WELTEC AND WHITIREIA
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ANNUAL REPORT WelTec
Whitireia
Twenty Sixteen
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ANNUAL REPORT 2016
Contents Vision 4 Council Chair and Chief Executive’s Foreword
10
Governance 18 Highlights 20 Academic 26 Research and Innovation
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Our People
28
Equal Education Opportunities
30
Statement of Service Performance
33
Reporting on Outcomes
34
Business Plan Performance 43 Investment Plan Performance Commitments
Financial Statements WelTec
53
63
Statement of Comprehensive Income
64
Statement of Changes in Equity
65
Statement of Financial Position
66
Statement of Cash Flows
67
Notes to the Financial Statements
68
Statement of Compliance and Responsibility
91
WELTEC AND WHITIREIA
Financial Statements Whitireia
93
Statement of Financial Performance
94
Statement of Comprehensive Income
95
Statement of Changes in Equity
96
Statement of Financial Position
97
Statement of Cash Flows
98
Reconciliation from the net surplus / (deficit) to the net cash flows from operations
99
Notes to the Financial Statements
100
Statement of Compliance and Responsibility
130
Other Financial Summaries
133
Te Whare Ako Financial Summary
134
Whitireia Community Polytechnic Childcare Centre
135
Compulsory Student Services Levy WelTec
136
Compulsory Student Services Levy Whitireia
138
Independent Auditor's Report
141
Acronyms 147
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ANNUAL REPORT 2016
Vision
Whakakitenga Learning together. Transforming lives Te ako ngātahi. Te whakaahua kētanga o te tangata
Distinctiveness Ahureitanga
We are about the people of this place and we have special relationships with local Iwi: WelTec with Te Ātiawa and Whitireia with Ngāti Toa. Together, we are more than the sum of our parts. Mā tātou, mō tātou Ko WelTec ki Te Āti Awa, ko Whitireia ki Ngāti Toa. E haere kōtui nei me kura-takahi-puni tātou.
Values
Ngā kaupapa e whā A sense of belonging for all learners Whakapapa Connected through partnerships Whānaungatanga Supporting, growing, challenging Manaaki Doing things the right way, according to values Tikanga
WELTEC AND WHITIREIA
Goals
NgÄ WhaingÄ By 2021, the WelTec and Whitireia whÄ nau will be dynamic, innovative providers of vocational education, fully integrated with the community, supporting learners to engage in their first jobs, to upskill to change roles, and to learn for life. Whole of person Partnering through the learning and career journey. Helping learners to increase their contribution to society. Whole of learning framework Providing relevant, high quality programmes and services to meet the needs of industry and the community. Whole of community Collaborating with and contributing to iwi, industry, secondary schools, Pasifika and the wider community. Whole of place Engaging with people across the country and across the world to ensure our programmes and services are relevant, portable and high-quality. Whole of system Taking a system-wide perspective to the delivery of coherent, effective and efficient learning services.
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ANNUAL REPORT 2016
KEY STATISTICS
8268 6851 4005 WELTEC WHITIREIA
3984
WELTEC WHITIREIA
WELTEC Total EFTS by School
361 Creative Industries 80
75
69
380 Hospitality
564 Health and Social Services
685
37
Construction
956
Education Performance Indicators (SAC: provisional as advised by TEC March 2017)
Engineering
Course Completions Qualificaton Completions Progression to higher levels of study Retained in study
1059 Business and Information Technology
Funding by source
34
152
50
478
61
590
110
2418
Adult and Community Education Full Fee Trades Academy SAC 1 and 2
113
Youth Guarantee
STAR ITO
International SAC 3+
4005
Grand total EFTS
WELTEC AND WHITIREIA
"Overall, I am very satisfied with their knowledge and skills"
264 134
WELTEC
93%
WHITIREIA
130
WELTEC
WELTEC WHITIREIA
87% WHITIREIA
WHITIREIA Total EFTS by Faculty
108 Te Wānanga Māori
82 79
559
78
Arts
993 Trades and Services
1130
38
Business and Information Technology
Education Performance Indicators
1194
(SAC: provisional as advised by TEC March 2017)
Course Completions Qualificaton Completions Progression to higher levels of study Retained in study
Funding by source
5
English for Migrants
6
54
Adult and Community Education
172
ICT Graduate School
Youth Guarantee
18
237
29
1264
51
2148
STAR
Trades Academy Full Fee
SAC 1 and 2 International SAC 3+
Health
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ANNUAL REPORT 2016
WELTEC
199
LOCATION OF
1147
414
STUDENTS STUDYING BY REGION
740
434
2560 198
Count of NSN
2078 397
Student profile by ethnicity Count of NSN
Student profile by age
Count of NSN • 2927 • 1945 • 1915 • 1481
389 Other 596 European 870 Pacific Peoples
1416 Asian 1483 New Zealand Māori 4946 NZ European/Pākehā
24%
23%
18%
Qualifications awarded 2036 CERTIFICATES
Other 14 or more credits at any level
249 DIPLOMAS
Overseas quali cation (includes International Baccalaureate & Cambridge Exams)
163 DEGREES
NCEA Level 1 or School Certi cate No formal secondary school quali cation NCEA Level 2 or 6th Form Certi cate
Level of Study
NCEA Level 3 or University Entrance, Bursary or Scholarship
Count of NSN
2154
1700
1455
1346
1222
230
115
Secondary School Qualification
35%
290 GRADUATE/ POSTGRADUATE CERTIFICATES/ DIPLOMAS
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WELTEC AND WHITIREIA
WHITIREIA
594
Auckland/Northland
1074
Central North Island
439
Kāpiti Coast
140
1455
Upper Hutt Porirua Wairarapa
485
Lower Hutt
62
1193
Wellington
213
South Island
Student profile by ethnicity Count of NSN
Student profile by age
Count of NSN • 2181 • 1697 • 1494 • 1479
309 Other 308 European 1197 Pacific Peoples
1985 Asian 1124 New Zealand Māori 2833 NZ European/Pākehā
25%
22%
21%
Secondary School Qualification
Qualifications awarded
Other
No formal secondary school quali cation
2307
NCEA Level 2 or 6th Form Certi cate
1425
Count of NSN
NCEA Level 1 or School Certi cate
1131
Level of Study
NCEA Level 3 or University Entrance, Bursary or Scholarship
1095
219 GRADUATE CERTIFICATES/ DIPLOMAS
522
Overseas quali cation (includes International Baccalaureate & Cambridge Exams)
405 DEGREES
222
14 or more credits at any level
413 DIPLOMAS
149
1315 CERTIFICATES
342 POSTGRADUATE CERTIFICATES/ MASTERS
32%
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ANNUAL REPORT 2016
council Chair and Chief Executive’s Foreword Kei ngā kaiwhakatewhatewha i ngā whārangi o te pūrongo-ā-tau o WelTec me Whitireia kua tau mai ki te tatau o ēnei whare tēnā koutou katoa. Nau mai piki mai tomo mai ki tōna ao mātauranga e kake atu ai a Ihuoneone, a Ihumanea, a Ihupuku ki taumata kē atu. Ko tā te pūrongo-ātau he momo putanga whakaaro hei āta matai i ngā taero a Kupe o ēnei whare mātauranga, whare ringa rehe. E manu e hoka, e hāro e topa, kia rongo te mātinitini, kia rongo te hākerekere.
He Whakatauākī Ko te manu e kai ana i te miro, nōna te ngahere. Engari, ko te manu e kai ana i te mātauranga, nōna te ao. The one who partakes of the flora and fauna, that will be their domain. The one who engages in education, opportunities are boundless.
THE 2016 YEAR Last year was a significant year for WelTec and Whitireia, with more than 16,000 students equating to almost 8,000 Equivalent Full-Time Students studying at our institutions. The Strategic Partnership, the hallmark of the relationship between our institutions, matured and crystallised with a number of significant achievements. Signifying this, we developed a five-year joint Strategic Framework with a Vision of Whakakitenga – Learning together – transforming lives – Te ako ngātahi, Te whakaahua kētanga o te – tangata. We have taken the view that we are stronger by combining a number of functions while retaining our unique cultures and specialisms. The relationship WelTec has with Te Ātiawa, and Whitireia with Ngāti Toa are strong. There was also highly effective engagement with industry, Pacific Peoples, secondary schools and the wider community.
Our key government funder, the Tertiary Education Commission published Educational Performance Indicator information which showed Whitireia SAC course completions (indicative at the time of publishing) were 82 percent for 2016, and 79 percent for qualification completions (second highest in the country at the time of writing) with the top ranking for students retained in study. WelTec SAC students achieved 80 percent course completions, and 69 percent qualification completions and ranked fourth highest in the country for student retention. These measures provided a snapshot of how our learners progress academically at our institutions.
functions of teaching and learning, academic quality, business development, people and capability, and strategy, planning and improvement, and finance and operations. The Directors were welcomed to WelTec and Whitireia with a Mihi Whakatau by Te Ātiawa at Petone and Pōwhiri by Ngāti Toa at Porirua. The appointment of a combined leadership team led to the establishment of groups within each Directorate, bringing fresh perspectives and economies of scale to both institutions. Integration of WelTec and Whitireia onto each other’s campuses in Auckland was completed during 2016.
Early in the year, a joint leadership team was appointed bringing together key
During 2016, there was a focus on meeting local, regional and national priorities, expansion of WelTec and Whitireia, and developing a reputation for globally relevant vocational education. Our institutions continued to have a significant economic impact on the regional and national economies. Economic analysis by Business and Economic Research Limited (BERL) puts the contribution of WelTec and Whitireia at $101.2M to the Wellington economy and $15M to the Auckland economy. On the same basis BERL estimates that our contribution to the New Zealand economy was $140.1M. More on this in the Statement of Service Performance section of this Annual Report.
WelTec and Whitireia Joint Leadership Team: Back Row Left to right: Lawrence Arps Director Teaching & Learning (Whitireia), James Smith Director Finance & Operations (WelTec), Chris Gosling Chief Executive, Mark Hewitson Director Finance & Operations (Whitireia), Mark Johnston Director Business Development, Mark Broadbent Director People & Capability. Front Row Left to right: Dr Ruth Anderson Director Academic; Dr Leanne Ivil Director Strategy, Performance & Improvement; Dr Julia Hennessy Director Teaching & Learning (WelTec)
WELTEC AND WHITIREIA
A JOINT STRATEGY FOR WELTEC AND WHITIREIA The first joint strategy for WelTec and Whitireia was approved by the Council. The WelTec and Whitireia Strategic Framework 2017 – 2021, represents who we are as partners and how we work together. It sets out the collective vision and values that will guide our work, our culture and our distinctiveness over the next five years. The confirmation of this framework represented a milestone in the development of our strategic partnership. A new WelTec and Whitireia Strategic Programme Portfolio Framework was also approved in 2016, to ensure we take a more strategic approach to the provision of vocational education in greater Wellington and other regions. It reflected our shared commitment to providing high quality and relevant programmes and services to meet the needs of our learners, communities and industry. The publication of a joint 2017 prospectus for WelTec and Whitireia brought together our programmes into one document, making it easier for students to make effective choices about their tertiary studies.
PRODUCTIVITY COMMISSION SUBMISSION WelTec and Whitireia were active participants in the Productivity Commission’s review of tertiary education in New Zealand. The final report ‘New models of tertiary education’ was released on 21 March 2017. The purpose of the review was to investigate how responsive tertiary education providers are to future trends, such as technology and demand for skills, and consequently how the current model of tertiary education may need to change. We made two submissions and many of our statements were picked up and quoted in the Final Report. The impact of the Commission’s work remains to be seen, however the process represented an important opportunity for WelTec and Whitireia to be part of the national debate on important strategic issues confronting our sector.
2017 - 2018 INVESTMENT PLAN
WELLINGTON TRADES ACADEMY
During 2016, a single Investment Plan was negotiated and agreed with the Tertiary Education Commission. This was a key milestone and reflected our focus on the Wellington region and delivery in Auckland.
A total of 240 places were available to study with the Wellington Trades Academy in 2016. There was strong demand for the programme, reflecting wide support from secondary schools.
FINANCIAL PERFORMANCE Financial performance is outlined in the latter half of the Annual Report. WelTec achieved an operating surplus of $2.07M while Whitireia posted an operating deficit of $0.8M. These financial results were influenced by international student enrolment patterns, with international enrolments at WelTec exceeding the target set by 20 percent and the Whitireia international student numbers being less than anticipated. Softening in lower level delivery and Youth Guarantee delivery also influenced the financial results. Our financial performance presents challenges to our institutions. In an openly competitive tertiary education market the role and contribution of Institutes of Technology and Polytechnics (ITPs), as Crown Entities, requires consideration by policy makers. There is demonstrated value in applied tertiary learning pathways, from our secondary-tertiary pathways to applied postgraduate provision. We continue to achieve great outcomes for our learners.
Many students benefitted from renewed confidence in their abilities and felt they could find a way into a new pathway within the programmes they have studied. Many students progressed to further study, which prior to enrolling, some would have not considered. An increased number of students moved directly into apprenticeships or full time work in industry. The first delivery of a part-time Trades Academy year saw a higher percentage of students participating in secondary school extra-curricular activities such as sports and cultural activities compared to the previous full-time delivery. The relationships with partner schools was a key focus in 2016 and reflected in increased demand for places, improved reporting systems, both for attendance and achievement and has reduced administrative duties both at the Trades Academy and for our partner schools
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ANNUAL REPORT 2016
MĀORI AND PASIFIKA TRADES TRAINING Māori and Pasifika Trades Training, an initiative where students study at our institutions with wrap around support and no tuition fees continued in popularity. Students undertake a level three or four pre-trade qualification and are also awarded a Passport to Work which includes driver licensing, site safety, timeliness and other skills required to be work-ready. The Wellington Māori and Pasifika Trades Training Consortium met three times during 2016 and focused on supporting students to succeed, and be placed into work and higher level study. More than 200 students participated in the initiative supported by WelTec and Whitireia, a number of industry partners including Hawkins, Transmission Gully and M2PP, Iwi and Pasifika.
TE AUAHA NEW ZEALAND INSTITUTE OF APPLIED CREATIVITY Te Auaha New Zealand Institute of Applied Creativity was launched in 2016. A new brand, website and publication Waharoa burst onto the Wellington creative and arts scene. Construction of the exterior of our new $25M campus was near complete by the end of the year. We were able to have a peek behind the scenes when we toured the interior in December. Te Auaha will open in 2018. It is an incredibly exciting joint initiative which will attract domestic and international students to Wellington – it will be a destination.
Wellington Māori Pasifika Trades Training consortium
HEALTH AND SAFETY
PACIFIC COLLABORATION
Health and safety was a key priority for governance and staff at our institutions. Over the course of 2016, health and safety focused on a series of projects which were centred on developing engagement, wellness programmes and improved reporting processes. A joint health and safety policy was drafted to combine the objectives of both WelTec and Whitireia. Training was also a focus with a significant number of staff undertaking health and safety representative training.
Pacific communities contributed to many initiatives. From Māori and Pasifika Trades training which included representation on the Wellington Consortium and mentoring graduates in work, to the WelTec Pasifika Advisory Committee and the Whitireia community liaison team our institutions and students benefitted from the advice, guidance and input of Pasifika.
Improving health and safety reporting to Council was a high priority in 2016. One of the features of this was a new emphasis on lead indicators as well as the more traditional Health and Safety outcome indicators, such as the number of Health and Safety incidents. Engagement on Health and Safety matters by the Council members has been observed and noted by many staff. Council members regularly visited campuses to review the Health and Safety requirements and processes in place, ensuring that a Health and Safety culture is front of mind for all staff Chris Gosling and Malo Ah-You signing an agreement with Ministry for Pacific Peoples
WELTEC AND WHITIREIA
INDUSTRY Connections with industry were further strengthened during 2016. Industry Partnership Committees operated at WelTec covering Alcohol and Drug studies; Automotive Technology; Degree and Diploma Engineering; Built Environment; Business; Counselling and Trauma studies; Exercise Science, Funeral Services, Health Disability Aged Care Support and Community Vocational Learning Support; Hospitality, Information Technology; and Youth Development. At Whitireia faculties were supported by Committees representing Publishing; Journalism; Bachelor of Applied Arts; Te Wānanga Māori; combined postgraduate programmes Health; Bachelor of Health Science (Paramedic); Bachelor of Nursing (Pacific); Electrical; Automotive; Hairdressing; Outdoor Adventure; Business Administration; Carpentry; Catering and Hospitality; Business and IT; and English as a Second Language. The Plumbing Industry Partnership Committee and Wellington Trades Academy Committee functioned across WelTec and Whitireia. Members of the applied arts and creative technologies sectors participated in the Te Auaha Industry Advisory Committee and a new Committee was established to provide guidance for the Master of Professional Practice programme.
The institutions and our staff and students continued to benefit from these relationships. This included Beca, an engineering consultancy firm, providing scholarships and work opportunities for our graduates, and ANZ encouraging more women to study ICT by providing an award to the top female student. Industry recognised students through handing out top awards. New Zealand’s largest dedicated Microsoft business solutions provider Intergen, partnered with WelTec to help meet its ICT workforce requirements with the announcement of the Intergen Young Achiever's Award. The Australasian student paramedic conference was held at the Porirua campus in April. This was the first time a group of key decision makers in the field of paramedicine and ambulance service provision in New Zealand had come together, offering insight into the future of emergency medical care in this country. Hon Annette King was the keynote speaker, addressing attendees on the vital role of paramedicine within New Zealand's health system. The hosting of this conference highlights the close links Whitireia has with the paramedicine community.
[Left to right] Chris Starling (Delivery Transformation Manager ANZ Technology); Andrea Wolff (WelTec Bachelor of Information Technology student and recipient of the Top Female ANZ/WelTec 2016 Award); with Carlie Osborne (Delivery Manager- ANZ goMoney)
Paramedic Australasia Conference was held at Whitireia
These committees spanned Whitireia and WelTec.
Intergen Young Achiever Award recipients Roxanne Shirtcliffe, Jonah Jackson and John Frederikson with WelTec Chief Executive Chris Gosling and Simon Bright Intergen CEO
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ANNUAL REPORT 2016
STUDENT ACCOMPLISHMENTS At the heart of our institutions are the learners, with successful graduations held at the Michael Fowler Centre Wellington, Te Rauparaha Arena Porirua and Auckland. A total of 5432 qualifications were awarded in 2016. Students were encouraged and supported to compete at national and international competitions. This included hospitality students attending the Nestlé Toque d’Or competition in Auckland in July. Jewellery students from Whitireia were awarded top prizes at New Zealand’s leading design and craft awards. The top jewellery prize at the ECC NZ Student Craft/Design Awards 2016 was won by 2015 graduate Nik Hanton. This was the second year in a row Whitireia won this award. Jewellery students Jun Xie and Nina van Duynhoven also won their categories at the awards, which is organised by the Friends of the Dowse. In November, more than sixty WelTec graduating students from the Schools of Engineering, and Business and IT
presented their final year projects to Wellington business leaders. The evening connected students to industry and was an excellent opportunity for students to receive feedback on their work. Projects ranged from CNC profiled Plywood for medium density housing which has the potential to significantly reduce the cost of constructing dwellings, to an environmental solution for capturing rainwater and hydraulic modelling of a bioretention device. The Whitireia Faculty of Business and Information Technology Showcase was held at the Porirua campus in November. Students from the Business and IT undergraduate and postgraduate degrees displayed their industry capstone projects to invited guests from industry and the community. Porirua Mayor Mike Tana presented the Mayor’s Entrepreneurship Award for the best “Shark Tank” presentation, and industry sponsor Allied Telesis presented awards for both the Post Graduate Best Poster and Capstone Project Best Poster.
The Creative Technologies End of Year Student Exhibition was held in November at the New Zealand Portrait Gallery with guest speaker Theo Baynton (NyukNyuk games/Pukeko Pictures) Whitireia visual arts and design graduates exhibited at Pātaka Museum of Arts and Cultures, Porirua. Music students and performing arts students showcased their skills at shows throughout the year; including the highly successful CupaDupa.
Porirua Mayor Mike Tana presented the Mayor’s Entrepreneurship Award for the best “Shark Tank” presentation
XU CHEN Standoff - Digital Media at Creative Tech Exhibition
LEFT: Jackie Lloyd congratulates new Diploma in Addiction, Alcohol and Drug Studies graduate at the Michael Fowler Centre Wellington April 2016
WELTEC AND WHITIREIA
FOCUS ON STAFF Significant organisational development initiatives took place over the year. WelTec launched a new Te Ao Māori programme that saw eighty staff participating. The Good Oil forum, an opportunity for trades tutors to meet, led by teaching staff was attended by eighty people from the wider region.
30th birthday celebration Whitireia Porirua Campus in Te Kete Wānanga on 15 March 2016
SUPPORT FROM LOCAL AUTHORITIES WelTec and Whitireia continued to enjoy support from the local authorities that make up the Greater Wellington Region. For example, the Hutt City Council supported WelTec students through scholarships, networking opportunities and through initiatives such as the Tech Shop and STEMM (Science, Technology, Engineering, Maths and Manufacturing) weeks. Wellington City Council supported our Te Auaha development. Later in 2016 we welcomed Porirua City Council Mayor Mike Tana, Deputy Mayor Izzy Ford and Cr Mike Duncan. The group was welcomed with a mihi whakatau and toured the Porirua campus. Many opportunities for greater engagement between the Council and Whitireia were discussed and will be followed up in 2017.
WelTec and Whitireia were involved in a number of high profile initiatives including the Make the World E2E – Engineering to Employment campaign launched by former Tertiary Education, Skills and Employment Minister Steven Joyce. Two hundred and ninety-one students studied on either the New Zealand Diploma in Engineering or the Bachelor of Engineering Technology Degree in 2016. Thirty-three students undertook the Engineering Foundation programme and many of those students moved into either the Diploma or Degree.
WelTec Head of Engineering Graham Carson with Tukino Kingi recipient of the 2016 Hutt City Engineering Scholarship with Hutt City Mayor Ray Wallace.
From left to right: Cr Mike Duncan, Cr Izzy Ford (Deputy Mayor), Mayor of Porirua City Mike Tana, Chris Gosling, Taku Parai
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ANNUAL REPORT 2016
SCHOLARSHIPS
INTERNATIONAL
After several years of service, Tim Shepherd stood down as Chair and Trustee of the Whitireia Foundation. Under Tim’s enthusiastic Chairing, the Trust prospered in recent years sourcing and providing total annual scholarships of around $100K for Whitireia students. The annual awards ceremony was held in March at the Porirua campus and was attended by trustees, sponsors, recipients and their families. A total of 47 scholarships were awarded to deserving students representing $115K from 21 sponsors.
International students made up a significant proportion of our student population at around 1,850 EFTS enriching the learning environment and contributing to the vibrancy of our campuses.
Industry and community supported WelTec through scholarship funds for students. Beca, Fuji Xerox, WOW, Graduate woman of VUW, Hutt City Council and a range of scholarships from the hospitality and ICT industry contributed to student learning opportunities.
WelTec and Whitireia are partners in the Wellington International Student Growth Plan, a regional project being managed by the Wellington Regional Economic Development Agency (WREDA), aimed at increasing the share of international students studying in the Wellington region. Significant funding support for his key strategic initiative has been provided by Education New Zealand and the Wellington City Council together with contributions from the major tertiary providers. The International Student Excellence Awards, an initiative from the Wellington International Growth Strategy, recognises the Wellington region’s best all round international students. Two students from WelTec and Whitireia received this award in October 2016, which was handed out by then Deputy Prime Minister Bill English. Only twelve
students receive this award every year out of a strong pool of one-hundred nominations. Recipient Anamika Nampoothiry, from Kerala, India is studying at WelTec for the Bachelor of Engineering Technology, specialising in Water and Waste Water Management. Whitireia student Ravi Prasad, originally from Fiji, completed the Diploma in Professional Cookery, Level 5. Chris Gosling accompanied the Prime Minister’s business delegation to India in October 2016. This was a valuable opportunity to meet with a number of high performing agents and representatives of the Indian Chamber of Commerce. The visit heightened the profile of ITPs and WelTec and Whitireia in particular; and also provided the opportunity to meet with a number of other high profile members of the business delegation including those in the creative sector. Chris also joined the Prime Minister's delegation to Indonesia and subsequently joined the Wellington Mayoral visit to China. In both cases relationships were cemented with key partners.
Anamika and Ravi with Hon Bill English
Steve Scannell Beca with WelTec engineering students Anna Finkenauer, Martin Lotz and Beca Wellington Regional Manager Michael Kerr at Beca’s Office in Wellington.
WELTEC AND WHITIREIA
FINAL WORDS FROM THE CHAIR The year 2016 was not without its challenges. A crowded market alongside a declining school leaver population and policy changes in international education prompted the institutions to invest in new directions with a commercial team established to scope out new business opportunities across the portfolio. At a governance and management level we had a strong focus on health and safety, quality provision along with oversight of new developments such as Te Auaha. We were pleased to welcome many international delegations to our campuses and to receive visits by key business leaders and central and local government representatives. Our presence and reputation as leading tertiary education providers has been further strengthened. Council Chair Roger Sowry congratulating a graduating student.
We would like to thank the communities, stakeholders and ultimately industry for supporting our students. This support was tangible and valued and included advice and guidance, cadetship programmes for students, scholarships, work-integrated learning experience and ultimately employment for our skilled and talented graduates. This is very much appreciated and remembered and valued by students long after they have completed their studies.
Ehara i te mea he tau pōike nahenahe, he tau nihoroa nahe. Nā te tai timu, nā te tai pari te kaihīrau ki te hoe, te kōmaru i whakariterite, e tere atu ai i te moana o matawhānui, kei matawhāiti. Ka aronui ki te hauora me te haumarutanga o te poumahi, pouako mai, pou whakamanawa mai. Ka waipuketia ngā whare e te manuhiri tūārangi, e te autaia, e te kaitōrangapū. He whakamiha atu , he whakamānawa atu tēnei ki ngā hapori, ki te ao ringa rehe, nāna nei ā tātou ākonga i tauwhiro. I kitea te puna pūtea, te puna tauira mahi, te puna tūranga mahi. Ka ngotoa ki te ngākau manatu. No reira Tena Koutou Tena Koutou Tena Koutou Katoa.
Finally the Council wishes to formally recognise the contribution of management and staff to our institutions. The dedication of our tutors to their role as educators is evident in the educational outcomes achieved by students.
Hon Roger Sowry Council Chair, ONZM
Chris Gosling Chief Executive
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ANNUAL REPORT 2016
governance
Back row: Fran Wilde, Chris Gosling, Antony Royal, Dr Kabini Sanga. Front row: Jackie Lloyd, Vaughan Renner, Roger Sowry, Deborah Hume, and Nancy McIntosh-Ward.
Combined Council of Whitireia and WelTec
Academic Board
Atiawanuitonu
Te Komiti Poutokomanawa
Chief Executive Performance Appraisal Committee
Risk and Audit Committee
Campus Development Committee
Chris Gosling (Chair)
Holden Hohaia (Chair)
Moana Sinclair (Chair)
Nancy McIntosh-Ward (Chair)
Vaughan Renner (Chair)
Fran Wilde (Chair)
Ruth Anderson Leanne Ivil Ben Shadbolt Gerry McCullough Helen Gardiner Hinemoa Priest Jeanette Grace Julia Hennessy Lawrence Arps Leba Leqakowailutu (Whitireia Student Rep) Mervyn Protheroe Nathan McGimpsey (WelTec Student Rep) Neil Mcdonald Ruth Crawford
Antony Royal Kura Moeahu Roger Sowry Vaughan Renner Wirangi Luke
Antony Royal Chris Gosling Jeannette Grace Roger Sowry Dr Katene Selwyn Taku Parai Una Thomas
Antony Royal Fran Wilde Roger Sowry
Deborah Hume Jackie Lloyd Nancy McIntosh-Ward Roger Sowry
Antony Royal Jackie Lloyd Kabini Sanga Roger Sowry
WELTEC AND WHITIREIA
THE COUNCIL COMPRISES EIGHT MEMBERS. The subcommittees of the Council are Risk and Audit; Campus Development; Chief Executive Performance Appraisal; and the Combined Academic Board. There are two Iwi advisory groups to Council. They are Atiawanuitonu (Te Ātiawa) and Te Komiti Poutokomanawa (Ngāti Toa).
