Annual Report 2011 by Whitireia New Zealand

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

ANN UAL1st REP ORT “ I pay tribute to all staff for their superb efforts in 2011. They rise to the challenges of modern education, delivering to as well as, supporting our students, making Whitireia a true learning community.

”

“

Polytechnic for student success

hitireia were rated number one for qualification completion in W August 2011, in the Performance of Teriary Education Organisations Report published by the Tertiary Education Commission.

“

0800 944 847

leading and illuminating

OUR

www.whitireia.ac.nz

communities through tertiary

EDUCATION

Despite changes in funding policy and the environment, Whitireia continues to perform and achieve outstanding results..

”

ANNUAL REPORT 2011

Vision

Values

Matters relating to the electronic presentation of the audited financial statements and statement of performance

Whitireia will lead and illuminate its communities through tertiary education

Manaaki

This audit report relates to the financial statements and the statement of service performance of Whitireia Community Polytechnic (the polytechnic) and group for the year ended 31 December 2011 included on the polytechnic and group’s website. The polytechnic and group’s Council is responsible for the maintenance and integrity of the polytechnic and group’s website. We have not been engaged to report on the integrity of the polytechnic and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website.

Encouraging co-operation in learning and resource sharing to promote individual confidence and group harmony through a positive and supportive learning environment

Identity Creating a learning environment where all people feel they belong because their uniqueness is valued and promoted

Equity Achieving more equal outcomes by providing significant learning and education success for those who have previously lacked such opportunities

Responsiveness Being flexible, creative and open to change, to better meet individual, industry and community learning needs

Success Being an effective organisation with a clear sense of purpose, striving for excellence and creating an environment where all have the right to succeed

Integrity Maintaining the highest ethical standards and permitting public scrutiny to ensure the maintenance of those standards

Accountability Monitoring and reporting on the maintenance of educational quality standards and on the responsible use of public resources

The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance as well as the related audit report dated 16 May 2011 to confirm the information included in the audited financial statements and statement of service performance presented on this website.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Contents 02

Snapshot of 2011

Council Chair Report

Chief Executive Report

Council and Senior Management

Highlights

Educational Performance

Achievements

Objectives and Key Performance Indicators

Performance Measures Definitions

Financial Statements

Statement of Financial Performance

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Financial Position

Statement of Cash Flows

Notes to the Financial Statements

Report of the Auditor-General

SNAPSHOT OF 2011

7953

five

GRADUATION CEREMONIES AWARDED 2142 CERTIFICATES 450 DIPLOMAS AWARDED 366 DEGREES AWARDED 162 POSTGRADUATE CERTIFICATES AWARDED

STUDENTS ENROLLED 122 PROGRAMMES OFFERED

LEVEL 8

60%

40%

LEVEL 7

34%

STUDENTS STUDY

51%

LEVELS 1-5

LEVELS 1-8

FEMALE

2121 STUDENTS ENROLLED DIRECTLY FROM SECONDARY SCHOOL

LEVE

MALE

10%

294 ACADEMIC STAFF 215 EXECUTIVE & SUPPORT STAFF

CAMPUSES

4 7

LOCATIONS

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

31% 69%

INTERNATIONAL DOMESTIC STUDENTS STUDENTS

35 FOUNDATION SCHOLARSHIPS AWARDED

IAN

POLYTECHNIC FOR STUDENT SUCCESS ER

TH &O

19%

21% DER

SLA

43%

AND EAL N Z A NEW ROPE U E

STUDENT ETHNICITY

The Performance of Tertiary Education Organisations Report ranked Whitireia in the number 1 position for qualification completion. Ranked 1st against 19 other Polytechnics and Institutes of Technology in New Zealand

1686

YEAR 10

STUDENTS

PARTICIPATED IN TERTIARY EXPLORATION SESSIONS

17% MAORI

I IFIC

PAC

18 SECONDARY SCHOOL LEAVER FEE SCHOLARSHIPS AWARDED

977 STUDENTS PARTICIPATED IN STAR PROGRAMMES

101 SECONDARY SCHOOL STUDENTS PARTICIPATED IN GATEWAY PROGRAMMES

“ Whitireia students

achieved very high levels of educational success in 2011, as this report shows. ” Whitireia students had the highest rate of qualification completion of all twenty institutions in the ITP sector in 2010.

COUNCIL CHAIR // HON ROGER SOWRY ONZM

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Kia ora koutou Iâ&#x20AC;&#x2122;m delighted to introduce the 2011 Annual Report for Whitireia Community Polytechnic, Te Kura Matatini o Whitireia. In summary, 2011 was an excellent year for Whitireia on many fronts. We continued to provide quality applied vocational education for some 7,953 students, or 4,589 equivalent fulltime students (EFTS), from our various communities. The main growth was in international student numbers, which reached 1,400 EFTS in 2011. Whitireia students achieved very high levels of educational success in 2011, as this report shows. They had the highest rate of qualification completion of all 20 institutions in the ITP sector in 2010. Our students were even more successful in 2011, with increased levels of course completion and qualification completion. Congratulations to all students and staff for this excellent result! Pleasingly we produced a financial surplus of $2.7 million* on close to $59 million of revenue and made significant improvements to our longer term financial viability. An exciting development in 2011 was the Students First strategic partnership with Wellington Institute of Technology (WelTec). This innovative partnership is a first for the tertiary education sector in New Zealand. Its aim is to provide a high-quality network of applied and vocational education at the tertiary level for the greater Wellington region and beyond. This partnership

*surplus after non-operating items

progressed further in November 2011, when the Minister of Tertiary Education announced the establishment of a combined Governing Council and a combined Academic Board for the two institutions as from January 2012. We expect the new Council and Academic Board will lead significant progress for the benefit of all students in 2012. Another significant development in 2011, was the establishment of Whitireia New Zealand Limited as a subsidiary of Whitireia. This new organisation further integrates two Private Training Establishments (PTEs) into Whitireia, the New Zealand Radio Training School and Whitireia Performing Arts Company Limited. Major new building developments were completed in 2011. These included the Media Training Centre in Cuba Street, Wellington which was opened in May 2011, the Performance Centre in Vivian Street, Wellington which opened in June 2011 and a major refurbishment of the Auckland campus in Queen Street, Auckland which was opened in September 2011. A new campus was also developed for the KÄ piti region in time for classes to start in February 2012. All of these developments are bringing new life and increased numbers of students to the teaching programmes delivered in these regions. There were many achievements in 2011 as noted in this report. The graduation of our students is always a highlight and Te Rauparaha Arena in Porirua City is a fantastic venue for these large celebrations of student success.

While 2011 has been an excellent year, we face many challenges over the next few years delivering our distinctive contribution within a capped domestic funding environment. Not the least of these is how to fund the many capital developments needed from our own resources. We have excellent staff and a very supportive community and the completion and success rates of our students demonstrate we represent excellent value for money in the total tertiary network. We are well placed to continue to deliver quality vocational programmes and educational outcomes that will make a difference to students employment opportunities and their lives. As Chair of the new Council of Whitireia and WelTec, I look forward to a very positive and constructive year in 2012. The new Council will continue to debate the issues that affect our institutions with passion, vigour and a sound commitment to community needs. Thank you to all Councillors for contributing your knowledge and time to Whitireia and the new partnership with WelTec. On behalf of Council I would like to thank Don Campbell for his leadership in 2011 and the many positive achievements. I would also like to thank the management team and the staff for their continued support and dedication. Noho ora mai Hon Roger Sowry ONZM Council Chair

â&#x20AC;&#x153; I am delighted

to report on the performance of Whitireia Community Polytechnic for 2011 , our 25th year as a quality tertiary education provider. â&#x20AC;?

Chief Executive // Don Campbell

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Tena- koutou katoa Introduction I am delighted to report on the performance of Whitireia Community Polytechnic for 2011, our 25th year as a quality tertiary education provider. It was a great year with many tangible achievements to celebrate as we continued to “lead and illuminate our communities through tertiary education” in Porirua, Kāpiti, Wellington and Auckland. Whitireia provided quality vocational tertiary education to 4,589 equivalent full-time students (EFTS) in 2011. The main growth came from increased numbers of international students, 1,400 EFTS, and also from growth in the Youth Guarantee Scheme for younger students. This provided revenue close to $59 million and a financial surplus of $2.7 million*, a very pleasing result which represents 4.6% of gross income.

Educational Success For any educational institution, student achievement and performance are always the highlights of any year. In 2010, Whitireia was ranked first in the ITP sector for students who successfully complete qualifications including degrees, diplomas and certificates. Our students continued to achieve very high rates of educational success in 2011, as this report shows, and the Whitireia rates for successful course and qualification completion increased even further from 2010 to 2011. Large graduations at Te Rauparaha Arena in Porirua City, were great celebrations of student success last year.

*surplus after non-operating items

Performance in 2011

Strategic Partnership

In addition to high levels of educational performance in 2011, Whitireia achieved a financial surplus of $2.7 million*, which was a significant increase over budget, due mainly to increased international revenue and tight control of expenditure.

A Strategic Partnership with Wellington Institute of Technology (WelTec) was an important development last year. This led to the establishment of a combined Governing Council and Academic Board for the two institutions, from January 2012. The partnership will draw on the strengths of both institutions to give students easier access to a diverse range of programmes. It will create distinctive Centres of Excellence that will work closely with industry, provide a single stronger voice for vocational tertiary education and become a one-stop shop for industry in greater Wellington. We look forward to working closely with WelTec in 2012 to achieve an ambitious set of objectives.

Whitireia is recognised as a leading provider of tertiary education for culturally diverse communities. This is reflected in growth of students of Māori, Pacific and international origin. The proportion of students in degrees and higher level programmes continued to increase in 2011, as did the number of students under the age of 25 years. These are Government priorities for the tertiary sector, and Whitireia has been very successful in meeting these priorities. A very important role for us is to enhance the pool of skilled people for industry and to help lift the productivity of business. Whitireia graduates reported high levels of employment or progress to further study in 2011, while an employer survey indicated high levels of satisfaction with Whitireia graduates. Our success is of course a reflection of staff performance. In acknowledging this I pay tribute to all staff for their superb efforts in 2011. Our staff do “lead and illuminate their communities” in their respective fields and this is widely acknowledged. Staff are incredibly important in our success. They rise to the many challenges in modern education, delivering as well as supporting our students, and making Whitireia a true learning community.

25th Birthday Celebrations 2011 was our 25th year of operation, a significant milestone which was marked by high profile activities. A series of campus developments saw new building openings including the Media Training Centre in Cuba Street, Wellington, by the Minister of Tertiary Education, Hon Steven Joyce, the Performance Centre in Vivian Street, Wellington, by the Minister of Arts, Culture and Heritage, Hon Christopher Finlayson, a refurbished Auckland campus in Queen Street, by MP for Auckland Central, Nikki Kaye, and the start of a new Kāpiti campus development in Paraparaumu. We also held Matariki and scholarship celebrations, a series of Education Forums and a 25th birthday event with student performances to showcase our success. A 25th publication will be published in 2012 to mark a great first 25 years of existence.

Tertiary Reforms A capped funding environment has effectively been in place since 2006 when Adult and Community Education (ACE) funding was severely reduced. This presents considerable challenges around reallocation of resources to meet changing workforce priorities. In response to Government priorities, Whitireia has increased the proportion of students under the age of 25. We have increased the proportion of students at Level 4 and above and we have increased the number of MÄ ori and Pacific students. We have improved programme success rates and have lifted profitability and improved efficiency of delivery. We have also continued to be well connected to our community which is diverse and multi-ethnic but for whom current funding models are not well suited. More work is needed on this, to ensure current structural disadvantages to success, are addressed.

Looking Ahead A major challenge for Whitireia and the strategic partnership with WelTec, will be to fund our capital development needs over the next few years, to provide a series of modern, well equipped and flexible campuses. This requires strong financial performance and, for Whitireia, will most likely require borrowing for the first time. A key project signed off by Council in December was a new $16.5 million building, which will include state-ofthe-art simulation suites, classrooms and flexible learning environments. It will result in some disruption to

the Porirua campus in 2012 and will be completed in time for the 2013 academic year. There will be challenges in the international space, as the environment remains highly competitive and changes in immigration regulations may well have unintended consequences for us. A second challenge is to continue to grow international student numbers and profitability whilst ensuring our domestic students needs and success rates are maintained. This may be difficult in a very competitive ITP sector. A third challenge, is to deliver planned student numbers and the budgeted surplus. Further developments will include building better educational links and relationships, new collaborative arrangements, shaping and sharpening our strategic focus and all the while continuing to engage with our communities. The fourth and most important challenge will be to ensure continued high success rates along with excellent educational outcomes for students, employers and our communities. I am delighted at the progress we have made in adapting to the new tertiary environment, adjusting our programme portfolio, mix and level, significantly improving our profitability, our responsiveness to community and industry and the ability to meet and exceed challenging targets. The last five years have seen significant changes in the external environment and we have changed and adapted extremely well as an organisation.

