Te Pūrongo - TWoA Annual Report 2021

Te Whakapono

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.

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.

Arotakenga

Ko ngā whakamānawatanga ki te Wāhi Ngaro mō āna tauwhirotanga ki runga i a tātou. Ki a rātou te huinga kahurangi kua haere ki te kāpunipunitanga o te wairua, e moe rā i roto i te whare o Hine-ruaki-moe.

Ka mihia, ka whakamānawatia tō tātou Kīngi Tūheitia Pōtatau Te Wherowhero Te Tuawhitu me Te Kāhui Ariki rire rire hau Pai Mārire.

Tēnā rā tātou e ngā kanohi ora, ngā ringaringa, ngā waewae, ngā pūmanawa e toro nei ki Te Pūrongo ā-tau a Te Wānanga o Aotearoa. Kātahi te tau kua hori nei – ko ōna painga, ko ōna whakapātaritari i pā kau mai ki a tātou otirā ki te ao katoa. Heoi anō hei te mutunga iho ka aro tōnu tātou ki ngā kaupapa e angitu ai ā tātou tauira.

Vanessa Eparaima Te Heamana

Chairperson

Tā Te Heamana

Chairperson's report

I am humbled to introduce Te Pūrongo 2021, the annual report of Te Wānanga o Aotearoa, which captures the resilience of our kaimahi and organisation, through another year where we alongside the nation, continued to grapple with the impacts and challenges of a global pandemic.

It is important for me to acknowledge, on behalf of Te Mana Whakahaere, you our whānau, the whānau of Te Wānanga o Aotearoa. Led by our Kaiwhakatere, Nepia Winiata, and supported by Ngā Tumu, we sincerely thank you for the way you have continued to work and lead our people in what has been a challenging and disruptive time for us all. Thank you for all that you are and all that you do for our tauira and our wānanga.

Guided by our values of Te Aroha, Te Whakapono, Ngā Ture and Kotahitanga, we have continued to invest significant time and resources to develop and refine our online offerings. While we know that online delivery has not been our preferred teaching method, and has the potential to impact on whanaungatanga and manaakitanga which occurs naturally through kanohi ki te kanohi delivery, I am heartened by our resilience and adaptability that are embedded in our organisational DNA, and I am grateful for the way our organisation had been able to move to an online-only teaching environment as a result of the impact of COVID-19.

Despite this Te Wānanga o Aotearoa enrolled tauira representing 17,032 EFTS which was 94.5% of our EFTS target for the last financial year. Although the timing of lockdowns meant that enrolments were less affected than in 2020, the regular disruptions caused by national and regional lockdowns, changing alert levels and ongoing uncertainty continued to impact our enrolments.

Due to the restrictions on our operations caused by the pandemic, Te Wānanga o Aotearoa was able to make cost savings thereby allowing us to make a surplus of 7.7% or $11.7 million in 2021.

This surplus is a result of exceptional circumstances; however, the surplus provides additional funding to support investment across the organisation, including in business-critical IT infrastructure and enhancements to our mix of provision.

During 2021, we were also able to continue extensive preparations for our External Evaluation and Review, which was held in early 2022 after being deferred twice from its initial scheduled timing of late 2020 due to COVID-19.

Providing a high-quality educational experience continues to be a key focus and we have seen major improvements this year, which must and will continue as we move towards our vision of, He takapau mātauranga, he whānau huarewaWhānau transformation through education.

Despite the ongoing challenges, our organisation continued to focus on our commitment to ensure we remain relevant and sustainable as a wānanga, while balancing our efforts on ensuring we are well placed to support the future needs of our communities.

One significant project that is ongoing with the Crown, is known as Te Hono Wānanga and seeks to ensure the relevance and sustainability of the wānanga sector as partners to Te Tiriti o Waitangi with the Crown, whilst enabling each wānanga to continue to uphold its own distinct intent, purpose and contribution into the future.

Given our history in the vocations area and the needs of our community at heart, a Memorandum of Understanding was established between ourselves and Te Pūkenga, in which both organisations agreed to work together on areas of mutual interest and importance, with a particular emphasis on clarifying the place and space of each organisation and how we can support each other through the vocational reforms.

To support this, our organisation established a dedicated resource to inform our strategic direction and how best we could position ourselves in the future of vocational education.

In 2021 we launched Te Manawahoukura, our centre for Rangahau Excellence, and initiated a series of Rangahau Workshops hosted by some of the most highly regarded kairangahau, such as Professors Graeme Hingangaroa Smith, Linda Tuhiwai Smith and Leonie Pihama.

Te Manawahoukura provides Te Wānanga o Aotearoa with significant infrastructure to drive ongoing, kaupapa-based rangahau in many areas important to us such as Social Work, Education and Toi.

During this same period, we also launched a new Master’s programme in Te Reo Māori Excellence, Te Reo Kairangi, which focuses on linguistic mastery and language revitalisation strategies and follows the closure of the elite Te Panekiretanga o te Reo Māori programme.

However, despite our best efforts to meet the ongoing demands of providing education continuity, other significant issues emerged.

Kaiako and tauira fatigue, kaimahi and kaiako recruitment and retention are issues our wānanga we are actively seeking to mitigate. With our Ngā Uara in mind, please know that we value your contribution and dedication to our tauira and communities.

As a national provider of tertiary education, adapting delivery at a regional level due to COVID-19 alert level changes presented its own challenges, particularly in areas such as Tāmaki Makaurau and parts of Te Ihu (our northern region) and Te Waenga (our central region) where COVID19 restrictions were in place for long periods of time or changed at extremely short notice.

Academic guidelines informed by our 2020 experience, alongside a strong communications plan, provided clarity and certainty to kaiako and tauira in these COVID-19 affected regions, and enabled affected sites to move swiftly and appropriately between different alert levels as these changed.

I want to acknowledge our Tāmaki Makaurau kaimahi in particular, who spent much of 2021 in lockdown. Your commitment to the kaupapa of Te Wānanga o Aotearoa, through such a challenging time, both professionally and personally, cannot be underestimated.

Amongst all these activities, we saw some changes on Te Mana Whakahaere and among our senior leadership

team. We farewelled Te Taiurungi, Hon. Te Ururoa Flavell during the year. We were, however, very fortunate that Nepia Winiata was available and able to ensure our momentum continued, through his appointment as interim chief executive.

Nepia’s strong and decisive leadership during the disruption of Covid, as well as ensuring a seamless transition in leadership, was a key basis for his appointment as Kaiwhakatere following a thorough CEO recruitment process.

During this reporting period, Te Mana Whakahaere chair Bryan Hemi also stood down from the role, and I was humbled to again be elected chair by my fellow board members. I want to take this time to acknowledge Bryan for his leadership of the board, and his ongoing support as deputy chair. I would also like to acknowledge Bella TakiariBrame who stood down from Te Mana Whakahaere during this reporting period.

I want to also acknowledge my fellow Te Mana Whakahaere members for the mahi and wisdom they all bring to the organisation and to the kaupapa of Te Wānanga o Aotearoa.

We continue to drive a focus on ongoing educational quality and relevance while maintaining a firm focus on the organisation’s strategy and ensuring we are well placed to achieve our potential.

There remains much work to be done with many opportunities to be realised as we seek to serve our many whānau and communities. I want to again acknowledge the passion and drive of our kaimahi across our wānanga, who continue to provide the inviting face and nurturing hand to the many who chose Te Wananga o Aotearoa to enhance their training and kete of knowledge. Kia angitu te tauiraTauira success! Vanessa Eparaima

Te Heamana | Chairperson

Te

Whakahaere

Eparaima

Tirohia atu a Matariki kua noho i ngā puke o Tautoru. Kua mōhio tātou ko ia te kai rūri o te tau tahitahi ki a Pipiri.

He kura tangihia he maimai aroha ki ō

Taramainuku kua ruiruia ki te uma o Ranginui hei whetū. Koia!

Ko te ope o te rua o Matariki ki te rangi.

Ko te Paki o Matariki ki te whenua ko

Wherowhero Te Tuawhitu e noho ana i

tūpuna. Pai mārire ki te kāhui ariki.

Ki a tātou te hunga ora, te hunga tongakingaki o tō tātou wānanga kia angitu ai te tauira, kia huarewa ai te tēnā rā tātou katoa.

Nepia Winiata Kaiwhakatere

Tā Te Kaiwhakatere

It is with great pleasure that I am able to present Te Pūrongo 2021, the annual report of Te Wānanga o Aotearoa, after an at-times challenging year due to COVID-19.

Following the departure of Te Taiurungi, Hon. Te Ururoa Flavell, in March, I was honoured to be appointed to the role of chief executive and look forward to continuing the progress made under his leadership.

I thank and acknowledge Te Mana Whakahaere chair Vanessa Eparaima and her board for their support, along with Ngā Tumu for their continued dedication to the kaupapa of Te Wānanga o Aotearoa.

The last 12 months has seen Te Wānanga o Aotearoa confront several issues which continue to impact not only our operations but also our abilities to provide the high level of education rich in mātauranga Māori that our tauira deserve.

I am immensely proud of the efforts of all our kaimahi, particularly those who faced extended periods in lockdown, who continue to commit themselves to the kaupapa of Te Wānanga o Aotearoa despite facing significant challenges created by COVID-19.

The most notable impact of COVID-19 on our organisation was caused by the regular disruptions caused throughout the year by both national and regional lockdowns and changing alert levels. This uncertainty caused significant stress for both kaimahi and tauira and led to our 2021 EFTS total of 17,032 representing just 94.5% of our EFTS target.

However, as an organisation Te Wānanga o Aotearoa still made considerable progress on several fronts.

We developed and had approved our learner success project Te Ata Hāpara, which aims to increase retention and progression rates across the tauira lifecycle and provide a tauira-centric delivery model that ensures studying with Te Wānanga o Aotearoa is a transformative experience. Te Ata Hāpara was developed following a two-year research project to improve the provision of support services tauira identified as being at risk.

Our research enabled us to better understand the causes of early withdrawals and other factors that impact tauira achievement, while analysing organisational, national and international best practise in the area of student support.

We also made significant progress towards our External Evaluation and Review, which will now be held in early 2022, and achieved many of our educational targets.

We exceeded our 75% target of tauira reporting that their use of te reo Māori has increased and in 2021 83% of tauira reported that their understanding of mātauranga Maori had increased, which represented a 4% improvement on the 2020 result. We also exceeded our $10m target of forgone fees in favour of providing accessible, fee-free language and culture programmes while the number of tauira reporting an improvement in their confidence in their cultural identity continues to improve.

We also achieved targets in the areas of health and wellbeing, and tauira sharing their skills and knowledge with their whānau, hapū, iwi and communities. This is particularly satisfying as opportunities to come together have been severely limited by the pandemic and this reminds us of the importance of connection and the value of kanohi-ki-te-kanohi learning.

While other targets were not achieved – many by a small margin – most showed improvements on 2020 levels and give us confidence in seeing continued improvements in the years ahead.

However, the impacts of COVID-19 on Te Wānanga o Aotearoa during 2021 have been ongoing and considerable.

