ANNUAL REPORT 2011

create your world www.wintec.ac.nz 2 WINTEC ANNUAL REPORT 2011 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

OVERVIEW OF WINTEC 05

STRATEGIC DIRECTION 08 EQUAL OPPORTUNITIES CHAIR’s & chief executive’s REPORT 09 mEMBERS OF COUNCIL 15 HIGHLIGHTS 16 CONTENTS EQUAL OPPORTUNITIES 23 FINANCIAL PERFORMANCE 25 – statement of responsibilIty 26

– audit report 27 FINANCIAL PERFORMANCE STATEMENT OF SERVICE PERFORMANCE 76 ACKNOWLEDGEMENTS 86

Access this report online VIA YOUR MOBILE DEVICE OR www.wintec.ac.nz

Wintec Private Bag 3086, Waikato Mail Centre, Hamilton 3240 Phone 07 834 8800, www.wintec.ac.nz SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011

3 to build a stronger community through education, research & OUR MISSION career development. Ma¯ te ma¯tauranga, te rangahau, me te whai mahi e ora ai te iwi. WINTEC ANNUAL REPORT 2011 4 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS EQUAL OPPORTUNITIES FINANCIAL PERFORMANCE SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011 5 86 YEARS OF INNOVATION AND GROWTH GROWTH

1990s Following Government tertiary reforms, the institute becomes 1968 a body corporate with a Chief Name changes to Waikato Executive and Council. 1994 Technical Institute, with a 1987 A range of degrees in nursing, Innovative wide range of programmes Name changes to The midwifery, business, sport and Artechmobile is built in engineering, science, Waikato Polytechnic exercise science, information and hits the road accountancy, business to reflect the widening technology and media arts to provide mobile management and scope of our educational are developed in response to computer education to building trades. activities. changing employment needs. regional communities.

1924 1985 1990 1992 1995 Hamilton Technical Horticulture teaching Satellite campuses First degree Land is purchased College is founded to begins at Hamilton opened in Te Kuiti (Bachelor of on Avalon Drive to provide technical and Gardens. and Thames. Business) establish a campus trades training in the is offered. with ample space Waikato region. for trades, sports and hospitality training. WINTEC ANNUAL REPORT 2011 6 OVERVIEW OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS EQUAL OPPORTUNITIES

2009 Wintec wins three national tertiary education awards for its global role (particularly its partnerships in China), innovative support services (for its creative industries business incubator SODA Inc.) FINANCIAL PERFORMANCE and relevant learning (for its employer partnership groups).

Wintec receives Government 2011 funding to develop an Wintec Alumni Circle formed. agritechnology educational centre in Waikato, in Our Avalon campus in the 2000 partnership with north of Hamilton is renamed First postgraduate world-renowned AgResearch, Rotokauri campus. The name qualification is offered 2003 AgITO, Innovation Waikato change reflects the changing (Postgraduate Diploma Wintec opens and the Coalition of 21st configuration and growth of SERVICE PERFORMANCE in Nursing). Beijing office. Century Schools. the campus.

2001 2007 2010 Name changes to Award-winning Gallagher Wintec opens a hub at its the Waikato Institute Hub opens and is swiftly Avalon campus and this quickly of Technology and two adopted by students as becomes a central studying and years later, the Wintec their space for studying social space for students, staff brand is adopted. and recreation. and visitors.

Wintec House, the historical corner brick building on the city campus is re-opened after a $17 million refurbishment.

Wintec House boasts WINTEC ANNUAL REPORT 2011 educational facilities, quality events spaces and a business hub, opening up Wintec to the heart of Hamilton’s CBD.

7 Wintec has eight strategic approaches Quality, academic relevance and innovation Project Connect - driving the changes which promote a ‘whole of organisation’ Our aim is to drive a culture which Wintec is a complex organisation, view of quality and innovation while is strongly focused on continuous and we have ambitious objectives. increasing our visibility and role as a improvement and innovation in order A great deal of organisational change tertiary education provider. to achieve national and international is required to achieve them. To succeed recognition of the quality of our graduates, we will continue to use the project These strategic approaches guide our educational products, and related services. management concepts and disciplines direction and decision making. developed through Project Connect, our Research, development, transfer (RDT) integrated change programme which Employer and community engagement and commercialisation began in 2003. Our aim is to have effective engagement Our aim is to promote a strong alignment with employers, industry and communities, between our applied research activity This is a mechanism for translating our which is central to ensuring that our and the needs of industry for practical strategic direction into practice. Using a provision of education and services is driven solutions to their ‘real-world’ problems. project management methodology, our by the needs of employers and the region. We intend to drive productivity and change programme is as much about how development, and achieve greater we work together as it is about what we are

STRATEGIC DIRECTION Flexible learning technology transfer between ourselves working on. Our aim is to have flexibility for student and industry. learning, using a range of delivery options. Project Connect comprises some We will increasingly adopt new learning Student participation, outcomes and 25 projects and 60 work streams. technologies to enhance the effectiveness, Ma¯ori achievement These are organised around our major and the students’ experience, of study. Our aim is to produce graduates who are change areas: quality improvement This increased flexibility will also be a employer-preferred and work-ready. and innovation; flexible learning; major contributor to our goal of meeting We are committed to ensuring high organisational capability; building employer requirements for flexible, levels of participation, engagement and relationships and connections; increasing on-and-off job training opportunities. educational success for all student groups applied research and development; with a particular emphasis on raising diversifying commercialisation activity; Internationalisation Ma¯ori achievement. and embedding internationalisation. Our aim is to ensure we are a key part of New Zealand’s globally-connected Tertiary sector collaboration The projects ensure that we bring the education system, and further strengthen Our aim is to develop relationships right people together from across the our capability in export education. within the tertiary sector to improve organisation with the resources required outcomes, create efficiencies, and to implement the changes we seek. The Organisational capability improve performance. disciplines of good project management and modernisation ensure projects are delivered on time, Our aim is to be recognised as an efficient, on budget, and with the appropriate effective, and modern organisation with risk management, quality management, a high-performing workforce, advanced communication and coordination in place. infrastructure, and business processes and facilities appropriate to a leading institute of technology. WINTEC ANNUAL REPORT 2011 8 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS EQUAL OPPORTUNITIES FINANCIAL PERFORMANCE SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011 9 Message from Gordon Chesterman

2011 was my last full year as Chair of Wintec, with my resignation taking effect from 30 April 2012.

I started on the Wintec Council in 2000, and became Chair in 2002. During this time I’ve had the pleasure of initiating and implementing a number of significant projects with success, through good project management at an operational level, as well as robust scrutiny at the governance level. These projects have been managed on-time and on-budget thanks to the professionalism of the Chief Executive and staff.

I’ve seen Wintec through a period of rapid growth and a $54 million campus modernisation programme. The Gallagher Hub, Wintec House, the Avalon (now Rotokauri) Hub, are just some of the significant buildings which have re-shaped the look and feel of Wintec’s campuses. These have positively changed the environment for students, staff and business people in the region.

I’d like to thank the current and former council members I have worked with over the years. It has been a privilege to work beside many talented professionals from a variety of backgrounds. Being exposed to the range of skills and expertise around the council table has been extremely satisfying and reinforces my belief that a mixture of skills is a must in any governing body.

Wintec is a positive place with a lot of hard working and visionary people working together to continually improve the organisation. I have worked closely with the Chief Executive Mark Flowers over this time and have enjoyed a rewarding professional relationship with him and his executive team.

I like nothing better than to walk around the campuses feeling the buzz and enthusiasm from students, seeing them enjoying facilities like the Gallagher Hub, interacting with students of all nationalities, and watching staff being customer-focused and pleasant.

Education is a great environment which, with the right focus and attention, can change people’s lives for the better. I will miss Wintec. I am sure its future is a good one. There are still many ambitious projects in the pipeline but with the combination of sound governance and management, it will go from strength to strength.

All the best.

Gordon Chesterman WINTEC ANNUAL REPORT 2011 10 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

In 2011 we gained traction with a number monitoring agency, the Tertiary Education While these statistics are amongst the best of initiatives, enabling us to achieve Commission (TEC). in the sector, we intend to further improve our goals and remain at the forefront of Ma¯ori achievement. We have appointed EQUAL OPPORTUNITIES vocational education in New Zealand. We received an improved risk assessment a Ma¯ori achievement manager; our new, in 2010 from TEC. Our low risk rating modern city campus marae will open in early Our academic performance and quality confirms that we have the capability to 2012; and we have started a review of our of delivery continued to improve, and we govern and manage well during a period Ma¯ori Achievement strategy. pushed on with our change programme, of intensive capital development. This is Project Connect. We continued to invest pleasing as we embark on more change and All of this growth has been managed within in better infrastructure to modernise our modernisation in our organisation. the overall cap agreed with the Tertiary campuses and connect them to our city and Education Commission. We haven’t had to

region, and for the fourth consecutive year Our students turn students away, and we’ve increased FINANCIAL PERFORMANCE posted an improved financial result. provision within the region. We are proud We had close to 6800 equivalent full-time to deliver greater benefits to the region students in 2011. Five years ago Wintec was $0.5m in deficit and its economy within existing funding. and struggling. This year we have a We’ve grown our mainstream provision $4.2m surplus. Connecting with youth by 6% compared to 2010. Since 2007 our total growth in mainstream provision has Part of our strategy is to attract This is after refurbishing and investing in increased by 38%. While the economic young people into tertiary education. buildings, facilities and new technology; climate contributed to the rise, so too has Partnerships between secondary and committing ourselves to more our growing reputation and presence in tertiary education providers will become

sophisticated teaching methods; engaging SERVICE PERFORMANCE the region. more commonplace, and we have a number more with our community and industry of initiatives in this area. partners; and increasing our domestic and At the same time we’ve also moved more international student numbers. provision to higher levels of study (level 4 We launched the Waikato Trades

and above). Nearly 81% of our TEC-funded Academy, a partnership between Wintec It is important to reflect on where an students engage in higher levels of study. and secondary schools. This initiative organisation has come from. It gives encourages students to stay longer at context to the current status, and shows CHAIR’S & CHIEF EXECUTIVE’S REPORT & CHIEF EXECUTIVE’S CHAIR’S Building the numbers of students at school by engaging them in hands-on that the journey Wintec is on is a positive higher qualification levels benefits our learning. Forty-eight year 11-13 students one. We celebrate this year’s highlights region and its people. We are now offering combined practical, tertiary-based study, and performance, and we believe we are in 10 degree programmes, eight degree- with studies towards their National a good position to continue to perform well level programmes (graduate diplomas Certificate of Educational Achievement in the future. and certificates), and eight post-graduate (NCEA) and a national trades qualification qualifications. in Electrical Engineering, Automotive or Sound financial performance Mechanical Engineering (See page 19 for WINTEC ANNUAL REPORT 2011 Improved enrolments and greater It is pleasing to see positive improvements more details). efficiency resulted in a surplus of $4.2 in Ma¯ori student achievement and nearly a million (5%) before abnormal items such quarter of our students are Ma¯ori. Around It is one of nine such academies as land sales and adjustments to some 75% are studying at level 4 and above and throughout New Zealand. We plan to of our asset valuations. The surplus is their rate of successful completion of expand the Academy to involve more $3.4 million after these items, which is courses increased to 70% in 2011, a 3% schools in 2012. 4.2% and over the 3% threshold set by our increase from 2009.

11 12 WINTEC ANNUAL REPORT 2011

CHAIR’S & CHIEF EXECUTIVE’S REPORT postgraduate levels toWintec. sending studentsat undergraduateand partnership expanded, withtheuniversity more partners.OurChengduUniversity Guangdong-based clusterinChinagaining in ourestablishedmarkets,withthe We continuedtodeveloprelationships University (Japan). Chengdu University(China)andShimane groups visitedus,includingregularvisitors A record50internationaldelegation international EFTS. students nowrepresentabout10%ofour a marketvalueofjustunder$1m.Saudi equivalent full-timestudents(EFTS),with past twoyears,whichresultedin60new work undertakeninSaudiArabiaoverthe Of particularnotewasthedevelopment research activities. markets andmorecommercial numbers, expansionintonewoverseas an increaseininternationalstudent number ofinternationaldelegationvisits, showed dividendsthisyearwitharecord Our commitmenttointernationalisation More globalconnections our YouthGuaranteescheme. administration andhairdressingthrough year-olds intrades,hospitality,business We alsoofferedfreetrainingfor 16and17 staff atitsTeRapacampus. Ma¯ori aspectsareundertakenbyTWoA campus, whilepastoralcareandkaupapa provision isundertakenatourRotokauri no successatsecondaryschool.Thetrades programme aimedatstudentswithlittleor continues toexpand.Itisafee-free Te WanangaoAotearoa(TWoA)andTainui Our Ma¯ori TradesTraining initiativewith government priorities. excellent picture of delivery inlinewith remains high.Together, these paint an education deliveredtounder-25s while atthesametimeproportion of growth inourlevel4andaboveprovision, Most importantlywehavecontinued overall quality. maintained astrongpositionandimproved The draftEPIresultsfor2011showwehave indicators. Seepage78formoredetails. the medianforoursectoracrossallfour institutes oftechnologytorateabove pleasing, andwewereoneofonlytwo in keyareas.Ourresultsfor2010were how tertiaryorganisationsareperforming designed togiveanannualsnapshotof Performance Indicators(EPIs),are The government’sEducational QUALITY OUTCOMES students, staff,andourwidercommunity. This diversitybringsarangeofbenefitsto increasingly multiculturalstudentbody. our regionaleconomy,sotooishavingan is importanttoourbottomlineand While the revenue these students generate education market. numbers by10%inacompetitiveexport We increasedinternationalstudent pending IndianFreeTradeAgreement. future developmentsalignedtothe time; andwelookforwardtopositive number ofIndianinstitutionsforthefirst Research linkswerealsosetupwitha Korea, SaudiArabia,ThailandandMalaysia. packages contractedtogroupsinJapan, We continuedwith“trainthetrainer” the community. interact witheachother,studentsand the behavioursofstaffandhowthey organisational values,whichinfluence We alsocontinuedtoemphasisour employers andstudents. more flexibility to meet the needs of our conditions for academic staff and create settlement willmoderniseterms and consistency across the sector.The negotiation process and there is increased between anumberofITPsduringthe For thefirsttimetherewasalignment academic staff. The TEUrepresentsjustunderhalfofour During theyearasettlementwasagreed. Union (TEU)requiredmodernising. staff belongingtotheTertiaryEducation terms andconditionsforouracademic For someyearsithasbeenclearthatthe staff time. sector, includingappropriateuseofsenior duties whicharemorealignedwiththe achieved abettermixofacademicstaff provision. Overthelasttwoyearswe’ve securing moregrowthinmainstream academic staffratio,currently19:1,while our goalistomaintainstudent With regardtoacademicstaffproductivity, management skills. technology advances,andleadership to e-learningandflexibledelivery, staff. Theseincludednewapproaches boost thequalityandcapabilityofour development activitiesandprojectsto We continuedtoinvestinarangeof Our staff OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

