Contents 2 |
04 . Key Statistics 24 . Industry Advisory Committees 54 . National Contribution 06 . Chairperson’s Report 28 . Student Benefits 60 . International Recognition 10 . Chief Executive’s Report 36 . Academic Leadership 66 . Our People 18 . The Choice Protocol 42 . Community Connections 69 . Statement of Objectives 20 . Council Members 44 . Business and Industry and Service Performance 22 . Executive Management Team 52 . Regional Impacts 74 . Business Plan Performance
WELLINGTON INSTITUTE OF TECHNOLOGY
77. Financial Statements 109. Responsibilities 110 . Independent Auditor’s Report 114 . Acronyms
Vision
Matakite
Wellington Institute of Technology’s vision is to be a leader in applied learning; meeting the needs of our learners who are “the new professionals” and adding value through our strategic partnerships with iwi, communities, industries, professions and other education organisations.
Values
Taonga
In order to deliver our promise that learning for the 21st century is a collaborative venture:
We aspire to providing the Best Learning Environment We believe Learning Happens Together Our values are Empathy, Challenge and Growth
Mission Kaupapa Our graduates will be knowledgeable, highly skilled and work-ready. They: • Are well-informed and able to access, use and adapt knowledge; • Combine high level technical ability with creative/entrepreneurial thinking; • Are able to learn throughout life; and • Enhance workplace productivity and community development The relevance of our graduates and WelTec’s contribution to the regional and national economy is assured through our close partnership with industry and commitment to R & D and technology transfer activities that address directly the needs of industry and professions.
2013 ANNUAL REPORT
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Key Statistics
students enrolled
4 4
studentscampuses enrolled
2009 8,700 students
campuses wellington // petone // auckland // wellington // christchurch
petone // auckland // christchurch
4,218 4,218
EFTS
EFTS
Students under 25 studied
Students under 25 studied
of total EFTS delievered were at
of the level 4 - 7
level 4 - 7 EFTS delivered of total EFTS delievered were at
level 4 - 7
of the level 4 - 7 EFTS delivered
Education Performance Indicators (SAC 3+ EFTS)*
82% Course Completions
72% Qualification Completions
37%
72% Retained in Study
Progression to Higher Level of Study *Provisional as advised by TEC March 2014
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WELLINGTON INSTITUTE OF TECHNOLOGY
Funding
Student Statistics
By Source SAC3+ 61% SAC 1 and 2 5%
By Age
International 9% Full Fee 3%
Under 21 44%
Star 5%
21 - 25 24%
ITO 11%
25 - 34 18%
Youth Guarantee 3%
35+ 14%
Adult and Community Education 1% Trades Academy 2%
By Region Wairarapa 2%
By Gender
UpperHutt 9% Lower Hutt 34%
Female 35%
Wellington 29%
Male 65%
Porirua 5% Kapti Coast 2% Auckland/Northland 5% Central North Island 10% South Island 4%
By Ethnicity Highest Entry Qualification
NZ European/Pakeha 52% NZ Maori 14% Pacific Islander 10%
No formal secondary school qualification 16%
Australian 1%
14 or more credits at any level 5%
Asian 15%
NCEA Level 1 or School Certificate 19%
European 5%
NCEA Level 2 or 6th Form Certificate/ University Entrance 32%
Other 3%
NCEA Level 3 or Bursary or Scholarship 9% Overseas Qualification (includes International Baccalaureate & Cambridge Exams) 18% Other 1%
Total EFTS by School School of Business and Information Technology
764
School of Construction
436
School of Creative Industries
424
School of Engineering Technology
1169
School of Foundation Studies
323
School of Health and Social Services
504
School of Hospitality
508 90
Wellington Trades Academy 0
200
400
600
800
1000
1200
2013 ANNUAL REPORT
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Roger Sowry at 222 Willis, WelTec’s student accommodation
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WELLINGTON INSTITUTE OF TECHNOLOGY
Chairperson’s Report Whakarongo ake au Ki te tangi a te manu nei Tuuii, tuuii Tui, tuia Tuia I runga Tuia I raro Tuia I roto Tuia I waho Tihei mauri ora
I listen To the cry of the bird The Tui Bind together, stitch together, weave together Those things from above Those things from below Those things from within us Those things from around us Behold the sacred breath of life
Tena koutou katoa Welcome to the 2013 Annual Report for the Wellington Institute of Technology. The Annual Report outlines our performance for the year and includes numerous outstanding student and staff achievements. The Annual Report provides an opportunity for us to celebrate our successes in a formal document and reflect on a year of change and challenge. This was a year where we really started to see momentum on a number of fronts. An enhanced learning environment for students was a major focus. The completion of 222 Willis Street student accommodation in the Wellington CBD marked a significant milestone for the institute and a major addition to our portfolio of services to students. This fantastic facility along with our Cuba Street hospitality campus enables us to offer a set of high quality services to international students in particular and really provides a base to attract out of region students to the capital. Campus development was a major area of work. Key decisions were made by the Council on establishing a Regional School of Construction where most trades delivery will be consolidated onto one site. The Minister for Tertiary Education Skills and Employment Steven Joyce launched the School in November with key industry and ITO support. There will be significant pedagogical and student benefits as a result of students coming together to learn and apply skills on site in one location. The decision by Council to redevelop N Block as a hub for engineering technology training will directly contribute to the institute’s position as a valued School of Engineering in New Zealand.
Seismic strengthening combined with a renovation of the Student Hub areas were undertaken in 2013. This resulted in enhanced social spaces for students and has contributed to the vibrancy of the Petone campus. The Church Street campus underwent strengthening work to address potential performance inadequacies of the design of the stairwells. Other campus improvements were made in combination with strengthening work. This included new technology services resulting in tutors and students being connected through better communication tools specifically linked to a wireless classroom environment. A new multi-media suite allows web enabled teaching beyond the constraints of a physical campus which fits well with the national focus of a number of the institute’s programmes. The classification by the Hutt City Council of an education precinct surrounding the Petone campus meant that significant barriers to redevelopment have been ameliorated. This has enabled the institute to progress an integrated capital programme of works which was signed off by the Council in October. Students continued to do well in their studies with course completions at 81% which was consistent with 2012. The overall student target of achieving 4,200 Equivalent Fulltime students was exceeded with Industry Training Organisation and full fee paying student numbers surpassing targets. International EFTS continued to grow with 370 EFTS achieved in 2013. Overall achievement was 4218 EFTS.
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We experienced a 6% reduction in domestic government funding EFTS, a trend experienced by ITPs around the country. In 2013 our allocation of Level 1 and 2 EFTS was 120 less than the year before. Delivering to the youth market was a major focus with 206 EFTS delivered by the Wellington Trades Academy and Youth Guarantee programmes. The Tertiary Education Commission confirmed the institute’s “low risk” rating for 2013. A Parent operating surplus of almost $400k was achieved. This return although conservative at 0.7% partly reflects the type of delivery provided by the institute. The institute delivers engineering and trades programmes that are reflective of a workplace or building site. Equipment required in workshops is expensive and needs to be refreshed to keep pace with changes in industry. The capital intensive nature of this delivery means that costs are relatively high compared with other delivery. Cash holdings were strong throughout 2013 with $12M available at year end. The Council was pleased with this result as reserves are required for future campus development. The WelTec Group reported a net loss of $1.4M after revaluation. This was due to the one-off results of some of our subsidiaries not performing to the level anticipated. After a thorough review the trading activities of one entity were amalgamated within the institute resulting in the winding up of that company. As a result our R&D services will be more closely aligned with academic delivery which we are confident will see more focused and comprehensive support to business. The achievements of the Students First partnership are narrated elsewhere in this Annual Report. I would specially mention the Combined Academic Board chaired by Dr Peter Coolbear which focused on putting in place the building blocks for shared academic delivery and increased access to tertiary education for students across the region. This included approval by the Council in December of a shared Quality Management System with strategic partner Whitireia. Named Taikura it embodies the goals of our academic process - The heart of the tree, this being symbolic of a strong heart, enabling a tall, strong tree with good fruit; good, strong policies leading to successful students. The QMS includes a Commitment to Learning framework whereby our students have the opportunity to develop graduate attributes in preparation for employment, further study and participation in society. The biggest test of the relevance of what we do is uptake by employers of our graduates. As Council Chair this is one of the measures I look to as an indication of how well we are performing. In 2013 79% of students got jobs or went onto further study soon after graduation. This partly reflects a post training focus on brokering students into work, a service which is seeing strong demand by a variety of employers locally and nationally, and an improving local economy towards the end of 2013.
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Surveyed for their level of satisfaction, 88.6% of employers said our students and graduates demonstrated the skills needed by the firm. 93% affirmed WelTec students showed the capacity to acquire new skills readily on the job. The achievement by our students of so many industry awards and accolades is another measure I look to in assessing our relevance. Our students and staff were judged by their peers in New Zealand and overseas in competitions, at symposiums, exhibitions, functions and shows including Toque D’Or, Wellington Fashion Week, and the World of Wearable Art Awards. The recognition of one of our graduates – Anthony Muir (see feature article) by the Institute of Professional Engineers Award was a standout achievement for Anthony and our School of Engineering. Council committees performed well and met regularly. The Risk and Audit Committee, and the Campus Development Committee maintained oversight of key work items and projects including risk reporting, statutory compliance, health and safety, seismic strengthening, and the building programme. I would like to acknowledge my fellow Councillors particularly the work of departing Councillors Aka Arthur, Gregory Fortuin, Dennis Sharman and Suzanne Snively – all of whom have made significant contributions to the Council over many years. The Chief Executive Dr Linda Sissons has navigated the institution through a challenging year. Linda’s strong commitment to a successful academic institution which is relevant to the requirements of industry and the region is appreciated by the Council. Linda’s perspective is informed by her work with our strategic partner, but also with her role as a member of the Metro Group of Institutes of Technology and Polytechnics nationally and internationally on the Commonwealth of Learning. We are very pleased to have Linda at the helm. Please take the time to read through the highlights of 2013. I am pleased to present you with the 2013 Annual Report for the Wellington Institute of Technology.
No reira, tena koutou, tena koutou, tena koutou katoa.
Roger Sowry ONZM Council Chair
Student Hub – Petone Campus 2013 ANNUAL REPORT
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Chief Executive’s Report Vision for the Wellington Region We have a clear vision for the Wellington Region we serve. Our close relationships with businesses and industry, both through our muchvalued advisory groups and staff networks, mean we know well what skills will have the greatest impact on the local, and wider, economy. The key areas of demand, now and in the near future, are in construction; engineering; community support, particularly aged care; and hospitality and tourism. Our efforts this year focussed on these areas. With one of the larger engineering schools in the country and major infrastructure development on the horizon for this region we’ve worked to deliver engineering graduates at higher levels. Over 2012 and in 2013 we’ve invested in attracting people to our engineering programmes and to lifting the level of competency in the core skills of mathematics, physics, algebra, calculus and physics so they can go on to either the New Zealand Diploma of Engineering or Bachelor of Engineering Technology. We now have two new Certificates in Foundation Studies (level 3 and 4). These are challenging and exciting times for the construction industry, which is expected to grow strongly over the next five years. The Christchurch rebuild, earthquake strengthening, the demand for housing on the Kapiti Coast and in Auckland and the remedial work on leaky homes have all indicated a significant boost in construction activity in New Zealand. The future looks strong and that’s good news for industry, for New Zealand’s economy and for young people looking for careers in this industry. But it also highlights the issue of skills shortages and how we address these as we come out of a period where there has been a work shortage in the construction industry. Our School of Construction has almost 1,860 students including fulltime and part-time students and industry cadets who study with us while working. Our new Jobs Broker is helping match these graduates into a waiting industry, with great success. Some of these graduates are going to Canterbury, thanks to the relationships we’ve established with South Island companies, others are backfilling jobs at home when others have gone south.
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WELLINGTON INSTITUTE OF TECHNOLOGY
The food, beverage, culinary, tourism and event industries are critical to the Wellington Region. Our School of Hospitality - the NZ Centre for Culinary and Hospitality Excellence - based at our new state-of-the-art campus alongside Le Cordon Bleu NZ in Wellington’s CBD trained 655 WelTec students. More than 130 students have studied with LCBNZ in its first year of operation. Both schools are closely advised by local industry’s leaders. We introduced a new Bachelor in Applied Management, as part of a consortium of ITPs across New Zealand, to meet the needs of employers for graduates with a mix of theory, practice and professional skills. It gives graduates a fast track into business management. Students can major in accounting; human resource management; sales and marketing; event management and strategic management.
Maori names for schools We were greatly honoured to be gifted names in Te Reo for all our schools by Te Runanganui o Taranaki Whanui. The names were presented at Waiwhetu Marae in December.
School of Construction Ngā whare tapu o Tane-mata-rau-kiri School of Health and Social Services Te Hau Tapu me te Puna Oranga School of Foundation Studies Ngā Pakiaka o te Pūkaha
High Quality Teaching and Learning Delivery We exceeded targets on all headline EPIs. In Literacy and Numeracy gains (defined as the proportion of EFTS assessed as requiring additional literacy and numeracy who are enrolled in Level 1-3 provision and make literacy and numeracy progress as measured by the Literacy and Numeracy for Adults Assessment Tool) we exceeded our target of 60% by achieving 65%. Our first entry into the PBRF delivered $149,327 against a hoped for $200,000 (70%). Student satisfaction results continued the upward trend of the past four years.
International We continue to extend our reach internationally, attracting a large share of international students to study at WelTec. Despite a national three percent decline in international student numbers at the start of 2013 we were pleased to have increased our count of international student enrolment by 9 percent over 2012 numbers. In 2013, WelTec’s International students achieved 88% course completion (vs 81% SAC students) and a stunning 90% qualification completion rate, against 69% for SAC students.
School of Hospitality Te Kūmete nui o te Manaakitanga School of Business and Information Technology Te Kete Hangarau o te Pākihi me te Aronui School of Creative Industries Te Ranga Ahumahi o ngā Hāpori School of Engineering Technology Te Kāhui Pūkenga o ngā Pūkaha 2013 ANNUAL REPORT
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Enhancing the Smoothness and Efficiency of the Student Experience
Programme and Enrolment Highlights
The overall Enrolment Process improved substantially through process design and rationalisation and ensuring the right information is obtained as soon as possible in the enrolment engagement.
• Foundation Studies Level 3/Foundation Studies Level 4 for maths and science requirements to progress into Diploma/ Degree Engineering programmes.
An Online Enrolment solution was implemented.
• Foundation Studies – Plastering Level 3
A new Education Technology team got underway. Achievements included completing the implementation of Moodle, opening a new multimedia suite at Petone, implementing plagiarism detection software, remote testing of the IELTS levels of International students, and developing the Addictions programmes as online in order to liberate WelTec from the expensive campus mode in Christchurch and to assist with the economics possible in Auckland delivery.
• Certificate in Welding Level 3
Workplace, clinical and industry experience ensured more relevant and economical delivery to students. Employers with whom agreements were in place included: Fronde, NEC, IntuiSec, Intergen, Datacom, Certified Builders Association members, Bluestone Recruitment, Viking Cruise Lines and a major hotel chain in Asia.
• SAC Level 1 &2 delivery exceeded original Investment Plan funding, with an in-plan amendment being authorised by the TEC to fund the higher level of demand at this foundation level.
ITO relationships were very strong and we achieved 459 EFTS against a target of 327, 140% of goal and 6% ahead of 2012 achievement.
A number of additional programmes were developed and delivered within the year to align to industry demand and TES priorities: • Bachelor of Applied Management
• Certificate in Electrical Engineering Level 3 Highlights within the different funding pools for 2013 include: • Youth Guarantee met a revised target of 116 EFTS.
• SAC Level 3 and above excluding Priority funded targets reached the required 99% threshold. • Priority Trades exceeded the 2011 EFTS baseline. These EFTS were claimed as part of the SAC level 3 EFTS with no additional Priority funding claimed. • Priority Engineering EFTS achieved growth of 20 EFTS over the 2012 actual result. Our goal to increase the ratio of Level 4 and above EFTS to Level 1-3 was not achieved owing to strong pressure to take more Youth Guarantee and young students. Our Level 1-3 target was overachieved by 10%; correspondingly our Level 4 and above target was underachieved by 11%.
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WELLINGTON INSTITUTE OF TECHNOLOGY
Linda Sissons and Roger Sowry attending Mid-Year Graduation 2013 ANNUAL REPORT
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Student Hub – Petone Campus
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WELLINGTON INSTITUTE OF TECHNOLOGY
Rolling out The Choice Protocol The Choice Protocol Brand
Campus Development
Brand launches were held for all staff and for managers, and video was posted on line for all.
The Integrated Campus Development Strategy was endorsed. The 10-year Implementation and Capital Funding Plan was approved by Council. Phase 1 was agreed and incorporated into the capital budget for 2014. The Petone campus refocusing was carried out, assisted by the successful application to have the Buick Street campus precinct approved as a tertiary education precinct by the Hutt City Council.
Prospective students were engaged by way of Choice Protocol pages in the 2014 Prospectus. Feedback resulted in a decision to make full use of social media and web presence in order to engage student interest and input as we progress towards conceptualising the 2015 Prospectus. Planning was well advanced by the end of the year to fully exploit the branding in order to showcase the collaborative delivery possibilities for industry involved and hence to potential students. The use of the branding also for the proposed project to attract schoolleaver students to take up tertiary study at WelTec/Whitireia in 2015, was also well advanced in planning by the end of the year. State agencies were familiarised with the brand and its potential via presentations to the Board of the Tertiary Education Commission, the Chair and Chief Executive Officer of the Tertiary Education Commission, and the Secretary for Education, as well as through our participation in the TEC’s Governance Evaluation research exercise which commenced early 2014. Teaching on each other’s campuses also greatly demonstrated the potential of the Choice Protocol (in the form of Whitireia’s Foundation Health being launched at Petone and WelTec’s Community Care being launched at Kāpiti).
Shared Services Business Unit
A Common Academic Policy and Regulatory Environment This was completed through the Taikura Quality Management System document shared between the two institutions. The Academic Statute was approved by the Academic Board.
Working with Business Engaging employers on the Students First partnership and the Choice Protocol was a key priority. Examples of opportunities where the two institutes worked closely together include: • Maori and Pasifika Trades Training Initiatives; • the McKays to Pekapeka consortium; • the Science Parks initiative; • the WellCan seminar hosted by Wellington City Council plus a range of followup sessions where representatives of CERA and the Canterbury Employment Hub visited the Wellington region to recruit;
In the first year of operation, W2 delivered $737,000 of actual savings in relation to business as usual activities. In addition to this, there was $80,000 of added value savings.
• MSD’s strategies for job creation;
International Collaboration
• business receptions, including two Business After 5s in Wellington City and one at Kapiti;
In the International arena a strategy paper for Wellington was developed and the WelTec and Whitireia Chief Excutives led discussions with the universities, Grow Wellington, and EducationNZ to build a coalition of support for a joint strategy to make Wellington a destination of choice. Both institutions were named as “trusted providers” by Immigration New Zealand; and both are working together as pilot institutions in the new visa processing pilot.
Joint Centres of Excellence
• the response to the Samoan Cyclone rebuild initiative;
• Government-led launches including those of the Vocational Pathways in Wellington, and of the MBIE Construction Sector report at Petone. These activities have resulted in an awareness by a range of employers and industry representatives as to the relevance of the Students First and Choice Protocol initiatives for their businesses.
Conceptual operating models were completed for the Joint Centres of Excellence in respectively, the Creative and Performing Arts and Technologies; and Health and Social Services. 2013 ANNUAL REPORT
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WELLINGTON INSTITUTE OF TECHNOLOGY
It has been another year of change and success at WelTec. Our success is also success for all our stakeholders. I thank my Executive Management team and all my WelTec colleagues for their focus and commitment during an exciting year. The outcomes we’ve achieved belong to them and those who’ve supported us through 2013. I look forward to another great year in 2014.
Dr Linda Sissons Chief Executive, Wellington Institute of Technology
2013 ANNUAL REPORT
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Today Tomorrow Work is changing, education is changing … We are changing … Choices are now essential for students, we get that!