Roger Sowry ONZM Council Chair Roger Sowry was a Member of Parliament from 1990 to 2005, firstly representing the Kāpiti electorate, then as a National list MP. Roger retired from Parliament in 2005 moving to become Chief Executive of Arthritis New Zealand. He is a member of the Electricity Authority. Roger is also a member of the Institute of Directors. Vaughan Renner Deputy Chair Vaughan Renner has an MBA, and science and engineering qualifications. He is self-employed and has strong commercial, strategic planning and IT skills. Vaughan has a background in governance (currently including Westlake Governance Limited, Business Central, Business NZ, and Standards New Zealand). He is a member of the Institute of Directors. He was appointed as Deputy Chair of The Open Polytechnic of New Zealand in 2014. Nancy McIntosh-Ward Nancy holds an MBA and is a Chartered Accountant. She is the former Chief Executive of the Karori Sanctuary Trust and has extensive financial, management, commercial, governance, tertiary education and marketing experience. She is currently a consultant specialising in strategy development to delivery. Nancy is a member of the Institute of Directors.
Dr. Kabini Sanga
Antony Royal
Kabini Sanga is an Associate Professor of Education in the Faculty of Education at Victoria University of Wellington. He holds a Doctor of Philosophy from the University of Sasketchewan, Canada. He did his early university education at the University of South Pacific, Fiji. He has held a number of senior roles in education, including being the Director of the Institute of Education of the University of the South Pacific; the Director and Chief Executive Officer of the Solomon Islands College of Education, and the Chief Education Officer, Solomon Islands Ministry of Education.
Antony Royal has strong community involvement and a background in the ICT industry. He holds a degree in Electrical and Electronics Engineering from Auckland University, has spent many years in the ICT industry and currently holds a number of governance positions. Previous roles have included Global Infrastructure Manager and Web Initiatives Manager for the NZ Dairy Board (Fonterra), implementation of Financial Management Systems for a number different Government Departments, and positions on a number of advisory boards. Antony has been involved in many projects.
Dr Deborah Hume Dr Deborah Hume has led strategic riskmanagement consultancies that worked with public and private organisations and has most recently been responsible for Wellington’s Metro train operations (Tranz Metro) and New Zealand’s long-distance passenger train services (Scenic Journeys) for KiwiRail. She has a PhD in Biology from Queen’s University in Canada and is a member of the Institute of Directors and Global Women. Dame Fran Wilde Hon Dame Fran Wilde CNZM was previously an MP and Cabinet Minister, as well as Mayor of Wellington. In business she was CEO of the NZ Trade Development Board and chair and/or director on the boards of a number of listed, state owned and privately held companies. Fran has also run her own consultancy business and has played a key role in Wellington and national philanthropic and arts organisations. She is a Chartered Fellow of the Institute of Directors and holds an honorary doctorate in law from Victoria University of Wellington from which she earlier graduated with a BA degree.
Jacqueline Lloyd Jackie Lloyd is Deputy Chair of New Zealand Post Group, a trustee of the Lion Foundation and Chair of Wellington Museums Trust, Chair of the State Services Commission Audit and Risk Committee and a business advisor. She previously served as global human resources director for the New Zealand Dairy Board and NZMP Fonterra, and subsequently as a consultant and New Zealand country manager for Hewitt Associates and The Gallup Organisation. Jackie has a BA in Psychology and a BCom in Marketing and Manpower, is a member of Global Women and a Chartered Member of the Institute of Directors.
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ANNUAL REPORT 2016
Highlights TE AUAHA
Vision: By 2025 to be a Centre of Excellence for Creative Technologies and the Arts in Aotearoa – where creative talent collides
Te Auaha Ambassador Gino Acevedo, Maori Alien Warrior, Council Chair Roger Sowry and Scott Houston Te Auaha Ambassador
Te Auaha Ambassador Barnaby Weir with Whitireia and WelTec Councillors Dr Deborah Hume and Vaughan Renner
Te Auaha New Zealand Institute of Applied Creativity was a major focus for Whitireia and WelTec during 2016. This major project moved forward dramatically in 2016 with the exterior build progressing towards completion and the fit-out commencing September 2016. Foster + Melville Architects developed final plans for a world-class facility agreed in consultation with the performing arts and creative technology industries, Ngāti Toa and Te Ātiawa and Pacific Peoples. In May 2016 the name, branding and Ambassadors for Te Auaha were revealed at a stellar event in Wellington attended by two-hundred industry leaders, business people, central and local government representatives with keynote addresses by Hon Steven Joyce then Minister for Tertiary Education, Skills and Employment; and Hon Maggie Barry, Minister for Arts, Culture and Heritage.
The name Te Auaha means ‘to shape, create, form, fashion and innovate’ and reflects the exciting mix of programmes to be delivered in the campus. Te Kāhui Auaha which means ‘the cluster of creativity’ is the name provided by Te Ātiawa for the campus building. Te Auaha will bring together programmes from Whitireia and WelTec’s specialisms of visual and performing arts, design, media and creative technologies. The new campus will provide a dynamic learning environment for students with world-class facilities, including dance and performance studios, exhibition/gallery space, performance theatres, in-house cinema, music studios, photographic studies, workshops, hair and makeup studios, digital labs; and programmes that reflect industry requirements.
WELTEC AND WHITIREIA
High profile creative sector ambassadors represent Te Auaha, these inaugural ambassadors are drawn from a number of the discipline areas in which Whitireia and WelTec specialise in: renowned writer Dame Fiona Kidman; creative performance director and entrepreneur Dame Suzie Moncrieff; musician and composer Barnaby Weir; digital technologist Scott Houston; makeup artist Gino Acevedo; and internationally acclaimed choreographer Malia Johnston. Te Auaha launched an industry newsletter in July called Waharoa (The Gateway) with a new website: www.teauaha.com
An Industry Committee with representatives from the film, performance, digital design, media, makeup, music, arts industries was established and met throughout the year to advise on Te Auaha. In December members of the Council of Whitireia and WelTec, creative industry leaders, and senior staff were able to have a look through the emerging sixstorey campus. Describing the project as transformational, developer Mark McGuinness Managing Director of Willis Bond & Co hosted the vist through the site.
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ANNUAL REPORT 2016
ICT
First Whitireia Master of IT graduate Leutele Grey
With a total of 1,231 EFTS in 2016 ICT continued to be a major focus particularly with new postgraduate qualifications becoming available. There were several promotional events highlighting the critical role of ICT to the Wellington economy that were held around the region. Student showcase evenings were held in November at WelTec highlighting the work of students and our involvement in the ICT Graduate School . Promotional events encouraging gender diversity were a feature.. Such as the ANZ Top Student Award for Females and ShadowTech Day.
The Wellington ICT Graduate School, a partnership between Victoria University of Wellington, WelTec and Whitireia, was formally launched in May by the former Tertiary Education, Skills and Employment Minister Steven Joyce. The Graduate School is one of three in a Governmentfunded initiative to deliver high quality education and research to meet the needs of the growing ICT industry in New Zealand. The Graduate School works closely with industry partners to provide student scholarships, teaching and guest lecturers, internships and mentoring.
At Whitireia, ICT staff worked with Ngāti Toa on Project Toa which comprises a number of collaborative research projects including Te Puna Reo, the Ngāti Toa Te Tiriti database and the Virtual Marae project involving the use of GPS and AR to support Māori history.
The ICT Graduate School is closely connected with the Wellington Tech Hub in which the Wellington tech community connects and collaborates to generate new and exciting ideas. Close working relationships with local innovation networks, such as Summer of Tech,
Hon Steven Joyce, Minister for Tertiary Education, Skills and Employment, launches the opening of the Wellington ICT Graduate School.
WELTEC AND WHITIREIA
Creative HQ and BizDojo, as well as with the Wellington Regional Economic Development Agency (WREDA) offers students opportunities to gain practical business skills and access to mentoring and experience. Whitireia and WelTec’s contribution to the ICT Graduate School includes the Master of Information and Technology and the Postgraduate Certificate and Diploma in Information Technology. Developed in association with industry and with industry in mind, these applied qualifications involve students completing an internship and special topic and/or project courses which can be adapted to a particular context or need that industry has.
working in industry and then went out on the job for the day with companies like IBM, Microsoft, ANZ, BNZ, Wellington Airport, Intergen, Trade Me, Xero and many more. New business connections were made and this was an excellent opportunity to promote our programmes to a whole new generation of potential techies. Speakers included Chalinor Baliuag WelTec IT Lecturer; and Mick Jays WelTec Head of School Business & IT, and Andrea Wolff and Georgia Bennett who provided inspiring addresses to the attendees (Bachelor of IT graduates and recipients of ANZ Top Female in ICT Awards.)
An event for Wellington secondary school girls to experience ICT with tech companies was a big success. Around 100 girls spent a day hearing from women
TradeMe goes all out to support ShadowTech Day. Trade Me’s Payments Sales Manager Ginny Ryder said of the event, “We’ve been working hard on promoting diversity at Trade Me and ensuring that we get a diverse range of candidates for any role we advertise. We’re aware that the tech industry has long held some gender stereotypes and we need to get more women into the industry. ShadowTech Day is a fantastic opportunity to show the amazing opportunities a career in tech can offer.
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ANNUAL REPORT 2016
CITY & GUILDS CENTRE OF EXCELLENCE WelTec’s School of Hospitality had an outstanding year. Most significantly City and Guilds recognised WelTec as an International Centre of Excellence – Asia Pacific. City & Guilds, a world leader in skills development, launched the new award to recognise outstanding achievement of City & Guilds centres around the world. An award is given to centres who have demonstrated excellence in a wide range of areas including quality of operations, learner experience and industry engagement. It celebrates the exceptional contribution made by the recipients to strengthening the global recognition of City & Guilds qualifications, highlighting the positive impact on progression opportunities for City & Guilds learners.
WelTec staff and students at the hospitality campus celebrating the announcement. At the forefront is chef tutor Robert Vansverry and WelTec’s Associate Head of School Hospitality Clare Jay.
This accolade recognised not only WelTec’s world-class campus – the New Zealand Centre for Hospitality and Culinary Arts situated in the heart of New Zealand’s culinary capital on Cuba Street Wellington, but also the award winning staff who teach to the highest professional culinary and hospitality standards. Another significant achievement was WelTec Hospitality graduate, Daniel Baird, being awarded the City & Guilds Medal for Excellence, one of only one-hundred medals available world-wide, confirming Daniel is a truly exceptional and talented young chef. This Award is the highest accolade for City & Guilds and has been running for over one-hundred years. Only eighteen medals were awarded to students outside the United Kingdom across a range of subjects. Daniel was recognised at a ceremony attended by Roger Sowry (Council Chair) and Dr Deborah Hume (Council member).
Dr Deborah Hume and Roger Sowry with Daniel Baird receiving his City & Guilds Medal for Excellence
WELTEC AND WHITIREIA
MASTER AND POSTGRADUATE PROFESSIONAL PRACTICE QUALIFICATIONS LAUNCH Whitireia and WelTec joined forces maximising resources and capabilities to create and deliver new interdisciplinary Professional Practice qualifications. The nationally renowned Faculty of Health Te Kura Hauora at Whitireia and the School of Health and Social Services Te Hau Tapu me te Puna Oranga at WelTec gained joint accreditation for three interdisciplinary postgraduate programmes of study enabling industry practitioners from the health and social practice workforce to undertake a postgraduate pathway to a Master’s degree, the Master of Professional Practice (with optional endorsement in Education or Leadership) or the Postgraduate Diploma in Professional Practice or Postgraduate Certificate in Professional Practice. These qualifications are a cohesive package of postgraduate training options
Dr Frances Hughes speaking at launch of Master of Professional Practice event
for the health and social services sectors, building on our combined reputation for quality education in Nursing, Paramedic, Counselling, Social Work, Addictions, and other delivery in emerging discipline areas such as Youth Development. Iwi, Pacific communities and industry partners from across the country contributed to the new qualifications designed for skill development by Health and Social Service professionals wanting to further their skills in working in interdisciplinary teams, leadership and development as well as increasing their knowledge in their chosen discipline. Such skill development is consistent with the New Zealand Health Strategy (released by the Ministry of Health April 2016) and notes a strong desire for better collaboration between Health and Social Services. These new qualifications were launched at an event on 7 September where the keynote speaker was Dr Frances
Hughes CEO of the International Council of Nurses, Geneva. Other speakers included Mr Chai Chuah, Director-General of Health and Chief Executive of the Ministry of Health, Mr David Waters, Chief Executive Ambulance New Zealand and a current student speaker Lisa Phillips who works in the field of addictions.. To support these new qualifications a Master of Professional Practice Industry Partnership Committee was established with representatives from the Council of Ambulance Authorities, Ambulance New Zealand Aeromedical Society of Australasia; Nursing and Midwifery, Capital and Coast District Health Board; Practice Development Unit, Wairarapa & Hutt Valley DHBs; Alcohol and Drug Studies, University of Auckland; Praxis Network; and the Ministry of Social Development – Central.
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ANNUAL REPORT 2016
academic The four joint committees of Academic Board were fully operational at WelTec and Whitireia in 2016. They comprised the Portfolio Committee, the Programme Committee, the Evaluation Committee, and the Ethics and Research Committee. Membership includes staff of both institutions and decision-making relates to Whitireia, WelTec and their subsidiaries with decisions being made in the context of the strategic partnership between the two institutions. As a consequence of the work undertaken by the committees, a portfolio framework was developed to ensure a strategic approach to the provision of vocational education. This provides the mechanism for determining Whitireia and WelTec’s portfolio of programmes. Four key principles guide decision-making: Relevance, Access, High Quality and Agility. The Academic Board agreed that the strategic portfolio will be delivered through six Centres of Learning: Creativity, Te Wānanga Māori; Tourism, Hospitality and Applied Business; Health and Wellbeing; Engineering, Construction and Information Technology, and Learner Journeys. Increased co-operation and collaboration across the two institutions has enhanced students’ access to learning opportunities. Over thirty new programmes of study were approved following the listing of qualifications after the Targeted Review of Qualifications. Many programmes, such as the
New Zealand Certificate in Construction Trades Skills (Level 3) developed in conjunction with BCITO and other ITPs, and the New Zealand Certificate in Health and Wellbeing (Social and Community Services) with strands developed in consultation with Plunket New Zealand, and mental health and addiction providers, replaced existing qualifications. The Bachelor of Teaching (Early Childhood Education) and the Bachelor of Health Science (Paramedic) offered by Whitireia were also redeveloped. Other new programmes of study approved for the two institutions included the Postgraduate Certificate and Postgraduate Diploma in Information and Communications Technology for delivery through the ICT Graduate School and the new four-year Bachelor of Social Work for Whitireia delivery. Whitireia also had the New Zealand Diploma in Ngā Toi approved under the Mātauranga Māori accreditation process led by the Māori Qualification Service of NZQA. Whitireia is currently the only provider in New Zealand to offer a programme of study for the Level 5 Ngā Toi qualification. Whitireia received NZQA accreditation to deliver the New Zealand Diploma in Enrolled Nursing.
The NZQA review panel visited WelTec during June and the review report was finalised in March 2017 with WelTec receiving a Confident rating for educational performance and a Confident rating for self-assessment. WelTec and Whitireia agreed to strengthen acknowledgement of the principles of Te Tiriti o Waitangi and responsiveness to Māori learners in all documentation. This focus reflects and supports the long-standing relationship that Whitireia has with Ngāti Toa and WelTec, with Te Ātiawa.
Engineering Tutor at WelTec Frank Cook (pictured with STEM secondary school teachers) was a finalist in the Technology Valley Awards.
During 2016 WelTec staff were actively engaged in preparation for the four yearly NZQA External Evaluation and Review visit.
Master of Professional Practice Industry Partnership Committee Back row, left to right: Dr Maria Ulloa, Programme Manager, Professional Practice Programmes, Wendy Trimmer, Whitireia, Carmel Haggerty, Whitireia, Chris Gosling, WelTec and Whitireia, Huia Peachey, WelTec, Lawrence Arps, Whitireia, Dr Julia Hennessy, WelTec, Karen Blakey, WelTec. Front row, left to right: David Waters, Chief Executive, Ambulance NZ, Claire Jennings, Associate Director of Nursing, Hutt Valley DHB, Andrea McCance, Director of Nursing & Midwifery, Capital Coast DHB, Lloyd Martin, Educator, Praxis, Hineamoa Tirikatene, Approval Assessor, Ministry of Social Development.
WELTEC AND WHITIREIA
Research and Innovation WelTec and Whitireia are committed to strengthening and promoting applied research and innovation activity through enhanced engagement with industry. Facilitating collaboration between staff and industry partners is considered vital. In the context of our strategic partnership, WelTec and Whitireia foster strong links between research outcomes and enhanced quality of teaching delivery. The Ako Aotearoa National Project “Funded Language in the Trades” focused upon how to communicate technical language to Pasifika students particularly those engaged in Trades programmes such as Automotive, Carpentry, Plumbing and Fabrication. A collaboration between WelTec’s Exercise Science and the Creative Industries created an innovative delivery method to help students understand functional anatomy by integrating knowledge of structural anatomy with understanding of posture and movement. Our staff worked, with the support of the Hutt City Council, on New Zealand’s first solar powered cell-phone charger tower. The prototype initiative, which was showcased at the 2016 Science Technology Engineering Maths and Manufacturing (STEMM) festival, involved WelTec staff developing a solar-powered battery lantern-charging facility for developing communities.
New Zealand’s first Solar Powered Cell phone Charging Tower – pictured left to right are WelTec Engineering lecturer Frans Weeihuzen, Tom Rabone 1ST Assembly Manager, Chris Gosling, Hutt City Mayor Ray Wallace, Steve Hainsworth and Sarath Malliyawadu from WelTec’s School of Engineering.
Academic staff at the Whitireia Faculty of Health focused on improved clinical practice for better outcomes for patients. Development of an educational partnership with Capital & Coast District Health Board (CCDHB) and Massey University reflected innovation of best practice clinical education in an industryrelevant clinical environment. A further project between Whitireia and CCDHB focused on a “Dignity in Care” initiative which aimed to encourage and role model high quality caring for patients. Innovation in Visual Arts and Design led to international recognition for the HandShake initiative by Whitireia staff and support from Creative New Zealand. HandShake is a mentoring project unique to the contemporary art world. WelTec and Whitireia partnered with the Open Polytechnic to hold an annual research symposium. The event provided an opportunity for many of our earlycareer staff to showcase their research and innovation. The keynote address, given by Dr Andrew Cleland, Royal Society NZ set the scene for the contribution that the ITPs play in research and innovation in the tertiary sector.
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ANNUAL REPORT 2016
Our People COLLABORATIVE APPROACH With the new directorate structure across WelTec and Whitireia confirmed in 2015 and following the appointment of new directors in 2016, consideration was given to how the areas in each could best be structured. The objective of this structure is to provide the best quality, relevant learning experience that we can for our students. The partnership between Whitireia and WelTec is designed to help both institutions deliver on these objectives and respond to these challenges by providing scale, increasing the pool of good ideas and creative thinking, avoiding unnecessary duplication; and enabling a joined up approach to our provision both in the Wellington region and nationally. This is at the same time as preserving all that is unique and important to our individual institutions – especially our close connections to our local communities and iwi. An innovative teaching and learning structure was developed in 2016 where our combined portfolio would be delivered through six Centres of Learning: Creativity, Te Wānanga Māori; Tourism,
Hospitality and Applied Business; Health and Wellbeing; Engineering, Construction and Information Technology, and Learner Journeys. This new Teaching and Learning structure includes heads of school roles that worked across both WelTec and Whitireia. The new Directorates will ensure close alignment and collaboration between the Schools and across other Centres of Learning and Schools where synergies exist. The joint (Whitireia and WelTec) management structure to tier three helps reinforce greater collaboration.
WELLBEING IN THE WORKPLACE Wellbeing initiatives and services were regularly offered at both institutes including free counselling, flu vaccinations, social events, a smoke-free environment and smoke-free cessation programmes available. Discounted health insurance, workplace assessments and the use of an Occupational Health Physician to support staff returning to work from ill-health. Access to either a gym onsite or discounted membership was available to most staff. Following a focus in 2015
on mental health in the workplace for managers, professional development was offered in early 2016 for academic staff to enable them to be able to identify any students that may need support and to educate on what there is available to them. A review of workplace wellbeing was conducted at the end of 2016 with a report to be made available to the Joint Leadership Team in 2017.
EEO When recruiting people at Whitireia and WelTec, EEO information is recorded and collected. Interview panels have balanced representation with WelTec and Whitireia attracting and retaining a diverse workforce. Where possible at least one member of interview panels should be the same gender and/or ethnic group as the applicant. EEO metrics continue to be monitored and reported on.
WELTEC AND WHITIREIA
WELTEC AND WHITIREIA STAFF PROFILE INFORMATION
CAPABILITY DEVELOPMENT A major role of the Capability Development Unit was to ensure that all staff are qualified in teaching, and that new staff especially are supported in developing good practice.
ETHNICITY - DECEMBER 2016 WHI TIR EIA
C LTE WE 60%
46%
10% 5%
6%
More widely, the unit organised a number of professional development events. These included Teaching and Learning Forums, Professional Development Days, workshops and panel work to support institutional self-assessment, Te Ao M훮ori programme for developing cultural competence, and a regional forum for teachers of practical subjects.
8%
3% 5% 7%
2% 26%
22%
NZ European/P훮keh훮 M훮ori Pacific Island
Asian Others Unknown
The team also undertook project work with schools and teams. In 2016 this included work with Automotive, Construction, Hospitality, Nursing, Trades Academy; projects with a wide range of focus from implementing e-learning to developing portfolios, developing effective leadership.
GENDER - DECEMBER 2016 Female
Male
HEALTH AND SAFETY
60% 40% 20% 0%
Corp Aca Mgmt Total Corp Aca Mgmt Total Whitireia WelTec 26%
36%
3%
65%
25%
19%
4%
48%
6%
26%
3%
35%
9%
40%
3%
52%
AVERAGE AGE - DECEMBER 2016
44
In 2016 the Capability Development Unit supported new teaching staff to get started through our Academic Induction programme, and teaching staff from WelTec undertaking their initial teacher qualification, Certificate in Tertiary Learning and Teaching. The team also supported good teaching practice for embedding literacy numeracy and teaching practice.
48
51
47
45
53
53
49
Corp Aca Mgmt Total Corp Aca Mgmt Total Whitireia WelTec
During 2016 a Health, Safety and Sustainability Manager was appointed to oversee the activities for both WelTec and Whitireia. Over the course of 2016, the health and safety team focused on a series of projects which were centred on developing engagement, wellness programmes and improved reporting processes. A total of 40 health and safety representatives were trained across WelTec and Whitireia in 2016.
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ANNUAL REPORT 2016
Equal education opportunities WelTec and Whitireia have developed significant opportunities and strategies to attract and then meet the needs of potential and enrolled students from priority groups and under-represented groups in the community, in order to address the issues of those who are disadvantaged in terms of being able to access tertiary education, and then to complete their study. In 2016, academic learning support was offered more widely across the institutions, in more classes and to more students. Part of this was attributable to increasing student need and in part to the determination of learning support staff to reach out to as many students as possible to ensure educational opportunities were equal, and that no student remained unaware of the support available. The WelTec Learning Commons academic learning team supported 3,369 students, in 15,553 interactions over 15,218 hours. Students were seen individually and in
small groups through appointments and drop-in sessions, as well as an increasing the number of in-class embedded support sessions, particularly around literacy and numeracy. More work was done supporting distance students by phone, text and email than in previous years. At Whitireia, the Poutama team supported 1,920 students, in 3,039 interactions over 5,378 hours primarily through group sessions, focused class sessions and individual appointments, both face-toface and online. Supporting students online was a growing area, doubling each year over the past three years; particularly with higher-level programmes. Support for students with disabilities was provided at both institutions. Extensive support was provided in the form of information to both students and their tutors, with appropriate assistance provided to help improve participation, retention, completion and progression.
At WelTec, the Ability Advisors and staff worked with 279 students in over 1,100 interactions. Some students required note-takers and reader/writers, others accessed pastoral support, academic support from Learning Advisors, peer tutor services, needed specialist equipment and alternative assessment arrangements. At Whitireia, the Accessibility Advisors and support workers worked with 223 students in 434 interactions. The support workers primarily provided note-taking services, and many of the students also accessed pastoral support, academic support, assistive technology and special accommodations for examinations. The accessibility advisors also presented class sessions to increase awareness and understanding of the effects of disabilities in academic life where required.
WELTEC AND WHITIREIA
Financial and budgeting advice at WelTec was given to 402 students in 708 interactions, and at Whitireia this service supported 611 students. This included providing emergency and hardship funding for students for transport, accommodation and health services. Pastoral care was available from mentors, from the Learning Commons, the Pasifika team and Tamaiti Whangai at WelTec. At Whitireia this support was provided from the Trades and Services faculty and Pasifika and Māori success coordinators. Students met with their mentors in class or out of class and received specific and individual care where there were issues which may have disadvantaged their progress. Health and counselling support was also provided to reduce barriers to student
success. At Whitireia, the nurse had 3,062 visits and 276 students visited the doctor who is on site once a week. Counselling for both institutions was provided by Vitae. Programmes at Whitireia and WelTec were offered which supported students with special needs, such as long-term illness, injury or learning disability, or who may be disadvantaged in terms of their ability to participate in tertiary education and second chance learners, such as failure at high school or in past programmes.
These are: • Certificate in Community and Vocational Learning Skills (WelTec); • Certificate in Vocational Learning Skills (WelTec); • Wellington Trades Academy (WelTec and Whitireia) including Level 1 programmes, STAR and Gateway: Transition from secondary school; and • a variety of Foundation level programmes. Students on all programmes were supported both internally by Ability Advisors and externally by agencies such as WorkBridge, as well as Learning Advisors, mentors and financial advisors.
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ANNUAL REPORT 2016
WELTEC AND WHITIREIA
statement of service performance Reporting on Outcomes
34
Business Plan Performance 43 Investment Plan Performance Commitments
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ANNUAL REPORT 2016
reporting on outcomes OUTCOMES FRAMEWORK As part of their Statement of Service Performance, Tertiary Education Organisations are required to report on an Outcomes Framework which enables readers to view an entity’s contribution beyond inputs and outputs. The purpose of reporting on outcomes in an educational context is to provide information about “changes in the state, condition, effects on, or consequences for the community, society, economy, or environment resulting from the existence and operations of the reporting entity” which is the definition used by the Office of the Auditor General. It also provides a narrative around the selected outcomes that describe the impact of participating and achieving in a tertiary educational organisation.