A more modern outlook We are playing a part in revitalising Opportunities and innovation Hamilton’s CBD with facilities that interface

The long-term capital project to modernise While we made progress inside our EQUAL OPPORTUNITIES well with the city. our campuses and technology continued. organisation, Wintec continued to be actively involved with a number of This year our refurbished heritage building We completed the multi-storey city campus external activities. Wintec House won a number of regional car park building, started refurbishments and national awards for its design, on many teaching spaces, completed We are a 60:40 shareholder with the construction and functional options. construction of our new marae, and Hamilton City Council in SODA Inc., relocated our childcare centre. Planning for a creative industries business incubator. In its first full year of operation Wintec the Trades and Engineering development Working with others, such as the city House hosted many community, business project and the future designs for the council, to build the economy and and Wintec events including awards FINANCIAL PERFORMANCE Rotokauri campus also got under way. create jobs is one of our roles as a dinners and conferences. Its event space, tertiary institution. the Atrium, is quickly becoming a flagship We started to roll-out our Information venue in Hamilton and the region, with Communications Technology (ICT) strategy. In 2011 SODA Inc., increased its clientele, thousands of people coming onto our city This included moving our physical network and secured more corporate partners. New campus for a variety of events. of computer servers to a cloud-computing Zealand Trade and Enterprise contracted service provider. The result of this is to SODA for incubator development services We continue to enjoy close links with free-up our resources to put more focus on in the region for 2011 and 2012. This is the Waikato Chamber of Commerce and our IT applications and technologies that testament to its growing reputation. the city’s economic development agency enhance teaching and learning.

Opportunity Hamilton, who are based SERVICE PERFORMANCE Our involvement means we can at our business hub on the third floor of We accelerated our on-campus wireless ultimately increase the employment Wintec House. programme and PC modernisation opportunities for our own graduates, approach. Internet speed for students and while also working towards the city’s vision We have also seen improvement in our staff was increased and the Gallagher Hub for more business growth. capital asset management programme. was refitted with new computers, including Since we began the modernisation touch screen options. We continued to work closely with our programme we have reduced our deferred partner Prima Group, a commercial entity maintenance management liability from A revamped staff intranet was also launched owned by the Wintec Foundation. Prima $11.7m to $6.2m. Continuation of our to provide more ability to share information Group commercialises Wintec “know current work programme will see us and to improve communication channels. how” and develops tailor-made training achieving a deferred maintenance liability solutions for industry. Interest in its short below $2m by the end of 2013. We are The overall aim of our capital modernisation courses for work-readiness training and pleased to have one of the lowest liabilities programme, which started in 2003, is personal development programmes grew in this area in the sector. to ensure we are providing an excellent in 2011. WINTEC ANNUAL REPORT 2011 standard of facilities for students, staff and the community for many years to come. This is realised through Wintec House’s venues, teaching spaces, and its business hub, through the city and Rotokauri campus hubs; all of which continue to be well- utilised and commended by its users.

13 14 WINTEC ANNUAL REPORT 2011

CHAIR’S & CHIEF EXECUTIVE’S REPORT communities wework with. matter totheindustries, professionsand solve problemsoranswerquestions that focus onresearchwhichcandevelop ideas, details onpage20).We’veputmuch more the researchvoucherscheme.(Seemore through ourresearchinitiatives,including industry andcommunityorganisations We’ve alsoconnectedwithanumberof help strengthen the economy of the region. region, allwiththeaimtoensurewecan demand fortertiaryeducationinthe under waytoassesscurrentandfuture Waikato andtheHamiltonCityCouncilis A jointprojectwiththeUniversityof programmes intheWaikato. with BOPPdeliveringsomeoftheir delivered midwiferycoursesinTauranga, At BayofPlentyPolytechnic(BOPP),we Manukau InstituteofTechnology. of Technology(NMIT),andsoontobeat (WITT) andNelsonMarlboroughInstitute Western InstituteofTechnologyatTaranaki Technology, whichisbeingdeliveredatthe developed withWaiarikiInstituteof of AppliedSocialScienceprogramme, strategy. ExamplesincludeourBachelor government’s tertiarysectorcollaboration range ofprojectswhichcontributetothe Technology andPolytechnics(ITPs)ona We alsoworkwithallInstitutesof the nationaleconomy. internationalisation andtheroleofITPsin research anddevelopment,productivity, strengthened withajointfocuson institutes oftechnology,wasfurther between NewZealand’ssixlargest Our roleintheMetrosgroup,apartnership opportunities Building relationshipsand the Council. for herexcellentadministrationsupportto We’d alsoliketothankMargotCarthy Wintec experiencewithourstakeholders. groups tothesedinnerssharethe We invitemanydifferentcommunity economic developmentorganisations. representatives fromlocalandregional restaurant Windowsandguestsincluded programme heldatourstudenttraining We continuedwithour“Councildinner” regularly withourcommunity. many eventsandfunctionstoconnect success. OurCouncilmembersattend organisation continueonitsjourneyof We areallcommittedtoseeingthis experience wereretained. 2012, ensuringhisextensiveskillsand another threeyearseffectivefrom1May was reappointedbytheCouncilfor Council. InNovemberClintBaddeley added tothegreatmixofskillsonour by theMinister.Maxine’sstrongiwilinks Maxine Moana-Tuwhangaiwasappointed In September,charteredaccountant Our Council produce betterqualityresearchoutputs. board, andmadesystemimprovementsto time, gotmoreeffectiveresearcherson we’ve putmoreinvestmentintoresearch Transfer andCommercialisationstrategy As partofourResearch,Development together withyouallin2012. leading-edge. Welookforwardtoworking organisation, whichisinnovativeand Wintec whatitistoday,amodern,quality To allofyou,thankyouformaking members andourstudents. staff, ouremployerpartnershipgroup expertise, ofourCouncilmembers, immense rangeofskills,passionand Our successin2011isaresultofthe all ourstudents. of educationaloutcomesattainedby and technologyraisingthelevel including developingourcampuses modernisation andchangeprogramme We willcontinuetoinvestinour solid positionfor2012andbeyond. community areclear.Thisplacesusina and thebenefitstostudents through ourextensivechangeprogramme, We madesubstantialprogressin2011 Our sincerethanks Chief Executive MARK FLOWERS Chair Gordon Chesterman OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL

6 8 3 4 1 7 2 5 HIGHLIGHTS

APPOINTED BY: Current Term Ends

Members of Waikato 1 Gordon Chesterman Council Chair Minister for Tertiary Education 30/04/2012 EQUAL OPPORTUNITIES Institute of Technology 2 Clint Baddeley Chair – Building and Wintec Council 30/04/2015 Council as at 31 Assets Committee December 2011: 3 Mary Cave-Palmer Deputy Chair Minister for Tertiary Education 30/04/2012 Chair – Finance and Audit Committee

4 Bryce Cooper Wintec Council 30/04/2015 5 Maxine Moana-Tuwhangai Minister for Tertiary Education 29/09/2013

6 Aaron Rink Wintec Council 30/04/2014 FINANCIAL PERFORMANCE 7 Steve Tucker Minister for Tertiary Education 30/04/2014 8 Dianne Yates Wintec Council 30/04/2013

members of council Members who left the Rahui Papa Minister for Tertiary Education Council during the year:

Committees of Council and Committee Membership Finance and Audit Committee Functions include: ensuring that Wintec adopts sound

Executive Committee of Council SERVICE PERFORMANCE organisational and financial management practices; providing Functions include: acting on behalf of the Council on any urgent assurance regarding the quality of financial information, the matters that need addressing in between Council meetings. accounting policies adopted, and the financial statements This committee, minus the Chief Executive, will also oversee issued by Wintec; overseeing risk management and monitoring, the performance appraisal of the Chief Executive, the negotiation organisational policies, and reviewing the annual budget and of the Chief Executive’s remuneration package, and the budget implementation. re-negotiation of the Chief Executive’s contract.

Members are: Mary Cave-Palmer (Chair), Bryce Cooper Members are: Gordon Chesterman (Chair), Clint Baddeley, (Deputy Chair), Steve Tucker, Dianne Yates and Mark Flowers Mary Cave-Palmer, Mark Flowers (Chief Executive). (Chief Executive).

Building and Assets Committee Functions include: consideration of matters affecting capital development, maintenance, property acquisition and disposal, property insurance, building, governance of campus development project and asset management plans; as well as monitoring the WINTEC ANNUAL REPORT 2011 business plan and budget and asset purchases.

Members are: Clint Baddeley (Chair), Aaron Rink (Deputy Chair), Gordon Chesterman, Maxine Moana-Tuwhangai, Mark Flowers (Chief Executive).

15 16 WINTEC ANNUAL REPORT 2011 highlights the regionornation throughtheir a significantcontribution toWintec, Our honoraryrecipientsmusthavemade ceremony heldatWintecHouseinMay. the Waikatoregionandbeyondataspecial of Wintecforhisservicestoagriculture in Fonterra -wasmadeanHonoraryFellow vanderHeyden–Chairmanof Sir Henry graduation ceremony. and SchoolofScience&PrimaryIndustries Business, School of Information Technology for hisbusinessacumenatourSchoolof Holdings –wasmadeaFellowofWintec John Spencer–ChairofTainuiGroup Media Artsgraduationceremony. journalism andmediaatourSchoolof Master ofArtsforhercontributionto Waikato Times–receivedanhonorary Venetia Sherson–formereditorofthe conferred onthefollowing. Our 2011honoraryawardswerealso representatives. partnership groupmembers,andindustry and theirfamiliesaswellstaff,employer These eventswereattendedbystudents honoured ourtop-performingstudents. nine SpecialAwardseventswhich during GraduationWeek2011alongside Five graduationceremonieswereheld science, hospitalityandtrades. education, business,sportandexercise technology, languages,primaryindustries, such as the creative industries, information and centres, earned qualifications in fields 2011. The graduates, from 11 of our schools More than1600studentsgraduatedin Graduation Hoours connections from around theworld. government personnel, agents and research potential partners, established partners, study tours, visiting scholars, and visits from Delegations weremadeupofstudent South Africa. Saudi ArabiaandSouthernCapeCollege in Brisbane, JubailTechnicalInstitutein Southbank InstituteofTechnologyin Mahasarakham UniversityinThailand, in Korea,MalmoUniversitySweden, University, aswellKyungHeeUniversity Chengdu UniversityandShimane Delegations includedregularvisitors thehighestnumberrecorded. 50 internationaldelegationvisits, This yearWintechadmorethan Visitors aplenty Alumni Circle.www.winteccircle.ac.nz worked atWinteccanjointhe Anyone whohascompletedstudyor with classmatesandacademicstaff. in thebusinesscommunity,ortoreconnect on the network of Wintec alumni, to network more abouttheirindustry.Theycandraw build theirprofessionalnetworksandlearn the WintecFoundation,canhelpgraduates The WintecAlumniCircle,setupin2011by aim tohelpgraduatesstayintouch. Wintec launcheditsAlumniCirclewiththe Wintec Alum Expand yourCirclewitht Committee forreview. to theHonoraryDegreeNominations staff andcouncillorssendnominations innovation andsuccess.EachyearWintec student village. the CentreforIndustry Training,anda our trainingrestaurant,astudenthub, Exercise Science and CentreforHospitality, our SchoolofTrades, School of Sport and wetlands origins.Thecampusishome to to ‘lakeofkauri’andreflectsthearea’s Ma¯ori achievement.Rotokauritranslates heritage andreflectsourcommitmentto It’s Ma¯ori namerecognisesthearea’s configuration andgrowthofthiscampus. The namechangereflectedthechanging was renamed the Rotokauri campus. Our Avalon campus in the north of Hamilton New Name savvy institutiontosecondaryschools. and topromoteWintecasatechnology- with teachers,parents,whanauandpupils, Facebook referralsandsocialnetworking with theWaikatocommunity,through The aimistocreatestrongerconnections news storiesabouteventsintheseschools. secondary schoolsintheregiontorun It utilisesWintec’srelationshipswith with around 1500 page hits from 22 countries. week itexperiencedmorethan800visitors launched in April has been a success. In its first The website ( social mediaandinternettools. in theWaikatoregionandusinglatest online studentnewspapercoveringnews The SchoolofMediaArtscreatedadaily Online WbsiteforFutureJornalists and assist our international marketing efforts. education agents and overseas institutions The visitshelpforgerelationshipswith www.waikatoindependent.co.nz )

17 WINTEC ANNUAL REPORT 2011 2011 REPORT REPORT ANNUAL ANNUAL WINTEC WINTEC OVERVIEW CHAIR’S & CE’S REPORT CE’S & CHAIR’S SERVICE PERFORMANCE SERVICE PERFORMANCE FINANCIAL OPPORTUNITIES EQUAL HIGHLIGHTS COUNCIL OF MEMBERS Wintec a Finalist for Employer Award and interview workshops, advice on housing solutions for 400 families through online resources, helps students with construction, repairs and renovations, Wintec was a finalist in the ACC Employer job searching, runs careers events and is plus improvements to water and Award category of the 2011 New Zealand aligned with local recruitment agencies. sanitation, and skills training. Attitude Awards.