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WELLINGTON INSTITUTE OF TECHNOLOGY
The Choice Protocol is WelTec and Whitireia working together to give students education choices that matter. Our goal for tomorrow is more education choices for students. This means: >> More ways to get information >> More information to help students choose the best programmes or mix of programmes >> Access to a wider range of programmes >> Different ways to study >> More campuses to study at >> More options for further study >> More connections with employers
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Council Members Hon Roger Sowry ONZM
Vaughan Renner
COUNCIL CHAIR
DEPUTY CHAIR
Roger Sowry was a Member of Parliament from 1990 to 2005, firstly representing the Kāpiti electorate, then as a National list MP. Roger retired from Parliament in 2005 moving to become Chief Executive of Arthritis New Zealand, a position he held until 2008. He is a member of the Electricity Authority and a member of the Institute of Directors.
Vaughan has an MBA, and science and engineering qualifications. He is self-employed and has strong commercial, strategic planning and IT skills. Vaughan has a background in governance (currently including Westlake Governance Limited, Business Central, Business NZ, and Standards New Zealand). He is a member of the Institute of Directors. He was appointed as Deputy Chair of the Open Polytechnic of New Zealand in 2014.
Aka Arthur Aka Arthur, Ngāti Toa, has been a resident of Porirua for over 60 years. He is a kaumātua for the Royal New Zealand Police College (since 2000), a member of the Conservation Board and of the Ara Tahi (the Māori Regional Representative Group of the Wellington Regional Council). He is on the Kaiwhaka Manua for the Department of Courts.
Nancy McIntosh-Ward Nancy McIntosh-Ward holds an MBA and is a Chartered Accountant and has extensive financial, management, commercial, governance, tertiary education and marketing experience. Nancy is a member of the Institute of Directors.
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WELLINGTON INSTITUTE OF TECHNOLOGY
Gregory Fortuin
Dennis Sharman
Peter Steel
Gregory Fortuin is a company Director. He is a former Families Commissioner and Race Relations Conciliator.
Dennis Sharman owns and operates Sharman Consulting Limited a consultancy company that delivers comprehensive technology services to small and medium sized businesses. Dennis has just completed his term as Chair of the Board of New Zealand Institute of Technologies. Dennis holds a number of Directorships, including government appointments to the Combined Council of Whitireia and WelTec and is also a founding member of the Board of Mana Tiaki.
Peter Steel has an economic and engineering background having worked for over 30 years as a Consulting Engineer, as well as five years as a senior Engineering General Manager at KiwiRail. He has strong commercial, governance and management experience from his work activities as well as a period as President of the Wellington Regional Chamber of Commerce. Peter is currently Managing Director, New Zealand for SMEC New Zealand Limited, part of the international SMEC consultancy group.
Suzanne Snively ONZM
Ron Wilkinson
Suzanne Snively, a former partner at PricewaterhouseCoopers in Wellington, is the Managing Director of strategic and economic advice company, MoreMedia Enterprises. Suzanne is appointed to the Health Research Council by the Minister of Health Hon Tony Ryall and Chairs the Agri-women Development Trust and Transparency International. She has been the Chief Judge of the Electra Business Awards. Previous directorships include the Reserve Bank of New Zealand. She is a member of the Institute of Directors and the New Zealand Association of Economists. Suzanne was awarded Fulbright and Reserve Bank scholarships and was honoured by the Queen along with 100 women, with a Women’s Suffrage medal. She is a Member of the New Zealand Order of Merit.
Ron Wilkinson is the owner of Management Answers, consultants in media and marketing. He has a background in radio and has been active in business and community activities in Kāpiti for almost 20 years. In 2008 he was presented with a Civic Award by the Kāpiti Coast District Council and in 1990 he was awarded a medal for services to broadcasting by the Queen, in recognition of his previous work with Radio New Zealand. He is a former New Zealand radio broadcaster of the year. A former board member, fellow and graduate of the New Zealand College of Management, he has designed and led workshops on many topics including management, media, adult education and e-Learning and worked extensively in Vietnam, Malaysia, the United States of America, Australia and various countries in the South Pacific.
He previously served as a Director of New Zealand Post, Kiwibank, ACC (Investment Committee Chair), Catalyst Injury Management (Chair) and Industry New Zealand. Gregory came to New Zealand in 1991 as the Managing Director of National Mutual Corporate Super Services Limited. He was also a Crown-Trustee and the meeting Chair of the Crown Forest Rental Trust. He was the Founding Chairman of the Youth Suicide Awareness Trust and served on the Boards of Prison Fellowship New Zealand and Youth for Christ.
Dr Kabini Sanga Dr Kabini Sanga is an Associate Professor of Education in the Faculty of Education at Victoria University of Wellington. He holds a Doctor of Philosophy from the University of Sasketchewan, Canada. He did his early university education at the University of South Pacific, Fiji. He has held a number of senior roles in education, including Director of the Institute of Education of the University of the South Pacific, the Director and Chief Executive Officer of the Solomon Islands College of Education, and the Chief Education Officer, Solomon Islands Ministry of Education.
COMBINED COUNCIL (L-R back) Dennis Sharman, Dr Kabini Sanga, Aka Arthur (L-R middle) Ron Wilkinson, Nancy McIntosh-Ward, Gregory Fortuin (L-R front) Don Campbell, Hon Roger Sowry ONZM (Chair), Dr Linda Sissons, Vaughan Renner (Deputy Chair) (L-R inset) Suzanne Snively ONZM, Peter Steel 2013 ANNUAL REPORT
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Executive Management Team
Linda Sissons, CNZM
Tim Allen
Mark Broadbent
Alan Cadwallader
CHIEF EXECUTIVE
GENERAL MANAGER, BUSINESS DEVELOPMENT (TO OCTOBER 2013)
HUMAN RESOURCES DIRECTOR
ACADEMIC DIRECTOR
Ph. D. (London)
BA (Victoria University)
BA (Victoria University)
MMgt (Massey University)
Diploma in Adult Education (Edinburgh)
Graduate Diploma in Marketing (Victoria University)
Diploma of Education (Guidance)
MBA (Otago University)
MA (1st class Honours) Advanced Management Programme (Harvard)
Linda has been responsible for the strategic management and leadership of WelTec since 1999. Prior to joining WelTec she held university and Institute of technology management roles in New Zealand and the United Kingdom. She represents the New Zealand Government on the Board of Governors of the Commonwealth of Learning, is on the Board of WorldSkills NZ, and is a Director of ESITO (Electricity Supply Industry Training Organisation). She has been a member of a number of Government commissions, including the Tertiary Education Advisory Commission.
Tim led the development of new opportunities and the promotion of WelTec to meet its objectives. His areas of responsibility were marketing, international and WelTec Connect. Tim led the growth of WelTec’s international student numbers and the creation of more student work placements. Tim has extensive commercial, marketing and international experience, gained through senior roles in a diverse range of industries including education, shipping, sports and horticulture.
Linda holds a PhD from London University, is a graduate of the Harvard Business School Advanced Management Programme and is a member of the Institute of Directors.
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Diploma (Youth and Development), (Commonwealth Youth Programme, Asia-Pacific) Centre Ernst & Young Executive programme
Mark is responsible for WelTec’s human resources strategy and change management as well as human resources operations and capability development. With more than 25 years’ experience in human resources, line management, and development roles Mark has worked in a wide range of organisations covering the not-for-profit sector, government, state-owned enterprises, and education. Mark is a member of the Human Resources Institute of New Zealand.
As Academic Director Alan is responsible for academic leadership at WelTec. His role is leading and managing academic policy development, including learning access, student support services and resources to ensure high-quality student learning experience outcomes. His role also includes leading the institute’s research activities. A career in the vocational tertiary sector of more than 12 years is complemented by earlier pursuits in commerce and business. Alan has experience as a lecturer in business studies as well as head of school. His background in education for business management and his interest in New Zealand’s small business sector fit well with WelTec’s applied research and technology transfer contribution to business and industry.
James Smith
Peter Cowper
Michael Hesp
Julia Hennessy
CHIEF FINANCIAL OFFICER
CHIEF OPERATING OFFICER
DIRECTOR, SPECIAL PROJECTS (TO JANUARY 2014)
EXECUTIVE DEAN, THE FACULTY
The COO role involves managing the Academic Records and Administration, Information Technology Services and Support, Student Experience, Facilities, Procurement, Business Administration, Business Intelligence and change management business areas. As well as these infrastructure and capability services, Peter’s responsibilities include business process change initiatives for core student management. Peter also leads the Shared Services Programme for WelTec (as part of the strategic partnership with Whitireia) and Chairs the Shared Service Governance Group.
Master of Applied Finance (Victoria University)
BA (Victoria University)
BCA (Victoria University) CA (New Zealand Institute of Chartered Accountants)
As Chief Financial Officer James is responsible for the strategic financial framework and operational financial management and reporting activities undertaken within WelTec. Prior to becoming the Chief Financial Officer James was Financial Controller at WelTec. Previous to joining WelTec James was the Financial Accountant at The Open Polytechnic of New Zealand, and held a number of roles within Inland Revenue. James is a member of New Zealand Institute of Chartered Accountants.
Peter brings many years’ experience in leadership, managing complex and technical business operations, third-party supplier models and outsourcing, contract management and leading change. Peter’s previous roles include managing Telecom New Zealand’s operational and delivery business areas. He was Head of Science and Engineering at BRANZ and he owns Quorum Group. Peter is a Member of the Maritime New Zealand Authority (the MNZ Board), is a founding trustee of the Porirua Digital Trust and member of the New Zealand Institute of Directors.
CA (New Zealand Institute of Chartered Accountants)
DipN (Wellington Polytechnic) MEd (Victoria University) MMgt (Massey University)
Michael was previously WelTec’s General Manager Corporate and Finance. The role of Director, Special Projects provides advice on specific high priority strategy developments; manage investment and capital projects; and develop WelTec’s long-term campus plan. Previous experience for Michael includes a number of roles for Fletcher Construction; being a member of the team that privatised Works Property Services to become Serco Group NZ, then holding the roles of Corporate Services Director and Finance Director for Serco; Chief Financial Officer and Board Secretary for the New Zealand Wool Board; a number of consulting and contracting roles for organisations including the Department of Labour, Healthcare Otago, Wellington City Council, and the Correspondence School. Michael is a member New Zealand Institute of Chartered Accountants.
PG Dip HSM (Massey University)
Julia has the overall responsibility for the management of the Faculty which is comprised of seven Schools and the Academic Manager’s Unit. Prior to becoming the Executive Dean of the Faculty, Julia was previously Executive Dean of the Faculty for Health, Business and Service Industries. Previous experience for Julia includes General Manager, Mental Health and Addiction Service for Hutt Valley DHB and Senior Advisor at the Ministry of Health. She worked in the tertiary education sector before being appointed Relationship Manager for the Central Regional Health Authority. She also taught on health related programmes in the tertiary sector. She is a Fellow of the College of Nurses Aotearoa (NZ) and was a member of Nursing Council of New Zealand from 2008-2011. 2013 ANNUAL REPORT
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Industry Advisory Committees INDUSTRY ADVISORY COMMITTEE CHAIRS
AUTOMOTIVE TECHNOLOGY
Tim Harding – Alcohol and Drug
Ross Wallace (Chairperson) – National Training Manager, CablePrice NZ Ltd
Ross Wallace – Automotive Technology
James Allen – ITA, NZ MITO
Peter Degerholm – Built Environment
Steven Beattie – Student Representative
Brian Cowper – Business
Dave Billmore – Trade Training , NZ Army Trade Training School
David Waters – Counselling and Trauma Studies
Neil Butterfield – Workshop Owner, Porirua Autocrash Repairs
Jaimee Warda – Creative Technologies
James Craig – Trade Training Manager, NZ Army Trade Training School
Michael Kerr – Engineering Mike Ryan – Exercise Science Prof. Mike Markfell-Jones – Funeral Services Maurice Priestly – Health, Disability and Aged Care Support and CVLS Advisory Committee
Steve Gaskin – Workshop Owner, Rolrich Panel & Spray 1988 Ltd Hus Kala – Cheif Executive, Hutt City Auto Electrical Dean McMillan – Workshop Owner, D E McMillan Ltd Alex Morris – Student Representative
Ruth Pretty – Hospitality
George Robinson – Workshop Owner, Otbury Refinish Solutions
Peter Ramsey – Information Technology
Phil Stoebener – Workshop Owner, Advance Auto Electrical
Linda Sissons – Pasifika
Owen Woodman – Workshop Owner, Woodman Automotive
Ross Sinclaire – Wellington Trades Academy John Harrington – Youth Development
BUILT ENVIRONMENT Peter Degerholm (Chairperson) – Director, Calderglen Paul Bunkall – Director, Rawlinsons
ALCOHOL AND DRUG
Russell Burley – Commercial Manager, Naylor Love Barry Calvert – Senior Cost Manager, Beca
Major Stephen Scott (Chairperson) – Director, Wellington Bridge Programme
Kevin Collins– Director, Design Network Architecture Ltd
Nicholas Arnott-Steel – Addictions Student, Wellington Institute of Technology
Tony O’Connell – Managing Director, NME
Vanessa Christie– Addictions Professional Leader, Community Mental Health & Addiction Service, Hutt Valley DHB Mary Anne Cooke – Director, ABACUS, Counselling, Training & Supervision Ltd Maynard Gilgen – Clinical Director, Ora Toa Mauoriora Kathryn Leafe – Chief Executive, CareNZ Ian MacEwan – Executive Director, DAPAANZ Christine McCarrison – Addictions Professional Leader, Community Mental Health & Addictions Service, Hutt Valley DHB Anna Nelson – Programme Manager, Matua Raki, National Addiction Workforce Development Rhonda Robertson – Consumer Advisor, The Salvation Army, Addiction and Supported Accommodation Services Murray Trenberth – CEO, WellTrust
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Dan McGuinness – Director, McGuinness Building Contractors
Stewart Peck – Project Manager, Naylor Love Tony Sutherland – Director, Rider Levett Bucknall
BUSINESS Brian Cowper (Chairperson) – Group Manager, Communications & HR, Corporate Services, Ministry of Health Leo Austin – Owner, Austin Associates Limited Kanwardeep (Kanwar) Bedi – Independent Business Man, NZIBN Limited Anthony Bowe – Business Banking Manager, ANZ Bank Bill Davies – Schools’ Accountant, Terrance Bartlett Chartered Accountants Anne Hare – Financial Sector , Craigs Investment Partners
EXERCISE SCIENCE Warwick McCormack – Business Advisor, The Business Centre Otila Osborne – Recruiter, Positive Staff Teri Puketapu – Iwi Representative, Te Runanganui o Taranaki whanui ki Te Upoko o Te Ika a Maui incorporated
COUNSELLING AND TRAUMA STUDIES David Waters (Chairperson) – Chief Executive, Ambulance New Zealand Bice Awan – Chief Executive, Skylight
Mark O’Conner (Chairperson) – General Manager Operations, Swim NZ Kale Coromandel – Student – Certificate in Exercise Science, WelTec Jason Hemson – General Manager, Wellington Rugby League Nathan Martin – Personal Training Manager, Les Mills Hutt City Mike Mercer – Sports Manager, Hutt City Council Gareth Smith – Injury Prevention and Management Consultant, ACC, Insurance and Prevention Services Tracey Thornton – Exercise Trainer, Inside out Fitness
Mari Cribb – Guidance Counsellor, Upper Hutt College Lisa Cutfield – Counselling Student, WelTec Linda Knowsley – Senior Counsellor, Catholic Social Services
FUNERAL SERVICES
Judy McCormack– Counsellor/Supervisor, The Counselling Group
Prof. Mike Marfell-Jones (Chairperson) – Chairperson FSTT and Educational Representative, Funeral Services Training Trust (FSTT)
Luana Murray – Senior Advisor, Relationships Aotearoa
John Duncan – FDANZ Representative, Kapiti Coast Funeral Home
Maeve Neilson – Workforce Development Manager , National Office Victim Support
Alistair Ferguson – NZEA Representative, Marsden House Funeral Directors
Jane O’Neil – Clinical Leader, Relationships Aotearoa
Fiona Gillespie – FSTT Secretary, Funeral Service Training Trust of NZ
Serena Stace – Skylight Counselling Team Leader, Skylight
Danny Langstraat – FDANZ Representative, Harbour City Funeral Home
CREATIVE TECHNOLOGIES Jaimee Warda (Chairperson) – BCT Graduate Consultant, Joug Design Krystal Dawson – Current BCT Yr 3 Student, WelTec Christine Doherty-McGregor – Curator, Expressions Art and Entertainment Centre
Anne McGuire – Educational and Maori Representative, Self Employed John Peryer – Executive Officer and Representative of Non FDANZ Members, Tong and Peryer Limited John Schipper – Deputy Chairperson, FSTT NZEA Representative, Davis Funeral Services Limited
Steve LaHood – Director, Story Inc. Neville Parker – Designer, Designers Institute of NZ
ENGINEERING Michael Kerr (Chairperson) – Regional Manager - Wellington, BECA Rod Badcock (Dr) – Senior Research Engineer, Industrial Research Limited Bill Cardus – NZ Bitumen Operations Manager, Fulton Hogan Ltd Peter Davenport (Dr) – Engineer, Eastern Consulting Ltd John Futter – Support Specialist Nantechnology National Isotope Centre, Institute of Geological and Nuclear Sciences Rafter Laboratory Theo Klok – Locomotive Performance Engineer, Kiwirail Simon Marquis – Operations Director, Alcatel-Lucent NZ Ltd William McDougall – Wing Warrant Officer, NZDF David Parle – Engineering Manager, Windsor Engineering Group Ltd Don Willis – Associate Director Transmission & Distribution, AECOM
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HEALTH, DISABILITY AND AGED CARE SUPPORT AND CVLS Maurice Priestley (Chairperson) – Population Health Advisor, Service Integration and Development Unit (SIDU)
Georgina Nicholas – HR Manager, InterContinental Wellington Kaye Paardekooper – Conference Organiser, Paardekooper and Associates Natalie Randall – Teacher, Wellington High School
Nicola Adams – Educator, Te Korowai Whariki, ID Services
Sara Tucker – Chief Executive, Hospitality New Zealand
Linda Fisher – Operations Manager, Emerge Supported Employment Trust
Eddie Wairau – Chief Executive Officer, Petone Working Men’s Club
Jo Mason – General Manager, Community Connections: Te Hapori Awhina Tangata Sue Roberts – Training Product Manager, Careerforce
INFORMATION TECHNOLOGY
Tristine Tilly – Elder Abuse and Neglect Prevention Coordinator, Age Concern, Kapiti
Jonathan Fry (Chairperson) – Delivery Manager, Fronde Systems Group Ltd Kevin Groves – Project Manager, GreenButton Limited
HOSPITALITY Ruth Pretty (Chairperson) – Managing Director, Ruth Pretty Catering Mark Angus – Owner/Proprietor , ON-TO-IT Trading Limited Liam Craughwell – General Manager, Amora Hotel Wellington Glenn Curphey – Executive Chef, Brentwood Hotel Anthony Dey – General Manager, Brentwood Hotel
Donald Dr Koh – Bachelor of Information Technology Monitor Sergius Kramar – Test Analyst, Department of Conservation Alisdair McKenzie – Principal Consultant, IS Assurance Services Peter Ramsey – Contractor, Self-employed Brian Rowe – Director, Examine Consulting Group Elozor Dr Shneider – Information Systems / Technology, The Open Polytechnic of NZ Limited
Francois Febvré – Proprietor, La Cloche Glenn Fulcher – Regional Manager, Pacific, City & Guilds Lesley Immink – Chief Executive, Tourism Export Council Tracey Lines – Modern Apprenticeship Coordinator, Restaurant Association of New Zealand Bernd Lippman – Executive Chef, Museum of New Zealand Te Papa Tongarewa
PASIFIKA Linda Sissons (Chairperson) – WelTec Ane Hunkin – Niuean Community Vei Lotaki – Tongan Community Filipo Lui – Tokelauan Community Aiono Mino Cleverley – Samoan Community
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PLUMBING
YOUTH DEVELOPMENT
Malcolm Andrews – Manager, Duncan McGregor Ltd
John Harrington (Chairperson) – Coordinator, Canterbury Youth Workers Collective
Linda Baxter – Masterlink Coordinator, Masterlink Steve Hanrahan – Manager, Masterlink Graeme Hawkins – Owner, Hawkins Plumbing Rod Miller – Managing Director, Water-Mart Wairarapa Ltd Bruce Morgan – Team Leader, Specialist Trades. Lower North Island, The Skills Organisation Derek Plimmer – Owner, Plimmer Plumbing Ltd
Dave Green – National Youth Services Manager, YMCA Bill Peace – Social Services Manager, STRIVE Community Trust Andy Pilbrow – Self-employed contractor Sue Roberts – Training Product Manager, Careerforce Kirsten Smith – Manager, Evolve Youth Service
Ross Tait – Plumber & Gasfitter , Plumbing Connections Ltd Colleen Upton – General Manager, Hutt Gas & Plumbing Systems Ltd Dave Walker – Project Manager, Aquaheat Industries Ltd Stewart Weddel – Owner, Plumber 1
WELLINGTON TRADES ACADEMY Ross Sinclair (Chairperson) – Principal, Hutt Valley High School Kevin Carter – Principal, Rongotai College Sally Haughton – Principal, Wellington East Girls’ College Martin Isberg – Principal, Wainuiomata High School Grant Jones – Principal, Newlands College Kerry Leggett – Youth Development Team Manager, Vibe Lower Hutt Carrie Murdoch – Manager Education, Skills & Trade, Business NZ Sue Roberts – Tutor, Regional Chair, Aotea College, CATE
2014 Plumbing Advisory Committee Front: Derek Plimmer, Steve Hanrahan, Malcolm Andrews, Peter Reilley with Neil McDonald (Head of School Construction) and Martin Kelly (Tutor) 2013 ANNUAL REPORT
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Student Benefits IT Internships
Learning Support
Internships are an excellent way for students and employers to get to know each other. They also help ensure that a student completes their qualification, when, as is often the case in the IT industry, they can be tempted away to help meet a business’s urgent resource needs.