Conclusion I thank all staff and management, including Deputy Chief Executives, who have responded well to the changing external environment and helped prepare us for the current and future changes. We are strong and well regarded but we do have a lot of work to do both in helping to create a simpler and better tertiary sector and in continuing to transform our organisation for the new environment. Finally I wish to thank Council for their strong and supportive leadership and sound understanding of our community, the tertiary environment and the place Whitireia has in the tertiary sector. The Council has led the strategic partnership with WelTec, and we look forward to exciting developments to provide a strong network of applied tertiary education for greater Wellington and the country. My special thanks to Hon Roger Sowry ONZM, as Chair and Dr Alan Barker as Deputy Chair for their support, guidance and leadership. Noho ora mai Don Campbell Chief Executive

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

â&#x20AC;&#x153;

2011

Our 25th year of operation, and a significant milestone which was marked by high profile activities. We opened a number of new campuses, held Matariki and scholarship celebrations, a series of Education Forums and a special 25th birthday event with student performances to showcase our success.

â&#x20AC;?

$59m Revenue

$2.7m* Financial surplus

7,953 4,589 Students

Equivalent full-time students (EFTS)

*surplus after non-operating items

Chief Executive // Don Campbell

Council and Senior Management Whitireia Council

Senior Management

Hon Roger Sowry ONZM Council Chair

Don Campbell Chief Executive MBS (Hons), BA (Econ), Dip Tchg, FNZIM

Dr Alan Barker Deputy Chair / Ministerial Dennis Sharman Ministerial Suzanne Snively ONZM Ministerial Aka Arthur Community Representative Gregory Fortuin Community Representative Dr Kabini Sanga Community Representative Ron Wilkinson Community Representative

Susan Cauchi Deputy Chief Executive (Academic) MA (Hons), DipNZLS Arthur Graves Deputy Chief Executive (Strategic) (resigned December 2011) PGDipArts, BA

Stephen Porteners Manager, Business Information Centre (resigned July 2011) BSc Mark Raisin Chief Financial Officer BBS

Lawrence Arps Deputy Chief Executive (Operations) MEdAdmin, BEd

Tim Renner Director, Communications and Marketing (Domestic) MA (Hons), BA (Eng and Hist), MBA, MCIM, Chartered Marketer

Damien Banks Business Development Manager, Kāpiti BMS (Mktg), NZDipBus

Dr Margaret Southwick QSM Dean, Faculty of Health PhD, NZRN

Trish Brimblecombe Project Manager MComms, BA, DipBS

Nick Wempe Manager, Business Information Centre (from October 2011) BA (Hons), Dip Ed, Dip Tchg

Helen Gardiner Dean, Faculty of Service Industries BA, Dip Tchg, CTC, ANZIM Kaye Jujnovich Dean, Faculty of Arts MEd (Hons), Adv Dip Tchg, H Dip Tchg, Dip Tchg Willis Katene Director, Te Kupenga and Dean Te Wānanga Māori MMMgt, BA (Hons), Dip ART Gerry McCullough Dean, Faculty of Business BA (Maths), FAETC

Paul Maguiness General Manager, International MBS, BCA

Stephen Wickens Dean, Faculty of Trades BA (Hons), Dip Ed, Dip Tchg Glenys Williams Manager, Academic Quality MA (TESOL), BEd, Dip Tchg, CALT

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Porirua campus

$16.5M Upgrade approved by council

Whitireia and WelTec strategic partnership and the approval of a combined Governing Council and Academic Board Official opening of the Performance Centre and Media Training Centre in Wellington City and the redeveloped Auckland Campus Memorandum of Understanding signed with Habitat for Humanity to collaborate in the building of new homes

YEARS

Highlights

Whitireia celebrated 25 years

as a quality tertiary education institute

Dr Margaret Southwick QSM reappointed Chair of the New Zealand Nursing Council A two staged campus redevelopment programme for the main Porirua Campus is approved and work commenced Two staff were awarded PhD’s Research outputs increased by over 70% from 2010

Memorandum of Agreement signed with Vikings Rugby Club, Porirua City

Successful establishment and growth of Youth Guarantee programmes for 16-17 year old students

Performing Arts students participation in a dance festival in Italy for six weeks

Māori, Pacific and Youth strategies formalised and endorsed by Council

Performing Arts students awarded a six week paid contract with Museum of New Zealand Te Papa Tongarewa to offer three half hour Māori shows on Friday’s, Saturday’s and Sunday’s for the duration of the Rugby World Cup 2011

Implementation of SMART library service

The commencement of the new Kāpiti campus development in Paraparaumu 1,400 international equivent full-time students (EFTS) studied at Whitireia in 2011, an increase of 84 EFTS from 2010 Resolution of the Academic Staff Collective Employment Agreement (TEU bargining round)

Australian accreditation of the Whitireia Bachelor of Health Science (Paramedic) programme commenced The successful accreditation of the Bachelor of Applied Business Studies (BABS) Finance major by the NZICA for the Associate Chartered Accountant pathway The completion of the World Health Organisation Vanuatu project by Wendy Scott and Dr Margaret Southwick QSM Science in Schools Project for Pacific secondary school students implemented

Five books

were published by staff in 2011

A 2011 International Arts Fellowship was awarded to Carmel McClone, to study Shakespeare at the Globe Theatre in London Brand identities established for the, Performance Centre, Media Training Centre, Kāpiti and Whitireia Theatre Two Te Reo Māori tutors were invited to participate at the highly regarded Te Panekiretanga o te Reo Māori – The Institute of Excellence in Māori Language Visual Arts and Design Tutor, Owen Mapp, was invited to exhibit and present two papers at the International Council of Archae-zoology sub group, the ‘Worked Bone Research Group’ at Salzburg University, Austria The Whitireia Nursing Journal, marked its 18th year of uninterrupted publication Whakairo tutor, James Molnar and students were involved in the carving of two waka for the Wharewaka on Wellington’s waterfront Visual Arts and Design Tutor, Deb Donnelly’s, representation on behalf of New Zealand, at the International Shibori Symposium in Hong Kong Successful development, growth and strengthing of our industry relationships throughout 2011

Educational Performance The main goal of the Whitireia Strategic Plan is

‘to improve educational outcomes and success for students.’ As this Annual Report shows, Whitireia successfully achieved this main goal in 2011. The following commentary provides further information, about important aspects of the Polytechnics overall performance.

Student Participation In 2011, Whitireia taught 7,953 individual students and 4,589 equivent full-time students (EFTS). These students studied mainly at Whitireia campuses in Porirua, Wellington City, Kāpiti and Auckland. Whitireia has a diverse student population with students from over 30 ethnic groups and nationalities. In summary:

43% 38% 19% New Zealand European

Māori and Pacific

Asian and Other

The majority of these students study in higher level programmes.

Whitireia has nine degree programmes and five postgraduate qualifications, which contribute to the relatively high proportion (71%) of students who studied in degree and diploma programmes at Level 4 and above, on the National Qualifications Framework in 2011. At the same time, Whitireia continued to offer lower-level programmes, which lead directly to employment, as well as foundation programmes, that lead to degree and diploma level study.

International Students Whitireia has a high proportion of international students. In 2011, the Polytechnic had 1,400 international student EFTS, making up 30% of the total student population. 860 of these students studied at the Auckland campus and 540 at other Whitireia campuses. Whitireia provides a wide range of student support, pastoral care and English language programmes for international students. This contributes to high levels of success for this group of students. In 2011, international students achieved a successful course completion rate of 78% while 78% successfully gained a qualification.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Community Engagement

Research

Whitireia has a wide range of links to employers, professional organisations, iwi and community groups, e.g. Whitireia has a long-standing relationship with the local iwi, Ngāti Toa, and it has developed programmes to foster Māori achievement e.g. the Bachelor of Nursing (Māori). Strong links between Whitireia and Pacific communities have led to wellestablished programmes for Tongan students, while a new initiative to provide Pacific scholarships in trades was introduced this year. Whitireia ran two offerings of the National Certificate in Horticulture (Introductory) (Level 2) for students with disabilities in association with Asert Trust/ Ti Rito Gardens. Programme Advisory Committees provide advice for teaching programmes and include employers, industry leaders and community representatives. Whitireia staff are actively involved in professional and industry organisations, such as the New Zealand Nursing Council. Well-attended regional Education Forums for all those interested in education were run by Whitireia throughout 2011. All these links assist Whitireia in providing tertiary education that meets the needs of students, families, employers, industry and communities.

The reputation of tertiary institutions is greatly enhanced by the research produced and the academic qualifications of its staff. 2011 was a very productive year for research activities at Whitireia, with the awarding of one Doctor of Philosophy (PhD), one Doctor of Nursing (DN), and six Master’s degrees to staff members. Overall, Whitireia staff produced 166 research outputs including 5 books and 43 publications such as chapters in books and published journal articles. A total of 43 creative outputs included public art exhibitions and theatre performances. Over 67 staff delivered conference papers and presentations. 2011, saw research outputs increase by over 70%. The knowledge and expertise of Whitireia staff continued to be soughtafter as they were approached to complete commissioned work, with 14 external contracts or grants for artistic or research projects. In 2011, these have included a wide range of projects including the evaluation of educational initiatives, Pacific housing needs, families of prisoners, cultural issues, artistic performance, the creation of educational resources, and a grant from the prestigious Technology and Transfer Project.

The Performance Based Research Fund (PBRF) Quality Evaluation was a focus for the Polytechnic last year. The PBRF reviewed tertiary education research at universities, polytechnics and other tertiary education organisations for the six year period from 1 January 2006 to 31 December 2011. We look forward to PBRF results in 2012.

166 70% Total research outputs

Increase in research outputs for 2011

Achievements In 2011, Whitireia continued to excel at providing quality, industry related training to its community. Students when surveyed, were very satisfied with the programmes they enrolled in and the support they received to meet their study needs.

This translated into 79% of students successfully completing their courses and 72% successfully completing their qualifications in 2011.

Each year, Whitireia conducts a survey of graduates and their employers. In 2011, 86% of our surveyed graduates indicated they are either in employment or are participating in further education. The majority of our graduates commented that they would recommend the programme they completed to future students. Employers contacted in the employer survey indicated that they are very satisfied with the job skills Whitireia graduates brought to their businesses and the qualifications graduates obtain are relevant to their industry needs.

Meeting the needs of students and graduates 100% 80% 60% 40% 20% 0% Students overall programme satisfaction

Students receiving helpful feedback on work

Graduates in Graduates recommend employment programme of and/or futher study study to others

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Whitireia Profile Whitireia provided quality education to a total of 4,589 equivent full-time students (EFTS) and 7,953 individual students in 2011. Student levels increased in 2011, due in part to growth in international student and Youth Guarantee Scheme student numbers. Whitireia New Zealand Limited which now accounts for the New Zealand Radio Training School and Whitireia Performing Arts Company Limited, contributed 120 EFTS to the total for 2011. Whitireia continues to diversify its income streams in response to the Government funding cap.

Whitireia group EFTS profile

International students 30% Youth Guarantee Scheme students 4% Other domestic students 3% Student component funding students 63%

Source of funding

Government grants 48% Other income 5%

Other fees 19%

Tuition fees 28%

LEADING AND ILLUMINATING OUR

COMMUNITIES THROUGH TERTIARY EDUCATION

The commercial broadcasing programme has not only given me skills, but has also provided me with the confidence to pursue a career in radio. Marshall Woods // Certificate in Commercial Broadcasting

â&#x20AC;&#x153;Ehara taku toa he taki taki, he toa taki tini. My success should not be bestowed onto me alone, as it is not an individual success but success of a collective. The support from Whitireia has made my learning experience very rewarding. The invaluable skills I have learnt have broadened my future opportunities. The skills taught at Whitireia can be applied to any business environment.â&#x20AC;? Donna-Maria Munro // Bachelor of Applied Business studies

“The outdoor adventure programme at Whitireia is fantastic. We get to study in the beauty of New Zealand’s natural environment. The practical side of this programme is great and there is a lot of it!” HonE Kingi // Certificate in Outdoor ADVENTURE

“Whitireia is such an amazing place. It has given me the opportunity to meet awesome people and to gain the skills and knowledge I need to become a successful Māori nurse.” Courtney Kenny // Bachelor of Nursing Māori

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Objectives and Key Performance Indicators Key Performance Indicators for Whitireia Students Whitireia has established objectives 1-3 for the Polytechnic as a whole. These objectives and performance figures apply to all Whitireia students. This includes, international students and other students who are not funded directly by the Tertiary Education Commission (TEC), as well as domestic students, who are funded by TEC through Government Student Achievement Component (SAC) funding.

Whitireia Educational Performance Whitireia has established the following objectives and key performance indicators to measure the Polytechnics performance against its strategic objectives and Government priorities for tertiary education. These objectives are aligned with the Whitireia Community Polytechnic Investment Plan for 2011-2013 which was agreed with TEC in 2010. TEC has provided provisional 2011 educational performance figures for domestic students enrolled in Institutes of Technology and Polytechnics (ITPs) as at 30 January 2012. TECâ&#x20AC;&#x2122;s provisional data has been used in this report where it is available and relevant. Otherwise, the latest Polytechnic information as at 2 March 2012 has been used, including the latest qualification completion rates, which were not finalised at the time of TEC data collection, in January 2012.