The TEC’s Investment Plan Guidance covering 2016 focussed on New Zealand continuing to develop a tertiary education system that is more flexible, outwardfacing and engaged. It identified the following six priorities for the tertiary system to change its direction or intensity to achieve the outcomes sought by the Government along with a strong focus on increasing the tertiary system’s contribution to economic growth. 1. Delivering skills for industry 2. Getting at-risk young people into a career 3. Boosting achievement of Māori and Pasifika 4. Improving adult literacy and numeracy 5. Strengthening research-based institutions 6. Growing international linkages
Recognising these priorities, we have defined our intended impacts (or outcomes) as: 1. Raising the skills and knowledge of the current and future workforce 2. Raising the skills and knowledge of priority groups of learners 3. Enhancing environmental sustainability 4. Contributing to the growth of the Wellington regional economy 5. Contributing to the growth of the national economy In presenting this Outcomes Framework we continue to welcome feedback from the sector to assist us in making improvements on outcomes reporting in future annual reports.
WELTEC AND WHITIREIA
DEMOGRAPHIC AND ECONOMIC CONTEXT During 2016, the Wellington region’s population and economy both grew faster than previously and this has resulted in projections about their future to be revised upwards.
ANTICIPATED POPULATION GROWTH
ESTIMATED WELLINGTON REGION POPULATION Source: Statistics New Zealand
Population
Annual percentage change 2013-2018
2013 (Actual)
486,700
-
2018 (Feb 2015 projection)
505,800
+0.8% p.a.
2018 (Feb 2017 projection)
515,200
+1.1% p.a.
AND A MORE RAPIDLY GROWING ECONOMY Employment in the region fell slightly in 2015, but picked up in 2016. The regional economy is expected to share in the national economy’s continued strength, and employment projections for the region have been revised sharply upwards.
ESTIMATED EMPLOYMENT IN THE WELLINGTON REGION Source: BERL. FTE = Full-time equivalent Estimated number of FTE jobs
Percentage growth from a year earlier
2015
230,059
-0.1%
2016
231,961
+0.8%
PROJECTED EMPLOYMENT GROWTH IN THE WELLINGTON REGION Source: MBIE Date of projection
Projection period
Projected jobs growth
Annual percentage change 2013-2018
Aug 2015
Mar 2015 to Mar 2018
6,900
1.0% p.a.
Nov 2016
Mar 2016 to Mar 2019
17,200
2.1% p.a.
MBIE forecasts that employment of highly skilled and skilled workers (i.e. Managers, Professionals and Trades/Technical workers) will grow by 3.3% per annum nationally between 2016 and 2019. The industries likely to grow the fastest will be Construction and Utilities, Business Services, Health and Education, Hospitality, and the Wholesale and Retail trades; it is important to note that both WelTec and Whitireia provision aligns well with these sectors.
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ANNUAL REPORT 2016
OUTCOME 1: THE SKILLS AND KNOWLEDGE OF THE CURRENT AND FUTURE WORKFORCE IS RAISED The contribution WelTec and Whitireia made to raising the skills and knowledge of the current and future workforce is demonstrated through a range of indicators including employer and graduate satisfaction; graduate pathways and learner achievement outcomes (EPIs). Whitireia
WelTec The proportion of graduates gaining employment or going onto further study1
2015
2016
75% (employment 52%; further study 23%)
77%2 (employment 62%; further study 15%)
22%
18%
have knowledge and skills for job/position
85% (+11% neither agree/disagree)
92% (+7% neither agree/disagree)
work readiness
78% (+17% neither agree/disagree)
79% (+18% neither agree/disagree)
qualification prepared me for future work requirements
85% (+10% neither agree/disagree)
90% (+8% neither agree/disagree)
qualification developed skills and knowledge for future studies
91% (+7% neither agree/disagree)
84% (+16% neither agree/disagree)
relevancy of training
80% (+11% neither agree/disagree)
90% (+7% neither agree/disagree)
82% (+8% neither agree/disagree)
80% (+12% neither agree/disagree)
relevancy of qualifications
81% (+9% neither agree/disagree
85% (+9% neither agree/disagree
77% (+10% neither agree/disagree
79% (+6% neither agree/disagree
work readiness of graduates
77% (+12% neither agree/disagree
74% (+12% neither agree/disagree
83% (+8% neither agree/disagree
82% (+6% neither agree/disagree
suitability of graduates for employer’s future needs
78% (+13% neither agree/disagree
81% (+12% neither agree/disagree
76% (+14% neither agree/disagree
84% (+6% neither agree/disagree
Proportion of graduates gaining employment or going onto further study Proportion of graduates looking for employment
2015
Survey with comparable measures not undertaken in 2015
2016
82% 3 (employment 68%; further study 14%) 14%
Graduate satisfaction 90% (+7% neither agree/disagree) Survey with comparable measures not undertaken in 2015
81% (+14% neither agree/disagree) 85% (+9% neither agree/disagree) 86% (+11% neither agree/disagree)
Employer satisfaction
1. 2. 3.
SAC/YG The sampling was conducted with graduates between 7 and 13 months after they completed the qualification. Previously this survey was conducted within 4 months of qualification completion. The sampling was conducted with graduates between 7 and 15 months after they completed the qualification.
WELTEC AND WHITIREIA
Whitireia
WelTec 2015 Student Success With interim ITP medians
2016
2015
2016
Student Achievement Component (SAC) students
Youth Guarantee students
Student Achievement Component (SAC) students
Youth Guarantee students
Student Achievement Component (SAC) students
Youth Guarantee students
Student Achievement Component (SAC) students
Youth Guarantee students
81%
80%
80%
69%
84%
75%
82%
74%
69%
73%
69%
61%
87%
71%
79%
71%
76%
77%
75%
79%
78%
70%
78%
73%
29%
67%
37%
73%
36%
33%
38%
32%
Successful completion of courses.4 2015 SAC: 78% 2015 YG: 75% 2016 SAC: 77% 2016 YG: 76%
Successful completion of qualifications.5 2015 SAC: 66% 2015 YG: 67% 2016 SAC: 67% 2016 YG: 66%
Students retained in study.6 2015 SAC: 69% 2015 YG: 69% 2016 SAC: 67% 2016 YG: 71%
Students progressing to higher level study (Levels 1-4).7 2015 SAC: 34% 2015 YG: 43% 2016 SAC: 36% 2016 YG: 44%
4. 5. 6. 7.
This indicator shows the proportion of courses enrolled in that are successfully completed. This indicator shows the proportion of students in a given year who complete a qualification. This indicator shows the proportion of students that complete a qualification or re-enrol at the same tertiary provider in the following year. This indicator shows the proportion of students who progress to study at a higher level after completing a qualification at Levels 1-3.
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ANNUAL REPORT 2016
OUTCOME 2: THE SKILLS AND KNOWLEDGE OF PRIORITY GROUPS OF LEARNERS ARE RAISED The contribution WelTec and Whitireia made to raising the skills and knowledge of the priority groups of learners is demonstrated through a range of indicators including participation, graduate pathways and learner achievement outcomes (EPIs).
Participation proportions of Priority Groups8
2015
2016
Māori
Pasifika
Under 25
Māori
Pasifika
Under 25
Total WelTec cohort (i.e. All Funding Sources)
18%
11%
65%
18%
11%
63%
SAC
21%
12%
62%
21%
13%
61%
YG
23%
12%
100%
34%
21%
100%
67% (employment 50%; further study 17%)
72% (employment 54%; further study 18%)
The Wellington Regional population mix includes 13% Māori and 8% of Pacific origin9 WelTec
Proportion of graduates gaining employment or going onto further study (SAC and YG)
79%
73%
73%
88% (employment 72%; further study 16%)
Proportion of graduates looking for employment
19%
20%
25%
6%
23%
22%
successful completion of courses
75%
69%
78%
74%
72%
78%
successful completion of qualifications
62%
52%
62%
62%
60%
67%
students retained in study
72%
66%
73%
68%
66%
73%
students progressing to higher level study (Levels 1-4)
31%
33%
40%
40%
41%
46%
Total WelTec cohort (i.e. All Funding Sources)
16%
19%
56%
16%
20%
57%
SAC
23%
21%
49%
23%
21%
50%
YG
32%
23%
100%
33%
22%
100%
83% (employment 59%; further study 24%)
85% (employment 69%; further study 16%)
83% (employment 58%; further study 25%)
15%
7%
14%
Success (SAC and YG)
Whitireia
Survey not undertaken in 2015
Proportion of graduates gaining employment or going onto further study (SAC and YG) Proportion of graduates looking for employment Success (SAC and YG) successful completion of courses
80%
76%
80%
74%
77%
79%
successful completion of qualifications
82%
72%
75%
66%
73%
70%
students retained in study
74%
76%
76%
74%
76%
77%
students progressing to higher level study (Levels 1-4)
35%
37%
41%
38%
34%
44%
8. 9.
% of Priority Group EFTS as % of total EFTS of the designated group http://www.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-a-place.aspx?request_value=14322&tabname=Culturaldiversity\
WELTEC AND WHITIREIA
OUTCOME 3: ENHANCED ENVIRONMENTAL SUSTAINABILITY Key environmental initiatives on campuses have included the following activities: • WelTec and Whitireia are members of the Sustainable Business Network (SBN) and as well as meeting with the Wellington Regional Coordinator from time to time, staff attended SBN workshops and meetings. • WelTec and Whitireia have a recycling programme which includes recyclable plastic, aluminium, glass and cardboard. In parts of each Polytechnic, staff are provided with waste cubes rather than individual rubbish bins • In WelTec’s Hospitality School, any unusable food is sorted and sent to “Kai to Compost”. Any useable excess food is offered to the city Mission or to Kaibosh food rescue for distribution. • A three-year research project begun in 2015 in the School of Hospitality is exploring the relationships between local government guidelines informing waste management practices and the practices employed by event organisers at New Zealand festivals. The ultimate aim of this project is to encourage the embedding of waste management planning into the event management practices in New Zealand in alignment with international standards. The pilot study involved six green-field and street festivals within three local authorities. The findings of the pilot study were disseminated at the WasteMINZ conference (October 2016) as part of a 90 minute workshop on zero waste events. • In many programmes, courses address environmental sustainability issues. For example the HV4530 Graduate Diploma in Engineering has a water and waste strand. • Engineering and Built Environment students showcased a range of environmental sustainable focused final year projects in November. Built Environment student projects focussed on designing a house for a medium density urban setting that could be run and maintained more cheaply without using fossil fuel energy sources or hydro. Engineering student projects focussed on a range of sustainability-related issues WelTec and Whitireia are currently reviewing their participation in Enviro-mark. WelTec has had Gold status Enviro-mark certification, which expired in September.
SCHOOL OF ENGINEERING TECHNOLOGY PROJECT TITLES 2016 CIVIL MAJOR
MECHANICAL MAJOR
ELECTRICAL MAJOR
Structural • Utilization of Carbon Fibre in Multi-story Buildings
• A-Cut for the Meat Industry • Grain Dryer
Mechatronics • Step Input Motor Testing Machine
• Wood Biomass Gasifier
• Hydrogen Direct Water Heater
• Hikitea Floating Crane
• Motion Simulator for ATVs (Stewart Platform)
• Modern Light-weight Bridging • Bridge Abutments • NC Machined Plywood for Medium Density Housing Water and Waste • Quantification of Sump Sediment and its Particle Size Distribution • Hydrologic Design of Rain Gardens • Quantitative Analysis of Water Usage in Residential NZ • Permeable Concrete • Hydraulic Modelling of Bioretention Device • Restoration of Streams in the Wellington Harbour Catchment • Concrete Formwork Design
• GMPP LSX Cylinder Head
• ECU for a Diesel Engine • Digital SLR Camera Time Lapse Rail • PLC based Simulation of Process Control • Control of an Inflatable Safety Device for ATVs Electrical • Evaluation of a Smart Drive for Educational Purposes
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ANNUAL REPORT 2016
OUTCOME 4: CONTRIBUTE TO THE GROWTH OF THE WELLINGTON ECONOMY How WelTec and Whitireia contribute to regional economic growth The flow chart below illustrates (in simplified form) how WelTec and Whitireia contribute to economic growth in the Wellington Region. The two institutions’ operational expenditures generate GDP and employment, but their main and enduring effect is to produce well-educated and trained students who add to the capacity and capability of the regional and national workforce, so enabling increased levels of productivity and prosperity.
Inputs
Activities
Student fees and living expenses
WelTec and Whitireia provision
Government grants
Outcomes
Outputs
GOP and employment
Increased workforce capacity and capability
Increased productivity and prosperty
Student completions
Contribution of WelTec and Whitireia operations to the Wellington regional economy10
GDP: $101.2 million Employment: 1,017 FTEs
To put the contribution of WelTec and Whitireia operations to the Wellington regional economy into context, BERL estimates that total GDP in the region in 2016 was $30,683 million in 2016, while employment was 231,971 FTEs. GDP of $101.2 million is the equivalent of 0.33% of the Wellington region’s GDP, and 1,107 FTEs is the equivalent of 0.44% of the region’s employment. WelTec and Whitireia, especially the latter, also have significant delivery in Auckland. BERL estimates that the two institutions contributed $15.0 million in GDP and 203 FTEs to the Auckland economy in 2016. On the same basis, BERL estimates that their contribution to the New Zealand economy was $140.1 million in GDP and 1,424 FTEs in 2016. These estimates exclude the effect, on the Wellington and Auckland regional economies, of spending by students to meet their living costs. Domestic students boost the Wellington and Auckland economies if they are not from either of those regions. International students boost the regional economies where they study as well as the national economy. While the Wellington Regional Strategy 2012 – Growing a Sustainable Economy11 has not been updated, its aim of developing a resilient and diverse economy, retaining and creating high value jobs, and improving the region’s relative economic position, remain valid and important to WelTec and Whitireia. The Strategy has six focus areas12. While WelTec and Whitireia activities directly or indirectly can be seen to contribute to all of the focus areas, the key contribution is providing for education and workforce development to service regional economy needs
10. The contributions shown are for the direct, indirect and induced effects, where the indirect and induced effects represent the flow-on, or multiplier, effects.
WELTEC AND WHITIREIA
Focus area 5: Education and workforce development to service regional economy needs This focus area is about building on existing connections and initiatives to grow the region’s skills and education base, and ensure the region’s specific skills needs are met. Five thousand, four hundred and thirty two qualifications were awarded by WelTec and Whitireia in 2016. Labour market outcomes and effectiveness in the workplace are tracked through graduate and employer surveys. The combined results of the WelTec and Whitireia graduate outcomes surveys for 2016 show that 65.8% of respondents had found work and a further 14.6% had progressed to further study. The employer survey results for the two institutions show high levels of satisfaction with the graduates, especially in relation to the skills and knowledge the students have gained.
Increased workforce capacity and capability
EMPLOYER SATISFACTION WITH WELTEC AND WHITIREIA GRADUATES,
Neither Agree
Agree/disagree
Disagree
The training programme developed my employee’s skills and knowledge in relation to their job or position
86%
9%
5%
The student’s knowledge, skills and attitudes reflect those I expect from a student with a qualification in this field
82%
8%
10%
The student/s have been prepared for work (i.e. work-ready)
78%
9%
13%
Students have the skills necessary for my future workforce requirements
82%
10%
8%
Percentage of those responding (N=125)
Increased productivity and prosperty
11. http://www.wrs.govt.nz/assets/WRS/Publications/Wellington-Regional-Strategy-2012 12. The six focus areas are Focus area 1: Commercialisation of innovation, Focus area 2: Investment mechanisms for growth, Focus area 3: Building world-class infrastructure, Focus area 4: Attracting business, investment and talent to the region, Focus area 5: Education and workforce development to service regional economy needs and Focus area 6: Open for business.
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ANNUAL REPORT 2016
OUTCOME 5: CONTRIBUTE TO THE GROWTH OF THE NATIONAL ECONOMY WelTec and Whitireia collectively contribute in particular to the Building Export Markets, Skilled and Safe Workplaces, and the Infrastructure components of government’s Business Growth Agenda:13 Building export markets Increasing exports is a key objective of the Government’s Business Growth Agenda; and the Tertiary Education Strategy highlights the contribution that part that tertiary providers can play, not only in terms of earning export revenues by educating overseas students, but also by helping to develop international linkages. Together, WelTec and Whitireia earned $27.0 million in fees from overseas students in 2016 by teaching almost 1,850 Equivalent Full-Time Students. These students will also have contributed to New Zealand’s export earnings by bringing money into the country for their living expenses. Some of the students will stay on in New Zealand, applying their skills and knowledge as employees. Some may start businesses. But most will go home with contacts and some knowledge of New Zealand and our way of doing business. This foundation will help them to develop trading relationships with New Zealand as their careers progress.
13.
Skilled workplaces The contribution of WelTec and Whitireia graduates to the regional skills base was outlined earlier, but it is important to note that the contribution is equally that to the national skills base. Graduates will join businesses and organisations that operate beyond narrow regional boundaries. Indeed, where businesses and organisations operate overseas or compete with imports, the graduates are also contributing to international competitiveness. Many of the international students that the two institutions educate and train return to their home countries when they graduate. However, some high performing international graduates with key skills join the New Zealand workforce and work towards residency. Infrastructure Appropriate, resilient infrastructure supports investment, growth and the quality of life in all parts of New Zealand. Key infrastructure improvements that WelTec and Whitireia graduates are well positioned to contribute to include the improvement of road networks, completing the deployment of ultra-fast and rural broadband, and construction activities such as earthquake strengthening and housing developments.
http://www.mbie.govt.nz/info-services/business/business-growth-agenda
WELTEC AND WHITIREIA
BUSINESS PLAN PERFORMANCE WELTEC AND WHITIREIA In 2016, WelTec and Whitireia entered a new phase of the Strategic Partnership. Under the leadership of a single Chief Executive, significant organisational changes were implemented to enable both institutions to better meet the needs of ākonga, industry and communities. Structural changes included the establishment of a Joint Leadership Team and realignment of staff and services into seven Directorates. These changes were accompanied by the introduction of a single Academic Board framework, joint shared services (such as IT, facilities management and procurement), and a progressive shift to single systems platforms to improve quality and access for ākonga and create efficiencies for staff. Strategy and planning was a key focus in 2016. The WelTec and Whitireia Strategic Framework 2017-2021 and the WelTec and Whitireia Investment Plan 2017-2018 were developed during the year and approved by Council. These documents set out the strategic direction and goals for establishing WelTec and Whitireia as the institutions of choice for learners seeking vocational education and training across the Wellington region. Other significant strategic changes included the development of the WelTec and Whitireia Strategic Programme Portfolio Framework and a blueprint for new Centres of Learning.
This programme of organisational change impacted on the 2016 business planning processes at both WelTec and Whitireia. Some planned activities were overtaken by new shared ways of doing things; others were paused until reviews can be undertaken across both institutions to determine future directions. New WelTec and Whitireia initiatives that have impacted on planned activities included: • A review of the Māori Strategies • A review of the Pacific Strategies • Appointment of a Chief Advisor Pacific Strategy in the latter part of 2016 • A review of surveys (employer, graduate, student and teaching) • A review of the industry engagement processes • The establishment of a joint WelTec and Whitireia Research and Innovation Office • The establishment of a joint WelTec and Whitireia International Team • The establishment of a joint WelTec and Whitireia Business Development Team.
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ANNUAL REPORT 2016
WELTEC BUSINESS PLAN Goal 1 Academic Excellence: WelTec will be a leader in applied learning and educational outcomes by creating a more highly skilled and knowledgeable society with equitable representation of priority groups WelTec enrolled 8,268 individual students in 2016 whose workload equated to 4,005 Equivalent Full Time Students (EFT). The key characteristics and educational outcomes for this group of students are detailed in the Statement of Service Performance section of this report. Numbers of students enrolled in 2016 Funding Arrangements 14
All
Māori
Pasifika
Under 25
TEC Supported (SAC and Youth Guarantee)
3,861
884
519
2,236
ITO Supported
1,887
212
68
1,242
9
468
International
887
Secondary School Partnerships
786
268
127
786
Other eg registration related provision, skills development
618
85
51
133
Community Education
334
68
40
36
Overall successful course completion results for SAC and international cohorts remained stable in 2016 while Youth Guarantee outcomes dropped.15 This decrease is likely to be the result of changes in both the student cohort and the Youth Guarantee programme portfolio. There was an increase in the proportion of students who had not yet achieved a level 2 NQF qualification and the National Certificate in Animal Care Level 2, which has traditionally attracted high numbers of capable students who needed it as a prerequisite for the National Certificate in Veterinary Nursing, was not offered in 2016.16 However, a focus of 2017 will be to improve completions for this group of students. During the year, there has been an emphasis on investigating quality indicators for educational performance at course and programme level using a range of qualitative and quantitative indicators. An investigation of new technologies that could assist to further identify students who would benefit from early interventions was undertaken, and new technologies were introduced at the end of the year. These will be monitored throughout 2017. WelTec’s commitment to ensuring equitable representation and outcomes for priority groups continued in 2016. Atiawanuitonu met three times (one meeting was a hui with the Council which included Te Komiti Poutokomanawa, the Ngāti Toa Advisory Group). The Memorandum of Understanding with Waiwhetu Marae supported both student and staff development through the Tamaiti Whāngai approach. The Kaiwhakahaere Māori and Tamaiti Whāngai staff provided cultural and pastoral support to both students and staff where and when appropriate. Three Māori and Pasifika Trade Training (MPTT) Consortium meetings were held. The focus of these meetings was on Māori and Pasifika success and a WelTec MPTT indicative successful course completion of 81% was achieved for the 2016 year.
14.
Some students were supported by more than one type of funding arrangement
15. There was a significant change in the YG Level 2 portfolio offerings in 2016. 16. Both programmes have been discontinued as a result of the Targeted Review of Qualifications.
WELTEC AND WHITIREIA
Goal 2
Goal 3
Goal 4
Economic Growth: WelTec will be a driver of economic growth linking skill development to job creation
Build a High-Performing Organisation
Valued Strategic Partnerships that Deliver Value
During 2016, WelTec went through a significant period of change as it entered a new phase of its Strategic Partnership with Whitireia. Consultation took place on a management structure for the delivery of learning and teaching resulting in a new structure, effective 1 April 2017 which will introduce a new era of joint leadership and management with discipline based schools spanning both Whitireia and WelTec.
Throughout the year Heads of School continued to engage with their Whitireia counterparts facilitating close collaboration between WelTec and Whitireia staff. Relationships with secondary schools continued to develop. In 2016 we moved beyond the state school sector and have been forming relationships with both integrated and private schools as well.
WelTec has continued to support economic growth and job creation through a number of initiatives. WelTec job brokers worked closely with many recruitment companies and employers, especially those involved with the MacKays to Peka Peka Project, as well as other businesses. Local builds such as Ryman’s Bob Scott Retirement Village and many local and national construction firms continued to create significant job and training opportunities for our graduates. Over the year, we also saw an increase in the number of apprenticeships being offered to WelTec students. All major programme clusters have Industry Partnership Committees in place. These committees provided advice related to industry direction and programme reviews. Thirty-eight Industry Partnership Committee meetings were held. A review of our future approach to strengthening links to industry and key business partners, locally, nationally and potentially internationally, is planned for mid-2017. International enrolments for the year generated 589 EFTS, 20% greater than the 491 EFTS achieved in 2015, a result of targeted offshore marketing activity. Growth occurred across the four key source markets/regions: India (19%), China (26%), South Asia (26%), and South East Asia (17%). A revamped WelTec and Whitireia International Team was established and will operate across all main campuses with a focus on building quality partnerships in key international marketplaces, notably India, China and selected ASEAN countries. A WelTec and Whitireia Research and Innovation office was established with all appointments completed by year end. Research productivity at WelTec significantly increased during the year. The 2016 WelTec and Whitireia Research Symposium, postponed due to the November 2016 earthquake, was delivered in February 2017.
The Capability Development Unit provided programmes to support induction, training, and the ongoing development of academic staff. Three Professional Development days were each well attended by staff. The launch of the new Te Ao Māori programme was successful with 80 staff participating. The “Good Oil” forum, led by teaching staff, was attended by 80 people from across the wider region. A Pulse Work Environment Survey undertaken in November indicated staff engagement benchmarks resulting from the 2015 WES survey had not been maintained at the previous high levels. Staff engagement will be a focus of the Joint Leadership Team in 2017. Financially, WelTec finished above budgeted levels. During the year, it agreed to an In-Plan amendment to the TEC Investment Plan that resulted in a slight decrease in funding for the year. This reduction in income was mitigated during the year with international student growth and a reduction in planned expenditure.
The Digital Student Attraction Platform was developed during the year and was live for the fourth quarter with on-going updates in functionality. The scoping of the next modules to be developed (student support, international, external communications) was completed and development of these modules will occur in 2017 to allow the current WelTec website to be retired.
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ANNUAL REPORT 2016
WHITIREIA OPERATIONAL PLAN Deliver Skills for Industry Workforce development meets employers’ skills demand Workforce development and meeting employer needs continued to be a key focus for Whitireia. The 2016 Whitireia Employer Satisfaction Survey was conducted in February 2017 by SIL Research, the company who surveys on behalf of WelTec. The same survey tool and process were used for both institutions. The survey found a large majority of employers (78% for each measure) were satisfied with the work readiness of Whitireia students and agreed that their qualifications were relevant. During 2016, Whitireia worked with industry to support the development of skills in a range of partnership initiatives. For example: • Bachelor of Social Work (BSW) staff partnered with the staff of Non-Governmental Organisations (NGOs) to develop a service learning model • A Faculty of Health, Capital and Coast District Health Board (CCDHB) and Massey University partnership piloted a dedicated education unit (DEU) to support third year nursing students • Te Wānanga Māori provided te reo teaching to a range of education, health and social sector organisations, for example, with the Department of Corrections, the Ministry of Foreign Affairs and Trades and Rangikura School Learners seeking vocational education and training across the Wellington region approach the WelTec and Whitireia Strategic Partnership as their first choice A total of 6,851 individual students chose to enrol at Whitireia in vocational education and training programmes in 2016; this equated to 3,984.02 Equivalent Full Time Students (EFTS). Whitireia Student Numbers by Funding Arrangements Numbers of students enrolled in 2016 Funding Arrangements
All
Māori
Pasifika
Under 25
TEC Supported (SAC, Youth Guarantee and MPTT)
3,664
839
701
1,746
International
1,956
295
1,219
17
Secondary School Partnerships
821
168
207
820
Other e.g. Domestic Full Fee, other contracts, Migrant English
187
41
22
36
Community Education
435
135
16
84
17.
Some students were supported by more than one type of funding arrangement
WELTEC AND WHITIREIA
Whitireia is recognised as a leading vocational tertiary provider at a national level Over recent years, Whitireia has consistently performed within the top quartile in the Tertiary Education Commission’s Educational Performance Indicator ranking tables for successful course and qualification completion. In the 2016 provisional results, Whitireia continues to perform well with a second place ranking for both successful course completion (82%) and qualification completion (79%); first for retention (78%); and sixth for progression (38%). International course completion increased by a pleasing 7.2 percentage points from 82.5% to 89.7% Whitireia ALL SAC and International Successful Course Completion 2015-2016 2015
2016
All SAC incl. MPTT
84%
82%
International
83%
90%
Whitireia ALL SAC and International Qualification Completion 2015-2016
2015
2016
All SAC incl. MPTT
87%
79%
International
82%
104%
Get At-Risk Young People into a Career At-risk young people have the information and the inspiration to get tertiary education and employment Whitireia is committed to ensuring young people can transform their lives through learning; this has been a key focus when developing the WelTec and Whitireia Strategic Framework 2017-2021. In the 2016 year, progress was made in the following areas of development: • Increasing numbers participating in the secondary/tertiary partnership (up from 706 in 2015 to 821 learners in 2016) • Provision of dedicated pastoral care for at-risk young people, including support for MPTT learners from Ngāti Toa health and social services • Building Dual Pathway options in Science for 2017 • Providing workshops/holiday programmes that introduced secondary students to disciplines and possible career pathways, for example, simulation suite workshops in Health, IT programmes offered in collaboration with Ngāti Toa and Te Ātiawa Feedback has been sought from learners on the ease of transition from school to tertiary education at Whitireia and used to modify and improve learning and teaching practice. For example, evaluations completed at the conclusion of the STAR and Trades Academy courses led to a review of the content of the 2016 Trades Academy Engines and Electricity course to make it more accessible and relevant for this particular group of learners.