Tutors in our Learning Commons provide academic support to our students by helping with language, literacy and numeracy and education planning. The Learning Commons team works with students to assess their needs and ensure they get the support they require to succeed. They also work with teaching staff to embed learning support into the teaching environment and improve staff skills at supporting students with foundation skills. The team puts in place special strategies for students with disabilities and those at risk.
In 2013 we were pleased that our strong industry relationships helped several students into exciting internship opportunities with leading companies. We offer support and flexibility so that student project work can become part of their study programme. The internships are also delivering benefits for businesses such as Fronde, FX Networks and Dimension Data who can gain access to the best students, try them out and train them to meet their needs.
In 2013 the literacy and numeracy team in the Learning Commons put in place new initiatives, including a model for embedding these foundation skills into Level 1-3 programmes. Students’ literacy and numeracy were measured at both the start and end of their programme. The new approach resulted in an eight percent improvement in numeracy over 2012 improvements and a five percent increase in literacy. There were outstanding results for Pasifika trades students with a 33 percent gain in literacy over 2012 and a 16 percent gain in numeracy.
Mick Jays, Head of School of Business and IT and Jacob Vaughan, Bachelor of Information Technology student and intern with Dimension Data
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“Education is the most powerful weapon which you can use to change the world.” - Nelson Mandela Vex Robotics
Tamaiti Whangai
We hosted ten teams from Wellington and Manawatu secondary schools in a competition of engineering design skills. Students designed and built robots to compete in the annual international VEX Robotics competition, honing their skills in the process.
Staff from both WelTec and Te Runanganui o Taranaki Whanui, Waiwhetu Marae help support the success of our Maori students through the Tamaiti Whangai programme. Tamaiti Whangai achieves this though mentoring, pastoral care, cultural support and sometimes academic support. Mentors also support our teaching staff to encourage Maori students to do well.
The competition’s aim is to expose young people to technology and encourage an interest in design that could turn into a career in engineering.
Tamaiti Whangai has had positive independent review and external evaluations over the last five years.
Susan Luke(Tamaiti Whangai Mentor) - Iwi - Te Atiawa & Ngati Maniapoto with Kerry Tautau - Iwi - Ngati Porou,Nakita Herewini Iwi - Whakatohea & Ngai Tama
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SPCA provides real world experience for students WelTec has a Memorandum of Understanding with the Wellington SPCA to provide practical experience for our animal care students. “Not only are the students gaining hands-on experience with the animals, but the Wellington SPCA is able to boost its volunteer helpers to assist with the day to day needs of the centre. It’s a win-win situation, and we are incredibly grateful to WelTec for allowing us to put their students to work in the community,” Wellington SPCA Chief Executive Iain Torrance Around 30 WelTec animal care students spent 16 hours a fortnight at the SPCA’s site in Newtown during their programme of study in 2013. In 2014 the SPCA moved into its new premises at Wellington’s ‘Fever Hospital’. WelTec students went with them. The relationship with the SPCA provides the students with invaluable experience working in different areas of animal care. Students apply this experience direct to their studies. Now that the SPCA has extended its facilities, working with education providers has become a key strategy for the SPCA. WelTec is pleased to be part of that working relationship. Our students have experienced the settling in process and have been able to be part of the whole development. Going forward WelTec will be further integrating it’s teaching with the SPCA as we continue to make our teaching very industry relevant. This is a unique opportunity to be part of this evolution with the SPCA.
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The students are observed by SPCA staff and WelTec tutors who not only assess the students in class but at the SPCA offices.
Pictured above is Tiaho Needham-Manuel and Sarah Capper-Liddle. 2013 ANNUAL REPORT
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Creative Technologies student success Creative Technologies students had many chances to show off their work in 2013, to wide acclaim. The “CINQ Toi Rima” (5 artists) exhibition of Bachelor of Creative Technologies graduate work in July was held at the New Zealand Academy of Fine Arts. Diversity was the theme of the exhibition of the five exhibiting graduates whose work included photography, illustration, graphic design and moving image. The end of year exhibitition marked the career start for 30 graduates. The exhibition called ‘WE ARE’, featured a number of different mediums, from photographs to short films to interactive websites from students of WelTec’s Bachelor of Creative Technologies. Students were also successful in regional and national competitions where they have been recognised for their technical skills as well as their creativity. Maddie Morrison won the Ronald Woolf Youth award for her photography with another piece winning the runner up award. Kumiko Matsumoto won the METLINK bus design competition. Her illustrations appeared on buses across Wellington. Others are finding an eager market for their work, with international sales and work opportunities including Weta, the NZ Film Archives. Kimberley Gumabay sold large scale work to buyers in the UK.
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Kimberley Gumabay - Bachelor of Creative Technolgy Graduate 2013 ANNUAL REPORT
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Wins all round Bachelor of Engineering Technology graduate Anthony Muir has gained much more from his study than a valuable qualification. His final year project has been recognised with the Institute of Professional Engineers Ray Meyer medal for Excellence in Student Design. This is the second year in a row that a WelTec graduate has won the medal. Anthony’s project was a simple new system that manages the peak flows from extreme rain events. Testing has proven the system delivers better environmental performance with considerable cost savings. The system could have international as well as local applications. When used in new residential developments the savings can be up to $500,000 for the developer with lower ongoing infrastructure costs for ratepayers as it needs almost no maintenance. As a carpenter in his family’s construction company, Anthony discovered education over 10 years ago when the industry first indicated a need for tradespeople to do continuing professional development. He started with WelTec’s National Diploma in Architectural Technology. He enjoyed the experience and went on to get a New Zealand Diploma in Engineering. This was followed by a research paper at Victoria University. He was asked to present this paper at the Australia and New Zealand Architectural Science 43rd annual conference in Tasmania. The man who started out his career as builder’s labourer has also been published, with a research paper in the Architectural Science Review. The research paper on his attenuation system has been prepared with his WelTec supervisor Bob McGrath and will be presented at Water New Zealand’s 2014 stormwater conference. Anthony has achieved all this while continuing to work full time. He is now an architectural engineer for the family business and is teaming up with his father to prepare his patented new system for the market. “I’m a different man to the one I was 10 years ago,” says Anthony. “I’m more confident, I can organise my ideas and communicate them confidently. But what pleases me most about all these new skills is that I can use them to help solve people’s problems. My ongoing learning has also helped me identify the best education opportunities. I can honestly say the professionalism, teaching quality and commitment to students at WelTec’s School of Engineering Technology is absolutely superb.”
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IPENZ medal winner Anthony Muir 2013 ANNUAL REPORT
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Academic Leadership “I never teach my pupils. I only attempt to provide the conditions in which they can learn.” - Albert Einstein Research
Taking WelTec to the world
Research and development at WelTec represents a diverse range of activities making valuable contributions to the institution, student learning, the professions and industry, and the community.
Information Technology teacher Steve McKinlay’s newly awarded PhD brings together information and computer ethics with the philosophy of information.
In 2013, WelTec received the results of our first time participation in the Tertiary Education Commission’s Performance Based Research Fund (PBRF) Quality Evaluation. Evidence portfolios were submitted from staff across the institution, demonstrating the diversity of research that is undertaken. WelTec was placed mid-table among participating ITPs. The institution secured $149,327 in funding attributed to funded Evidence Portfolios and External Research Income. This was a pleasing result and sets the organisation up well for the next round in 2018 and lays the foundation to continue building research capability and capacity.
“I’m interested in the role information plays in the universe, what the nature of information is and the ethics of new technology, including the entities we create online,” says Steve.
Collaboration was a key feature of research activity in 2013 with a joint symposium held in Wellington organised by the Metro ITPs featuring research and development, and technology transfer activities, and showcasing the major research projects of the Metro ITPs. Together with our strategic partner, Whitireia, we held our first joint research symposium highlighting the high quality research that is being conducted at both institutions. The 2013 WelTec Annual Research Report provides an insight into the diversity and depth of work that is being undertaken by our teaching and research staff and provides a record of the successful outcomes of their publications, achievements, and recognition received from their peers in their research areas, professions and industries. The report features research from our teaching and learning advisory staff, and research and development projects carried out in collaboration with our industry partners that provide projects for our students.
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Steve already had a masters degree in philosophy as well as a business and IT degree. Before he joined WelTec 13 years ago he worked extensively in database and development in the industry. Researching and presenting his findings have meant that Steve’s reach has been wide. As well as the impact on students through teaching, his work benefits the IT industry, business and the academic community around the world. “The furthest away I have displayed a WelTec logo is on a wall in Västerås in Sweden. I was presenting to 30 people about the philosophy of information. “WelTec has been amazingly supportive through this whole process, with the Research Development Fund ensuring I could travel to conferences and be part of an international research community.” Steve has always emphasised the importance of teaching and stays in touch with some of his students. “I love seeing the way their lives and careers have evolved because of the study they’ve done here. The impact on them and their families is profound. Some of my former students have become important industry contacts, many of them are all over the world. “Information technology is a universal language. The business problems that IT solves are the same worldwide. I want students to think beyond getting through a qualification and think more widely about the role of IT in society and our lives. “My PhD topics relate well to the things I teach. I tell my students they need more than technical skills if they are to be successful in industry at a high level. They need to know how to present an argument, develop a case, look at things from a critical perspective and balance competing pressures. These are things that philosophy can teach..
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Stimulating Creativity As well as teaching, researching, working as part of a collaborative teaching team and maintaining his own art practice, Creative Technologies lecturer Malcolm Doidge is doing a two year Masters in Fine Arts at Massey University. Malcolm’s work, which includes two and three dimensional work, installations and new media, has been selected for several national art awards including the NCC Art Award, Anthony Harper Art Award and most recently, the 2013 Wallace Art Award and touring show. Malcolm describes his approach to his work as ‘bricolage’ a French term for tinkering. He takes everyday items and applies creativity in the workshop to transform them into something unexpected. Malcolm is interested in how everyday objects, such as brooms and wheelbarrows, can be altered to make the familiar seem very unfamiliar. His art materials reflect their origins in ‘big box’ retailers and he draws attention to this by transforming these mass produced items into objects that comment on sustainability and consumerism. About teaching, Malcolm says it’s important that students are involved in project-based learning. “Learning skills is important as it helps students be flexible in their thinking and working. Students encounter problems, working together with what they have and adapt their ideas. Solving technical and creative problems is an important part of their learning process.” Tutors in the School of Creative Technologies are working together to evolve this new kind of project-based learning. “The Creative Technologies Whanaungatanga - we’re all in this together - is becoming central to our thinking. Also our tikanga - the way we do things here - is to work collaboratively for the benefit of everybody.” This Whanaungatanga carries over to Malcolm’s Masters research. He explains that he is studying with colleagues and it’s important to see and support what others are doing. Malcolm’s teaching excellence was recognised when he was invited to present to the Sino/New Zealand Vocational Partnership’s inaugural symposium titled “Excellence in Vocational Teaching” in Quingdao, PRC. The presentation focused on the benefits of collaboration as a teaching methodology. “Collaborative projects are required at each level of study of the Bachelor of Creative Technologies in parallel with the students’ development towards independent study.” Malcolm regards this way of learning as a crucial element of academic success.
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Malcolm Doidge 2013 ANNUAL REPORT
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International makeup artistry recognition The fashion makeup artistry profession and our certificate programme in the subject is gaining credibility and respect thanks to tutor Olivia Wildey and the makeup artistry teaching team, which also includes tutors Dany Pike and Caroline Adams. They have been recognised widely for their research output, connections to industry, empowering approach and innovative teaching techniques. The team emphasises the need for intelligence and professionalism to all their students. They have applied this professionalism to the 17-week fashion makeup programme, reviewing and moderating every aspect of it over the last four years. As well as teaching Olivia has also continued to work in industry, including directing makeup for the 2013 Wellington Fashion Week and New Zealand Fashion Week. She involved past students so they could grow from the experience and build industry contacts. 2013 makeup artistry students were challenged to do a presentation on a makeup artist who inspires them. One group chose international makeup superstar to the superstars Billy B and made a short film that they put on video sharing site YouTube. Billy B himself saw it and announced it the best he had ever seen. Olivia grasped the opportunity on Twitter and invited Los Angeles- based Billy to judge the end of year class competition online. Rather than single students out he offered to talk to students on Skype. “I want them all to feel like winners, because they are,� said Billy. He spent an hour and a half online with the class, giving them feedback on their work, inspiring and encouraging them. He also told students they were lucky to have teachers like those at WelTec, whose approach is up there with the best in the world.
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Olivia Wildey 2013 ANNUAL REPORT
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Community Connections District plan changes After many years of hard work and community liaison including working with the Hutt City Council changes to the HCC District Plan (Plan Change 25) were approved in October 2013. This created a tertiary education precinct for our Petone campus. Education was not formerly a permitted activity for the zonings around the campus, limiting our development and activities and straining our relationships with our neighbours.
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Adoption of Plan Change 25 recognises WelTec as part of the community and gives us a legal framework to work within, providing more certainty in the future. This is a milestone for WelTec and enables campus development plans for a more vibrant and student focused learning environment to be progressed.
“A good head and good heart are always a formidable combination. But when you add to that a literate tongue or pen, then you have something very special.” ― - Nelson Mandela Pasifika staff
Rimutaka
We expanded our Pasifika team, led by Tavita Filemoni, to increase our Pacific Island students’ chances of success. The priority for the team’s three members was to increase the economic prosperity of Pasifika people by increasing their educational qualifications. They’re doing this by working closely with Pasifika communities and others in Wellington with similar goals.
This was the sixth year we delivered trade and technical training programmes for the Department of Corrections.
Encouraging families to consider a vocational qualification as an investment in the future was just one of the task team members have. Two of the team members, Windy Sione and Vei Lotaki, are student mentors so are able to assess student engagement and success and identify any barriers to success that individual students need help with. We are confident this holistic model will help close the gap between Pasifika students and the rest of the student community, which was only 5% behind the total student body in 2013 for course completions.
The goal of the programmes is to help reducing the rate of reoffending by getting prisoners participating in education. As many prisoners lack the necessary skills, qualifications and work experience to gain and sustain employment when they are released, the programmes help the Department with this priority, with outstanding results. The pass rate was 88 percent and 105 qualifications were awarded. Prisoners study towards nationally recognised qualifications that create opportunities for them on release. A number of prisoners have gone onto further training and some have used their qualifications to start their own businesses.
Dave McLoughlin, WelTec Painting and Decorating tutor at Rimutaka
Windy Sione, Tavita Filemoni, Vei Lotaki
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Business and Industry New Cybersecurity programme
Businesses meet Graduates
We launched a new cyber security and information assurance course in collaboration with the Government Communications Security Bureau (GCSB). The course has grown from the National Cyber Security Centre’s training of Government staff. We were obvious partners for this course as our School of Information Technology (IT) is one of the largest and most highly regarded in the country and we’ve offered specialised courses and qualifications in cyber security for the past eight years.
Construction and Engineering employers from Wellington and The Canterbury Skills and Employment Hub from Christchurch converged on WelTec’s Petone campus on 10 October to recruit from the latest cohort of construction and engineering graduating students. Feedback from employers and graduates was very positive with good connections made on the day with job offers or cadetships offered later. Graduates are being well placed and have accommodation, support networks, access to sports clubs and social networks
The week-long course is ideal for businesses and government departments who need their staff to be qualified to identify security or privacy risks and act to reduce these risks. The National Cyber Security Centre worked with us to ensure the latest trends are reflected in the teaching programme. The Fundamentals of Information Assurance and Security course is a condensed course designed to meet the latest New Zealand and international standards. It is an NZQA approved Level 6 course with a final examination on the last day of course.
More than 140 construction students from WelTec and Whitireia came to this function which was held at WelTec’s Petone campus. More than a dozen employers with job offers attended. The Canterbury Hub advised it had 482 vacancies and was particularly interested in recruiting for the trades. The Canterbury Hub returned the following month to discuss opportunities with hospitality and IT graduates. We also held a forum with our students from the Wairarapa to discuss job opportunities on completion of their studies. Feedback from employers and others who attended was very positive with many connections made on the day being followed up with job offers or cadetships which will enable students to complete their studies while working.
WelTec’s Chief Executive, Dr Linda Sissons and GCSB Director, Ian Fletcher.
Canterbury employers recruiting at Petone
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Employers’ Viewpoint The Employer Satisfaction Survey was repeated for 2013 with a report issued by Dr Virgil Troy at SIL Research (WelTec 2013 Employer Satisfaction Survey, March 2014). The research involved a new format to previous years including an online survey with additional questions which has allowed the Institute to align its research methodology with other ITPs and Universities. The survey also provides a rich resource of information about current requirements of employers and what they look for when taking on a graduate. The research found that WelTec is well regarded by employers and that existing programmes, teaching practices and emerging students are well received by employers. When reported on as a percentage, overall 89.9% of all employers are “satisfied with the knowledge and skills” of their WelTec students, 88.6% of employers stated they agree that WelTec students “have the skills they require” of their WelTec students, and 93.3% indicated that their WelTec students are “able to acquire new skills readily”. The report highlighted that certain attributes were strongly valued by employers. This included a positive attitude, understanding of safe work practices and health and safety, relevancy of skills to the business and real world experience.
The attributes rated the highest by employers included oral communication, capacity to learn new skills, applying knowledge and IT and digital literacy. Also key skills such as time management, coping with stress, analysing/solving problems and understanding energy efficiency and sustainability were rated highly. WelTec’s approach to teaching where workplace learning is integrated with the academic programme was highlighted by employers as a key factor in determining their satisfaction with a graduate. “I really think that the work experience is a vital part of training – this gives the students a real taste of an office environment,” said one employer of a graduate from the School of Business and Information Technology. Another employer in the same industry said “We have a strong relationship and history with WelTec and have taken on a number of WelTec students into our cadetship programme, most of which end up with full time permanent employment with us. We find the WelTec students are well-rounded, have great practical skills and solid communication skills. They seem to be very self-managing and are easily able to fit into teams as well as our culture and environment”. From a hotel manager “WelTec hospitality students possess all essential skills and attitude to succeed in their role in a busy hotel environment”. This feedback is very important and will be incorporated into ongoing self-assessment.