Objective 1 Whitireia students successfully complete their courses

Target:

75% 79% Achieved:

Performance achievement: this objective was achieved. In 2011, Whitireia achieved a course completion rate of 79%. This exceeded the target of 75% of all students to complete courses or papers leading towards a qualification. In addition, Whitireia course completion rates have increased over the last four years, as the graph below demonstrates. Factors that contributed to this successful educational performance include excellent teaching staff, student support services and quality management systems. Whitireia also has a polytechnic-wide focus on improving educational performance. For example, the main goal of the Whitireia Strategic Plan and Business Plan is â&#x20AC;&#x153;to improve educational outcomes for students.â&#x20AC;? To meet this goal, student performance is evaluated at all levels in the organisation, and improvement plans are prepared, implemented and monitored. The Governing Council, Academic Board and faculties annually consider the academic performance of all programmes and implement steps for improvement. If completion rates are below target, action plans are prepared and implemented to improve student performance. The Polytechnics total programme portfolio changes every year, as some new programmes are introduced and others are no longer offered. If programmes have low student success rates and improvements do not occur, then those programmes are likely to be discontinued. This process has contributed to the steady increase in course completion rates (and also qualification completion rates) in recent years. The Whitireia focus on student success and quality improvement continued to contribute to student outcomes in 2011.

Whitireia students successfully complete their courses 100% 80% 60% 40% 20% 0% 2008

Increase overall rate of successful course completions

2009

2010

2011

2008

2009

2010

2011

72%

76%

77%

79%

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Objective 2 Whitireia students successfully complete their qualifications

Target:

57% 72% Achieved:

Performance achievement: this objective was achieved. In 2011, Whitireia achieved a qualification completion rate of 72%. This exceeded the target of 57% of all students to complete a qualification and gain a degree, diploma or certificate qualification. Whitireia students are very successful in completing their qualifications and gaining degrees, diplomas and certificates. In 2010, for example, Whitireia had the highest qualification completion rate in the ITP sector according to published Tertiary Education Commission (TEC) data. For 2011, Whitireia has already achieved its targets for students to complete their qualifications successfully. This figure is still not finalised, as the Polytechnic has a careful validation and checking process to ensure that students have completed all the requirements for the award of a qualification and this process is still underway for some degrees. This high rate of success for Whitireia students reflects the organisations focus on improving educational outcomes for students and its quality systems. It also reflects excellent commitment from all teachers to student achievement, strong Polytechnic links with employers and industry and a high level of pastoral care for students. The Polytechnics total programme portfolio changes every year, as some new programmes are introduced and others are no longer offered. Programme portfolio planning based on educational performance has contributed to the increase in qualification completion rates as shown in the graph on page 24. Whitireia has implemented a new self-evaluation and quality improvement process throughout the organisation since 2009, with a focus on improving educational outcomes for students. The 2011 results show that success rates for students have indeed increased and the self-evaluation and quality improvement process may have contributed to increasing success for students. Improved systems for the timely recording of student achievement have also improved reports to TEC, on which the following figures are based.

Whitireia students successfully complete their qualifications 100% 80% 60% 40% 20% 0% 2008

Increase overall qualification completion rate

2009

2010

2011

2008

2009

2010

2011

56%

59%

71%

72%*

Note: results for 2008 -2010 are final. 2011 results are provisional and not yet final.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Objective 3 Target:

85% 71% Achieved:

Whitireia graduates gain relevant employment or progress to further study Target â&#x20AC;&#x201C; increase progress of surveyed graduates to employment Performance achievement: the objective was not achieved. During 2011, 71% of surveyed graduates from 2010 were in paid employment. The target was based on students in paid employment and/or further study. With the inclusion of students engaged in further study, the actual achievement was 86%, which exceeds the target. Whitireia conducts an annual survey of graduates to assess whether the expectations of graduates have been fulfilled. (Refer to Performance Measures Definitions for more information). Feedback from graduates is analysed and incorporated into plans for improvement to ensure programmes continue to meet or exceed student and employer requirements. In 2011, as in previous years, a high proportion of graduates gained employment (71% of surveyed graduates) or progressed to further study after they left Whitireia. The proportion of graduates in employment and/or study has remained similar over the last three years.

Whitireia graduates gain relevant employment or progress to further study 100% 80% 60% 40% 20% 0% 2008

Increase progress of surveyed graduates to employment

2009

2010

2011

2008

2009

2010

2011

76%

72%

68%

71%

Key Performance Indicators from the Tertiary Education Commission The following key performance indicators have been set by the Tertiary Education Commission (TEC). These student performance indicators apply only to domestic students who are eligible for Government Student Achievement Component (SAC) funding i.e. around 52% of all individual students or 61% of all equivalent full-time students (EFTS) at Whitireia. These figures do not include international students or others who are not funded by TEC through Government SAC funding. TEC has provided provisional 2011 educational performance figures for domestic students enrolled in Institutes of Technology and Polytechnics (ITPs) as at 30 January 2012. TEC has also provided initial rankings for 20 organisations in the ITP sector. TECâ&#x20AC;&#x2122;s provisional data has been used in this report where it is relevant. Otherwise the latest Polytechnic information as at 2 March 2012 has been used, including the latest qualification completion rates which were not finalised at the time of TEC data collection in January 2012.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Participation of Target Groups of Students Māori studying at Level 4 and above

Target:

13% 15% Achieved:

Performance achievement: targets were achieved for the participation of all target groups, except, that a slightly lower (1%) proportion of Pacific and Māori students studied at Levels 1-3 and a slightly higher proportion studied at Level 4 and above. Whitireia regards this shift to higher levels of study as a positive development. The following indicators measure the participation of target groups of students i.e Māori, Pacific and younger students as a percentage of all domestic students equivalent full-time students (EFTS). They also show whether these students are studying in lower level courses i.e. Levels 1-3 on the National Qualifications Framework (NQF) or higher level course programmes i.e. Levels 4-8 on the NQF. As shown in the following table and graph, Whitireia has achieved its objectives for diverse groups of domestic students to participate in tertiary education, and also for more students from target student groups to study in higher level programmes at Level 4 and above on the NQF.

Participation of target groups of students (domestic students with SAC EFTS) 2011 target

Key performance indicator

2011 achievement

Pacific studying at Level 4 and above

Māori studying at Levels 1-3

Māori studying at Level 4 and above

13%

15%

Target:

Pacific studying at Levels 1-3

Pacific studying at Level 4 and above

12%

13%

Under 25 studying at Levels 1-3

11%

12%

Under 25 studying at Level 4 and above

26%

34%

12% 13%

2011 participation

Achieved:

40% 30% 20% 10% 0% The proportion of SAC EFTS enrolled who are Māori Levels 1-3

The proportion of SAC EFTS enrolled who are Pacific

The proportion of SAC EFTS enrolled who are under 25

Level 4 and above

Educational Performance of Domestic Students Successful course completion (overall)

Target

75% 80% Achieved

Successful course completion Performance achievement: all targets were achieved. 80% of domestic students successfully completed their courses in 2011, and targets were achieved at all levels of study. These indicators measure the proportion of all domestic students enrolled in 2011 who successfully completed and passed courses or papers leading to a recognised qualification. Whitireia achieved all targets for domestic students to complete their courses. As the following figures show, course completions were highest for students in programmes at Level 4 and above. According to provisional TEC data, Whitireia has the fourth highest course completion rate in the ITP sector for 2011. Final TEC data for 2011 is expected in August 2012.

Successful course completion (for domestic students with SAC EFTS) 2011 target

2011 achievement

Successful course completion rate (overall)

75%

80%

Successful course completion rate Levels 1-3

69%

74%

Successful course completion rate Level 4 and above

76%

81%

Key performance indicator

Course completion for domestic students with SAC EFTS 100% 80% 60% 40% 20% 0% Successful course completion rate

Successful course completion rate Levels 1-3

Successful course completion rate Level 4 and above

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Successful qualification completion

Successful qualification completion (overall)

Target :

57% * 70% Achieved :

Performance achievement: all targets were achieved. 70% of domestic students successfully completed their qualifications in 2011, and targets were achieved at all levels of study. These indicators measure the proportion of all domestic students enrolled in 2011, who successfully completed a recognised qualification such as a degree, diploma or certificate. Although qualification completion rates have not been fully finalised, the target for domestic students to complete qualifications has already been achieved for 2011. By January this year, 67% of students had successfully completed qualifications. By 1 March, the qualification completion rate was 70% and this could rise a little as more degree awards are finalised. High qualification completion rates for domestic students reflect high rates of qualification completions for all Whitireia students, as outlined in Objective 2 of this report. Whitireia has the third highest qualification completion rate in the ITP sector, according to provisional TEC data. Final TEC data for 2011 is expected in August 2012.

Successful qualification completion (for domestic students with SAC EFTS) 2011 target

2011 achievement

Qualification completion rate (overall)

57%

70%*

Qualification completion rate Levels 1-3

50%

69%*

Qualification completion rate Level 4 and above

60%

70%*

Key performance indicator

*2011 results are provisional and not yet final

Qualification completion for domestic students with SAC EFTS 100% 80% 60% 40% 20% 0% Qualification completion rate

Qualification completion rate Levels 1-3

Qualification completion rate Level 4 and above

Student retention and progression Performance achievement: targets for overall student retention were achieved, with a student retention rate of 64%*. Student rentention (overall)

Target:

50% * 64%

The student retention rate measures the percentage of individual domestic students enrolled in one year who successfully completed a qualification or re-enrolled at Whitireia in the following year. An important component of student retention rates is the number of students who successfully completed qualifications in the previous year. An increase in qualification completions at Whitireia, as outlined in Objective 2, has contributed to this higher retention rate in 2011. Whitireia has the second highest retention rate in the ITP sector, according to provisional TEC data. Final TEC data for 2011 is expected in August 2012.

Achieved:

Student progression (overall)

Target:

35% * 30% Achieved:

Student retention and progression (domestic students with SAC EFTS) Key performance indicator

2011 target

2011 achievement

Student retention rate (overall)

50%

64%*

Student progression rate (overall)

35%

30%*

Student progression Levels 1-3

35%

28%*

*2011 results are provisional and not yet final

Student retention and progression for domestic students with SAC EFTS 100% 80% 60% 40% 20% 0% Student retention rate

Student progression

Student progression Levels 1-3

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Student progression rates measure the percentage of Whitireia domestic students who completed a qualification in one year and then, within the next 12 months, enrolled in a higher level qualification at the same or different institution. A possible explanation for not achieving the progression target is that Whitireia has relatively high rates of qualification completion, and these graduates are likely to gain employment. Therefore, graduates do not necessarily re-enrol for study in the following year, as measured by this progression rate. According to provisional TEC data, Whitireia ranks eighth in the ITP sector for student progression. Final TEC data for 2011 is expected in August 2012.

Educational Performance of Māori Students Successful course completion rate Level 4 and above

Performance achievement: targets were achieved for Māori students to complete courses successfully and to complete qualifications except for qualification completion at Level 4 and above.

Target:

These indicators measure the achievement of Māori students at different levels of the National Qualifications Framework.

62% 74% Achieved:

Qualification completion rate Level 4 and above

Target:

53% * 49% Achieved:

Course completion rates for Māori students were above target in 2011 as outlined in the table on page 33. However, the qualification completion target for Level 4 and above was not achieved because of a timing issue with the Bachelor of Nursing Māori. The Bachelor of Nursing Māori is a three year degree with a high number of Māori students. This is a new degree that was in its second year of operation in 2011. Māori students were generally successful in passing their papers (courses) for this degree in 2011. However, they could not complete the full qualification in 2011 because it was only in its second year of delivery. The qualification completion rate for Māori students will be considerably higher when the third year of this degree is complete. Without the Bachelor of Nursing Māori, the qualification completion at Level 4 and above would be 54% and the target would therefore be achieved. In the longer term, Whitireia aims for Māori students to achieve at around the same rate as all students. Whitireia has established a Māori strategy in order to improve educational participation and outcomes for Māori at Whitireia. This strategy will lead, inform, influence, guide and direct all activities of the Polytechnic, which have an impact (both direct and indirect) on Māori educational participation and achievement. The first stage of the strategy will be implemented in 2012, it is expected to impact on the educational success of Māori in future years.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Educational performance of MÄ ori students with SAC EFTS 2011 target

2011 achievement

Successful course completion rate Levels 1-3

58%

59%

Successful course completion rate Level 4 and above

62%

74%

Qualification completion rate Levels 1-3

41%

52%*

Qualification completion rate Level 4 and above

53%

49%*

Key performance indicator

*2011 results are provisional and not yet final

Educational performance for MÄ ori students with SAC EFTS 100% 80% 60% 40% 20% 0% Successful course completion rate Levels 1-3

Successful course completion rate Level 4 and above

Qualification completion rate Levels 1-3

Qualification completion rate Level 4 and above

Educational Performance of Pacific Students Successful course completion rate Level 4 and above

Target:

62% 73% Achieved:

Performance achievement: all targets were achieved for Pacific students to complete courses and complete qualifications successfully. These indicators measure the achievement of Pacific students at different levels of the National Qualifications Framework. All targets were achieved in 2011, Pacific students achieved above target in higher and lower level programmes. Although Pacific students have achieved at relatively high levels at Whitireia, the Polytechnic aims to improve educational outcomes for Pacific students. A Pacific strategy has been established with four targeted goals: Goal 1: Improved educational outcomes Goal 2: Effective learning environment Goal 3: Foster Pacific identity and leadership Goal 4: Develop collaborative partnerships The strategy will be introduced in 2012, it is expected to improve Pacific educational achievement in future years.