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ANNUAL REPORT 2016
At-risk young people complete their qualifications and move into sustainable employment or further study Youth Guarantee qualification completion remained relatively constant in 2016; in the provisional TEC EPI data it is sitting at 71% (sector median equals 66%) which gives Whitireia a ranking of fourth (up from seventh in 2015). Youth Guarantee Qualification Completion 2015-2016 Youth Guarantee Qualification Completion
2015
2016
70%
71%
Youth Guarantee qualification completion remained relatively constant in 2016; in the provisional TEC EPI data it is sitting at 71% (sector median equals 66%) which gives Whitireia a ranking of fourth (up from seventh in 2015). Māori and Pacific Trades Training Qualification Completion 2015-2016 Māori and Pacific Trades Training Qualification Completion
2015
2016
59%
69%
Staff who work with young people in Māori and Pacific Trades Training programmes completed at least 20 hours of youth targeted professional development during 2016. This included enrolment in NCALNE, faculty professional development sessions, youth tutor network meetings and individual academic and professional study. Boost Achievement of Māori, Pacific and Youth Educational outcomes for Māori, Pacific and Youth meet or exceed national benchmarks In 2015, Māori, Pacific and Under 25 successful course completion and qualification completion exceeded the TEC sector medians. While 2016 Whitireia provisional course completion has remained relatively constant for Pacific and Youth, it has decreased for Māori. Provisional qualification completion has decreased for both Māori and Under 25s. The 2016 medians for these priority groups are not available at the time of writing. The Review of the Māori Strategy and the Review of the Pacific Strategies are two significant pieces of work being undertaken in 2017; they reflect the shared commitment of both WelTec and Whitireia to improving outcomes for Māori, Pacific and Under 25 learners.
WELTEC AND WHITIREIA
Māori, Pacific and Youth Successful Course Completion 2015-2016 2015 Whitireia
2016
Sector Median
Whitireia
Sector Median
All SAC
84%
79%
82%
76%
Māori
81%
74%
75%
Not available
Pacific
77%
73%
77%
Not available
Under 25
81%
79%
79%
Not available
Māori, Pacific and Youth Qualification Completion 2015-2016 All SAC
87.%
72%
79%
66%
Māori
83%
65%
66%
Not available
Pacific
73%
66%
74%
Not available
Under 25
79%
68%
70%
Not available
Building the cultural competence of staff is widely recognised as a key contributing factor in improving outcomes for Māori learners. Manaaki, a professional development framework that upholds personal belief systems while demonstrating an individual contribution to maintain and enhance the mana of the Whitireia community, was developed in 2016. The framework has a two-pronged approach comprising a Māori Language Strategy and E Amo e Rere. E Amo e Rere is a professional development tool aimed at raising staff confidence and competence in using te reo. The Manaaki framework, including E Amo e Rere, will be part of the Review of the WelTec and Whitireia Māori Strategies which is being undertaken in 2017. Increased cultural capital and capability within our Māori and Pacific communities Strong external relationships with Māori and Pacific communities Te Komiti Poutokomanawa met four times in 2016; one meeting was a hui with Ātiawanuitonu (Te Ātiawa Advisory Group) and Council. The primary kaupapa for the 2016 year were the progression of the Ngāti Toa Education Strategy; Māori and Pacific Trades Training programme; Te Kāhui Auaha project; the WelTec and Whitireia Strategic Partnership and organisational change; and Māori success at Whitireia. The position of Chief Advisor Pacific Strategy was created and filled in the latter part of 2016. A key responsibility of this position is to review the Pacific Strategies of both institutions. A WelTec and Whitireia Pacific Reference Group will be established to provide strategic and quality advice on improving educational and employment outcomes for Pacific learners.
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ANNUAL REPORT 2016
Improve Adult Literacy and Numeracy Foundation graduates increase engagement in further education and community through improved literacy and numeracy Literacy and numeracy is embedded within the delivery and course content of all appropriate Levels 1-3 programmes of study and an increasing number of Level 4 programmes. The literacy (reading) and numeracy levels of students enrolled in SAC 1 and 2 provision, Youth Guarantee provision and Māori and Pacific Trade Training were assessed using the TEC’s Literacy and Numeracy for Adults Assessment Tool. Of those assessed initially being at Steps 1 to 3 for Reading or 1 to 4 for Numeracy, retesting indicated that in terms of EFTS enrolled for, 67% showed an improvement in reading and 73% showed an improvement in numeracy when retested at the end of their study. Across the Health, Trades and Services, and Business Faculties, all staff who require NCALNE completed the qualification; other staff, for whom it is not mandatory, are also enrolling in and completing the qualification. Staff report on literacy and numeracy in their annual performance appraisal meeting with their manager. Strengthen Research Whitireia is recognised as being a leader in applied research that supports professional and vocational learning and knowledge transfer Whitireia continues to build its reputation in the field of applied research that supports professional and vocational learning and knowledge transfer. Whitireia staff were involved in three national Ako Aotearoa funded research projects: • Evaluating the Effectiveness of Support Interventions for Dyslexic Learners in Multiple Learning Environments • PD for Experienced Teachers in Tertiary Vocational Education • Articulating and Implementing a “Pedagogy of Success” for Pacific Students In Tertiary Education Collaborations were established with a range of other tertiary institutions and industry and community groups, for example: • Dignity Project with CCDHB and Victoria University of Wellington (VUW) • Kia ora Hauroa: Programme Evaluation Study with CCDHB and Kia Ora Hauora • Software Defined Networking (SDN) Project with VUW • Two external research events were held at Whitireia during the year. These were: • Pasifika Educational Research Symposium (organised by Pasifika Caucus for Educational Research), 19 November, Porirua Campus • Student Paramedics Australasia (SPA) Conference, 20-22 April, Porirua Campus In addition to research and scholarly activity, staff contributed to a wide range of industry, government and non-government, and community organisations, for example, as members of professional organisations, boards and advisory committees; as speakers and trainers; as supervisors, monitors, moderators and judges. These are recorded in the Research Management System (ROMS).
WELTEC AND WHITIREIA
Whitireia has increased staff research capability and research outputs Research capawbility continues to develop and grow at Whitireia. A total of a 175 quality assured research outputs were achieved in 2016. Outputs included seven quality assured outputs with Māori content, six quality assured outputs with Pacific content and four Pacific non-quality assured outputs. Research projects in progress with a Māori focus are: • Project Toa which includes Te Puna Reo, the Ngāti Toa Te Tiriti database and the Virtual Marae Project involving the use of GPS and AR to support Māori history • Te Mauri o te Mana Māori – two students (who are staff) completed their Master of Information Technology under this umbrella and have gone on to work with the Mahuki group at Te Papa; two Masters students commenced projects, one is investigating Māori keyboard design and one is researching image recognition Research capability development included: • A workshop for members of the newly established Ethics and Research Committee facilitated by Dr John O’Neill, Massey University • Five internal information/training sessions delivered by the Research Manager In addition, seventeen staff are currently enrolled in PhD programmes. Whitireia graduates at degree level and above deliver increased economic and social value for New Zealand Whitireia makes a significant social, economic, and cultural contribution to New Zealand society. Graduates gain worthwhile degree level qualifications that lead to good employment outcomes in the fields of health, social work, early childhood, business and information technology and the creative and performing arts. As many Whitireia learners come from populations that experience significant barriers to education, gaining a degree level or above qualification can be life-changing for them and their whānau. While the number of qualifications awarded at degree level decreased in 2016, the number of post-graduate qualifications awarded increased. Qualification completion rates remain high for degrees and have increased at postgraduate level. Qualifications Awarded at Degree Level and Above in 2015 and 2016 No of qualifications awarded
No. of EFTS delivered
Qualification completion rate
2015
2016
2015
2016
2015
2016
Degrees (L7)18
712
624
1,610
1,436
106% 19
99%
Postgraduate (L8-9)
292
342
352
381
79%
86%
18.
Includes Graduate Certificates and Diplomas
19. The ‘qualification completion’ indicator shows the proportion of students that complete a qualification in a given year. However the qualification completion rate can be affected by factors that do not reflect the performance of a TEO, such as the part time factor or changes in enrolments.
51
52
ANNUAL REPORT 2016
Grow International Linkages and Income Whitireia graduates have experienced an education environment informed by international trends and research Whitireia staff continued to forge international research collaborations and networks. Twenty-two staff went to 19 international conferences to give presentations (16 oral presentations; 6 poster presentations). Staff from Whitireia and Hunan University (Hunan Province, China) gave a joint presentation on their partnership contract at the Sino/New Zealand Conference. The partnership contract is for the delivery of 12 weeks of teaching in China for each cohort enrolled in the Visual Arts degree offered by Hunan City University. Whitireia is a preferred provider for international students seeking technical and vocational education International enrolments for 2016 generated 1,048 EFTS20, 12.6% down on the 1,200 EFTS achieved in 2015. EFTS from China were down by 5%, while numbers from India fell by 19% from the record high achieved in 2015. These drops were partially offset by increased student numbers from other emerging Asian markets, including 17% EFTS growth across ASEAN countries in South East Asia. There are 16 active partnership agreements with Chinese partners, through which Whitireia receives students ranging from short-term teacher training programmes and English training programmes, to 2+1 or 3+1 articulation programmes. Whitireia has two active partnership agreements with Japanese partners for English training programmes. There are further international partnerships in development, but not yet active.
20.
These totals do not include EFTS from delivery in Tonga.
WELTEC AND WHITIREIA
Investment Plan Performance Commitments An in-depth analysis of results and development of actions to improve outcomes takes place as part of the annual self-evaluation and reporting cycle that is completed post Annual Report publication. There will be a single joint 2016 organisational evaluation report that will be considered by the Academic Board later in the year.
WELTEC Economic Development Contribution Employer Satisfaction Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
Relevant qualifications21
91%
92%
94%
Work readiness of WelTec graduates22
89%
95%
86%
75% (employment 52%; further study 23%) A further 22% were looking for employment
80%
77% (employment 62%; further study 15%) A further 18% were looking for employment
% of FTE degree and postgraduate teaching staff engaged in active research projects
48%
90%
42%
Number of quality assured research outputs
5524
12525
100
Student Graduate Destinations Proportion graduates gaining employment or going onto further study23
Research
A WelTec and Whitireia Research and Innovation Office has been established and a joint Research and Innovation Strategy is being developed. This will include a review of current targets and outcomes. International Student Contribution International EFTS
491
400
590
Published report
BERL report published – see Outcomes 4 and 5 in Reporting on Outcomes section
26%
28%
Economic Impact Direct and indirect economic impact of WelTec on the Wellington Region
Report published
Diversified revenue growth % of revenue from non-TEC funded related activities
21. 22. 23.
As assessed by the annual Employer Satisfaction survey As assessed by the annual Employer Satisfaction survey
As assessed by Graduate Employment Outcome survey: 2016 response rate was 28%
28%
24. 25.
Only quality assured outputs were reported
The basis of the target when it was developed was the total number of refereed and non-refereed research outputs produced. In 2015 and 2016 as per the SSP, only quality assured outputs have been reported
53
54
ANNUAL REPORT 2016
Academic Achievement Provision by Funding Source (EFTS) Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
145
110
110
SAC Level 1 to 2 Level 3 and above
2,446
2,465
2,418
2,591
2,575
2,528
Level 1 to 2
62
62
63
Level 3 and above
65
67
50
127
129
113
Secondary School based delivery26
298
280
213
ITO
444
360
478
Full fee and contracts
68
40
49
Adult and Community Education
47
40
34
Total YG
Total Other
International Total
491
400
590
4,066
3,824
4,005
Priority Groups – Participation SAC Māori
Pacific
Under 25
All levels
21%
Level 1 to 2
1.6%
2%
1.2%
21%
Level 3 and above
19%
17%
20%
All levels
12%
Level 1 to 2
0.7%
1%
0.8%
Level 3 and above
11%
10%
12%
13%
All levels
61%
Level 1 to 2
3.1%
5%
2.8%
61%
Level 3 and above
58%
60%
58%
Māori
All levels
23%
48%
34%
Pacific
All levels
12%
10%
21%
YG
26.
Includes Trades Academy and STAR
WELTEC AND WHITIREIA
Educational Performance Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
All levels
81%
82%
80%
Level 1 to 2
80%
80%
74%
Level 3 and above
81%
82%
81%
All levels
69%
76%
69%
Level 1 to 2
77%
75%
72%
Level 3 and above
68%
76%
68%
Student Retention
All levels
76%
70%
75%
Student Progression
Level 1 -3
32%
44%
40%
Level 1 to 2
78%
78%
60%
Level 3 and above
75%
79%
75%
Level 1 to 2
72%
73%
59%
Level 3 and above
63%
72%
63%
Level 1 to 2
66%
80%
79%
Level 3 and above
69%
79%
72%
Level 1 to 2
62%
73%
74%
Level 3 and above
54%
72%
60%
Level 1 to 2
79%
80%
71%
Level 3 and above
78%
82%
79%
Level 1 to 2
77%
75%
69%
Level 3 and above
63%
76%
68%
Course Completion
All levels
80%
79%
69%
Qualification Completion
All levels
73%
73%
61%
Course Completion
All levels
73%
79%
63%
Qualification Completion
All levels
66%
73%
57%
Course Completion
All levels
75%
79%
62%
Qualification Completion
All levels
73%
73%
53%
All levels
87%
88%
90%
Level 1 to 2
72%
78%
Level 3 and above
88%
91%
All levels
71%
SAC All Students Course Completion
Qualification Completion
MÄ ori Course Completion Qualification Completion Pacific Course Completion Qualification Completion Learners aged Under 25 Course Completion Qualification Completion
YG All Students
MÄ ori
Pacific
International Course Completion
Qualification Completion
82%
79%
55
56
ANNUAL REPORT 2016
Student satisfaction Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
All students
96%
95%
94%
Māori
99%
95%
98%
Pacific
98%
95%
96%
Under 25s
97%
95%
96%
96%
95%
94%
SAC & YG
International International
LLN (Literacy, Language and Numeracy) SAC & YG The proportion of EFTS assessed as requiring additional literacy and numeracy who are enrolled in level 1 - 3 provision and make literacy and numeracy progress as measured by the Literacy and Numeracy for Adults Assessment Tool
For students who were assessed
For students who were assessed
70%
62%: gain for reading 72%: gain for numeracy
2016 Planned
2016 Actual
69%: gain for reading 65%: gain for numeracy
Valued Partnerships Key Stakeholder satisfaction27 Objectives
Measures 2015 Actual
Whole of organisation indicator Māori Pacific Peoples Key Government agencies Regional and local government
Report published These were planned 2015 / 2016 Investment Plan Outputs. Reports will be published in 2016
Wellington Region Secondary Schools
Report published Report published
Not achieved
Report published Report published
Formal reports were not published. With the WelTec Whitireia strategic partnership as a new focus, stakeholder relationships with Māori, Pasfika, Central and Local Government agencies and secondary schools continued to evolve. Relationships with these key stakeholders were addressed in the joint WelTec and Whitireia Strategic Framework 2017-2021 and the joint WelTec and Whitireia Investment Plan 2017-2019.
Progress with key Strategic Partnership priorities Whole of organisation indicator
WelTec Whitireia strategic partnership progress
27. 28.
Report published: Achieved
Results from independent surveys of identified stakeholder group satisfaction with WelTec Three year moving average net surplus ratio
Report published
Progress was made and the WelTec and Whitireia Strategic Framework 2017-2021 and 20172018 Investment Plan approved.
WELTEC AND WHITIREIA
High Performing Organisation Financial strength and sustainability Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
2.1%
2.5%
3.3%
1:19
1:20
1:18
2015 Actual
2016 Planned
2016 Actual
Achieved
Maintained
WelTec’s Gold status certification expired in September.
Whole of organisation indicator Financial Strength Financial Surplus %28 (Operating Surplus/ Total Revenue) Financial Sustainability Teaching FTE to EFTS Ratio
Infrastructure and systems Objectives
Measures
Whole of organisation indicator Environ Mark Gold level maintained
Enviro-mark participation is currently being reviewed in the light of the joint WelTec Whitireia strategic partnership.
Staff Engagement29
29.
Staff Engagement Survey
30. The 2015 Survey was conducted prior to graduation thus the majority of graduates had just completed their studies and at the time were actively looking for employment.
A Work Environment Survey (WES) was completed and a Steering Group was established to provide leadership oversight for the development of a WES project plan and its implementation.
Benchmark (2015 achievement) maintained or improved
Pulse Work Environment Survey undertaken. Staff engagement will be a focus of the Joint Leadership Team in 2017.
57
58
ANNUAL REPORT 2016
WHITIREIA Economic Development Contribution Employer Satisfaction Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
Employer Survey was not reported on in the 2015 SSP
90%
85%
95%
88%
46% have gained employment30
80%
82% 31 (employment 68%; further study 14%; looking for work 14%)
% of FTE degree and postgraduate teaching staff engaged in active research projects32
78%
90%
60%
Number of quality assured research outputs
192
200
17533
Relevant qualifications Work readiness of Whitireia graduates
Student Graduate Destinations SAC & YG Proportion graduates gaining employment or going on to further study
Research
A WelTec and Whitireia Research and Innovation Office has been established and a joint Research and Innovation Strategy is being developed. This will include a review of current targets and outcomes. International Student Contribution International EFTS
1,359
1,075
1,26434
These were planned 2015 / 2016 Investment Plan Outputs. Reports will be published in 2016
Published report
Report published 35
55%
58% (provisional)
Economic Impact Direct and indirect economic impact of Whitireia on the Wellington Region
Diversified revenue growth % of revenue from non-TEC funded related activities
31. The 2016 Survey was conducted with graduates between 7 and 15 months after they completed their qualification. 2016 response rate was 25% 32. This measure is calculated as the percent of degree and postgraduate teaching staff (0.2 FTE or higher) who produced one or more quality assured research outputs 33. The WelTec and Whitireia Research Symposium scheduled for November 2016 was postponed until 3 February 2017 following the disruption caused by the Kaikoura earthquake. This may have impacted on the total number of quality assured research outputs for 2016.
57%
34. Includes delivery in Tonga 35. BERL report published - see Outcomes Framework section of Annual Report: Outcome 4: Contribute to the Growth of the Wellington Economy, Outcome 5: Contribute to the Growth of the National Economy
WELTEC AND WHITIREIA
SAC Level 1-2 Performance Commitments
Measures 2015 Actual
2016 Planned
2016 Actual
Māori
35%
27%
33%
Pacific
22%
27%
19%
Participation
Educational Performance Course Completion
All Students level 1-2
76%
80%
69%
Qualification Completion
All Students level 1-2
72%
77%
65%
Retention
All Students level 1-2
73%
72%
74%
All Students level 1-2 to a higher level
38%
35%
39%
Level 3 and above
49%
51%
51%
Level 4 and above
48%
50%
51%
Level 3 and above
21%
22%
22%
Level 4 and above
20%
22%
21%
Level 3 and above
20%
21%
21%
Level 4 and above
20%
19%
20%
Level 3 and above
85%
86%
84%
Level 4 and above
86%
87%
84%
Level 3 and above
82%
84%
81%
Level 4 and above
83%
85%
82%
Level 3 and above
82%
84%
79%
Level 4 and above
84%
84%
81%
Level 3 and above
79%
84%
78%
Level 4 and above
79%
84%
77%
Level 3 and above
87%
84%
81%
Level 4 and above
89%
85%
80%
Level 3 and above
77%
84%
71%
Level 4 and above
78%
84%
69%
Level 3 and above
85%
82%
70%
Level 4 and above
88%
83%
69%
Level 3 and above
74%
76%
75%
Level 4 and above
74%
73%
71%
All Students
Level 3 and above
78%
78%
79%
Māori
Level 3 and above
77%
75%
76%
Pacific
Level 4 and above
76%
73%
79%
All Students
Level 1 to 3, to a higher level
31%
31%
33%
Māori
Level 1 to 3, to a higher level
33%
35%
36%
Pacific
Level 1 to 3, to a higher level
36%
31%
36%
Progression
SAC Level 3-9 Performance Commitments Participation: The proportion of SAC Eligible EFTS who are: Under 25 Māori Pacific Educational Performance Course Completion All SAC Students Under 25 Māori Pacific Qualification Completion All SAC Students Under 25 Māori Pacific Student Retention
Student Progression
59
60
ANNUAL REPORT 2016
Student satisfaction Objectives
Measures 2015 Actual
2016 Planned
2016 Actual
92%
95%
97% 36
SAC & YG All students Māori
95%
Pacific
95%
Under 25s
95%
International International
95%
LLN (Literacy, Language and Numeracy) SAC & YG The proportion of EFTS assessed as requiring additional literacy and numeracy who are enrolled in level 1 - 3 provision and make literacy and numeracy progress as measured by the Literacy and Numeracy for Adults Assessment Tool
For students who were assessed
70%
64%: gain for reading 70%: gain for numeracy
For students who were assessed 67%: gain for reading 73%: gain for numeracy
Valued Partnerships Key Stakeholder satisfaction Measures 2015 Actual Māori Pasifika Key Government agencies Regional and local government
2016 Planned
2016 Actual
Report published These were planned 2015 / 2016 Investment Plan Outputs. Reports will be published in 2016
Wellington Region Secondary Schools
Report published Report published
No report published 37
Report published Report published
Formal reports were not published. With the WelTec Whitireia strategic partnership as a new focus, stakeholder relationships with Māori, Pasfika, Central and Local Government agencies and secondary schools continued to evolve. Relationships with these key stakeholders were addressed in the joint WelTec and Whitireia Strategic Framework 2017-2021 and the joint WelTec and Whitireia Investment Plan 2017-2019. Progress with key Strategic Partnership priorities
WelTec Whitireia strategic partnership progress
These were planned 2015 / 2016 Investment Plan Outputs. Reports will be published in 2016
36. The 2016 Student Satisfaction Survey responses did not distinguish between demographic groups. 37. Formal reports were not published.
Report published
Progress was made and the WelTec and Whitireia Strategic Framework 2017-2021 and 20172018 Investment Plan approved.
WELTEC AND WHITIREIA
High Performing Organisation Financial strength and sustainability Measures 2015 Actual
2016 Planned
2016 Actual
5.5%
3%
-1.7% (provisional)
1:19
1:20
1:17
Financial Strength Financial Surplus % (Operating Surplus / Total Revenue) Financial Sustainability Teaching FTE to EFTS Ratio
Infrastructure and systems Measures 2015 Actual
Environmental Impact
Staff Engagement
2016 Planned
2016 Actual
These were planned 2015 / 2016 Investment Plan Outputs. Reports will be published in 2016.
Benchmark maintained or improved
As part of the Strategic Partnership, a new Health and Safety Team has been formed and will complete environmental management plans for all campuses by the end of 2017.
77%
Benchmark maintained or improved (Benchmark (2015): 77%)
Pulse Work Environment Survey undertaken November 2016.
61
62
ANNUAL REPORT 2016
WELTEC AND WHITIREIA
Financial statements Weltec Statement of Comprehensive Income
64
Statement of Changes in Equity
65
Statement of Financial Position
66
Statement of Cash flows
67
Notes to the Financial Statements
68
Statement of Compliance and Responsibility
91
63
64
ANNUAL REPORT 2016
WELTEC
Statement of Comprehensive Income For the year ended 31 December 2016 Parent
Group Note
2016 Actual $000
Government funding
2
27,378
Tuition funding
3
10,114
2016 Budget $000
2015 Actual $000
2016 Actual $000
2016 Budget $000
2015 Actual $000
28,042
28,000
27,378
28,042
28,000
12,030
10,212
10,114
12,030
10,212
Revenue Revenue from non-exchange transactions
Revenue from exchange transactions Tuition funding
4
10,258
7,613
8,600
10,258
7,613
8,556
Other teaching
5
3,621
3,552
3,918
3,621
3,552
3,918
Other income
6
6,007
5,360
5,705
2,612
2,132
2,703
389
535
431
385
535
423
57,767
57,132
56,866
54,368
53,904
53,812
31,461
31,005
31,049
31,026
30,592
30,676
4,712
5,036
4,558
4,712
4,965
4,458
Interest and dividend income Total operating income Cost of services Personnel
7
Teaching delivery Administration
8
7,377
7,776
7,154
7,158
7,658
6,961
Infrastructure
9
8,377
8,050
8,946
5,581
5,514
6,158
Depreciation and amortisation
10
Total cost of services Operating profit Non operating items (expense)
11
Share of jointly controlled entities (loss)
15
Profit
3,770
3,563
3,945
3,743
3,537
3,921
55,697
55,430
55,652
52,220
52,266
52,174
2,070
1,702
1,214
2,148
1,638
1,638
(51)
-
(204)
195
-
(450)
180
-
145
-
-
-
2,199
1,702
1,155
2,343
1,638
1,188
2,586
-
2,837
2,586
-
2,837
Other comprehensive revenue and expenditure Movement in property revaluation reserve
24
Movement in plant revaluation reserve
24
Total comprehensive revenue and expenditure
The accompanying notes form part of these financial statements
531
-
(18)
531
-
(18)
5,316
1,702
3,974
5,460
1,638
4,007
WELTEC AND WHITIREIA
WELTEC
Statement of Changes in Equity For the year ended 31 December 2016 Parent
Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2016 Budget $000
2015 Actual $000
77,912
77,912
73,938
77,917
78,504
73,910
Profit for the year
2,199
1,702
1,155
2,343
1,638
1,188
Other comprehensive income
3,117
-
2,819
3,117
-
2,819
Total comprehensive income
5,316
1,702
3,974
5,460
1,638
4,007
Balance at 31 December
83,228
79,614
77,912
83,377
80,142
77,917
Balance at 1 January Comprehensive income
The accompanying notes form part of these financial statements
65
66
ANNUAL REPORT 2016
WELTEC
Statement of Financial Position For the year ended 31 December 2016
Parent
Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2016 Budget $000
2015 Actual $000
Cash and cash equivalents
25
13,530
8,542
11,226
12,845
7,943
10,692
Receivables
12
7,398
6,236
5,629
7,373
5,937
5,591
Inventory
13
Current assets
Total current assets
308
295
289
308
295
289
21,226
15,073
17,144
20,527
14,174
16,572
Non current assets Investment in subsidiary
14
-
-
-
-
-
-
Investment in associate and jointly controlled entities
15
904
926
723
140
926
140
Property, plant and equipment
16
77,759
79,939
77,021
77,746
79,937
76,994
Intangible assets
17
644
754
364
643
744
354
79,306
81,619
78,108
78,529
81,607
77,488
100,542
96,692
95,252
99,056
95,782
94,060
Total non current assets Total assets Current liabilities Payables
18
5,320
5,617
5,592
5,036
5,287
5,492
Employee benefit provisions
19
1,944
2,823
2,688
1,923
2,795
2,664
Income in advance
20
8,965
7,872
8,294
8,527
6,793
7,812
16,229
16,312
16,574
15,486
14,875
15,968
189
171
171
189
171
171
896
595
595
4
595
4
1,085
766
766
193
766
175
Total liabilities
17,314
17,078
17,340
15,679
15,641
16,143
Net assets
83,228
79,614
77,912
83,377
80,142
77,917
Total current liabilities Non current liabilities Employee benefit provisions
21
Other non current liabilities Total non current liabilities
Equity Crown equity
22
39,332
39,332
39,332
39,332
39,332
39,332
Retained earnings
23
11,304
10,807
9,105
11,453
11,335
9,110
Reserves
24
Total equity
32,592
29,475
29,475
32,592
29,475
29,475
83,228
79,614
77,912
83,377
80,142
77,917
The accompanying notes form part of these financial statements
67
WELTEC AND WHITIREIA
WELTEC
Statement of Cash flows For the year ended 31 December 2016
Parent
Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2016 Budget $000
2015 Actual $000
57,268
55,439
59,372
53,041
52,239
56,370
Cash flows from operating activities Receipts from customers Interest received Payments to suppliers and employees GST (net) Net cash provided by/(used in) operating activities
25
402
398
444
371
382
409
(53,590)
(51,600)
(52,866)
(49,489)
(48,449)
(49,698)
(81)
-
164
(76)
-
158
3,999
4,237
7,114
3,847
4,172
7,239
0
(50)
5
0
(50)
5
(1,150)
(6,208)
(4,724)
(1,146)
(6,208)
(4,712)
(547)
(663)
(107)
(547)
(663)
(107)
Cash flows from investing activities Receipts from sale of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible assets Investment in associate
-
-
-
-
-
-
(1,697)
(6,921)
(4,826)
(1,693)
(6,921)
(4,814)
2,303
(2,684)
2,288
2,154
(2,749)
2,425
11,226
11,226
8,938
10,692
10,692
8,267
13,530
8,542
11,226
12,845
7,943
10,692
Cash at bank and in hand
3,912
2,467
2,947
3,670
2,268
2,671
Term deposits - BNZ Bank
4,442
1,900
4,258
4,000
1,500
4,000
Term deposits - Westpac
5,175
4,175
4,021
5,175
4,175
4,021
13,530
8,542
11,226
12,845
7,943
10,692
Net cash (used in)/provided by investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year
25
Represented by:
The GST (net) component of operating activities reflects the net GST paid to and received from Inland Revenue. The GST (net) component has been presented on a net basis as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the presentation basis of the other primary financial statements.