Employers were asked to rate the skills of students and the importance of these attributes. This allowed a detailed analysis to be undertaken with the highest ratings grouped as follows.
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Industry supporting students WelTec offered engineering scholarships in 2013 in an effort to encourage more young people to study the New Zealand Diploma of Engineering and the Bachelor of Engineering Technology – graduates with engineering technologist skills are highly sought after by employers. Engineering company Beca addressed the challenge of promoting engineering to women by offering for the first time The Beca Engineering Technology Scholarship. Allie Foote was the inaugural recipient and is currently studying on the Bachelor of Engineering Technology at WelTec. Allie is the former Head Girl of Samuel Marsden Collegiate School Whitby and wants to make a contribution to New Zealand’s renewable energy agenda by becoming an engineer. Allie is now being mentored by Sophie Gueroult, a senior engineer at Beca. As a Beca scholarship recipient Allie will spend time on site at Beca undertaking projects and work experience. “If Allie does well this year with her studies we’ll look to support her where we can,” says Beca’s Mike Kerr.
Employment Outcomes We were very pleased to see the proportion of graduates gaining employment or going into further study increase by 13% in 2013. This reflected a programme portfolio aligned to the needs of employers in the region combined with a more buoyant Wellington economy and our focus on brokering graduates into work. 79% of respondents said they had a job or had gone on to higher level study whilst a further 20% were actively looking for work. Of those in further study, 71% returned to WelTec with half undertaking degree-level study. The 2013 annual survey moved to an online format and is undertaken within four months of students completing their qualification. 94% of graduates responded in the survey that they had the skills required in terms of their employment experience to date and 92% noted they had the required knowledge. 95% responded that they were able to acquire new skills readily.
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Allie Foot pictured with Mike Kerr, Wellington Regional Manager for Beca is the recipient of the Beca Engineering Technology scholarship 2013 ANNUAL REPORT
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Graduates into Work We appointed a Jobs Broker to work with employers to help meet their staffing needs and find opportunities for our graduates. Employers have welcomed this and Jobs Broker Arnold Lomax is receiving several calls a week looking for a wide range of skills including trades, quantity surveying, engineering and IT. Arnold works closely with Wellington businesses, some of which have offices in Christchurch. This extends our reach to provide trades graduates for the rebuild and 100 graduates have been placed with Wellington employers and 15 graduates have been referred to Christchurch employers. Arnold also ensures that the graduates are being well placed and have accommodation, support networks, access to sports clubs and social networks. During 2013 there was a noticeable pick up in employment opportunities in Wellington and the Kapiti Coast. This was evidenced by one building company approaching us for 10 carpentry graduates for major construction projects. We also developed flexible training solutions for companies who wanted staff, but the students were yet to complete their programme of study. This ensured both the employer’s and student’s needs were met. Our contacts with various support agencies proved useful with the Ministry of Social Development, Work and Income Wellington regional office working with us to support the transition of students into work. With more than 120 employers on our database with jobs for our graduates we were pleased with the level and quality of service we provided to our graduates. Feedback from employers was also very complimentary with a number seeking formal agreements to have a closer working relationship.
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Ace Construction and Arnold Lomax WelTec Job Broker 2013 ANNUAL REPORT
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Delivering the talent of tomorrow Trade Me is a big consumer of information technology professionals. Head of Development at the auction website, Simon Young, says he has always had a good experience with WelTec Bachelor of Information Technology (BIT) graduates. “The quality of skills is mandatory when we choose people to join our team,” says Simon. “The greater challenge is to find the right cultural fit.” Someone who has both skills and ‘fit’ is WelTec BIT graduate Jimmi Corbishley. Jimmi was initially introduced to Trade Me through the Summer of Tech internship programme, an initiative of Grow Wellington and other sponsors to help innovative Wellington companies connect with smart technology students. Wellington’s Summer of Tech programme matches students into paid work-experience over the holidays, with the chance to potentially gain a more permanent position. Simon says that he likes the Summer of Tech programme as there is an element of self-selection and motivation usually missing from the many who approach Trade Me throughout the year. “The programme requires commitment and the candidates must network and basically sell themselves to be a part of the programme. Then they have to deliver on the promise through the internship before they are rewarded with a position here.” Jimmi has been part of Trade Me’s highly sought after workplace for three years. He joined as a junior developer and is now leading a ‘squad’, Trade Me’s approach to a project team. Simon describes Jimmi as a great asset to the organisation. “ WelTec’s graduates are well-rounded and have the flexibility that is required in an innovative organisation where people’s jobs can change a lot. They need personal and life skills to draw on, as well as technical skills. We noticed Jimmi’s ability to lead and drive change as well as realise the abilities of others. ‘The team dynamic is a business reality. To be a successful squad leader you have to take into account people’s emotional wellbeing and personal politics as well as skills and preferences. These social skills don’t always come with the IT craft.” The squads are self-selecting and have end-to-end responsibility for a system change. With up to 20 changes to the site each day, all while it is in use, Simon likens updates to pulling a vehicle into rush-hour traffic. “My own job would be very scary without good people.”
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Jimmi Corbishley and Simon Young, Trade Me Manager 2013 ANNUAL REPORT
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Regional Impacts New Hospitality school venue making its mark The new hospitality campus we share with Le Cordon Bleu on Wellington’s Cuba won a gold award in the education category of the New Zealand Commercial Projects Awards. Judges commented on the project being completed on time, despite many challenges. The new venue was used for several high profile events during the year, attracting acclaim for both the building and the skills of our students and staff. A business after five event with Business Central Wellington was attended by 150 Wellington business people, proving what a business hub WelTec can be. The School of Hospitality also hosted nearly 50 Youth Court judges from New Zealand, Australia and the Pacific for a dinner. Students delivered a quality experience and a well-managed event. Our hospitality students did well at the Toque d’Or in Auckland, gaining a number of silver medals.
Regional School of Construction The Government has agreed to invest $13.6 million to help build a new construction school in Wellington. The Regional School of Construction will consolidate our current engineering and construction programmes, along with Whitieriea’s, onto one site in Petone. The goal is to boost the number of skilled tradespeople for the construction sector, which employs 170,000 people and is worth more than $30b to the economy. Tertiary Education, Skills and Employment Minister Steven Joyce made the announcement in November alongside the release of Government’s Construction Sector Report. He said the development reflects the growing importance of the construction sector and flows from the Government’s considerable investment in construction skills training to support major infrastructure projects throughout the Wellington region and across New Zealand, including the Canterbury rebuild. The School will help Government with its goal to boost skill levels to keep ahead of demand, expected to peak in 2016. An extra 3220 jobs are expected in the construction sector in the Wellington region alone, with major projects such as Transmission Gully. Local employers are also enthusiastic. With many commercial jobs on in Wellington, earthquake strengthening and new builds, businesses are crying out for skilled carpenters and other tradespeople. They are also happy that the initiative is being led by two institutions, WelTec and Whitireia, that have solid reputations for producing quality trade graduates.
Learning Commons at the School of Hospitality
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Site of Regional School of Construction
222 Willis Street Construction on WelTec’s new student accommodation at 222 Willis Street was completed at the end of 2013 and the creation of the service unit, WelTec Student Accommodation Limited, was completed. This included the recruitment and employment of a team of staff and the establishment of a range of policies and procedures. Situated at 222 Willis Street, the premises provides student accommodation for WelTec, Whitireia, Le Cordon Bleu and other tertiary learners in Wellington. The complex comprises of 6 floors with 280 beds. The accommodation is configured into a mix of studio, 2 bedroom and 4 bedroom apartments. Each apartment is comfortably furnished and has its own kitchen and bathroom.
This high quality residence in the heart of the Wellington CBD was designed with out of region and international students in mind. The facility provides a secure and managed environment for students to learn in. Each floor has a senior student, called a Residential Assistant (RA), on site and there are two senior staff who also live at the facility. A full community development programme and pastoral care is provided to residents. By late December 2013 the bulk of 222 Willis was contracted to students who commenced occupation in February 2014.
Student Accommodation at 222 Willis
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National Contribution Samoa Plumbing
Pasifika Trades Training
Five plumbing graduates of WelTec and Whitireia and a WelTec tutor went to Samoa as volunteers with the Samoan Water Authority. They travelled with the support of the Ministry of Foreign Affairs and Trade and WelTec as part of New Zealand’s contribution to Samoa’s recovery from Cyclone Evan.
We continued for the second year running to provide training to Pasifika Trades Training scholarship recipients. The initiative’s goal was to encourage more Pasifika learners to enrol in trades training and provide qualified trades people for the Canterbury rebuild. WelTec and Whitireia who also participated together had the largest share of Pasifika students in relation to the size of the Wellington region’s population compared to other providers involved in the initiative. The group also comprised a greater diversity with 5 Pacific nations represented.
The students had the chance to apply their practical problem solving to helping restore the water supply system. As well as working on local infrastructure they reconnected homes, which made them very popular. While he was there WelTec tutor Ken Hodge also shared some of his knowledge with some of the local plumbers.
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The Tertiary Education Commission issued its evaluation in November 2013 of the Pasifika Trades Training initiative based on evidence from the previous year. 46 learners were involved at WelTec with 48 qualifications awarded which equated to a qualification completion rate of 76%. This was the highest of all participating Polytechnics. In 2013 results were even better with more than 80% of learners achieving a qualification and more than 83% successfully completing the courses they enrolled in. Collaboration with Church Ministers, the local Pasifika community and across WelTec was a key contributor to the success of the initiative.
International Culinary Competition
Canterbury Rebuild
Two WelTec students competed in and were overall winners of the International Culinary College Competition held in our new hospitality campus. It was an excellent showcase for the quality of our hospitality teaching as well as for the new school. Judges and competitors came from England, Australia, Hong Kong and the USA.
We are actively working with southern employers who want to take on more graduates to help with the Canterbury rebuild. Graduates were placed into work in Christchurch, Wellington and Auckland. Graduates are also needed to ‘backfill’ around the country as skilled tradespeople move to Christchurch. This is a great opportunity for graduates as well as providing important skills that employers, and the region, need. There is particular demand in the ‘wet trades’ - brick laying, block laying and tiling; painting and decorating - as well as other trades like carpentry. We held an information evening where students could meet staff and representatives from the Canterbury Skills and Employment Hub. The Ministry of Social Development (MSD) is helping us provide a wrap around service to our graduates, helping them relocate to the South Island with the support they need for success.
Congratulations Hospitality Students and Staff WelTec competed in the Toque d’Or in August. The team acquitted itself well achieving silver medals and was supported by Chef tutors Scott Campbell and Ray Morrell, and Front of House tutor Peter Besseling. The WelTec Toque d’Or team won four silver medals.
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Outstanding Young Hotel Executive Named A rising star in New Zealand’s hotel industry was named ServiceIQ Outstanding Young Hotel Executive of the Year. Shane Michael, Concierge Manager at Wellington’s James Cook Hotel Grand Chancellor, took out the top award at a function on 30 May. Shane started off studying on the Certificate in Hotel Reception and continued with his studies to graduate with a Bachelor in Hospitality Management from WelTec. Shane rose quickly through the ranks at the James Cook Hotel Grand Chancellor since starting in a part-time role while studying. Upon graduating he completed his studies, moved straight into a management role and is currently Concierge Manager. “Shane is a brilliant concierge, with a great positive attitude and always willing to help others. He shows a genuine interest in guests, anticipating their needs and any queries with a high level of professionalism, confidence and charisma,” James Cook Hotel Grand Chancellor General Manager Steve Martin says. “Recognising great people is vitally important in any sector but for the hotel sector they carry extra importance as without great people we would have significant challenges delivering high quality guest service,” says Awards judge and and co-host, Stephen Hamilton, Director of Horwath HTL.
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Dean Minchington, ServiceIQ Chief Executive with Shane Michael Photo Credit: Amanda Wignell Photography 2013 ANNUAL REPORT
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Back on track with learning Some young people just fall out of love with secondary school and the feeling can be mutual. This is where the Wellington Trades Academy can help, getting the students back on track with education by engaging them in something they are really interested in. The Wellington Trades Academy at WelTec opened four years ago and is funded by the Ministry of Education through the TEC as part of the Youth Guarantee Policy. There are 102 fully-funded places for students, who are enrolled in both the Academy and their secondary school. They work towards achieving their NCEA while studying a trade. Associate Head of School of Foundation Studies and Director of the Wellington Trades Academy Hamish Davidson is enthusiastic about what was achieved in 2013. An important measure of success is whether the students achieve their Level 2 or 3 NCEA by the end of the year. This year 88 percent did. “We know the students would not have achieved this success if they were still at school,” says Hamish. “In fact, for many it’s unlikely they would still be at school at all. Here they can specialise in their chosen field, complete their secondary education and start to get to grips with the tertiary world. All in a structured learning environment with a lot of monitoring and pastoral support. “Of all the students who started the year 78 percent went on to employment, further training or education. It’s heartening that 60 percent of our 2013 students have gone on to enrol in further study at WelTec. Three students received a special entry into our Bachelor of Creative Technologies.” One of the Academy’s goals has been to build strong relationships in secondary schools. This has been so effective that for 2014 all places are full for the first time, with 72 percent of students having first heard about the Academy through their school. The Ministry of Education reported in March 2014 on excellent achievement and retention results for Trades Academy students nationwide. Of the cohort of students born in 1994, 99% of learners participating in a Trades Academy were retained in education at age 17 compared with 87% of the comparable group not involved in Trades Academies. 83% of the Trades Academy students achieved NCEA level 2 or equivalent at 18 compared with 70% of the general population aged 18. For WelTec 88% of students at the Wellington Trades Academy achieved NCEA level 2 or level 3 far exceeding the contract target of 80%. The Better Public Service target for NCEA level 2 achievement by 18 is 85%. WelTec is justifiably proud of our results. The Trades Academy model is clearly working and WelTec is proud to be involved and we acknowledge the support of our contributing secondary schools across Wellington.
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Stacey Dalziel (seated) and Sarah Johnson Wellington Trades Academy students practised their hairdressing skills over three months in preparation for the World of WearableArt Awards Show in November. Lesley Whitecliffe-Smith (pictured in background) tutored the Trades Academy students WelTec has an agreement with WOW to provide hairdressing and makeup services for the show.
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International Recognition International benchmarking excellence
Creativity Sparks at Cyberport Hong Kong
The hard work of our team that support international students - staff, tutors and learning support - was recognised in an international survey. The Student Barometer is the largest annual study of students in the world and is conducted by the International Graduate Insight Group (i-graduate), an independent benchmarking and research service. Of 68 institutions from 11 countries the survey ranked WelTec first and second in several categories that show international student satisfaction with living and support.
At the invitation of Cyberport (a creative digital community with a vision to establish itself as a leading information and communications technology hub in the Asia-Pacific region) WelTec Head of Creative Industries Teriu Lemon and Lecturer Gareth McGhie travelled to Hong Kong where creativity dominated traditional ways of approaching information technology applications and tools.
Student work placement New Zealand is welcoming more skilled Indian immigrants, with numbers now exceeding Britain for skilled migrants. They are attracted by the lifestyle, people and also the quality of education.
Teriu and Gareth joined Laura Brandon, a robotic software developer at NEC to deliver a six-day workshop with Cyberport’s IT students challenging the participants to think creatively about IT tools and nontraditional applications. The partnership with NEC means WelTec student and staff get to collaborate with a world leading giant in technology R&D.
An excellent example is Indian student, Akhil Garg, who moved from India to Wellington to study IT at WelTec. He had a job with a Wellington IT company within three days of completing his course and was able to secure a skilled migrant visa. Outcomes like these reassure potential international students of the quality of their WelTec education as well as helping meet local demand for quality IT graduates.
L - R: David Chung(Chief Technology Officer Hong Kong Cyberport), Teriu Lemon(HOS Creative Industries,WelTec), Kathering Lam (Business Development and Training Manager, Cyberport, Hong Kong), Gareth McGhie (Cultural Design Lecturer WelTec)
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International connections We signed a new agreement with Guangxi Polytechnic of Construction (GPC), a highly respected and specialist construction school in China. Students will study the first two years at GPC and then come to WelTec for their final year of either a New Zealand Diploma in Engineering (Civil) or a Diploma in Creative Technologies. The arrangement will greatly increase the number of Chinese international students from mid-2014.
A memorandum of understanding was signed with Rajagiri College of Social Sciences a the School of Social Work, India. Our plan is to work with the school on a connection between their Bachelor of Social Work and our health and social services programmes. We also extended marketing and recruitment initiatives into Indonesia and Vietnam, India, China and Arab States of Saudi Arabia, Jordan and Libya.
We are also a partner in the Chengdu project with Wintec, Unitec and the University of Chengdu, China. The project is making good progress with course descriptions and programme regulations provided to the Chinese government for qualification approvals. When approved, our staff will deliver the Bachelor of creative Technologies Digital Media (animation) major at Chengdu.
Guangxi Polytechnic of Construction ceremony Petone, August 2013
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Ongoing link to the South Westphalia University of Applied Sciences Our relationship with the South Westphalia University of Applied Sciences in Meschede, Germany has been developing since 2005. In 2013 it reached a peak as we hosted five students from the university’s Department of Engineering and Economics, as well as our first teaching visitor. Professor Patrick Scheunemann lectured our engineering technology students in fluid mechanics and delivered an updated memorandum of understanding between WelTec and the university. Our School of Engineering has a lot in common with the German university. We both offer a practical approach to teaching engineering, with an emphasis on real projects and industrial applications. This makes the students of both institutions in high demand by employers. We both have good relationships with local companies and offer an alternative learning approach to a purely academic study of engineering. Over the last eight years two WelTec students have gone to study in Westphalia as part of their Bachelor of Engineering Technology programme. And we’ve hosted 20 students from the university at WelTec. The visiting students have worked on the design of aspects of ultra high pressure water jet technology for a local company. Studying at WelTec is a highly sought after opportunity as students enjoy the projects, as well as the opportunity to work in a professional way in the English language - a skill in demand by European employers.
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Professor Patrick Scheunemann 2013 ANNUAL REPORT
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International student success It was a skill he didn’t really want to use that landed Kai Ma his first job in the New Zealand TV and film industry. Originally from China, Mr Ma, 27, is working at Wellington’s Pukeko Pictures, the home of the WotWots, and which is also working on a revamped Thunderbirds TV series which will be out next year. Mr Ma’s job is as a 3d storyboarding artist, creating animated versions of what is to be filmed so everybody involved in the production process can see what is required. But storyboarding wasn’t something he was interested in, at least initially. The Creative Technology Diploma graduate was making a short film as part of the course and a tutor said he should storyboard each shot before filming it. Called A Little Man the film was about a tiny man living in an alley who manages to inadvertently save a woman from an attack. Mr Ma wrote, directed and acted in it, and also did the compositing of the special effects. He says he wasn’t keen on doing the storyboard. ‘‘I had all of the images in my mind and I figured I could just go to the alley and film them. ‘‘But the tutor insisted I did the storyboard first so I drew all the pictures, showing all the shots, and I kept them after the movie was finished.’’ After the course he saw a job come up at Pukeko Pictures for someone who could do storyboarding. ‘‘So when I was preparing my CV, I got all my storyboard artwork together and when they saw this at the interview, they were pleased I had that experience. ‘‘Sometimes when you are being taught something you don’t know how important it is, but one day you find out it’s not a waste of time!’’ The Graduate Diploma in Creative Technologies is a programme for those who already have degrees. (His bachelor degree was in acting but Mr Ma reckons he is better on the other side of the camera.)