Qualification completion rate Level 4 and above

Key performance indicator

Target:

53% * 58% Achieved:

2011 target

2011 achievement

Successful course completion rate Levels 1-3

58%

74%

Successful course completion rate Level 4 and above

62%

73%

Qualification completion rate Levels 1-3

41%

69%*

Qualification completion rate Level 4 and above

53%

58%*

*2011 results are provisional and not yet final Educational performance of Pacific students with SAC EFTS 100% 80% 60% 40% 20% 0% Successful course completion rate Levels 1-3

Successful course completion rate Level 4 and above

Qualification completion rate Levels 1-3

Qualification completion rate Level 4 and above

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Educational Performance of Students under 25 Successful course completion rate Level 4 and above

Target:

73% 78% Achieved:

Qualification completion rate Level 4 and above

Target:

48% * 58% Achieved:

Performance achievement: all targets were achieved for students under 25 years of age to complete courses and complete qualifications successfully. These indicators measure the achievement of students under 25 years at different levels of the National Qualifications Framework. All targets were achieved in 2011, young students achieved above target in higher and lower level programmes. In the longer term, Whitireia aims to further improve educational outcomes for these students. Whitireia has developed a Youth strategy with the following goals: • Young people aged 16-19 participate in programmes at Whitireia in increasing numbers • More young people aged under 25 achieve qualifications at Level 4 and above at Whitireia • Young Māori and Pacific people participate at the same rate as, and achieve as well as, other students The first stage of this strategy will be introduced in 2012, it is expected to impact on the educational success of students under the age of 25 in future years. 2011 target

2011 achievement

Successful course completion rate Levels 1-3

63%

71%

Successful course completion rate Level 4 and above

73%

78%

Qualification completion rate Levels 1-3

50%

66%*

Qualification completion rate Level 4 and above

48%

58%*

Key performance indicator

*2011 results are provisional and not yet final Educational performance of students under 25 with SAC EFTS 100% 80% 60% 40% 20% 0% Successful course completion rate Levels 1-3

Successful course completion rate Level 4 and above

Qualification completion rate Levels 1-3

Qualification completion rate Level 4 and above

Educational Performance: Embedded Literacy and Numeracy Embedded literacy and numeracy in courses at Levels 1-3

Target:

90% 98% Achieved:

Target SURPLUS:

1.9% 4.6% Achieved SURPLUS:

Performance achievement: the target was achieved. 98% of courses at Levels 1-3 offered embedded literacy and numeracy in 2011. This indicator measures the teaching of literacy and numeracy as an integral part of teaching in vocational qualifications at Levels 1-3. Whitireia has had a literacy and numeracy plan for the last five years, and the successful implementation of this plan has led to high rates of embedded literacy and numeracy in Whitireia courses at Levels 1-3. Key performance indicator Proportion of Levels 1-3 courses offered that contain embedded literacy and numeracy

2011 target

2011 achievement

90%

98%

2011 target

2011 achievement

Low

Financial Key performance indicator TEO risk rating against the Financial Monitoring Framework % of income from non-government sources

54%

55%

Surplus %

1.9%

4.6%

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

2008 – 2011 percentage of surplus 7.00% 6.00% 4.00% 3.00% 2.00% 1.00% 0% -1.00% -2.00%

Surplus %

2008

2009

2010

2011

-1.1%

3.1%

6.5%

4.6%

The group financial suplus of $2.7 million (4.6% of gross income), for 2011, was derived from the following: • Group operating surplus $2.6 million • plus loss on revaluation of Lindale campus $80,000 • less gain on revaluation of Commerce Crescent $5,000 • plus increase in sick leave provision $54,000 • plus increase in lease make-good provision $19,000 • Group surplus excluding non-operating items $2.7 million Extent of improvements in attributes as per Capital Assets Management Services Improvement Plan Target Shift to moderate for levels of service attribute Achieved The original assessment was conducted by a third party on behalf of TEC. At the time of writing this Annual Report no further assessment has been undertaken. Progress has been made in this area through the following: • Capital and asset management procedures revised • Working with service areas to document the services provided and the levels to which they will be provided • A new campus plan has been developed which identifies how improvements can be made to the student experience • A Capital Assets Manager has been appointed to oversee the development plan and to further drive the improvement in capital asset management services (CAMS).

Performance Measures Definitions Performance measures that the Council considers will enable the preparation of a Statement of Service Performance for the purposes of Section 159YD.2 (a) of the Education Act 1989 are listed below. Students enrolled Usually expressed as equivalent full-time students (EFTS) for the Polytechnic Students with Student Achievement Component (SAC) funding Students recorded in the SDR with funding code “01” Māori students Students at the time of enrolment who have identified themselves as Māori Pacific students Students at the time of enrolment who have identified themselves as Pacific Students under 25 years In successful course completion, students who are aged 24 years or younger as at 1 July 2011 as provided by Tertiary Education Commission (TEC) Workspace. In qualification completion, students who are aged 24 or younger as at 8 February 2012 when information was extracted from AwareLite. This differs from TEC rules of students who are aged 24 years or younger as at 1 July 2011, due to a system issue of the software provider. Participation This measures the proportion of EFTS delivered for target groups of students in a calendar year Participation formula Total EFTS delivered for a group of interest (i.e. Māori) in 2011 Total EFTS delivered in 2011

x 100

Successful course completion rate Successful course completion rate relates to courses, papers or modules that lead to a recognised qualification. The rate is an EFTS weighted metric that takes into account the workload of the course and EFTS delivered during the total period of the course enrolment. Successful course completion rate formula EFTS delivered for the total number of successfully completed course enrolments ending in 2011 EFTS delivered for the total number of course enrolments ending in 2011

x 100

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Qualification completion rate A qualification is completed when a student successfully completes all the requirements for the award of a qualification, such as a degree, diploma or certificate. The rate is an EFTS weighted metric that takes into account the relative size of the different qualifications. The 2011 qualification completion figures given in this report were those at 2 March 2012. These figures are still provisional and are likely to increase as more awards are validated and recorded. This report also refers to TECâ&#x20AC;&#x2122;s provisional figures as at 30 January 2012 where these are available and relevant. Qualification completion rate formula (Sum of qualification completions in 2011 multiplied by EFTS value of the qualification) EFTS delivered for the total number of course enrolments ending in 2011

x 100

Student retention rate This measure is based on the proportion of individual students (not EFTS) enrolled in one year who either re-enrol in any course in the following year or successfully complete their qualification. Student retention rate formula Students re-enrolled in 2011 or completed in 2011 or 2010 Students with some portion of an enrolment in 2010

x 100

Student progression This measures the progression of students who complete a qualification and move on within 12 months to pursue a qualification at a higher level either at Whitireia or another tertiary education provider in New Zealand. This data is not finalised at present and will be supplied by TEC in July 2012. For Levels 1-3, the indicator measures student re-enrolment at Level 4 or above Student progression formula: Number of students enrolled at a higher qualification level within 12 months following the qualification completion

x 100

Number of students completing a qualification at Levels 1-3 in previous year

Levels of study This refers to Levels 1-10 on the National Qualifications Framework (NQF). For more information visit the NZQA website: http://www.nzqa.govt.nz/studying-in-new-zealand/nzqf/nzqf-levels Percentage of income from non-government sources Formula Income from total non-government sources Total income received

x 100

Surplus percentage Formula Total revenue Total operational expenses

x 100

Graduate satisfaction survey The survey was carried out over a period of three weeks in May 2011 by phoning all domestic graduates. 49% of the 1,840 domestic graduates participated in this graduate phone survey. Results were entered into a database, analysed and reported back to Deans, Programme Managers, Executive and Whitireia Council. Embedded literacy and numeracy Courses in NQF Levels 1-3 that are offered to SAC funded students within programmes at NQF Levels 1-3 Formula Number of â&#x20AC;&#x153;Yâ&#x20AC;? LLN flag courses at NQF Levels 1-3 within programmes at NQF Levels 1-3 Total number of courses at NQF Levels 1-3 within programmes at NQF Levels 1-3

x 100

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Financial Statements The accompanying accounting policies and notes form an integral part of these financial statements

Financial Statements

Statement of Financial Performance for the year ended 31 December 2011 Polytechnic

Note

Group

Actual 2011 $'000

Budget 2011 $'000

Actual 2010 $'000

Actual 2011 $'000

Actual 2010 $'000

Revenue Government grants

25,862

25,353

26,390

26,458

26,886

Tuition fees

25,954

26,348

23,977

26,899

24,939

856

450

707

880

726

5,006

4,798

3,472

4,254

3,619

57,683

56,949

54,566

58,496

56,190

Interest income Revenue from other operating activities Change in fair value of investment property Total revenue Operating expenses Personnel costs

29,950

29,307

27,628

30,460

28,725

Depreciation expenses

3,184

3,706

3,198

3,179

3,259

Amortisation expenses

276

181

198

276

198

Impairment of held for sale asset

Course related expenses

3,040

3,240

2,751

3,063

2,828

Occupancy costs

4,881

4,553

4,033

4,881

4,354

Project expenditure

5,189

5,896

5,287

5,239

5,425

425

382

357

425

358

8,153

7,883

7,341

8,313

7,599

55,178

55,148

50,793

55,916

52,746

2,505

1,801

3,773

2,580

3,444

2,505

1,801

3,773

2,580

3,444

Trading activities Other expenses

Total operating expenses Surplus before taxation Taxation Surplus after taxation

The accompanying accounting policies and notes form an integral part of these financial statements

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Statement of Comprehensive Income for the year ended 31 December 2011 Polytechnic

Note

Surplus / (deficit)

Group

Actual 2011 $’000

Budget 2011 $’000

Actual 2010 $’000

Actual 2011 $’000

Actual 2010 $’000

2,505

1,801

3,773

2,580

3,444

(2,620)

(3,015)

(2,620)

(3,015)

(2,620)

(3,015)

(2,620)

(510)

1,801

1,153

(435)

824

Other comprehensive income Loss on property revaluations

Total other comprehensive income Total comprehensive income

(3,015)

Statement of Changes in Equity for the year ended 31 December 2011 Polytechnic

Note

Balance at 1 January

Group

Actual 2011 $’000

Budget 2011 $’000

Actual 2010 $’000

Actual 2011 $’000

Actual 2010 $’000

64,254

67,899

62,651

63,823

62,549

Comprehensive income Surplus / (deficit)

2,505

1,801

3,773

2,580

3,444

(3,015)

(2,620)

(3,015)

(2,620)

(510)

1,801

1,153

(435)

824

Capital contributions from the Crown

450

Reclassification of reserves from Whitireia Foundation

125

Total non-comprehensive income items

450

125

450

63,744

69,700

64,254

63,513

63,823

Other comprehensive income Total comprehensive income Non-comprehensive income items

Balance at 31 December

The accompanying accounting policies and notes form an integral part of these financial statements

Statement of Financial Position as at 31 December 2011 Polytechnic

Note

Group

Actual 2011 $’000

Budget 2011 $’000

Actual 2010 $’000

Actual 2011 $’000

Actual 2010 $’000

Assets Current assets Cash and cash equivalents

6,312

3,312

6,541

6,434

7,168

Debtors and other receivables

6,726

3,402

3,184

6,729

3,219

Inventories

172

Prepayments

Taxation

Loan to controlled entities

1,067

1,226

7,000

11,000

7,339

11,316

20,202

14,878

22,123

20,677

21,875

Financial assets in the nature of investments Total current assets Non-current assets Financial assets in the nature of investments

1,356

756

Property, plant and equipment

61,411

67,908

55,751

61,376

55,842

Intangible assets

538

234

213

1,298

973

Investment properties

280

255

275

280

275

Property held for sale

1,570

1,650

1,570

1,650

Total non-current assets Total assets

65,155

69,153

58,645

64,534

58,750

85,357

84,031

80,768

85,211

80,625

3,227

1,919

2,925

3,307

3,021

Liabilities Current liabilities Creditors and other payables

Special accounts

216

Revenue received in advance

12,128

9,779

10,401

12,128

10,401

Employee entitlements

2,951

2,342

2,721

2,988

2,793

Provisions

233

Loan from controlled entity

18,622

14,040

16,143

18,707

16,431

Total current liabilities Non-current liabilities Employee entitlements

270

291

293

270

293

Provisions

2,721

Total non-current liabilities

2,991

291

371

2,991

371

Total liabilities

21,613

14,331

16,514

21,698

16,802

Net assets

63,744

69,700

64,254

63,513

63,823

Equity General funds

45,868

46,189

43,363

45,625

42,919

Property revaluation reserve

17,876

23,511

20,891

17,876

20,891

Restricted reserves

63,744

69,700

64,254

63,513

63,823

Total equity 44

The accompanying accounting policies and notes form an integral part of these financial statements

