December 2020

Reconciliation of net surplus/(deficit) after tax to net cash flow from operating activities Group Actual 2020 $'000

Note

Surplus/(deficit) after tax

Group Actual 2019 $'000

Parent Actual 2020 $'000

Parent Actual 2019 $'000

7,263 (1) 7,259 170

Add/(less) non-cash movements Depreciation and amortisation expense

14,15 11,798 12,245 11,798 12,103

Asset impairment

1,106 1,240 1,106 1,239

Impairment/(impairment reversal) of receivables

44 (96) 44 (96)

Transfers from DynaSpeak Limited

–

– (249)

Managed funds investment net (gains)/losses

(1,721) (687) (1,721) (687)

Total non-cash items

11,227

12,702

11,227

12,311

Add/(deduct) items classified as investing or financing activities Net (gain) on disposal of property, plant and equipment

372 (317) 372 (331)

Capitalisation of labour

(1,108) (928) (1,108) (928)

Total items classified as investing or financing activities

(736)

(1,245)

(736)

(1,259)

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

186 (205) 186 (206)

(Increase)/decrease in tauira and other receivables

300 (1,212) 300 (1,213)

(Increase)/decrease in prepayments

(115) (313) (115) (341)

(Increase)/decrease in interest accrued

(194) 334 (198) 327

Increase/(decrease) in payables

3,499 690 3,494 611

Increase/(decrease) in net GST

481 (27) 481 58

Increase/(decrease) in revenue received in advance

1,311 6 1,311 (2)

Increase/(decrease) in provisions

(61)

Increase/(decrease) in provision for kaimahi entitlements

1,799 295 1,799 604

Increase/(decrease) in fees-free income received in advance

105 (178) 105 (178)

Net movement in working capital items

7,311

(612)

7,302

(215)

Net cash inflow/(outflow) from operating activities

25,065

10,844

25,052

11,007

– (61) 125

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

1. Statement of accounting policies for the year ended 31 December 2020 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 and Training Act 2020. 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 subsidiary Aotearoa Scholarship Trust (100% controlled). The subsidiary is 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: › 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

› Any other activity or occupation incidental to an educational and research institution. The financial statements of Te Wānanga o Aotearoa and Group are for the year ended 31 December 2020. The financial statements were authorised for issue on 28 April 2021 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 2020, 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.

Statement of compliance The financial statements and service performance information comply with Public Benefit Entity International Public Sector Accounting Standards ("PBE IPSAS") for Tier 1 entities. The financial statements of the Te Wānanga o Aotearoa and Group have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education and Training Act 2020, 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 Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars. There has been no change in the functional currency of the Group during the year. There have been no changes to the cost allocation methodology since the date of the last audited financial statements. Standards, amendments, and interpretations issued that are not yet effective and have not been early adopted Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and which are relevant to Te Wānanga o Aotearoa and Group, are: Amendment to PBE IPSAS 2 Statement of Cash flows An amendment to PBE IPSAS 2 Statement of Cash flows requires entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. This amendment is effective for annual periods beginning on or after 1 January 2021, with early application permitted. Te Wānanga o Aotearoa does not intend to early adopt the amendment.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

2. Summary of significant accounting policies (continued) PBE FRS 48 Service Performance Reporting PBE FRS 48 replaces the service performance reporting requirements of PBE IPSAS 1 Presentation of Financial Statements and is effective for annual reporting periods beginning on or after 1 January 2022. Te Wānanga o Aotearoa has not yet determined how application of PBE FRS 48 will affect its statement of service performance. Te Wānanga o Aotearoa does not plan to adopt the standard early. 2.2 Basis of consolidation The consolidated financial statements are prepared by adding together like items of assets, liabilities, equity, revenues, expenses and cash flows 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 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 the 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.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

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 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. Revenue recognition Revenue is recognised when the amount of revenue can be measured reliably and it is probable that economic benefits will flow to Te Wānanga o Aotearoa and is measured at the fair value of consideration received or receivable. 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 on a time proportion basis that takes into account the effective yield on the asset. Dividend revenue Dividends are recognised when the right to receive payment has been established. Contract revenue Certain contract revenue is accounted for as an exchange transaction and is recognised on percentage of completion basis. 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 non-exchange 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. 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 Funding (SAC) SAC funding is Te Wānanga o Aotearoa's main source of operational funding from the Tertiary Education Commission (TEC). In response to the COVID-19 pandemic,the TEC confirmed that it will not seek repayment of 2020 investment plan funding, which includes SAC funding, if there is under-delivery in the 2020 year. Therefore Te Wānanga o Aotearoa has recognised in full the 2020 investment plan funding as revenue during the financial year. Other government grants 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. Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and then recognised as revenue when the conditions of the grant are satisfied. 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. Fees-free revenue Te Wānanga o Aotearoa considers fees-free revenue is non-exchange revenue and has presented funding received for fees-free as part of tuition fees. This is on the basis that receipts from the TEC are for payment on behalf of the student as specified in the relevant funding mechanism. In response to the COVID-19 pandemic,the TEC confirmed that it will not seek repayment of 2020 fees- free funding if there is under-delivery in the 2020 year. Therefore Te Wānanga o Aotearoa has recognised in full the 2020 funding as revenue during the financial year.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

3. Revenue (continued) Performance Based Research Fund (PBRF) Te Wānanga o Aotearoa considers PBRF funding to be non-exchange in nature. PBRF funding is specifically identified by the TEC as being for a funding period as required by section 425 of the Education and Training Act 2020. Te Wānanga o Aotearoa recognises its confirmed allocation of PBRF funding at the commencement of the specified funding period, which is the same as Te Wānanga o Aotearoa's financial year. PBRF revenue is measured based on Te Wānanga o Aotearoa's funding entitlement adjusted for any expected adjustments as part of the final wash-up process. Indicative funding for future periods is not recognised until confirmed for that future period. Research and contract revenue For a non-exchange research contract, the total funding receivable under the contract is recognised as revenue immediately, unless there are substantive conditions in the contract. If there are substantive conditions, revenue is recognised when the conditions are satisfied. A condition could include the requirement to complete research to the satisfaction of the funder to retain funding or return unspent funds. Revenue for future periods is not recognised where the contract contains substantive termination provisions for failure to comply with the requirements of the contract. Conditions and termination provisions need to be substantive, which is assessed by considering factors such as contract monitoring mechanisms of the funder and the past practice of the funder.