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The 34 week programme lets students explore the creative industry and has a large practical component, including collaborative practice and direct industry-relevant projects. Students specialise in digital pre and post-production including animation, film, a range of creative workshop practice, management and areas within creative IT. It was a qualification that appealed to Mr Ma because of its hands-on aspect, and it was being delivered in a key film city Wellington. Mr Ma, originally from Lanzhou, had worked on films in Beijing as a special effects compositor, but he wanted to travel and increase his skill set. He says the two places he thought of moving to were either New Zealand or the United States, but he decided on NZ as it is a hub of international film-making, and Wellington as it is the hub of that hub. He liked that WelTec has good links with the industry in the city, has its own studio and the students train on the same commercial animation software, Maya, that industry uses. The programme also stretched him in other ways. Part of the curriculum was to find a practical placement as an intern and to get a reference from the employer. He and another international student had to go on a hunt for a placement. He says they were getting a bit downhearted but they needed the placement to pass so they persevered. ‘‘We kept looking and looking. In the end she found a job creating a manual for a restaurant and I went to Wellington MakerSpace.’’ The MakerSpace runs 3d printing and laser cutting services, among others, and coincidentally they had a machine that came from China. They had some questions for the manufacturer. ‘‘So I called China for them and asked them for them.’’ ‘‘I learned a lot of things at the maker space, as I didn’t know how to use those tools there, and I learned a lot.’’ And as he says, you never know when those skills will end up being very handy.
Kai Ma
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Our People Faculty Management Structure The implementation of the Faculty Management structure was a feature of 2013. Significant work went into supporting a smooth transition to the new structure. A steering group oversaw this implementation and identified clear indicators for success. The expectation is that a formal review of this change process will be completed in early 2014. A key outcome of the new structure in 2013 was the development of a “Careers Pathway� document that outlines the development options and expectations for academic staff.
Human Resource Metrics In 2013 employee and employment data captured by Human Resources was presented for the first time in a formal HR Metrics Report for the Executive Management Team. This report provided the framework for data on employees and their employment arrangements to be analysed in a more in-depth way to better inform the development of strategies as appropriate. It also allows for more specific targets to be set in some areas and measurements put in place that show a direct connection with the overall performance of the organization and the positive effect this has on our stakeholders. The full benefit of this will be realised as metrics for 2013 are compared with those in 2014 with trends identified and changes made to influence positive outcomes.
New academic staff are supported into teaching through the Academic Induction programme, introduced in 2013, which supports them into teaching and into DTLT. A complementary approach was to work with teaching teams on matters specific to them. The CDU worked with three Schools in 2013, about embedding literacy and numeracy into teaching, assessment and moderation, and design for learning. We are planning with Whitireia ways we can also engage their academic staff in the DTLT.
Staff Recognition Promotions Round Each year Academic Staff are invited to apply for promotion through a formalised annual process. A panel reviews applications and successful applicants are promoted to either Senior Academic Staff Member or Principal Academic Staff Member. In July a celebration was held for successful staff members who were presented with certificates by the Chief Executive and congratulated on their promotion to their new role. Five staff members received promotion to Senior and one staff member was promoted to Principal.
Emergency Management Capability Development 2013 brought a new focus on professional development in the form of the Capability Development Unit. In 2013 this unit focused primarily developing good educational practice through development of academic staff. More than 20% of teaching staff are enrolled in the Diploma in Tertiary Learning and Teaching (DTLT). This includes new staff and more experienced staff who enter the programme with cross credit and recognition of prior learning from previous qualifications and experience. Six academic staff completed the Certificate level of DTLT (60 credits).
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WelTec has continued its focus on improving its response to emergencies. The Incident Management team, established in 2011, received additional training and the two Wellington earthquakes in 2013 allowed the team to put theory into action. An Incident Management Centre was set up. The Centre is equipped to support WelTec through any emergency that may arise. Building wardens received further training in managing staff and students during an emergency. Civil Defence cabinets were installed at all new sites.
Staff Awards Each year nominations are sought for staff in a number of categories to recognise and celebrate those who have demonstrated excellence and outstanding achievement in their daily work.
Leadership Award Clifton McKenna Jennifer Couper
In 2013 awards were presented to staff in the following categories:
Neville Weal
Emerging Researcher Award
Team Award
Adi Brown Olivia Wildey
Cyberport Team: Darren Ward, Gareth McGhie, Todd Cochrane
Exellence in Research Award
Customer Services Award
James Mackay
Eugene Abromov
Emerging Teacher Award
Winners in each category receive a certificate and a monetary contribution towards further personal development.
Paul Schreuder Richard Davies
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Student Hub – Petone Campus
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Statement of Objectives and Service Performance
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Investment Plan of SAC Mix of Provision Objectives
Measures 2012 Actual
2013 Target
2013 Actual
Total EFTS at Level 1 -3
864
741
821
Total EFTS 4+
2174
2090
1960
Total EFTS from MoP
3038
2831
2781
Participation Objectives
Measures 2012 Actual
2013 Target
SAC Maori EFTS
2013 Actual 486 EFTS
SAC Maori All Levels
19%
19%
17%
SAC Maori Level 1 to 3
9%
7%
7%
SAC Maori Level 4 and above
10%
12%
11%
SAC Pacific EFTS
299 EFTS
SAC Pacific All Levels
11%
11%
11%
SAC Pacific Level 1 to 3
4%
4%
5%
SAC Pacific Level 4 and above
7%
7%
6%
SAC Under 25 EFTS
1748 EFTS
SAC Under 25 All Levels
64%
65%
63%
SAC Under 25 Level 1 to 3
22%
20%
19%
SAC Under 25 Level 4 and above
42%
45%
43%
347
387
370
Internation EFTS Total EFTS International EFTS All Levels
Education Performance Objectives
Measures 2012 Actual
2013 Target
2013 Actual
SAC Students All Levels
81%
80%
81%
SAC Students Level 1 to 3
80%
80%
82%
SAC Students Level 4 and above
82%
85%
81%
SAC Maori All Levels
77%
79%
75%
SAC Maori Level 1 to 3
75%
75%
78%
SAC Maori Level 4 and above
78%
80%
73%
Course Completion SAC Funded Students
SAC Maori Students
Education Performance Objectives
Measures 2012 Actual
2013 Target
2013 Actual
SAC Pacific All Levels
76%
76%
77%
SAC Pacific Level 1 to 3
77%
75%
81%
SAC Pacific Level 4 and above
76%
76%
74%
SAC Under 25 All Levels
80%
78%
80%
SAC Under 25 Level 1 to 3
81%
74%
80%
SAC Under 25 Level 4 and above
80%
79%
80%
74%
74%
79%
International Students All Levels
89%
85%
88%
International Student Level 1 to 3
84%
80%
75%
International Studen Level 4 and above
90%
86%
90%
SAC Students All Levels
72%
67%
69%
SAC Students Level 1 to 3
70%
73%
74%
SAC Students Level 4 and above
72%
65%
67%
SAC Maori All Levels
64%
62%
59%
SAC Maori Level 1 to 3
67%
65%
70%
SAC Maori Level 4 and above
63%
60%
53%
SAC Pacific All Levels
64%
62%
63%
SAC Pacific Level 1 to 3
70%
65%
76%
SAC Pacific Level 4 and above
63%
60%
53%
SAC Under 25 All Students
64%
67%
63%
SAC Under 25 Level 1 to 3
72%
73%
71%
SAC Under 25 Level 4 and above
63%
65%
60%
65%
72%
87%
90%
SAC Pacific Students
SAC Under 25 Students
Youth Guarantee Students Youth Guarantee Students International Students
Qualification Completion SAC Funded
SAC Maori Students
SAC Pacific Students
SAC Under 25 Students
Youth Guarantee Students Youth Guarantee Students International Students International Students All Levels
82%
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Education Performance Objectives
Measures 2012 Actual
2013 Target
2013 Actual
66%
65%
73%
38%
40%
37%*
SAC Student Retention SAC Students All Levels SAC Student Progression SAC Students Level 1 to 4 *
Interim TEC result
Student Satisfaction Objectives
Measures 2012 Actual
2013 Target
2013 Actual
All Students
94%
95%
92%
Maori
97%
95%
93%
Pasifika
96%
95%
99%
Under 25
95%
95%
91%
Student Satisfaction
Relevance Objectives
Measures 2012 Actual
2013 Target
2013 Actual
Proportion graduates gaining employment or going on to further study1
66% (an additional 32% were work ready)
70%
79% (an additional 20% were work ready)
Relevant qualifications2
88%
95%
89%
93%
95%
93%
3
Work readiness of WelTec graduates
1
As assessed by employment outcome surveys As assessed by the annual Employment Statisfaction survey 3 Ass assessed by the annual Employer Satisfaction Survery 2
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Collaboration, Pathways and Transitions Objectives
Measures 2012 Actual
2013 Target
2013 Actual
Develop shared pathways with Whitireia for qualifications
At least 2 qualifications
Achieved
Support NCEA vocational pathways at Levels 1 - 3 in conjunction with Whitireia
Develop a joint approach to supporting the NCEA vocational pathways at Levels 1 - 3
Level 1 and 2 foundation offerings were approved for 2014 provision
Improve student transitioning between Whitireia and WelTec
Review student information and enrolement practice to identify barriers to students transitioning between Whitireia and WelTec
Taikura, the joint WelTec/Whitireia Quality Management System, was approved by Council
LLN Objectives
Measures 2012 Actual
2013 Target
2013 Actual
60%
65% gain for Reading 65% gain for Numeracy
LN Progress The proportion of EFTS assessd as requiring additional literacy and numeracy who are enrolled in Level 1 - 3 provision and make literacy and numeracy progress as measured by the Literacy and Numeracy for Adults Assessment Tool
Financial strength and sustainability Objectives
Measures 2012 Actual
2013 Target
2013 Actual
2%
2%
-1%
1:20
1:18:5
Financial Strength Financial Surplus % (Operating Surplus/ Total Revenue) Financial Sustainability Teaching FTE to EFTS Ratio
Infrastructure and systems Objectives
Measures 2012 Actual
Shared Services - Students First Project
2013
2013 Actual
Stage one of Shared services strategy implemented
W2, our joint Shared Service entity with Whitireia Community Polytechnic was established. The leadership team was appointed and a comprehensive Business Plan developed. The initial primary focus of this entity was procurement and delivery of information and communications technology (ICT) services. Key 2013 outcomes included procurement savings and a refocus of IT priorities 2013 ANNUAL REPORT
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Business Plan Performance In 2013 we continued to focus on the strategic goals of our investment plan. Our business plan has eight strategies, one of which is developing Students First, our relationship with Whitireia Polytechnic. The other seven aim to address four key priorities for us: Quality of teaching, learning and research; efficient and effective customer service delivery; diversified revenue; and capability growth. Quality Strategy 1 - Advance quality teaching and learning to develop successful students and achieve excellence We achieved key targets on our teaching and learning measures in 2013. Our target for course completion for all levels of Student Achievement Component provision was 80 percent; we achieved 81 percent. The qualification completion target of 67 percent was overachieved, at 69%. We far exceeded the student retention target of 65 percent by eight percent, achieving 73 percent in this important measure. In TEC’s recently produced interim Educational Performance results which are formally published later in the year, for our Student Achievement Component (SAC) funding for Level 3 and above programmes, our students achieved an overall course completion rate of 82%, a qualification completion rate of 72%, and a retention rate of 72%, all above the sector median. Student progression was 37%, which was the sector median. The 2013 Youth Guarantee cohort successfully completed 79% of the courses they were enrolled in and achieved a qualification completion rate of 72%. Our international student educational outcome results reflected the support provided to them throughout the year with course completion rates of 88% and a qualification completion rate of 90% being achieved.
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Efficient and effective customer service delivery Strategy 2 - Create a compelling student experience We improved students’ experience of enrolment with several changes, including clarifying the roles of different groups involved in the process. We have also done a lot of work on our database systems and records management to make things more efficient for both staff and students. Application packs, welcome letters and frequently asked questions have all been updated and improved. Our students expect to be able to enrol online and now they can. The online solution was rigorously tested to ensure it met student and WelTec needs. An important innovation this year has been our ability to manage and track enquiries and enrolment interest. We now better understand where enquiries come from so that these can be encouraged. It will also help us assess and refine our marketing efforts. We have improved student result processing and staff compliance with reporting so that students can get their results more quickly. Strategy 4 - Enhance our academic platform to support the delivery of the portfolio We put in place the Taikura Quality Management System ready to take effect from 1 January 2014. Taikura QMS replaces the many quality management systems across both WelTec and Whitireia with a small number of common policy principles on the roles of te Tiriti o Waitangi, the learning environment, evaluation and quality management A new education technology team is helping us use technology to improve programme delivery as well as reduce costs. This includes implementing online learning system Moodle; opening a new multimedia suite at the Petone campus, installing plagiarism detection software; and remote testing of the English language proficiency of international students. Our addictions programmes are now delivered online, freeing us from the expenses of a campus in Christchurch and helping reduce costs for our Auckland delivery. We continued to build our relationships with businesses and industry, helping ensure our programmes are relevant and meet current needs and standards. We continue to have very strong relationships with industry trade organisations and we provided off job learning amounting to 459 EFTS to industry training organisation trainees . This is 40% percent over our target of 327 and six percent up on our 2012 achievement.
Strategy 5 - Develop the shared infrastructure platform to support our delivery of the portfolio This was the first year of full operation of W2, our joint venture entity with Whitireia that enables us to share services. W2’s business plan includes IT and procurement priorities for 2014-2016. Procurement initiatives delivered over $800,000 in savings across both institutions. Business intelligence capability is improving EFTS and results reporting. There have been challenges with the SAS platform, which has delayed some initiatives but we are working on solutions. Collaborative campus development plans were developed, including progress on the new joint Centre of Excellence in Creative and Performing Arts and Technologies as well as the planning and purchase of land for the Regional School of Construction. At WelTec, earthquake strengthening of the Student Hub, Church Street, C Block and A Block were completed. We completed the new student accommodation block at 222 Willis Street, which quickly reached full occupancy.
Diversified revenue
We achieved our goals for participation of priority groups. Our international student EFTS while 96 percent of target, were seven percent up on 2012. The following table gives a summary of our EFTS achieved in 2013.
Funding Source
Planned EFTS
EFTS Achieved
SAC 3+
2560
2531
Priority Engineering
20
20
Priority Trades
95
Overall threshold not met to claim additional EFTS
SAC 1 and 2
210
230
International
387
370
Full Fee
37
125
STAR
270
226
ITO
327
459
Youth Guarantee
116
116
Adult and Community Education
50
51
Trades Academy
100
90
4172
4218
Strategy 7 - create new and deepen existing relationships and revenue streams
Strategy 3 - agree, develop and roll out our delivery of the portfolio Additional programmes were developed and delivered to meet industry demand and TES priorities. These included: •
Foundation studies Levels 3 and 4 maths and science to progress into diploma and degree engineering programmes
•
Foundation Studies for Level 3 Plastering
•
Certificate in Welding Level 3
•
Certification in Electrical Engineering Level 3
Our reputation and relationships with industry and business remain strong. To help turn this into income for WelTec we created new positions to build on the strength of these connections. This includes a new Director Customer Acquisition and Industry Liaison Manager. Our new Work Broker put 100 graduates into full time employment using our 150-strong employer database.
Capability growth Strategy 6 - Define key capability shifts for success
Funding highlights for 2013 include exceeding the EFTS baseline for Priority Trades identified for the Canterbury rebuild. We also achieved a growth of 20 EFTS over 2012 levels for engineering skills identified as priorities by the government. We reached 99 percent of target for Level 3 and above programmes (excluding Priority-funded targets). However, we didn’t reach our goal to increase the ratio of Level 4 and above EFTS over Level 3 EFTS. We aimed for 75:25 and achieved 70:30. This was because of our overachievement by 11 percent in Level 3.
The Capability Development Unit, introduced in 2013 to develop teaching capability and ensure academic staff have relevant teaching skills and qualifications, had a successful year. One third (74) of academic staff enrolled in the Diploma of Tertiary Learning and Teaching. We also invested in training for induction, cultural competence, communication and administration. We completed the new faculty management structure, which will be reviewed in 2014. A faculty-wide administration team is now in place. A new internal communications strategy was implemented and is being well received by staff.
Exceeding Investment Plan funding for Level 1 and 2 SAC programmes was agreed with TEC because of the high demand for these programmes.
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Financial Statements Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows Notes to the Financial Statements
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Statement of Comprehensive Income For the year ended 31 December 2013 GROUP
Note
PARENT
2013 Actual
2013 Budget
2012 Actual
2013 Actual
2013 Budget
2012 Actual
$000
$000
$000
$000
$000
$000
Operating income Government funding
2
28,537
29,745
30,229
28,342
29,606
29,980
Tuition funding
3
18,111
19,256
17,739
18,104
19,256
17,739
Other teaching
4
2,816
2,446
3,133
2,813
2,446
3,133
Other income
5
3,268
3,670
3,847
3,033
2,363
3,312
52,732
55,117
54,948
52,292
53,671
54,164
30,658
30,481
31,034
30,089
29,685
30,469
4,455
4,521
4,925
4,315
4,431
4,803
Total operating income
Cost of services Personnel
6
Teaching delivery Administration
7
6,515
6,708
6,936
6,113
6,308
6,466
Infrastructure
8
6,492
6,447
5,804
6,448
6,375
5,776
Interest, depreciation & amortisation
9
4,946
5,522
5,065
4,936
5,479
5,063
53,066
53,679
53,764
51,901
52,278
52,577
(334)
1,438
1,184
391
1,393
1,587
Total cost of services Operating (loss)/profit Non operating items (expense)/income
10
(1,674)
(400)
(807)
(5,238)
(400)
(807)
Share of jointly controlled entities (loss)/profit
14
(790)
(238)
(692)
-
-
-
(2,798)
800
(315)
(4,847)
993
780
(Loss)/profit
Other comprehensive income Gain/(loss) on property revaluation
24
1,376
-
(139)
1,376
-
(139)
Gain/(loss) on plant revaluation
24
61
-
-
61
-
-
(1,361)
800
(454)
(3,410)
993
641
Total comprehensive income The accompanying notes form part of these financial statements
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Statement of Changes in Equity For the year ended 31 December 2013 GROUP
Note
Balance at 1 January
PARENT
2013 Actual
2013 Budget
2012 Actual
2013 Actual
2013 Budget
2012 Actual
$000
$000
$000
$000
$000
$000
72,770
73,312
73,224
74,430
75,078
73,789
(2,798)
800
(315)
(4,847)
993
780
1,437
-
(139)
1,437
-
(139)
(1,361)
800
(454)
(3,410)
993
641
-
-
-
-
-
-
-
-
-
-
-
-
71,409
74,112
72,770
71,020
76,071
74,430
Other comprehensive income (Loss)/profit for the year Other comprehensive income Total comprehensive income
Equity transactions Crown equity injection
22
Total non-comprehensive income items Balance at 31 December The accompanying notes form part of these financial statements
2013 ANNUAL REPORT
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Statement of Financial Position For the year ended 31 December 2013
GROUP
Note
PARENT
2013 Actual
2013 Budget
2012 Actual
2013 Actual
2013 Budget
2012 Actual
$000
$000
$000
$000
$000
$000
Current assets Cash and cash equivalents
25
12,014
6,464
8,711
11,904
6,141
8,495
Trade and other receivables
11
6,018
5,045
7,166
6,058
5,778
6,878
Inventory
12
19
16
17
19
16
17
-
5
7
-
5
7
5
-
3,500
5
-
3,500
18,056
11,530
19,401
17,986
11,940
18,897
Prepayments Other financial assets
15
Total current assets Non current assets Investment in subsidiary
13
-
-
-
-
3,030
4,281
Investment in associate & jointly controlled entities
14
577
1,424
2,148
140
140
140
Other financial assets
15
-
14
14
-
14
14
Property, plant and equipment
16
65,296
71,227
64,459
65,280
71,160
64,449
Intangible assets
17
376
785
940
376
644
804
Total non current assets
66,249
73,451
67,561
65,796
74,988
69,688
Total assets
84,305
84,980
86,962
83,782
86,928
88,585
Current liabilities Trade and other payables
18
4,860
3,085
5,222
4,779
3,102
5,208
Employee benefit provisions
20
2,649
2,882
3,167
2,649
2,853
3,144
Income in advance
19
5,202
4,653
5,551
5,149
4,654
5,551
12,711
10,620
13,940
12,577
10,609
13,903
181
244
248
181
244
248
4
4
4
4
4
4
185
248
252
185
248
252
Total liabilities
12,896
10,868
14,192
12,762
10,857
14,155
Net assets
71,409
74,112
72,770
71,020
76,071
74,430
Total current liabilities Non current liabilities Employee benefit provisions
21
Other non current liabilities Total non current liabilities
Equity Crown equity
22
39,332
39,332
39,332
39,332
39,332
39,332
Retained earnings
23
6,534
10,534
9,332
6,145
12,493
10,992
Reserves
24
25,543
24,246
24,106
25,543
24,246
24,106
71,409
74,112
72,770
71,020
76,071
74,430
Total equity The accompanying notes form part of these financial statements
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WELLINGTON INSTITUTE OF TECHNOLOGY
Statement of Cash Flows For the year ended 31 December 2013 GROUP
Note
PARENT
2013 Actual
2013 Budget
2012 Actual
2013 Actual
2013 Budget
2012 Actual
$000
$000
$000
$000
$000
$000
51,919
54,813
54,622
51,403
53,263
54,588
581
320
729
581
320
729
(48,996)
(48,500)
(49,522)
(48,390)
(47,146)
(48,191)
90
-
(196)
89
3,594
6,633
5,633
3,683
6,437
6,950
3,500
-
-
3,500
-
-
18
-
31
18
-
26
(3,713)
(11,525)
(9,120)
(3,696)
(11,452)
(9,120)
(96)
(446)
(394)
(96)
(425)
(258)
-
-
(3,653)
-
Net cash (used in)/provided by investing activities
(291)
(11,971)
(13,136)
(274)
(11,877)
(14,636)
Net (decrease)/increase in cash and cash equivalents
3,303
(5,338)
(7,503)
3,409
(5,440)
(7,686)
Cash and cash equivalents at the beginning of the financial year
8,711
11,802
16,214
8,495
11,581
16,181
12,014
6,464
8,711
11,904
6,141
8,495
Cash at bank and in hand
4,014
964
1,204
3,904
641
988
Term deposits - BNZ Bank
8,000
-
-
8,000
-
-
Term deposits - ASB Bank
-
-
2,007
-
-
2,007
Term deposits - Westpac
-
5,500
5,500
-
5,500
5,500
12,014
6,464
8,711
11,904
6,141
8,495
Cash flows from operating activities Receipts from customers Interest received Payments to suppliers and employees GST (net) Net cash provided by/(used in) operating activities
25
(176)
Cash flows from investing activities Maturity of term investment Receipts from sale of property,plant and equipment Purchase of property, plant and equipment Purchase of intangible assets Acquisition/roll over of investments
Cash and cash equivalents at the end of the financial year
25
(5,284)
Represented by:
The GST (net) component of operating activities reflects the net GST paid to and received from Inland Revenue. The GST (net) component has been presented on a net basis as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the presentation basis of the other primary financial statements. The accompanying notes form part of these financial statements 2013 ANNUAL REPORT
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Notes to the Financial Statements [1] STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2013
Reporting Entity Wellington Institute of Technology (WelTec) is a Crown Entity governed by the Crown Entities Act 2004 and the Education Act 1989. It provides full-time and part-time tertiary education in New Zealand. WelTec and Group consists of Wellington Institute of Technology and its subsidiaries WelTec Student Accommodation Limited (100% owned) and WelTec Connect Limited (100% owned). WelTec Connect Limited has a 43.15% interest in Le Cordon Bleu New Zealand Institute Limited Partnership which is equity accounted. WelTec also has a 50% interest in three unincorporated joint ventures - Cybus, Computer Power Plus, and W2 Shared Services all of which are equity accounted into the Group financial statements. The primary objective of WelTec and Group is to provide tertiary education services for the benefit of the community rather than making a financial return. The financial statements of WelTec and the Group are for the year ended 31 December 2013. The financial statements were authorised for issue by the Council on 16 April 2014.