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Statement of Cash Flows for the year ended 31 December 2011 Polytechnic

Note

Group

Actual 2011 $’000

Budget 2011 $’000

Actual 2010 $’000

Actual 2011 $’000

Actual 2010 $’000

Receipt of Government grants

25,101

25,353

26,382

25,724

26,878

Receipt of student tuition fees

25,374

26,348

24,363

26,319

25,423

5,116

4,797

3,492

3,738

3,639

930

450

668

954

759

(11)

Cash flows from operating activities

Receipt of other ancilliary income Interest received Taxation paid GST

248

(844)

293

229

242

Payment to employees

(29,743)

(29,319)

(27,042)

(30,288)

(28,105)

Payments to suppliers

(21,303)

(21,941)

(19,654)

(21,536)

(20,395)

5,723

4,844

8,502

5,129

8,441

(9,351)

(12,100)

(2,502)

(9,239)

(2,590)

(601)

(95)

(601)

(855)

Purchase of financial assets in the nature of investments

(6,082)

(5,017)

Proceeds from sale of property, plant and equipment

509

4,000

6,057

3,977

(5,952)

(6,043)

(8,170)

(5,863)

(7,953)

Capital contribution

450

Net cash flows from financing activities

450

Net (decrease) / increase in cash and cash equivalents

(229)

(1,199)

782

(734)

938

Cash and cash equivalents at the beginning of the period

6,541

4,511

5,759

7,168

6,230

6,312

3,312

6,541

6,434

7,168

Net cash flows from operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets

Sales of financial assets in the nature of investments Net cash flows used in investing activities Cash flows from financing activities

Cash and cash equivalents at the end of the period

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. 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 other primary financial statements. The accompanying accounting policies and notes form an integral part of these financial statements

Reconciliation from the net (deficit) / surplus to the net cash flows from operations

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

2,505

3,773

2,580

3,444

Depreciation

3,184

3,198

3,179

3,259

Amortisation

276

198

276

198

(5)

Surplus / (deficit) from the statement of comprehensive income Adjustments for:

Fair value increase in investments Impairment of assets held for sale Non-cash lease inducements Total non-cash items

1,347

4,882

3,396

4,877

3,457

(106)

(3,542)

(2,457)

(3,510)

(2,289)

(73)

(11)

626

Add / less movements in working capital items (Increase) / decrease in inventories (Increase) / decrease in trade and other receivables (Increase) / decrease in prepayments Increase / (decrease) in taxation Increase / (decrease) in loan to controlled entity Increase / (decrease) in trade and other payables

(690)

536

(733)

541

Increase / (decrease) in revenue received in advance

1,727

2,752

1,727

2,752

207

608

191

642

(1,664)

1,333

(2,328)

1,540

5,723

8,502

5,129

8,441

Increase / (decrease) in employee entitlements Net movement in working capital items Net cash flow from operating activities

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Notes to the Financial Statements 1. Statement of accounting policies for the year ended 31 December 2011 Reporting entity Whitireia Community Polytechnic (the Polytechnic) is a Tertiary Education Institution (TEI) domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989. The Polytechnic and group consists of Whitireia Community Polytechnic and its subsidiaries, Whitireia New Zealand Limited (100% owned) (formerly New Zealand Radio Training School (2003) Limited) and Whitireia Foundation (100% interest). All subsidiaries are incorporated and domiciled in New Zealand. On 27 May 2011, Whitireia Performing Arts Company Limited amalgamated with Whitireia New Zealand Limited (formerly New Zealand Radio Training School (2003) Limited). Whitireia New Zealand Limited (formerly New Zealand Radio Training School (2003) Limited) was acquired by the Poytechnic on 1 April 2010. The Polytechnic has consolidated the accounts of the Whitireia Foundation for financial reporting purposes because in substance, the Polytechnic predetermined the objectives of the Foundation at establishment and benefits from the Foundationâ&#x20AC;&#x2122;s complementary activities. The primary objective of the Polytechnic and group is to provide tertiary education services for the benefit of the community rather than making a financial return. Accordingly, the Polytechnic has designated itself and the group as public benefit entities for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements of the Polytechnic and group are for the year ended 31 December 2011. The financial statements were authorised for issue by the Council on 16 May 2012.

Basis of preparation Statement of compliance The financial statements of the Polytechnic and group have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education Act 1989, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP). These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable financial reporting standards as appropriate for public benefit entities. Measurement base The financial statements have been prepared on a historical cost basis, modified by the revaluation of investment properties, assets classified as held for sale, land and buildings. Functional and presentation accuracy The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Polytechnic and its subsidiaries is New Zealand dollars (NZ$). Changes in accounting policies There have been no changes in accounting policies during the financial year.

New and amended standards adopted by the group The following amendment to standards is mandatory for the first time for the financial year beginning 1 January 2011. •

NZ IAS 24 Related party disclosures (revised 2009), replaces NZ IAS 24 Related party disclosures (issued 2004). NZ IAS 24 (revised) will be applied for the first time in the Polytechnic and group’s 31 December 2011 financial statements. The revised standard: • Removes the previous disclosure concessions applied by the Polytechnic for arms-length transactions between the Polytechnic and entities controlled or significantly influenced by the Crown. The effect of the revised standard is more information is required to be disclosed about transactions between the Polytechnic and entities controlled or significantly influenced by the Crown. • Clarifies that related party transactions include commitments with related parties.

Standards, amendments and interpretations issued that are not yet effective and have not been early adopted Standards, amendments and interpretations issued that are not yet effective and have not been early adopted, and are relevant to the Polytechnic and group are: •

NZ IFRS 9 Financial Instruments is the first step in the process to replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus/ deficit. The new standard is required to be adopted for the year ended 31 December 2014. The Polytechnic and group has not yet assessed the effect of the new standard and expects it will not be early adopted.

•

FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments) – these were issued in May 2011 with the purpose of harmonising Australia and New Zealand’s accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The amendments must first be adopted for the year ended 31 December 2012. The Polytechnic has not yet assessed the effects of FRS-44 and the Harmonisation Amendments.

As the External Reporting Board is to decide on a new accounting standards framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS with a mandatory effective date for annual reporting periods commencing on or after 1 January 2012 will not be applicable to public benefit entities. This means that the financial reporting requirements for public benefit entities are expected to be effectively frozen in the short-term. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Significant accounting policies Basis of consolidation The group financial statements are prepared by adding together like items of assets, liabilities, equity, income, expenses and cash flows on a line-by-line basis. All significant intragroup balances, transactions, income and expenses are eliminated on consolidation. Subsidiaries The Polytechnic consolidates in the group financial statements all entities where the Polytechnic has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. This power exists where the Polytechnic controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by the Polytechnic or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary. Inter-company transactions, balances and unrealised gains on transactions between group entities are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. The cost of a business combination is measured as the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, in exchange for control of the subsidiary plus any costs directly attributable to the business combination excluding transaction costs. Any excess of the cost of the business combination over the Polytechnics interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill. If the Polytechnics interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised exceeds the cost of the business combination, the difference will be recognised immediately in the surplus or deficit as a bargain purchase. Investments in subsidiaries are carried at cost in the Polytechnics parent entity financial statements. Revenue Revenue is measured at the fair value of consideration received or receivable. Government grants and research income Government grants and research income are recognised as revenue upon entitlement. Student tuition fees Student tuition fees are recognised as revenue on a course percentage of completion basis. The percentage of completion is measured by reference to the days of the course completed as a proportion of total course days. Sale of goods Revenue from sale of goods is recognised when the product is sold to the customer. Interest and dividends Interest income is recognised using the effective interest method. Dividends are recognised when the right to receive payment has been established. Leases Finance leases A finance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred.

At the commencement of the lease term, finance leases are recognised as assets and liabilities in the statement of financial position at the lower of the fair value of the leased item or the present value of the minimum lease payments. The finance charge is charged to the surplus or deficit over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Polytechnic and group will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life. Operating lease 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. 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. Debtors and other receivables Short-term debtors and other short-term receivables are recorded at fair value less any provision for impairment. Foreign currency transactions Foreign currency 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 surplus or deficit. Other financial assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit. Financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Polytechnic and group has transferred substantially all the risks and rewards of ownership. Financial assets are classified, for the purposes of measurement, as loans and other receivables. Classification of the financial asset depends on the purpose for which the instruments were acquired. 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 the balance date. After initial recognition loans and receivables are measured at amortised cost using the effective interest method less any provision for impairment. Gains and losses when the asset is impaired or de-recognised are recognised in the surplus or deficit.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Impairment of financial assets At each balance date, the Polytechnic and group assesses whether there is any objective evidence that a financial asset or group of assets is impaired. Any impairment losses are recognised in surplus or deficit. Loans and receivables (including cash and cash equivalents and debtors and other receivables) Impairment of a loan or a receivable is established when there is objective evidence that the Polytechnic and group will not be able to collect amounts due according to the original terms of the debt. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and the default in payments are considered indicators that the asset is impaired. The amount of the impairment is the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. 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 surplus or deficit. When the receivable is uncollectible, it is written-off against the allowance account. Overdue receivables that have been renegotiated are reclassified as current (i.e. not past due). For other financial assets, impairment losses are recognised directly against the instruments carrying amount. 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 surplus or deficit in the period of the write-down. Property, plant and equipment Property, plant and equipment consists of the following asset classes land, buildings, plant and machinery, motor vehicles, computer hardware, furniture and fittings and artwork, library collection, office equipment, teaching equipment, leasehold improvements, communication systems and signage. Land is measured at fair value and buildings are measured at fair value less accumulated depreciation and impairment losses. All other asset classes are measured at cost or valuation, less any accumulated depreciation and impairment losses. Revaluations Land and buildings are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value at least every two years. The carrying values of revalued assets are assessed bi-annually by independent valuers to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the off-cycle asset classes are revalued. Land and buildings revaluation movements are accounted for on a class of asset basis. The net revaluation results are credited or debited to other comprehensive income and is accumulated to an asset revaluation reserve in equity for that class of asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Polytechnic and group and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. 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 surplus or deficit. When revalued assests land and buildings are sold, the amounts included in property revaluation reserves in respect of those land and building assets are transferred to general funds. Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment other than land and work in progress at rates that will write off the cost, (or valuation) of the assets to their residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Asset class

Life

Rate

Buildings

10 - 50 years

2% - 10% per annum

Plant and machinery

8 - 10 years

10% - 12.5% per annum

Motor vehicles

5 years

20% per annum

Computer hardware

5 years (2010: 4 years)

20% (2010: 25%) per annum

Furniture and fittings

10 years

10% per annum

Library collection

5 - 8 years

12.5% per annum

Office equipment

5 years

20% per annum

Teaching equipment

5 years

20% per annum

Leasehold improvements

1 - 12 years

8% - 100% per annum

Communication systems

4 years (2010: 5 years)

25% (2010: 20%) per annum

Signage

4 years

25% per annum

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful lives of the improvements, whichever is the shorter. The unexpired period of the lease includes any rights of renewal where management considers it reasonably certain that these rights be exercised. The residual value and useful life of an asset is reviewed and adjusted if applicable, at each financial year end.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Intangible assets Software acquisition and development Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use to specific software. Costs that are directly associated with the development of software for internal use, are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Course development costs Course development costs relate to development of educational courses and are capitalised if purchased wholly from other institutes of learning. No courses have been purchased as such, at balance date. Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is de-recognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Asset Class

Life

Rate

Computer software

3 years (2010: 5 years)

33% (2010: 20%) per annum

The amortisation period and amortisation method for each class of intangible asset having a finite life is reviewed at each financial year end. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the surplus or deficit when the asset is de-recognised. Impairment of property, plant and equipment and intangible assets Intangible assets that have an indefinite useful life, or not yet available for use, are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When there is an indicator of impairment the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the future economic benefits and service potential are not primarily dependent on the asset’s ability to generate net cash inflows and where the Polytechnic and group would, if deprived of the asset, replace its remaining future economic benefits or service potential. The value in use for cash-generating assets is the present value of expected future cash flows.

If an assetâ&#x20AC;&#x2122;s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written-down to the recoverable amount. For revalued assets the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the revaluation reserve in equity for that same class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the asset revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount the reversal of an impairment loss is recognised in the surplus or deficit. Investment properties Properties held for sale or leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. Property held to meet service delivery objectives is classified as property, plant and equipment. Investment property is measured initially at its cost, including transaction cost. Subsequent to initial recognition, investment properties is measured at fair value as determined annually by an independent valuer. Gains and losses arising from a change in the fair value of investment properties are recognised in the surplus or deficit. Creditors and other payables Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. Employee entitlements Short-term employee entitlements Employee benefits that are due and 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 and 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 unused sick leave entitlement that can be carried forward at balance date, to the extent it will be used by staff to cover those future absences.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of period in which the employee renders the related service, such as long service leave and retirement gratuities, 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 market yields on Government Bonds at balance date with terms to maturity that match, as closely as possible, the estimated future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees. Presentation of employee entitlements Sick leave, annual leave, vested long service leave, and non-vested long service leave and retirement gratuities expected to be settled within 12 months of the balance date, are classified as a current liability. All other employee entitlements are classified as a non-current liability. Superannuation schemes Defined contribution schemes Obligations for contributions to KiwiSaver and the Government Superannuation Fund are accounted for as defined contribution schemes recognised as an expense in the surplus or deficit as incurred. Provisions A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included as “finance costs”. Equity Equity is measured as the difference between total assets and total liabilities. Equity is dis-aggregated and classified into a number of components. The components of equity are: •

General funds;

•

Property revaluation reserves;

•

Fair value through comprehensive income reserves; and

•

Restricted reserves.