Throughout the year Te Wānanga o Aotearoa supported the national COVID-19 vaccination programme and adhered to changing government requirements and restrictions. We hosted online forums with our senior leadership team and with doctors Rawiri Jansen and Maia Brewerton to provide further information and guidance around vaccinations for kaimahi.

vaccinatio

New government vaccination requirement s als o posed significant c hallenges for our organisation a s w e r eviewed our health and safety requirements in order to ensure that tauira and kaimahi wellbeing could b e appropriately provided for

Following extensive consultation with staff, in late 2021 we announced our Outbreak Infection and Transmission Reduction Tikanga W hakahaere would be introduced in Februa ry 2022. This required all kaimahi, tauira, contractors and visitors to Te Wānanga o Aotearoa sites across the count ry to be fully vaccinated against COVID19 and i s likely to impac t bot h tauir a and kaimahi , as the hugely diverse communitie s we serve have a wide range of divergent view s around the issue s involved.

Despite this range of views, we were able to come together as whānau to celebrate our 36th anniversary during 2021, and pause to reflect on t he c hallenges our forebears w ent through to create the organisation we see today.

As the global pandemic continues to impact on our preparations, we anticipate fu r ther challenges in the months and year ahead.

However, I have absolute confidence in the abilities of our kaimahi to meet these challenges head on and continue our long tradition of delivering a n educationa l experience rich in mātauranga Māori.

wellbein propriately creat organisatio e seein

Our commitment to our mission of Tauira Success and vision of Whānau Transformation Through Education will remai n and I look forward to seeing furthe r improvements in the months and years ahead.

Nepia Winiata

Kaiwhakatere Chief Executive

Ngā Tumu

Team

Nepia Winiata Kaiwhakatere

Lindsay Baxter Tumutaumatua

Leon Takimoana Tumuwhanake

Joe Valenti Tumutahua

Adam McWilliams Tumutaupārongo

Shireen Maged Tumuakoranga

“It’s given me confidence in my community. I went to a new marae on my own and I was comfortable in that space. I wouldn’t have done that if I hadn't studied the raranga course through noho marae.”

British teacher steps up to bilingual unit at Ōpōtiki College

Caroline Willis | Tauira

British migrant Caroline Willis had been teaching mainstream classes in the UK and New Zealand for more than 25 years.

Now she’s stepped up to a role in a te reo Māori-te reo Pākehā bilingual unit at Ōpōtiki College after completing He PuāwaiCertificate in Adult & Tertiary Teaching programme at our Kawerau campus.

“I must admit if I hadn't done the course I might not have had the confidence to put myself forward for the position,” says Caroline.

And she believes the completion of He Puāwai helped her job application stand out.

Applying for the job came after Caroline developed a strong interest in te ao Māori (the Māori world).

She started studying with Te Wānanga o Aotearoa in 2017 in Ōpōtiki after visiting an exhibition where kaiako (tutor) Roka Cameron was showcasing weaving pieces done by her tauira (students).

Roka, who has since retired, had over 40 years of teaching experience, which played a big part in Caroline’s decision to begin her learning journey at Te Wānanga o Aotearoa.

So Caroline began her learning pathway at Te Wānanga o Aotearoa by completing our raranga (weaving) certificate.

“I thought I can’t let that opportunity go. To have someone in Ōpōtiki with that level of skill, I just have to study with her.

That’s why I ended up doing three years with her,” says Caroline.

Caroline has since graduated from a number of different Te Wānanga o Aotearoa programmes, with her latest achievement being He Puāwai programme taught by kaiako Elsie Rakuraku.

“Because Māori culture is strongly represented in Ōpōtiki it made sense to keep exploring. That’s why I ended up on the He Puāwai course in Kawerau, because I could see some really valuable thinking that I could take back to the classroom.”

Caroline, who has lived in Aotearoa since 2003, found the study has not just helped her professional life, but her personal life as well.

“It’s given me confidence in my community. I went to a new marae on my own and I was comfortable in that space. I wouldn’t have done that if I hadn't studied the raranga course through noho marae.”

The support and encouragement from the different kaiako she has studied under is something which Caroline believes helped her achieve in her study.

“I think they go out of their way to help people be successful. They do everything they possibly can to help. My hats off to the kaiako at the Wānanga.”

Caroline plans to continue learning with Te Wānanga o Aotearoa, hoping to complete a te reo Māori language programme. She also expects to be learning the language from the very students that she is now teaching in the bilingual unit.

“Tamariki need people that are invested in helping and inspiring them. You won’t just better yourself but you’ll be making a difference in the lives of tamariki too.”

Young mum completes degree while raising five young children

Ramari Kaka | Tauira

Mum of five, Ramari Kaka had always put off her dream of becoming a teacher to look after her whānau and raise her young children.

But after discovering the Bachelor of Education degree at Te Wānanga o Aotearoa, she was confident she would be able to do both.

“I’ve always wanted to get into teaching but what got me hooked on going to Te Wānanga o Aotearoa was seeing my older sister do it. She was able to be a mum and still study. She could prioritise both her whānau and her study,” says Ramari (Ngāti Toarangatira, Ngāti Koata and Tainui).

Ramari completed the degree at Te Wānanga o Aotearoa's Mangakōtukutuku, Hamilton campus with the support and guidance of her many hands-on kaiako (teachers).

Juggling whānau life while keeping up with study still had its challenges for Ramari but it was all worth it in the end.

“At times it was hard when we had to be involved in kaupapa like pōwhiri (welcome) because I had to organise the kids before getting there. But on the flip side of that, being involved in those things helped to reignite past knowledge that I thought I had forgotten.”

At 32 years old, not only did Ramari complete her degree but during her three years of fulltime study she was also able to reconnect with her iwi.

This knowledge was something that she took home to her whānau and passes on to her own tamariki (children).

“I can share what I now know with my kids, so that they understand their pepeha is more than just the words they say, but it is the places and people we whakapapa (descent) to.”

Ramari hopes to use her degree to teach and inspire tamariki and she dreams of one day soon delivering an educational and interactive programme that isn’t restricted to the walls of a classroom.

Studying with Te Wānanga o Aotearoa has helped Ramari discover the type of influential teacher she aspires to be and she hopes to see others with a passion for Māori in education complete their studies too.

“Tamariki need people that are invested in helping and inspiring them. You won’t just better yourself but you’ll be making a difference in the lives of tamariki too.”

“It’s one thing to speak the language, but it’s another to translate accurately. We’ve been doing a lot of COVID19 communications and I’ve been translating the pānui for our communities. It’s thanks to the great work of our kaiako and the resources that were available,”

Kia tika te reo – Doing it Right and Continuously Improving

Nikau Beazley | Tauira

Te Pīnakitanga o te reo Kairangi graduate Nikau Reti-Beazley (Ngāpuhi), enrolled in the Level 7 Diploma in Ōtepoti to improve his grasp on te reo and what he discovered was not only a new extended whānau to practise kōrero, but also an opportunity to visit some of the stunning marae in the wider Otago area.

Nikau was in his final year of a Bachelors of Health Sciences majoring in Māori public health when his flatmate introduced him to Te Wānanga o Aotearoa in the bustling student town. He managed to fit the evening classes and noho weekends around his University schedule and says the mahi was all worthwhile.

“I loved the Wānanga style of delivery – everyone sharing and contributing, and I particularly enjoyed the noho weekends. That was great to see some incredible marae – Ōtākou, Arai Te Uru and Puketeraki. If it wasn’t for the course, I probably would never have visited those areas. I learned a lot at the noho, especially with the ability to conduct in our tikanga,” says Nikau.

The life-long learner says he credits much of what he has achieved to kaiako Keanu Ager who was consistently generous with his time and ensured classes were relatable, working to extend learning and made Nikau appreciate his background even more.

“He influenced me a lot with sharing his own stories and experience. One thing he pushed home was “Kia tika te reo”. He was a strong advocate for the language and we agreed on two big things – to make sure the reo is right and to constantly grow your vocabulary. Not to depend on a finite number of words to describe something but to really expand on that knowledge base,” says Nikau.

Hailing from South Auckland with roots in the far north, Nikau knows his whakapapa well and tikanga is particularly important to this dedicated supporter of reo revitalisation and health equity. He is no stranger to the hardships faced by parts of his community and so when the breadth of degree opportunities became clearer upon arriving in Dunedin, Nikau knew where his calling resided.

“I grew up in what people may call ‘the hood’. Some parts were real rough and I remember from a young age confronting a lot of that. I didn’t realise then the existing gaps in the health sector, nor did I know the reasons why Māori were not receiving the same health care standards in terms of consultations and treatments they needed. But I do now, and I’m working towards making a change for our people,” says Nikau.

“Having Māori values entrenched

in me from an early age has helped me know what I wanted to do with mahi, and that was to help our communities. I didn’t want to be the ambulance at the bottom of the road, but to be involved in the prevention of these things getting any worse,” adds Nikau.

Today Nikau works for non-profit organisation Hāpai Te Hauora which addresses health challenges faced by tangata whenua. Nikau says his ability to translate kupu and statements from English to reo Māori has improved tremendously after completing the Diploma and this skill is useful in his mahi.

He knows that he is fortunate to have had the kura kaupapa experience and a good understanding of Te Ao Māori before embarking on a high school journey at Auckland Grammar School. In some ways, the culture shock from that change helped prepare him for his student days in Te Waipounamu at the University of Otago.

“The change was similar to that change I felt when going into a mainstream high school from a full immersion background, but down in Dunedin it was the change in scenery – it was obvious I wasn’t in South Auckland anymore! But over the four years I was there I saw the number of Māori students grow and by the time I left I saw many more reo speakers,” says Nikau.

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 (cultural), Oranga Hapori (community) and Arumoni (commercial), reflect a holistic approach to transformation within a mātauranga Māori context.

This is the second year of reporting against Te Wānanga o Aotearoa Investment Plan 20202022, and the third year of reporting against the Investment Plan Performance Commitments that were negotiated for 2019-2021.

A note on COVID-19

The results in the 2021 Statement of Service Performance should be considered in the context of the timing, and subsequent impact, of the nationwide lockdowns.

The 2020 lockdown coincided with the start of Semester A and had a major impact on enrolments and education performance indicators. Although the timing of the 2021 lockdown in mid-August lessened the impact, the ongoing disruption and environment of uncertainty continued to affect both enrolments and education performance.

The broad impact of the pandemic is reflected throughout the following report with more specific detail provided for those key performance indicators that were directly affected.

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 Social wellbeing Arumoni Economic wellbeing Impact

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

Making a difference in the lives of tauira and their whānau; and

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

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 New Zealand. 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

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

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

1.1 Tauira are confident in their identity and culture

We will stand strong in the NZ tertiary education system by:

1.2 Contributing to the revitalisation of te reo Māori

1.3 Holding open the door to te Ao Māori

1.4 Our rangahau advances mātauranga Māori

1.5 Affirming what it means to be a wānanga within the current context

Performance measures

Key Performance Indicator

1.1.1

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 73% 74% 75% 80% >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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

Regardless of what they study, our holistic approach to teaching and learning exposes tauira to Māori culture and encourages them to connect with their own cultural identity.