Basis of Preparation Statement of Compliance The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand, and the requirements of the Crown Entities Act
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WELLINGTON INSTITUTE OF TECHNOLOGY
2004 and the Education Act 1989. Wellington Institute of Technology and the Group is a public benefit entity for the purpose of complying with generally accepted accounting practice in New Zealand (NZ GAAP). These financial statements have been prepared in accordance with NZ GAAP as appropriate for public benefit entities and they comply with NZ IFRS. Measurement base The financial statements have been prepared on a historical cost basis, except for land, buildings and plant, which have been measured at fair value. Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000), except where indicated. The functional currency of WelTec and Group is New Zealand dollars (NZ$). Changes in accounting policies There have been no changes in accounting policies during the financial year. Standards, amendments, and interpretations issued that are not yet effective and have not been early adopted The Minister of Commerce has approved a new Accounting Standards Framework (Incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this framework WelTec will be classified as a Tier 1 reporting entity and it will be required to apply full public sector Public Benefit Entity Accounting Standards (PAS) from 1
July 2014. This means WelTec expects to transition to new standards based on current International Public Sector Accounting Standards (IPSAS) in preparing its 31 December 2015 financial statements. In the interim public benefit entities are governed by NZ IFRS but any changes to NZ IFRS do not apply. WelTec does not expect there to be a major impact on the adoption of PAS, however there could be an impact on the recognition of non-exchange revenue.
Significant Accounting Policies Basis of consolidation The Group financial statements are prepared by adding together the like items of assets, liabilities, equity, income, expenses and cash flows on a line by line basis for all entities in the group. All significant intra-group balances, transactions, income, and expenses are eliminated in full on consolidation. Subsidiaries WelTec consolidates in the Group financial statements all entities where WelTec has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. Investments in subsidiaries are carried at cost in the WelTec parent entity financial statements and tested for impairment on an annual basis.
Associates and joint ventures WelTec’s associate and joint venture investments are accounted for in the Group financial statements using the equity method. An associate is an entity over which WelTec has significant influence and that is neither a subsidiary nor an interest in a joint venture. A joint venture is an entity over which WelTec has joint control. The investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the Group’s share of the profit or loss of the associate or joint venture after the date of acquisition. The Group’s share of the profit or loss is recognised in the Group profit or loss. Distributions received from an associate or joint venture reduce the carrying amount of the investment in the Group financial statements. If the share of losses of an associate or joint venture equals or exceeds an interest in the associate or joint venture, the Group discontinues recognising its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognised, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, the Group will resume recognising its share of those profits only after its share of the profits equals the share of losses not recognised. Where the Group transacts with an associate or joint venture, profit or losses are eliminated to the extent of the Group’s interest in the relevant associate. Investments in associates and joint ventures are carried at cost in the WelTec parent entity financial statements and tested annually for impairment. Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to WelTec and Group and the revenue can be reliably measured. The following specific criteria must also be met before revenue is recognised:
Government grants Government grants are recognised when eligibility to receive the grant has been established. For Student Component Funding, entitlement is established upon the withdrawal period for an individual’s course of study having passed. For project-based grants, entitlement is established upon the completion of agreed milestones. Student tuition fees Revenue from student tuition fees is recognised in the statement of comprehensive income on entitlement. Where funds have been received but not earned at balance date, an Income in Advance liability is recognised. Rendering of services Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract at balance date. Interest revenue Interest revenue is recognised on a timeproportionate basis that takes into account the effective yield on the financial asset. Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments net of lease inducements under an operating lease are recognised as an expense on a straight-line basis over the lease term. Foreign Currency Translation Foreign exchange transactions are translated into NZ$ (the functional currency) using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.
Receivables Trade receivables, student receivables and other receivables are recorded at their amortised cost, less any provision for impairment. Other Financial Assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through profit or loss in which case the transaction costs are recognised in the profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and WelTec and the Group has transferred substantially all the risks and rewards of ownership. Financial assets are classified into the following categories for the purposes of measurement: • Loans and receivables • Investments Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. Related party receivables that are repayable on demand are classified as a non-current asset because repayment of the receivable is not expected within 12 months of balance date. Investments Investments represent shareholdings that are held for strategic purposes. They are included in non-current assets unless management intend to realise the investment within 12 months of balance date. Investments are initially recognised at cost, being the fair value of the consideration given. After the initial recognition, investments are measured at cost as fair value cannot be determined.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. 2013 ANNUAL REPORT
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Impairment of Financial Assets At each balance date, WelTec and Group assesses whether there is any objective evidence that a financial assets or group of financial assets is impaired. Any impairment losses are recognised in the profit or loss. Loans and receivables Impairment of a loan or a receivable is established when there is objective evidence that WelTec and Group will not be able to collect amounts due. Significant financial difficulties of the debtor, and probability that the debtor will enter into liquidation or default on payments are considered indicators that the asset is impaired. For debtors and other receivables the carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the profit or loss. When the receivable is uncollectable, it is written off against the allowance account. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Investments A significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. Alternatively if the investment’s operation is entering significant financial difficulties, the probability that the investment will enter into receivership or liquidation, or default on payments, are considered objective indicators that the asset is impaired. Inventories Inventories held for distribution or consumption in the provision of services that are not supplied in a commercial basis are measured at cost (using the FIFO method), adjusted when applicable, for any loss of service potential. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the profit or loss in the period of the write-down.
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Property, Plant and Equipment Land and buildings Land and buildings are measured at fair value. Fair value is determined on the basis of an annual independent valuation prepared by registered valuers. Land values are based on discounted cash flows or capitalisation of net income (as appropriate). Buildings are valued based on depreciated replacement cost. This methodology is an acceptable estimate of fair value due to the lack of market-based evidence for education delivery purposes. Any revaluation increase arising on the revaluation of land and buildings is credited to the appropriate revaluation reserve, except to the extent that it reverses a revaluation decrease for the same class of asset previously recorded as an expense in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve. Plant Plant is measured at fair value. Fair value is determined on the basis of a three yearly independent valuation prepared by registered valuers based on discounted cash flows. Any revaluation increase arising on the revaluation of plant is credited to the appropriate revaluation reserve, except to the extent that it reverses a revaluation decrease for the same class of asset previously recorded as an expense in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of plant is charged as an expense in the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve.
Other property and equipment All other property 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 WelTec and Group and the cost of the item can be measured reliably. An item of property and equipment is stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of the acquisition. Assets under construction Assets under construction are disclosed separately. Upon completion, the asset’s total cost is transferred to the appropriate asset class, at which point depreciation begins. Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the profit or loss. When revalued assets are sold, the amounts included in revaluation reserves in respect of those assets are transferred to general funds. Depreciation Depreciation has been provided on all property, plant and equipment, excluding land. Depreciation is calculated on a straightline basis, at rates that expense the assets’ cost (or valuation) to their estimated residual values over their useful life. The useful life of each class of asset is as follows: Buildings Leasehold Improvements Plant Equipment Furniture and Fittings Library Collection Hardware
10 - 50 years 2 - 15 years
2% - 10% 7% - 50%
3 - 30 years 3 - 5 years 5 years
3% - 33% 20% - 33% 20%
5 years
20%
3 years
33%
Leasehold improvements are depreciated over the unexpired period of the lease. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. Intangible Assets Intellectual property costs Development costs for new intellectual property internally developed or acquired which have a benefit of more than one year have been capitalised. Such costs are expected to be recovered, and are amortised on a straight-line basis over the period of their expected useful lives, being three years. Software All software purchased or created by WelTec and Group which have a benefit of more than one year have been capitalised. Such costs are expected to be recovered, and are amortised on a straight-line basis over the period of their expected useful lives, being three years. Assets under construction Course development and software assets under construction are treated as an intangible asset until completion. Upon completion of a project, the total cost is transferred to the appropriate asset class, at which point amortisation begins. Impairment of Property, Plant, and Equipment and Intangible Assets Assets are reviewed for indicators of impairment at each balance date and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When there is an indicator of impairment, the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value, using a discount rate that reflects current market assessments of the time value of money.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written-down to the recoverable amount. For revalued assets the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the appropriate revaluation reserve. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the profit or loss. For assets not carried at a revalued amount, the total impairment loss is recognised in the profit or loss. The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the applicable revaluation reserve, unless an impairment loss was previously recognised in the profit or loss, in which case the reversal of the impairment loss is also recognised in the profit or loss. For assets not carried at revalued amount the reversal of an impairment loss is recognised in the profit or loss. Payables Trade payables and other accounts payable are recognised when WelTec and Group becomes obliged to make future payments resulting from the purchase of goods and services. Employee Benefits Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service 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. A liability for sick leave is recognised to the extent that 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 historical average amount of additional days used by staff to cover those future absences.
A liability and an expense is recognised for bonuses, where there is a contractual obligation. Long term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders the related service, such as long service leave and retirement leave have been calculated on an actuarial basis. The calculations are based on: • Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlement information; and • The present value of the estimated future cash flows. Expected future payments are discounted using the official cash rate. The inflation factor is based on the expected long-term increase in remuneration for employees. Presentation of employee entitlements Sick leave, annual leave, long service leave and retirement leave expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability. Superannuation Schemes Defined contribution schemes such as employer contributions to KiwiSaver, the Government Superannuation Scheme and other such superannuation schemes are accounted for as defined contribution schemes and are recognised as an expense in the profit or loss when incurred. Equity Equity, being the difference between total assets and total liabilities reflects the Crown’s interest in WelTec and Group. This public equity is disaggregated and classified into a number of reserves to enable clearer identification of the specific uses/sources of accumulated funds. The components of equity are: • Crown equity • Retained earnings • Reserves 2013 ANNUAL REPORT
| 85
Reserves WelTec and Group has an asset revaluation reserve which has been generated by the revaluation of plant, land and buildings, as outlined in the Property, Plant and Equipment policy. Goods and Services Tax All items in the financial statements are stated exclusive of goods and services tax (GST), except for trade and other receivables and trade and other payables, which are presented on a GST-inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.
Critical accounting estimates and assumptions
Critical judgements in applying accounting policies
In preparing these financial statements, WelTec and Group has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2013:
The net amount of GST recoverable from, or payable to Inland Revenue is included as part of receivables or payables in the balance sheet.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
The net GST paid to, or received from Inland Revenue, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the statement of cash flows.
Land, buildings and plant valuation Note 16 provides information about the estimates and assumptions exercised in the measurement of revalued land, buildings and plant.
Commitments and contingencies are disclosed exclusive of GST.
Retirement leave Note 21 provides information about the estimates and assumptions exercised in the measurement of retirement leave.
Income Tax Tertiary institutions are exempt from payment of income tax, as they are treated by the Inland Revenue Department as charitable organisations. Accordingly, no income tax is provided for. Budget Figures The budget figures are those approved by the Council at the beginning of the financial year. The budget figures have been prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements. Cost of Services WelTec and Group has presented an analysis of its cost of services on the face of the statement of comprehensive income and within the notes to the accounts utilising a classification based on the underlying nature of the expenses.
86 |
WELLINGTON INSTITUTE OF TECHNOLOGY
Crown-owned land and buildings Crown-owned land and buildings are included as part of WelTec and Group’s property, plant and equipment. Although legal title has not been transferred, the Crown has vested all the normal risks and rewards of ownership to WelTec and Group. Restrictions on disposal of these Crown owned land and buildings are in place, as per section 192 of the Education Act 1989. Distinction between revenue and capital contributions Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, WelTec and Group accounts for the funding as an equity injection directly in equity. Information about equity injections recognised in equity is disclosed in note 22.
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
24,712
26,531
24,712
26,531
224
222
224
222
Youth Guarantee
1,597
1,374
1,597
1,374
Trades Academy
1,234
987
1,234
987
Equity funding
309
325
309
325
Other funding
461
790
266
541
28,537
30,229
28,342
29,980
Domestic students
11,663
12,043
11,663
12,043
International students
5,768
5,095
5,768
5,095
680
601
673
601
18,111
17,739
18,104
17,739
2,732
2,763
2,732
2,763
84
370
81
370
2,816
3,133
2,813
3,133
1,770
2,009
1,575
1,657
911
1,140
871
957
13
-
13
-
574
698
574
698
3,268
3,847
3,033
3,312
1,584
1,566
1,565
1,556
27,961
28,409
27,419
27,855
Defined contribution plan employer contributions
605
435
603
435
Associated personnel expenses
508
624
502
623
30,658
31,034
30,089
30,469
[2] GOVERNMENT GRANTS Student Achievement Component Adult & Community Education
[3] TUITION FUNDING
Other fees
[4] OTHER TEACHING Contract students Contract income
[5] OTHER INCOME Trading income Other income Profit on disposal of assets Finance income
[6] PERSONNEL Key Management Compensation: Short term employee benefits Staff Compensation: Short term employee benefits
2013 ANNUAL REPORT
| 87
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
$000
$000
$000
2012 Actual
5,817
6,925
5,727
6,462
Council fees
103
86
100
86
Non personnel research expense
371
74
88
74
3
5
-
5
Doubtful debts
69
(241)
54
(243)
Remuneration of external auditors
152
87
144
82
6,515
6,936
6,113
6,466
Information & computer technology
964
764
958
758
Insurance
839
841
839
841
-
46
-
51
Operating leases
2,382
2,069
2,347
2,045
Occupancy
2,307
2,084
2,304
2,081
6,492
5,804
6,448
5,776
Depreciation
4,422
4,534
4,412
4,532
Amortisation
524
531
524
531
4,946
5,065
4,936
5,063
Students First - joint expenses with Whitireia
(213)
(253)
(213)
(253)
Students First - WelTec campus development
(246)
-
(246)
-
Redundancies
(404)
(429)
(379)
(429)
118
(125)
118
(125)
(139)
-
(4,281)
-
Related Party WelTec Connect Limited loan forgiven
-
-
(228)
-
Impairment of LCBNZI Limited Partnership (note 14)
(781)
-
-
-
(9)
-
(9)
-
(1,674)
(807)
(5,238)
(807)
$000
[7] ADMINISTRATION Administrative expenditure
Bad debts expense
[8] INFRASTRUCTURE
Loss on disposal of assets
[9] DEPRECIATION & AMORTISATION
[10] NON OPERATING ITEMS
Gain/(loss) on revaluation of N Block Impairment of WelTec Connect Limited (notes 13,33)
Impairment of PINZ shares (note 15)
88 |
WELLINGTON INSTITUTE OF TECHNOLOGY
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
Student receivables
4,350
4,723
4,350
4,723
Trade receivables
1,808
1,832
1,832
1,489
192
949
194
1,002
(332)
(338)
(318)
(336)
6,018
7,166
6,058
6,878
[11] TRADE AND OTHER RECEIVABLES
Related party receivables (note 33) less provision for impairment
Fair value Student fees are due before a course commences or upon enrolment if the course has already begun. Student fee receivables are non-interest bearing and are generally paid in full by course commencement date. Therefore, their carrying value approximates their fair value. Other receivables are non-interest bearing and are generally settled on 30-day terms. Therefore the carrying value of other receivables approximates their fair value. The ageing profile of student receivables as at year end is detailed below.
Not past due
3,921
4,083
3,921
4,083
Past due 1 – 30 days
2
1
2
1
Past due 31 – 60 days
77
29
77
29
Past due 61 – 90 days
9
94
9
94
Past due over 90 days
341
516
341
516
4,350
4,723
4,350
4,723
All receivables greater than 30 days in age are considered to be past due. There are provisions for impairment on receivables with overdue amounts. Due to the large number of student fee receivables, the impairment assessment is performed on a collective basis, based on an analysis of past collection history and debt write-offs. Movements in the provision for impairment of receivables are as follows: At 1 January Provisions reversed during the year Bad debts written off against provision during the year Provision released/(additional provision made) during the year At 31 December
(338)
(669)
(336)
(669)
-
-
-
-
75
90
72
90
(69)
241
(54)
243
(332)
(338)
(318)
(336)
2013 ANNUAL REPORT
| 89
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
19
17
19
17
19
17
19
17
-
-
-
4,281
-
-
-
4,281
[12] INVENTORY Finished goods - at cost
[13] INVESTMENT IN SUBSIDIARY Share in WelTec Connect Limited
The investment in WelTec Connect Limited and loans provided to this subsidiary were fully impaired in 2013 (refer to note 10). With revenue generation consistently below budgeted levels, the WelTec Council as shareholder decided on 11 December 2013 to cease trading as a separate legal entity on 31 December 2013. Contractual obligations have been thoroughly analysed with on-going commitments beyond 2013 to be re-negotiated with creditors with accountability transferred to WelTec in 2014. This will allow WelTec Connect to be removed from the Companies register in 2014 consistent with s318 (1) (d) of the Companies Act 1993 - as it will have ceased to carry on business, discharged in full liabilities to all its known creditors, and has distributed its surplus assets in accordance with its constitution and the Act. As at 31 December WelTec Connect Limited continued to hold the Group’s investment within Le Cordon Bleu New Zealand Limited Partnership and LCB Management NZ Limited. These holdings will be transferred to the WelTec parent in 2014 prior to the company being removed from the Companies register. Refer note 14. During 2013 WelTec established WelTec Student Accommodation Limited, a 100% owned subsidiary. The purpose of this subsidiary is to operate student accommodation services on behalf of WelTec at premises located at 222 Willis Street, Wellington. The share in this company at 31 December was held within WelTec Connect Limited. As with Le Cordon Bleu holdings, this will transfer to WelTec parent in 2014.