Restricted reserves Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Polytechnic. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. Property revaluation reserves This reserve relates to the revaluation of property, plant and equipment to fair value.

Goods and Services Tax (GST) All items in the financial statements are stated exclusive of GST, except for debtors and other receivables and creditors 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. The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from, the IRD, including GST relating to investing and financing activities, is classified as net operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. Income Tax Whitireia Community Polytechnic is exempt from income tax, pursuant to section 55BA of the Income Tax Act 2007. Whitireia Foundation is exempt from income tax, pursuant to sections CW 41 and 42 of the Income Tax Act 2007. However, Whitireia New Zealand Limited does not qualify for any exemption from income tax. The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance date where operations result in generating taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Budget figures The budget figures are those that are approved by the Council at the start of the financial year. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by the Council in the preparation of the financial statements. Comparative balances Sundry expenses, equipment lease costs, motor vehicle expenses, bank charges, export education levy, postage, immigration visa fees, international contacts activities and consumables have been separately disclosed in the current year. As a result, comparative balances relating to sundry expenses, equipment lease costs, motor vehicle expenses, bank charges, export education levy, postage, immigration visa fees, international contacts activities and consumables have been reclassified to align with current year classifications. The net effect on the statement of financial performance is nil as the adjustment was to shift $602,000 from other operating expenses to sundry expenses, equipment lease costs, motor vehicle expenses, bank charges, export education levy, postage, immigration visa fees, international contacts activities, consumables for the Polytechnic and $592,000 from other

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

operating expenses to sundry expenses, equipment lease costs, motor vehicle expenses, bank charges, export education levy, postage, immigration visa fees, international contacts activities and consumables for the group (Refer note 4). Change in fair value of investment properties has been separately disclosed in the current year. As a result, comparative balances relating to change in fair value of investment property have been reclassified to align with current year classifications. The net effect on the statement of financial performance is nil as the adjustment was to shift $20,000 from revenue from other operating activities to change in fair value of investment properties. Critical accounting estimates and assumptions In preparing these financial statements the 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 of future events that are believed to be reasonable under the circumstances. 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: Property revaluations Note 9 provides information about the estimates and assumptions exercised in the measurement of revalued land and buildings. Estimated impairment of goodwill The group tests annually whether goodwill has suffered any impairment, in accordance with the stated accounting policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates (Refer note 10). Critical judgements in applying accounting policies Management have exercised the following critical judgements in applying accounting policies for the year ended 31 December 2011: Crown owned land and buildings Property in the legal name of the Crown that is occupied by the Polytechnic and group is recognised as an asset in the statement of financial position. The Polytechnic and group consider it has assumed all the normal risks and rewards of ownership of this property despite legal ownership not being transferred and accordingly it would be misleading to exclude these assets from the financial statements. 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, the Polytechnic and group accounts for the funding as a capital contribution directly in equity. Information about capital contributions recognised in equity is disclosed in note 18. Breach of statutory deadline The Crown Entities Act requires the audit of the Annual Report to be completed within four months after the financial year end. This requirement was not achieved due to delays in finalising the annual financial statements.

Income

Tertiary Education Organisation Capability (TEOC) funding Performance-based research funding Other grants Total government grants Tuition fees

Fees from domestic students Fees from international students Total tuition fees iii.

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

19,512

18,010

20,108

18,506

5,223

6,261

5,223

6,261

Government grants Student achievement component (SAC) funding

ii.

Polytechnic

143

1,054

1,976

1,054

1,976

25,862

26,390

26,458

26,886

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

11,044

10,276

11,989

11,239

14,910

13,701

14,910

13,700

25,954

23,977

26,899

24,939

Other income Polytechnic

Rental income Donations received Bookshop income Education service contracts Gain on sale of property, plant and equipment Other income Total other income

Personnel Costs

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

113

121

113

382

367

382

367

3,069

1,625

2,253

1,841

1,441

1,359

1,455

1,284

5,006

3,472

4,254

3,619

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Academic salaries

16,119

14,119

16,284

14,795

General salaries and wages

13,576

12,679

13,955

13,093

Defined contribution plan employer contributions Increase / (decrease) in employee entitlements Total personnel costs

207

762

172

767

29,950

27,628

30,460

28,725

Employer contributions to defined contribution plans include contributions to KiwiSaver and the Government Superannuation Fund. 58

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Other Expenses

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

130

136

Advertising and public relations

799

704

820

740

Bad debts expensed

221

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

Bank charges Catering Commissions Consultants and legal fees Consumables

204

200

210

202

2,246

2,013

2,246

2,013

448

336

452

344

Councillors fees

146

105

146

105

Equipment lease

172

Export education levy

Fees and subscriptions

242

266

245

268

Graduation costs

126

125

132

131

1,088

980

1,103

994

180

174

183

177

Immigration visa fees Information technology Insurance premiums Interest paid

International contacts activities

Motor vehicle expenses

367

462

392

501

152

163

153

164

Sundry expenses

195

165

203

171

Travel and accomodation

677

577

691

594

Whitireia scholarships

103

137

103

137

Other operating expenses

165

205

167

335

8,153

7,341

8,313

7,599

New Zealand Qualifications Authority Office costs Postage Professional development fees Repairs and maintenance - information technology Staff awards

Total other expenses

Cash and Cash Equivalents

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Cash at bank and in hand

3,312

4,541

3,434

5,168

Term deposits with original maturities less than three months

3,000

2,000

3,000

2,000

6,312

6,541

6,434

7,168

Total cash and cash equivalents

The carrying value of cash at bank, call deposits and term deposits with original maturities less than three months approximate their fair value. Cash and cash equivalents include the following for the purposes of the statement of cash flows: Polytechnic

Cash at bank and in hand Term deposits with maturities less than three months Total cash and cash equivalents

Debtors and Other Receivables

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

3,312

4,541

3,434

5,168

3,000

2,000

3,000

2,000

6,312

6,541

6,434

7,168

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

5,159

2,049

5,159

2,049

(42)

5,117

2,049

5,117

2,049

Student receivables Student fees receivables Less: provision for impairment Net student fee receivables Other receivables Other debtors and receivables

1,609

1,135

1,612

1,170

6,726

3,184

6,729

3,219

Fair value Student fees are due before a course commences or are due on enrolment if the course has already begun. Student fee receivables are non-interest bearing and are payable 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.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Impairment The ageing profile of student fee receivables at year end is detailed below: Polytechnic

Group

Gross $’000

Impairment $’000

Net $’000

Gross $’000

Impairment $’000

Net $’000

2,152

285

2011 Not past due Past due 1 – 30 days Past due 31 – 60 days

Past due 61 – 90 days

108

Past due over 90 days Total

2,560

5,159

5,117

5,159

5,117

Due to large number of student fee receivables, the impairment assessment is performed on a collective basis, based upon an analysis of past collection history and debt write-offs. Due to this information being included for the first time in these financial statements, comparative amounts are not available. Movements in the provision for impairment of student fee receivables are as follows: Polytechnic

At 1 January

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Additional provisions made during the year

At 31 December

Inventories

Held for resale Materials and consumables Total inventories

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

167

172

Financial Assets in the Nature of Investments

Effective interest rate %

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Maturity

Current Deposits with banks Westpac

4.3%

Various

3,000

ASB - Foundation

4.5%

2-Oct-12

339

316

Bank of New Zealand

4.9%

Various

4,000

7,000

4,000

7,000

Kiwibank

5.0%

Various

4,000

7,000

11,000

7,339

11,316

1,346

746

Non-current Investment in controlled entity (at cost) Shares in unlisted entities (at cost)

1,356

756

The deposit with banks classified as current assets are those with original maturing periods of greater than three months and less than twelve months. The investment in controlled entity is for Whitireia New Zealand Limited (100% owned). On 27 May 2011, Whitireia Performing Arts Company Limited amalgamated with Whitireia New Zealand Limited through a short form amalgamation pursuant to section 222 of the Companies Act (1993). The primary purpose of the amalgamation was to simplify the Whitireia Community Polytechnics group structure.

Transfers

Net book value

Accumulated depreciation at 31 December 2011 45,617

1,723

(4,085)

(51)

104

(754) 0

(3,435)

5,808

112

2,416

(1,163)

Current year depreciation

Disposals during the year

Revaluations

(1,202)

45,617

(632)

Accumulated depreciation at 1 January 2011

Accumulated depreciation

Cost / valuation at 31 December 2011

Transfers

(5,431)

Revaluations

681 (110)

192

5,125

Disposals during the year

51,488

$’000

Additions during the year

Cost / valuation at 1 January 2011

Cost / valuation

Polytechnic

Computer hardware

Land & buildings

9. Property, Plant and Equipment

1,007

(1,300)

(144)

(1,190)

2,307

0 0 0

482

1,825

$’000

Furniture, fittings & artwork

786

(1,618)

(225)

(1,393)

2,404

0 0 0

160

2,244

$’000

Library collection

400

(583)

(66)

(521)

983

0 0

(1)

237

747

$’000

Plant & machinery

143

(581)

(81)

(500)

724

0 0 0

684

$’000

Motor vehicles

(364)

(25)

(339)

0 5,659

0 822

(1,721)

(29)

(390)

(1,302)

7,380

865

(3)

4,555

1,963

$’000

Leasehold improvements

(1,716)

(280)

(1,436)

2,538

(108) 399

108

394

2,036

$’000

Teaching equipment

0 0

(2)

122

387

$’000

Office equipment

(660)

(1)

(48)

(611)

711

0 0 0

700

$’000

Communication systems

(140)

(8)

(132)

140

5,060

0 0 0 0

5,168

(345)

(20)

473

$’000

61,411

(12,768)

(43)

2,416

104

(3,184)

(12,061)

74,179

(5,431)

(136)

11,934

67,812

$’000

Work in Total progress polytechnic

140

$’000

Signage

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

(1,202)

50,286

Net book value

1,690

(3,435)

Accumulated depreciation at 31 December 2010

Write-up

Write-down

338

1,062

(753)

(4,161)

5,125

203

Reclassifications

(2)

Revaluations

(1,201)

Current year depreciation

51,488

Disposals during the year

Accumulated Depreciation at 1 January 2010

Accumulated depreciation

Cost / Valuation at 31 December 2010

0 0

Write-down

Write-up

(408)

(1,720)

(823)

Revaluations

Reclassifications

525 (1,063)

794 (510)

5,868

Additions during the year

53,747

$’000

Disposals during the year

Cost / valuation at 1 January 2010

Cost / valuation

Polytechnic

Computer hardware

Land & buildings

9. Property, Plant and Equipment

64 635

(1,190)

(3)

(205)

(121)

(861)

1,825

301

128

1,343

$’000

Furniture, fittings & artwork

851

(1,393)

(1)

(5)

(205)

(1,182)

2,244

226

1,928

$’000

Library collection

226

(521)

(138)

(67)

(354)

747

(23)

659

$’000

Plant & machinery

184

(500)

(34)

(78)

(396)

684

554

$’000

Motor vehicles

(339)

(9)

(156)

(39)

(135)

387

145

241

$’000

Office equipment

600

(1,436)

(6)

158

(256)

(1,332)

2,036

(9)

1,982

$’000

Teaching equipment

661

(1,302)

(992)

(381)

1,963

(18)

(1,180)

3,155

$’000

Leasehold improvements

(611)

(7)

105

(53)

(656)

700

(115)

789

$’000

Communication systems

(132)

(1)

(44)

(107)

140

(21)

157

$’000

Signage

473

(6)

473

$’000

55,751

(12,061)

(20)

178

(994)

1,062

(3,198)

(9,184)

67,812

357

(29)

(1,752)

(2,003)

(1,573)

2,383

70,429

$’000

Work in Total progress polytechnic

Net book value

45,617

0 1,717

(4,083)

(51)

Accumulated depreciation at 31 December 2011

Transfers

2,416

Revaluations

(752) 104

(1,163)

Current year depreciation

(3,526)

Disposals during the year

(1,202)

5,800

112

(632) 45,617

(110)

575

5,223

(5,431)

192

51,488

$’000

Accumulated Depreciation at 1 January 2011

Accumulated depreciation

Cost / valuation at 31 December 2011

Transfers out

Revaluations

Disposals during the year

Additions during the year

Cost / valuation at 1 January 2011

Cost / valuation

Group

Computer hardware

Land & buildings

9. Property, Plant and Equipment

1,016

(1,299)

(145)

(1,203)

2,315

459

1,856

$’000

Furniture, fittings & artwork

786

(1,618)

(225)