In 2021 75% of tauira reported improvements in cultural identity. Although the result missed the target, it was another step in the right direction with a 1% improvement for the second year in a row.

Forego tauira fee income to provide accessible language and culture programmes

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

$11M $9.9M $11.4M $10M $10M

Key Performance Indicator

1.3.1

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. The 2020 figure has been updated to correct a minor calculation error.

One of the primary ways that Te Wānanga o Aotearoa work to revitalise te reo Māori is by providing accessible, feefree language and cultural programmes across New Zealand.

After a dip in 2020, EFTS recovered in 2021 with 6,464 EFTS in fee-free Te Reo Rangatira and Angitu programmes. This resulted in the target being exceeded with $11.4 million in fee income forgone.

Key Performance Indicator

1.2.1

This progress is pleasing as we continue to navigate the challenge of ensuring that tauira receive a culturally rich educational experience whether it be in class or online.

Tauira report that their use of te reo Māori has increased

the

Over the next three year Investment Plan period one of our goals is to grow Te Reo Rangatira provision so that more New Zealanders are able to learn te reo Māori. As part of this we will begin to roll out part time level 1 to 4 te reo in 2022 to make our language programmes even more accessible for tauira that are in full time employment.

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

77%77% 80% 75%75%

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

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 2021 80% of tauira reported that their use of te reo Māori has increased, exceeding the target by 5%.

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 place to kōrero Māori.

Key Performance Indicator

1.3.2

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

350 days 60 days93 days300 days 200 days

Prior to 2020, Te Wānanga o Aotearoa has provided an average of over 250 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.

Although the timing of the lockdown meant that some smaller events and activities could proceed, with major events such as Te Matatini and Koroneihana cancelled, cultural leave fell short of the target in 2021.

Key Performance Indicator

1.3.3

Partner in major cultural initiatives

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

3+ initiatives 3 initiatives4 initiatives3 initiatives3 initiatives

As well as providing fee-free beginner language courses, we also use our capability and resources to support an ecosystem of events and activities that bring life to te ao Māori.

In 2021 we continued to support the following cultural initiatives:

› we were the naming sponsor of the Waka Ama Sprint Nationals at Lake Karāpiro; › Mahuru Māori again coincided with Te Wiki o Te Reo Māori, with more than 14,000 registered participants committing to speak te reo Māori for a day, a week or the whole month of September; and › the Taringa podcast that attracts around 50,000 listeners per month.

In addition to this, we supported Toi Koru, a retrospective exhibition of Ngāti Kahungunu, Ngāti Pāhauwera artist and educator Sandy Adsett. Covering his 50 year career, Toi Koru was just Sandy’s third solo exhibition featuring more than 60 works spanning the 1960s to today, including some created especially for the exhibition.

Key Performance Indicator

1.5.1

Tauira confirm an increased understanding of mātauranga Māori

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

80% 79% 83% ≥ 80%≥ 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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

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.

In 2021 83% of tauira reported that their understanding of mātauranga Maori increased, which was within the target range and a 4% improvement on the 2020 result.

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. the

Key Performance Indicator

1.4.1

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

83% 36% 43% >75% >90%

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.

In 2021 43% (or 20 out of 46) of degree kaiako had an IRP.

Kaiako professional development planned through the IRP process and rangahau activity have been heavily impacted by the ongoing climate of uncertainty caused by the pandemic. There has been a decrease in the number of kairuruku rangahau, cancelled events and activities, and kaimahi re-deployed to assist with online learning.

Despite these challenges, many kaimahi are still engaging in rangahau and there was much progress towards achievement of Te Aratiatia, Kimihia Rangahaua (Rangahau Strategic Plan). This included the appointment of Professor Leonie Pihama who is tasked with establishing Te Manawahoukura, Te Wānanga o Aotearoa Centre of Research Excellence (CoRE).

Launching in June 2022 Te Manawahoukura will provide a broad range of rangahau opportunities to kaimahi, including the opportunity to collaborate on large-scale rangahau projects under the guidance of experienced practitioners.

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

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

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

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

Performance measures

Key Performance Indicator

2.1.1

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 65% 68% 70%70% 75%

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

Te Wānanga o Aotearoa seeks to positively impact tauira through a holistic approach to teaching and learning.

In 2021 70% 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 worked tirelessly to support tauira to study through the upheaval of the pandemic.

Stakeholders satisfied

Key Performance Indicator

2.2.1

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

79% 72% 75% >80% 85%

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 the 2021 survey was 11% with 99 responses from 934 invitations.

After a drop in 2020, stakeholder satisfaction improved by 3% but missed the target for 2021.

Over the next three years our intention is to work towards the strategic objectives of Te Pae Tawhiti 2025 in a way that benefits all of our key stakeholders. These intentions, including engagement and activity planned for tauira, employers and industry, and government are set out as set out in more detail in the Te Wānanga o Aotearoa 2022-2024 Investment Plan.

Key Performance Indicator

2.1.2

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 88% 87% 89% >85%>85%

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

Our tauira are strengthened through the meaningful connections they make whilst studying with us.

Key Performance Indicator

2.3.1

Tauira satisfaction

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

87% 86% 89% >90%>90%

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

Our aim is for every tauira to have a transformative educational experience. Their satisfaction is of primary importance to our mission of tauira success.

In 2021 89% of tauira reported sharing their new skills and knowledge with others, achieving the target range and exceeding the 2020 result by 2%. This result is particularly pleasing as opportunities to come together have been severely limited by the pandemic.

as

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.

Throughout the year all kaimahi worked tirelessly to ensure that every tauira was supported to continue their learning journey. At 89% the result for tauira satisfaction just missed the target but exceeded the 2020 result by 3%.

Over the next Investment Plan period we expect to implement a number of improvements as we work towards our strategic goal of putting tauira at the centre of all we do.

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

We will achieve our vision of Whānau

Transformation Through Education and mission of Tauira Success by:

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

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

Performance measures

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

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 69%69%69% 75% 80%

Key Performance Indicator

3.1.1

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

Regardless of what they study, our intention is that tauira leave us confident in who they are, where they have come from and with the skills and knowledge they need to succeed in future.

The proportion of tauira that reported their studies improved their career prospects remained steady at 69% in 2021, missing the target by 6%.

Over the next Investment Plan period Te Wānanga o Aotearoa will define its place in vocational education and training system. A major part of this will be implementing changes to our mix of provision to ensure we have a healthy pipeline of innovative new vocational programmes that play to our strengths and deliver relevant employment outcomes.

Key Performance Indicator 3.2.1

EER category rating

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

Quality Action Plan EER delayed EER delayed Category One Category One

In 2021 the External Evaluation and Review (EER), originally scheduled for late 2020, was delayed for a second time to March 2022.

Te Wānanga o Aotearoa has made good use of this time to bed-in quality improvements and further develop a culture of continuous improvement.

Providing a high quality educational experience remains a top priority and we expect to see quality improvements, particularly those to teaching and learning practices, systems and processes, recognised in the 2022 EER.

Key Performance Indicator

3.1.2

Tauira have a clearer view of how to achieve future goals

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 77% 86% 78% >80% 85%

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 2021 survey was sent to a cohort of 11,266 recent graduates and 26% (2,896) of them took the opportunity to respond.

At 78% in 2021, the environment of ongoing uncertainty contributed to a significant drop in tauira reporting they have a clear view of how to achieve their goals in 2021.

Our kaiako and kaimahi will continue to do all they can to assist tauira to navigate this difficult time.

Over the next Investment Plan period we will implement Te Ata Hāpara to improve our systems and support to equip tauira with the skills, confidence and a plan to achieve their future goals.

Key Performance Indicator 3.2.2

Proportion of policies on new QMS framework

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

n/a1 93% 100% 75% 100%

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.

Throughout 2021 a number of revisions and updates were made to Te Kaupapa Kounga and the target has been well exceeded with 100% of Tikanga Whakahaere (policy) now included under the QMS.

This

1This result is not available as the QMS framework was developed in 2019.

Key Performance Indicator

3.2.3

Quality teaching – Kaiako Capability Strategy

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 n/a 2 68% compliant 70% compliant 75% compliant 80% compliant

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.

Although the target was missed, we continued to make progress with 70% of kaiako fully compliant in 2021, a 2% improvement on the 2020 result.

In 2022 we will continue to implement the Strategy and bed in new policies, systems and procedures that set a new standard for quality teaching and learning at Te Wānanga o Aotearoa.

Key Performance Indicator

3.3.2

Surplus

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

0% 4.7% 7.7% 3% 3%

Driven by significant cost savings from heavily restricted operations, Te Wānanga o Aotearoa exceeded the target with a surplus of 7.7% or $11.7 million in 2021.

This surplus is welcome news as we embark on a multi-million dollar transformation programme that includes business critical IT infrastructure and enhancements to our mix of provision.

Key Performance Indicator

3.3.1

Funded EFTS

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022 95.95% 79.1% 94.5% >99% >99%

Te Wānanga o Aotearoa achieved 17,032 of 18,022 allocated EFTS or 94.5% of the EFTS funding target.

Although the timing of the lockdown meant that enrolments were less affected than 2020, the disruption of national and regional lockdowns and prolonged uncertainty continued to have an impact on enrolments in 2021.

Key Performance Indicator

3.4.1

Programmes delivered on Akorau platform

Actual 2019 Actual 2020 Actual 2021 Target 2021 Target 2022

1 2 6 6 9

The Akorau team gained significant momentum in 2021, achieving the target with six programmes delivered from the online learning platform.

The following programmes were delivered on Akorau in 2021:

› Te Ara Reo Māori He Pi Ka Pao (Level 1 and Level 2)

› Te Ara Reo Māori He Pi Ka Rere (Level 3 and Level 4)

› Te Ara Reo Māori part-time pilot (Level 1)

› Papa Reo – Māori language for beginners (Level 1)

In addition to this, we also developed four new part-time Māori language programmes (Level 1, Level 2, Level 3 and Level 4) and a 10 week cultural competency programme that will be piloted in 2022.

2This result is not available as the Kaiako Capability Strategy was under development in 2019.