Contract revenue Certain contract revenue is accounted for as a nonexchange transaction and is recognised as revenue immediately based on hours of delivery each month, unless there are substantive conditions in the contract. If there are substantive conditions, revenue is recognised when the conditions are satisfied.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

3. Revenue (continued) Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Government funding Student Achievement Component funding

130,726 126,249 130,726 126,249

Other government funding

3,044 1,432 3,044 1,432

Performance based research funding

176

Total government funding

133,946 127,858 133,946 127,858

177

176

177

Tauira fees Fees from domestic tauira

3,178 3,488 3,178 3,488

Total tauira fees

3,178 3,488 3,178 3,488

Interest revenue Interest revenue Total interest revenue

1,135 2,325 1,097 2,255 1,135

2,325

1,097

2,255

Breakdown of other revenue Contract revenue*

6,897 6,737 6,897 6,737

Profit on sale of property, plant and equipment

84 334 84 334

Donation from DynaSpeak Limited

–

– 3,379

Dividends from external sources

1,086 145 1,086 144

Miscellaneous revenue

5,341 4,948 5,329 4,893

Gains on managed funds investment (note 10)

1,721 835 1,721 835

Total other revenue

15,129 12,999 15,117 16,322

Total revenue

153,388 146,670 153,338 149,923

*Contract revenue relates to licences and sub contracting arrangements.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

3. Revenue (continued) Revenue classified as exchange or non-exchange transactions: Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Revenue from exchange transactions Contract revenue*

3,812 3,045 3,812 3,045

Profit on sale of property, plant and equipment

84 334 84 334

Interest revenue

1,135 2,325 1,097 2,255

Dividends from external sources

1,086 145 1,086 144

Miscellaneous revenue

463 588 463 545

Total revenue from exchange transactions

6,580 6,437 6,542 6,323

Revenue from non-exchange transactions Student Achievement Component funding

130,726 126,249 130,726 126,249

Other government funding

3,044 1,432 3,044 1,432

Fees from domestic tauira

3,178 3,488 3,178 3,488

Donation from DynaSpeak Limited

–

– 3,379

Miscellaneous revenue

4,878 4,360 4,866 4,348

Contract revenue

3,085 3,692 3,085 3,692

PBRF revenue

176 177 176 177

Gains on managed funds investment

1,721 835 1,721 835

Total revenue from non-exchange transactions

146,808 140,233 146,796 143,600

Total exchange and non-exchange transactions

153,388 146,670 153,338 149,923

* Contract revenue relates to licences and subcontracting arrangements.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

4. Kaimahi costs Accounting Policy Superannuation Schemes Employer contributions to KiwiSaver are accounted for as defined contribution schemes and are recognised as an expense in the surplus or deficit when incurred.

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Wages and salaries

80,572 82,030 80,572 79,292

Other kaimahi costs

1,980 2,364 1,980 2,309

Employer contributions to defined contribution plans*

1,881 1,804 1,881 1,741

Increase/(decrease) in employee entitlements

919 257 919 239

Capitalised internal labour

(1,108) (929) (1,108) (928)

Total kaimahi costs

84,244 85,526 84,244 82,653

*Employer contributions to defined contribution plans include contributions to KiwiSaver.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

5. Other expenses Accounting policy Scholarships Scholarships awarded by Te Wānanga o Aotearoa Group that reduce the amount of tuition fees payable by the student are accounted for as an expense and not offset against student tuition fees revenue. Operating leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee. Lease payments under an operating lease are recognised as an expense 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.

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Audit fees for financial statements audit (Audit NZ)

259 251 246 241

Audit fees for internal audits (other service providers)*

86 49 86 49

Loss on managed funds investment

– 290

Impairment/(impairment reversal) of receivables

Bad debts written-off

162 258 162 258

Minimum lease payments – operating lease

4,019 4,097 4,019 4,097

Consultancy fees

5,004 2,909 5,004 2,895

Small capital purchases

358 433 358 407

Loss on sale/ disposal

456 17 456 3

He Kupu Whakatau-TARM Learning hours settlement

2,621 – 2,621 –

Contract tutors

6,754 7,494 6,754 7,494

Rent

1,703 2,052 1,703 1,047

Impairment of intangibles, inventory and PPE

1,093 1,336 1,093 1,336

Sponsorship and koha

212 414 212 414

Occupancy expenses

6,053 6,994 6,053 6,767

Administration

13,733 10,940 13,700 10,692

Satellite payments

400 757 400 757

Intercompany expenses

–

(96) 44

–

(96)

– 7,735

Tauira resources

6,189 9,068 6,189 8,981

Travel

937 1,632 937 1,626

Total other expenses

50,083 48,895 50,037 54,993

*The fees paid to audit firms for internal audits were for planning and undertaking internal audits.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

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 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Cash at bank and in hand

7,489 7,096 5,256 7,071

Total cash and cash equivalents

7,489 7,096 5,256 7,071

While cash and cash equivalents at 31 December 2020 are subject to the expected credit loss requirement of PBE IFRS 9, no loss allowance has been recognised because the estimated loss allowance for credit loss is trivial. There are no restrictions over any of the cash and cash equivalent balances held by Te Wānanga o Aotearoa and Group at 31 December 2020 (2019: nil).

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

7. Tauira and other receivables Accounting policy Tauira fees and other receivables are recorded at the amount due, less an allowance for credit losses. Te Wānanga o Aotearoa applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables. In measuring expected credit losses, tauira fees and other receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due. Tauira fees and other receivables are written-off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the debtor being in liquidation.

The expected credit loss rates for receivables at 31 December 2020 are based on the following: ›

Debt is over $150

›

Age of debt is over 365 days

›

Automatic Payments stopped and minimal or no contact with Te Wānanga o Aotearoa or collection agency around debt

There have been no changes in the estimation technique or significant assumptions used in measuring the loss allowance.

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Tauira receivables Tauira fee receivables

673 656 673 656

Less: Allowance for credit losses

(183) (139) (183) (139)

Net tauira receivables

490 517 490 517

Other receivables Trade receivables

1,714 1,572 1,714 1,572

Accrued interest

522 327 522 324

TEC funding receivable

8,764 9,224 8,764 9,224

Total other receivables

11,000 11,123 11,000 11,120

Gross tauira and other receivables

11,490 11,640 11,490 11,637

Total receivables above comprise: Receivables from exchange transactions

1,147 766 1,147 763

Receivables from non-exchange transactions

10,343 10,874 10,343 10,874

Total receivables

11,490 11,640 11,490 11,637

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

7. Tauira and other receivables (continued) (a) Fair value

(b) Impairment

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.

The carrying amount of receivables that would otherwise be past due or impaired and whose terms have been renegotiated is nil (2019: nil).

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.

2020 Gross $'000

2020 Provision for uncollectability $'000

2020 Net $'000

2019 2019 Provision for Gross uncollectability $'000 $'000

2019 Net $'000

Group Not past due

10,231

– 10,231 10,596

– 10,596

Past due 1-60 days

460

– 460 148

– 148

Past due 61-120 days

267

– 267 268

– 268

Past due > 120 days

715 (183) 532 767 (139) 628

Total

11,673 (183) 11,490 11,779 (139) 11,640

Parent Not past due

10,231

– 10,231 10,593

– 10,593

Past due 1-60 days

460

– 460 148

– 148

Past due 61-120 days

267

– 267 268

– 268

Past due > 120 days

715 (183) 532 767 (139) 628

Total

11,673 (183) 11,490 11,776 (139) 11,637

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.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

7. Tauira and other receivables (continued) The movement in the allowance for credit losses are as follows:

Group 2020 $'000

Allowance for credit losses as at 1 January calculated under PBE IPSAS 29

PBE IFRS 9 expected credit loss adjustment-through opening accumulated surplus/deficit

Group 2019 $'000

Parent 2020 $'000

139

235

139

–

Parent 2019 $'000

235 –

Opening allowance for credit losses as at 1 Jan

139

235

139

235

Increase in loss allowance made during the year

206

161

206

161

Receivables written-off during the period

(162)

(257)

(162)

(257)

Balance at 31 December

183 139 183 139

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

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.