(1,393)

2,404

160

2,244

$’000

Library collection

354

(577)

(60)

(521)

931

(1)

185

747

$’000

Plant & machinery

143

(581)

(81)

(500)

724

684

$’000

Motor vehicles

(365)

(25)

(377)

403

(108)

(2)

438

$’000

Office equipment

828

(1,718)

(282)

(1,524)

2,546

108

277

2,161

$’000

Teaching equipment

5,659

(1,721)

(29)

(390)

(1,307)

7,380

900

(3)

4,499

1,984

$’000

Leasehold improvements

(660)

(1)

(48)

(611)

710

700

$’000

Communication systems

(140)

(8)

(132)

140

$’000

Signage

5,168

(345)

(20)

5,060

473

$’000

61,376

(12,762)

(77)

2,507

283

(3,179)

(12,296)

74,138

(5,431)

(136)

11,532

68,138

$’000

Work in Total progress polytechnic

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

0 (1,202) 50,286

Accumulated depreciation at 31 December 2010

Net book value

Write-up

1,697

(3,526)

338

1 0

Reclassifications

Write-down

(77)

1,062

(767)

(4,161)

5,223

203

Adjustment on consolidation

(2)

Revaluations

(1,201)

Current year depreciation

51,488

Disposals during the year

Accumulated depreciation at 1 January 2010

Accumulated depreciation

Cost / valuation at 31 December 2010

0 0

Write-down

Write-up

(408)

(1,720)

(823)

Revaluations

Reclassifications

623 (1,063)

794 (510)

5,868

Additions during the year

53,747

$’000

Disposals during the year

Cost / valuation at 1 January 2010

Cost / valuation

Group

Computer hardware

Land & buildings

9. Property, Plant and Equipment

66 653

(1,203)

(3)

(205)

(9)

(125)

(861)

1,856

301

155

1,347

$’000

Furniture, fittings & artwork

851

(1,393)

(1)

(5)

(205)

(1,182)

2,244

226

1,928

$’000

Library collection

226

(521)

(138)

(67)

(354)

747

(23)

659

$’000

Plant & machinery

184

(500)

(34)

(78)

(396)

684

554

$’000

Motor vehicles

(377)

(9)

(156)

(33)

(44)

(135)

438

145

241

$’000

Office equipment

637

(1,524)

(6)

158

(69)

(273)

(1,334)

2,161

(9)

138

2,032

$’000

Teaching equipment

677

(1,307)

(992)

(402)

(32)

1,984

(18)

(1,180)

(48)

3,203

$’000

Leasehold improvements

(611)

(7)

105

(53)

(656)

700

(115)

789

$’000

Communication systems

(132)

(1)

(44)

(107)

140

(21)

157

$’000

Signage

473

(6)

473

$’000

55,842

(12,296)

(20)

178

(188)

(994)

1,110

(3,259)

(9,218)

68,138

357

(29)

(1,752)

(2,003)

(1,621)

2,655

70,531

$’000

Work in Total progress polytechnic

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Valuation Land Land is valued at fair value using market based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the ‘unencumbered’ land value for campus land where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative impact on the value of land where the owner is unable to use the land more intensely. Restrictions on the Polytechnic and group’s ability to sell land would normally not impair the value of the land because the Polytechnic and group has operational use of the land for the foreseeable future and will substantially receive the full benefits of outright ownership. The most recent valuation of land was performed by a registered independent valuer, Bayleys Valuations Limited, and the valuation is effective as at 31 December 2011. Buildings Specialised buildings (e.g. campuses) are valued at fair value using optimised depreciated replacement cost because no reliable data is available for buildings designed for education delivery purposes. Optimised depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include: •

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

•

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

•

Estimating the remaining useful life of assets.

•

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

The most recent valuation of buildings was performed by a registered independent valuer, Bayleys Valuations Limited, and the valuation is effective as at 31 December 2011. The total fair value of property valued by Bayleys Valuations Limited at 31 December 2011 totalled $47,467,000. Restrictions on title Under the Education Act 1989, the Polytechnic and group is required to obtain the consent from the Ministry of Education to dispose of or sell off 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 land. The Polytechnic and group does not consider it practical to disclose in detail the value of land subject to these restrictions. The total amount of property, plant and equipment in the course of construction is $4,873,630 (2010: $Nil) at 31 December 2011.

10. Intangible Assets Polytechnic Software $’000

Goodwill $’000

Group

Work in progress $’000

Total $’000

Software $’000

Goodwill $’000

Work in progress $’000

Total $’000

Balance at 1 January 2011 Cost Accumulated amortisation and impairment Opening carrying amount

1,577

760

2,337

(1,364)

213

760

973

380

221

601

380

221

601

Year ended 31 December 2011 Additions Disposal Amortisation Closing carrying amount

(276)

317

221

538

317

760

221

1,298

Balance at 31 December 2011 Cost Accumulated amortisation and impairment Closing carrying amount

1,957

221

2,178

1,957

760

221

2,938

(1,640)

317

221

538

317

760

221

1,298

1,482

Balance at 1 January 2010 Cost Accumulated amortisation and impairment Opening carrying amount

(1,166)

316

760

855

Year ended 31 December 2010 Additions Disposal Amortisation Closing carrying amount

(198)

213

760

973

1,577

760

2,337

Balance at 31 December 2010 Cost Accumulated amortisation and impairment Closing carrying amount

(1,364)

213

760

973

There are no restrictions over the title of intangible assets. No intangible assets are pledged as security for liabilities.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Goodwill Goodwill of $760,000 (2010: $760,000) has been allocated to the cash generating unit (CGU) of Whitireia New Zealand Limited (2010: New Zealand Radio Training School (2003) Limited). The synergies of the business combination in which the goodwill arose are expected to be realised only by the assets of Whitireia New Zealand Limited (2010: New Zealand Radio Training School (2003) Limited). The recoverable amount of the CGU has been determined based on value in use calculations. These calculations use cash flow projections based on financial budgets approved by the Council and cover a five-year period. Cash flows beyond the five-year period have been extrapolated using an estimated growth rate. Key assumptions used for the goodwill value in use calculation: •

Funding received from the Government relating to the level of EFTS funded will remain unchanged for the foreseeable future

•

Budgeted gross margin – 20%

•

Weighted average growth rate – 0%

•

Pre-tax discount rate – 8%

These assumptions have been used for the analysis of the CGU of Whitireia New Zealand Limited (2010: New Zealand Radio Training School (2003) Limited). The Polytechnic has determined budgeted gross margin based on past performance and its expectations for the market. The weighted average growth rate used is consistent with the forecasts included in industry reports. The discount rate used is pretax and reflects specific risks relevant to the CGU. The Polytechnic believes that a reasonable possible change in any of the key assumptions would not cause the carrying amount of goodwill to exceed the recoverable amount.

11. Investment Properties

Opening balance as at 1 January (fair value) Net gain from fair value adjustment Closing balance as at 31 December

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

275

255

275

255

280

275

280

275

Commerce Crescent property is stated at fair value. Investment properties were valued on 31 December 2011 by Bayleys Valuations Limited, independent registered valuer. Bayleys Valuations Limited is a member of the New Zealand Institute of Valuers (Inc.). The valuations undertaken were based on an open market value, supported by market evidence in which assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction at the date of the valuation.

12. Property Held For Sale Following a review of the Polytechnics requirements, property currently located at Kāpiti was identified as being in excess of the Polytechnics requirements. It was therefore determined that a buyer would be sought for the property. The property is currently subject to an active marketing plan where buyers are being sought. It is expected to be disposed of during the next 12 months at a value equivalent to the current stated valuation. During the year the carrying value of the property was reduced by $80,000 in line with current market expectations. The change in value has been recognised in the statement of financial performance for the year ended 31 December 2011. Lindale complex property was valued on 31 December 2011 by Bayleys Valuations Limited, independent registered valuer. Bayleys Valuations Limited is a member of the New Zealand Institute of Valuers (Inc.).

13. Creditors and Other Payables

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

556

716

556

720

Accruals

1,586

1,372

1,666

1,445

GST

1,085

837

1,085

856

3,227

2,925

3,307

3,021

Trade payables

Total creditors and other payables

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of creditors and other payables approximates their fair value.

14. Special Accounts Special accounts represents funds held by Whitireia on behalf of others and funds provided to Whitireia by various organisations for specific projects. Polytechnic 2011 $’000

2010 $’000

2011 $’000

2010 $’000

Whitireia International Homestay Trust

Activities account

Homestay Trust

Whitireia Foundation

Group

120

Other accounts

Total special accounts

216

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

15. Revenue Received in Advance

Student fees Other revenue received in advance Total revenue received in advance

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

12,110

9,622

12,110

9,622

779

12,128

10,401

12,128

10,401

16. Employee Entitlements Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Accrued pay

358

346

361

352

Annual leave

2,461

2,297

2,495

2,363

132

Current portion

Sick leave Long service leave

2,951

2,721

2,988

2,793

Long service leave

131

146

131

146

Retirement gratuities

139

147

139

147

Total non-current portion

270

293

270

293

3,221

3,014

3,258

3,086

Total current portion Non-current portion

Total employee entitlements

Employees are entitled to annual leave pay, long service leave pay and retirement gratuities. Annual leave entitlements expected to be settled within 12 months of the balance sheet date are measured at the current rates of pay and classified as current liabilities. Entitlements related to long service leave and retirement gratuities have been calculated at present value of future cash flows. The provision is affected by a number of assumptions including expected length of service, attrition rate and salary increase.

17. Provisions

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

233

2,624

2,721

2,954

Current portion Lease inducements

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

2011

2010

Lease make-good $’000

Lease inducements $’000

Total $’000

Lease make-good $’000

Lease inducements $’000

Total $’000

Balance at 1 January

Additional provisions made

2,857

2,876

Balance at 31 December

2,857

2,954

Polytechnic and group

Lease make-good In respect of its leased property, the Polytechnic and group is required at the expiry of the lease term to makegood any damage caused to the premises from installed fixtures and fittings and to remove any fixtures and fittings installed by the Polytechnic and group. In many cases, the Polytechnic and group has the option to renew these leases, which impacts on the expected outflows to make-good these premises. Information about the Polytechnic and group lease arrangements is disclosed in note 22. Lease inducements In respect of leased property, the Polytechnic and group entered into a number of agreements to lease properties where an initial inducement was made by the lessor. These inducements included rent free holidays, contributions to fitout and cash incentives. These amounts have been recognised as a provision in the financial statements to be amortised over the lease term (Refer note 22).

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

18. Equity

Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

43,363

39,140

42,919

39,024

2,505

3,773

2,580

3,445

Capital contributions from the Crown

450

Transfers from restricted reserves

126

45,868

43,363

45,625

42,919

Balance at 1 January

20,891

23,511

20,891

23,511

Land net revaluation loss

(1,690)

Buildings net revaluation (loss)/gain

(1,274)

(2,620)

(1,274)

(2,620)

General funds Balance at 1 January Surplus / (deficit) for the year

Balance at 31 December Property revaluation reserves

Infrastructure net revaluation loss

(51)

17,876

20,891

17,876

20,891

Balance at 1 January

Appropriation of net surplus

Application of trusts and bequests

(2)

Balance at 31 December

Balance at 31 December Restricted reserves

Property revaluation reserves Property revaluation reserves consist of: Polytechnic

Land Buildings Improvements Total property revaluation reserves

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

14,001

15,691

14,001

15,691

2,053

3,327

2,053

3,327

1,822

1,873

1,822

1,873

17,876

20,891

17,876

20,891

19. Taxation Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Current tax expense

Adjustment to current tax in prior years

Income Tax expense

2,505

3,773

2,580

3,444

701

1,132

722

1,033

Component of tax expense

Relationship between tax and accounting profit Net surplus (deficit) before tax Tax at 28% (2010:30%) Plus (less) tax effect of: Non-deductable expenditure

(701)

(1,132)

(701)

(1,033)

Deferred tax not recognised

(10)

Tax losses not recognised

(13)

Tax expense

Revenue exempt from tax

The group has an unrecognised deferred tax asset of $20,375 in relation to deductible temporary differences. The group has an unrecognised deferred tax asset of $28,413 in relation to tax losses carried forward.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

20. Financial Risk Management Objectives and Policies The group’s principal financial instruments comprise bank deposits, cash and short-term deposits. The group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. Foreign currency risk The group has transactional currency exposures. Such exposures largely arise from purchases by the Polytechnics library in currencies other than the institutes’ functional currency. The group’s exposure to foreign currency risk is minimal. Commodity price risk The group’s exposure to commodity price risk is minimal. Credit risk With the exception of student fees the group trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that the group’s exposure to bad debts is not significant. With respect to the credit risk arising from the other financial assets of the group, which comprise cash and cash equivalents and available-for-sale financial assets, the group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. There are no significant concentrations of credit risk within the group. Interest rate risk The tables below illustrate the potential effect on the surplus or deficit and equity (excluding general funds) for reasonably possible market movements, with all other variables held constant, based on financial instrument exposures at balance date. 2011

2010

$’000 -50 bps Interest rate risk

$’000

surplus

Other equity

(32)