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 Planned2021 Planned 2021 Actual 2020 Actual 2019 Actual

Arumoni - Commercial 3,471 3,437 2,112 2,060 3,272

Te Arawhānui (business) 2,756 2,727 1,820 1,792 2,616

Te Arawhānui (computing) 389 386 158 145 372

Umanga (skills, trades and vocations) 326 324 134 124 284

Oranga Hapori - Community 3,364 3,304 3,122 2,754 2,943

Tūāpapa (learning to study/ESOL) 1,516 1,505 1,295 1,165 1,575

Hauora (health and fitness) 539 535 615 478 120

Te Hiringa (education) 351 324 255 235 251

Te Hiringa (health and social services/youth work) 959 940 957 877 996

Ahurea - Culture 11,444 11,367 11,798 9,425 11,904

Angitu (Māori and indigenous people's development) 3,239 3,217 2,685 2,588 3,421

Te Reo Rangatira (Māori language) 6,813 6,766 7,844 5,737 7,015

Toi (Māori and indigenous arts) 1,392 1,384 1,269 1,100 1,467

Total 18,279 18,109 17,032 14,239 18,120

Cost of Service Statement

For the year ending 31 December 2021

Investment Plan Budget TMW Approved Budget Actual 2021 Actual 2020

$000 $000 $000 $000

Revenue

Ahurea - Culture 86,728 100,023 97,725 96,285

Oranga Hapori - Community 19,154 21,113 26,211 24,402

ArumoniCommercial 46,815 35,123 28,325 32,700

Total revenue 152,697 156,259 152,260 153,388

Expenditure

Ahurea - Culture 89,682 102,886 89,427 90,317

Oranga Hapori - Community 16,217 15,672 18,939 19,634

Arumoni -Commercial 50,562 37,284 32,230 36,172

Total expenditure 156,461 155,842 140,594 146,125

Operating surplus/(deficit) -3,764 417 11,666 7,263

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 25 November 2020). These budgets differ as actual Investment Plan funding is approved on an annual basis and is subject to change.

The figures above reflect the unusual operating environment. On the revenue side, reduced income from Investment Plan EFTS was partially offset by a funding increase for each unit of EFTS. On the expenditure side, rising costs were dwarfed by significant savings from operations due to restricted activity and online learning.

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 2021 results are interim as they are subject to validation by the TEC following submission of the final single data return in April 2022.

Participation

The expected number of graduates at Level 1-3

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

2019 Actual 2020 Actual 2021 Interim Result 2021 Target

non-Māori, non-Pasifika 10,444 7,703 5,252 7,000

Māori 6,052 6,118 3,771 5,000

Pasifika 960 1,033 750 1,000

non-Māori, non-Pasifika 50% 51% 47% 48%

Māori 45% 45% 48% 45%

Pasifika 8% 8% 9% 7%

non-Māori, non-Pasifika 35% 33% 32% 30%

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

Māori 59% 61% 63% 60%

Pasifika 9% 10% 10% 10%

non-Māori, non-Pasifika 12% 10% 11% 10%

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

Māori 68% 70% 67% 68%

Pasifika 28% 27% 29%22%

non-Māori, non-Pasifika 9% 6% 11% 10%

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

Māori 77% 71% 71% 80%

Pasifika 20% 29%22% 10%

Graduate numbers continued to decline in 2021 with 9,773 graduates at Level 1-3 down from 14,854 in 2020. This is a significant decline that reflects the drastic reduction in EFTS in 2020 and the effect on motivation to complete studies that is reflected in course completion rates.

Despite the decline in overall numbers, the proportion of enrolled EFTS for each ethnicity grouping remained relatively stable and the majority of targets were 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)

2019 Actual 2020 Actual 2021 Interim Result 2021 Target

non-Māori, non-Pasifika 0%

Māori 0%

Pasifika 0%

non-Māori, non-Pasifika 86% 76% 91% 76%

The first year retention rate for students at Level 7 degree

Māori 68% 71% 75% 76%

Pasifika 77% 74% 79% 76%

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 a dip in 2020, first-year retention rates for Level 7 degree tauira recovered in 2021 exceeding the target and 2019 results for all ethnicity groupings.

Given the timing of the 2021 nationwide lockdown it is likely that it had no impact on the first year retention rates as tauira were well advanced through their second year of study and familiar with online learning.

Course Completion

The course completion rate for students at Level 1-10

non-Māori, non-Pasifika

Māori

Pasifika

Actual 2020 Actual

Interim Result

Other commitments

Commitment 2019 Actual 2020 Actual 2021 Interim Result 2021 Target

The amount of external research income earned $0 $60,000$27,000$60,000

The number of research degrees completed 32 38 17 38

The number of international student EFTS 0 0 0 0

The 2021 course completion results were mixed with the non-Māori, non-Pasifika rate improving by 1%, the rate for tauira Māori remaining steady and the rate for Pasifika tauira declining for a second year. Disappointingly, none of the targets were met.

It is clear that many tauira have found it difficult to continue their studies through the pandemic. This has interrupted progress towards parity of achievement with the gap widening for both Māori and Pasifika tauira since 2019. Although much of this is out of our control, we will continue to do all we can to support our tauira to successfully complete their studies.

Progression

Te Wānanga o Aotearoa received $27,000 in external research income in 2021 through a grant from Ngā Pae o te Māramatanga. The grant was used to upskill kaiako and kaimahi in kaupapa Māori research through a series of workshops facilitated by a number of respected, high profile Māori researchers.

Research degree completions suffered in 2021 with only 17 tauira graduating He Waka Hiringa (Master of Applied Indigenous Knowledge).

The progression rate for students at Level 1-3

non-Māori, non-Pasifika

Māori

Pasifika

Actual 2020 Actual 2021 Interim Result

Target

Progression rates bounced back in 2021 with the proportion of tauira progressing to higher levels of study exceeding 2019 results. Tauira Māori did particularly well achieving the target of 47%.

Te Wānanga o Aotearoa exited out of international provision in 2018. progressing to

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. Motivation to progress has also been tested by the pandemic particularly for tauira with other more pressing commitments.

Tauira Profile

EFTS

Tauira

Tauira Ethnicity

11,926

3,562 10,673

13,348

13,908

14,276

Tauira Age

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 26,412 tauira:

› 55% are Māori, 45% European, 10% Pasifika, 12% Asian;

› 73% are female and 27% male;

› 51% are over 40 years of age;

› 16% had no secondary qualifications and 34% had no prior tertiary qualification; and

› 11% 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.

Part time, home-based and online learning options provide tauira with the ability to upskill without interrupting employment or other responsibilities.

We also take pride in a values-based educational 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 2021 there were 1,461 full and part-time kaimahi, this includes a high proportion of female (70%) and Māori (63%) kaimahi.

Whanau 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.

Rochelle is completing her three-year programme in Tāmaki and says during extended periods of lockdown, she never felt alone or unsure of what was requried.

“We were offered support outside the wānanga and kaiako had taken the time to step out of the classroom environment. There is genuine care and sincerity behind their actions,” she says.

Rochelle also enjoyed seeing first-hand the vision of Te Wānanga o Aotearoa come to life.

“Whānau Transformation Through Education has been the biggest highlight of studying here. Not only was I on this journey, but so was my whānau, and the whānau of all my peers and kaiako. Te Wānanga o Aotearoa understands the importance of whānau to tauira, allowing tauira to bring their tamariki in when needed, but also taking the time to spend with each of us to ensure our mauri was tau. We learnt so many gems that are valued for our kete through wānanga, kai tahi and noho.”

She says studying with Te Wānanga o Aotearoa reminded her of the importance of whakapapa and tūrangawaewae.

“Don’t let go of who you are and why you are here today.”

Support during COVID-19 has been key for Rochelle Mataia during her studies

and

Te

Tauaki Haepapa

Statement of Responsibility

In the financial year ended 31 December 2021, 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 2021.

Te Pūrongo a te kaitātari kaute motuhake

Independent Auditor's Report

To the readers of Te Wānanga o Aotearoa’s financial statements and statement of service performance for the year ended 31 December 2021.

The Auditor-General is the auditor of Te Wānanga o Aotearoa (the Wānanga). 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 on his behalf.

Opinion

We have audited:

› the financial statements of the Wānanga on pages 64 to 117, that comprise the statement of financial position as at 31 December 2021, 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 on pages 28 to 49.

In our opinion:

› the financial statements of the Wānanga on pages 64 to 117:

› present fairly, in all material respects:

› its financial position as at 31 December 2021; and

› its 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 28 to 49:

› presents fairly, in all material respects, the Wānanga’s service performance achievements as compared with the forecast outcomes included in the investment plan for the year ended 31 December 2021; and

› complies with generally accepted accounting practice in New Zealand.

Our audit was completed on 28 April 2022. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the 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.

Vanessa Eparaima

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

The Te Mana Whakahaere is responsible on behalf of the Wānanga for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand.

The Te Mana Whakahaere is also responsible on behalf of the Wānanga for preparing a statement of service performance that is fairly presented and that complies with generally accepted accounting practice in New Zealand.

The 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, the Te Mana Whakahaere is responsible on behalf of the Wānanga for assessing the Wānanga’s ability to continue as a going concern. The Te Mana Whakahaere is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Te Mana Whakahaere intends to liquidate the Wānanga or to cease operations, or has no realistic alternative but to do so.

The 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’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’s internal control.

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

› We evaluate the appropriateness of the reported performance information within the Wānanga’s framework for reporting its performance.

›

We conclude on the appropriateness of the use of the going concern basis of accounting by the 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’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 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 communicate with the 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

The Te Mana Whakahaere is responsible for the other information. The other information comprises the information included on pages 1 to 27 and 50 to 57, 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 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.

Clarence Susan Audit New Zealand

On behalf of the Auditor-General Tauranga, New Zealand

Statement of comprehensive revenue and expense |

For the year ended 31 December 2021

Note

Revenue

Actual 2021 $'000

Budget

$'000

Actual

Statement of changes in net assets / equity |

For the year ended 31 December 2021

Note

Government funding 3 128,343 132,558 133,946

Tauira fees 3 3,436 3,784 3,178

Interest revenue 3 698 665 1,135

Other revenue 3 19,783 19,252 15,129

Total income 152,260 156,259 153,388

Expenditure

Kaimahi costs 4 (87,021) (98,678) (84,244)

Depreciation and amortisation expense 14,15 (11,062) (12,885) (11,798)

Other expenses 5 (42,511) (44,279) (50,083)

Total expenses (140,594) (155,842) (146,125)

Surplus/(deficit) for the year 11,666 417 7,263

Other comprehensive revenue and expense

Gain on property revaluations 32,868 – –

Gain on artworks revaluations 744 – –

Total other comprehensive income 33,612 – –

Total comprehensive income 45,278 417 7,263

Explanations of major variances against budget are provided in note 24.