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ANNUAL REPORT 2016
WELTEC
NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2016 REPORTING ENTITY
SIGNIFICANT ACCOUNTING POLICIES
Wellington Institute of Technology (WelTec) is a Crown Entity governed by the Crown Entities Act 2004 and the Education Act 1989. It provides full-time and part-time tertiary education in New Zealand.
Basis of consolidation
WelTec and Group consists of Wellington Institute of Technology and its trading subsidary WelTec Student Accommodation Limited (100% owned), and non-trading subsidiaries WelTec Enterprises Limited (100% owned) and WelTec Connect Limited (100% owned). WelTec Connect Limited has a 43.15% interest in Le Cordon Bleu New Zealand Institute Limited Partnership which is equity accounted. WelTec has a 50% interest in W² Shared Services Limited and W² Ventures Limited. WelTec also has a 50% interest two unincorporated joint ventures - Cybus and Computer Power Plus. All jointly owned entities are equity accounted into the Group financial statements. The financial statements of WelTec and the Group are for the year ended 31 December 2016. The financial statements were authorised for issue by the Council on 19 April 2017.
BASIS OF PREPARATION Statement of Compliance The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand, and the requirements of the Crown Entities Act 2004 and the Education Act 1989. WelTec and the Group is a public benefit entity for the purpose of complying with generally accepted accounting practice in New Zealand (NZ GAAP). The financial statements of WelTec and the Group comply with Public Benefit Entity (PBE) standards. The financial statements have been prepared in accordance with Tier 1 PBE standards Measurement base The financial statements have been prepared on a historical cost basis, except for land, buildings and plant, which have been measured at fair value. Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000), except where indicated. The functional currency of WelTec and Group is New Zealand dollars (NZ$). Changes in accounting policies There have been no changes in accounting policies during the financial year.
The Group financial statements are prepared by adding together the like items of assets, liabilities, equity, income, expenses and cash flows on a line by line basis for all entities in the Group. All significant intra-group balances, transactions, income, and expenses are eliminated in full on consolidation. Subsidiaries WelTec consolidates in the Group financial statements all entities where WelTec has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. Investments in subsidiaries are carried at cost in the WelTec parent entity financial statements and tested for impairment on an annual basis. Associates and joint ventures WelTec's associate and joint venture investments are accounted for in the Group financial statements using the equity method. An associate is an entity over which WelTec has significant influence and that is neither a subsidiary nor an interest in a joint venture. A joint venture is an entity over which Weltec has joint control. The investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the Group’s share of the profit or loss of the associate or joint venture after the date of acquisition. The Group’s share of the profit or loss is recognised in the Group profit or loss. Distributions received from an associate or joint venture reduce the carrying amount of the investment in the Group financial statements. If the share of losses of an associate or joint venture equals or exceeds an interest in the associate or joint venture, the Group discontinues recognising its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognised, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, the Group will resume recognising its share of those profits only after its share of the profits equals the share of losses not recognised. Where the Group transacts with an associate or joint venture, profit or losses are eliminated to the extent of the Group’s interest in the relevant associate. Investments in associates and joint ventures are carried at cost in the WelTec parent entity financial statements and tested annually for impairment.
WELTEC AND WHITIREIA
WELTEC
Revenue
Inventories
Revenue is recognised to the extent that it is probable that the economic benefits will flow to WelTec and Group and the revenue can be reliably measured. The following specific criteria must also be met before revenue is recognised:
Inventory is measured at cost upon initial recognition. To the extent that inventory was received through non-exchange transactions (for no cost or nominal cost), the cost of inventory is its fair value at the date of acquisition.
Government grants
Costs incurred in bringing each product to its present condition and location are accounted for as follows:
Government grants are recognised when eligibility to receive the grant has been established. For Student Component Funding, entitlement is established upon the withdrawal period for an individual’s course of study having passed. For project-based grants with conditions entitlement is established upon the completion of agreed milestones consistent with the conditions specified.
Consumables and work in progress - purchase cost on a first in, first out basis. The Groups consumables includes food stuffs and beverages, while work in progress includes framing, joinery and roofing items. Property, Plant and Equipment
Student tuition fees
Land and buildings
Revenue from student tuition fees is recognised in the statement of comprehensive income on entitlement. Where funds have been received but not earned at balance date, an Income in Advance liability is recognised.
Land and buildings are measured at fair value. Fair value is determined on the basis of an annual independent valuation prepared by registered valuers. Land values are based on discounted cash flows or capitalisation of net income (as appropriate). Buildings are valued based on depreciated replacement cost. This methodology is an acceptable estimate of fair value due to the lack of market-based evidence for education delivery purposes.
Rendering of services Revenue from a contract to provide services through an exchange transaction is recognised by reference to the stage of completion of the contract at balance date. Interest revenue Interest revenue is recognised on a time-proportionate basis that takes into account the effective yield on the financial asset. Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments net of lease inducements under an operating lease are recognised as an expense on a straightline basis over the lease term. Foreign Currency Translation Foreign exchange transactions are translated into NZ$ (the functional currency) using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Receivables Trade receivables, student receivables and other receivables are recorded at their amortised cost, less any provision for impairment.
Any revaluation increase arising on the revaluation of land and buildings is credited to the appropriate revaluation reserve, except to the extent that it reverses a revaluation decrease for the same class of asset previously recorded as an expense in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and buildings is charged as an expense in the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve. Plant Plant is measured at fair value. Fair value is determined on the basis of a three yearly independent valuation prepared by registered valuers based on discounted cash flows. Any revaluation increase arising on the revaluation of plant is credited to the appropriate revaluation reserve, except to the extent that it reverses a revaluation decrease for the same class of asset previously recorded as an expense in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of plant is charged as an expense in the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the asset revaluation reserve.
69
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ANNUAL REPORT 2016
WELTEC
Other property, plant and equipment
Intangible Assets
All other 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 WelTec and Group and the cost of the item can be measured reliably.
Intellectual property costs
An item of property, plant and equipment is stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of the acquisition. Assets under construction
Development costs for new intellectual property internally developed or acquired which have a benefit of more than one year have been capitalised. Such costs are expected to be recovered, and are amortised on a straight-line basis over the period of their expected useful lives, being three years. Software All software purchased or created by WelTec and Group which have a benefit of more than one year have been capitalised. Such costs are expected to be recovered, and are amortised on a straight-line basis over the period of their expected useful lives, being three years. Assets under construction
Assets under construction are disclosed separately. Upon completion, the asset’s total cost is transferred to the appropriate asset class, at which point depreciation begins.
Course development and software assets under construction are treated as an intangible asset until completion. Upon completion of a project, the total cost is transferred to the appropriate asset class, at which point amortisation begins.
Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the profit or loss. When revalued assets are sold, the amounts included in revaluation reserves in respect of those assets are transferred to general funds. Depreciation Depreciation has been provided on all property, plant and equipment, excluding land. Depreciation is calculated on a straight-line basis, at rates that expense the assets’ cost (or valuation) to their estimated residual values over their useful life. The useful life of each class of asset is as follows:
Impairment of Property, Plant, and Equipment and Intangible Assets Assets that are not revalued are reviewed for indicators of impairment at each balance date and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. All assets held by WelTec are cash generating units. When there is an indicator of impariment, the asset's recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value, using a discount rate that reflects current market assessments of the time value of money.
Years
%
10 - 50
2% - 10%
Leasehold improvements
2 - 15
7% - 50%
Plant
3 - 30
3% - 33%
3-5
20% - 33%
Furniture and fittings
5
20%
Property Held for Sale
Library collection
5
20%
Hardware
3
33%
Motor Vehicles
5
20%
On 31 December 2016 various properties consisting of land and buildings were classified as held for sale. Prior to reclassification the land and buildings were recognised within WelTec Group property, plant and equipment as part of operational land and buildings. An initial offer was received and negotiations continue with the interested third party. The carrying value of the land and buildings at 31 December 2016 was $5.228M. As the fair value of the land and buildings less cost to sell is higher than carrying value, no impairment loss was recognised upon the reclassification of the land and buildings as held for sale. The sale of the land and buildings is expected to be completed during 2017. WelTec and Group did not have any non-current assets held for sale in 2015.
Buildings
Equipment
Leasehold improvements are depreciated over the shorter period of the useful life of the asset or the unexpired period of the lease. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written-down to the recoverable amount with an impairment loss recognised in the profit or loss.
WELTEC AND WHITIREIA
WELTEC
Payables
Equity
Trade payables and other accounts payable are recognised when WelTec and Group becomes obliged to make future payments resulting from the purchase of goods and services.
Equity, being the difference between total assets and total liabilities reflects the Crown’s interest in WelTec and Group. This public equity is disaggregated and classified into a number of reserves to enable clearer identification of the specific uses/sources of accumulated funds. The components of equity are:
Employee Benefits Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the historical average amount of additional days used by staff to cover those future absences. A liability and an expense is recognised for bonuses, where there is a contractual obligation. Long term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders the related service, such as long service leave and retirement leave have been calculated on an actuarial basis. The calculations are based on:
• Crown equity • Retained earnings • Reserves Reserves WelTec and Group has an asset revaluation reserve which has been generated by the revaluation of plant, land and buildings, as outlined in the Property, Plant and Equipment policy. Goods and Services Tax All items in the financial statements are stated exclusive of goods and services tax (GST), except for trade and other receivables and trade and other payables, which are presented on a GST-inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to Inland Revenue is included as part of receivables or payables in the balance sheet.
• 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 net GST paid to, or received from Inland Revenue, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the statement of cash flows.
• The present value of the estimated future cash flows.
Commitments and contingencies are disclosed exclusive of GST.
Expected future payments are discounted using the official cash rate. The inflation factor is based on the expected longterm increase in remuneration for employees.
Income Tax
Presentation of employee entitlements Sick leave, annual leave, long service leave and retirement leave expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability. Superannuation Schemes Defined contribution schemes such as employer contributions to KiwiSaver, the Government Superannuation Scheme and other such superannuation schemes are accounted for as defned contribution schemes and are recognised as an expense in the profit or loss when incurred.
Tertiary institutions are exempt from payment of income tax, as they are treated by the Inland Revenue Department as charitable organisations. Accordingly, no income tax is provided for. Budget Figures The budget figures are those approved by the Council at the beginning of the financial year. The budget figures have been prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.
71
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ANNUAL REPORT 2016
WELTEC
Provisions
Critical judgements in applying accounting policies
Provisions are recognised when: a present obligation (legal or constructive) arises as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.
Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2016:
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Provisions are reviewed at each balance date, and adjusted to reflect the current best estimate. When it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Cost of Services WelTec and Group has presented an analysis of its cost of services on the face of the statement of comprehensive income and within the notes to the accounts utilising a classification based on the underlying nature of the expenses. Critical accounting estimates and assumptions In preparing these financial statements, WelTec and Group has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. 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: Land, buildings and plant valuation Note 16 provides information about the estimates and assumptions exercised in the measurement of revalued land, buildings and plant. Retirement leave Note 21 provides information about the estimates and assumptions exercised in the measurement of retirement leave.
Crown-owned land and buildings Crown-owned land and buildings are included as part of WelTec and Group’s property, plant and equipment. Although legal title has not been transferred, the Crown has vested all the normal risks and rewards of ownership to WelTec and Group. Restrictions on disposal of these Crown owned land and buildings are in place, as per section 192 of the Education Act 1989. Distinction between revenue and capital contributions Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, WelTec and Group accounts for the funding as an equity injection directly in equity. Information about equity injections recognised in equity is disclosed in note 22.
73
WELTEC AND WHITIREIA
WELTEC
Parent
Group
2
NON EXCHANGE GOVERNMENT FUNDING
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
TEC Student Achievement Component
23,148
23,199
23,148
23,199
150
207
150
207
TEC Youth Guarantee
1,495
1,625
1,495
1,625
TEC Trades Academy
1,294
1,716
1,294
1,716
TEC Equity funding
148
152
148
152
TEC On-plan funding
589
386
589
386
TEC Off-plan funding
554
665
554
665
-
50
-
50
27,378
28,000
27,378
28,000
10,114
10,212
10,114
10,212
10,114
10,212
10,114
10,212
174
241
174
241
9,388
7,761
9,388
7,761
696
598
696
554
10,258
8,600
10,258
8,556
3,338
3,242
3,338
3,242
Generic contract income
179
189
179
189
MSD contract income
104
388
104
388
TEC contract income
-
99
-
99
3,621
3,918
3,621
3,918
Trading income
4,670
4,253
1,304
1,290
Other income
1,337
1,452
1,308
1,413
6,007
5,705
2,612
2,703
TEC Adult and Community Education
MSD E Tu Whanau grant
3
NON EXCHANGE TUITION FUNDING Domestic students
4
EXCHANGE TUITION FUNDING Domestic students International students Other fees
5
OTHER TEACHING Contract students
6
OTHER INCOME
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ANNUAL REPORT 2016
WELTEC
Parent
Group
7
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
1,417
1,402
1,417
1,402
185
65
185
65
28,668
28,593
28,243
28,224
Defined contribution plan employer contributions
709
527
698
523
Associated personnel expenses
482
462
482
462
31,461
31,049
31,026
30,676
7,078
6,909
6,886
6,727
Non personnel research expense
45
45
45
45
Bad debts expense
15
-
-
-
Doubtful debts
90
73
90
73
148
127
137
116
7,377
7,154
7,158
6,961
Information & computer technology
910
1,028
890
1,004
Insurance
762
876
642
661
27
66
27
66
Operating leases
4,370
4,413
2,096
2,139
Occupancy
2,308
2,564
1,925
2,288
8,377
8,946
5,581
6,158
Depreciation
3,482
3,641
3,464
3,626
Amortisation
288
304
279
295
3,770
3,945
3,743
3,921
(51)
(204)
(51)
(204)
-
-
246
(246)
(51)
(204)
195
(450)
PERSONNEL Key Management Compensation: Executive Management Team (note 31) Council fees (note 31) Staff Compensation: Short term employee benefits
8
ADMINISTRATION Administrative expenditure
Remuneration of external auditors
9
INFRASTRUCTURE
Loss on disposal of assets
10 DEPRECIATION & AMORTISATION
11 NON OPERATING ITEMS Redundancy expense WelTec Student Accommodation transfer
75
WELTEC AND WHITIREIA
WELTEC
Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Student receivables
4,709
4,316
4,709
4,316
Trade receivables
1,842
1,174
1,819
1,136
Related party receivables (note 31)
1,120
372
1,120
372
less provision for impairment
(274)
(233)
(274)
(233)
7,398
5,629
7,373
5,591
12 TRADE AND OTHER RECEIVABLES
Fair value Student receivables are inclusive of exchange and non-exchange transactions. All student fees are due before a course commences or upon enrolment if the course has already begun. Student fee receivables are non-interest bearing and are generally paid in full by course commencement date. Therefore, their carrying value approximates their fair value. Other recivables are non-interest bearing and are generally settled on 30-day terms. Therefore the carrying value of other receivables approximates their fair value. The ageing profile of student receivables as at year end is detailed below.
Not past due
4,315
4,025
4,315
4,025
Past due 1 – 30 days
18
3
18
3
Past due 31 – 60 days
83
65
83
65
Past due 61 – 90 days
17
8
17
8
Past due over 90 days
275
215
275
215
4,709
4,316
4,709
4,316
All receivables greater than 30 days in age are considered to be past due. There are provisions for impairment on receivables with overdue amounts. Due to the large number of student fee receivables, the impairment assessment is performed on a collective basis, based on an analysis of past collection history and debt write-offs. Movements in the provision for impairment of receivables are as follows: At 1 January
(233)
(688)
(233)
(688)
-
444
-
444
50
84
50
84
(90)
(73)
(90)
(73)
(274)
(233)
(274)
(233)
Work in progress - at cost
281
266
281
266
Finished goods - at cost
27
23
27
23
308
289
308
289
Provisions reversed during the year Bad debts written off against provision during the year Provision released/(additional provision made) during the year At 31 December
13 INVENTORY
76
ANNUAL REPORT 2016
WELTEC
Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Share in WelTec Enterprises Limited
-
-
-
-
Share in W2 Ventures Limited
-
-
-
-
Share in WelTec Connect Limited
-
-
-
-
Share in WelTec Student Accomodation Limited
-
-
-
-
-
-
-
-
14 INVESTMENT IN SUBSIDIARY
WelTec established WelTec Enterprises Limited in 2014 to become the new holding company for 100% WelTec owned subsidiaries and associated trading entities. At the same time W² Ventures Limited was established to be the holding company for any subsidiary or associated entity owned on a 50%/50% basis with Whitireia Community Polytechnic. As at 31 December no trading had been undertaken by either of these entities. WelTec Connect Limited a 100% owned subsidiary ceased trading in 2013 with the investment and all outstanding balances fully impaired within the 2013 financial year. WelTec Student Accomodation Limited is a 100% owned subsidiary that provides student accomodation services located at 222 Willis Street, Wellington. 2016 Actual $000
2015 Actual $000
-
-
15 INVESTMENT IN ASSOCIATE AND JOINTLY CONTROLLED ENTITIES Investment in Associate (Parent and Group) MotorTrain Limited
MotorTrain Limited is a shell company in which WelTec holds a 25% interest. No transactions were incurred during the year.
Investment in jointly controlled entities W2 Shared Service Limited W² Shared Services Limited is jointly owned on a 50%:50% basis with Whitireia Community Polytechnic and began trading in January 2015 to replace the unincorpated joint venture structure utilised in 2014. W2 Shared Services Limited has nil net assets, nil profit and no equity invested. WelTec and Whitireia are debtors to W2 Shared Services Limited. Refer Related Parties note. Le Cordon Bleu New Zealand Institute Limited Partnership WelTec Connect Limited holds the Groups investment in Le Cordon Bleu New Zealand Institute (LCBNZI), being a 43.15% investment in the Le Cordon Bleu New Zealand Institute Limited Partnership and a 33.3% shareholding in LCB Management NZ Limited, the General Partner of the Limited Partnership. WelTec and LCBNZI jointly developed premises in the New Zealand Centre for Hospitality and Culinary Arts on lower Cuba Street in Wellington City. WelTec’s School of Hospitality and the LCBNZI Cuisine School co-locate in this facility. Academic delivery commenced in September 2012. WelTec fully impaired its investment in LCBNZI in 2013 based on forecasted financial results for the medium term.
WELTEC AND WHITIREIA
WELTEC
Parent and Group Investment in Le Cordon Bleu New Zealand Institute Limited Partnership
2016 Actual $000
2015 Actual $000
-
-
Assets Current assets
1,331
551
Non current assets
1,660
1,896
2,990
2,447
(2,372)
(1,964)
Total assets Liabilities Current liabilities Non current liabilities Total liabilities Income Expenses Profit/(Loss) Share of joint venture's contingent liabilities Share of joint venture's commitments
(59)
(68)
(2,431)
(2,032)
2,725
1,969
(2,580)
(1,900)
145
69
-
-
1,742
2,014
Cybus WelTec and Universal College of Learning (UCOL) have a 50% interest in a joint venture, Cybus, which undertakes academic and support services on contract to the Le Cordon Bleu New Zealand Institute Limited Partnership. The following amounts represent the Group's share of the assets, liabilities, income and expenses of the joint venture:
Group Investment in Cybus
2016 Actual $000
2015 Actual $000
-
-
595
398
Assets Current assets Non current assets Total assets
-
-
595
398
(595)
(398)
Liabilities Current liabilities Non current liabilities
-
-
Total liabilities
(595)
(398)
Income
1,995
1,649
Expenses
(1,995)
(1,649)
Profit/(Loss)
-
-
Share of joint venture’s contingent liabilities
-
-
Share of joint venture’s commitments
-
-
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ANNUAL REPORT 2016
WELTEC
Computer Power Plus WelTec and Whitireia Community Polytechnic have a 50% interest in a joint venture, Computer Power Plus, which undertakes academic and support services on contract to Whitireia New Zealand Limited. The following amounts represent the group's share of the assets, liabilities, income and expenses of the joint venture: 2016 Actual $000
2015 Actual $000
140
140
903
723
Current assets
765
746
Non current assets
386
187
1,151
933
Parent Investment in Computer Power Plus Group Investment in Computer Power Plus Assets
Total assets Liabilities Current liabilities
(248)
(211)
Total liabilities
(248)
(211)
Income
2,500
2,471
(2,320)
(2,326)
180
145
-
-
577
1,029
Expenses Profit/(Loss) Share of joint venture’s contingent liabilities Share of joint venture’s commitments
Plant
Equipment
Hardware
Furniture and Fittings
Motor Vehicles
Library Collection
Assets Held for Sale
Assets under Construction
Total
GROUP 2016 $000
Leasehold Improvement
16 PROPERTY, PLANT AND EQUIPMENT
67,720
9,910
2,219
1,500
9,300
2,566
-
2,268
-
894
96,378
227
-
152
90
202
42
300
113
-
23
1,150
Land and Buildings
78
Gross Carrying Amount Balance as at 1 January Additions Disposals
-
-
(55)
(79)
(413)
-
-
-
-
-
(547)
(5,277)
-
4
244
647
-
-
-
5,277
(894)
0
Net revaluation increments/ decrements
945
-
(635)
-
-
-
-
-
-
-
309
Balance as at 31 December
63,615
9,910
1,684
1,755
9,736
2,608
300
2,381
5,277
23
97,291
Reclassifications
79
WELTEC AND WHITIREIA
WELTEC
Accumulated Depreciation 1,960
-
-
19,357
Depreciation Expense
1,689
491
297
142
613
101
17
132
-
-
3,480
-
-
(18)
(77)
(413)
-
-
-
-
-
(508)
(49)
-
-
-
-
-
-
-
49
-
-
Net revaluation increments/ decrements
(1,640)
-
(1,178)
-
-
-
-
-
-
-
(2,819)
Balance as at 31 December
(0)
4,882
2
1,370
8,692
2,406
17
2,092
49
-
19,510
63,615
5,028
1,682
385
1,044
203
283
289
5,228
23
77,759
Disposals Reclassifications
Plant
67,720
9,910
2,219
Additions
227
-
152
Disposals
-
-
(55)
Parent 2016 $000
Land and Buildings
Leasehold Improvement
Net Book Value
Total
-
Assets under Construction
2,305
Assets Held for Sale
8,492
Library Collection
1,306
Motor Vehicles
902
Furniture and Fittings
4,391
Hardware
-
Equipment
Balance as at 1 January
1,497
9,291
2,526
-
2,268
-
894
96,325
87
202
42
300
113
-
23
1,146
(79)
(413)
-
-
-
-
-
(547)
Gross Carrying Amount Balance as at 1 January
Reclassifications
(5,277)
-
4
244
647
-
-
-
5,277
(894)
0
Net revaluation increments/ decrements
945
-
(635)
-
-
-
-
-
-
-
309
Balance as at 31 December
63,615
9,910
1,684
1,749
9,727
2,568
300
2,381
5,277
23
97,234
Accumulated Depreciation Balance as at 1 January
-
4,391
902
1,304
8,487
2,287
-
1,959
-
-
19,330
Depreciation Expense
1,689
491
297
140
609
87
17
132
-
-
3,462
Disposals
-
-
(18)
(77)
(413)
-
-
-
-
-
(508)
(49)
-
-
-
-
-
-
-
49
-
-
Net revaluation increments/ decrements
(1,640)
-
(1,178)
-
-
-
-
-
-
-
(2,819)
Balance as at 31 December
(0)
4,882
2
1,366
8,684
2,374
17
2,091
49
-
19,465
63,615
5,028
1,682
383
1,043
194
283
290
5,228
23
77,746
Reclassifications
Net Book Value
ANNUAL REPORT 2016
Plant
Equipment
Hardware
Furniture and Fittings
Motor Vehicles
Library Collection
Assets Held for Sale
Assets under Construction
Total
58,324
10,346
2,298
1,486
9,346
2,433
-
2,178
-
5,343
91,754
3,223
-
52
16
301
136
-
97
-
894
4,719
Land and Buildings
GROUP 2015 $000
Leasehold Improvement
WELTEC
Gross Carrying Amount Balance as at 1 January Additions Disposals
-
(436)
(138)
(2)
(697)
(3)
-
-
-
-
(1,276)
Reclassifications
4,993
-
7
-
350
-
-
(7)
-
(5,343)
-
Net revaluation increments/ decrements
1,180
-
-
-
-
-
-
-
-
-
1,180
Balance as at 31 December
67,720
9,910
2,219
1,500
9,300
2,566
-
2,268
-
894
96,377
Accumulated Depreciation Balance as at 1 January
-
4,336
536
1,119
8,561
2,202
-
1,808
-
-
18,562
Depreciation Expense
1,653
491
420
189
630
106
-
152
-
-
3,641
-
(436)
(54)
(2)
(699)
(3)
-
-
-
-
(1,194)
Disposals
-
-
-
-
(1,653)
Balance as at 31 December
-
4,391
902
1,306
8,492
2,305
-
1,960
-
-
19,356
67,720
5,519
1,317
194
808
261
-
308
-
894
77,021
Net Book Value
Parent 2015 $000
10,346
2,298
Total
-
-
Assets under Construction
-
-
Assets Held for Sale
-
-
Library Collection
-
-
Motor Vehicles
-
-
Furniture and Fittings
-
-
Hardware
-
-
Equipment
-
(1,653)
Plant
-
Net revaluation increments/ decrements
Leasehold Improvement
Reclassifications
Land and Buildings
80
1,483
9,337
2,401
-
2,178
-
5,343
91,710
Gross Carrying Amount Balance as at 1 January
58,324
Additions
3,223
-
52
16
301
128
-
97
-
894
4,711
Disposals
-
(436)
(138)
(2)
(697)
(3)
-
-
-
-
(1,276)
Reclassifications
4,993
-
7
-
350
-
-
(7)
-
(5,343)
-
Net revaluation increments/ decrements
1,180
-
-
-
-
-
-
-
-
-
1,180
81
WELTEC AND WHITIREIA
WELTEC
Balance as at 31 December
67,720
9,910
2,219
1,497
9,291
2,526
-
2,268
-
894
96,325
Accumulated Depreciation Balance as at 1 January
-
4,336
536
1,118
8,559
2,195
-
1,808
-
-
18,552
Depreciation Expense
1,653
491
420
188
627
95
-
152
-
-
3,626
Disposals
-
(436)
(54)
(2)
(699)
(3)
-
-
-
-
(1,194)
Reclassifications
-
-
-
-
-
-
-
-
-
-
-
Net revaluation increments/ decrements
(1,653)
-
-
-
-
-
-
-
-
-
(1,653)
Balance as at 31 December
-
4,391
902
1,304
8,487
2,287
-
1,960
-
-
19,331
67,720
5,519
1,317
193
804
239
-
308
-
894
76,994
Net Book Value
Land and buildings carried at fair value An independent valuation of the land and buildings was performed by Darroch Limited, registered independent valuers as at 31 December 2016. Land fair value is determined by reference to market-based evidence being the amount for which the assets could be exchanged between a knowledgeable willing buyer and seller in an arm’s length transaction. Reference has been made to the best use of the land on an "unencumbered" basis, adjusted for designations against the land or the use of the land is restricted because of reserve or endowment status. Specialist buildings are valued at fair value using depreciation replacement cost methodology. This methodology is an acceptable estimate of fair value due to the lack of market-based evidence for education delivery purposes. Restrictions on title Under the Education Act 1989, WelTec and Group is required to obtain the consent from the Ministry of Education to dispose or sell 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 the land. WelTec and Group does not consider it practical to disclose in detail the value of land subject to these restrictions. Plant carried at fair value An independent valuation of plant was performed by Forbes Valuation, a registered independent valuer as at 31 December 2016. This valuation was undertaken for all plant used in the delivery and support of education outcomes provided by WelTec using market based information.