+150bps surplus

Other equity

(35)

(67)

-50 bps surplus

Other equity

(33)

105

200

(32)

(37) (69)

+150bps surplus

Other equity

(55)

165

(88)

263

(36)

108

110

(57)

170

207

(93)

278

Institute Financial assets Cash and cash equivalents Financial assets in the nature of investments Total sensitivity Group Financial assets Cash and cash equivalents Financial assets in the nature of investments Total sensitivity

The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement. For example a decrease in 50 bps is equivalent to a decrease in interest rates of 0.5%. 75

Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates: Polytechnic 2011 $’000

Group 2010 $’000

2011 $’000

2010 $’000

Counterparties with credit ratings Cash at bank and term deposits AA

13,312

17,540

13,773

18,102

13,312

17,540

13,773

18,102

Existing counterparty without defaults in the past

1,226

Total loans to related parties

1,226

Total cash at bank and term deposits Counterparties without credit ratings Loans to related parties

Debtors and other receivables Existing counterparty with no defaults in the past Total debtors and other receivables

6,726

3,184

6,729

3,905

6,726

3,184

6,729

3,905

Liquidity risk Liquidity risk is the risk that the group will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The group aims to maintain flexibility in funding by arranging committed credit lines when required. In meeting its liquidity requirements, the group maintains a target level of investments that must mature within specified timeframes.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Categories of financial assets and liabilities Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

Cash and cash equivalents (Note 5)

6,312

6,541

6,434

7,168

Student fees and other receivables (Note 6)

6,726

3,184

6,729

3,219

1,226

Loans and receivables

Loan to controlled entities (Note 23) Financial assets in the nature of investments (Note 8) Total loans and receivables

8,356

11,756

7,349

11,326

21,394

22,707

20,512

21,713

3,227

2,925

3,307

3,021

Financial liabilities measured at amortised cost Trade and other payables (Note 13) Loans from related parties (Note 23) Total financial liabilities measured at amortised cost

3,259

2,925

3,307

3,021

Trade and other payables (note 13) are all due and payable within six months of the balance date. There are no financial instruments held at fair value.

21. Capital Management The Polytechnic and the group’s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented by net assets. The Polytechnic 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. The Polytechnic manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments and general financial dealings to ensure the Polytechnic effectively achieves its objectives and purpose, whilst remaining a going concern.

22. Commitments and Contingencies Operating lease commitments – group as lessee The Polytechnic and group has entered into commercial leases on buildings where it is not in the best interest of the group to purchase these assets. These leases have an average life of between four and ten years with renewal terms included in the contracts. Renewal terms are included in the commitments where management considers it probable that these will be exercised. There are no restrictions placed upon the leasee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows: Polytechnic

Due within one year Due after one year but less than five years Due after five years

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

3,018

2,218

3,018

2,295

9,668

7,639

9,668

7,677

13,147

11,049

13,147

11,049

25,833

20,906

25,833

21,021 77

Capital commitments At 31 December the Polytechnic had the following commitments: Polytechnic

Porirua campus redevelopment Kāpiti campus redevelopment

2011 $’000

2010 $’000

16,417

1,148

17,565

Legal claims There are no outstanding legal claims (2010: Nil). Other contingent liabilities The Polytechnic and group has no contingent liabilities. Contingent assets The Polytechnic and group has no contingent assets.

23. Related Party Disclosure Terms and conditions of transactions with related parties Providing of ancillary services to and purchases from related parties is made in arm’s length transactions at both normal market prices and normal commercial terms. Outstanding balances at 31 December 2011 and 2010 are unsecured and settlement occurs in cash. Polytechnic 2011 $’000

2010 $’000

Services provided by the Polytechnic

174

180

Services provided to the Polytechnic

Unsecured loans payable to the Polytechnic

669

Subsidiary

Whitireia Performing Arts Company Limited

Whitireia New Zealand Limited (formerly New Zealand Radio Training School) Services provided by the Polytechnic

720

112

Unsecured loans payable to the Polytechnic

557

Unsecured loans payable by the Polytechnic

Transactions between Whitireia and its subsidiary include loans and advances to subsidiary. These loans and advances are unsecured, interest free with no fixed terms of repayment. For the year ended 31 December 2011, the group has not raised any provisions for doubtful debts relating to amounts owed by related parties as the payment history has been excellent (2010: $nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates in. When assessed as required, the group raises such a provision.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Crown / Government Whitireia is a wholly owned entity of the Crown. The Government influences the roles of Whitireia as well as significant source of revenue, as disclosed in note 2. In conducting its activities, Whitireia is required to pay various taxes and levies (such as GST, FBT, PAYE and 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. Whitireia is exempt from paying income tax and FBT. Whitireia 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 2011 totalled $843,000 (2010: 754,000) and have all been conducted on an armsâ&#x20AC;&#x2122; length basis. These purchases included the purchase of electricity from Meridian, Genesis and Mercury, air travel from Air New Zealand, procurement services from the Ministry of Economic Development and external audit services from Audit New Zealand. Related party transactions During the year the Polytechnic purchased consultancy services from Martin Jenkins, a consultancy firm, in which Deputy Chair of Council Dr Alan Barker is a partner. These services cost $24,328 (2010: $4,933) and were supplied on normal commercial terms. There were no unpaid invoices at year end. During the year the Polytechnic purchased services from CityLink, an IT firm, in which Council Chair Hon Roger Sowry ONZM is a Director. These services cost $94,704 (2010: Nil) and were supplied on normal commercial terms. There was an outstanding invoice of $4,577 at year end (2010: Nil). During the year the Polytechnic provided a scholarship to the Chapman Tripp Theatre Awards for which Council member Suzanne Snively ONZM is a Trustee. This cost $1,150 (2010: $Nil) and was supplied on normal commercial terms. There were no unpaid invoices at year end. During the year the Polytechnic purchased professional services from WelTec, an education provider, which has four Ministerial appointees to Council in common. These services cost $24,530 (2010: $898). During the year the Polytechnic supplied services to WelTec for $120,042 (2010: $13,928). All transactions were supplied on normal commercial terms. There was $119 payable (2010: Nil) and $150 receivable (2010: Nil) at year end. During the year the Polytechnic paid membership levies to Skills for New Zealand (ITPNZ), a representative body for Polytechnics, in which Council member Dennis Sharman is the Chair. These services cost $49,450 (2010: $48,375) and were supplied on normal commercial terms. There were no unpaid invoices at year end. During the year the Polytechnic purchased professional services from The Open Polytechnic of New Zealand, an education provider, at which Deputy Chair of Council Dr Alan Barker is Deputy Chair of Council. These services cost $3,845 (2010: $7,456). During the year the Polytechnic supplied services to The Open Polytechnic of New Zealand for $777 (2010: $986). All transactions were supplied on normal commercial terms. There were no unpaid invoices at year end (2010: $432 receivable and $1,360 payable). During 2010 the Polytechnic purchased training services and equipment hireage from Stephen Wickens & Associates Limited, a training firm, in which Trades Faculty Dean Stephen Wickens is a Director. These services cost $1,485 and were supplied on normal commercial terms. There were no unpaid invoices at year end. During 2010 the Polytechnic provided services to Career Services Rapuara, a Crown entity, in which Deputy Chief Executive Arthur Graves was the Chair. These services were for $2,573. All transactions were supplied on normal commercial terms. There were no unpaid invoices at year end.

Key management personnel compensation Polytechnic

Salaries and other short-term employment benefits Post employment benefits Total key management personnel compensation

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

808

733

808

733

845

752

845

752

Key management personnel includes the Chair, Councillors, Chief Executive and three senior management personnel (2010: two senior management).

24. Councillors Fees

2011 $

2010 $

Arthur T

14,400

10,440

Fortuin G

14,400

10,720

Sowry R (Chair)

31,761

22,956

Marshall B M

1,400

Mareko C

560

Nicols A D

840

Sharman D R

14,400

17,572

Snively S

14,400

13,395

Wilkinson R K

14,400

11,320

Falepau L

1,400

Hilliard M

1,400

Ryder L Barker A Sanga K

Crown Entities Act 2004

1,120

18,000

12,000

24,000

145,761

105,123

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

25. Employee Remuneration Polytechnic

Group

2011 $’000

2010 $’000

2011 $’000

2010 $’000

100,000 - 109,999

110,000 - 119,999

130,000 - 139,999

140,000 - 149,999

160,000 - 169,999

260,000 - 269,999

270,000 - 279,999

Total employees

26. Events After Balance Date In November 2011 the Minister for Tertiary Education approved a combined Governing Council for Whitireia and the Wellington Institute of Technology from January 2012. The Polytechnic purchased the assets of two Private Training Establishments for $534,000 after balance date. The Polytechnics subsidiary, Whitireia New Zealand Limited, purchased the future revenue streams of two Private Training Establishments after balance date. Except as already disclosed, there were no other events that have occurred between 31 December 2011 and the date of this report.

27. Explanations of Major Variances Against Budget The major variances against budget were due to additional funding for Youth Guarantee and campus redevelopments occurring later than expected. The Polytechnic undertook a significant programme of campus redevelopments, culminating in the approval to redevelop the main campus in Porirua. The timing of the campus redevelopments resulted in higher interest income and lower depreciation expenditure. Accounts receivable has increased as a result of invoicing students for courses starting in 2012 with a corresponding increase in income in advance.

STATEMENT OF RESPONSIBILITY The Council and management are responsible for the preparation of Whitireia Community Polytechnic and groupâ&#x20AC;&#x2122;s financial statements and statement of service performance and for the judgements made in them. The Council and management of the Whitireia Community Polytechnic have the responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In the Council and managementâ&#x20AC;&#x2122;s opinion, these financial statements and statement of service performance fairly reflect the financial position and operations of the Whitireia Community Polytechnic and group for the year ended 31 December 2011. Signed by.

Chairperson of Council 16 May 2012

Chief Executive 16 May 2012

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

Independent Auditor’s Report To the readers of Whitireia Community Polytechnic and group’s financial statements and statement of service performance for the year ended 31 December 2011 The Auditor-General is the auditor of Whitireia Community Polytechnic (the Polytechnic) and group. The AuditorGeneral has appointed me, Clint Ramoo, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the Polytechnic and group on her behalf. We have audited: • the financial statements of the Whitireia Community Polytechnic and group on pages 41 to 81, that comprise the statement of financial position as at 31 December 2011, the statement of financial performance, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and • the statement of service performance of the Polytechnic and group on pages 22 to 37. Opinion In our opinion: •

the financial statements of the Polytechnic and group on pages 41 to 81: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Polytechnic and group’s:

•

financial position as at 31 December 2011; and

•

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

the statement of service performance of the Polytechnic and group on pages 22 to 37 fairly reflects the Polytechnic and group’s service performance achievements measured against the performance targets adopted for the year ended 31 December 2011.

Our audit was completed on 16 May 2012. 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 statement of service performance are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

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

the appropriateness of accounting policies used and whether they have been consistently applied;

•

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

•

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

•

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

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

comply with generally accepted accounting practice in New Zealand; and

•

fairly reflect the Polytechnic and group’s financial position, financial performance and cash flows.

The Council is also responsible for preparing a statement of service performance that fairly reflects the Polytechnic and group’s service performance achievements. The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004. Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants. Other than the audit, we have no relationship with or interests in the Polytechnic or any of its subsidiaries.

Clint Ramoo Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand 84

Vision

Values

Matters relating to the electronic presentation of the audited financial statements and statement of performance

Whitireia will lead and illuminate its communities through tertiary education

Manaaki

This audit report relates to the financial statements and the statement of service performance of Whitireia Community Polytechnic (the Polytechnic) and group for the year ended 31 December 2011 included on the Polytechnic and group’s website. The Polytechnic and group’s Council is responsible for the maintenance and integrity of the Polytechnic and group’s website. We have not been engaged to report on the integrity of the Polytechnic and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website.

Encouraging co-operation in learning and resource sharing to promote individual confidence and group harmony through a positive and supportive learning environment

Identity Creating a learning environment where all people feel they belong because their uniqueness is valued and promoted

Equity Achieving more equal outcomes by providing significant learning and education success for those who have previously lacked such opportunities

Responsiveness Being flexible, creative and open to change, to better meet individual, industry and community learning needs

Success Being an effective organisation with a clear sense of purpose, striving for excellence and creating an environment where all have the right to succeed

Integrity Maintaining the highest ethical standards and permitting public scrutiny to ensure the maintenance of those standards

Accountability Monitoring and reporting on the maintenance of educational quality standards and on the responsible use of public resources

The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance as well as the related audit report dated 16 May 2012 to confirm the information included in the audited financial statements and statement of service performance presented on this website.

WHITIREIA NEW ZEALAND ANNUAL REPORT 2011

”

“

Polytechnic for student success

hitireia were rated number one for qualification completion in W August 2011, in the Performance of Teriary Education Organisations Report published by the Tertiary Education Commission.

“

0800 944 847

leading and illuminating

OUR

www.whitireia.ac.nz

communities through tertiary

EDUCATION

Despite changes in funding policy and the environment, Whitireia continues to perform and achieve outstanding results..

”

ANNUAL REPORT 2011