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.

›

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

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Inventories held for distribution

2,077 2,196 2,077 2,196

Work in progress

138 203 138 203

Total inventory

2,215 2,399 2,215 2,399

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

8. Inventory (continued)

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 2020 is $2.5 million (2019: $2.9 million) and Parent 2020 is $2.5 million (2019: $2.8 million). 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 $0.14 million in 2020 (2019: $0.56 million). There have been no reversals of write-downs in 2020 (2019: nil). No inventories are pledged as security for liabilities (2019: nil). 9. Assets held for sale

Accounting policy A non-current asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use. The asset is measured at the lower of its carrying amount and fair value less costs to sell. Write-downs of the asset are recognised in the surplus or deficit. Any increases in fair value less costs to sell are recognised in the surplus or deficit up to the level of any impairment losses that have previously been recognised. Non-current assets held for sale (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Land

517 640 517 640

Buildings

394 1,433 394 1,433

Total

911 2,073 911 2,073

Te Wānanga o Aotearoa owns land and buildings (6 warehouses) at Rickit Road in Te Awamutu. Te Mana Whakahaere has agreed to sell part of the property, as it will provide no future use to Te Wānanga o Aotearoa. Warehouses 1 and 2 were sold in 2020. Warehouses 3, 4 and 5 are being held for sale and settlement is anticipated in mid-2021. Warehouse 6 is being retained for use by Te Wānanga o Aotearoa.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

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 Te Wānanga o Aotearoa 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 Te Wānanga o Aotearoa and Group has transferred substantially all the risks and rewards of ownership.

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 that are managed together and for which there is evidence of short-term profit-taking. Derivatives are also categorised as held for trading.

Term deposits Term deposits are initially measured at the amount invested. Where applicable, interest is subsequently accrued and added to the investment balance. A loss allowance for expected credit losses is recognised if the estimated loss allowance is not trivial.

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.

At year end, term deposits are assessed for indicators of impairment. If they are impaired, the amount not expected to be collected is recognised in the surplus or deficit. Managed fund The managed fund is a portfolio of financial assets that are actively traded with the intention of making profits. Therefore, the managed fund is measured at fair value through surplus/deficit. After initial recognition, the managed fund is measured at fair value, with gains and losses recognised in the surplus or deficit. The financial assets are classified into the following categories for the purpose of measurement: › › ›

Fair value through surplus or deficit; Amortised cost; 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 acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held-for-trading are classified as a current asset.

Amortised cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. 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 non-current assets unless management intends to dispose of, or realise, the investment within 12 months of balance date. Te Wānanga o Aotearoa 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.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

10. Other financial assets (continued) 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 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Current portion Term deposits with maturities <12 months

59,000 38,195 59,000 36,000

Total current portion

59,000 38,195 59,000 36,000

Non-current portion Managed funds

43,497 40,687 43,497 40,687

Total non-current portion

43,497 40,687 43,497 40,687

Total other financial assets

102,497 78,882 102,497 76,687

Fair value Term deposits Te Wānanga o Aotearoa considers there has not been a significant increase in credit risk for investments in term deposits because the issuer of the investment continues to have low credit risk at balance date. Term deposits are held with banks that have a long term AA-investment grade credit rating, which indicates the bank has a very strong capacity to meet its financial commitments. No loss allowance for expected credit losses has been recognised because the estimated 12-month expected loss allowance for credit losses is trivial. The carrying amount of term deposits approximates their fair value. The weighted average effective interest rate for term deposits is 1.4% (2019: 2.94%).

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

10. Other financial assets (continued) Managed funds The managed fund is measured at fair value and consists of listed shares and listed bonds. The fair value of the managed fund investments is determined using quoted market bid prices from independently sourced market information. Therefore the carrying value of managed funds approximates their fair value. Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Fixed interest fund Fixed interest - NZ

6,712

6,418

6,712

6,418

Fixed interest - International

13,840

13,124

13,840

13,124

Equity securities - NZ

12,918

11,011

12,918

11,011

Equity securities - Australia

9,396

9,721

9,396

9,721

Equity

Cash Cash - NZD

–

Cash - AUD Total managed funds

631 408

631 408 –

43,497

40,687

43,497

40,687

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Gains in market value of investments

Unrealised gains on assets at fair value through surplus or deficit Equity securities - NZ

839

716

839

716

Equity securities - Australia

201

106 201

106

Fixed interest - NZ

338 –

338

–

Fixed interest - International

397 –

397

–

Total unrealised gains on assets at fair value through surplus or deficit

1,775 822

Realised gains on assets at fair value through surplus or deficit Fixed interest - International

–

Fixed interest - NZ

Equity securities - NZ

218 18

Cash Total realised gains on assets at fair value through surplus or deficit

239

Total gain in market value of investments

–

– 218

–

13 239

2,014 835

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

10. Other financial assets (continued) Losses in market value of investments

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Unrealised losses on assets at fair value through surplus or deficit Fixed interest - NZ

– 112

Fixed interest - International

–

117

–

117

260

–

260

–

260

229

260

229

–

294

290

294

290

Equity securities - NZ Total unrealised losses on assets at fair value through surplus or deficit

Realised losses on assets at fair value through surplus or deficit Cash Equity securities - NZ Total realised losses on assets at fair value through surplus or deficit Total loss in market value of investments

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

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

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

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Payables and deferred revenue under exchange transactions Trade payables

1,927 2,416 1,927 2,416

Accrued expenses

3,579 2,562 3,566 2,552

Revenue in advance

1,417

Total

6,923 4,978 6,902 4,960

– 1,409 (8)

Payables and deferred revenue under non-exchange transactions Other government funding

3,406 406 3,406 406

Taxes payable (GST, PAYE)

3,216 2,844 3,216 2,844

Total

6,622 3,250 6,622 3,250

Total current portion

13,545 8,228 13,524 8,210

Total non-current portion Total payables and deferred revenue

–

13,545 8,228 13,524 8,210

Creditors and other payables are non-interest bearing and are normally settled on terms varying between 7 days and 20 th 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.

Te Pūrongo 2020 |

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

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.