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

Actual accumulated comprehensive revenue and expense $'000

Actual revaluation reserves $'000

Actual total net assets/equity $'000 Budget $'000

Balance as at 1 January 2021 16 164,967 31,972 196,939192,305

Total comprehensive revenue and expense for the year 11,666 33,612 45,278417

Reverse transfer of revaluation reserves on sale of property 13 (13) 1

Total comprehensive income 11,679 33,600 45,279 417

Balance as at 31 December 2021 176,646 65,572 242,218 192,722

Balance as at 1 January 2020 155,034 34,642 189,676187,052

Total comprehensive revenue and expense for the year 7,263 – 7,263 (3,320)

Transfer of revaluation reserves on sale of property 2,670 (2,670)

Total comprehensive income 9,933 (2,670) 7,263 (3,320)

Balance as at 31 December 2020 164,967 31,972 196,939 183,732

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

Statement of financial

Actual

ASSETS

Current assets

Note

Cash and cash equivalents 6 22,276 4,575 7,489

Tauira and other receivables 7 11,373 12,561 11,490

Other financial assets 10 62,000 42,105 59,000

Inventory 8 2,229 2,111 2,215

Prepayments 1,717 1,101 1,240

Assets held for sale 9 911

Total current assets 99,595 62,453 82,345

Non-current assets

Managed funds 10 47,647 42,816 43,497

Property, plant and equipment14 115,599 86,174 88,083

Intangible assets 15 6,330 13,352 7,130

Total non-current assets 169,576 142,342 138,710

Total assets 269,171 204,795 221,055

LIABILITIES

Current liabilities

Payables 11 16,389 1,386 13,545

Kaimahi entitlements 12 9,708 9,969 9,696

Provisions 13 145 440 277

EECA Crown loan 109 109

Total current liabilities 26,351 11,795 23,627

Non-current liabilities

Provisions 13 466 142 244 EECA Crown loan 136 136 245

Total non-current liabilities 602 278 489

Total liabilities 26,953 12,073 24,116

Net assets 242,218 192,722 196,939

EQUITY

Accumulated funds 16 176,646 158,080 164,967

Reserves 16 65,572 34,642 31,972

Total equity 242,218 192,722 196,939

Statement of cash flows

For

the year ended 31 December

Note

Cash flows from operating activities

Actual 2021 $'000

Budget 2021 $'000

Actual 2020 $'000

Receipts from government grants 134,146 132,382 137,405

Receipts from tauira fees 3,362 3,406 3,266

Interest revenue received 957 665 940

Dividends revenue 3 1,527 587 1,086

Other cash receipts from operating activities 14,556 15,778 13,407

Payments to kaimahi (85,571) (100,880) (83,661)

Payments to suppliers (44,561) (46,374) (47,859)

GST (net) 293 (2,274) 481

Net cash flow from operating activites 24,709 3,290 25,065

Cash flows from investing activities

Sale of property, plant and equipment 1,040 258 3,670

Purchase of property, plant and equipment (3,589) (4,944) (5,282)

Purchase of software development (57) (4,823) (644)

Purchase of programme development (2,666) (2,594) (413)

Purchase of managed funds investments (1,541) (750) (1,089)

Purchase of cash investments (net) (3,000) 5,055 (20,805)

Net cash flow from investing activities (9,813) (7,797) (24,563)

Cash flows from financing activities

Repayment of borrowed funds (109) (109)

Net cash flow from financing activities (109) (109)

Net (decrease)/increase in cash and cash equivalents 14,787 (4,507) 393

Cash and cash equivalents at the beginning of the year 7,489 9,084 7,096

Cash, cash equivalents, and bank overdrafts at the end of the year 6 22,276 4,576 7,489

Explanations of major variances against budget are provided in note 24.

accompanying notes form an integrated part of these financial statements.

Vanessa Eparaima Te Heamana

Chairperson Nepia Winiata Kaiwhakatere

Chief Executive

Statement of cash flows continued |

For the year ended 31 December 2021

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

Surplus/(deficit) after tax 11,666 7,263

Add/(less) non-cash movements

Depreciation and amortisation expense 14,15 11,062 11,798

Asset impairment 128 1,106

Impairment of receivables 30 44

Transfers from DynaSpeak Limited

Managed funds investment net (gains)/losses (2,609) (1,721)

Total non-cash items 8,611 11,227

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

Net (gain) on disposal of property, plant and equipment 307 372

Capitalisation of labour 1,351 (1,108)

Total items classified as investing or financing activities 1,658 (736)

Add/(less) movements in working capital items

(Increase)/decrease in inventories (14) 186 (Increase)/decrease in tauira and other receivables 39 300 (Increase)/decrease in prepayments (471) (115)

(Increase)/decrease in interest accrued 259 (194)

Increase/(decrease) in payables 3,915 3,499

Increase/(decrease) in net GST 293 481

Increase/(decrease) in revenue received in advance (1,210) 1,311

Increase/(decrease) in provisions 90 (61)

Increase/(decrease) in provision for kaimahi entitlements 12 1,799

Increase/(decrease) in fees-free income received in advance (139) 105

Net movement in working capital items 2,774 7,311

Net cash inflow/(outflow) from operating activities 24,709 25,065

Notes to the financial statements |

For the year ended 31 December 2021

1. Statement of accounting policies for the year ended 31 December 2021

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 consisted of the ultimate Parent, Te Wānanga o Aotearoa, and its subsidiary Aotearoa Scholarship Trust (100% controlled) up to 30 November 2021. As from 30 November 2021 Aotearoa Scholarship Trust was dissolved and assets were transferred to Te Wānanga o Aotearoa.

Aotearoa Scholarship Trust 2021 income was $2,457 and expenses were $21,047. The 2020 income was $49,625 and expenses were $46,377.

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 are for the year ended 31 December 2021. The financial statements were authorised for issue on 28 April 2022 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 2021, 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 Te Wānanga o Aotearoa 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 Te Wānanga o Aotearoa during the year.

There have been no changes to the cost allocation methodology since the date of the last audited financial statements.

New amendment applied

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. The new information required by this admendment has been disclosed in Note 18(d).

Notes to the financial

|

For the year ended 31 December 2021

2. Summary of significant accounting policies (continued)

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, are:

PBE IPSAS 41 Financial Instruments

PBE IPSAS 41 Financial Instruments supersedes PBE IPSAS 29 Financial Instruments: Recognition and Measurement. It is effective for the year ending 31 December 2022, with early adoption permitted. The main changes between PBE IPSAS 29 and PBE IPSAS 41 that are relevant to Te Wānanga o Aotearoa are:

› New financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost.

› A new impairment model for financial assets based on expected credit losses, which may result in the earlier recognition of impairment losses.

Te Wānanga o Aotearoa intends to adopt PBE IPSAS 41 for the 31 December 2022 financial year. Te Wānanga o Aotearoa has not yet assessed in detail the impact of the new standard.

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 the year ending 31 December 2023, with early adoption permitted. 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 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.

2.3 Cost allocation

The cost of service for each significant activity of Te Wānanga o Aotearoa 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.

2.4 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 distribution: 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.

Notes to the financial statements |

For the year ended 31 December 2021

2. Summary of significant accounting policies (continued)

Property revaluations:

Note 14 provides information about the estimates and assumptions exercised in the measurement of revalued land and buildings.

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 Te Wānanga o Aotearoa's revenue streams must also be met before revenue is recognised.

Rental revenue

Rental revenue is recognised in the surplus/(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 Te Wānanga o Aotearoa's non-exchange transaction revenue streams must also be met before revenue is recognised.

Student Achievement Component and fees-free funding -31 December 2020 comparative year

In response to COVID-19 the Teritary Education Commission (TEC) confirmed that it will not seek repayment of 2020 Student Achievement Component (SAC) and fees-free funding if there was any under-delivery. Therefore, Te Wānanga o Aotearoa recognised the 2020 funding in full as revenue in the year ended 31 December 2020. There is no such arrangement in place for 2021 funding.

Student Achievement Component Funding (SAC)31 December 2021 year

SAC funding is Te Wānanga o Aotearoa's main source of operational funding from the Tertiary Education Commission (TEC). Te Wānanga o Aotearoa considers SAC funding to be non-exchange and recognises SAC funding as revenue when the course withdrawal date has passed, based on the number of eligible students enrolled in the course at the date and the value of the course.

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.

Notes to the financial statements

the year ended

December 2021

3. Revenue (continued)

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 -31 December 2021 year

Te Wānanga o Aotearoa considers fees-free revenue to be non-exchange revenue and recognises revenue when the course withdrawal date for an eligible student has passed.

Te Wānanga o Aotearoa 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.

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 non-exchange 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.

Notes to the financial statements |

For the year ended 31 December 2021

3. Revenue (continued)

2021 $'000 2020 $'000

Government funding

Student Achievement Component funding 125,117 130,726

Other government funding 3,051 3,044

Performance-based research funding 175 176

Total government funding 128,343 133,946

Tauira fees

Fees from domestic tauira 3,436 3,178

Total tauira fees 3,436 3,178

Interest revenue

Interest revenue 698 1,135

Total interest revenue 698 1,135

Breakdown of other revenue

Contract revenue* 9,969 6,897

Profit on sale of property, plant and equipment 130 84

Dividends from external sources 1,527 1,086

Miscellaneous revenue 5,548 5,341

Gains on managed funds investment (note 10) 2,609 1,721

Total other revenue 19,783 15,129

Total revenue 152,260 153,388

* Contract revenue relates to licences and subcontracting arrangements.

Notes to the financial statements |

For the year ended 31 December 2021

3. Revenue (continued)

Revenue classified as exchange or non-exchange transactions:

2021

Revenue from exchange transactions

Contract revenue* 7,081 3,812

Profit on sale of property, plant and equipment 130 84

Interest revenue 698 1,135

Dividends from external sources 1,527 1,086

Miscellaneous revenue 664 463

Total revenue from exchange transactions 10,100 6,580

Revenue from non-exchange transactions

Student Achievement Component funding 125,117 130,726

Other government funding 3,051 3,044

Fees from domestic tauira 3,436 3,178

Miscellaneous revenue 4,883 4,878

Contract revenue* 2,888 3,085

PBRF revenue 175 176

Gains on managed funds investment (note 10) 2,609 1,721

Total revenue from non-exchange transactions 142,159 146,808

Total revenue from exchange and non-exchange transactions 152,259 153,388

* Contract revenue relates to licences and subcontracting arrangements.

Notes to the financial statements |

For the year ended 31 December 2021

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/(deficit) when incurred.

2021 $'000 2020 $'000

Wages and salaries 84,158 80,572

Other kaimahi costs 2,261 1,980

Employer contributions to defined contribution plans* 2,003 1,881

Increase/(decrease) in employee entitlements (50) 919

Capitalised internal labour (1,351) (1,108)

Total kaimahi costs 87,021 84,244

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

Notes to the financial statements |

For the year ended 31 December 2021

5. Other expenses

Accounting policy

Scholarships

Scholarships awarded by Te Wānanga o Aotearoa 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/(deficit) as a reduction of rental expense over the lease term.

Notes to the financial statements |

For the year ended 31 December 2021

2021 $'000 2020 $'000

Audit fees for financial statements audit (Audit NZ) 250 259

Audit fees for internal audits (other service providers)* 87 86

Impairment of receivables 30 44

Bad debts written-off 152 162

Minimum lease payments – operating leases 4,099 4,019

Consulting fees 3,537 5,004

Small capital purchases 384 358

Loss on sale/ disposal 438 456

He Kupu Whakatau 2,621

Contract tutors 5,778 6,754

Rent 1,640 1,703

Impairment of intangibles, inventory and PPE 166 1,093

Sponsorship and koha 105 212

Occupancy expenses 6,123 6,053

Administration 11,019 13,733

Satellite payments 152 400

Tauira resources 7,633 6,189 Travel 918 937

Total other expenses 42,511 50,083

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

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.

2021 $'000 2020 $'000

Cash at bank and in hand 22,276 7,489

Total cash and cash equivalents 22,276 7,489

While cash and cash equivalents at 31 December 2021 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 at 31 December 2021 (2020: nil).

Notes to the financial statements |

For the year ended 31 December 2021

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 2021 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.