Wintec Extends its Educational Reach These visits, and our ongoing relationship The ACC Employer Award recognises an with the not-for-profit organsiation, help employer who provides outstanding An educational agreement between Wintec staff to be more globally connected and recruitment and retention opportunities and the Shiromani Gurdwara Parbandhak highlights aware. It fits with our commitment to for people with disabilities. Committee (SGPC) has enabled SGPC internationalisation and is one of the many students to complete their engineering, ways we recognise staff. This was the third First held in 2008 the Attitude Awards business studies and information such visit for staff, with previous trips to is an annual national event designed technology programmes at Wintec. India and Vietnam. to showcase the achievements of New Zealanders who live with disability. As well as being the statutory body of International Student of the Year elected Sikhs which represents more than Building for the future six million Sikhs world-wide, the SGPC Wintec social work student Kai Quan, from is also a charitable and humanitarian China, was named International Student of In May we opened our parking building on organisation that runs 36 institutions of the Year by Education New Zealand. the Hamilton city campus. The multi-storey higher education throughout India. building has 257 car parks and offers safe, Students can undertake their first two The inaugural competition highlights the covered parking. Its design includes an years of a Bachelor of Engineering contribution that international students attractive exterior to blend with its Technology (Civil) or Bachelor of Business make to the New Zealand cities and towns campus surroundings. Studies at an SGPC-run educational where they study, as well as to their fellow institution in India before coming to Wintec students. There were six winners in total Refurbishments on a number of teaching to complete their final two years of study. – one from each education sector and one spaces, construction of our new marae, The first SGPC students arrived at the end students’ choice award. Kai was named the planning for the new Trades and of 2011. winner for the Institutes of Technology and Engineering development, and future Polytechnics sector. designs for the Rotokauri campus also Habitat for Humanity Trip got under way. Wintec continued to work Kai, in her third-year studying for a with the city and the region’s sporting As part of our strategic partnership with Bachelor of Applied Social Sciences at bodies to try to establish a community Habitat for Humanity, Wintec sends staff Wintec in Hamilton, won the award for her indoor recreation centre located near the to an international building project every enthusiasm and participation in volunteer Rotokauri campus. two years. work both on and off campus.

Careers Support Service In semester one, 14 Wintec staff members Nominees were judged on their academic were a world away in Siem Reap, Cambodia. Wintec students now have access to a free achievements, their participation in The group made up Habitat for Humanity’s careers support service to assist them institutional and community activities, and New Zealand Global Village Team which with finding employment once they have how they have immersed themselves in built an ablution block in one of Siem completed their studies. New Zealand culture and experiences. Reap’s villages. The one-week build was part of Habitat’s Housing and Community The new careers support service offers Development Project which resulted in face-to-face support, curriculum vitae WINTEC ANNUAL REPORT 2011 18 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Bumper Issue Wintec House scoops awards Students get best of both worlds

Each year Wintec’s journalism, Just one year after it opened, Wintec House A government initiative saw Wintec EQUAL OPPORTUNITIES photography and graphic design students has won five prestigious architecture, partner with Waikato secondary schools create the Fieldays Exhibitor - a daily design and building awards. to encourage students to stay at school newspaper about New Zealand’s largest for longer by engaging them in hands-on agribusiness event. The renovated historical brick building on learning. Wintec’s city campus won the Heritage This is the eighth year that Wintec students and Adaptive Reuses and the Education The Waikato Trades Academy enables year created a daily record of the National and Arts award categories at the Property 11-13 students who are interested in a Agricultural Fieldays held at Mystery Creek, Council New Zealand Rider Levett Bucknall career in trades or technology to combine Hamilton, in June. Property Awards in June. practical tertiary-based study with studies FINANCIAL PERFORMANCE towards their National Certificate of This year the Fieldays Exhibitor surpassed In July it was awarded gold and named the Educational Achievement (NCEA). itself with the final edition for 2011 being overall winner for the Commercial Projects the largest ever. The students worked (Education) category at the Waikato During the first year of the Waikato Trades to strict deadlines, wrote more than 100 Registered Master Builders House of the Academy, students built a motorbike using stories and took hundreds of photographs Year Awards. scooter parts. The project-based teaching for the publication. This is one of the used gave the students automotive, largest student-based journalism projects In October it won the Heritage and Interior electrical and engineering skills and the in New Zealand. Design categories at the New Zealand relevant NCEA unit standards, while also Institute of Architects Waikato Bay of improving literacy and numeracy levels. Synergy between health and Plenty Architecture Awards. SERVICE PERFORMANCE social practice In 2011, the Waikato Trades Academy was Rugby World Cup Experience Priceless one of nine throughout New Zealand, Wintec’s new Centre for Health and Social and the only academy in the Waikato Practice was established in July. All of Wintec’s event management students region. With 48 year 11 students from 12 secured volunteer roles in Hamilton for Waikato secondary schools, the three-year The centre joins the School of Health and the Rugby World Cup 2011. The Graduate programme saw students join the trade School of Social Development, reflecting Diploma in Practical Event Management academy three times this year, for two the growing synergies and cross- students looked after VIPs, monitored weeks each time. disciplinary nature of these sectors. the fanzone at the Waikato Stadium, The centre delivers the current worked alongside media and helped Graduate band Avalanche City programmes of the two schools and is with accreditation. number one paving the way for creative future teaching, research and external Four of Wintec’s journalism students A Wintec graduate hit the big time in 2011 engagement opportunities. also participated. They were responsible with a number one on every music chart in WINTEC ANNUAL REPORT 2011 for sourcing and relaying player quotes New Zealand. New programmes delivered by the centre to international media for all the games include the Diploma in Enrolled Nursing, the played at Waikato Stadium. Media Arts graduate Dave Baxter is the Postgraduate Diploma in Health and Social founding member of New Zealand folk Practice, Postgraduate Certificate in Health Wintec was also involved in training band Avalanche City, whose debut single and Social Practice and Postgraduate hospitality staff to work at Rugby World Love, Love, Love went to number one in May Certificate in Professional Supervision. Cup events for Montana Catering – Waikato and won the APRA Silver Scroll songwriting Stadium’s catering provider. award in September.

19 Love, Love, Love is the fastest selling single The venues are hired out for events such Student Village at Rotokauri to by a Kiwi musician since digital music sales as business conferences and meetings, research sustainable living were first recorded. corporate functions, exhibitions, glittering In March the student village at the gala dinners, school balls and award Rotokauri campus opened its doors. Hare Puke Scholarship ceremonies. Our staff, students and The village provides short-term stakeholders also utilise the spaces. Peter Maulder, an academic staff member accommodation for our Mighty River Power The venues’ popularity and wide audience in our School of Sport and Exercise students, as well as doubling as a facility to appeal has helped raise Wintec’s profile Science, was awarded the Hare Puke Ma¯ori research sustainable living. highlights within the region, as well as helping us Leadership Scholarship in 2011. connect further with our community and The village is a real-world research industry partners. The staff scholarship recognises and environment where people live in houses honours Kauma¯tua Dr Hare Puke and the that are monitored for sustainable Community Living Trust contribution he made to Wintec, Hamilton practices. The aim is to further develop this and the wider community. The goal is to Our strategic partner Community Living as a research facility that enables Wintec enable Ma¯ori staff to gain leadership and Trust provides support for people with and our industry partners to undertake management skills. intellectual disabilities so they, and testing and evaluation on sustainable their families, can lead quality lives living in domestic settings. Peter, who is of Nga¯ti Kahungunu, Nga¯ti in the community. Pa¯hauwera descent, has been with The houses were built to reflect Wintec since 2008. His aim is to focus on The relationship enables Wintec to different standards of building design developing as a senior leader, encouraging engage with our community and gives and technology. These will be fitted with and motivating people towards a common staff and students the chance to work additional sustainable designs and goal, and becoming an international leader with disadvantaged people. Through technologies in 2012. in his field of sport and exercise science. these opportunities, students gain real-life experience. Our Mighty River Power students complete The scholarship has a value of up to their apprenticeship programme at Wintec $15,000 per year and one additional week In 2011 Wintec’s built environment over three years and live in the student of professional development leave. students were tasked with designing a village for 18-20 weeks each year. small dwelling (70m2) to meet the physical Wintec Venues a Popular Choice and intellectual needs of Community Living Meanwhile our industry research voucher Trust clients. The winning student design scheme is proving popular. In 2011, 25 Wintec’s venues have gone from strength met building standards, was affordable, organisations took up the opportunity to to strength since the opening of Wintec aesthetically pleasing, energy efficient have Wintec undertake research for the House late in 2010. and future-proofed. The building based benefit of their businesses. These public, on this design will be constructed at our private and not-for-profit organisations Thousands of guests from local and Rotokauri campus and be transported to worked with our staff and students on a national organisations, community the site in 2012. range of research topics with the aim of groups and Wintec have enjoyed the solving a problem, answering a question or event facilities on the Wintec city campus In another joint project, horticulture developing an idea they have. whether it be the Atrium or the Long Room students designed a garden at one of in Wintec House, or the stylish event rooms Community Living Trust’s residential homes. If you are interested in taking part in the in the Bill Gallagher Centre. research voucher scheme please contact us at [email protected]. WINTEC ANNUAL REPORT 2011 20 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

In 2011 Wintec’s headcount of students (not EFTS) was 19,652, with 18,647 domestic students and 1,005 international students. EQUAL OPPORTUNITIES

Total Equivalent Full Time Students (EFTS) by Source of Funding

2007 2008 2009 2010 2011

Adult and Community Education 198 205 182 203 105 Student Achievement Component 4,502 4,898 4,818 4,918 4,945

Youth Guarantee & Trades Academy - - - 59 112 FINANCIAL PERFORMANCE Total TEC-funded 4,700 5,103 5,000 5,181 5,162

International 397 489 546 555 608 STUDENT STATISTICS Industry Training Organisation 906 1,019 904 860 781 Other 162 202 192 206 235 Total non TEC-funded 1,464 1,711 1,642 1,621 1,623

TOTAL EFTS 6,164 6,814 6,643 6,802 6,786 SERVICE PERFORMANCE

TEC Funded* EFTS by Level of Study

100% 81% 80% 61% 60% 39% 40% 19% 20%

0% WINTEC ANNUAL REPORT 2011 2007 2008 2009 2010 2011 Level 1-3 Level 4+

*Student Achievement Component, Youth Guarantee & Trades Academy

21 TEC Funded* Equivalent Full Time Students (EFTS) by Ethnicity

2007 2008 2009 2010 2011

European 2,478 (55%) 2,708 (55%) 2,888 (60%) 2,914 (59%) 2,941 (58%) Ma¯ori 904 (20%) 1,128 (23%) 1,172 (24%) 1,184 (24%) 1,216 (24%) Asian 509 (11%) 506 (10%) 311 (6%) 381 (8%) 378 (7%) Pasifika 179 (4%) 172 (4%) 148 (3%) 199 (4%) 214 (4%) Other 431 (10%) 384 (8%) 299 (6%) 300 (6%) 308 (6%) Total 4,502 4,898 4,818 4,978 5,057 *Student Achievement Component, Youth Guarantee & Trades Academy. Percentage figures have been rounded, therefore some columns may not add up to 100%.

International Equivalent Full Time Students (EFTS) by Country

2007 2008 2009 2010 2011

China 252 272 312 297 308 India 60 147 154 154 125 Saudi Arabia 0 1 7 8 64 Fiji 8 7 12 18 24 South Korea 23 17 15 18 19 Taiwan 6 5 4 9 8 Philippines 3 3 5 8 8 Vietnam 3 3 5 5 6 Russia 1 1 0 0 5 Nepal - 1 1 3 5 Malaysia 3 3 2 4 5 Other 36 29 29 31 30 Total 397 489 546 555 608 WINTEC ANNUAL REPORT 2011 22 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS EQUAL OPPORTUNITIES FINANCIAL PERFORMANCE SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011 23 Wintec continues to maintain a focus on develop employees on the basis of merit, They also provided academic learning the review and improvement of our Equal recognising that effectively managing support to more than 2100 students in Employment Opportunities (EEO) and New Zealand’s diverse population can 2011, representing a 15 per cent increase Equal Education Opportunities (EEDO) lead to increased creativity, engagement from 2010. Services included workshops, activities and performance. and productivity. writing and study skills courses, peer tutoring, one-on-one learning support, Equal Employment Opportunities ETHNICITY OF EMPLOYEES - 2011 and learning consultations to identify individual learning needs. Wintec’s Equal Employment Opportunity Ethnicity % Number Female Male policy states our committment to giving all NZ European/ 48.5% 390 241 149 Targeted support was offered to Ma¯ori potential employees equal opportunities Pakeha and Pasifika students, as well as many in relation to working at Wintec. Our EEO Other 12.7% 102 58 44 international and New Zealand resident programme supports our commitment European students for whom English is not their to redressing underrepresentation and NZ Ma¯ori 9.6% 77 54 23 first language. issues of particular groups; in particular Other 3.0% 24 14 10 women, Ma¯ori, Pasifika, other ethnic South African 2.6% 21 9 12 Te Kete Ko¯nae, our Ma¯ori and Pasifika minorities, people with disabilities and support centre, continued to provide older age groups. Indian 2.4% 19 8 11 EQUAL OPPORTUNITIES support based on whanaungatanga, Chinese 2.1% 17 8 9 inclusiveness and sharing. Services In 2011 our EEO vision was progressed Pasifika 1.1% 9 5 4 included academic and learning through: Other Asian 1.0% 8 3 5 support, pastoral care, cultural support, counselling, marketing and recruitment • An ongoing commitment to supported No data 17.0% 137 79 58 activities and information and advice employment for people with disabilities. provided related to studying at Wintec. Our staff and Wintec was a finalist in the ACC Employer * New categories of South African and Pasifika have been added this year, and a more accurate grouping of students also participated in a number of Award category of the 2011 New Zealand ‘other’ and ‘other European’ has seen a shift in each of Ma¯ori and Pasifika community events. Attitude Awards. The ACC Employer Award these numbers from previous years. recognises employers who provide Equal Education Opportunities Our Values outstanding recruitment and retention opportunities for people with disabilities. Wintec’s Student Learning Services helps Our values describe how we want to do deliver quality student-centred learning things at Wintec; the sort of organisation • Continuing our participation in the and disability support services. we want to be. Mainstream Employment programme, whereby we work with community agencies Student Learning Services continued to Our staff try to live the values every day to facilitate employment at Wintec for offer a high-level of advocacy, information and we formally recognise staff who people with significant disabilities. and support to students who disclosed demonstrate these values at our annual impairments in 2011. Thirty-six staff staff awards. • Being a member of the Equal Employment provided 7634 hours of note-taker and Opportunities (EEO) Trust – a not-for- reader-writer services to help improve Our values are Working Together, profit organisation that provides EEO participation, retention, completion and Challenge and Innovation, Valuing People, information to employers and raises progression of students who required Customer Focus, Taking Ownership and awareness of diversity issues in New these services. Improvement and Opportunity. Zealand workplaces. As a member of the EEO Trust we aim to recruit, reward and WINTEC ANNUAL REPORT 2011 24 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS EQUAL OPPORTUNITIES FINANCIAL PERFORMANCE SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011 2525 26 WINTEC ANNUAL REPORT 2011