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Current portion Annual leave

6,412 5,398 6,412 5,398

Accrued salaries

3,023 2,143 3,023 2,143

Sick leave

261 356 261 356

Total current portion

9,696 7,897 9,696 7,897

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

–

9,696 7,897 9,696 7,897

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.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

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. 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 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Current Portion Lease make-good Total current portion

277 440 277 440 277

440

277

440

Non-current portion Lease make-good Total non-current portion Total provisions

244 142 244 142 244

142

244

142

521 582 521 582

Movements for lease make-good provisions are as follows: Group 2020 $'000

Balance at 1 January

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

582 582 582

445

Additional provisions

–

Unused amounts reversed

– (125)

125

–

125

– (125)

Movement in other provisions

(61)

Balance at 31 December

521 582 521

– (61) 137 582

In respect of a number of leased premises, Te Wānanga o Aotearoa is required at the expiry of the lease term to makegood 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 February 2021, August 2021, December 2021, May 2022, March 2023, November 2023, December 2023, November 2024, January 2025, December 2025 and April 2026. Information about Te Wānanga o Aotearoa leasing arrangements are disclosed in note 22.

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

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.

(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 › All other asset classes are stated at cost less accumulated losses on disposals are recognised in the surplus or deficit. depreciation and impairment losses. When revalued assets are sold, the amounts included in the revaluation reserve in respect of those assets are transferred › Items of property, plant and equipment that have been to accumulated surplus/(deficit) within equity. acquired through non-exchange transactions are measured at fair value. (iv) Subsequent costs Costs incurred subsequent to initial acquisition are (i) Revaluation capitalised only when it is probable that future economic Land, buildings and artwork are revalued with sufficient benefits or service potential associated with the item will regularity to ensure that the carrying amount does not differ flow to Te Wānanga o Aotearoa and the cost of the item can materially from fair value and at least every three years for be measured reliably. land and buildings and at least every five years for artwork. The costs of day-to-day servicing of property, plant and The carrying values of revalued classes are assessed equipment are recognised in the surplus or deficit as they annually to ensure that they do not differ materially from fair are incurred. value. If there is evidence supporting a material difference, (v) Depreciation then the off-cycle asset classes are revalued. Depreciation is provided on a straight line basis on all Property, plant and equipment revaluation movements are property, plant and equipment (excluding land and artwork) accounted for on a class-of-asset basis. at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives. 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.

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

14. Property, plant and equipment (continued) The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Class of asset depreciated

Estimated useful life

Buildings

Depreciation rates

1-50 years

2%-100%

Leasehold improvements

Expiry of lease including renewal periods

Furniture and equipment

2-19 years

5%-50%

Computers

2-5 years

20%-50%

Motor vehicles

1-5 years

20%-100%

5-10 years

10% -20%

10 years

10%

Waka Library books

Leasehold improvements are depreciated over the noncancellable period for which Te Wānanga o Aotearoa has contracted to lease the asset together with any further terms for which Te Wānanga o Aotearoa has the option to continue to lease the asset.

revaluation reserve, the balance is recognised in the surplus or deficit.

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

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

(vi) Impairment Te Wānanga o Aotearoa does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return.

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

Property, plant, and equipment are reviewed for impairment at each balance date and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of an asset's fair value less costs to sell and value in use.

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

Value in use is the present value of an asset's remaining service potential. It is determined using an approach based on either a depreciated replacement cost approach, a 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.

For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, a 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.

If an asset's carrying amount exceeds its recoverable service amount, the asset is considered to be impaired and the carrying amount is written-down to the recoverable service amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the

Cash-generating assets are those assets that are held with the primary objective of generating a commercial return.

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.

Value in use for cash-generating assets

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

100

| Te Wānanga o Aotearoa

14. Property, plant and equipment (continued)

Group 2020 Cost Balance as at 1 January 2020 Revaluation surplus

Land $'000

Buildings $'000

Leasehold Improvements $'000

Furniture & Equipment $'000

31,623 54,075 8,890 6,035 –

–

Additions

– 990 1,243 1,000

Disposals

(350) (1,163) (106) (450)

Reclassification

(873) (1,363)

–

Revaluation reversal

–

Impairment charge recognised in profit and loss

–

Balance as at 31 December 2020

30,400 52,539 10,027 6,585

Accumulated depreciation Balance as at 1 January 2020

– (5,615) (4,494) (3,629)

Disposals

– 142 107 451

Reclassification

– 349

–

Impairment charge recognised in profit and loss

–

Depreciation charge (note 5)

–

Balance as at 31 December 2020

– (10,751) (5,012) (4,165)

– (5,627)

(625)

(987)

Net book value As at 1 January 2020

31,623 48,460 4,396 2,406

As at 31 December 2020

30,400 41,788 5,015 2,420

Group 2019 Cost Balance as at 1 January 2019 Additions Disposals Reclassification Revaluation reversal

Land $'000

Buildings $'000

Leasehold Improvements $'000

Furniture & Equipment $'000

32,033

54,747

8,991

5,654

–

1,170

194

936

–

(20)

(295)

(410)

(1,910)

–

(4)

–

Impairment charge recognised in profit and loss

–

Intercompany transfer

–

(275)

(256)

31,623

54,075

8,890

6,035

Balance as at 31 December 2019 Accumulated depreciation Balance as at 1 January 2019

– (18) (4,038) (3,295)

Disposals

–

14 300

Reclassification

– 247

–

Impairment charge recognised in profit and loss

–

Depreciation charge (note 5)

–

Intercompany transfer

–

Balance as at 31 December 2019

– (5,615) (4,494) (3,629)

– (5,844)

(745)

–

275

(891) 257

Net book value As at 1 January 2019

32,033 54,729 4,953 2,359

As at 31 December 2019

31,623 48,460 4,396 2,406

Te Pūrongo 2020 |

Computers $'000

Motor Vehicles $'000

Artwork $'000

Library Books $'000

Waka $'000

Work in Progress $'000

Total $'000

6,796 8,148 3,695 2,799 745 286 123,092 –

–

1,116 68 8 49 – 5,550 10,024

(180) (153) (82) –

–

– (2,484)

–

– (4,796) (7,032)

–

– (16)

–

– (16)

–

7,732 8,063 3,621 2,832 745 1,040 123,584

(4,565) (6,760)

– (1,801) (571)

– (27,435)

177

–

– 1,030

153

–

– 349

–

– 11

–

– 11

(38)

– (9,456)

– (2,055) (609)

– (35,501)

(1,279)

(635)

(5,667) (7,242)

–

(265)

2,231 1,388 3,695 998 174 286 95,657

2,065 821 3,621 777 136 1,040 88,083

Computers $'000

Motor Vehicles $'000

Artwork $'000

Library Books $'000

Waka $'000

Work in Progress $'000

Total $'000

9,639

9,116

3,675

2,962

736

445

127,998

522

2,202

5,121

(3,323)

(904)

–

(4,542)

–

(2,361)

(4,685)

–

(200)

–

(200)

(42)

(92)

–

(3)

–

(668)

6,796

8,148

3,695

2,799

745

286

123,092

(6,621) (6,807)

– (1,682) (534)

– (22,995)

3,317 773

–

– 4,404

–

– 247

–

– 172

–

– 172

(37)

– (9,930)