90 |
WELLINGTON INSTITUTE OF TECHNOLOGY
2013 Actual
2012 Actual
$000
$000
[14] INVESTMENT IN ASSOCIATE AND JOINTLY CONTROLLED ENTITIES Investment in Associate (Parent and Group) MotorTrain Limited
-
-
-
-
MotorTrain Limited is a shell company in which WelTec holds a 25% interest. No transactions were incurred during the year. Investment in jointly controlled entities Le Cordon Bleu New Zealand Institute Limited Partnership WelTec Connect Limited holds the Group’s investment in Le Cordon Bleu New Zealand Institute (LCBNZI), being a 43.15% investment in the Le Cordon Bleu New Zealand Institute Limited Partnership and a 33.3% shareholding in LCB Management NZ Limited, the General Partner of the Limited Partnership. WelTec and LCBNZI jointly developed premises in the Regent Centre, lower Cuba Street in Wellington City. WelTec’s School of Hospitality and the LCBNZI Cuisine School co-locate in this facility. Academic delivery commenced in September 2012. During 2013 the entity undertook a review to right size its operation in light of student numbers. Financial forecasting for the next two years highlight that the current carrying amount of $781,000 is higher than its recoverable amount. Based on this the investment has been impaired in 2013. Parent and Group Investment in Le Cordon Bleu New Zealand Institute Limited Partnership
-
1,792
Impairment loss on investment in Le Cordon Bleu New Zealand Institute Limited Partnership
(781)
-
110
59
Non current assets
2,391
2,650
Total Assets
2,501
2,709
(1,637)
(824)
(83)
(93)
(1,720)
(917)
1,051
164
Expenses
(2,062)
(1,072)
Profit/(Loss)
(1,011)
(908)
-
-
2,334
2,558
Assets Current assets
Liabilities Current liabilities Non current liabilities Total liabilities Income
Share of joint venture's contingent liabilities Share of joint venture's commitments
2013 ANNUAL REPORT
| 91
Cybus WelTec and Universal College of Learning (UCOL) have a 50% interest in a joint venture, Cybus, which undertakes academic and support services on contract to the Le Cordon Bleu New Zealand Institute Limited Partnership. The following amounts represent the group’s share of the assets, liabilities, income and expenses of the joint venture:
2013 Actual $000
2012 Actual $000
Group Investment in Cybus
-
-
Current assets
149
157
Total assets
149
157
Current liabilities
(149)
(157)
Total liabilities
(149)
(157)
Income
1,536
825
(1,536)
(825)
Profit/(Loss)
-
-
Share of joint venture's contingent liabilitiesÂ
-
-
Share of joint venture's commitments
-
-
Assets
Liabilities
Expenses
92 |
WELLINGTON INSTITUTE OF TECHNOLOGY
Computer Power Plus WelTec and Whitireia Community Polytechnic have a 50% interest in a joint venture, Computer Power Plus, which undertakes academic and support services on contract to Whitireia New Zealand Limited. The following amounts represent the group’s share of the assets, liabilities, income and expenses of the joint venture:
2013 Actual
2012 Actual $000
$000
Parent Investment in Computer Power Plus
140
140
577
356
632
703
73
111
705
814
Current liabilities
(128)
(458)
Total liabilities
(128)
(458)
Income
2,443
1,964
(2,222)
(1,748)
221
216
-
-
531
149
Group Investment in Computer Power Plus Assets Current assets Non current assets Total assets Liabilities
Expenses Profit/(Loss) Share of joint venture's contingent liabilities Share of joint venture's commitments
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
-
3,500
-
3,500
5
14
5
14
5
3,514
5
3,514
[15] OTHER FINANCIAL ASSETS Current Term deposits with maturities greater than 3 months and remaining duration less than 12 months Non current Unlisted shares - in Polytechnics International New Zealand Limited (PINZ)
Unlisted Shares Unlisted shares are held in non-commercial entities and are carried at cost less impairment. The investment within PINZ has been impaired in 2013 based on an offer to purchase the shares provided by Waikato Institute of Technology, which is looking to acquire a 100% shareholding in this company. Based on information provided by PINZ to WelTec as shareholder it is WelTec’s intention to accept this purchase offer in 2014. 2013 ANNUAL REPORT
| 93
[16] PROPERTY, PLANT AND EQUIPMENT GROUP 2013 $000
Land & Buildings
Leasehold Improvement
Plant
Equipment
Hardware
Furniture & Fittings
Library Collection
Assets under Construction
TOTAL
50,385
10,259
4,109
1,503
8,801
2,228
1,921
877
80,083
Additions
2,112
402
111
186
558
124
132
87
3,712
Disposals
-
(64)
(210)
(407)
(181)
(14)
-
-
(876)
Reclassifications
811
48
(161)
154
(33)
58
-
(877)
-
Net revaluation increments/ decrements
341
-
(1,535)
-
-
-
-
-
(1,194)
53,649
10,645
2,314
1,436
9,145
2,396
2,053
87
81,725
-
3,418
1,248
1,110
6,508
1,932
1,408
-
15,624
1,154
628
624
217
1,444
146
209
-
4,422
Disposals
-
(64)
(81)
(407)
(174)
(13)
-
-
(739)
Reclassifications
-
-
(67)
-
30
31
6
-
-
(1,154)
-
(1,724)
-
-
-
-
-
(2,878)
-
3,982
-
920
7,808
2,096
1,623
-
16,429
Net Book Value
53,649
6,663
2,314
516
1,337
300
430
87
65,296
PARENT 2013 $000
Land & Buildings
Leasehold Improvement
Plant
Equipment
Hardware
Furniture & Fittings
Library Collection
Assets under Construction
TOTAL
50,385
10,259
4,100
1,503
8,798
2,228
1,921
877
80,071
2,112
402
111
186
558
124
132
71
3,696
(64)
(201)
(407)
(178)
(14)
48
(161)
154
(33)
58
Gross Carrying Amount Balance as at 1 January
Balance as at 31 December Accumulated Depreciation Balance as at 1 January Depreciation Expense
Net revaluation increments/ decrements Balance as at 31 December
Gross Carrying Amount Balance as at 1 January Additions Disposals Reclassifications
811
Net revaluation increments/ decrements
341
Balance as at 31 December
(864) (877)
(1,535)
(1,194)
53,649
10,645
2,314
1,436
9,145
2,396
2,053
71
81,709
-
3,418
1,247
1,110
6,507
1,932
1,408
-
15,622
1,154
628
622
217
1,436
146
209
-
4,412
Disposals
-
(64)
(78)
(407)
(172)
(13)
-
-
(734)
Reclassifications
-
-
(74)
-
37
31
6
-
-
(1,154)
-
(1,717)
-
-
-
-
-
(2,871)
-
3,982
-
920
7,808
2,096
1,623
-
16,429
53,649
6,663
2,314
516
1,337
300
430
71
65,280
Accumulated Depreciation Balance as at 1 January Depreciation Expense
Net revaluation increments/ decrements Balance as at 31 December Net Book Value
94 |
WELLINGTON INSTITUTE OF TECHNOLOGY
GROUP 2012 $000
Land & Buildings
Leasehold Improvement
Plant
Equipment
Hardware
Furniture & Fittings
Library Collection
Assets under Construction
TOTAL
50,517
3,286
3,995
1,589
9,343
2,117
1,724
1,982
74,553
Additions
1,474
5,188
139
229
973
115
197
878
9,193
Disposals
-
-
(54)
(331)
(1,537)
(4)
-
-
(1,926)
85
1,785
29
16
-
-
-
(1,869)
46
Net revaluation increments/ decrements
(1,691)
-
-
-
22
-
-
(114)
(1,783)
Balance as at 31 December
50,385
10,259
4,109
1,503
8,801
2,228
1,921
877
80,083
-
3,274
642
1,318
6,281
1,710
1,189
-
14,414
1,471
144
630
144
1,700
226
219
-
4,534
Disposals
-
-
(24)
(335)
(1,490)
(4)
-
-
(1,853)
Reclassifications
-
-
-
(17)
17
-
-
-
-
(1,471)
-
-
-
-
-
-
-
(1,471)
-
3,418
1,248
1,110
6,508
1,932
1,408
-
15,624
Net Book Value
50,385
6,841
2,861
393
2,293
296
513
877
64,459
PARENT 2012 $000
Land & Buildings
Leasehold Improvement
Plant
Equipment
Hardware
Furniture & Fittings
Library Collection
Assets under Construction
TOTAL
50,517
3,286
3,995
1,589
9,343
2,117
1,724
1,982
74,553
Additions
1,474
5,188
130
229
970
115
197
878
9,181
Disposals
-
-
(54)
(331)
(1,537)
(4)
-
-
(1,926)
85
1,785
29
16
-
-
-
(1,869)
46
Net revaluation increments/ decrements
(1,691)
-
-
-
22
-
-
(114)
(1,783)
Balance as at 31 December
50,385
10,259
4,100
1,503
8,798
2,228
1,921
877
80,071
-
3,274
642
1,318
6,281
1,710
1,189
-
14,414
1,471
144
629
144
1,699
226
219
-
4,532
Disposals
-
-
(24)
(335)
(1,490)
(4)
-
-
(1,853)
Reclassifications
-
-
-
(17)
17
-
-
-
-
(1,471)
-
-
-
-
-
-
-
(1,471)
-
3,418
1,247
1,110
6,507
1,932
1,408
-
15,622
50,385
6,841
2,853
393
2,291
296
513
877
64,449
Gross Carrying Amount Balance as at 1 January
Reclassifications
Accumulated Depreciation Balance as at 1 January Depreciation Expense
Net revaluation increments/ decrements Balance as at 31 December
Gross Carrying Amount Balance as at 1 January
Reclassifications
Accumulated Depreciation Balance as at 1 January Depreciation Expense
Net revaluation increments/ decrements Balance as at 31 December Net Book Value
2013 ANNUAL REPORT
| 95
Land and buildings carried at fair value An independent valuation of the land and buildings was performed by Darroch Limited, registered independent valuers as at 31 December 2013. Land fair value is determined by reference to market-based evidence being the amount for which the assets could be exchanged between a knowledgeable willing buyer and seller in an arm’s length transaction. Reference has been made to the best use of the land on an “unencumbered” basis, adjusted for designations against the land or the use of the land is restricted because of reserve or endowment status. Specialist buildings are valued at fair value using depreciation replacement cost methodology. This methodology is an acceptable estimate of fair value due to the lack of market-based evidence for education delivery purposes. Restrictions on title Under the Education Act 1989, WelTec and Group is required to obtain the consent from the Ministry of Education to dispose or sell of property where the value of the property exceeds an amount determined by the Minister. There are also various restrictions in the form of historic designations, reserve, and endowment encumbrances attached to the land. WelTec and Group does not consider it practical to disclose in detail the value of land subject to these restrictions. Plant carried at fair value An independent valuation of plant was performed by Forbes Valuation, a registered independent valuer as at 31 December 2013. This valuation was undertaken for all plant used in the delivery and support of education outcomes provided by WelTec using market based information.
[17] INTANGIBLE ASSETS 2013
GROUP $000
2012
Software
Intellectual Property
Assets under Construction
TOTAL
Software
Intellectual Property
Assets under Construction
TOTAL
2,353
1,750
255
4,358
2,108
1,827
146
4,081
Additions
1
30
119
150
156
-
244
400
Disposals
-
-
(190)
(190)
-
(77)
-
(77)
19
100
(119)
-
89
-
(135)
(46)
-
-
-
-
-
-
-
-
2,373
1,880
65
4,318
2,353
1,750
255
4,358
Balance as at 1 January
1,997
1,421
-
3,418
1,753
1,211
-
2,964
Amortisation Expense
260
264
-
524
244
287
-
531
Disposals
-
-
-
-
-
(77)
-
(77)
Reclassifications
-
-
-
-
-
-
-
-
Net revaluation increments/ decrements
-
-
-
-
-
-
-
-
2,257
1,685
-
3,942
1,997
1,421
-
3,418
116
195
65
376
356
329
255
940
Gross Carrying Amount Balance as at 1 January
Reclassifications Net revaluation increments/ decrements Balance as at 31 December Accumulated Depreciation
Balance as at 31 December Net Book Value
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2013
PARENT $000
2012
Software
Intellectual Property
Assets under Construction
TOTAL
Software
Intellectual Property
Assets under Construction
TOTAL
2,353
1,750
119
4,222
2,108
1,827
135
4,070
Additions
1
30
65
96
156
-
119
275
Disposals
-
-
-
-
-
(77)
-
(77)
19
100
(119)
-
89
-
(135)
(46)
-
-
-
-
-
-
-
-
2,373
1,880
65
4,318
2,353
1,750
119
4,222
Balance as at 1 January
1,997
1,421
-
3,418
1,753
1,211
-
2,964
Amortisation Expense
260
264
-
524
244
287
-
531
Disposals
-
-
-
-
-
(77)
-
(77)
Reclassifications
-
-
-
-
-
-
-
-
Net revaluation increments/ decrements
-
-
-
-
-
-
-
-
2,257
1,685
-
3,942
1,997
1,421
-
3,418
116
195
65
376
356
329
119
804
Gross Carrying Amount Balance as at 1 January
Reclassifications Net revaluation increments/ decrements Balance as at 31 December Accumulated Depreciation
Balance as at 31 December Net Book Value
There are no restrictions over the title of WelTec or Group’s intangible assets, nor are any intangible assets pledged as security for liabilities. GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
3,914
4,417
3,833
4,405
946
805
946
803
4,860
5,222
4,779
5,208
[18] TRADE AND OTHER PAYABLES Trade payables Goods and services tax (GST) payable
Trade payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of payables approximates their fair value.
[19] INCOME IN ADVANCE Student income in advance Other income in advance
4,600
4,840
4,600
4,840
602
711
549
711
5,202
5,551
5,149
5,551
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GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
795
957
795
950
1,583
1,961
1,583
1,945
Current long service leave
56
-
56
-
Sick leave
215
249
215
249
2,649
3,167
2,649
3,144
[20] CURRENT EMPLOYEE BENEFIT PROVISIONS Accrued employee payments Annual and discretionary leave
A provision is recognised for post employment benefits payable to employees. Employees are entitled to annual leave pay, long service leave and retirement leave pay. Annual leave and sick leave entitlements expected to be settled within 12 months of the balance date are measured at the current rates of pay and classified as current liabilities.
[21] NON CURRENT EMPLOYEE BENEFIT PROVISIONS Long Service leave Retirement leave
107
142
107
142
74
106
74
106
181
248
181
248
Entitlements related to long service leave and retirement leave have been calculated at the present value of future cash flows determined on an actuarial basis and classified as non-current liabilities. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability. Expected future payments are discounted using forward discount rates as provided by the Treasury. The salary inflation factor has been determined after considering historical salary inflation patterns and referencing the Treasury time series of Fiscal and Economic Indicators. If the salary inflation factor were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be an estimated $6,000 higher/lower. If the discount rate used were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be an estimated $5,000 higher/lower.
[22] CROWN EQUITY Opening balance Equity Injection Closing balance
39,332
39,332
39,332
39,332
-
-
-
-
39,332
39,332
39,332
39,332
Crown Equity represents the total investment the Crown has in WelTec. It is comprised of two components, Notional Equity - the carrying value of Crown-owned land and buildings at the date the Crown vested all the normal risks and rewards of ownership to WelTec, and Received Equity - actual cash payments received.
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Capital Management WelTec and Group’s capital is its equity, which comprises its Crown equity noted above, retained earnings (note 23) and reserves (note 24). Equity is represented by net assets. WelTec is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings, and borrowing. WelTec manages its revenues, expenses, assets, liabilities and general financial dealings prudently and in a manner that promotes the current and future interests of the community. WelTec’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings. The objective of managing WelTec’s equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.
GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
9,332
9,647
10,992
10,212
(2,798)
(315)
(4,847)
780
6,534
9,332
6,145
10,992
24,106
24,245
24,106
24,245
1,437
(139)
1,437
(139)
25,543
24,106
25,543
24,106
[23] RETAINED EARNINGS Opening balance (Loss)/profit Balance at end of financial year
[24] RESERVES Opening balance Revaluation (decrements)/increments Balance at end of financial year
These reserves have been generated by the revaluation of land and buildings undertaken by Darroch Limited on an annual basis, and the revaluation of plant on a three yearly basis undertaken most recently by Ewan Forbes, registered Plant and Machinery Valuer in 2013 (see note 16).
[25] NOTES TO THE CASH FLOW STATEMENT (a) Reconciliation of cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and term investments in money market instruments, net of outstanding bank overdrafts. The carrying value of cash at bank, call deposits and term deposits < 90 days approximates their fair value. Cash and cash equivalents at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows: Cash and cash equivalents: Operating Funds
50
8,711
(60)
8,495
11,964
-
11,964
-
12,014
8,711
11,904
8,495
Designated Funds: - Campus Development
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GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
(b) Reconciliation of profit for the period to net cash flows from operating activities (Loss)/profit for the period
(2,798)
(315)
(4,847)
780
Depreciation and amortisation of non current assets
4,946
5,065
4,939
5,063
Doubtful debts (write-back)/expense
69
(241)
54
(243)
3
5
-
5
(13)
46
(13)
51
Loss/(gain) on revaluation of non current assets
(118)
104
(118)
104
Rent holiday
(55)
236
(55)
236
Impairment of investments
980
-
4,290
-
Share of associate loss
790
692
-
-
Decrease/(increase) in receivables
1,079
49
1,088
1,744
Decrease/(increase) in inventories
(2)
289
(2)
289
8
4
8
4
(Decrease)/increase in payables
(370)
(101)
(704)
(886)
Increase/(decrease) in employee entitlements
(577)
332
(556)
335
(Decrease)/increase in income in advance
(348)
(532)
(401)
(532)
Net cash from operating activities
3,594
5,633
3,683
6,950
Add/(less) non-cash items:
Bad debts expense (Gain)/loss on sale or disposal of non current assets
Add/(less) movements in working capital items:
Decrease/(increase) in prepayments
[26] EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET Statement of comprehensive income WelTec Parent â&#x20AC;˘ WelTec parent completed 2013 with an operating profit of $0.4m. This was $1m less than budget, and represented a return on income of 0.7% compared to the 2.6% budgeted. Income sourced from TEC was $1.6m less than 2012 principally reflecting reduced funding for level 1 and 2 delivery. â&#x20AC;˘ While WelTec exceeded our EFTS budget there were significant differences in the type of delivery in 2013. ITO and full fee student demand was higher than budget, while domestic student demand was not as strong as 2012. This resulted in less Government and Tuition funding being generated in 2013 than was planned. WelTec continues to discuss the complexity of the funding rules associated with Investment Plan funds with the TEC as the benchmarking of delivery against historical volumes is overly restrictive. WelTec continue to lobby the TEC for a different approach to funding.