Notes to the financial statements |

For the year ended 31 December 2021

2021 $'000 2020 $'000

Tauira receivables

Tauira fee receivables 608 673

Less: Provision for uncollectability (213) (183)

Net tauira receivables 395 490

Other receivables

Trade receivables 1,464 1,714

Accrued interest 262 522

TEC funding receivable 9,252 8,764

Total other receivables 10,978 11,000

Net tauira and other receivables 11,373 11,490

Total receivables above comprise:

Receivables from exchange transactions 832 1,147

Receivables from non-exchange transactions 10,541 10,343

Total receivables 11,373 11,490

7. Tauira and other receivables (continued)

(a) Fair value

Other receivables are non-interest bearing and receipt is normally on short-term of 30 day terms. Therefore the carrying value of other receivables approximates their fair value.

Tauira receivables are non-interest bearing and receipt is normally on enrolment and no later than graduation. Therefore the carrying value of tauira receivables approximates their fair value.

(b) Impairment

The carrying amount of receivables that would otherwise be past due or impaired and whose terms have been renegotiated is nil (2020: nil).

2021 Gross $'000

2021 Provision for uncollectability $'000

2021 Net $'000

2020 Gross $'000

2020 Provision for uncollectability $'000

2020 Net $'000

Not past due 10,437 10,437 10,231 – 10,231

Past due 1-60 days 114 114 460 460

Past due 60-120 days 287 287 267 267

Past due > 120 days 748 (213) 536 715 (183) 532

Total 11,586 (213)11,373 11,673 (183) 11,490

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.

Notes to the financial

Movements in the allowance for credit losses

as follows:

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

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

Opening allowance for credit losses as at 1 January

in loss allowance made during the year

Receivables written-off during the period

Balance at 31 December

Te Wānanga o Aotearoa 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.

› Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition.

›Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost and net realisable value.

The cost of purchased inventory is determined as follows:

›Inventories held for resale - purchase cost is on a weighted average cost

› Materials and consumables to be utilised for rendering of services - purchase cost is on a first-in, first-out basis.

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

Notes to the financial statements |

For the year ended 31 December 2021

Inventories held for distribution

in progress

inventory

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 Te Wānanga o Aotearoa in 2021 is $3.2m (2020: $2.5m). These figures form part of tauira resources which is disclosed in note 5, other expenses.

No inventories held for distribution were written-down during 2021 (2020: $0.14m). There have been no reversals of write-downs in 2021 (2020: nil).

A provision made for the inventories held for distribution due to tauira resources being revised and redeveloped amounted to $0.1m (2020: nil)

No inventories are pledged as security for liabilities (2020: 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/(deficit). Any increases in fair value less costs to sell are recognised in the surplus/(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.

Land

Buildings

Total

During 2020 Te Mana Whakahaere agreed to sell 5 of the 6 warehouses owned at Rickit Road in Te Awamutu, because they would provide no future use to Te Wānanga o Aotearoa.

Two warehouses were sold and settled in 2020. Three warehouses were held for sale in 2020 and settled in May 2021.

Notes to the financial

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/(deficit) in which case the transaction costs are recognised in the surplus/(deficit). Purchases and sales of financial assets are recognised on tradedate, the date on which Te Wānanga o Aotearoa 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 has transferred substantially all the risks and rewards of ownership.

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.

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/(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 classified as held for trading.

After initial recognition, the managed fund is measured at fair value, with gains and losses recognised in the surplus/(deficit).

The financial assets are classified into the following categories for the purpose of measurement:

› fair value through surplus/(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 at fair value through surplus/(deficit)

Financial assets at fair value through surplus/(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.

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.

After initial recognition, financial assets in this category are measured at their fair values with gains or losses on remeasurement recognised in the surplus/(deficit).

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 surplus/(deficit) 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 noncurrent assets unless management intends to dispose of, or realise, the investment within 12 months of balance date.

Te Wānanga o Aotearoa 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/ (deficit).

On derecognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus/(deficit).

Notes to the financial statements |

For the year ended 31 December 2021

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/(deficit).

2021 $'000 2020 $'000

Current portion

Term deposits with maturities <12 months 62,000 59,000

Total current portion 62,000 59,000

Non-current portion

Managed funds 47,647 43,497

Total non-current portion 47,647 43,497

Total other financial assets 109,647 102,497

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 1.3% (2020: 1.4%).

Notes to the financial statements |

For the year ended 31 December 2021

Notes to the financial statements |

For the year ended 31 December 2021

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.

2021 $'000 2020 $'000

Fixed interest fund

Fixed interest - NZ 1,631 6,712

Fixed interest - International 4,907 13,840

Equity

Equity securities - NZ 19,034 12,918

Equity securities - Australia 20,428 9,396

Cash Cash - NZD 1,647 631

Total managed funds 47,647 43,497

Gains in market value of investments

10. Other financial assets (continued) 2021 $'000 2020 $'000

Unrealised gains on assets at fair value through surplus/(deficit)

Equity securities - NZ 1,702 839

Equity securities - Australia 1,434 201

Fixed interest - NZ 338

Fixed interest - International 397

Total unrealised gains on assets at fair value through surplus/(deficit) 3,136 1,775

Realised gains on assets at fair value through surplus/(deficit)

Fixed interest - International 2

Fixed interest - NZ 3

Equity securities - NZ 195 218

Equity securities - Australia 60

Cash 18

Total realised gains on assets at fair value through surplus/(deficit) 257 239

Total gain in market value of investments 3,393 2,014

10. Other financial assets (continued)

Losses in market value of investments

2021 $'000 2020 $'000

Unrealised losses on assets at fair value through surplus/(deficit)

Fixed interest - NZ 100

Fixed interest - International 91

Equity securities - NZ 23 260

Equity securities - Australia 83

Cash 1

Total unrealised losses on assets at fair value through surplus/(deficit) 298 260

Realised losses on assets at fair value through surplus/(deficit)

Fixed interest - NZ 150

Fixed interest - International 252

Equity securities - NZ 34

Cash 83

Total realised losses on assets at fair value through surplus/(deficit) 485 34

Total loss in market value of investments 783 294

Impairment

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

Notes to the financial

Payables

Accounting policy

Short-term

and other payables

Payables

Trade payables

Accrued

advance

Payables

revenue

government

Total current portion

Total non-current portion

Total payables and deferred revenue

Creditors and other payables

value.

non-interest bearing and are normally settled on terms varying between

of the month following invoice

Deferred non-exchange revenue relates to

Non-exchange revenue in

terms and conditions

the

and other

and donations received to which there are stipulated

3,579

1,417

6,923

3,406

3,216

6,622

13,545

13,545

Notes to the financial statements |

For the year ended 31 December 2021

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/(deficit) when incurred.

Notes to the financial statements |

For the year ended 31 December 2021

2021 $'000 2020 $'000

Current portion

Annual leave 6,348 6,412

Accrued salaries 3,085 3,023

Sick leave 275 261

Total current portion 9,708 9,696

Non-current portion

Total non-current portion

Total kaimahi entitlements 9,708 9,696

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.

2021 $'000 2020 $'000

Current Portion

Lease make-good 145 277

Total current portion 145 277

Non-current portion

Lease make-good 466 244

Total non-current portion 466 244

Total provisions 611 521

Movements for provisions are as follows: 2021 $'000 2020 $'000

Balance at 1 January 521 582

Movement in other provisions 90 (61)

Balance at 31 December 611 521

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 May 2022, August-September 2022, November-December 2022, January-April 2023, June 2023, August 2023, NovemberDecember 2023, November-December 2024, January 2025, September 2025, November 2025 and April 2026. Information about Te Wānanga o Aotearoa leasing arrangements are disclosed in note 22.

Notes to the financial

For the year ended 31 December 2021

14. Property, plant and equipment

Accounting policy

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

Items of property, plant and equipment are subsequently measured under the following:

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

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

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

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

(i) Revaluation

Land, buildings and artwork are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value and at least every three years for land and buildings and at least every five years for artwork.

The carrying values of revalued classes are assessed annually to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the off-cycle asset classes are revalued.

Property, plant and equipment revaluation movements are accounted for on a class-of-asset basis.

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

(ii) Additions

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

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

In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value and as at the date of acquisition.

(iii) Disposals

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

When revalued assets are sold, the amounts included in the revaluation reserve in respect of those assets are transferred to accumulated surplus/(deficit) within equity.

(iv) Subsequent costs

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

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

(v) Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment (excluding land and artwork) at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

Notes to the financial statements |

For the year ended 31 December 2021

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 Depreciation rates

Buildings

Leasehold improvements

Furniture and equipment

Computers

1-50 years 2%-100%

Expiry of lease including renewal periods

2-19 years 5%-50%

2-5 years 20%-50%

Motor vehicles 1-5 years 20%-100%

Waka

5-10 years 10% -20%

Library books 10 years 10%

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.

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

(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.

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.

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.

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 revaluation reserve, the balance is recognised in the surplus/ (deficit).

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

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/(deficit), a reversal of the impairment loss is also recognised in the surplus/(deficit).

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

Value in use for non-cash-generating assets

Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return.

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

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.

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

14. Property, plant and equipment (continued)

2021 Cost Land $'000 Buildings $'000

Leasehold Improvements $'000 Furniture & Equipment $'000

Computers $'000 Motor Vehicles $'000 Artwork $'000 Library Books $'000 Waka $'000 Work in Progress $'000 Total $'000

Balance as at 1 January 2021 30,400 52,539 10,027 6,585 7,732 8,063 3,621 2,832 745 1,040123,584

Additions 741 587 1,044 1,347 278 75 32 10 2,230 6,344 Disposals (72) (280) (529) (2,416) (365) (55) (3,717)

Revaluation surplus 20,365 (3,402) 745 17,708

Reclassification (46) 46 (3,039) (3,039)

Impairment charge recognised in surplus/(deficit) (52) (52)

Balance as at 31 December 2021 50,765 49,760 10,380 7,100 6,663 7,976 4,386 2,812 755 231140,828

Accumulated depreciation

Balance as at 1 January 2021 (10,751) (5,012) (4,165) (5,667)(7,242) (2,055) (609) (35,501)

Disposals 37 275 442 2,186 341 3,281

Revaluation reversal 15,904 15,904

Impairment charge recognised in surplus/(deficit) 31 31

Depreciation charge (5,209) (758) (989) (1,256) (457) (237) (38) (8,944)

Balance as at 31 December 2021 (19) (5,495) (4,712) (4,737)(7,358) (2,261) (647) (25,229)

Net book value

As at 1 January 2021 30,400 41,788 5,015 2,420 2,065 821 3,621 777 136 1,040 88,083

As at 31 December 2021 50,765 49,741 4,885 2,388 1,926 618 4,386 551 108 231115,599

2020 Cost Land $'000 Buildings $'000 Leasehold Improvements $'000 Furniture & Equipment $'000 Computers $'000 Motor Vehicles $'000 Artwork $'000 Library Books $'000 Waka $'000 Work in Progress $'000 Total $'000

Balance as at 1 January 2020 31,623 54,075 8,890 6,035 6,796 8,148 3,695 2,799 745 286123,092

Additions 990 1,244 1,000 1,116 68 8 49 5,550 10,025 Disposals (350) (1,163) (107) (450) (180) (153) (82) (2,485)

Reclassification (873) (1,363) (4,796) (7,032)

Impairment charge recognised in surplus/(deficit) (16) (16)

Balance as at 31 December 2020 30,400 52,539 10,027 6,585 7,732 8,063 3,621 2,832 745 1,040123,584

Accumulated depreciation

Balance as at 1 January 2020 (5,615) (4,494) (3,629) (4,565)(6,760) (1,801) (571) (27,435)

Disposals 490 106 451 177 153 1,377

Impairment charge recognised in surplus/(deficit) 11 11

Depreciation charge (5,626) (624) (987) (1,279) (635) (265) (38) (9,454)

Balance as at 31 December 2020 (10,751) (5,012) (4,165) (5,667)(7,242) (2,055) (609) (35,501)

Net book value

As at 1 January 2020 31,623 48,460 4,396 2,406 2,231 1,388 3,695 998 174 286 95,657

As at 31 December 2020 30,400 41,788 5,015 2,420 2,065 821 3,621 777 136 1,040 88,083

Notes to the financial

14. Property, plant and equipment (continued)

Valuation

The most recent valuation of land and buildings were performed by independent valuers, Carl Waalkens and Joshua Higgie of Bayleys Valuation Services as at 31 December 2021.