–

– 667

– (1,801) (571)

– (27,435)

(1,301)

(818)

(4,565) (6,760)

– –

(294) 3

3,018 2,309 3,675 1,280 202 445 105,003

2,231 1,388 3,695 998 174 286 95,657

101

102

| Te Wānanga o Aotearoa

14. Property, plant and equipment (continued)

Parent 2020 Cost Balance as at 1 January 2020

Land $'000

Buildings $'000

Leasehold Improvements $'000

Furniture & Equipment $'000

31,623 54,075 8,890 6,035

Additions

– 990 1,244 1,000

Disposals

(350) (1,163) (107) (450)

Revaluation correction Reclassification Impairment charge recognised in profit and loss Balance as at 31 December 2020

–

(873) (1,363)

–

30,400 52,539 10,027 6,585

Accumulated depreciation Balance as at 1 January 2020

– (5,615) (4,494) (3,629)

Disposals

– 490 –

106 –

451

Impairment charge recognised in profit and loss

–

Depreciation charge (note 5)

– (5,626) (624) (987)

–

Balance as at 31 December 2020

– (10,751) (5,012) (4,165)

Net book value As at 1 January 2020

31,623 48,460 4,396 2,406

As at 31 December 2020

30,400 41,788 5,015 2,420

Parent 2019 Cost Balance as at 1 January 2019

Land $'000

Buildings $'000

Leasehold Improvements $'000

Furniture & Equipment $'000

32,033 54,747 8,623 5,296

Additions

– 1,170 194

Disposals

–

930

– (254)

Reclassification

(640) (1,680)

– (4)

Revaluation correction

230 (230)

–

Revaluation reversal

– 68

–

Impairment charge recognised in profit and loss

–

Intercompany transfer

–

– 73 67

Balance as at 31 December 2019

31,623 54,075 8,890 6,035

Accumulated depreciation Balance as at 1 January 2019

– (18) (3,767) (3,028)

Disposals

–

Reclassification

– 247

Impairment charge recognised in profit and loss

–

Depreciation charge (note 5)

–

Balance as at 31 December 2019

– (5,615) (4,494) (3,629)

– – (5,844)

– 259 – – (727)

– – (860)

Net book value As at 1 January 2019

32,033 54,729 4,856 2,268

As at 31 December 2019

31,623 48,460 4,396 2,406

Te Pūrongo 2020 |

Computers $'000

Motor Vehicles $'000

Artwork $'000

Library Books $'000

Waka $'000

Work in Progress $'000

Total $'000

6,796 8,148 3,695 2,799 745 286 123,092

1,116 68 8

(180) (153) (82)

–

– 5,550 10,025 –

– (2,485) –

–

– (4,796) (7,032)

–

– (16)

–

– (16)

7,732 8,063 3,621 2,832 745 1,040 123,584

(4,565) (6,760)

– (1,801) (571)

– (27,435)

177 153

–

– 1,377

–

(1,279) (635)

– (265) (38)

– (9,454)

(5,667) (7,242)

– (2,055) (609)

– (35,501)

2,231 1,388 3,695 998 174 286 95,657

2,065 821 3,621 777 136 1,040 88,083

Computers $'000

Motor Vehicles $'000

Artwork $'000

Library Books $'000

Waka $'000

Work in Progress $'000

Total $'000

9,402 9,024 3,675 2,957 736 445 126,938

471

(3,154) (904)

–

9 2,202 5,064 –

– (4,312)

–

– (2,361) (4,685)

–

– 68

–

– (200)

–

– (200)

–

– 2

–

– 219

6,796 8,148 3,695 2,799 745 286 123,092

(6,425) (6,715)

– (1,680) (534)

– (22,167)

3,148 773

–

– 4,180

–

– 247

–

– 172

– – (1,288)

(818)

(4,565) (6,760)

–

– 172

(37)

– (9,867)

– (1,801) (571)

– (27,435)

–

(293)

2,977 2,309 3,675 1,277 202 445 104,771

2,231 1,388 3,695 998 174 286 95,657

103

104

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

14. Property, plant and equipment (continued) Valuation

Artwork

The most recent valuation of land and buildings were performed by independent valuers. Bayleys Valuation Services as at 31 December 2018.

The most recent valuation of artwork was performed by an independent valuer, Erika Chamberlain of Antique and Art on 28 November 2018. The valuation was undertaken in accordance with PBE IPSAS 17 using fair value and is effective as at 31 December 2018. Determination of fair value has been made by:

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

›

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 proces 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 knowlegable participants in the market.

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

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.

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

Impairment No impairment losses (2019: nil) have been recognised for leasehold improvements due to no longer being in our current property portfolio or the improvement no longer exists. Impairment losses of $0.0 million (2019: $0.03 million) have been recognised for library books due to no longer being in our current library collection. The impairment loss has been recognised in the statement of comprehensive revenue and expense in the line item "Other expenses".

Te Pūrongo 2020 |

105

Notes to the financial statements | For the year ended 31 December 2020

14. Property, plant and equipment (continued) Work in progress The value of work in progress is disclosed at cost by class of asset as follows:

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Class Equipment

582

Buildings

368

155

368

155

Leasehold improvements

Total

1,040

286

1,040

286

Restrictions of title Under the Education and Training Act 2020, 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: ›

Restrictions on title on property, plant and equipment.

›

Property, plant and equipment pledged as security for liabilities.

›

Compensation for items of property, plant and equipment that were impaired, lost or given up.

Leasing The net carrying amount of property, plant and equipment held under finance leases is nil (2019: nil).

106

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

15. Intangible assets Accounting policy

Amortisation

Intangible assets are initially recorded at cost except for:

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

›

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. Costs associated with maintaining computer software programmes are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred. 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.

Class of intangible asset

Estimated useful life

Computer software

Finite – 5 years

Method used 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.

Te Pūrongo 2020 |

107

Notes to the financial statements | For the year ended 31 December 2020

15. Intangible assets (continued) Impairment of intangible asset 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.

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:

The total impairment loss is recognised in the surplus or deficit. Group 2020 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

Year ended 31 December 2020 Opening net book value

1,496 5,259 1,215 7,970

Additions

323

168 1,824 2,315

–

– (354) (354)

Reclassification Impairment (net)

(27) (127) (306) (460)

Amortisation

(735) (1,606)

Closing net book value

1,057 3,694 2,379 7,130

– (2,341)

At 31 December 2020 Cost

4,662 11,366 2,379 18,407

Accumulated amortisation and impairment

(3,605) (7,672)

Net book value

1,057 3,694 2,379 7,130

– (11,277)

108

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

15. Intangible assets (continued)

Group 2019 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

Year ended 31 December 2019 Opening net book value

1,911 6,273 1,575 9,759

Additions

57 1,595 2,212 3,864

Disposals

(6)

–

– (6)

Reclassification

–

Impairment (net)

(70) (685)

– (755)

Amortisation

(396) (1,924)

– (2,320)

Closing net book value

1,496 5,259 1,215 7,970

– (2,572) (2,572)