STATEMENT OF RESPONSIBILITY Date: 24/04/2012 Chief Executive MARK FLOWERS Signed by: 31 December2011. operations oftheWaikatoInstituteTechnologyandGroupforyear statement ofserviceperformancefairlyreflectthefinancialpositionan In theCouncilandmanagement’sopinion,thesefinancialstatements financial reporting. designed toprovidereasonableassuranceastheintegrityandreliab responsibility forestablishingandmaintainingasystemofinternalcon The CouncilandmanagementoftheWaikatoInstituteTechnologyhav service performance,andforthejudgementsmadeinthem. Institute ofTechnologyandGroup’sfinancialstatementsstatemen The Councilandmanagementareresponsibleforthepreparationof Date: 24/04/2012 Chair Gordon Chesterman Date: 24/04/2012 Chief FinancialOfficer PAUL HOLLOWAY t of trol ility of d e the Waikato ended

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL

Independent Auditor’s Report HIGHLIGHTS

To the readers of Waikato Institute of Technology and group’s Independent Auditor’sfinancial Report statements and statement of service performance To the readers of the Waikato Institute of Technology and Group’s financial statements for the year ended 31 December 2010 EQUAL OPPORTUNITIES and statement of service performance for the year ended 31 December 2011 The Auditor‑General is the auditor of the Waikato Institute of Technology (the Institute) and Group. The Auditor‑General has appointed me, ClarenceThe Auditor-General Susan, using the staff is and the resources auditor ofof Audit Waikato New Zealand, Institute to carry of Technology out the audit of(the the Institute)financial statements and group. and statement of serviceThe performanceAuditor-General of the Institute has appointed and group on me, her behalf.Clarence Susan, using the staff and resources of Audit We Newhave audited: Zealand, to carry out the audit of the financial statements and statement of service performance of the Institute and group on her behalf. • the financial statements of the Institute and group on pages 29 to 75, that comprise the statement of financial position as at 31We December have 2011,audited: the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended• on that thedate financial and the notes statements to the financial of the statements Institute thatand include group accounting on pages policies 33 to and 81, other that explanatory comprise information; the and FINANCIAL PERFORMANCE • the statement of service performance of the Institute and group on pages 76 to 85. statement of financial position as at 31 December 2010, the statement of comprehensive

AUDITOR’S REPORT Opinion income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other In our opinion: explanatory information; and • the financial statements of the Institute and group on pages 29 to 75: •- comply withthe generally statement accepted of service accounting performance practice in New of Zealand;the Institute and and group on pages 82 to 87. Opinion- fairly reflect the Institute and group’s: • financial position as at 31 December 2011; and In our• financial opinion: performance and cash flows for the year ended on that date; SERVICE PERFORMANCE • the• statementthe of service financial performance statements of the of Institute the Institute and group and on pagesgroup 76 on to 85pages fairly reflects33 to 81: the Institute and group’s service performance achievements measured against the performance targets adopted for the year ended 31 December 2011.
comply with generally accepted accounting practice in New Zealand; and Our audit was completed on 24 April 2012. This is the date at which our opinion is expressed.
fairly reflect the Institute and group’s: The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we

explain our independence. • financial position as at 31 December 2010; and

Basis of opinion • financial performance and cash flows for the year ended on that date; We •carried out ourthe audit statement in accordance of service with the performance Auditor‑General’s of theAuditing Institute Standards, and groupwhich incorporate on pages the 82 International to 87: Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance
aboutcomplies whether the with financial generally statements accepted and statement accounting of service practice performance in New are Zealand; free from material and misstatement.

Material misstatements
arefairly differences reflects or omissions the Institute of amounts and group’sand disclosures service that performance would affect a reader’sachievements overall understanding measured of the financial statements andagainst statement the of performance service performance. targets If we adopted had found formaterial the yearmisstatements ended 31that December were not corrected, 2010. we would have referred to them in our opinion. Our audit was completed on 28 April 2011. This is the date at which our opinion is expressed. WINTEC ANNUAL REPORT 2011 An auditThe basisinvolves of carrying our opinion out procedures is expla toined obtain below. audit evidence In addition, about thewe amounts outline andthe disclosures responsibilities in the financial of the statements and statementCouncil of and service our performance. responsibilities, The procedures and we selected explain depend our independence. on our judgement, including our assessment of risks of material misstatement of the financial statements and statement of service performance, whether due to fraud or error. In making those risk assessments,Basis of we opinion consider internal control relevant to the Institute and group’s preparation of the financial statements and statement of service performance that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures thatWe are appropriatecarried out in ourthe circumstances audit in accordance but not for withthe purpose the Auditor-General’s of expressing an opinion Auditing on the effectivenessStandards, ofwhich the Institute and group’sincorporate internal control. the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and statement of service performance are free 27 from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and statement of service performance. The procedures selected depend on our An audit also involves evaluating:

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

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

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

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

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

Responsibilities of the Council

The Council is responsible for preparing financial statements that:

• comply with generally accepted accounting practice in New Zealand; and

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

The Council is also responsible for preparing a statement of service performance that fairly reflects the Institute and group’s service performance achievements.

The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error.

The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

Independence

When carrying out the audit, we followed the independence requirements of the Auditor‑General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

Other than the audit, we have no relationship with or interests in the Institute or any of its subsidiaries.

Clarence Susan Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand WINTEC ANNUAL REPORT 2011 28 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2011 Government grants Income Other income Student tuitionfees Personnel costs Expenditure Total Income Finance income Other expenses Depreciation andamortisationexpense Share ofassociatessurplus/(deficit) Total Expenditure Fair valueimpairment Impairment offixedassets The accompanying notesformpartofthesefinancialstatements Explanation ofmajor variancesagainstbudgetareprovided innote23. Non-controlling interest The WaikatoInstituteofTechnology Total comprehensiveincomeattributable to: Total ComprehensiveIncome/(Expense) Total OtherComprehensiveIncome/(Expense) Property revaluations Other ComprehensiveIncome Non-controlling interest The WaikatoInstituteofTechnology Total surplusattributableto: Surplus/(Deficit) Finance costs Notes 3(b) 3(d) 3(d) 3(e) 3(a) 3(c) 3(f) 8, 9

(80,060) (47,584) (25,790) Actual 83,330 27,899 46,714 $'000 2011 (6,028) 6,186 2,917 3,269 8,501 6,297 2,917 3,380 (658) (111) (111) 216 - - - CONSOLIDATED Budget (71,580) (43,066) (21,509) 79,585 26,655 44,849 $'000 2011 (7,000) 8,005 8,005 7,962 8,005 8,005 119 (5) ------(80,153) (44,113) (25,021) Actual 82,872 24,765 46,139 11,701 $'000 2010 (6,310) (2,814) (1,613) 2,719 2,719 2,781 2,781 (282) 267 (62) (62) - - - (78,629) (46,682) (25,331) Actual 82,010 27,899 46,714 $'000 2011 (5,963) 6,298 2,917 3,381 7,201 6,298 2,917 3,381 (654) 196 - - - - - PARENT Budget (70,414) (42,237) (21,177) 78,353 26,655 44,849 $'000 2011 (7,000) 7,939 7,939 6,730 7,939 7,939 119 ------(80,104) (43,567) (25,300) Actual 82,639 24,765 46,139 11,468 $'000 2010 (6,310) (3,032) (1,613) 2,535 2,535 2,535 2,535 (282) 267 - - - - -

29 WINTEC ANNUAL REPORT 2011 REPORT ANNUAL WINTEC OVERVIEW CHAIR’S & CE’S REPORT CE’S & CHAIR’S SERVICE PERFORMANCE SERVICE PERFORMANCE FINANCIAL OPPORTUNITIES EQUAL HIGHLIGHTS COUNCIL OF MEMBERS 30 WINTEC ANNUAL REPORT 2011 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 Cash andcashequivalents Current Assets ASSETS Property, plantandequipment Financial assets Non-Current Assets Total CurrentAssets Assets heldforsale Prepayments Inventories Debtors andotherreceivables Assets heldforsale Total CurrentLiabilities Interest-bearing loansandborrowings Revenue inadvance Provisions Employee entitlements Creditors andotherpayables Current Liabilities LIABITIES TOTAL ASSETS Total Non-CurrentAssets Intangible assets Notes 10 10 15 13 12 11 4 8 7 6 5 9

159,394 138,658 133,199 Actual 20,736 31,693 15,113 12,717 15,141 $'000 2011 1,885 5,623 5,800 4,973 5,779 5,275 184 155 356 - - CONSOLIDATED 147,115 141,381 139,393 Budget $'000 2011 5,734 9,338 2,740 1,988 5,734 2,560 4,405 2,249 2,685 400 34 - - - - - 135,548 130,214 124,975 Actual 11,412 $'000 2010 5,334 2,626 1,933 3,401 1,247 3,091 3,348 2,353 5,711 901 138 626 11 - - 159,293 133,053 138,512 Actual 31,386 15,158 14,639 15,111 $'000 20,781 2011 5,623 5,804 5,275 4,895 5,577 356 184 155 8 - - PARENT 141,381 146,927 139,393 Budget $'000 2011 5,546 9,099 2,552 1,988 5,546 2,560 4,405 2,249 2,446 400 34 - - - - - 130,214 135,190 124,975 Actual 10,449 $'000 2010 4,976 1,933 3,043 2,230 1,247 3,091 3,348 2,353 4,748 664 901 138 11 - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

CONSOLIDATED PARENT

Notes Actual Budget Actual Actual Budget Actual EQUAL OPPORTUNITIES 2011 2011 2010 2011 2011 2010 $'000 $'000 $'000 $'000 $'000 $'000 Non-Current Liabilities Interest-bearing loans and borrowings 15 7,240 13,201 10,400 7,240 13,201 10,400 Provisions Employee entitlements 12 487 - 478 487 - 478 Total Non-Current Liabilities 7,727 13,201 10,878 7,727 13,201 10,878

TOTAL LIABILITIES 39,420 22,539 22,290 39,113 22,300 21,327 FINANCIAL PERFORMANCE NET ASSETS 119,974 124,576 113,258 120,180 124,627 113,863

EQUITY General funds 100,126 107,553 96,294 100,217 107,604 96,837 Share capital 1 - - - - - Restricted reserves 145 123 126 145 123 126 Property revaluation reserve 19,817 16,900 16,900 19,817 16,900 16,900

Total equity attributable to the institute 120,090 124,576 113,320 120,180 124,627 113,863 SERVICE PERFORMANCE Non-controlling interest (116) - (62) - - - TOTAL EQUITY 16 119,974 124,576 113,258 120,180 124,627 113,863

Explanation of major variances against budget are provided in note 23. The accompanying notes form part of these financial statements These financial statements were approved for signing by the Council on 24/4/2012. WINTEC ANNUAL REPORT 2011

M Flowers P Holloway Chief Executive Chief Financial Officer

31 32 WINTEC ANNUAL REPORT 2011 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2011 Balanceat1January Comprehensive income Total comprehensiveincomeforyear Balance beforenon-comprehensiveincomeat31December Non-comprehensive incomeitems Total non-comprehensiveincomeitems Balance at31December Total comprehensiveincomeforyear The WaikatoInstituteofTechnology Total comprehensiveincomeattributableto: Non-controlling interest The accompanyingnotesformpartofthesefinancialstatements Surplus/(deficit) Other comprehensiveincome Restricted reservestransfers Capital contributionsfromowners Suspensory loansfromtheCrown 119,444 119,974 113,258 Actual $'000 2011 6,186 6,186 3,269 2,917 6,297 (111) 511 530 19 -

CONSOLIDATED 124,576 124,576 116,571 Budget $'000 2011 8,005 8,005 8,005 8,005 - - - - -

- 113,258 113,258 110,539 Actual $'000 2010 2,719 2,719 2,719 2,781 (62) - - - - -

120,161 120,180 113,863 Actual $'000 2011 6,298 6,298 3,381 2,917 6,298 19 19 - -