Land and buildings using market-based evidence Land and non-specialised buildings are valued at fair value using market-based evidence. The main marketbased valuation methods applied were capitalised income and discounted cashflow methods. The capitalised income method considers both sales and leasing evidence by using market rents and capitalisation rates to determine the current fair value. The discounted cashflow method has been calculated on a 10-year investment period with discount rates between 7% and 7.25% to provide the net present fair value.

Market rents range from $0.025m to $1.9m per annum. An increase (decrease) in market rents would increase (decrease) the fair value of non-specialised buildings.

Capitalisation rates are market-based rates of return and range from 4% to 9%. An increase (decrease) in the capitalisation rate would decrease (increase) the fair value of non-specialised buildings.

Specialised buildings

Where applicable, the depreciated replacement cost method was considered for specialised buildings (for example, campuses) to determine the fair value.

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 QV costbuilder costs data and where relevant, recent construction contracts of similar assets. Construction costs range from $1,450 to $4,600 per square metre, depending on the nature of the specific asset valued. This range reflects the different components of buildings, ranging from ground service areas to accommodation blocks.

Artwork

The most recent valuation of artwork was performed by an independent valuer, Erika Chamberlain of Antique and Art. The valuation was undertaken in accordance with PBE IPSAS 17 using fair value and is effective as at 31 December 2021.

Determination of fair value has been made by:

› 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 process both in the primary retail market and secondary auction market.

› If there is no active market, fair value is determined by other market-based evidence adjudged by active and knowledgeable participants in the market.

Impairment

No impairment losses (2020: 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 $0.0m (2020: $0.0m) 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”.

Notes to the financial statements |

For the year ended 31 December 2021

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:

2021 $'000 2020 $'000

Class Equipment 113 582 Buildings 117 368

Leasehold improvements 1 90

Total 231 1,040

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 (2020: nil).

Notes to the financial

For the year ended 31 December 2021

15. Intangible assets

Accounting policy

Intangible assets are initially recorded at cost except for:

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

All of Te Wānanga o Aotearoa'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 Te Wānanga o Aotearoa.

Following initial recognition of programme development costs, the cost model is applied and the asset is carried at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

A summary of policies applied to Te Wānanga o Aotearoa's intangible assets is as follows:

Class of intangible asset Estimated useful life Method used

Computer softwareFinite –5 years Straight-line method Programme development costs Finite –5 years Straight-line method

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. The amortisation period starts when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation method for each class of intangible asset having a finite life is reviewed at the end of each financial year. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. The amortisation for each period is recognised in the surplus/(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/(deficit) when the asset is derecognised.

All other research and development costs are recognised as expenses in the surplus/(deficit) in the year in which they are incurred.

Notes to the financial statements |

the year ended 31 December 2021

15. Intangible assets (continued)

Impairment of intangible assets

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

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

If an asset's carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount.

The total impairment loss is recognised in the surplus/ (deficit).

2021

Year ended 31 December 2021

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 assets are as follows:

Software $'000

Programme Development $'000

Work in Progress $'000 Total $'000

Opening net book value 1,057 3,694 2,379 7,130

Additions 15 1,136 1,672 2,823

Reclassification (1,466) (1,466)

Impairment charge (39) (39)

Amortisation charge (507) (1,611) (2,118)

Closing net book value 565 3,180 2,585 6,330

At 31 December 2021

Cost 4,677 12,246 2,585 19,508

Accumulated amortisation and impairment (4,112) (9,066) (13,178)

Net book value 565 3,180 2,585 6,330

Notes to the financial

the year ended 31 December 2021

15. Intangible assets (continued)

2020 Software $'000

Year ended 31 December 2020

Programme Development $'000

Work in Progress $'000 Total $'000

Opening net book value 1,496 5,259 1,215 7,970

Additions 323 168 1,824 2,315

Reclassification (354) (354)

Impairment charge (27) (127) (306) (460)

Amortisation charge (735) (1,606) (2,341)

Closing net book value 1,057 3,694 2,379 7,130

At 31 December 2020

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

Accumulated amortisation and impairment (3,605) (7,672) (11,277)

Net book value 1,057 3,694 2,379 7,130

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 $0.04m in 2021 (2020: $0.46m). 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 (2020: nil).

Notes to the financial statements |

For the year ended 31 December 2021

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.

Accumulated funds

Balance at 1 January 164,967 155,034

Transfers from reserves upon sale of property 2,670

Reverse transfer of revaluation reserves on sale of property 13

Surplus/(deficit) 11,666 7,263

Balance at 31 December 176,646 164,967

Property, plant and equipment revaluation reserve

Balance at 1 January 31,972 34,642

Property revaluation reserve transfer on disposal (2,670)

Reversal of transfered revaluation charge on sale of property (13)

Land net revaluation gains 20,365

Buildings net revaluation gains 12,503

Artwork net revaluation gains 745

Balance at 31 December 65,572 31,972

Property revaluation reserves for each asset class consist of:

Land 41,054 20,688

Buildings 23,773 11,284

Artwork 745

Total 65,572 31,972

Notes to the financial statements |

For the year ended 31 December 2021

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 2021.

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.

Notes to the financial statements |

For the year ended 31 December 2021

17. Early learning centres

During 2021, Te Wānanga o Aotearoa received total grants of $2.6m from the Ministry of Education for early learning purposes (2020: $2.6m). These grants have been classified as non-exchange revenue.

2021 $'000 2020 $'000

Apakura Te Kākano

Bulk funding 563 528

Language and kaupapa 4 5

Total Ministry of Eduction funding received 567 533 Funds applied to:

Salaries 534 514

Faculty support

Provision of meals for tamariki 12 11

Property occupancy costs 17 Resources 4 8

Total funds applied 567 533 Nga Kākano o te Manukau

Bulk funding 275 385

Low socio-economic 12 18

Special needs 6 9 Language and kaupapa 4 5

Total Ministry of Education funding received 297 417

Funds applied to:

Salaries 297 389

Faculty support

Provision of meals for tamariki 9

Property occupancy costs 19

Resources

Total funds applied 297 417 Te Rau Oriwa

Bulk funding 460 423

Low socio-economic 20 20

Special needs 9 10

Language and kaupapa 4 5

Total Ministry of Education funding received 493 458

Notes to the financial statements |

For the year ended 31 December 2021

17. Early learning centres (continued)

2021 $'000 2020 $'000

Funds applied to:

Salaries 445 458

Faculty support

Resources 4

Property occupancy costs 32

Provision of meals for tamariki 12

Total funds applied 493 458

Raroera Te Puawai

Bulk funding 614 653

Low socio-economic 13 16

Special needs 12 14

Language and kaupapa 4 5

Total Ministry of Education funding received 643 688

Funds applied to:

Salaries 588 642

Faculty support 12

Property occupancy costs 28 27

Provision of meals for tamariki 11 12

Resources 4 7

Total funds applied 643 688

Whare Amai

Bulk funding 578 498

Low socio-economic 25 24

Special needs 12 12

Language and kaupapa 4 5

Total Ministry of Education funding received 619 539

Funds applied to:

Salaries 497 468

Faculty support 18 6

Provision of meals for tamariki 5 11

Property occupancy costs 26 28

Resources (includes $20k playground development cost) 5 26

Depreciation 68

Total funds applied 619 539

Notes to the financial

|

the year ended 31 December 2021

18. Financial instruments

Te Wānanga o Aotearoa's activities expose it to a variety of financial risks (market risk, liquidity risk and credit risk). Te Wānanga o Aotearoa's risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of Te Wānanga o Aotearoa. Te Wānanga o Aotearoa 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's financial assets and liabilities are presented as follows:

Notes to the financial statements |

For the year ended 31 December 2021

Financial assets

Cash and cash equivalents 22,276 7,489

Tauira and other receivables 11,373 11,490

Term deposits 62,000 59,000

Total financial assets 95,649 77,979

Financial assets mandatorily measured at fair value through surplus/ (deficit) - held for trading

Managed fund 47,647 43,497

Total held for trading 47,647 43,497

Financial liabilities

Creditors and other payables 16,389 13,545

Total financial liabilities 16,389 13,545

(b) Fair value hierarchy

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

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

› Valuation technique using observable inputs (level 2) – Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

› Valuation techniques with significant non-observable inputs (level 3) – Financial instruments valued using models where one or more significant inputs are not observable.

18. Financial instruments (continued)

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

Valuation technique

Total $'000

31 December 2021 Financial assets

Quoted market price $'000

Managed fund 47,647 47,647

Total financial assets 47,647 47,647

31 December 2020 Financial assets

Managed fund 43,497 43,497

Total financial assets 43,497 43,497

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

Observable inputs $'000

Significant nonobservable inputs $'000

Notes to the financial

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 and software licences from overseas 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, Te Wānanga o Aotearoa trades only with recognised and creditworthy third parties.

Receivable balances are monitored on an on-going basis with the result that Te Wānanga o Aotearoa 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.

Notes to the financial statements |

For the year ended 31 December 2021

18. Financial instruments (continued)

2021 $'000 2020 $'000

Cash at bank and term deposits

AA- 84,276 64,255

Total cash at bank and term deposits 84,276 64,255

2021 $'000 2020 $'000

Managed funds (bonds)

AA 4,673 15,102

A- 2,564 5,550

Total managed funds (bonds) 7,237 20,652

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 facilities and the ability to close out market positions. Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available. 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

flows

than 1 year

16,389 16,389

Total 16,38916,38916,389

1-2 years $'000 2-5 years $'000

More than 5 years $'000

13,545 13,545

Total 13,54513,54513,545

Notes to the financial statements |

For the year ended 31 December 2021

Financial instruments (continued)

Contractual maturity analysis of financial assets

Notes to the financial statements |

For the year ended 31 December 2021

18. Financial instruments (continued)

(d) Reconciliation of movements in liabilities arising from financing activities

The table below shows an analysis of Te Wānanga o Aotearoa financial assets grouped

based on the remaining period at the balance date to the contractual maturity date.