At 31 December 2019 Cost

4,487 11,398 1,215 17,100

Accumulated amortisation and impairment

(2,991) (6,139)

Net book value

1,496 5,259 1,215 7,970

Parent 2020 Software $'000

Programme Development $'000

– (9,130)

Work in Progress $'000

Total $'000

Year ended 31 December 2020 Opening net book value

1,496 5,259 1,215 7,970

Additions

323 168 1,824 2,315

Reclassification

–

– (354) (354)

Impairment (net)

(27) (127) (306) (460)

Amortisation

(735) (1,606)

Closing net book value

1,057 3,694 2,379 7,130

– (2,341)

At 31 December 2020 Cost

4,662 11,366 2,379 18,407

Accumulated amortisation and impairment

(3,605) (7,672)

Net book value

1,057 3,694 2,379 7,130

– (11,277)

Te Pūrongo 2020 |

109

Notes to the financial statements | For the year ended 31 December 2020

15. Intangible assets (continued)

Parent 2019 Software $'000

Programme Development $'000

Work in Progress $'000

Total $'000

Year ended 31 December 2019 Opening net book value

1,778 6,171 1,558 9,507

Additions

48 1,596 2,229 3,873

Reclassification

–

– (2,572) (2,572)

Impairment (net)

(70) (685)

– (755)

Amortisation

(364) (1,876)

– (2,240)

Intercompany transfer

104

–

Closing net book value

1,496

157

5,259 1,215 7,970

At 31 December 2019 Cost

4,487 11,398 1,215 17,100

Accumulated amortisation and impairment

(2,991) (6,139)

Net book value

1,496 5,259 1,215 7,970

– (9,130)

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 $0.46 million in 2020 for the Group and Parent (2019: $0.75 million for Group and Parent). Programme development has been impaired due to programmes either being redeveloped to align with NZQA Targeted Review of Qualification (TRoQ) changes or programmes no longer being delivered. Software has been impaired as applications are no longer used. There were no contractual commitments for the acquisitions of intangible assets for Te Wānanga o Aotearoa and Group (2019: nil).

110

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

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 reserve Property revaluation reserve This reserve relates to the revaluation of property, plant, and equipment to fair value. Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Accumulated funds Balance at 1 January

155,035 155,036 152,826 152,962

Transfers from reserves upon sale of property

2,670

Transfers from DSL

–

– 2,670 –

–

– (306)

Surplus/(deficit)

7,263 (1) 7,259 170

Balance at 31 December

164,967 155,035 162,755 152,826

Property, plant and equipment revaluation reserve Balance at 1 January

34,642 34,574 34,642 34,574

Property revaluation reserve transfer on disposal

(2,670)

Reversal of revaluation charge in equity Balance at 31 December

– (2,670)

– 68

–

– 68

31,972 34,642 31,972 34,642

Property revaluation reserves for each asset class consist of: Land

20,688 21,537 20,688 21,537

Buildings

11,284 13,105 11,284 13,105

Total

31,972 34,642 31,972 34,642

Te Pūrongo 2020 |

111

Notes to the financial statements | For the year ended 31 December 2020

16. Equity (continued) Capital management The capital of Te Wānanga o Aotearoa is its net assets/equity, which comprises of accumulated funds and the property revaluation reserve. Equity is represented by net assets. Te Wānanga o Aotearoa is subject to the financial management and accountability provisions of the Education and Training Act 2020, 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 and Training Act 2020 for the year ended 31 December 2020. 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.

112

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

17. Early learning centres During 2020, Te Wānanga o Aotearoa received total grants of $2.6 million from the Ministry of Education for early learning purposes (2019: $2.4 million). These grants have been classified as non-exchange revenue.

2020 $'000

2019 $'000

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

528 473 5 533

4 477

Funds applied to: Salaries

514 477 –

–

Property occupancy costs

–

Resources

–

533

477

Faculty support Provision of meals for tamariki

Total funds applied Nga Kākano o te Manukau Bulk funding

385 379

Low socio-economic

Special needs

Language and kaupapa

417

408

389

408

Faculty support

–

Provision of meals for tamariki

–

417

408

423

323

Low socio-economic

Special needs

458

351

Total Ministry of Education funding received Funds applied to: Salaries

Property occupancy costs Resources Total funds applied Te Rau Oriwa Bulk funding

Language and kaupapa Total Ministry of Education funding received

Te Pūrongo 2020 |

113

Notes to the financial statements | For the year ended 31 December 2020

17. Early learning centres (continued)

2020 $'000

2019 $'000

Funds applied to: 458

351

Faculty support

–

Resources

–

Property occupancy costs

–

Provision of meals for tamariki

–

458

351

653

616

Low socio-economic

Special needs

688

644

642

582

–

Property occupancy costs

Provision of meals for tamariki

688

644

498

456

Low socio-economic

Special needs

–

Salaries

Total funds applied Raroera Te Puawai Bulk funding

Language and kaupapa Total Ministry of Education funding received Funds applied to: Salaries Faculty support

Resources Total funds applied Whare Amai Bulk funding

Language and kaupapa Total Ministry of Education funding received

539 485

Funds applied to: 468

421

Provision of meals for tamariki

Property occupancy costs

Resources (includes $20k playground development cost)

Total funds applied

539 485

Salaries Faculty support

114

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

18. 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 o Aotearoa and its Group's financial assets and liabilities are presented as follows:

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Financial assets Cash and cash equivalents

7,489 7,096 5,256 7,071

Tauira and other receivables

11,490 11,640 11,490 11,637

Term deposits Total financial assets

59,000 38,195 59,000 36,000 77,979 56,931 75,746 54,708

Financial assets mandatorily measured at fair value through surplus or deficit Managed funds

43,497 40,687 43,497 40,687

Total held for trading

43,497 40,687 43,497 40,687

Financial liabilities Creditors and other payables

13,545 8,228 13,524 8,210

Total financial liabilities

13,545

8,228

13,524

8,210

(b) Fair value hierarchy For those instruments recognised at fair value in the statements 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.

Te Pūrongo 2020 |

115

Notes to the financial statements | For the year ended 31 December 2020

18. Financial instruments (continued) The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statements of financial position: Valuation technique

Total $'000

Quoted market price $'000

Observable inputs $'000

Significant nonobservable inputs $'000

31 December 2020 Group Financial assets Managed fund

43,497

–

Total financial assets

43,497

–

40,686

–

40,686

–

31 December 2019 Group Financial assets Managed fund Total financial assets 31 December 2020 Parent Financial assets Managed fund

43,497

–

Total financial assets

43,497

–

40,686

–

40,686

–

31 December 2019 Parent Financial assets Managed fund Total financial assets

There were no transfers between the different levels of the fair value hierarchy.

116

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

18. Financial instruments (continued)

(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. 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.

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. 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 counter party. 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 Groups 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. All instruments in this table have a loss allowance based on lifetime expected credit losses.