- 124,627 124,627 116,688 PARENT Budget $'000 2011 7,939 7,939 7,939 7,939 - - - - -

- 113,863 113,863 111,328 Actual $'000 2010 2,535 2,535 2,535 2,535 - - - - -

- OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

CONSOLIDATED PARENT

Actual Budget Actual Actual Budget Actual EQUAL OPPORTUNITIES 2011 2011 2010 2011 2011 2010 $'000 $'000 $'000 $'000 $'000 $'000

Cash flows from operating activities Receipt of government grants 46,321 44,849 46,512 46,321 44,849 46,512 Receipt of student tuition fees 32,401 26,655 24,125 32,401 26,655 24,125 Interest income received 216 119 267 196 119 267 FOR T H E YEAR ENDED 31 DE C EMBER 2011 Receipt of research income ------FINANCIAL PERFORMANCE Dividend income ------Receipt of other income 4,983 8,723 9,303 3,334 7,491 9,070 Payments to employees (45,641) (42,760) (43,762) (44,817) (42,238) (43,764) Payments to suppliers (27,639) (25,664) (21,962) (26,924) (25,142) (23,398) Interest paid (658) (747) (282) (654) (747) (282) Goods and services tax (net) 616 - 184 609 - 274 Net cash flows from operating activities 10,598 11,175 14,385 10,466 10,987 12,804 SERVICE PERFORMANCE STATEMENT OF CASH FLOWS

Cash flows from investing activities Purchase of property plant and equipment (12,109) (16,989) (22,878) (11,896) (16,989) (22,878) Purchase of intangible assets (2,951) - (641) (2,951) - (641) Acquisition of investments ------Receipts from sale of investments 574 - - 574 - - Proceeds from sale of property, plant and equipment 507 8,330 3,518 507 8,330 3,518 Net cash flows used in investing activities (13,979) (8,659) (20,001) (13,766) (8,659) (20,001) WINTEC ANNUAL REPORT 2011

33 34 WINTEC ANNUAL REPORT 2011 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2011 Capital contributionsreceivedfromtheCrown Cash flowsfromfinancingactivities The accompanyingnotesformpartofthesefinancialstatements statement purposes.Thisalsomaintainsconsistencywiththepresentation basisoftheotherprimaryfinancialstatements. The GST(net)componenthasbeenpresentedonanetbasis,asthegrossamountsdonotprovidemeaningfulinformationforfinancial The GST(net)componentofoperatingactivitiesreflectsthenetpaidtoandreceivedfromInlandRevenueDepartment. Cash andcashequivalentsattheendofperiod Cash andcashequivalentsatthebeginningofperiod Net increase/(decrease)incashandequivalents Net cashflowsfromfinancingactivities Payment offinanceleases Repayment ofborrowings Proceeds fromborrowings Suspensory loansfromtheCrown

Actual $'000 2011 (3,111) (2,356) (5,737) (3,080) 2,626 724 - - - CONSOLIDATED

Budget $'000 2011 2,740 1,816 (700) (700) 924 - - - -

Actual 10,400 $'000 2010 (3,300) 7,100 2,626 1,142 1,484 - - -

Actual $'000 2011 (4,992) (2,356) (3,080) (5,656) 664 724 - - -

PARENT Budget $'000 2011 2,552 1,628 (700) (700) 924 - - - -

Actual 10,400 $'000 2010 (3,300) 7,100 664 761 (97) - - - STATEMENT OF CASH FLOWS RECONCILIATION OF NET SURPLUS/(DEFICIT) TO THE NET CASH FLOW FROM OPERATING ACTIVITIES - FOR THE YEAR ENDED 31 DECEMBER 2011 Net cashflowfromoperatingactivities Net movementsinworkingcapitalitems Increase /(decrease)intrustfunds Increase /(decrease)incurrentemployee entitlements Increase /(decrease)inprovisions Increase /(decrease)inrevenuereceivedadvance Increase /(decrease)increditorsandotherpayables (Increase) /decreaseinprepayments (Increase) /decreaseindebtorsandotherreceivables (Increase) /decreaseininventories Add/(less) movementsinworkingcapitalitems Total itemsclassifiedasinvestingorfinancingactivities comprehensive income (Gains)/losses ondisposalofinvestmentsclassifiedasfairvaluethroughother (Gains)/losses ondisposalofproperty,plantandequipment Add/(less) itemsclassifiedasinvestingorfinancingactivities Total non-cashitems Fair valueimpairment Impairment offixedassets Bad debts Increase/(decrease) innon-currentemployeeentitlements (Gains)/losses onfairvalueofinvestmentproperty Intangible assetwrite-off Depreciation andamortisationexpense Add/(less) non-cashitems Net Surplus/(deficit) (11,360) 10,598 11,793 $'000 2011 (2,449) 6,310 CONSOLIDATED 2,620 6,028 3,269 (345) 241 777 777 273 (17) 9 ------14,385 11,232 $'000 2010 (2,398) (2,398) 2,832 2,814 1,613 6,310 2,719 1,396 373 495 707 389 (33) ------(11,678) 10,466 11,763 $'000 2011 (2,202) 6,245 2,542 5,963 3,381 (345) 777 777 273 (17) 63 PARENT 9 ------12,804 11,450 $'000 2010 (2,398) (2,398) 1,217 3,032 1,613 6,310 2,535 1,410 (922) 373 495 389 (33) ------

35 WINTEC ANNUAL REPORT 2011 REPORT ANNUAL WINTEC OVERVIEW CHAIR’S & CE’S REPORT CE’S & CHAIR’S SERVICE PERFORMANCE SERVICE PERFORMANCE FINANCIAL OPPORTUNITIES EQUAL HIGHLIGHTS COUNCIL OF MEMBERS 36 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 These financialstatements havebeen accepted accounting practice(NZGAAP). to complywithNewZealandgenerally Act 1989,whichincludetherequirement Crown EntitiesAct2004andtheEducation accordance withtherequirementsof the and Grouphavebeenpreparedin The financialstatementsoftheInstitute Statement ofcompliance BASIS OFPREPARTION amend thestatementsafterissue. 2012. Councildoesnothavethepowerto resolution oftheCouncillorson24April authorised forissueinaccordancewitha for theyearended31December2011were The financialstatementsoftheInstitute Reporting Standards(NZIFRS). equivalents toInternationalFinancial entities forthepurposesofNewZealand itself andtheGroupaspublicbenefit Accordingly, theInstitutehasdesignated rather thanmakingafinancialreturn. services forthebenefitofcommunity Group istoprovidetertiaryeducation The primaryobjectiveoftheInstituteand details ofallentitiesincludedintheGroup. New Zealand.Refertonote25forfurther Trust. Theseentitiesareallincorporatedin Inc. LimitedandtheWintecFoundation include thefollowingsubsidiaries:SODA The consolidatedfinancialstatements education inNewZealand. It providesfull-timeandpart-timetertiary Act 2004andtheEducation1989. (TEI) andisgovernedbytheCrownEntities Institute) isaTertiaryEducationInstitution The WaikatoInstituteofTechnology(the 1 REPORTINGENTITY effective andhave notbeenearlyadopted interpretations issuedthatarenotyet Standards, amendments,and -  -  revised NZIAS24is: statements. Theeffectofadoptingthe and Group’s31December2011financial adopted forthefirsttimeinInstitute Disclosures (Revised2009)hasbeen The revisedNZIAS24RelatedParty Related PartyDisclosures Adoption oftherevisedNZIS24 policies duringthefinancialyear. There havebeennochangesinaccounting Changes inaccountingpolicies dollars ($’000). are roundedtothenearestthousand in NewZealanddollarsandallvalues The financialstatementsarepresented Functional andpresentationcurrency have beenmeasuredatfairvalue. as heldforsaleandlandbuildingsthat for investment properties, assets classified prepared onahistoricalcostbasis,except The financialstatementshavealsobeen Measurement basis as appropriateforpublicbenefitentities. applicable financialreportingstandards, They complywithNZIFRS,andother prepared inaccordancewithNZGAAP. require disclosure commitments withrelatedpartiesnow entities; and the Instituteandgovernment-related disclosed abouttransactionsbetween more informationisrequiredtobe -  -  relevant totheInstituteandGroup,are: that havenotbeenearlyadopted,andare interpretations issuedbutnotyeteffective Standards, amendments,and standards withsource IFRSandto Australia andNew Zealand’s accounting 2011 withthepurposeofharmonising Amendments) –Thesewereissuedin May Accounting Standards(Harmonisation to harmonisewithIFRSandAustralian Disclosures andamendmentstoNZIFRS FRS- and expectsitwillnotbeearlyadopted. assessed theimpactofnewstandard The InstituteandGrouphasnotyet adopted fortheyearended30June2014. The newstandardisrequiredtobe impairment methodsinNZIAS to beused,replacingthemanydifferent also requiresasingleimpairmentmethod the financialassets.Thenewstandard contractual cashflowcharacteristicsof instruments (itsbusinessmodel)andthe how anentitymanagesitsfinancial The approachinNZIFRS the manydifferentrulesinNZIAS amortised costorfairvalue,replacing whether afinancialassetismeasuredat 9 usesasingleapproachtodetermine instrument standardNZIFRS has beenpublishedinthenewfinancial financial assetshasbeencompletedand the classificationandmeasurementof Phase 3HedgeAccounting.1of Phase 2ImpairmentMethodology,and Phase 1ClassificationandMeasurement, through thefollowingthreemainphases: Measurement. NZIAS Instruments: Recognitionand eventually replaceNZIAS NZ IFRS 44 NewZealandAdditional

9 FinancialInstrumentswill 39 9 isbeingreplaced isbasedon 39 Financial 9 39 . NZIFRS . 39 .

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

eliminate many of the differences Subsidiaries are all those entities over Where the group transacts with an between the accounting standards in which the Group has power to govern associate, surplus or deficits are each jurisdiction. The amendments must the financial and operating policies of eliminated to the extent of the group’s EQUAL OPPORTUNITIES first be adopted for the year ended the entity, generally a company with a interest in the relevant associate. 31 December 2012. The Institute has not shareholding of more than one half of the yet assessed the effects of FRS-44 and the voting rights. The existence and effect of Dilution gains or losses arising from Harmonisation Amendments. potential voting rights that are currently investments in associates are recognised exercisable or convertible are considered in the surplus or deficit. As the External Reporting Board is when assessing when the Group controls consulting on a new accounting standards another entity. Joint Venture framework for public benefit entities, The Institute’s jointly-controlled entity it is expected that all new NZ IFRS and Inter-company transactions, balances interest is accounted for by proportionate FINANCIAL PERFORMANCE amendments to existing NZ IFRS with and unrealised gains on transactions consolidation in the group financial a mandatory effective date for annual between Group companies are eliminated. statements. The group combines its reporting periods commencing on or after Unrealised losses are also eliminated share of the joint venture’s individual 1 January 2012 will not be applicable to unless the transaction provides evidence income and expenses, assets and public benefit entities. This means that of the impairment of the asset transferred. liabilities, and cash flows on a line-by-line the financial reporting requirements for Accounting policies of subsidiaries have basis with similar items in the Institute and public benefit entities are expected to been changed where necessary to ensure group’s financial statements. be effectively frozen in the short term. consistency with the policies adopted by Accordingly, no disclosure has been made the Group. The group recognises the portion of gains

about new or amended NZ IFRS that exclude or losses on the sale of assets by the group SERVICE PERFORMANCE public benefit entities from their scope. The Institute’s investments in associates to the joint venture that is attributable to are carried at fair value in the Institute’s the other ventures. 2 SUMMARY OF SIGNIFICANT parent financial statements and accounted ACCOUNTING POLICIES for on an equity basis in the consolidated Investments in jointly-controlled entities accounts. An associate is an entity over are carried at cost in the Institute’s parent Basis of consolidation which the Institute has significant entity financial statements. The purchase method is used to prepare influence and that is neither a subsidiary group financial statements, which involves nor an interest in a joint venture. The Cash and equivalents adding together items of assets, liabilities, investment in an associate is initially Cash in the balance sheet comprises equity, income and expenses on a line recognised at cost and the carrying amount cash at bank and in hand and short-term by line basis. All significant intergroup is increased or decreased to recognise the deposits with an original maturity of three balances, transactions, income and Group’s share of the surplus or deficit of months or less. expenses are eliminated on consolidation. the associate after the date of acquisition. Wintec’s investments in its subsidiaries The Group’s share of the surplus or deficit For the purposes of the Cash Flow are carried at cost in Wintec’s own parent WINTEC ANNUAL REPORT 2011 of the associate is recognised in the Group Statement, cash and cash equivalents entity financial statements. surplus or deficit. Distributions received consist of cash and cash equivalents from an associate reduce the carrying as defined above, net of outstanding The consolidated financial statements amount of the investment in the Group bank overdrafts. incorporate the assets and liabilities of all financial statements. subsidiaries of the Institute as at balance date and the results of all subsidiaries for the year then ended.