17 INTANGIBLE ASSETS
Intellectual Property
Assets under Construction
Total
Software
Intellectual Property
Assets under Construction
Total
2015
Software
Group $000
2016
2,903
2,010
-
4,913
2,691
2,010
104
4,805
62
-
507
569
83
-
25
108
-
-
-
-
129
-
(129)
-
2,965
2,010
507
5,482
2,903
2,010
-
4,913
2,626
1,923
-
4,549
2,437
1,808
-
4,245
201
96
-
288
189
115
-
304
2,827
2,019
-
4,837
2,626
1,923
-
4,549
138
(9)
-
644
277
87
-
364
Gross Carrying Amount Balance as at 1 January Additions Reclassifications Balance as at 31 December Accumulated Amortisation Balance as at 1 January Amortisation Expense Balance as at 31 December
Net Book Value
ANNUAL REPORT 2016
WELTEC
Assets under Construction
Total
Software
Intellectual Property
Assets under Construction
Total
Parent $000
2015
Intellectual Property
2016
Software
82
2,875
2,010
-
4,885
2,663
2,010
104
4,777
62
-
507
569
83
-
25
108
-
-
-
-
129
-
(129)
-
2,937
2,010
507
5,454
2,875
2,010
-
4,885
2,608
1,923
-
4,531
2,428
1,808
-
4,236
193
87
-
280
180
115
-
295
2,801
2,010
-
4,811
2,608
1,923
-
4,531
136
-
507
643
267
87
-
354
Gross Carrying Amount Balance as at 1 January Additions Reclassifications Balance as at 31 December Accumulated Amortisation Balance as at 1 January Amortisation Expense Balance as at 31 December
Net Book Value
There are no restrictions over the title of WelTec or Group’s intangible assets, nor are any intangible assets pledged as security for liabilities.
Parent
Group
18 TRADE AND OTHER PAYABLES Trade payables Related party payable (note 31) Goods and services tax (GST) payable
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
3,494
4,399
3,850
4,117
750
262
112
453
1,076
931
1,074
922
5,320
5,592
5,036
5,492
Trade payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of payables approximates their fair value.
19 CURRENT EMPLOYEE BENEFIT PROVISIONS Accrued employee payments
(117)
977
(124)
970
Annual and discretionary leave
1,784
1,416
1,769
1,399
51
43
51
43
227
252
227
252
1,944
2,688
1,923
2,664
Current long service leave Sick leave
A provision is recognised for post employment benefits payable to employees. Employees are entitled to annual leave pay, long service leave and retirement leave pay. Annual leave and sick leave entitlements expected to be settled within 12 months of the balance date are measured at the current rates of pay and classified as current liabilities.
83
WELTEC AND WHITIREIA
WELTEC
Parent
Group
20 INCOME IN ADVANCE Student income in advance
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
8,234
7,512
8,238
7,512
731
782
289
300
8,965
8,294
8,527
7,812
88
98
88
98
101
73
101
73
189
171
189
171
Other income in advance
21 NON CURRENT EMPLOYEE BENEFIT PROVISIONS Long Service leave Retirement leave
Entitlements related to long service leave and retirement leave have been calculated at the present value of future cash flows determined on an actuarial basis and classified as non-current liabilities. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability. Expected future payments are discounted using forward discount rates as provided by the Treasury. The salary inflation factor has been determined after considering historical salary inflation patterns and referencing the Treasury time series of Fiscal and Economic Indicators. If the salary inflation factor were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be $3,000 higher/lower and the long service leave would be $5,000 higher/lower. If the discount rate used were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be $3,000 higher/lower while the long service leave would be $5,000 higher/lower.
22 CROWN EQUITY Opening balance
39,332
39,332
39,332
39,332
Closing balance
39,332
39,332
39,332
39,332
Crown Equity represents the total investment the Crown has in WelTec. It is comprised of two components, Notional Equity - the carrying value of Crown-owned land and buildings at the date the Crown vested all the normal risks and rewards of ownership to WelTec, and Received Equity - actual cash payments received. Capital Management WelTec and Group’s capital is its equity, which comprises its Crown equity noted above, retained earnings (note 23) and reserves (note 24). Equity is represented by net assets. WelTec is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings, and borrowing. WelTec manages its revenues, expenses, assets, liabilities and general financial dealings prudently and in a manner that promotes the current and future interests of the community. WelTec’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings. The objective of managing WelTec’s equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.
23 RETAINED EARNINGS Opening balance
9,105
7,950
9,110
7,922
Profit
2,199
1,155
2,343
1,188
11,304
9,105
11,453
9,110
Balance at end of financial year
84
ANNUAL REPORT 2016
WELTEC
Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
29,475
26,656
29,475
26,656
531
(18)
531
(18)
Revaluation (decrements)/increments
2,586
2,837
2,586
2,837
Balance at end of financial year
32,592
29,475
32,592
29,475
24 RESERVES Opening balance Release of reserve on disposal of assets
These reserves have been generated by the revaluation of land and buildings undertaken by Darroch Limited on an annual basis, and the revaluation of plant on a 3 yearly basis undertaken most recently by Ewan Forbes, registered Plant and Machinery Valuer in 2013 (see note 16).
25 NOTES TO THE CASH FLOW STATEMENT (a) Reconciliation of cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and term investments in money market instruments, net of outstanding bank overdrafts. The carrying value of cash at bank, call deposits and term deposits < 90 days approximates their fair value. Cash and cash equivalents at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows: Cash and cash equivalents: Operating Funds
9,272
7,254
8,587
6,720
4,258
3,972
4,258
3,972
13,530
11,226
12,845
10,692
Designated Funds: - Campus Development
(b) Reconciliation of profit for the period to net cash flows from operating activities Profit for the period
2,199
1,155
2,343
1,188
3,768
3,945
3,741
3,921
Loss on sale on disposal of non current assets
27
66
27
66
Doubtful debts expense
90
73
90
73
(55)
(55)
(55)
(55)
(180)
(145)
-
-
Dividend declared by related party
-
-
-
-
Gain on revaluation of non current assets
-
-
-
-
Decrease/(increase) in receivables
(2,063)
712
(2,321)
628
Decrease/(increase) in inventories
(19)
6
(19)
6
(Decrease)/increase in payables
227
(1,099)
(7)
(1,035)
(723)
1
(722)
(4)
729
2,455
770
2,451
3,999
7,114
3,847
7,239
Add/(less) non-cash items: Depreciation and amortisation of non current assets
Rent holiday Share of associate profit
Add/(less) movements in working capital items:
Increase/(decrease) in employee entitlements (Decrease)/increase in income in advance Net cash from operating activities
WELTEC AND WHITIREIA
WELTEC
26 EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET Statement of comprehensive income WelTec Parent The 2016 WelTec parent operating profit of $2.148m represents a 3.95% return on total income. This is a pleasing result given the domestic student demand challenges faced during the year. WelTec finished 2016 having achieved 98.7% of SAC Level 3 and above of Investment Plan funding targets. It is noted that the percentage achieved is calculated on a lower base than originally planned - the TEC confirmed an In Plan amendment to funding following the trimester 2 commencement, as WelTec was not able to recover from the low demand experienced in trimester 1 in a range of courses. This resulted in a reduction of funding totalling $813k.. On a more positive note WelTec experienced increased income from international students, and favourable ITO contract work compared to budget and the on-going relationship with the Ministry of Social Development generated favourable variances to budget in 2016. Cost of Services were managed throughout the year to help offset reduced revenue levels. Savings were achieved in teaching delivery consistent with lower student numbers. Administration costs savings were achieved through reduced travel and accommodation, printing and marketing expenses. Subsidiaries and jointly controlled entities 2016 was the third year of operation for WelTec Student Accommodation Limited, trading as 222 Willis, which reported a loss due to accountancy treatment of recording lease costs over the life of the lease as straight line, rather than cash paid. Occupancy rates were favourable to budget as were operating expenses. 222 Willis would have been profitable if the lease was cash accounted. The provision of a capital injection from WelTec in 2015 to offset accumulated losses was reversed in 2016 as 222 Willis did not require cash injection at this stage. The reversal of the provision is within Non-Operating items of the WelTec Parent. W2 Shared Services Limited commenced trading as a limited liability company in 2015, having operated as an unincorporated joint venture in 2014. WelTec and Whitireia each hold a 50% shareholding in the company. W2 performed better than budget in costs, and achieved a planned breakeven result in 2016 for the two customers, WelTec and Whitireia. Computer Power Plus had another successful academic year and provided a profitable result. WelTec has reflected 50% of this profit via an equity accounting entry within the accounts below the consolidated profit for the Group, as no dividend/distribution was declared for 2016. Group Balance Sheet and Cash flows Cash and cash equivalents finished 2016 $4.9m higher than budget. This reflects property development being reduced against budget as projects were delayed. Receivables are higher than budget reflecting TEC receivable due for 2017 students enrolled during 2016. Property, plant and equipment did not reach budgeted levels in 2016, however the annual revaluation increased the carrying value of the assets. The property developments during 2016 were limited to drainage work on the Regional School of Construction facility on Hutt Road, Petone and improvements of existing space at the other campuses. The existing leased vehicle fleet was replaced by capital expenditure on owned vehicles.
85
86
ANNUAL REPORT 2016
WELTEC
Group and Parent 2016 Actual $000
2015 Actual $000
Buildings
553
95
Equipment
135
76
Hardware
55
49
27 COMMITMENTS (a) Capital expenditure commitments
Furniture and fittings
-
-
743
220
(b) Lease commitments Non cancellable operating lease commitments are disclosed in note 28 to the financial statements.
28 LEASES (a) Leasing arrangements WelTec and Group enter into operating leases for buildings and vehicles: - Building premises are leased for WelTec satellite delivery offices in Auckland and Christchurch, and for WelTec delivery in Wellington city. The length of terms of these leases vary from under 12 months to 22 years, with rights to renewal on a number of contracts. - WelTec Student Accommodation Limited has entered into an operating lease for the building located at 222 Willis Street, Wellington. The initial lease term is for 15 years with further rights to renewal included within the contract. -WelTec and Whitireia have entered into a joint lease for premises at 82-92 Cuba Street and 65 Dixon Street, Wellington. The two institutions are jointly and severally liable for the lease cost which are expected to be paid 34% by WelTec and 66% by Whitireia. Accordingly 34% of the lease commitment has been included in the operating commitments. - Vehicles are leased over 3 - 5 year terms depending on the type of vehicle concerned. Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Not longer than 1 year
4,040
3,867
1,985
1,894
Between 1 and 5 years
15,466
11,996
6,666
5,741
Longer than 5 years
39,620
46,034
21,722
23,860
59,126
61,897
30,373
31,495
(b) Non-cancellable operating lease payments
29 CONTINGENT LIABILITIES WelTec has no contingent liabilities as at 31 December 2016. (2015, nil.)
WELTEC AND WHITIREIA
WELTEC
30 FINANCIAL INSTRUMENTS (a) Financial instrument categories Accounting policies for financial instruments have been applied to each class of financial asset and financial liability outlined below. The book value of each equals their fair value: Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Cash and cash equivalents
13,530
11,226
12,845
10,692
Trade and other receivables
7,398
5,629
7,373
5,591
20,928
16,855
20,219
16,283
5,320
5,593
5,036
5,492
5,320
5,593
5,036
5,492
Loans & receivables
Total loans & receivables Financial liabilities at amortised cost Trade & other payables Total financial liabilities at amortised cost (b) Financial instrument risks Risk Management
Strategic risk management is undertaken by Council through the monitoring of regular risk reports provided by management. These reports highlight potential areas of risk, and the steps that are being followed to ensure the risks are appropriately managed. The Finance department provides treasury management services for WelTec, co-ordinating the access to domestic and international financial markets and management of the financial risks relating to the operations of the business. WelTec does not enter into, or trade financial instruments for speculative purposes. Details of significant accounting policies and methods adopted, including the criteria for recognition, and the basis of measurement applied in respect of each class of financial asset, financial liability and equity instrument are disclosed in the Accounting Policies section of these financial statements. Currency risk WelTec has no material exposure to movements in foreign exchange rates. Income sourced from overseas is received in New Zealand dollar equivalents, while trading supplies sourced from international providers are not a material portion of WelTec's annual expenditure. Council Policy on foreign exchange states that should an international purchase of $20,000 or more be required, investigation is made into forward cover. At balance date no forward contracts or any other form of hedging exist. Credit risk Credit risk exposure for WelTec exists principally within cash and cash equivalents, and trade and other receivables balances. Credit risk in respect of cash holdings is managed by spreading short term investment deposits with the major trading banks within New Zealand, while ensuring WelTec receives the best return on the funds invested, as specified by Council Policy. Receivable balances are unsecured. They are stated at their estimated realisable value after providing for amounts not considered recoverable The maximum credit exposure for each class of financial instrument is as follows: Cash and cash equivalents
13,530
11,226
12,845
10,692
Trade and other receivables
7,398
5,629
7,373
5,591
20,928
16,855
20,219
16,283
Total credit risk
87
88
ANNUAL REPORT 2016
WELTEC
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: Parent
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Cash and cash equivalents AA- rating
13,530
11,226
12,845
10,692
Total cash and cash equivalents
13,530
11,226
12,845
10,692
Trade and other receivables with no defaults in the past
7,398
5,629
7,373
5,591
Total trade and other receivables
7,398
5,629
7,373
5,591
Counterparties with credit ratings
Counterparties without credit ratings
Liquidity risk WelTec manages liquidity risk by maintaining adequate reserves to ensure the provision of educational services for the foreseeable future. This is completed by continuously monitoring and forecasting cash flows for the medium term. The maximisation of operational inflows and efficient management of operational and investing outflows ensures sufficient cash reserves are maintained. Contractual maturity analysis of financial liabilities The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Carrying amount $000
Contractual Cash flow $000
Less than 6 months $000
6-12 months $000
1-2 years $000
5,320
5,320
5,320
-
-
5,320
5,320
5,320
-
-
5,036
5,036
5,036
-
-
5,036
5,036
5,036
-
-
5,592
5,592
5,592
-
-
5,592
5,592
5,592
-
-
5,492
5,492
5,492
-
-
5,492
5,492
5,492
-
-
Group 2016 Trade and other payables Total Parent 2016 Trade and other payables Total
Group 2015 Trade and other payables Total Parent 2015 Trade and other payables Total
89
WELTEC AND WHITIREIA
WELTEC
Interest rate risk WelTec has exposure to interest rate risk to the extent that it has outstanding investments at fixed rates. The interest rates risk on investments is managed through the use of short term investments, in accordance with Council Policy. No significant exposure to interest rate risk exists on the remaining financial assets and liabilities. Sensitivity analysis The table below illustrates the potential profit or loss and equity impact for reasonably possible market movements, with all other variables held constant, based on financial instrument exposures at the balance date. 2015
2016 Profit -50bps $000
Profit +50bps $000
Profit -50bps $000
Profit +50bps $000
(7)
7
(8)
8
-
-
-
-
(7)
7
(8)
8
Group and Institute Interest rate risk Financial Assets Cash and cash equivalents Other financial assets Total sensitivity Explanation of interest rate risk sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured on a basis points (bps) movement. For example, a decrease in 25 bps is equivalent to a decrease in interest rates of 0.25%. The sensitivity for interest rate swaps has been calculated using a derivative valuation model based on a parallel shift in interest rates of -50bps/+50bps.
31 RELATED PARTY DISCLOSURES Transactions with key management personnel Financial details of key management personnel remuneration are disclosed in note 7 to the financial statements. Key management personnel includes the Council and executive management. Whitireia and WelTec established a joint leadership team (consisting of the CEO and eight directors) from 9 February 2016. The cost of Council members and JLT are shared between Whitiriea and WelTec. Parent Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
1,417
1,402
1,417
1,402
Roger Sowry (Chair)
40
32
40
32
Vaughan Renner (Deputy Chairperson)
25
20
25
20
Deborah Hume
20
16
20
16
Nancy McIntosh - Ward
20
16
20
16
Antony Royal
20
16
20
16
Kabini Sanga
20
16
20
16
Fran Wilde
20
16
20
16
Jackie Lloyd
20
9
20
9
185
141
185
141
Executive Management Team members - 4.5FTE - until 8 February 2016 (2015 - 6.6 FTE) and Joint Leadership Team (9 FTE x 50%) - from 9 February 2016 (2015 - 6.7 FTE) Council members (paid jointly by WelTec and Whitireia)
90
ANNUAL REPORT 2016
WELTEC
Related party transactions with subsidiary, associate, and jointly controlled entity During the reporting period WelTec entered into transactions with LCBNZI Limited Partnership, a partnership in which WelTec holds an equity interest through WelTec Connect Limited (refer note 15). These transactions occurred within a normal supplier relationship on terms and conditions no more or less favourable than those which it is reasonable to expect WelTec would have adopted if dealing with the partnership as per any independent third party. Parent 2016 Actual $000
2015 Actual $000
52
-
-
191
Subsidiary WelTec Student Accomodation Limited Debtor for services provided by WelTec Payable for services provided by WelTec Student Accommodation Limited
Group and Parent 2016 Actual $000
2015 Actual $000
-
-
Services provided by WelTec
236
(351)
Debtor for services provided by WelTec
170
54
Payable for services provided by LCBNZI
638
-
-
-
Services provided by WelTec
271
139
Debtor for services provided by WelTec
312
65
Services provided by WelTec
228
242
Debtor for services provided by WelTec
582
209
-
38
Associate MotorTrain Limited No related party transactions were entered into during the year
LCBNZI Limited Partnership
LCB Management Limited No related party transactions were entered into during the year
Jointly Controlled Entity Computer Power Joint Venture
Cybus Joint Venture
W² Shared Services Limited Services provided by WelTec Services received from W²
2,179
1,811
Debtor for services provided by WelTec
254
44
Payable for services provided by W²
112
262
32 CHANGES IN ACCOUNTING ESTIMATES There have been no changes in accounting estimates during the period.
33 EVENTS AFTER BALANCE DATE There are no events after balance date to report.
WELTEC AND WHITIREIA
WELTEC
STATEMENT OF COMPLIANCE AND RESPONSIBILITY For the year ended 31 December 2016
STATEMENT OF COMPLIANCE The Council and management of Wellington Institute of Technology confirm that all the statutory requirements in relation to this annual report, as outlined in the Education Act 1989, have been met.
STATEMENT OF RESPONSIBILITY The Council and management accept responsibility for the preparation of the annual financial statements and judgements used in them, and hereby adopt the financial statements as presented. They also accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting and service performance reporting. In the Council and managementâ&#x20AC;&#x2122;s opinion, the annual financial statements for the year ended 31 December 2016 fairly reflect the financial position, financial performance and service performance achievements of the Wellington Institute of Technology and group. Signed by.
Acting Chair of Council
Chief Executive
19 April 2017
19 April 2017
91
92
ANNUAL REPORT 2016
WELTEC AND WHITIREIA
Financial statements Whitireia Statement of Financial Performances
94
Statement of Comprehensive Income
95
Statement of Changes in Equity
96
Statement of Financial Position
97
Statement of Cash Flows
98
Reconciliation from the net surplus / (deficit) to the net cash flows from operations
99
Notes to the Financial Statements
100
Statement of Compliance and Responsibility
130
93
94
ANNUAL REPORT 2016
WHITIREIA
STATEMENT OF FINANCIAL PERFORMANCE For the year ended 31 December 2016 Polytechnic
Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
2
27,934
29,139
29,242
24,414
25,405
12,126
13,633
12,028
9,538
9,273
130
0
103
0
0
17,571
20,127
20,053
16,661
19,262
5,116
7,771
4,821
7,178
7,115
480
785
562
428
481
63,357
71,455
66,809
58,219
61,536
Revenue Revenue from non-exchange transactions Government funding Domestic Tuition Fees Donations and Koha Revenue from exchange transactions International Tuition Fees Revenue from other operating activities
2
Interest Revenue Total revenue Operating expense Personnel Costs
3
33,182
31,972
31,252
33,169
31,238
Depreciation expenses
11
4,052
4,098
3,887
4,059
3,892
Amortisation expenses
12
483
512
465
483
465
Course Related Expenses
2,534
2,906
2,953
2,534
2,952
Occupancy Costs
5,165
5,606
5,262
5,165
5,262
Project Expenditure
8,063
11,739
8,717
3,051
3,681
10,206
11,528
10,622
10,130
10,545
510
435
311
510
311
64,195
68,796
63,469
59,101
58,346
(837)
2,659
3,340
(882)
3,190
Other expenses
4
Trading Activities Total operating expenses Surplus / (deficit) before non-operating items Non-operating items Share of net profit/(loss) of jointly controlled entities Non operating income/(expense) items
10
180
0
145
0
0
5
(1026)
(130)
(75)
(1,026)
(75)
(846)
(130)
70
(1,026)
(75)
(1,683)
2,529
3,410
(1,908)
3,115
0
23
(30)
0
0
(1,683)
2,507
3,440
(1,908)
3,115
Total non-operating items Surplus / (deficit) before taxation Income Tax / (Refund) Surplus / (deficit) after taxation
The accompanying notes form part of these financial statements
20
WELTEC AND WHITIREIA
WHITIREIA
Statement of Comprehensive Income For the year ended 31 December 2016 Polytechnic
Group Note
Surplus / (deficit) before non-operating items
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
(1,683)
2,507
3,440
(1,908)
3,115
0
0
1,520
0
1,520
0
0
1,520
0
1,520
(1,683)
2,507
4,960
(1,908)
4,635
Other comprehensive revenue and expense Revaluation gain on property, plant and equipment Other comprehensive revenue and expense for the year, net of tax
Total Comprehensive income
The accompanying notes form part of these financial statements
19
95
96
ANNUAL REPORT 2016
WHITIREIA
Statement of Changes in Equity For the year ended 31 December 2016
Polytechnic Polytechnic
Group Group Note
Balance at 1 January
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
68,100
69,229
63,140
66,970
62,335
(1,683)
2,507
3,440
(1,908)
3,115
Comprehensive income Surplus / (Deficit) Other comprehensive income
0
0
1,520
0
1,520
Total Comprehensive income
(1,683)
2,507
4,960
(1,908)
4,635
Balance at 31 December
66,417
71,736
68,100
65,062
66,970
The accompanying notes form part of these financial statements
97
WELTEC AND WHITIREIA
WHITIREIA
STATEMENT OF FINANCIAL POSITION as at 31 December 2016
Polytechnic
Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Cash and cash equivalents
6
4,891
12,890
2,334
4,226
1,923
Debtors and other receivables
7
8,089
7,769
9,525
6,309
7,143
Inventory
8
208
282
282
208
282
503
680
713
503
713
0
0
58
0
0
9
2,389
2,372
8,372
2,000
8,000
13
636
0
636
636
636
16,717
23,993
21,920
13,882
18,697
0
0
0
1,346
1,346
Current Assets
Prepayments Taxation Current portion of financial assets in nature of investments Assets held for sale Total current assets Non-current assets Financial Assets in the nature of investments
9
Investment in joint controlled entity
10
903
577
723
140
140
Property, plant and equipment
11
70,422
71,068
70,428
68,706
68,817
Intangible assets
12
1,219
1,616
1,551
458
790
Total non-current assets
72,544
73,261
71,076
72,372
71,093
Total Assets
89,261
97,254
92,996
86,254
89,790
Current liabilities Creditors and other payables
14
7,441
5,984
5,451
6,654
4,663
Special Accounts
15
82
228
228
78
199
Revenue received in advance
16
10,841
13,724
13,125
9,979
11,865
Employee Entitlements (CL)
17
1,996
3,088
3,172
1,996
3,173
Current Provisions
18
407
426
426
407
426
20,766
23,450
22,402
19,114
20,326
Total current liabilities Non-current liabilities Employee Entitlements (NCL)
17
162
171
171
162
171
Provisions
18
1,916
1,897
2,323
1,916
2,323
Total non-current liabilities
2,078
2,068
2,494
2,078
2,494
Total Liabilities
22,844
25,518
24,896
21,192
22,820
Net Assets
66,417
71,736
68,100
65,062
66,970
Equity General reserves
19
47,806
53,125
49,489
46,463
48,371
Property Revaluation Reserve
19
18,599
18,599
18,599
18,599
18,599
Restricted Reserves
19
12
12
12
0
0
66,417
71,736
68,100
65,062
66,970
The accompanying notes form part of these financial statements
98
ANNUAL REPORT 2016
WHITIREIA
STATEMENT OF CASH FLOWS For the year ended 31 December 2016
Polytechnic Polytechnic
Group Group Note
2016 Actual $000
2016 Budget $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Receipt of Government grants
28,009
29,176
29,167
24,473
25,405
Receipt of student tuition fees
28,027
31,094
30,321
24,578
26,244
5,993
9,177
4,924
7,688
7,115
480
785
562
428
481
Cash flows from operating activities
Receipt of other ancilliary income Interest received Net taxation received / (paid)
58
0
(18)
0
0
(47)
0
(254)
0
(254)
Payment to employees
(34,367)
(32,786)
(31,148)
(34,355)
(31,133)
Payments to suppliers
(25,760)
(26,883)
(26,713)
(20,689)
(21,040)
2,393
10,563
6,841
2,123
6,818
(5,669)
(6,502)
(2,242)
(5,669)
(2,241)
(151)
(130)
(290)
(151)
(290)
0
630
0
0
0
5,983
(2,000)
(6,005)
6,000
(6,000)
164
(8,002)
(8,537)
180
(8,531)
Net (decrease) / increase in cash and cash equivalents
2,557
2,561
(1,696)
2,303
(1,713)
Cash and cash equivalents at the beginning of the period
2,334
10,329
4,030
1,923
3,636
Cash and cash equivalents at the end of the period
4,891
12,890
2,334
4,226
1,923
GST net
Net cash flow from operating activities Cash flow from investing activities Purchase of property, plant and equipment Purchase of intangibles Proceeds from sale of property, plant and equipment Purchase of financial assets in the nature of investments Net cash flow used in investing activities
The GST (net) component of operating activities reflects the net GST paid to and received from 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 notes form part of these financial statements
99
WELTEC AND WHITIREIA
WHITIREIA
Reconciliation from the net surplus / (deficit) to the net cash flows from operations For the year ended 31 December 2016
Polytechnic
Group Note
Surplus / (Deficit) from the statement of comprehensive income
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
(1,897)
3,440
(1,716)
3,115
4,052
3,887
4,059
3,892
Adjustment for: Depreciation Amortisation Surplus on Joint Venture Movement in bad debt provision Total non-cash items
483
465
483
465
(180)
(145)
0
0
39
(1)
39
(1)
4,394
4,206
4,581
4,356
74
(11)
74
(11)
1,397
(2,233)
795
(3,030)
210
(33)
210
(33)
Add / less movements in working capital items Decrease / (Increase) in inventories Decrease / (Increase) in debtors and other receivables (Increase) / Decrease in prepayments (Increase) / Decrease in taxation receivable
58
(48)
0
0
Increase / (Decrease) in creditors and other payables
1,838
1,419
1,869
1,980
(Decrease) / Increase in revenue received in advance
(2,284)
398
(1,886)
738
Increase / (Decrease) in employee entitlements
(1,185)
104
(1,186)
104
(426)
(401)
(426)
(401)
Net movement in working capital items
(318)
(805)
(550)
(653)
Net cash flow from operating activity
2,393
6,841
2,123
6,818
Decrease in provisions
The GST (net) component of operating activities reflects the net GST paid to and received from 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.