Te Pūrongo 2020 |

117

Notes to the financial statements | For the year ended 31 December 2020

18. Financial instruments (continued)

Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Cash at bank and term deposits AA-

66,484 45,291 64,255 43,071

Total cash at bank and term deposits

66,484

45,291 64,255 43,071

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 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

Group 2020 Payables

13,545

–

Total

13,545

–

Payables

8,228

–

Total

8,228

–

Group 2019

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

Parent 2020 Payables

13,524

–

Total

13,524

–

Payables

8,210

–

Total

8,210

–

Parent 2019

118

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

18. Financial instruments (continued) 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

Group 2020 Cash and cash equivalents

7,489

–

Tauira and other receivables

11,490

–

Other financial assets: Term deposits

59,000 –

Managed funds

59,000 –

77,979

–

Cash and cash equivalents

7,096

–

Tauira and other receivables

11,640

–

Term deposits

38,195

–

Total

56,931

–

Total Group 2019

Other financial assets:

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

Parent 2020 Cash and cash equivalents

5,256

–

Tauira and other receivables

11,490

–

Term deposits

59,000

–

Total

75,746

–

Cash and cash equivalents

7,071

–

Tauira and other receivables

11,637

–

Term deposits

36,000

–

Total

54,708

–

Other financial assets:

Parent 2019

Other financial assets:

119

Te Pūrongo 2020 |

Notes to the financial statements | For the year ended 31 December 2020

18. Financial instruments (continued) Sensitivity analysis The tables below illustrate 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. 2020 2020 -100bps -100bps Surplus Other equity $'000 $'000

2020 2020 +100bps +100bps Surplus Other equity $'000 $'000

2019 2019 -100bps -100bps Surplus Other equity $'000 $'000

2019 +100bps Surplus $'000

2019 +100bps Other equity $'000

Group Interest rate risk – financial assets (75)

–

(71)

–

(1,025)

–

1,025

–

(789)

–

789

–

(1,100)

–

1,100

–

(860)

–

860

–

(71)

–

Cash and cash equivalents Other financial assets Total sensitivity

Parent Interest rate risk – financial assets (53)

Cash and cash equivalents

–

Other financial assets

(1,025)

–

1,025

–

(767)

–

767

–

Total sensitivity

(1,078)

–

1,078

–

(838)

–

838

–

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%. 19. Related party disclosures 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 conditions 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. The subcontracting revenue paid by Te Wānanga o Aotearoa is disclosed in note 5, intercompany expenses. In 2019 DynaSpeak Limited was transitioned into the Te Wānanga o Aotearoa parent.

120

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

19. Related party disclosures (continued) Balances arising from sales/purchases of goods and services Group 2020 $'000

Group 2019 $'000

Sale of services DynaSpeak Limited (100% owned subsidiary)

– 118

Aotearoa Scholarship Trust (100% controlled subsidiary)

–

Purchase of services DynaSpeak Limited (100% owned subsidiary)

– 4,416

20. Key kaimahi remuneration

Appointment Date

Retirement Date

Group & Parent 2020 $'000

Group & Parent 2019 $'000

Te Mana Whakahaere (Current) Katie Bhreatnach

Council/HR_Remuneration Board

Jul-15

–

Vanessa Eparaima

Council Deputy Chair/HR_Remuneration Board

Jul-15

–

Robert Gabel

Council/Audit & Risk/Investment Board

Jul-15

–

Bryan Hemi

Council Chair/ HR_Remuneration Board

Jul-15

–

Steve Ruru

Council/Audit & Risk/Health & Safety

Dec-16

–

Jon Stokes

Council/HR_Remuneration Board

Dec-16

–

Josh Wharehinga

Council/Academic Board

Jul-15

Apr 20

Bella Takiari-Brame

Council/Health & Safety/HR_Remuneration Board

May-19

–

Independent members of other committees Ainsleigh Cribb-Su'a

Academic Board

Dec-15

–

Claudia Vidal

Audit & Risk

Sep-17

–

Christopher Tooley

Academic Board

Dec-15

Apr 20

–

Anaru Baynes

Academic Board

Sep-17

Apr 20

–

Jaydene Kana

Audit & Risk

Apr-19

–

Colin Magee

Audit & Risk

Apr-19

–

Kieran Hewitson

Academic Board

May 20

–

Terence Johnson

Health & Safety

Jan 20

–

Melinda Webber

Academic Board

May 20

–

Karen Long

Academic Board

Oct 20

–

Ta'ase Vaoga

Academic Board

Oct 20

–

Previous council and committee members Sam Inglis

Investment Board

May-17

Oct-19

–

Wayne McLean

Audit & Risk Chair

Jul 08

Aug 19

–

198`

204

Te Pūrongo 2020 |

121

122

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

20. Key kaimahi remuneration (continued) Key management kaimahi and governance remuneration: Group 2020 $'000

Ngā Tumu/ senior management

Te Mana Whakahaere and sub-committees Total key management personnel remuneration

2,435

Group 2019 $'000

–

2,435

Other long-term benefits – KiwiSaver Total key management personnel remuneration

2,369

2,435

2,635

2,569

2,635

2,431

2,435

2,635

204

Parent 2020 $'000

2,435

Parent 2019 $'000

–

Group 2019 $'000

204

Group 2020 $'000

Short-term and kaimahi welfare benefits

2,431

Parent 2020 $'000

2,369

Parent 2019 $'000

2,435

2,569 66

2,635

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 2020

Ngā Tumu/ senior management

Group 2019

Parent 2020

Parent 2019

Te Mana Whakahaere and sub-committees

Total

To detemine management kaimahi numbers for Ngā 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.

Te Pūrongo 2020 |

123

Notes to the financial statements | For the year ended 31 December 2020

21. Contingencies Contingent liabilities Litigation Te Wānanga o Aotearoa has one legal claim outstanding as at the balance date (2019: three). The claim relates to a dispute with an internal party. Te Wānanga o Aotearoa has not disclosed the details of this claim as it may seriously prejudice the position of Te Wānanga o Aotearoa with respect to disputes with the other internal parties. Financial guarantee Te Wānanga o Aotearoa has no financial guarantees in place as at balance date (2019: nil). Contingent assets Te Wānanga o Aotearoa has no contingent assets as at balance date (2019: nil). 22. 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. 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 1 and 8 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 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Within one year

3,764

3,983

3,764

3,983

After one year and not later than five years

5,497

5,995

5,497

5,995

Later than five years Total non-cancellable operating leases

448

391

448

391

9,709

10,369

9,709

10,369

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| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

22. Capital commitments and operating leases (continued) 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: Group 2020 $'000

Group 2019 $'000

Parent 2020 $'000

Parent 2019 $'000

Within one year

241

100

241

100

After one year and not later than five years

402

Total non-cancellable operating leases

643

129

643

129

No contingent rents have been recognised in the statement of comprehensive revenue and expense during the period.