37 38 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 transferred andthe InstituteandGroup financial assetshave expiredorhavebeen the rightstoreceivecashflowsfrom the Financial assetsarede-recognisedwhen Recognition andde-recognition surplus ordeficit. transaction costsarerecognisedinthe surplus ordeficitinwhichcasethe they arecarriedatfairvaluethrough at fairvalueplustransactioncostsunless Financial assetsareinitiallyrecognised categories. restrictions onreclassifyingtoother at eachfinancialyearend,butthereare acquired. Designationisre-evaluated purpose forwhichtheinvestmentswere income. Theclassificationdependsonthe value throughothercomprehensive deficit, loansandreceivables,fair assets atfairvaluethroughsurplusof are categorisedaseitherfinancial scope ofNZIAS39FinancialInstruments Investments andfinancialassetsinthe Recognition andmeasurement Investments andotherfinancialassets Bad debtsarewrittenoffwhenidentified. recognise revenue. study. Thereisnochangetothewaywe the studentindicatestheirintentionto Statement ofFinancialPerformancewhen offer. Feesarenowpresentedinour when thestudentacceptedenrolment Previously studentfeeswerereported any uncollectibleamounts. receivable amountlessanallowancefor are recognisedandcarriedatoriginal Student feesandotherreceivables Student feesandotherreceivables recognised inthesurplus ordeficit. with gainsorlossesonre-measurement category aremeasuredattheirfairvalues recognition financialassetsinthis accounting policyabove.Theinitial derivatives isexplainedinthe The current/non-currentclassification of trading areclassifiedasacurrentasset. as partofaportfolioclassifiedheldfor the purposeofsellinginshort-termor Financial assetsacquiredprincipallyfor hedge accountingisapplied. hedge accountingrelationshipforwhich trading unlesstheyaredesignatedintoa Derivatives arealsocategorisedasheldfor is evidenceofshort-termprofittaking. managed togetherandforwhichthere short-term orispartofaportfoliothat principally forthepurposeofsellingin classified inthiscategoryifitisacquired held fortrading.Afinancialassetis surplus ordeficitincludefinancialassets Financial assetsatfairvaluethrough surplus ordeficit Financial assetsatfairvaluethrough instruments wereacquired. depends onthepurposeforwhich Classification ofthefinancialasset -  - Loansandreceivables; - Fairvaluethroughsurplusordeficit; of measurement. following categoriesforthepurposes Financial assetsareclassifiedintothe and rewardsofownership. have transferredsubstantiallyalltherisks comprehensive income. Fair valuethroughother -  -  designate inthiscategory: balance date.TheInstituteandGroup of theinvestmentwithin12months unless managementintendstodispose They areincludedinnon-currentassets in anyoftheothercategoriesabove. comprehensive incomeorarenotclassified designated asfairvaluethroughother comprehensive incomearethosethat Financial assetsatfairvaluethroughother comprehensive income other Financial assetsatfairvaluethrough surplus ordeficit. or de-recognisedarerecognisedinthe and losseswhentheassetisimpaired less anyprovisionforimpairment.Gains cost usingtheeffectiveinterestmethod receivables aremeasuredatamortised After initialrecognition,loansand expected within12monthsofbalancedate. because repaymentofthereceivableisnot are classifiedasanon-currentasset receivables thatarerepayableondemand in non-currentassets.Relatedparty the balancedate,whichareincluded maturities greaterthan12monthsafter included incurrentassets,exceptfor not quotedinanactivemarket.Theyare fixed ordeterminablepaymentsthatare are non-derivativefinancialassetswith and loanstokeymanagementpersonnel Loans andreceivablesincludingloannotes debtors andotherreceivables) (including cashandequivalents Loans andreceivables strategic purposes. Shareholdings that itholdsfor maturity; and term butwhichmayberealisedbefore Investments thatitintendstoholdlong- OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

After initial recognition these investments written-off against the allowance account. De-recognition of financial instruments are measured at their fair value, with Overdue receivables that have been The de-recognition of a financial gains and losses recognised in other renegotiated are reclassified as current instrument takes place when the Institute EQUAL OPPORTUNITIES comprehensive income, except for (i.e. not past due). For other financial assets, and the Group no longer control the impairment losses, which are recognised in impairment losses are recognised directly contractual rights that comprise the the surplus or deficit. against the instrument’s carrying amount. financial instrument, which is normally the case when the instrument is sold, or all the On de-recognition the cumulative gain Financial assets at fair value through cash flows attributable to the instrument or loss previously recognised in other other comprehensive income are passed through to an independent comprehensive income is reclassified from For equity investments, a significant or third party. equity to the surplus or deficit. prolonged decline in the fair value of the

investment below its cost is considered Property, plant and equipment FINANCIAL PERFORMANCE Impairment of financial assets objective evidence of impairment. For debt Property, plant and equipment consists of At each balance date, the Institute and investments, significant financial difficulties the following asset classes: Group assess whether there is any of the debtor, probability that the debtor objective evidence that a financial asset will enter into bankruptcy, and default - land or group of financial assets is impaired. in payments are considered objective - buildings Any impairment losses are recognised in indicators that the asset is impaired. - computer hardware surplus or deficit. - plant and equipment Equity instrument impairment losses - library collection Loans and receivables recognised in the surplus or deficit are not

(including cash and cash equivalents and reversed through the surplus or deficit. The measurement basis used for SERVICE PERFORMANCE debtors and other receivables) determining the gross carrying amount for Impairment of a loan or a receivable If impairment evidence exists for each class of assets is as follows: is established when there is objective investments at fair value through other evidence that the Institute and Group comprehensive income, the cumulative - Land and buildings are measured at will not be able to collect amounts due loss (measured as the difference between fair value less subsequent accumulated according to the original terms of the the acquisition cost and the current fair depreciation and subsequent debt. Significant financial difficulties of value, less any impairment loss on that accumulated impairment losses. the debtor, probability that the debtor financial asset previously recognised in - Plant and equipment, motor vehicles, will enter into bankruptcy, and default in the surplus or deficit) recognised in other library and computer hardware are stated payments are considered indicators that comprehensive income is reclassified from at cost less accumulated depreciation and the asset is impaired. The amount of the equity to the surplus or deficit. any accumulated impairment in value. impairment is the difference between the asset’s carrying amount and the present If in a subsequent period the fair value Revaluations value of estimated future cash flows, of a debt instrument increases and the Following initial recognition at cost, land WINTEC ANNUAL REPORT 2011 discounted using the original effective increase can be objectively related to an and buildings are carried at a revalued interest rate. For debtors and other event occurring after the impairment loss amount which is the fair value at the date receivables, the carrying amount of the was recognised, the impairment loss is of the revaluation less any subsequent asset is reduced through the use of an reversed in the surplus or deficit. accumulated depreciation on buildings and allowance account, and the amount of the accumulated impairment loss. loss is recognised in the surplus or deficit. When the receivable is uncollectible, it is

39 40 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 value atthebalancesheetdate. not differmateriallyfromtheassets’ fair to ensurethatthecarryingamountdoes regularity (atleastonceeverythree years) valuations areperformedwithsufficient For landandbuildings,independent amount oftheasset. the netamountisrestatedtorevalued gross carryingamountoftheassetand revaluation dateiseliminatedagainstthe Any accumulateddepreciationasat comprehensive income. and thenrecognisedinother up totheamountpreviouslyexpensed, recognised firstinthesurplusordeficit recognised inthesurplusordeficitwillbe that off-setsapreviousdecreaseinvalue Any subsequentincreaseonrevaluation recognised inthesurplusordeficit. in othercomprehensiveincomebutis reserve, thisbalanceisnotrecognised a debitbalanceintheassetrevaluation class ofasset.Wherethiswouldresultin revaluation reserveinequityforthat income andaccumulatedtoanasset or debitedtoothercomprehensive The netrevaluationresultsarecredited asset basis. equipment iscarriedoutonaclassof Revaluation ofproperty,plantand the valuationdate. seller inanarm’s-lengthtransactionasat willing buyerandaknowledgeable exchanged betweenaknowledgeable amount forwhichtheassetscouldbe to market-basedevidence,whichisthe Fair valueisdeterminedbyreference the assetasfollows: line basisovertheestimatedusefullifeof Depreciation iscalculatedonastraight- assets, aretransferredtogeneralfunds. revaluation reserves,inrespectofthose amounts includedintheproperty When revaluedassetsaresold,the reported netinthesurplusordeficit. asset. Gainsandlossesondisposalsare proceeds withthecarryingamountof determined bycomparingthedisposal Gains andlossesondisposalsare Disposals impairment andisnotdepreciated. Work inprogressisrecognisedatcostless measured reliably. and groupthecostofitemcanbe with theitemwillflowtoInstitute benefits orservicepotentialassociated only if,itisprobablethatfutureeconomic equipment isrecognisedasanassetif,and The costofanitemproperty,plantand Additions Services Fitout Structure Buildings Infrastructure Computer hardware Library Motor vehicles Plant andequipment Land Class ofassets 25%-33.33% 10-50 years 5%-33.33% 1-22 years 1-19 years 1-84 years Rate (pa) 20% 20% 0% Institute’s intangibleassetsisasfollows: A summaryofthepoliciesappliedto accumulated impairmentlosses. cost lessaccumulatedamortisationand acquired intangibleassetsarecarriedat After initialrecognition,separately appropriate portionofrelevantoverheads. development employeecostsandan asset. Directcostsincludethesoftware use arerecognisedasanintangible the developmentofsoftwareforinternal Costs thataredirectlyassociatedwith the specificsoftware. incurred toacquireandbringuse are capitalisedonthebasisofcosts Acquired computersoftwarelicenses Computer software Intangible assets is consideredhighlyprobable. terms forsalesofsuchassetsandthesale subject onlytotheusualandcustomary immediate saleinitspresentcondition the assetisconsideredtobeavailablefor The re-classificationtakesplacewhen rather thanthroughcontinuinguse. principally throughasaletransaction when itscarryingamountwillberecovered re-classified as a current asset held for sale Property, plantandequipmentis Held forsale Acquired generated / Internally Method used Useful lives Software Computer Separately acquired Straight linemethod Finite –5years Method OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Amortisation Research cost If an asset’s carrying amount exceeds its The amortisation period and amortisation Research costs are recognised as an recoverable amount, the asset is impaired method for each class of intangible asset expense in the surplus or deficit in the year and the carrying amount is written-down EQUAL OPPORTUNITIES having a finite life is reviewed at each in which they are incurred. to the recoverable amount. For revalued financial year-end. If the expected useful assets the impairment loss is recognised in life or expected pattern of consumption is Impairment other comprehensive income to the extent different from the previous assessment, The carrying values of plant and equipment the impairment loss does not exceed the changes are made accordingly. other than those whose future economic amount in the revaluation reserve in equity The carrying value of an intangible asset benefits are not directly related to their for that same class of asset. Where that with a finite life is amortised on a straight- ability to generate net cash are reviewed results in a debit balance in the revaluation line basis over its useful life. for impairment when events or changes in reserve, the balance is recognised in the

circumstances indicate that the carrying surplus or deficit. FINANCIAL PERFORMANCE Intangible assets that have an indefinite value may not be recoverable. useful life, or are not yet available for use, are Assets held for educational and related not subject to amortisation and are tested Value in use is depreciated replacement matters and related activities are assessed annually for impairment. Assets that have a cost for an asset where the future for impairment by considering the assets finite useful life are reviewed for indicators economic benefits or service potential of for obsolescence, changes in useful life of impairment at each balance date. When the asset are not primarily dependent on assessments, optimisation and other there is an indicator of impairment the the asset’s ability to generate net cash related matters. asset’s recoverable amount is estimated. An inflows and where the Institute and Group impairment loss is recognised for the amount would, if deprived of the asset, replace its Inventories

by which the asset’s carrying amount exceeds remaining future economic benefits or Inventories are valued at the lower of cost SERVICE PERFORMANCE its recoverable amount. The recoverable service potential. and net realisable value. Inventories held amount is the higher of an asset’s fair for distribution or consumption in the value less costs to sell and value in use. For an asset that does not generate largely provision of services that are not supplied independent cash inflows, the recoverable on a commercial basis are measured at Gains or losses arising from de-recognition amount is determined for the cash- cost (using the FIFO method), adjusted of an intangible asset are measured as generating unit to which the asset belongs. when applicable, for any loss of service the difference between the net disposal potential. Where inventories are acquired proceeds and the carrying amount of If any such indication exists and where at no cost or for nominal consideration, the the asset and are recognised in the the carrying values exceed the estimated cost is the current replacement cost at the comprehensive income statement when recoverable amount, the assets or cash- date of acquisition. the asset is de-recognised. generating units are written down to their recoverable amount. Costs incurred in bringing each product Staff training costs are recognised as an to its present location and condition are expense when incurred. Costs associated The recoverable amount of plant and accounted for as follows: WINTEC ANNUAL REPORT 2011 with maintaining computer software are equipment is the greater of fair value less recognised as an expense when incurred. costs to sell and value in use. In assessing - Inventories held for resale-purchase cost value in use, the estimated future cash on a first-in, first-out basis; Course development costs flows are discounted to their present value - Materials and consumables to be utilised Course development costs are recognised using a discount rate that reflects current for rendering of services- purchase cost as an expense in the Statement of market assessments of the time value of on a first-in, first-out basis. Comprehensive Income in the year in which money and the risks specific to the asset. they are incurred.