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WELLINGTON INSTITUTE OF TECHNOLOGY
• Cost of Services at the total level finished 2013 slightly favourable to budget. Within the different categories of expenditure two key variances exist: - Personnel finished the year unfavourable to budget, with a number of new SAC Level 3 and above programmes having been introduced during the year to ensure WelTec achieved the required minimum thresholds to retain baseline TEC Investment Plan funding. These programmes required new staff and additional course delivery costs to be incurred. - Depreciation & Amortisation generated a favourable variance for the year. This reflected the timing of campus development activities being significantly different to the budget profile. • Non-Operating Items within the parent accounts is dominated by the unbudgeted impairment of the WelTec Connect Limited investment. Key variances within subsidiaries and jointly controlled entities
• As stated in Note 13 WelTec Connect Limited did not achieve the planned revenue diversification and growth in 2013 and as a consequence of this the WelTec Council as shareholder decided in December to cease trading of this subsidiary. WelTec Connect Limited finished 2013 with an operating loss of $0.7m, and a loss after non operating items (but before Le Cordon Bleu share of loss) of $1.4m. • Computer Power Plus achieved another solid financial result in 2013 with a profit of $0.4m, which was a favourable variance to budget. WelTec recognised 50% of this result as per our joint venture agreement with Whitireia Community Polytechnic. • Le Cordon Bleu New Zealand Institute Limited Partnership did not meet budgeted student numbers in 2013 which meant the financial performance was unfavourable. Balance sheet Cash and cash equivalents as in other years have finished 2013 higher than budget. This is principally due to campus development activities not progressing as per budgeted timeframes, and consequently property, plant and equipment is unfavourable to budget. Campus Development was a key project within the Students First strategic partnership with Whitireia during 2013, with the Council approving a 10-year Combined Programme of Work in November. Trade receivables ended the year higher than budget due to ITO delivery contracts exceeding budgeted levels, particularly within Automotive and Painting and Decorating programmes. Investments in subsidiary and investments in associates and jointly controlled entities finished the year lower than budget due to the decision to cease trading within WelTec Connect Limited, and the impairment of Le Cordon Bleu New Zealand Institute as noted above. TEC funding recoveries were not factored into the 2013 budget. Due to Investment Plan funding conditions not being met for Priority Trades and Priority Engineering, along with Trades Academy student numbers not reaching budgeted levels, a substantial funding recovery has been provided for in 2013, which has resulted in trade and other payables exceeding budget. Statement of cash flows The WelTec Group achieved a net increase in cash and cash equivalents during 2013. The key reason for this was the lower than planned expenditure on investing activities - principally campus development. Operating activities performed below budgeted expectations – with less cash inflows due to lower student numbers, and more cash outflows due to additional programmes being delivered to meet industry demand and help WelTec achieve the required Investment Plan funding conditions for SAC funding.
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[27] STUDENT SERVICES FEE SUMMARY The following statement of income and expenditure reflects the activity WelTec in consultation and partnership with student representatives has completed in 2013 utilising in part funding provided by Student Services Fees: GROUP AND PARENT
2013 Actual
2012 Actual
$000
$000
523
405
Advocacy and legal advice
171
29
Careers information
94
2
364
293
Employment information
57
-
Financial support and advice
39
64
Health services
9
-
Media
2
1
Clubs and societies
5
3
56
13
797
405
(274)
-
Income
Expenses
Counselling services & pastoral care
Sports, recreation & cultural activities
Trading loss
[28] TE WHARE AKO FINANCIAL SUMMARY Te Whare Ako is a Business Unit within WelTec providing early childhood education services. WelTec holds a separate licence from the Ministry of Education for the provision of these services. This financial summary does not reflect occupancy costs or depreciation on buildings and equipment used by the unit. Income Government grants
424
454
ISS subsidy
84
91
Childcare fees
115
90
4
1
627
636
Employee benefits
509
492
Other direct costs
21
22
530
514
97
122
Other fees
Expenses
Trading loss
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WELLINGTON INSTITUTE OF TECHNOLOGY
[29] COMMITMENTS
GROUP AND PARENT
(a) Capital expenditure commitments Buildings Equipment Hardware Furniture & fittings
160
-
-
110
109
195
42
6
311
311
(b) Lease commitments Non cancellable operating lease commitments are disclosed in note 30 to the financial statements.
[30] LEASES (a) Leasing arrangements WelTec and Group enters into operating leases for buildings and vehicles: - Building premises are leased for WelTec satellite delivery offices in Auckland and Christchurch, and for WelTec delivery in Wellington city. A number of premises are also leased around the central Petone campus. The length of terms of these leases vary from under 12 months to 12 years, with rights to renewal on a number of contracts. - WelTec Student Accommodation Limited has entered into a lease for the building located at 222 Willis Street, Wellington. The initial lease term is for 15 years with further rights to renewal included within the contract. - Vehicles are leased over 3 - 5 year terms depending on the type of vehicle concerned. GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
Not longer than 1 year
3,892
2,062
2,142
2,062
Between 1 and 5 years
12,812
6,443
4,812
6,443
Longer than 5 years
23,590
3,340
3,340
3,340
40,294
11,845
10,294
11,845
(b) Non-cancellable operating lease payments
[31] CONTINGENT LIABILITIES As disclosed in Note 14 WelTec is a partner in the Le Cordon Bleu New Zealand Institute Limited Partnership. The Partnership has negotiated a $3m loan facility with the Bank of New Zealand. The purpose of the loan is to complete the fit-out of the facility and provide working capital. The WelTec Council has resolved to jointly and severally guarantee the loan with the other New Zealand based partner, Universal College of Learning. Accordingly, WelTec has a contingent liability of $3m at balance date. (2012, $3m).
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[32] FINANCIAL INSTRUMENTS 32A Financial instrument categories Accounting policies for financial instruments have been applied to each class of financial asset and financial liability outlined below. The book value of each equals their fair value: GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
Cash and cash equivalents
12,014
8,711
11,904
8,495
Trade and other receivables
6,018
7,166
6,058
6,878
18,032
15,877
17,962
15,373
5
3,514
5
3,514
5
3,514
5
3,514
Trade & other payables
4,860
5,222
4,779
5,208
Total financial liabilities at amortised cost
4,860
5,222
4,779
5,208
Loans & receivables
Total loans & receivables Other financial assets Other financial assets (note 15)
Financial liabilities at amortised cost
32B Financial instrument risks Risk management Strategic risk management is undertaken by Council through the monitoring of regular risk reports provided by management. These reports highlight potential areas of risk, and the steps that are being followed to ensure the risks are appropriately managed. The Finance department provides treasury management services for WelTec, co-ordinating the access to domestic and international financial markets and management of the financial risks relating to the operations of the business. WelTec does not enter into, or trade financial instruments for speculative purposes. Details of significant accounting policies and methods adopted, including the criteria for recognition, and the basis of measurement applied in respect of each class of financial asset, financial liability and equity instrument are disclosed in the Accounting Policies section of these financial statements. Currency risk WelTec has no material exposure to movements in foreign exchange rates. Income sourced from overseas is received in New Zealand dollar equivalents, while trading supplies sourced from international providers are not a material portion of WelTec’s annual expenditure. Council Policy on foreign exchange states that should an international purchase of $20,000 or more be required, investigation is made into forward cover. At balance date no forward contracts or any other form of hedging exist. Credit risk Credit risk exposure for WelTec exists principally within cash and cash equivalents, and trade and other receivables balances. Credit risk in respect of cash holdings is managed by spreading short term investment deposits with the major trading banks within New Zealand, while ensuring WelTec receives the best return on the funds invested, as specified by Council Policy. Receivable balances are unsecured. They are stated at their estimated realisable value after providing for amounts not considered recoverable.
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WELLINGTON INSTITUTE OF TECHNOLOGY
The maximum credit exposure for each class of financial instrument is as follows: GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
Cash and cash equivalents
12,014
8,711
11,904
8,495
Trade and other receivables
6,018
7,166
6,058
6,878
Other financial assets
3,500
Total credit risk
18,032
19,377
3,500 17,962
18,873
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: Counterparties with credit ratings Cash and cash equivalents AA- rating
12,014
8,711
11,904
8,495
Total cash and cash equivalents
12,014
8,711
11,904
8,495
Trade and other receivables with no defaults in the past
6,018
7,166
6,058
6,878
Total trade and other receivables
6,018
7,166
6,058
6,878
Counterparties without credit ratings
Liquidity risk WelTec manages liquidity risk by maintaining adequate reserves to ensure the provision of educational services for the foreseeable future. This is completed by continuously monitoring and forecasting cash flows for the medium term. The maximisation of operational inflows and efficient management of operational and investing outflows ensures sufficient cash reserves are maintained. Contractual maturity analysis of financial liabilities The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date.
Carrying amount
Contractual cash flow
Less than 6 months
6-12 months
1-2 years
$000
$000
$000
$000
Trade and other payables
4,860
4,860
4,860
-
-
Total
4,860
4,860
4,860
-
-
Trade and other payables
4,779
4,779
4,779
-
-
Total
4,779
4,779
4,779
-
-
$000
Group 2013
Parent 2013
2013 ANNUAL REPORT
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Carrying amount
Contractual cash flow
Less than 6 months
6-12 months
1-2 years
$000
$000
$000
$000
Trade and other payables
5,222
5,222
5,222
-
-
Total
5,222
5,222
5,222
-
-
Trade and other payables
5,208
5,208
5,208
-
-
Total
5,208
5,208
5,208
-
-
$000
Group 2012
Parent 2012
Interest rate risk WelTec has exposure to interest rate risk to the extent that it has outstanding investments at fixed rates. The interest rates risk on investments is managed through the use of short term investments, in accordance with Council Policy. No significant exposure to interest rate risk exists on the remaining financial assets and liabilities. Sensitivity analysis The table below illustrate the potential profit or loss and equity impact for reasonably possible market movements, with all other variables held constant, based on financial instrument exposures at the balance date. 2013
2012
Profit -50bps
Profit +50bps
Profit -50bps
Profit +50bps
$000
$000
$000
$000
(11)
11
(10)
10
-
-
(6)
6
(11)
11
(16)
16
Group and Institute Interest rate risk Financial Assets Cash and cash equivalents Other financial assets Total sensitivity
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 on a basis points (bps) movement. For example, a decrease in 25 bps is equivalent to a decrease in interest rates of 0.25%. The sensitivity for interest rate swaps has been calculated using a derivative valuation model based on a parallel shift in interest rates of -50bps/+50bps.
[33] RELATED PARTY DISCLOSURES Significant transactions with government related entities The government influences the roles of WelTec as well as being a major source of revenue. WelTec has received funding and grants from the Tertiary Education Commission totalling $28.6m (2012, $30.4m) to provide education services for the year ended 31 December 2013. WelTec also utilises land and buildings legally owned by the Crown. Collectively, but not individually, significant transactions with government related entities In conducting its activities, WelTec is required to pay various taxes and levies (such as GST, PAYE, ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. WelTec is exempt from paying income tax and FBT.
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WELLINGTON INSTITUTE OF TECHNOLOGY
WelTec purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown. The purchase and provision of goods and services to government-related entities for the year ended 31 December 2013 are small when compared to WelTec’s total expenditure and revenue and have all been conducted on an arms’ length basis. The purchase of goods and services included the purchase of electricity from Genesis and Meridian Energy, air travel from Air New Zealand, and postal services from New Zealand Post. The provision of services to government- related entities mainly related to the provision of educational courses. Councillors Fees WelTec and Whitireia share the cost of Council remuneration with Whitireia paying the Chairperson and four other councillor’s fees in 2013. A proportionate share of the Chair and Deputy Chair remuneration has been on-charged to WelTec in 2013. During the year, the Metro Group of Institutes of Technology and Polytechnics purchased consulting services from Saunders Unsworth, a Wellington based consulting company. The Council Chairperson Roger Sowry is a partner in this company. WelTec’s share of these costs was $42,139 (2012, $39,345) and the services were supplied on normal commercial terms. GROUP
PARENT
2013 Actual
2012 Actual
2013 Actual
2012 Actual
$000
$000
$000
$000
Equalisation payment - Chair and Deputy Chair 2012/2013
15
-
15
-
Vaughan Renner (Deputy Chairperson, 2013)
20
14
20
14
Dennis Sharman
16
14
16
14
Nancy McIntosh - Ward
16
14
16
14
Peter Steel
16
14
16
14
Suzanne Snively
16
14
16
14
3
14
-
14
Council remuneration paid during the year
Peter Preston
Related party transactions with subsidiary, associate, and jointly controlled entity During the reporting period WelTec entered into transactions with LCBNZI Limited Partnership, a partnership in which WelTec holds an equity interest through WelTec Connect Limited (refer note 14). These transactions occurred within a normal supplier relationship on terms and conditions no more or less favourable than those which it is reasonable to expect WelTec would have adopted if dealing with the partnership as per any independent third party. PARENT
2013 Actual
2012 Actual
$000
$000
22
-
-
53
50
-
2
-
Subsidiary WelTec Connect Limited Unsecured loans payable to WelTec Debtor for services provided by WelTec WelTec Student Accommodation Limited Unsecured loans payable to WelTec Debtor for services provided by WelTec
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GROUP AND PARENT
2013 Actual
2012 Actual
$000
$000
-
-
Services provided by WelTec
191
318
Debtor for services provided by WelTec
125
118
-
-
730
772
5
772
Services provided by WelTec
114
91
Debtor for services provided by WelTec
47
57
253
-
15
-
Associate MotorTrain Limited No related party transactions were entered into during the year LCBNZI Limited PartnershipÂ
LCB Management Limited No related party transactions were entered into during the year
Jointly Controlled Entity Computer Power Services provided by WelTec Debtor for services provided by WelTec Cybus
W2 Shared Services Services provided by WelTec Debtor for services provided by WelTec
[34] EVENTS AFTER BALANCE DATE There are no events after balance date to report.
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Responsibilities In the financial year ended 31 December 2013, the Council and Management of Wellington Institute of Technology were responsible for: â&#x20AC;˘
The preparation of the Financial Statements, Statement of Objectives and Service Performance and the judgements used therein.
â&#x20AC;˘
Establishing and maintaining a system of internal control designed to provide reasonable assurance, as to the integrity and reliability of financial reporting.
In the opinion of Council and management of Wellington Institute of Technology, the Financial Statements and Statement of Objectives and Service Performance for the year ended 31 December 2013 fairly reflect the financial position and operations of Wellington Institute of Technology and Group.
ROGER SOWRY CHAIRPERSON 30 APRIL 2014
LINDA SISSONS (DR) CHIEF EXECUTIVE 30 APRIL 2014
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Chartered Accountants
INDEPENDENT AUDITORS REPORT TO THE READERS OF WELLINGTON COMMUNITY POLYTECHNIC AND GROUP’S FINANCIAL STATEMENTS AND NON-FINANCIAL PERFORMANCE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2013 The Auditor-General is the auditor of Wellington Institute of Technology (“WelTec”) and group. The Auditor-General has appointed me, David Morrow, using the staff and resources of Ernst & Young, to carry out the audit of the financial statements and non-financial performance information of WelTec and group on her behalf. We have audited: -
the financial statements of WelTec and group on pages 78 to 108 that comprise the statement of financial position as at 31 December 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the Financial Statements that include accounting policies and other explanatory information; and
-
the non-financial performance information of WelTec and group in the statement of service performance on pages 70 to 73.
Opinion In our opinion: -
the financial statements of WelTec and group on pages 78 to 108:
-
comply with generally accepted accounting practice in New Zealand; and
-
fairly reflect WelTec and group’s:
-
-
financial position as at 31 December 2013; and
-
financial performance and cash flows for the year ended on that date;
the non-financial performance information of WelTec and group on pages 70 to 73 fairly reflects WelTec and group’s service performance achievements measured against the performance targets adopted in the investment plan for the year ended 31 December 2013.
Our audit was completed on 30 April 2014. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and non-financial performance information are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and non-financial performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and non-financial performance information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and non-financial performance information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to WelTec and group’s preparation of the financial statements and non-financial performance information that fairly reflect the matters to which they relate. We consider internal control in order to design audit
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procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of WelTec and group’s internal control. An audit also involves evaluating: -
the appropriateness of accounting policies used and whether they have been consistently applied;
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the reasonableness of the significant accounting estimates and judgements made by the Council;
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the adequacy of all disclosures in the financial statements and non-financial performance information; and
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the overall presentation of the financial statements and non-financial performance information.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and nonfinancial performance information. Also we did not evaluate the security and controls over the electronic publication of the financial statements and non-financial performance information. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. Responsibilities of the Council The Council is responsible for preparing financial statements that: -
comply with generally accepted accounting practice in New Zealand; and
-
fairly reflect WelTec and group’s financial position, financial performance and cash flows.
The Council is also responsible for preparing non-financial performance information that fairly reflects WelTec and group’s service performance achievements measured against the performance targets adopted in the investment plan. The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and non-financial performance information that are free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the financial statements and non-financial performance information, whether in printed or electronic form. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and non-financial performance information and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004. Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in WelTec or any of its subsidiaries.
David Morrow Ernst & Young On behalf of the Auditor-General Wellington, New Zealand
2013 ANNUAL REPORT
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WelTec School of Hospitality
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WELLINGTON INSTITUTE OF TECHNOLOGY
2013 ANNUAL REPORT
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Acronyms AOD
Alcohol & Other Drugs
ACE
Adult and Community Education
BE
Bachelor of Engineering
BPS
Basis Points
BSC
Bachelor of Science
CATE
Career and Technology Education
CCDHB
Capital & Coast District Health Board
DAPAANZ Drug & Alcohol Practitionersâ&#x20AC;&#x2122; Association Aoteroa New Zealand DHB
District Health Board
EFTS
Equivalent Full-Time Student
EMT
Executive Management Team
EPIS
Educational Performance Indicators
FTE
Full-Time Equivalent
HVDHB
Hutt Valley District Health Board
IAS
International Accounting Standard
IOD
Institute of Directors
IRL
Industrial Research Limited
IS
Information Systems
ISS
Income Support Services
IT
Information Technology
ITO
Industry Training Organisation
ITP
Institutes of Technology & Polytechnics
LCBNZI
Le Cordon Bleu New Zealand Institute
MBA
Master of Business Administration
MITO
Motor Industry Training Organisation
MoU
Memorandum of Understanding
NZQA
New Zealand Qualifications Authority
NZIFRS
New Zealand International Financial Reporting Standards
NZTE
New Zealand Trade and Enterprise
PBRF
Performance-Based Research Fund
R&D
Research and Development
SAC
Student Achievement Component
SAEER
Self Assessment, and External Evaluation and Review
SDR
Single Data Return
SME
Small and Medium Enterprises
STAR
Secondary/Tertiary Alignment Resources
TEC
Tertiary Education Commission
TES
Tertiary Education Strategy
TFESC
Territorial Forces Employers Support Council
UCOL
Universal College of Learning
WCL
WelTec Connect Limited
2013 ANNUAL REPORT
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Campus Petone Campus 11 Kensington Avenue, Petone Private Bag 39814, Wellington 5045 Telephone: (04) 920 2400 Facsimile: (04) 920 2401
Regional School of Construction 18 Western Hutt Road Private Bag 39814, Wellington 5045 Telephone: (04) 920 2400 Facsimile: (04) 920 2401
Wellington Hospitality Campus 54 Cuba Street, Wellington CBD Private Bag 39814, Wellington 5045 Telephone: (04) 920 2400 Facsimile: (04) 920 2401
Wellington Church St Campus 11â&#x20AC;&#x201C;17 Church Street (off Boulcott Street) Private Bag 39814, Wellington 5045 Telephone: (04) 920 2400 Facsimile: (04) 931 6959
Auckland Campus Level 2, 3 Wakefield Street, Auckland CBD P.O.Box 6413, Wellesley St, Auckland 1141 Telephone: (09) 915 8930 Facsimile: (09) 915 8940
Christchurch Campus CPIT, ML Block, 34 Allen St, Christchurch Private Bag 4938, Christchurch 8140 Telephone: (03) 940 8690
0800 WelTec (935 832) information@weltec.ac.nz www.weltec.ac.nz www.facebook.com/weltec