23. Events after the balance date On 25 March 2021, Te Taiurungi Te Ururoa Flavell announced his resignation effective 30 April 2021. In the interim until a new Taiurungi is appointed, Te Kōmaru Nepia Winiata will step up and fill the position. Te Wānanga o Aotearoa will continue to operate as normal and does not expect there to be any significant disruption and/or changes as a result of the resignation.

Te Pūrongo 2020 |

125

Notes to the financial statements | For the year ended 31 December 2020

24. Explanation of major variances against budget Accounting policy

Tauira and other receivables were $2.9 million higher than budget mainly due to SAC funding being recognised based on when the course withdrawal date has passed, and the number of eligible students who have enrolled at that time.

It should be noted the Group and Parent budget figures have been 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. However, some items presented in the budget have been reclassified in the annual report to be consistent with the presentation of actuals.

Other financial assets were $25.8 million higher than budget due to a much higher surplus than anticipated due to higher revenue and lower expenses as a result of COVID19. Also, capital expenditure was lower than planned and the budget assumed different timing of maturity and investment than actual.

Explanations for major variations from Te Wānanga o Aotearoa Group budget figures are as follows:

Non-current assets held for sale of $0.9 million were not budgeted.

Statement of comprehensive revenue and expense

Property, plant and equipment were $2.4 million lower than budget from unplanned property sales and lower than planned capital expenditure.

The Group result was a surplus of $7.3 million (4.7% of total revenue) which was $10.6 million above budget. Government funding was $3.5 million above budget. EFTS consumption was 3,760 below target but we were fully funded due to COVID-19. We also received additional funding for HAFL and TAFL to support tauira as a result of hardships they faced during COVID-19. Tauira fees were $0.6 million below budget due to tauira choosing to enrol in non-fee paying programmes combined with lower than budget EFTS consumption. Interest revenue was $0.2 million above budget as we budgeted lower interest rates to impact our term deposits earlier. Other revenue was $0.3 million below budget mainly due to planned vehicle sales not proceeding and dividend income under performing expectations. This was offset by increased revenue from subcontracting revenue and miscellaneous income. Kaimahi costs were $4.8 million below budget due to lower EFTS and the use of more contractors to deliver classes and also lower training and development. Depreciation and amortisation was $1.0 million below budget due to lower than budgeted capital expenditure. Other expenses were $1.9 million below budget. Expenditure was lower this year across almost all categories due to the COVID-19 lockdowns. There were also additional costs related to HAFL and TAFL offset by the increased revenue to fund these projects. Statement of financial position Cash and cash equivalents are $3.6 million higher than budget due to the timing of term deposit maturity and investment.

Inventories were $2.4 million lower than budget with the budget assumming different purchasing requirements and timing than actually occurred as impacted by COVID-19.

Intangible assets were $3.4 million lower than budget due to the change in classification of the Here Tangata (SMS) project from capital to operational expenditure. Payables were $11.8 million higher than budget as the budget assumed lower accrued expenses $2.8 million and did not include other government funding of $8.8 million as being payable at year end. Statement of cash flows Government funding receipts were $7.0 million above budget due to guaranteed government funding as a result of COVID-19. Other cash receipts from operating activities were $1.1 million higher than budget due to the timing of receipts. Payments to kaimahi were $11.2 million below budget due largely to the need for less kaimahi as a result of fewer EFTS, utilising existing kaimahi where possible instead of filling vacancies, and utilising more contractors. Payments to suppliers were $4.3 million below budget as cost savings were achieved across many cost categories as a result of COVID-19. The sale of property, plant and equipment was $3.0 million higher than budget due to the unplanned sale of properties in Mahana Road Hamilton, Rickit Road Te Awamutu and Rotowaro Road Huntly. Programme development was $2.4 million less than budget as work was difficult to progress during the year in part due to COVID-19 conditions. Purchases of cash investments (net) were $25.0 million higher than budget as a result of the higher net cash flow.

126

| Te Wānanga o Aotearoa

Notes to the financial statements | For the year ended 31 December 2020

25. The effects of COVID-19 on Te Wānanga o Aotearoa On 11 March 2020, the World Health Organisation declared the outbreak of COVID-19 a pandemic and two weeks later the New Zealand Government declared a State of National Emergency. From this, the country was in lockdown at Alert Level 4 for the period 26 March to 27 April and remained in lockdown at Alert Level 3, thereafter, until 13 May. During this period, Te Wānanga o Aotearoa closed all delivery sites and brought forward the mid-semester break to align with the new timing of the school holidays in New Zealand. Most staff moved to a ‘work from home’ model and teaching was changed to online delivery after the midsemester break. Due to ongoing uncertainty, a decision was made to continue to deliver online learning for the duration of Semester A. After 13 May, when New Zealand moved to lower Alert Levels, students were able to attend classes on site or continue to access classes remotely. The effect on our operations is reflected in these financial statements based on the information available to the date these financial statements are approved. The main impacts on Te Wānanga o Aotearoa's financial statements due to COVID-19 are explained below. This includes information about key assumptions concerning the future and other sources of estimation uncertainty due to COVID-19. The main impacts on Te Wānanga o Aotearoa performance measures are explained in the statement of service performance on page 38. Government funding The TEC confirmed during March 2020 that 2020 funding for Investment Plans and Fees-free will continue and that it will not recover 2020 funding because of either nonachievement of Education Performance Indicators or under delivery during the 2020 year. This provided Te Wānanga o Aotearoa with certainty that it could continue to deliver to students despite the disruption caused by COVID-19. As a consequence of this, Te Wānanga o Aotearoa has recognised this funding in full as revenue during the financial year.

Tauira numbers and fees revenue Te Wānanga o Aotearoa domestic EFTS were significantly affected by the pandemic, falling well short of the target at 79.1% of Investment Plan funded EFTS. Despite this, the TEC funding guarantee meant that we received 100% of Investment Plan funding. Fee revenue was less impacted as Te Wānanga o Aotearoa does not currently have any international EFTS and the majority of programmes are fee-free. This meant that significant cost savings were made by the move to online learning and the reduction in travel and other services. As a result of COVID-19, Te Wānanga o Aotearoa has incurred: Significant cost savings in operating expenses occurred as the majority of staff worked from home. Savings included travel and accommodation, hospitality, property and faculty costs. Additional costs to deep clean property, provide staff with hand sanitiser, disinfectant products and other health and safety materials were incurred. A large focus for Te Wānanga o Aotearoa during the lockdown period was creating and implementing online delivery material and resources to support learning from home. Due to the TEC commitment to continue funding Te Wānanga o Aotearoa at 100% of Investment Plan Funding there was no restructuring or redundancy costs directly attributable to the lockdown.

Te Pūrongo 2020 |

127

128

| Te Wānanga o Aotearoa

Hei Whakamaumahara In rememberance

E te iwi nui tonu tēnei ka tangi mō koutou kua ngaro ki te Hono-i-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. To the multitudes who have departed this world, we mourn for you as you 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 cherished ones, treasured ones. Leave for us your works that we may continue to fulfil your aspiration to help our future generations. Forever be at rest.

Te Pūrongo 2020 |

129