41 42 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 These includesalaries andwagesaccrued entitlements atcurrent ratesofpay. at nominalvaluesbasedonaccrued renders therelatedservicearemeasured of theperiodinwhichemployee settled within12monthsaftertheend Employee benefitsthatareduetobe Short-term employeeentitlements Employee entitlements the balancedate. expected tobesettledwithin12monthsof the balancedateorifborrowingsare of theliabilityforatleast12monthsafter an unconditionalrighttodefersettlement liabilities unlesstheInstituteorGrouphas Borrowings areclassifiedascurrent premium onsettlement. transaction costsandanydiscountor calculated bytakingintoaccountany interest method.Amortisedcostis amortised costusingtheeffective loans andborrowingsaremeasuredat After initialrecognition,interest-bearing the borrowing. of transactioncostsassociatedwith of theconsiderationreceivednet recognised atcost,beingthefairvalue All loansandborrowingsareinitially Interest-bearing loansandborrowing effective interestmethod. measured atamortisedcostusingthe measured atfairvalueandsubsequently Creditors andotherpayablesareinitially Creditors andotherpayables necessary tomakethesale. of activitieslesstheestimatedcosts selling priceintheordinarycourse Net realisablevalueistheestimated the governmentsuperannuation fund,and Obligations forcontributions toKiwisaver, Defined contributionschemes Superannuation schemes are classifiedasanon-currentliability. liability. Allotheremployeeentitlements balance date,areclassifiedasacurrent to besettledwithin12monthsofthe leave andretirementgratuitiesexpected service leave,andnon-vestedlong Sick leave,annualvestedlong estimated futurecashflows. information; andthepresentvalueof entitlement, andcontractualentitlement likelihood thatstaffwillreachthepointof years ofservice,toentitlement,the entitlements accruingtostaff,basedon The calculationsarebasedon:likelyfuture been calculatedonanactuarialbasis. leave andretirementgratuities,have the relatedservice,suchaslongservice of periodinwhichtheemployeerenders settled beyond12monthsaftertheend Employee benefitsthatareduetobe Long-term employeeentitlements that hascreatedaconstructiveobligation. obliged orwherethereisapastpractice at riskcomponentswherecontractually expense arerecognisedforbonusesand those futureabsences.Aliabilityandan to the extent it will be used by staff to cover that can be carried forward at balance date, based on the unused sick leave entitlement coming year.Theamountiscalculated sick leaveentitlementsearnedinthe year areexpectedtobegreaterthanthe to theextentthatabsencesincoming leave. Aliabilityforsickleaveisrecognised but notyettakenatbalancedate,andsick up tobalancedate,annualleaveearned - Propertyrevaluation reserves; - Generalfunds; of equityare: a numberofcomponents.Thecomponents Equity isdisaggregatedandclassified into between totalassetsandliabilities. Equity ismeasuredasthedifference Equity recognised asafinancecost. the provisionduetopassageoftimeis Where discountingisused,theincreasein provision shallbereversed. required tosettletheobligation, embodying economicbenefitswillbe probable thatanoutflowofresources current bestestimate.Whereitisnolonger sheet dateandadjustedtoreflectthe Provisions arereviewedateachbalance specific totheliability. money and,whereappropriate,therisks market assessmentsofthetimevalue flows atapre-taxratethatreflectscurrent by discountingtheexpectedfuturecash is material,provisionsaredetermined If theeffectoftimevaluemoney amount oftheobligation. and areliableestimatecanbemadeofthe will berequiredtosettletheobligation resources embodyingeconomicbenefits event ifitisprobablethatanoutflowof or constructive)asaresultofpast Institute hasapresentobligation(legal Provisions arerecognisedwhenthe Provisions the surplusordeficitasincurred. schemes arerecognisedasanexpensein other defined contribution superannuation OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

- Fair value through other comprehensive Research income Leases income reserves; Funding received for research which will Operating leases - Restricted reserves provide reciprocal benefits to the research Leases where the lessor retains EQUAL OPPORTUNITIES funding provider is recognised as revenue substantially all the risks and benefits Restricted reserves on a percentage completion basis. of ownership of the asset are classified Restricted reserves are a component of The percentage of completion is measured as operating leases. Initial direct costs equity generally representing a particular by reference to the research expenditure incurred in negotiating an operating lease use to which various parts of equity have incurred as proportion to total expected to are added to the carrying amount of the been assigned. Reserves may be legally be incurred. leased asset and recognised over the restricted or created by the Institute. lease term on the same basis as the Transfers from these reserves may be Funding received which provides no lease income. made only for certain specified purposes or reciprocal benefit to the research funding FINANCIAL PERFORMANCE when certain specified conditions are met. provider is recognised as revenue when the Operating lease payments are recognised funding is received. as an expense in the Statement of Property revaluation reserves Comprehensive Income on a straight-line This reserve relates to the revaluation of Sale of materials basis over the lease term. property, plant, and equipment to fair value. Revenue is recognised when the significant risks and rewards of ownership Goods and services tax Fair value through other comprehensive have passed to the buyer and can be Revenues, expenses and assets are income reserves reliably measured. recognised net of the amount of goods and This reserve comprises the cumulative services tax (GST) except:

net change in the fair value of the fair Interest and dividends SERVICE PERFORMANCE value through other comprehensive Interest income is recognised using the - where the GST incurred on a purchase of income instruments. effective interest method. goods and services is not recoverable from the Inland Revenue Department (IRD), in Revenue Dividends are recognised when the right to which case the GST is recognised as part Revenue is recognised to the extent that receive payment has been established. of the cost of acquisition of the asset or it is probable that the economic benefits as part of the expense item as applicable; will flow to the Institute and the revenue Borrowing costs and receivables and payables are stated can be reliably measured. The following The Institute and Group have elected to with the amount of GST included. specific recognition criteria must also be defer the adoption of the revised NZ IAS met before revenue is recognised: 23 Borrowing Costs (Revised 2007) in The net amount of GST recoverable from, accordance with the transitional provisions or payable to, the IRD is included as part of Government grants of NZ IAS 23 that are applicable to public receivables or payables in the Statement of Government grants are recognised as benefit entities. Financial Position. revenue upon entitlement. WINTEC ANNUAL REPORT 2011 Consequently, all borrowing costs are The net GST paid to, or received from the Student tuition fees recognised as an expense in the period in IRD, including the GST relating to investing Student tuition fees are recognised as which they are incurred. and financing activities, is classified as a revenue. Stage of completion is measured net operating cash flow in the statement of by reference to the days of course cash flows. completed as a percentage of total days for each course.

43 44 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 are undertaken tomanagecreditrisk. monitoring of specific credit allowances commodity prices.Ageinganalysesand for interestrate,foreignexchangeand and assessmentsofmarketforecasts interest rateandforeignexchangerisk include monitoringlevelsofexposure to of riskstowhichitisexposed.These to measure and manage different types Institute andGroupusedifferentmethods risk, creditriskandliquidityrisk.The are interestraterisk,foreigncurrency and theGroup’sfinancialinstruments The mainrisksarisingfromtheInstitute’s financial security. financial targetswhilstprotectingfuture support thedeliveryofInstitute’s policy. Theobjectiveofthepolicyisto the Institute’sfinancialriskmanagement rate andcurrencyriskinaccordancewith to keyfinancialrisks,includinginterest Institute andGroupmanageexposure cash andshort-termdeposits.The overdrafts, availableforsaleinvestments, receivables, payables,bankloansand financial instrumentscomprise The Institute’sandtheGroup’sprincipal objectives andpolicies Financial riskmanagement estimates duringtheperiod. There havebeennochangesinaccounting Changes inaccountingestimates entities intheGroupareliablefortax. are exemptfromincometax,allother The InstituteandtheWintecFoundation Income Tax recoverable from,orpayableto,theIRD. disclosed netoftheamountGST Commitments andcontingenciesare Group tofluctuationsinexchangerates. entered intotodiminishtheriskof Institute, forwardexchangecontracts are are forecastthatmaterialtothe Where transactionsinforeigncurrencies risks associatedwithrevenuestreams. are denominatedinNZdollarstodiminish exposure toforeigncurrencyrisk.Allfees The InstituteandGrouponlyhavelimited Foreign currencyrisk interest rates. positions andthemixoffixedvariable alternative financing,hedging to potentialrenewalsofexistingpositions, Within thisanalysisconsiderationisgiven analyse theirinterestrateexposure. The InstituteandGroupconstantly the financialstatements. The levelofdebtisdisclosedinthenotesto the Institute’slong-termdebtobligations. market interestratesrelatesprimarilyto The Institute’sandtheGroup’sexposureto Interest raterisk Risk exposuresandresponses forecast projections. credit allowances,andfuturecashflow foreign currencyandinterestraterisk, trading inderivatives,hedgingcoverof below, includingthesettingoflimitsfor managing eachoftherisksidentified Council reviewsandagreespoliciesfor Committee undertheauthorityofCouncil. risks restswiththeFinanceandAudit identification andcontroloffinancial forecasts. Primaryresponsibilityfor development offuturerollingcashflow Liquidity riskismonitoredthroughthe Institute’s totalassets (2010:7.7%). 2011, borrowingswereequalto4.8% ofthe the valueoftotalassets.At31December total borrowingswillnotexceed25% of of bankloans.TheInstitute’spolicyis that of fundingandflexibilitythroughthe use to maintainabalancebetweencontinuity The Institute’sandtheGroup’sobjectiveis Liquidity risk of defaultcounterparties. of financial institutions to minimise the risk instruments arespreadamongstanumber credit riskwithintheInstituteandfinancial There arenosignificantconcentrationsof exposure tobaddebtsarenotsignificant. result thattheInstitute’sandGroup’s monitored onanon-goingbasiswiththe In addition,receivablebalancesare other receivables. Group’s policytosecuritisetradeand not requestednorisittheInstitute’sand third parties,andassuchcollateralis trade onlywithrecognised,credit-worthy credit exposure.TheInstituteandGroup hold anycreditderivativestooffsettheir note. TheInstituteandtheGroupdonot date isaddressedineachapplicable these instruments.Exposureatbalance exposure equaltothecarryingamountof of thecounterparty,withamaximum to creditriskarisefrompotentialdefault The Institute’sandtheGroup’sexposure derivative instruments. available-for-sale financialassetsand equivalents, tradeandotherreceivables, which comprisecashand assets oftheInstituteandGroup, Credit riskarisesfromthefinancial Credit risk OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Key judgements, estimates transaction. The assets and liabilities The Institute and Group manages its and assumptions must be available for immediate sale revenues, expenses, assets, liabilities, In preparing these financial statements, and the Institute must be committed to investments, and general financial EQUAL OPPORTUNITIES the Institute and Group have made selling the asset either through entering dealings prudently and in a manner that estimates and assumptions concerning the into a contractual sale agreement or promotes the current and future interests future. These estimates and assumptions the activation of and commitment to a of the community. The Institute’s and may differ from the subsequent actual programme to locate a buyer and dispose Group’s equity are largely managed as a results. Estimates and assumptions are of the assets and liabilities. by-product of managing revenues, continually evaluated and are based on expenses, assets, liabilities, investments, historical experience and other factors, Estimation of useful lives of assets and general financial dealings. including expectations or future events The estimation of the useful lives of assets that are believed to be reasonable under has been based on historical experience as The objective of managing the Institute’s FINANCIAL PERFORMANCE the circumstances. well as manufacturers’ warranties (for plant and the Group’s equity is to ensure that and equipment), lease terms (for leased they effectively and efficiently achieve The estimates and assumptions that have equipment) and turnover policies (for the goals and objectives for which they a significant risk of causing a material motor vehicles). In addition, the condition have been established, while remaining adjustment to the carrying amounts of the assets is assessed at least once per a going concern. of assets and liabilities within the next year and considered against the remaining financial year are discussed below: useful life. Adjustments to useful lives are Budget figures made when considered necessary. The budget figures are those given final Impairment of non-financial assets approval by the Council on 7 December

other than goodwill Property revaluations 2010. The budget figures have been SERVICE PERFORMANCE The Institute and Group assess impairment Note 8 provides information about the prepared in accordance with NZ GAAP, of all assets at each reporting date by estimates and assumptions exercised using accounting policies that consistent evaluating conditions specific to the in the measurement of revalued land, with those adopted by the Council in Institute and Group, and to the particular buildings and infrastructure. preparing these financial statements. asset that may lead to impairment. These include programme performance, Capital management Comparatives technology, economic and political The Institute and Group’s capital is its Some of the 2010 comparatives have been environments and future programme equity, which comprises general funds, and changed for comparability. The overall expectations. If an impairment trigger property valuation and fair value through effect on the Statement of Comprehensive exists the recoverable amount of the asset comprehensive income reserves. Equity is Income and the Statement of Financial is determined. The Institute does not represented by net assets. Position is nil. consider that the triggers for impairment testing have been significant enough and The Institute is subject to the financial therefore no provision has been made management and accountability provisions WINTEC ANNUAL REPORT 2011 during the financial year. of the Education Act 1989, which includes restrictions in relation to: disposing of Classification of assets and liabilities assets or interests in assets, ability to as held for sale mortgage or otherwise charge assets or The Institute classifies assets and interests in assets, granting leases of liabilities as held for sale when its carrying land or buildings or parts of buildings, amount will be recovered through a sale and borrowing.

45 46 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 (a) Governmentgrants (b) Studenttuitionfees Capability (TEOC)andOtherTertiaryEducationCommission(PPBG)funding. 2010 wasthelastyearInstitutereceivedTertiaryEducationOrganisational operating leasereceivables(2010:$0.96m). Included inrevenuefromotheroperatingactivitiesof$7.735m(consolidated) and$6.435m(parent)is$0.158mwhichrelatesto (c) Otherincome 3 REVENUANDXPENSES Student AchievementComponent(SAC)Funding Total Other grants Other TertiaryEducationCommissionfundingPPBG Tertiary EducationOrganisationalCapability(TEOC)funding Fees fromdomesticstudents Total Fees frominternationalstudents Total Revenue fromchildcareoperations Gain ondisposalofproperty,plantandequipment Sub total Revenue fromotheroperatingactivities

46,714 27,899 42,530 20,354 $'000 8,501 4,184 7,545 8,501 7,735 2011 CONSOLIDATED 766

- - -

46,139 24,765 11,701 32,032 11,257 17,277 $'000 1,500 1,350 7,488 2,398 9,303 8,514 2010 789

46,714 27,899 42,530 20,354 $'000 7,201 4,184 7,545 7,201 6,435 2011 766

- - PARENT -

46,139 24,765 11,468 32,032 11,257 17,277 $'000 1,500 1,350 7,488 2,398 9,070 8,281 2010 789

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

CONSOLIDATED PARENT

2011 2010 2011 2010 EQUAL OPPORTUNITIES $'000 $'000 $'000 $'000 (d) Finance (costs)/income Bank loans and overdrafts (615) (275) (613) (275) Debt collection fees (4) (7) (4) (7) Other finance costs (39) - (37) - Total finance costs (658) (282) (654) (282)

Interest earned on bank deposits 216 267 196 267 FINANCIAL PERFORMANCE Total finance income 216 267 196 267

(e) Employee benefits expense Wages and salaries (44,892) (43,407) (44,068) (42,868) Defined contribution plan employer contributions (72) (62) (72) (55) (Increase)/decrease in employee entitlements (2,620) (644) (2,542) (644) Total (47,584) (44,113) (46,682) (43,567)

SERVICE PERFORMANCE Employer contributions to defined contribution plans include contributions to Kiwisaver, the Defined Benefit Plan Contribution Scheme, and the Government Superannuation Fund.