100
ANNUAL REPORT 2016
WHITIREIA
NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2016 REPORTING ENTITY
Changes in accounting policies
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.
During the year there has been no changes in accounting policies.
The Polytechnic and group consists of Whitireia Community Polytechnic and its subsidiaries, Whitireia New Zealand Limited (WNZL) (100% owned) and Whitireia Foundation (100% interest). The group also consists of non-trading subsidiaries Whitireia Enterprises Ltd (100% owned), W2 Ventures Limited (50% owned), W² Shared Services Ltd (50% owned). Whitireia also has a 50% interest in two unincorporated joint ventures – Computer Power Plus and W² Shared Services all of which are equity accounted into the Group financial statements. All subsidiaries are incorporated and domiciled in New Zealand.
Basis of consolidation
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. The financial statements of the Polytechnic and group are for the year ended 31 December 2016. The financial statements were authorised for issue by the Council on 19 April 2017.
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 Tier 1 PBE accounting standards. They comply with Public Benefit Entity Reporting Standards, 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 assets classified as held for sale and land and buildings, or where specifically stated in the policies. Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Polytechnic and its subsidiaries is New Zealand Dollars (NZ$).
SIGNIFICANT ACCOUNTING POLICIES 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. Investments in subsidiaries are carried at cost in the Polytechnic’s parent entity financial statements.
WELTEC AND WHITIREIA
WHITIREIA
Jointly Controlled Entities The Polytechnic and group’s jointly controlled entities interest is accounted for using the equity method. Investments in jointly controlled entities are initially recognised at cost and the carrying amount is increased or decreased to recognise the appropriate share of the profit or loss of the jointly controlled entity after the date of acquisition. The Polytechnic and group's share of the profit or loss is recognised in the group profit or loss. Distributions received from a jointly controlled entity reduce the carrying amount of the investment in the group financial statements. If the share of losses of a jointly controlled entity equals or exceeds the interest in the jointly controlled entity, the group discontinues recognising its share of further losses. After the group’s interest is reduced to zero, additional losses are provided for, and a liability is recognised, only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the jointly controlled entity. If the jointly controlled entity subsequently reports profits, the group will resume recognising its share of those profits only after its share of the profits equals the share of losses not recognised. Where the group transacts with a jointly controlled entity, profit or losses are eliminated to the extent of the group’s interest in the relevant jointly controlled entity. Investments in a jointly controlled entity are carried at cost in the Polytechnic parent entity financial statements. Revenue Revenue is measured at the fair value of consideration received or receivable. Government grants and research income Government funding is the Polytechnic’s main source of operational funding from the Tertiary Education Commission (TEC). The Polytechnic considers this funding to be nonexchange and recognised as revenue when the course withdrawal date has passed, based on the number of eligible students enrolled in the course at that date and the value of the course. The Polytechnic considers Performance-Based Research Funding (PBRF) to be non-exchange in nature. PBRF funding is specifically identified by the TEC as being for a funding period as required by section 159YA of the Education Act 1989. The Polytechnic recognises its confirmed allocation of PBRF funding at the commencement of the specified funding period, which is the same as the Polytechnic’s financial year. PBRF revenue is measured based upon the Polytechnic’s entitlement adjusted for any adjustments as part of the final wash-up process. Indicative funding for future periods is not recognised until confirmed for the future period. The Polytechnic exercises its judgement in determining whether funding received under a research contract is received in an exchange or non-exchange transaction.
In determining whether a research contract is exchange or non-exchange, the Polytechnic considers factors such as the following: • Whether the funder has substantive rights to the research output. This is a persuasive indicator of exchange or nonexchange; • How the research funds were obtained. For example, whether through as commercial tender process for specified work or from applying to aa more general research funding pool; • Nature of the funder; and • Specificity of the research brief or contract. For an exchange research contract, revenue is recognised on a percentage of completion basis. The percentage of completion is measured by reference to the actual research expenditure incurred as a proportion to total expenditure expected to be incurred. For a non-exchange research contract, the total funding receivable under the contract is recognised as revenue immediately, unless there are substantive conditions in the contract. If there are substantive conditions, revenue is recognised when the conditions are satisfied. A condition could include the requirement to complete research to the satisfaction of the funder to retain funding or return unspent funds. Revenue for future periods is not recognised where the contract contains substantive termination provisions for failure to comply with the requirements of the contract. Conditions and termination provisions need to be substantive, which is assessed by considering factors such as contract monitoring mechanisms of the funder and the past practice of the funder. Judgement is often required in determining the timing of revenue recognition for contracts that span a balance date and multi-year research contracts. Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance when received and recognised as revenue when the conditions of the grant are satisfied. Domestic student tuition fees Domestic student tuition fees are subsidised by government funding and are considered non-exchange. Revenue is recognised when the course withdrawal date has passed, which is when a student is no longer entitled to a refund for withdrawing from the course. International student tuition fees International student tuition fees are accounted for as exchange transactions and 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.
101
102
ANNUAL REPORT 2016
WHITIREIA
Donations, bequests, and pledges
Operating leases
Donations and bequests are recognised as revenue when the right to receive the fund or asset has been established, unless there is an obligation in substance to return the funds if conditions of the donation or bequest are not met. If there is such an obligation, they are initially recorded as revenue in advance when received and recognised as revenue when the conditions are satisfied. Pledges are not recognised as asset or revenue until the pledged item is received.
Operating leases are leases that do not transfer substantially all the risks and benefits incidental to ownership of the leased item to the Group. Operating lease payments are recognised as an operating expense in surplus or deficit on a straightline basis over the lease term. Lease incentives received are recognised in the surplus or deficit over the lease term as an integral part of the total lease expense.
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.
Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.
Dividends are recognised when the right to receive payment has been established.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Scholarships
Receivables
Scholarships awarded by the Polytechnic that reduce the amount of tuition fees payable by the student are offset against student fees revenue.
Receivables are recorded at their face value, less any provision for impairment.
Borrowing costs Borrowing costs are recognised as an expense in the financial year in which they are incurred. Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date. The substance of the arrangement depends on whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. 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 start 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 and 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.
Foreign currency transactions Transactions in foreign currencies are initially accounted for at the ruling rate of exchange on the date of the transaction. Trade creditors and debtors denominated in foreign currency are reported at the statement of financial position reporting date by applying the exchange rate on that date. Exchange differences arising from the settlement of creditors, or from reporting of creditors at rates different from those at which they were initially recorded during the period, are recognised as income or expenses in the period in which they arise. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using exchange rates at the date when the fair value was determined. Other financial assets (including investment in other entities) 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 derecognised 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.
WELTEC AND WHITIREIA
WHITIREIA
There are four categories of financial assets under PBE IPSAS 29. The Polytechnic holds financial assets classified as loans and other receivables. Classification of the financial asset depends on the purpose for which the instruments were acquired.
Financial assets at fair value through other comprehensive revenue and expense
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.
For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into receivership or liquidation, and default in payments are considered to be objective indicators that the asset is impaired.
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 derecognised are recognised in the surplus or deficit. 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.
For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered to be objective evidence of impairment.
If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit. Equity instrument losses recognised in the surplus or deficit are not reversed through the surplus or deficit. If in a subsequent period the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.
103
104
ANNUAL REPORT 2016
WHITIREIA
Inventories Inventory is measured at cost upon initial recognition. To the extent where inventory was received through non-exchange transactions (for no cost or for a nominal cost), the cost of the inventory is its fair value at the date of acquisition.
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
After initial recognition, inventories held for resale are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs to make the sale, exchange, or distribution.
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.
Property, plant and equipment
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.
Property, plant and equipment consists of the following asset classes: land and 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 deemed cost on acquisition 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 biannually 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.
Depreciation
The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Years
%
10 - 50
2% - 10%
8 - 10
10% - 12%
Motor Vehicles
5
20%
Computer Hardware
5
20%
10
10%
Library Collection
5-8
12.5%
Office Equipment
5
20%
Teaching Equipment
5
20%
Leasehold Improvements
1-12
8% - 100%
Communication Systems
4
25%
Signage
4
25%
Buildings Plant and Machinery
Furniture and Fittings
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. For revalued assets, any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the revalued amounts of the assets. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. An assetâ&#x20AC;&#x2122;s carrying amount is written down immediately to its recoverable amount, or recoverable service amount, if the assetâ&#x20AC;&#x2122;s carrying amount is greater than its estimated recoverable amount or recoverable service amount. Please refer to policy on impairment of non-financial assets below.
WELTEC AND WHITIREIA
WHITIREIA
Derecognition
Goodwill
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits or service potential are expected from its use or disposal.
Goodwill is initially recognised at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in surplus or deficit.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in surplus or deficit. Upon disposal or derecognition, any revaluation reserve relating to the particular asset being sold is transferred to accumulated comprehensive revenue and expense. Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a non-exchange transaction is their fair value at the date of the exchange. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in surplus or deficit in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
After initial recognition, goodwill is measured at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units. Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cashgenerating unit retained. Research and development costs
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits or service potential embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate:
The amortisation expense on intangible asset with finite lives is recognised in surplus or deficit as the expense category that is consistent with the function of the intangible assets.
• How the asset will generate future economic benefits or service potential; and
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on the prospective basis. Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposable proceeds and the carrying amount of the asset and are recognised in surplus or deficit when the asset is derecognised.
• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale; • Its intention and ability to complete and use or sell the asset;
• The ability to measure reliably the expenditure during development. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. During the period of development, the asset is tested for impairment annually.
105
106
ANNUAL REPORT 2016
WHITIREIA
Software The Group holds several computer software packages for internal use, including purchased software and software developed in-house by the Group. Purchased software is recognised and measured at the cost incurred to acquire the software. Developed software is recognised and measured during the development stage in accordance with the Research and development paragraph above. Costs that are directly associated with the development of the software, including employee costs, are capitalised as an intangible asset. Staff training costs and costs associated with maintaining computer software are recognised as expenses in surplus or deficit 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. Amortisation A summary of the policies applied to the Group’s intangible assets is, as follows:
Computer software
Course development costs
Life
Amortisation method
Internally generated or acquired
3 years
Straight line
Some acquired and some internally generated
3 years
Straight line
Acquired
Impairment of property, plant, and equipment and intangible assets Intangible assets that have an indefinite useful life, or not yet available for use, and goodwill, 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 asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written-
down to the recoverable amount. For revalued assets the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the 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. Impairment related to goodwill cannot be reversed. 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. Assets held for sale Properties that are not required for service delivery and are intended to be sold are classified as held for sale. Gains and losses arising from a change in the fair value of properties held for sale 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 Wages, salaries, annual leave and sick leave Liabilities for wages and salaries (including non-monetary benefits), annual leave and accumulating sick leave are recognised in surplus or deficit during the period in which the employee rendered the related services, and are generally expected to be settled within 12 months of the reporting date. The liabilities for these short-term benefits are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at rates paid or payable. Long service leave and retirement leave Employees of the Group become eligible for long service leave and retirement leave after a certain number of years of employment, depending on their contract. The liability for long service leave and retirement leave is recognised and measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. The Group’s liability is based on an actuarial valuation. Actuarial gains and losses on the long-term incentives are fully accounted for in the statement of financial performance.
WELTEC AND WHITIREIA
WHITIREIA
Superannuation schemes
Goods and Services Tax (GST)
Defined contribution schemes
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.
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 disaggregated and classified into a number of components. The components of equity are:
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 and Whitireia New Zealand Ltd are exempt from income tax, pursuant to section 55BA (as amended) 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. Budget figures
• Property revaluation reserves;
The budget figures are those approved by 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 preparing these financial statements.
• Fair value through comprehensive income reserves; and
Cost Allocation
• Restricted reserves.
The cost of service for each significant activity of the Polytechnic and group has been derived using the cost allocation system outlined below.
• General funds;
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 to fair value.
Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity. Direct costs are charged directly to significant activities. Indirect costs are charged to a central activity.
107
108
ANNUAL REPORT 2016
WHITIREIA
Critical accounting estimates and assumptions In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. 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 11 provides information about the estimates and assumptions exercised in the measurement of revalued land, buildings and infrastructure. Critical judgements in applying accounting policies Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2016: 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.
109
WELTEC AND WHITIREIA
WHITIREIA
Polytechnic
Group
2
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
27,226
28,544
23,706
24,707
Performance-based research funding
167
174
167
174
Other Government Grants
541
524
541
524
27,934
29,242
24,414
25,405
437
448
437
448
2,386
2,471
4,453
4,772
Bookshop income
468
247
468
247
Dividends received
50
52
50
52
1,775
1,603
1,770
1,596
5,116
4,821
7,178
7,115
INCOME Government grants Student Achievement Component (SAC) funding
Other income Rental Revenue Education service contracts
Other Income
Polytechnic
Group
3
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Short term employee benefits
914
738
914
738
Councillor fees
100
80
100
80
Academic Salaries
20,819
19,592
20,819
19,592
General salaries and wages
10,636
10,205
10,623
10,191
713
637
713
637
33,182
31,252
33,169
31,238
PERSONNEL COSTS Key Management Compensation
Staff Compensation
Defined contribution plan employer contributions
Key management personnel includes the Council (refer note 24) and executive management. Whitireia and WelTec and established a Joint Leadership Team (consisting of the Chief Executive and 8 Directors) from 9 February 2016. Prior to 9 February 2016 key management included the Council and executive management (Chief Executive, and 2 executive personnel). Employer contributions to defined contribution plans include contributions to KiwiSaver and the Government Superannuation Fund.
110
ANNUAL REPORT 2016
WHITIREIA
Polytechnic
Group
4
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
169
162
128
122
16
0
16
0
543
535
543
535
Bad debts expensed
63
15
63
15
Bank Charges
72
96
72
96
166
160
166
160
2,741
3,454
2,741
3,448
462
813
430
784
46
80
46
80
274
515
274
515
Export Education Levy
81
82
81
82
Fees and subscriptions
321
290
321
290
Graduation costs
128
125
128
125
Grants & Scholarships
0
3
0
3
Immigration Visa Fees
48
43
48
43
3,153
2,575
3,153
2,575
351
484
351
484
International Contacts Activities
52
50
52
50
Motor Vehicle Expenses
71
86
71
86
270
210
270
210
60
49
60
49
148
136
148
136
40
42
40
42
Sundry Expenses
279
74
277
72
Travel & Accommodation
612
507
612
507
40
36
39
36
10,206
10,622
10,130
10,545
OTHER EXPENSES Audit Fees - current year Audit fees - prior years Advertising and public relations
Catering Commissions paid Consultants & Legal Consumables Equipment Lease
Information technology Insurance
Office Costs Postage Professional development fees Repairs & Maintenance Information Technology
Whitireia Scholarships
111
WELTEC AND WHITIREIA
WHITIREIA
Polytechnic
Group
5
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Restructuring
(256)
(33)
(256)
(33)
Reassessment of transition to IPSAS
(273)
0
(273)
0
Impairment of assets
(459)
(42)
(459)
(42)
Earthquake Recovery
(38)
0
(38)
0
(1,026)
(75)
(1,026)
(75)
NON-OPERATING EXPENSE
Total non-operating expenses
Non-Operating Items Restructuring Consultancy costs of $41,000 and redundancies of $215,000 were incurred during the year. Impairment of Assets Impairments have been recorded relating to leasehold improvements, reduction in student receivables and intangible assets (software). Earthquake Recovery Costs arising from the 14 November 2016 earthquake including engineers reports, minor repairs and replacement of minor equipment. Reassessment of transition to IPSAS During 2015 the Polytechnic determined the adjustment required in order to comply with PBE IPSAS 23 Revenue from Non-Exchange Contracts (effective from 1 January 2015) was based upon the study contract start date. During 2016 the Polytechnic determined that it is more appropriate to base the determination on the course start date. This resulted in reduction of revenue attributable to the opening equity position at 1 January 2014. An adjustment has been made as at 31 December 2016. Polytechnic
Group
6
CASH AND CASH EQUIVALENTS Cash at bank and in hand Term deposits with maturities less than 3 months
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
4,882
2,277
4,226
1,923
9
57
0
0
4,891
2,334
4,226
1,923
The carrying value of cash at bank, call deposits, and term deposits with original maturities less than three months approximates their fair value.
112
ANNUAL REPORT 2016
WHITIREIA
Polytechnic
Group
7
DEBTORS AND OTHER RECEIVABLES
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
3,785
4,378
3,578
3,863
(60)
(21)
(60)
(21)
3,725
4,357
3,518
3,842
4,364
5,168
2,791
3,301
8,089
9,525
6,309
7,143
Student receivables Student Fees Receivables Provision for Impairment Net student fee receivables Other receivables Other Debtors and receivables
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. Impairment The ageing profile of student fee receivables at year end is detailed below:
Gross $'000
Impairment $'000
Net $'000
Gross $'000
Impairment $'000
Net $'000
2,578
0
2,578
2,542
0
2,542
Past due 31 - 60 days
816
0
816
659
0
659
Past due 61 - 90 days
181
0
181
180
0
180
Past due over 90 days
210
(60)
150
197
(60)
137
3,785
(60)
3,725
3,578
(60)
3,518
Not past due
2,177
0
2,177
2,138
0
2,138
Past due 31 - 60 days
1,444
0
1,444
1,000
0
1,000
Past due 61 - 90 days
329
0
329
329
0
329
Past due over 90 days
428
(21)
407
396
(21)
375
4,378
(21)
4,357
3,863
(21)
3,842
2016 Not past due
Total 2015
Total
113
WELTEC AND WHITIREIA
WHITIREIA
Due to the 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. Movements in the provision for impairment of student fee receivables are as follows:
Polytechnic
Group 2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
At 1 January
21
22
21
22
Additional provisions made during the year
39
17
39
(1)
0
(18)
0
0
60
21
60
21
Work in Progress (at cost)
82
215
82
215
Materials and consumables (at cost)
64
5
64
5
Finished goods (at lower of cost and net realisable value)
62
62
62
62
208
282
208
282
Receivables w ritten of f during the year At 31 December
8
INVENTORY Inventory held for sale or provision of services at commercial terms:
Total inventory at the lower of cost and net realisable value
During the year inventories with a cost value of $423,000 (2015:$216,000) has been included in trading activity expenditure on the Statement of Financial Performance.
114
ANNUAL REPORT 2016
WHITIREIA
9
FINANCIAL ASSETS IN THE NATURE OF INVESTMENTS
Polytechnic
Group
Effective interest rate %
Maturity
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
ASB - Foundation
3.00%
2-Dec-2017
260
243
0
0
ASB - Foundation
3.00%
2-Dec-2017
129
129
0
0
ANZ Bank
4.00%
20-Apr-2016
0
2,000
0
2,000
BNZ Bank
3.58%
11-Feb-2016
0
2,000
0
2,000
BNZ Bank
3.66%
12-Aug-2016
0
2,000
0
2,000
Westpac Bank
4.62%
12-Mar-2016
0
2,000
0
2,000
Westpac Bank
3.50%
8-Mar-2017
2,000
0
2,000
0
2,389
8,372
2,000
8,000
Current Deposits with bank
Non Current Investments in controlled entity (at cost)
0
0 2,389
1,346 8,372
1,346 2,000
8,000
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 Polytechnic holds an 8.33% shareholding in Skills for NZ Ltd. No consideration was made for this shareholding. This company was wound up on 24 February 2017. The investment in controlled entity is for WNZL (100% owned).
115
WELTEC AND WHITIREIA
WHITIREIA
10 INVESTMENT IN JOINTLY CONTROLLED ENTITIES The Polytechnic and WelTec have a 50% interest in two joint ventures, Computer Power Plus (CPP) and W2. CPP is an unincorporated joint venture that undertakes academic and support services on contract to WNZL. W2 is an incorporated joint venture that provides services to Whitireia and WelTec. The following amounts represent the group’s share of the assets, liabilities, income and expenses of the joint ventures: Group 2016 Actual $000
2015 Actual $000
140
140
903
723
Current assets
765
746
Non current assets
386
187
1,151
933
Current liabilities
(248)
(211)
Total liabilities
(248)
(211)
Parent Investment in Computer Power Plus Group Investment in Computer Power Plus Assets
Total assets Liabilities
Income Expenses Profit/(Loss) Share of joint venture’s contingent liabilities Share of joint venture’s commitments
2,500
2,471
(2,320)
(2,326)
180
145
-
-
577
1,029
ANNUAL REPORT 2016
WHITIREIA
11 PROPERTY, PLANT AND EQUIPMENT Computer Hardware
Furniture and Fittings and Artwork
Library Collection
Plant and Machinery
Motor Vehicles
Office Equipment
Teaching Equipment
Leasehold Improvements
Communication Systems
Signage
Construction in Progress
Total
GROUP $000
Land and Buildings
116
57,712
6,947
3,070
3,172
1,009
837
440
4,045
12,190
1,199
219
1,067
91,907
Additions during the year
463
523
93
145
19
63
12
261
352
11
2
2,059
4,003
Disposals during the year
0
(10)
0
0
(1)
0
0
(2)
0
0
0
0
(13)
Cost / Valuation at 31 December 2016
58,175
7,460
3,163
3,317
1,027
900
452
4,304
12,542
1,210
221
4,848
97,619
Cost / Valuation Cost / Valuation at 1 January 2016
Accumulated Depreciation Accumulated depreciation at 1 January 2016
0
(6,113)
(2,084)
(2,406)
(837)
(674)
(426)
(3,345)
(6,002)
(1,073)
(145)
0
(23,105)
Current year depreciation
(1,420)
(458)
(171)
(208)
(57)
(51)
(6)
(344)
(1,221)
(110)
(6)
0
(4,052)
Disposals during the year
0
7
0
0
1
0
0
2
0
0
0
0
10
Revaluations / Impairment
0
0
0
0
0
0
0
0
(50)
0
0
0
(50)
Accumulated depreciation at 31 December 2016
(1,420)
(6,564)
(2,255)
(2,614)
(893)
(725)
(432)
(3,687)
(7,240)
(1,183)
(151)
0
(27,197)
Net book value
56,755
896
908
703
134
175
20
617
5,269
27
70
4,848
70,442
117
WELTEC AND WHITIREIA
WHITIREIA
Land and Buildings
Computer Hardware
Furniture and Fittings and Artwork
Library Collection
Plant and Machinery
Motor Vehicles
Office Equipment
Teaching Equipment
Leasehold Improvements
Communication Systems
Signage
Construction in Progress
Total
GROUP $000
58,834
6,408
3,017
2,967
997
751
440
3,860
12,124
1,172
209
76
90,855
Additions during the year
257
539
53
205
12
142
0
185
66
27
10
991
2,487
Disposals during the year
0
0
0
0
0
(56)
0
0
0
0
0
0
(56)
Revaluations
(1,379)
0
0
0
0
0
0
0
0
0
0
0
(1,379)
Cost / Valuation at 31 December 2015
57,712
6,947
3,070
3,172
1,009
837
440
4,045
12,190
1,199
219
1,067
91,907
Cost / Valuation Cost / Valuation at 1 January 2015
Accumulated Depreciation Accumulated depreciation at 1 January 2015
(1,412)
(5,704)
(1,911)
(2,217)
(778)
(671)
(418)
(2,988)
(4,734)
(953)
(142)
0
(21,928)
Current year depreciation
(1,486)
(409)
(173)
(189)
(59)
(36)
(8)
(357)
(1,227)
(120)
(3)
0
(4,067)
0
0
0
0
0
33
0
0
0
0
0
0
33
2,898
0
0
0
0
0
0
0
(41)
0
0
0
2,857
0
(6,113)
(2,084)
(2,406)
(837)
(674)
(426)
(3,345)
(6,002)
(1,073)
(145)
0
(23,105)
57,712
834
986
766
172
163
14
700
6,188
126
74
1,067
68,802
Disposals during the year Revaluations / Impairment Accumulated depreciation at 31 December 2015 Net book value
ANNUAL REPORT 2016
WHITIREIA
Computer Hardware
Furniture and Fittings and Artwork
Library Collection
Plant and Machinery
Motor Vehicles
Office Equipment
Teaching Equipment
Leasehold Improvements
Communication Systems
Signage
Construction in Progress
Total
POLYTECHNIC $000
Land and Buildings
118
57,712
6,955
3,062
3,173
1,061
837
436
4,037
12,190
1,200
219
1,067
91,949
Additions during the year
463
523
93
145
19
63
12
261
352
11
2
2,059
4,003
Disposals during the year
0
(10)
0
0
(1)
0
0
(2)
0
0
0
0
(13)
Cost / Valuation at 31 December 2016
58,175
7,468
3,155
3,318
1,079
900
448
4,296
12,542
1,211
221
4,848
97,661
Cost / Valuation Cost / Valuation at 1 January 2016
Accumulated Depreciation Accumulated depreciation at 1 January 2016
0
(6,116)
(2,083)
(2,407)
(865)
(674)
(425)
(3,341)
(6,002)
(1,074)
(145)
0
(23,132)
Current year depreciation
(1,420)
(458)
(171)
(208)
(62)
(51)
(6)
(346)
(1,221)
(110)
(6)
0
(4,059)
Disposals during the year
0
7
0
0
0
0
0
1
0
0
0
0
8
Revaluations / Impairment
0
0
0
0
0
0
0
0
(50)
0
0
0
(50)
Accumulated depreciation at 31 December 2016
(1,420)
(6,567)
(2,254)
(2,615)
(927)
(725)
(431)
(3,686)
(7,273)
(1,184)
(151)
0
(27,233)
Net book value
56,755
901
901
703
152
175
17
610
5,269
27
70
4,848
70,248
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 Ltd, and the valuation is effective as at 31 December 2015. 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 following:
119
WELTEC AND WHITIREIA
WHITIREIA
Land and Buildings
Computer Hardware
Furniture and Fittings and Artwork
Library Collection
Plant and Machinery
Motor Vehicles
Office Equipment
Teaching Equipment
Leasehold Improvements
Communication Systems
Signage
Construction in Progress
Total
POLYTECHNIC $000
58,834
6,416
3,009
2,968
1,049
751
436
3,852
12,125
1,173
209
76
90,898
Additions during the year
257
539
53
205
12
142
0
185
65
27
10
991
2,486
Disposals during the year
0
0
0
0
0
(56)
0
0
0
0
0
0
(56)
Revaluations
(1,379)
0
0
0
0
0
0
0
0
0
0
0
(1,379)
Cost / Valuation at 31 December 2015
57,712
6,955
3,062
3,173
1,061
837
436
4,037
12,190
1,200
219
1,067
91,949
Cost / Valuation Cost / Valuation at 1 January 2015
Accumulated Depreciation Accumulated depreciation at 1 January 2015
(1,412)
(5,707)
(1,910)
(2,218)
(801)
(671)
(417)
(2,984)
(4,734)
(954)
(142)
0
(21,950)
Current year depreciation
(1,486)
(409)
(173)
(189)
(64)
(36)
(8)
(357)
(1,227)
(120)
(3)
0
(4,072)
0
0
0
0
0
33
0
0
0
0
0
0
33
2,898
0
0
0
0
0
0
0
(41)
0
0
0
2,857
0
(6,116)
(2,083)
(2,407)
(865)
(674)
(425)
(3,341)
(6,002)
(1,074)
(145)
0
(23,132)
57,712
839
979
766
196
163
11
696
6,188
126
74
1,067
68,817
Disposals during the year Revaluations / Impairment Accumulated depreciation at 31 December 2015 Net book value
• 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; and • 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 Ltd, and the valuation is effective as at 31 December 2015.