Carrying amount $'000

Contractual

2021

Less than

Secured loans $'000

Balance at 1 January 2021 354

Net cash flows (109)

Balance at 31 December 2021 245

Cash and cash equivalents 22,27622,27622,276

Tauira and other receivables 11,37311,37311,373

Other financial assets: Term deposits 62,00062,00062,000

Total 95,64995,64995,649

2020

Cash and cash equivalents 7,489 7,489 7,489

Tauira and other receivables 11,49011,49011,490

Other financial assets: Term deposits 59,00059,00059,000

Total 77,97977,97977,979

Sensitivity analysis

The tables below illustrate the potential impact to

reasonably

movements

Te Wānanga o Aotearoa at balance date.

Finance leases $'000

Interest rate swaps $'000

Interest rate risk

Cash and cash equivalents

assets

Other financial assets (1,096)

Total sensitivity (1,319) 1,319

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

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 would have adopted in dealing with the party at arm's length in the same circumstances.

Related party transactions required to be disclosed

Te Wānanga o Aotearoa provided consultancy services totalling $5,000 (2020: nil) to Te Rūnanga o Ngāti Awa, an iwi organisation, in which the uepū Executive Director had affiliations and the negotiations were with a former Te Wānanga o Aotearoa employee. The services provided were at a significant discount compared to other recent design consultancy contracts Te Wānanga o Aotearoa has entered into.

Notes

Te Mana Whakahaere (Current)

Katie Bhreatnach Council/HR_Remuneration

Vanessa Eparaima Council Chair/HR_Remuneration

Robert Gabel Council/Audit

Bryan Hemi Council

Steve Ruru Council/Audit

Jon Stokes Council/HR_Remuneration Board

Bella Takiari-Brame Council/Health

Independent members of other committees

Board

Ainsleigh Cribb-Su'aAcademic Board Dec-15

Claudia Vidal Audit & Risk Sep-17

Jaydene Kana Audit & Risk Apr-19

Colin Magee Audit & Risk Apr-19

Kieran Hewitson Academic Board May-20Oct-21

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

Joanna Kelly Investment Committee Aug-21

Previous council

members

Josh Wharehinga Council/Academic Board

Notes to the financial statements |

For the year ended 31 December 2021

20. Key kaimahi remuneration (continued)

$'000

Key management kaimahi remuneration:

Ngā Tumu/ senior management 2,396 2,435

Total key management personnel remuneration 2,396 2,435

$'000 2020 $'000

Short-term and kaimahi welfare benefits 2,343 2,369

Other long-term benefits – KiwiSaver 53 66

Total key management personnel remuneration 2,396 2,435

Total remuneration includes any non-financial benefits provided to kaimahi, including motor vehicle, medical insurance, life insurance and income protection insurance.

Notes to the financial statements |

For the year ended 31 December 2021

2020

Number of key management kaimahi and governance members:

Ngā Tumu/ senior management 8 11

Te Mana Whakahaere and sub-committees 17 17

Total 25 28

To determine 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.

21. Contingencies

Contingent liabilities

Litigation

Te Wānanga o Aotearoa has four legal claims outstanding as at the balance date (2020: One). The claims relate to disputes with internal parties. Te Wānanga o Aotearoa has not disclosed the details of these claims as it may seriously prejudice the position of Te Wānanga o Aotearoa with respect to disputes with the other internal parties.

Te Wānanga o Aotearoa is aware of a potential legal claim and has not included this as a contingency. At the time of writing this report, the amount of this claim was unknown. No further details are disclosed about this contingency due to its commercial sensitivity.

Financial guarantee

Te Wānanga o Aotearoa has no financial guarantees in place as at balance date (2020: nil).

Contingent assets

Te Wānanga o Aotearoa has no contingent assets as at balance date (2020: nil).

22. Capital commitments and operating leases

Accounting policy

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/(deficit) on a straight-line basis over the lease term.

Lease incentives received are recognised in the surplus/(deficit) as a reduction of rental expense over the lease term.

Capital commitments

Capital commitments represent capital expenditure contracted for at balance date, but not recognised in the financial statements are as follows;

Capital commitments

Notes to the financial statements |

For the year ended 31 December 2021

22. Capital commitments and operating leases (continued)

Operating leases as lessee

Te Wānanga o Aotearoa has entered commercial leases on certain buildings where it is not in the best interest of Te Wānanga o Aotearoa to purchase these assets.

These leases have a life of between 1 and 12 years with renewal terms included in the contracts. Renewals are at the option of Te Wānanga o Aotearoa. 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:

2021 $'000 2020 $'000

Within one year 4,175 3,764

After one year and not later than five years 4,924 5,497

Later than five years 448

Total non-cancellable operating leases 9,099 9,709

Operating leases as lessor

Te Wānanga o Aotearoa owns a number of buildings and has entered commercial leases where it is not in the best interest of Te Wānanga o Aotearoa to use these buildings for their operations.

These leases have an average life of between 1 and 3 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:

$'000 2020 $'000

Within one year 323 241

After one year and not later than five years 233 402

Total non-cancellable operating leases 556 643

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

Notes to the financial statements |

For the year ended 31 December 2021

23. Events after the balance date

There are two events after balance date (2020: one).

On Friday 18 February 2022 the acting Te Taiurungi Nepia Winiata was announced as the Kaiwhakatere (Chief Executive) of Te Wānanga o Aotearoa.

On Monday 21 February 2022 the Outbreak Infection and Transmission Policy was adopted by Te Wānanga o Aotearoa following consultations and communications with kaimahi and stakeholders starting in November 2021.

The introduction of the new policy included the requirement for all kaimahi, tauira, contractors and manuhiri who access TWoA campuses and sites to be fully vaccinated against COVID-19 from February 21, 2022.

This decision was guided by the responsibility Te Wānanga o Aotearoa has to provide an āhuru mōwai (safe haven) to ensure the health and safety of kaimahi, contractors, tauira and communities and to minimise harm (or eliminate it) caused by COVID-19.

Notes to the financial

24. Explanation of major variances against budget

Accounting policy

It should be noted Te Wānanga o Aotearoa 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.

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

Statement of comprehensive revenue and expense

Te Wānanga o Aotearoa result was a surplus of $11.7m (7.7% of total revenue) which was $11.2m above budget.

Government funding was $4.2m below budget. EFTS consumption was 991 below target a negative impact of COVID-19 restrictions offset by additional funding received for the Hardship Fund for Learners (HAFL) and the Technology Access Fund for Learners (TAFL) support tauira as a result of hardships they faced because of COVID-19 restrictions.

Kaimahi costs were $11.7m favourable to budget mainly due to unfilled vacancies and the need for less kaimahi due to lower EFTS. Kaimahi training and development costs were also favourable due to COVID-19 restrictions impacting the ability to deliver/provide training and development.

Depreciation and amortisation was $1.8m below budget due to lower than budgeted capital expenditure.

Other expenses were $1.8m favourable to budget. Expenditure was lower across almost all categories due to the COVID-19 restrictions effecting ability to spend as planned. 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 $17.7m higher than budget due to the timing of term deposit maturity and investment.

Tauira and other receivables were $1.2m lower 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.

Other financial assets were $19.9m higher than budget from higher cash-flows from operations than planned due to lower operational and capital expenditure. The budget also assumed different timing of maturity and investment than actual.

Funds management is $4.8m higher than budget from better than expected returns on investments.

Property, plant and equipment were $29.4m higher than budget from the unplanned impact of property revaluations.

Intangible assets were $7.0m lower than budget due to planned capital expenditure not proceeding or being deferred as planned due to changes in scope or resourcing availability.

Payables were $15.0m higher than budget as the budget did not include other government funding of $9.2m as being payable at year-end or take into account the deferment of year-end tax payments.

Kaimahi entitlements were $0.3m lower than budget because the budget assumed less annual leave would be taken by year-end than was actually taken.

Statement of cash flows

Government funding receipts were $1.8m higher than budget due to unplanned HAFL funding received to support tauira as a result of hardships they faced because of COVID-19 restrictions.

Other cash receipts from operating activities were $1.2m lower than budget from reduced contract and subcontracting income impacted by COVID-19 restrictions being unable to meet milestones.

Payments to kaimahi were $15.3m below budget due largely to unfilled vacancies and the need for less kaimahi as a result of fewer EFTS.

Payments to suppliers were $1.8m below budget as cost savings were achieved across most cost categories as a result of COVID-19 restrictions.

GST payments were $2.6m below budget due to deferment of year-end IRD payments.

Purchases of PPE were $1.4m below budget due to planned capital expenditure not proceeding or being delayed.

Purchases of software were $4.8m below budget due to planned capital expenditure not proceeding or being deferred as planned due to changes in scope or resourcing availability.

Purchases of cash investments (net) were $8.1m below budget because the budget assumed different timing of maturity and investment than actual.

Notes to the financial statements |

the year ended 31 December 2021

25. The effects of COVID-19 on Te Wānanga o Aotearoa

Since the outbreak of the COVID-19 global pandemic in 2020, the New Zealand Government has implemented a range of domestic restrictions and border controls to limit the spread of the virus. The impact of the pandemic and Government measures to mitigate its impact continued throughout 2021.

The 2020 lockdown coincided with the start of Semester A and had a major impact on enrolments and education performance indicators. Although the timing of the 2021 regional lockdown in mid-August lessened the impact, the ongoing disruption and environment of uncertainty continued to affect both enrolments and education performance.

The results in the 2021 Statement of Service Performance and financial statements should be considered in the context of the timing, and subsequent impact, of these nationwide and regional COVID-19 restrictions. The broad impact of the pandemic is reflected in these financial statements based on the information available to the date these financial statements were 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 30.

Government funding

Unlike 2020, the Tertiary Education Commission (TEC) did not guarantee 2021 funding for Investment Plans and Feesfree. Consequently, the TEC is expected to recover funding for non-achievement of Education Performance Indicators (EPI) or under-delivery during the 2021 year. This is reflected in the Payables – Other government funding increase from 2020, as disclosed in note 11.

Tauira numbers and fees revenue

Te Wānanga o Aotearoa domestic EFTS were significantly affected by the pandemic, falling short of the target at 95% of budgeted EFTS.

Tauira fees were 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 through continuing online delivery developed through the 2020 COVID-19 restrictions and reduction in travel and other services.

Operating expenses

As a result of COVID-19, Te Wānanga o Aotearoa has incurred significant cost savings in operating expenses.

Kaimahi worked from home and online delivery was reinstated, as required, to continue operations while complying with Government directives. Savings followed in travel, accommodation, hospitality, property and faculty costs. Savings across most other cost categories were also achieved due to COVID-19 restrictions impeding ability to carry out plans as budgeted.

Impairment of Assets

Impairment assessments have been completed for tangible and intangible assets and no significant increases in impairment have arisen due to COVID-19.

The recoverability of receivables has been reviewed and no significant increases in impairment have arisen due to COVID-19.

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.