Restrictions on title During 2016 the title of land and buildings was transferred from the Crown to Whitireia. The change of ownership was effective from 23 August 2016. 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.
ANNUAL REPORT 2016
WHITIREIA
$000
Total
$000
Software
$000
Total
$000
Software Development in Progress
$000
Goodwill
$000
$000
Polytechnic
Group
Software Development in Progress
12 INTANGIBLE ASSETS
Software
120
Balance at 1 January 2016 Cost
4,195
761
39
4,995
4,195
39
4,234
(3,444)
0
0
(3,444)
(3,444)
0
(3,444)
751
761
39
1,551
751
39
790
217
0
55
272
217
55
272
Impairment
(121)
0
0
(121)
(121)
0
(121)
Amortisation
(483)
0
0
(483)
(483)
0
(483)
(387)
0
55
(332)
(387)
55
(332)
4,412
761
94
5,267
4,412
94
4,506
(4,048)
0
0
(4,048)
(4,048)
0
(4,048)
364
761
94
1,219
364
94
458
3,944
761
0
4,705
3,944
0
3,944
(2,979)
0
0
(2,979)
(2,979)
0
(2,979)
965
761
0
1,726
965
0
965
251
0
39
290
251
39
290
Accumulated depreciation in additions
0
0
0
0
0
0
0
Disposals
0
0
0
0
0
0
0
(465)
0
0
(465)
(465)
0
(465)
(214)
0
39
(175)
(214)
39
(175)
4,195
761
39
4,995
4,195
39
4,234
(3,444)
0
0
(3,444)
(3,444)
0
(3,444)
751
761
39
1,551
751
39
790
Accumulated amortisation and impairment Opening carrying amount Balance at 31 December 2016 Additions at cost
Balance at 31 December 2016 Cost Accumulated amortisation and impairment Closing carrying amount Balance at 31 December 2016 Cost Accumulated amortisation and impairment Opening carrying amount Year ended 31 December 2015 Additions at cost
Amortisation
Balance at 31 December 2015 Additions at cost Accumulated depreciation in additions Closing carrying amount
121
WELTEC AND WHITIREIA
WHITIREIA
There are no restrictions over the title of intangible assets. No intangible assets arepledged as security for liabilities. Goodwill Goodwill of $761,000 (2015: $761,000) has been allocated to the cash generating unit (CGU) of WNZL. The synergies of the business combination in which the goodwill arose are expected to be realised only by the assets of WNZL. 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 fiveyear period have been extrapolated using an estimated growth rate of 1% (2015: 1.5%). 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. • Weighted average growth rate – 3.58% (2015: 3.58%) • Pre-tax discount rate – 3.4% (2015: 8%) These assumptions have been used for the analysis of the CGU of WNZL. The discount rate was revised during the year based on the Polytechnic’s cost of borrowing. 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 pre-tax and reflects specific risks relevant to the CGU. The Polytechnic and group 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. Group
13 ASSETS HELD FOR SALE Opening balance as at 1 January (fair value) Net gain from fair value adjustment
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
636
636
636
636
0
0
0
0
636
636
636
636
The Polytechnic was advised during 2014 that Porirua City Council will be acquiring a portion of the land at Commerce Crescent under the Public Works Act. This portion of the land continues to be valued based on the agreed acquisition price. The balance of the land is expected to be sold on the open market. This portion of the land was valued by a registered independent valuer, Darroch Limited, on 11 May 2016. All of the land is expected to be sold during 2017. Group
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Trade Payables
1,024
978
1,024
978
Other payables and accruals
4,922
2,910
3,995
2,197
GST
649
696
649
696
Amounts owing to related parties
846
867
986
792
7,441
5,451
6,654
4,663
14 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.
122
ANNUAL REPORT 2016
WHITIREIA
15 SPECIAL ACCOUNTS Special accounts represents funds held by the Polytechnic on behalf of others and funds provided to the Polytechnic by various organisations for specific projects. Group
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
60
107
56
76
7
15
7
15
15
106
15
108
82
228
78
199
10,841
13,125
9,979
11,865
10,841
13,125
9,979
11,865
Accrued pay
(209)
786
(209)
786
Annual leave
2,043
2,298
2,043
2,299
131
58
131
58
Long service leave
7
7
7
7
Retirement leave
24
23
24
23
1,996
3,172
1,996
3,173
Long service leave
46
49
46
49
Retirement leave
116
122
116
122
Total non-current portion
162
171
162
171
2,158
3,343
2,158
3,344
Whitireia International Homestay Trust Activities account Other accounts
16 REVENUE RECEIVED IN ADVANCE Student Fees received in advance
17 EMPLOYEE ENTITLEMENTS Current Portion
Sick leave
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 on an actuarial basis. The provision is affected by number of assumptions including expected length of service, attrition rate, and salary increase.
123
WELTEC AND WHITIREIA
WHITIREIA
18 PROVISIONS Non-current portion Lease inducements Contract settlement provision
Group
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
316
335
316
335
91
91
91
91
407
426
407
426
1,304
1,621
1,304
1,621
612
702
612
702
1,916
2,323
1,916
2,323
2,323
2,749
2,323
2,749
Non-current portion Lease inducements Contract settlement provision
Total provisions
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 on an actuarial basis. The provision is affected by number of assumptions including expected length of service, attrition rate, and salary increase.
Polytechnic and Group
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
1,956
0
(335)
1,621
793
0
(91)
702
2,749
0
(426)
2,323
2,266
25
(335)
1,956
884
0
(91)
793
3,150
25
(426)
2,749
2016 Lease inducement provision Contract settlement provision Total
2015 Lease inducement provision Contrasct management provision Total
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 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 23).
Contract settlement During 2014, the Polytechnic and Group entered into a contract for the supply of copying services. In terms of this contract a payment was received from the supplier in order to enable the Polytechnic and Group to exit its current supply agreement. This amount has been accounted for as a provision to be amortised over the period of the agreement.
124
ANNUAL REPORT 2016
WHITIREIA
Group
19 EQUITY
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Balance at 1 January
49,489
46,049
48,371
45,256
Surplus / (deficit) for the year
(1,683)
3,440
(1,908)
3,115
0
0
0
0
47,806
49,489
46,463
48,371
18,599
17,079
18,599
17,079
0
1,520
0
1,520
18,599
18,599
18,599
18,599
Balance at 1 January
12
12
0
0
Balance at 31 December
12
12
0
0
General funds
Non-comprehensive items Balance at 31 December
Property revaluation reserve Balance at 1 January Land and Buildings net revaluation (loss) / gain
Balance at 31 December
Restricted reserves
20 TAXATION Section 86 of the Taxation (Annual Rates for 2015 â&#x20AC;&#x201C; 2016, Research and Development, and Remedial Matters) Act 2016 was enacted on 24 February 2016 and amends section CW 55BA of the Income Tax Act 2007. The amendment provides that income derived from subsidiaries of tertiary education institutions is exempt income. The amendment has retrospective application to the 2008/09 income year. As a result of this amendment the Group will no longer be a tax payer.
125
WELTEC AND WHITIREIA
WHITIREIA
21 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. 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 availablefor-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.
2016
2015
-50 bps Surplus and other equity
+150 bps Surplus and other equity
-50 bps Surplus and other equity
+150 bps Surplus and other equity
Cash and cash equivalents
(24)
73
(12)
35
Financial assets in the nature of investments
(12)
36
(42)
126
(36)
109
(54)
161
Cash and cash equivalents
(21)
63
(10)
29
Financial assets in the nature of investments
(10)
30
(40)
120
(31)
93
(50)
149
Group Financial Assets
Total sensitivity
Polytechnic Financial Assets
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%. 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:
126
ANNUAL REPORT 2016
WHITIREIA
Group
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
AA -
7,280
10,706
6,226
9,923
Total cash at bank and term deposits
7,280
10,706
6,226
9,923
8,089
9,525
6,309
7,143
8,089
9,525
6,309
7,143
Counterparties with credit ratings Cash at bank and term deposits
Debtors and other receivables Existing counterparty without defaults in the past
Total debtors and other receivables
Liquidity Risk Liquidity risk is the risk that the Polytechnic and 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 Polytechnic and group aims to maintain flexibility in funding by arranging committed credit lines when required. The Polytechnic has approval from the Secretary for Education for a credit line of up to $7 million. The Polytechnic has a credit line in place with Westpac which is adjusted as required to meet the Polytechnicâ&#x20AC;&#x2122;s liquidity requirements and reserves policy. As at 31 December 2016 the value of the credit line facility was $1m. The facility has not been drawn on to date. In meeting its liquidity requirements, the Polytechnic and group maintains a target level of investments that must mature within specified timeframes. Categories of financial assets and liabilities Group
Polytechnic
Note
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
Cash and cash equivalents
6
4,891
2,334
4,226
1,923
Debtors and other receivables
7
8,089
9,525
6,309
7,143
Financial assets in the nature of investments
9
2,389
8,372
3,346
9,346
15,369
20,231
13,881
18,412
(7,441)
(5,451)
(6,654)
(3,871)
(7,441)
(5,451)
(6,654)
(3,871)
Loans and receivables
Financial liabilities measured at amortised cost Creditors and other payables
Total financial liabilities measured at amortised cost
14
Trade and other payables (note 14) are all due and payable within 6 months of the balance date. There are no financial instruments held at fair value.
WELTEC AND WHITIREIA
WHITIREIA
22 CAPITAL MANAGEMENT The Polytechnic and groupâ&#x20AC;&#x2122;s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented by net assets. The Polytechnic and group are 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 and group manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments, and general financial dealings to ensure the Polytechnic and group effectively achieves its objectives and purpose, whilst remaining a going concern.
23 COMMITMENTS AND CONTINGENCIES Operating lease commitments â&#x20AC;&#x201C; Polytechnic and group as lessee The Polytechnic and group has entered into commercial leases on buildings where it is not in the best interest of the Polytechnic and group to purchase these assets. These leases have an average life of between one and twenty-one years with renewal terms included in the contracts. 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: Group
Polytechnic
2016 Actual $000
2015 Actual $000
2016 Actual $000
2015 Actual $000
3,814
3,697
3,814
3,697
Due after one year and less than five years
17,745
19,135
17,745
19,135
Due after five years
44,926
54,666
44,926
54,666
66,485
77,498
66,485
77,498
Operating Commitments Due within one year
Whitireia and WelTec have entered into a joint lease for premises at 82-92 Cuba Street and 65 Dixon Street, Wellington. The two institutions are jointly and severally liable for the lease costs and 66% of the lease commitment has been included in the operating commitments. Polytechnic
Capital Commitments
2016 Actual $000
2015 Actual $000
20,437
0
Porirua campus upgrade
0
282
Auckland campus redevelopment
0
443
307
54
20,744
779
At 31 December the polytechnic had the following commitments. Te Auaha Centre development
Website Refresh
Legal Claims The Polytechnic and group has no legal claims pending at 31 December 2016. (2015: 10,000).
Other contingent liabilities The Polytechnic and group has no other contingent liabilities (2015: Nil).
Contingent assets The Polytechnic and group has no contingent assets (2015: Nil).
127
128
ANNUAL REPORT 2016
WHITIREIA
24 RELATED PARTY DISCLOSURE Outstanding balances at 31 December 2016 and 2015 are unsecured and settlement occurs in cash. Group
Whitireia New Zealand Limited
2016 Actual $000
2015 Actual $000
Services provided by the Polytechnic
2,067
2,300
803
562
5,013
4,955
93
97
1,016
755
2,189
1,648
Unsecured loans payable to the Polytechnic
18
0
Unsecured loans payable by the Polytechnic
117
289
Unsecured loans payable by the Polytechnic
Computer Power Plus Joint Venture Services provided to WNZL Services provided by the Polytechnic Unsecured loans payable by Whitireia New Zealand Limited
W2 Joint Venture Services provided to the Polytechnic
Transactions between the Polytechnic 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 2016, the group has not raised any provisions for doubtful debts relating to amounts owed by related parties as the payment history has been excellent (2015: 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. Crown / Government The Government influences the roles of the Polytechnic as well as significant source of revenue, as disclosed in note 2. In conducting its activities, the Polytechnic is required to pay various taxes and levies (such as GST, 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. The Polytechnic is exempt from paying income tax and FBT. The Polytechnic 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 2016 are immaterial compared to the Polytechnic's total revenue and expenditure and have all been conducted on an armsâ&#x20AC;&#x2122; length basis. These purchases included the purchase of electricity from Meridian, air travel from Air New Zealand, postal services from NZ Post and procurement services from the Ministry of Economic Development.
Related Party Transactions During the year the Polytechnic purchased services from various organisations that are related to members of Council. These services cost $20,859 (2015: $9,445) and were supplied on normal commercial terms. The amounts paid to individual organisations are immaterial to the Polytechnic's total revenue and expenditure.
Transactions with key management personnel Financial details of key management personnel remuneration are disclosed in note 3 to the financial statements. Key management personnel includes the Council and executive management. Whitireia and WelTec and established a Joint Leadership Team (consisting of the CEO and 8 Directors) from 9 February 2016. The costs of Council members and JLT are shared between Whitireia and WelTec.
WELTEC AND WHITIREIA
WHITIREIA
Councillor Fees Council members (paid jointly by Whitireia and WelTec) 2016 Actual $000
2015 Actual $000
Roger Sowry (Chair)
40
32
Vaughan Renner (Deputy Chairperson)
25
20
Deborah Hume
20
16
Nancy McIntosh-Ward
20
16
Anthony Royal
20
16
Kabini Sanga
20
16
Fran Wilde
20
16
Jackie Lloyd
20
9
185
141
25 EVENTS AFTER BALANCE DATE Except as already disclosed, there were no other events that have occurred between 31 December 2016 and the date of this report. (2015: None)
26 EXPLANATIONS OF MAJOR VARIANCES AGAINST BUDGET Statement of Financial Performance Revenue for the Polytechnic was $5.2m below budget due to lower student numbers with fees from international students $2.4m below budget and domestic student revenue $1.8m below budget. Lower revenue was partly offset by expenditure reductions of $1.6m. The Polytechnicâ&#x20AC;&#x2122;s operating result was a deficit of $882k against a budget of $2.6m. The group result was an operating deficit of $837k against a budget surplus of $2.7m. Statement of Financial Position Total cash balances at 31 December 2016 were $4.9m against a budget of $12.9m. The reduction is largely due to the lower surplus ($4.2m) and lower revenue in advance from international students ($2.5m).
129
130
ANNUAL REPORT 2016
WHITIREIA
STATEMENT OF COMPLIANCE AND RESPONSIBILITY For the year ended 31 December 2016
STATEMENT OF COMPLIANCE The Council and management of Wellington Institute of Technology confirm that all the statutory requirements in relation to this annual report, as outlined in the Education Act 1989, have been met.
STATEMENT OF RESPONSIBILITY The Council and management accept responsibility for the preparation of the annual financial statements and judgements used in them, and hereby adopt the financial statements as presented. They also accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting and service performance reporting. In the Council and managementâ&#x20AC;&#x2122;s opinion, the annual financial statements for the year ended 31 December 2016 fairly reflect the financial position, financial performance and service performance achievements of the Wellington Institute of Technology and group. Signed by.
Acting Chair of Council
Chief Executive
19 April 2017
19 April 2017
WELTEC AND WHITIREIA
131
132
ANNUAL REPORT 2016
WELTEC AND WHITIREIA
Other Financial summaries Te Whare Ako
134
Whitireia Community Polytechnic Childcare Centre
135
Compulsory Student Services Levy WelTec
136
Compulsory Student Services Levy Whitireia
138
133
134
ANNUAL REPORT 2016
WELTEC
Te Whare Ako Financial Summary Te Whare Ako is a Business Unit within WelTec providing early childhood education services. WelTec holds a separate licence from the Ministry of Education for the provision of these services. This financial summary does not reflect occupancy costs or depreciation on buildings and equipment used by the unit.
Income Government grants ISS subsidy Childcare fees Other fees
2016 Actual $000
2015 Actual $000
387
358
59
64
110
90
-
-
555
512
521
512
Expenses Employee benefits Other direct costs Trading contribution
38
31
559
543
(4)
(31)
WELTEC AND WHITIREIA
WHITIREIA
Whitireia Community Polytechnic Childcare Centre Financial Summary The Childcare Centre is run as a separate trading entity within the Polytechnic. It operates under one licence (full/ all day - Ministry of Education) to provide childcare for up to 30 children primarily for staff and students at the Polytechnic.
Income Operating grants - MoE Fees - staff, students, public Family assistance (WINZ)
2016 Actual $000
2015 Actual $000
242
211
35
21
68
50
345
282
358
353
35
36
393
389
(48)
(107)
MoE hours funded - under 2's
8,527
7,795
MoE hours funded - over 2's
8,562
4,799
MoE 20 hours ECE
9,956
8,703
MoE plus 10 hours ECE
3,522
3,195
Expenses Personnel Other
Net Deficit Note 1 Statistics
1
The accounts presented above are required to be presented separately for Ministry of Education purposes to support the funding provided. There is no reflection of the portion of occupancy costs or depreciation on buildings and equipment used by the childcare centre, which are included in the main accounts of the Polytechnic.
135
136
ANNUAL REPORT 2016
WELTEC
COMPULSORY STUDENT SERVICES LEVY The compulsory student services fee charged by WelTec per domestic and international Equivalent Full Time Student in 2016 was $220 GST inclusive. This fee increased for 2016 having remained unchanged since 2013. The following statement of income and expenditure reflects the activity WelTec in consultation and partnership with student representatives has completed in 2016 utilising in part funding provided by Student Services Fees:
Advocacy & legal advice $000
Careers information $000
Counselling services & pastoral care $000
Employment information $000
Financial support & advice $000
Media $000
Sports, recreation & cultural activities $000
Total $000
Group and Parent 2016 Income
20
66
331
99
13
25
73
626
2016 Expenditure
20
66
332
100
13
25
73
629
Contribution
-
-
(2)
(1)
-
-
-
(4)
2015 Income
5
68
266
67
11
11
22
450
2015 Expenditure
5
61
238
60
10
10
20
404
Contribution
-
7
28
7
1
1
2
46
Advocacy and legal advice: In earlier years, expenditure in this account reflected the support provided by WelTec to the WelTec Students' Association following the abolition of the compulsory Students' Association fee. Once the Students Association was disestablished in 2015-2016, WelTec pursued a contract with the New Zealand Union of Students Associations (NZUSA) to provide independent advocacy and support, and this was in place during 2016. NZUSA provided training for student groups in dealing with concerns and complaints
Careers information, advace and guidance: In 2016, the Enrolment team provided entry-level career advice, and Job Brokers assisted with appropriate job placements and internships. Learning Commons staff provided CV and interview workshops throughout the year while an investigative report was prepared for the Chief Executive on future directions for career development and higher level careers advice, and the types of appointments which would meet student needs.
Counselling services, pastoral care & health services: Vitae Counselling continued to provide independent, confidential support both on and off campus to students through an annually-reviewed contract. They also provide supervision for WelTec mentors to ensure appropriate and safe responses to student issues. Health services were provided by off-campus referrals as proposals to set up a Health Centre were explored. Pastoral support was provided for students by mentors in the Learning Commons, Tamaiti Whangai and Pasifika teams who were responsible for 1-1 appointments, in-class, after hours and off-campus support, facilitating financial assistance and providing advice and welfare services.
Employment Information: Job Brokerage, supporting students into post-study employment, was provided by the institution. The Learning Commons provides interview and CV information in hard and e-copy, and opportunities for interview practice. Student Job Search provided short-term employment opportunities with the contract for SJS taken over by the Learning Commons with the disestablishment of the Students Association
WELTEC AND WHITIREIA
Financial support and advice: The Student Financial Advisor worked on a 1-1 basis with students offering StudyLink and RealMe assistance, as well as budgeting information and advice, following budgeting training. Students are offered emergency financial assistance in hardship situations, including emergency accommodation and health-related care, as appropriate. A Justice of the Peace is also available on campus.
Media: All student-led events were supported by Marketing and the Learning Commons in creating posters and other student communications. The student Facebook page was administered and supported by the Student Liaison Coordinator prior to being handed to the Student Council.
Sports, recreation & cultural activities: Orientation at the beginning of each trimester is an important event, attended by over 1000 students. The Student Liaison and Events Coordinator ensures that activities are run throughout the year in many areas, such as sporting events (badminton, cricket, rugby etc), events (e.g. Amazing Race, Earth Day, Mental Health Awareness) language weeks (Te Wiki o Te Reo MÄ ori, Samoan etc), international cultural celebrations (e.g. Chinese language week, Diwali). Supporting the Student Voice Representatives and the Student Council meant that students are able to have student-led and directed activities which are in tune with student needs and requests.
137
138
ANNUAL REPORT 2016
WHITIREIA
COMPULSORY STUDENT SERVICES LEVY In 2016 the domestic student services levy for the Whitireia group, including the Polytechnic's subsidiary Whitireia NZ Ltd, was $220 per EFTS (2015: $190).
Refer to the Equal Educational Opportunities section of the annual report for details on the services provided to students and consultation with students.
For international students the student services levy is included in the tuition fee. No fee is charged to students enrolled in Youth Guarantee and level 1-2 programmes in accordance with TEC funding rules.
Income and expenditure for these services is separately accounted for by Whitireia.
Advocacy & legal advice $000
All figures below include GST.
Careers information advice & guidence $000
Counselling services $000
Financial support & advice $000
Health services $000
Sports, recreation & cultural activities $000
2016 Total
2015 Total
Group and Parent Compulsory student services fees
30,818
96,856
66,038
35,220
105,661
105,661
440,256
382,314
International
16,449
51,698
35,249
18,799
56,398
56,398
234,991
228,164
19,786
19,786
Other
19,786
Total revenue
47,267
148,554
101,287
54,020
181,845
162,059
695,032
630,264
Expenses
72,847
192,410
148,352
72,308
151,143
114,723
751,782
658,081
Total expenses
72,847
192,410
148,352
72,308
151,143
114,723
751,782
658,081
(25,579)
(43,855)
(47,065)
(18,289)
30,702
47,337
(56,750)
(27,817)
Surplus (deficit)
WELTEC AND WHITIREIA
139
140
ANNUAL REPORT 2016
WELTEC AND WHITIREIA
Independent Auditor's report WelTec 142 Whitireia 146
141
142
ANNUAL REPORT 2016
WELTEC
WELTEC AND WHITIREIA
WELTEC
143
144
ANNUAL REPORT 2016
WELTEC
WELTEC AND WHITIREIA
145
146
ANNUAL REPORT 2016
WHITIREIA
WELTEC AND WHITIREIA
WHITIREIA
147
148
ANNUAL REPORT 2016
WHITIREIA
WELTEC AND WHITIREIA
149
150
ANNUAL REPORT 2016
ACRONYMS ACE
Adult and Community Education
MBA
Master of Business Administration
ANZ
ANZ Bank New Zealand Limited
AR
Augmented Reality
MBIE
Ministry of Business Innovation and Employment
BCITO
Building & Construction Industry Training Organisation
MoU
Memorandum of Understanding
MPTT
MÄ ori and Pasifika Trades Training
BERL
Business and Economic Research Limited
BPS
Basis Points (in relation to interest)
NCALNE
National Certificate in Adult Literacy and Numeracy Education
CCDHB
Capital and Coast District Health Board
CE
Chief Executive
CEO
Chief Executive Officer
CGU
Cash generating unit
GPS
Global positioning system
DEU
Dedicated education unit
DHB
District Health Board
E2E
Engineering to Employment
EEdO
Equal Education Opportunities
EEO
Equal Employment Opportunities
EFTS
Equivalent Full-Time Student
EPIs
Educational Performance Indicators
FTE
Full-Time Equivalent
GDP
Gross Domestic Product
GST
Goods and Services Tax
H&S
Health and Safety
HR
Human Resources
ICT
Information and Communications Technology
IFRS
International Financial Reporting Standards
IOD
Institute of Directors
IPSAS
International Public Sector Accounting Standards
IS
Information Systems
IT
Information Technology
ITO
Industry Training Organisation
ITP
Institutes of Technology and Polytechnics
JLT
Joint leadership Team
LCBNZI
Le Cordon Bleu New Zealand Institute
LLN
Language Literacy and Numeracy
NCEA National Certificate of Educational Achievement NGO
Non-Governmental Organisation
NSN
National Student Number
NZGAAP
New Zealand Generally Accepted Accounting Practice
NZIFRS
New Zealand International Financial Reporting Standards
NZQA
New Zealand Qualifications Authority
NZQF
National Qualifications Framework
PBE
Public Benefit Entity
PBRF
Performance-Based Research Fund
PD
Professional Development
R&D
Research and Development
ROMS
Research Management System
SAC
Student Achievement Component
SDN
Software Defined Networking
SPA
Student Paramedics Australasia
STAR
Secondary/Tertiary Alignment Resources
STEMM
Science, Technology, Engineering, Maths and Manufacturing
TEC
Tertiary Education Commission
UCOL
Universal College of Learning
VUW
Victoria University of Wellington
WelTec
Wellington Institute of Technology
WES
Work Environment Survey
WNZL
Whitireia New Zealand Limited
WREDA
Wellington Regional Economic Development Agency
WTA
Wellington Trades Academy
YG
Youth Guarantee
0800 935 832 info@weltec.ac.nz
0800 944 847 info@whitireia.ac.nz
www.weltec.ac.nz www.whitireia.ac.nz www.studentsfirst.ac.nz
ANNUAL REPORT
16
WelTec
Whitireia
Twenty Sixteen
WELTEC AND WHITIREIA
16
ANNUAL REPORT WelTec
Whitireia
Twenty Sixteen
154