(f) Other Expenses Loss on disposal of property, plant and equipment (777) - (777) - Donations and koha (8) - (8) - Bad debts (273) (495) (273) (495) Childcare expenses (707) (680) (707) (680) Aggregate research and development costs (261) (262) (261) (262) Operating lease payments (1,467) (598) (1,467) (598)

Materials and consumables (22,297) (22,986) (21,838) (23,265) WINTEC ANNUAL REPORT 2011 Total (25,790) (25,021) (25,331) (25,300)

47 48 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Total Bank overdrafts Short-term deposits Cash atbankandonhand For thepurposeofcashflowstatement,andequivalentscompromisefollowingasat31December. Reconciliation ofcashforthepurposeflowstatement The carryingvalueofcashandequivalentsrecordedinthefinancialstatementsapproximatestheirfairvalue. of theinstitute,andearninterestatrespectiveshort-termdepositrates. Short-term depositsaremadeforvaryingperiodsofbetweenonedayandthreemonthsdependingontheimmediatecashrequirements Cash atbankandonhandearnsinterestfloatingratesbaseddailydepositrates. Total Short-term deposits Cash atbankandonhand 4 CASHANDEQUIVALENTS Notes 15

(3,111) (4,996) 1,885 1,885 1,885 $'000 $'000 2011 2011 CONSOLIDATED CONSOLIDATED - -

2,626 2,626 2,626 2,626 $'000 $'000 2010 2010 - - -

(4,992) (5,000) $'000 $'000 2011 2011 8 8 8 - - PARENT PARENT

$'000 $'000 2010 2010 664 664 664 664 - - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

5 DEBTORS AND other RECEIVABLES

CONSOLIDATED PARENT EQUAL OPPORTUNITIES 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Student fees receivables 9,142 98 9,142 98 Related party receivables 835 44 2,759 1,648 Other receivables 3,540 1,009 3,538 1,009 less provision for impairment (800) (525) (800) (525) FINANCIAL PERFORMANCE Total 12,717 626 14,639 2,230

Fair Value Student fees are due before a course commences or are due 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. Previously student fees were only reported when the student accepted the enrolment offer. Fees are now reported when the student indicates their intention to study at Wintec. The revenue is not recognised in the Statement of Comprehensive Income until it meets the revenue recognition criteria.

Other receivables are non-interest bearing and are generally settled on 30 day terms. Therefore, the carrying value of other receivables SERVICE PERFORMANCE approximates their fair value.

The ageing profile of receivables as at 31 December 2011 and 2010 are detailed below: 2011 2010 Gross Impairment Net Gross Impairment Net $'000 $'000 $'000 $'000 $'000 $'000

Not past due 10,325 - 10,325 813 - 813 Past due 1-30 days 3,394 - 3,394 - - - Past due 31-60 days 293 - 293 94 - 94 Past due 61-90 days 607 - 607 8 - 8

Past due over 90 days 820 800 20 1,840 525 1,315 WINTEC ANNUAL REPORT 2011 Total 15,439 800 14,639 2,755 525 2,230

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.

49 50 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Total Receivables written-offduringtheyear Provisions reversedduringtheyear Additional provisionsmadeduringyear At 1January Total Held forresale 6 INVENTORIES Movements intheprovisionforimpairmentofreceivablesareasfollows: $'000 2011 356 356 CONSOLIDATED $'000 2010 11 11 PARENT ANDCOSOLIDTED $'000 2011 800 316 525 (41) - $'000 2011 356 356 PARENT $'000 2010 525 475 50 $'000 2010 11 11 - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

7 FINANCIAL ASSETS

CONSOLIDATED PARENT EQUAL OPPORTUNITIES 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Non-current portion (i) Unlisted shares:- Shares in PINZ (at cost) 38 38 38 38 (ii) Loans to associates:- Hamilton Fibre Network Ltd - 741 - 741 (iii) Special funds investments (term deposits) 146 122 146 122 FINANCIAL PERFORMANCE

Total 184 901 184 901

Fair Value Loans to related parties Loans to related parties are unsecured, non-interest bearing, and are repayable on demand. The fair value of the on demand loans cannot be less than the amount repayable on demand. Therefore, the carrying value of the loans on demand reflects their fair value. In 2011, Hamilton Fibre Network Ltd shares were sold and the loan was recovered.

Unlisted Shares SERVICE PERFORMANCE Unlisted shares are held in non-commercial entities and are carried at cost less impairment because the fair value of the investment cannot be reliably determined using a standardised valuation technique or due to cost not being materially different to value. Special Trust Funds Special Trust Funds are restricted equity reserves held specifically in trust for the purpose of generating interest for students to access, upon application and meeting specified conditions. WINTEC ANNUAL REPORT 2011

51 52 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Land Consolidated 2011 8 PROPERTY,PLANTANDEQUIPMEN Buildings Computer hardware Furniture andequipment Motor vehicles Library collection Total Consolidated Land Parent Buildings Computer hardware Furniture andequipment Motor vehicles Library collection Total Parent ** includedinlandadditionsis$3,180,000relatingto2010assetsheldfor salereclassfiedaslandin2011. * includedinlanddisposalsis$5,623,000relatingtotransferred assets heldforsale. 164,808 164,808 116,233 116,233 1/1/2011 25,360 10,469 25,360 10,469 $'000 9,438 2,737 9,438 2,737 Cost 571 571 Accumulated Depreciation (39,832) (39,832) (22,478) (22,478) 1/1/2011 (5,898) (1,982) (9,061) (5,898) (1,982) (9,061) $'000 (413) (413) - - 124,976 124,976 110,335 110,335 1/1/2011 Carrying Amount $'000 9,438 2,882 1,408 9,438 2,882 1,408 755 158 755 158 Additions** 18,014 17,805 $'000 3,180 9,312 3,108 1,547 3,180 9,312 3,108 1,338 867 867 - - Disposals* (7,449) (7,449) (6,901) (6,901) $'000 (127) (289) (127) (289) (89) (17) (26) (89) (17) (26) Impairment $'000 Charge ------Depreciation (5,260) (5,197) (2,950) (1,095) (2,950) (1,032) $'000 Charge (694) (472) (694) (472) (49) (49) - - Revaluation 10,743 10,743 (7,826) (7,826) Surplus 2,917 2,917 $'000 ------142,247 142,038 31/12/2011 109,083 109,083 16,460 16,460 $'000 5,163 7,800 3,415 5,163 7,591 3,415 Cost 326 326 Accumulated Depreciation 31/12/2011 (9,048) (8,985) (2,121) (4,483) (1,901) (2,121) (4,420) (1,901) $'000 (300) (243) (300) (243) - - 133,199 133,053 108,783 108,783 31/12/2011 16,460 16,460 Carrying Amount $'000 3,042 3,317 1,514 3,042 3,171 1,514 83 83 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

2010 Cost Accumulated Carrying Additions Disposals Impairment Depreciation Revaluation Cost Accumulated Carrying 1/1/2010 Depreciation Amount Charge Charge Surplus 31/12/2010 Depreciation Amount

1/1/2010 1/1/2010 31/12/2010 31/12/2010 EQUAL OPPORTUNITIES $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Consolidated Land and buildings 105,072 (3,112) 101,960 25,026 (4,468) - (2,745) - 125,660 (5,887) 119,773 Plant and equipment 27,818 (22,956) 4,862 735 (221) - (1,739) - 28,108 (24,471) 3,637 Motor vehicles 571 (371) 200 - - - (42) - 571 (413) 158 Library collection 10,024 (8,608) 1,416 445 - - (453) - 10,469 (9,061) 1,408 Total Consolidated 143,485 (35,047) 108,438 26,206 (4,689) - (4,979) - 164,808 (39,832) 124,976 FINANCIAL PERFORMANCE

Parent Land and buildings 105,072 (3,112) 101,960 25,026 (4,468) - (2,745) - 125,660 (5,887) 119,773 Plant and equipment 27,818 (22,956) 4,862 735 (221) - (1,739) - 28,108 (24,471) 3,637 Motor vehicles 571 (371) 200 - - - (42) - 571 (413) 158 Library collection 10,024 (8,608) 1,416 445 - - (453) - 10,469 (9,061) 1,408 Total Parent 143,485 (35,047) 108,438 26,206 (4,689) - (4,979) - 164,808 (39,832) 124,976 SERVICE PERFORMANCE Revaluations An independent valuation was obtained to determine fair value of land and buildings. Fair value is determined by reference to an open market basis, being the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s-length transaction at the valuation date for land and buildings of a non-educationally specific nature. Where buildings have been designed specifically for educational purposes they are valued at depreciated replacement cost which is considered to reflect fair value for such assets.

Land and buildings were valued by Doug Saunders, independent registered valuer of the firm Telfer Young (Waikato) Ltd. The effective date of the revaluation was 31 December 2011.

Land and buildings with a carrying amount of $35,747,194 (2010: $47,251,037) included in the property, plant and equipment are owned by the Crown. Although legal title has not been transferred, the Institute has assumed all normal risks and rewards of ownership.

Restrictions on title Under the Education Act 1989, the Institute and Group are required to obtain the consent from the Ministry of Education to dispose or sell WINTEC ANNUAL REPORT 2011 of property where the value of the property exceeds an amount determined by the Minister.

There are also various restrictions in the form of historic designations, reserve, and endowment encumbrances attached to land. The Institute and Group do not consider it practical to disclose in detail the value of land subject to these restrictions.

Work in progress The total amount of property, plant and equipment in the course of construction is $6,208,957 (2010 $3,445,947).

53 54 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 At 1January2011,netofaccumulatedamortisation Year ended31December2011 Additions 9 INTANGBLEASSETS Disposals Amortisation At 31December2011,netofaccumulatedamortisation Cost (grosscarryingamount) At 1January2011 Accumulated amortisation Net carryingamount Cost (grosscarryingamount) At 31December2011 Accumulated amortisation Net carryingamount At 1January2010,netofaccumulatedamoritsation Year ended31December2010 Additions Disposals Amortisation At 31December2010,netofaccumulatedamortisation Cost (grosscarryingamount) At 1January2010 Accumulated amortisation Net carryingamount Cost (grosscarryingamount) At 31December2010 Accumulated amortisation Net carryingamount The totalamountof intangibleassetsunderdevelopment is$282,678(2010:$nil). for liabilities. There arenorestrictionsoverthetitle oftheInstitute’sandGroup’sintangibleassets,norisanyasset pledgedassecurity Computer Software (6,390) (4,115) (1,108) (1,080) (5,310) (6,390) $'000 5,275 3,091 5,275 3,092 4,639 3,091 3,091 3,316 9,481 9,390 4,639 9,949 9,481 (365) (767) 641 CONSOLIDATED (6,390) (4,115) (1,108) (1,080) (5,310) (6,390) $'000 5,275 3,091 5,275 3,092 4,639 3,091 3,091 3,316 9,481 9,390 4,639 9,949 9,481 Total (365) (767) 641 Computer Software (6,390) (4,115) (1,108) (1,080) (5,310) (6,390) $'000 5,275 3,091 5,275 3,092 4,639 3,091 3,091 3,316 9,481 9,390 4,639 9,949 9,481 (365) (767) 641 PARENT (6,390) (4,115) (1,108) (1,080) (5,310) (6,390) $'000 5,275 3,091 5,275 3,092 4,639 3,091 3,091 3,316 9,481 9,390 4,639 9,949 9,481 Total (365) (767) 641

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

10 ASSETS HELD FOR SALE

Assets held for sale under non-current assets includes 9.27ha of the Rotokauri campus which the Council has identified as surplus and EQUAL OPPORTUNITIES available for sale. This includes the compulsory purchase of the land by New Zealand Transport Agency for the Avalon Drive expressway. It is expected that this land will be sold within the next 12 months.

2011 2010 $'000 $'000

Assets held for sale Current assets 5,623 1,933 FINANCIAL PERFORMANCE Non current assets - 1,247 Total Assets held for sale 5,623 3,180

11 CREDITORS AND OTHER PAYABLES CONSOLIDATED PARENT 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Trade payables 1,601 2,640 1,836 2,640

Other payables 4,178 3,071 3,741 2,108 SERVICE PERFORMANCE Total 5,779 5,711 5,577 4,748

12 EMPLOYEE ENTITLEMENTS CONSOLIDATED PARENT 2011 2010 2011 2010 $'000 $'000 $'000 $'000 Employee entitlements At 1 January 2,831 2,132 2,831 2,132 Additions during the year 5,580 3,571 5,482 3,571 Utilised during the year (2,951) (2,872) (2,931) (2,872) At 31 December 5,460 2,831 5,382 2,831

WINTEC ANNUAL REPORT 2011 Current portion 4,973 2,353 4,895 2,353 Non-current portion 487 478 487 478 Total 5,460 2,831 5,382 2,831

55 56 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Total Non-current portion Current portion Total Other revenueinadvance Student fees 13 REVENUINADVANCE 15,141 15,141 15,141 14,910 $'000 2011 CONSOLIDATED 231 - $'000 3,348 3,348 3,348 3,348 2010 - - 15,111 15,111 15,111 14,910 $'000 2011 201 - PARENT $'000 3,348 3,348 3,348 3,348 2010 - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

14 INVESTMENT IN ASSOCIATES

CONSOLIDATED PARENT EQUAL OPPORTUNITIES 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Vital English Limited (VE) - - - - Hamilton Fibre Network Limited (HFNL) - - - - Total - - - - FINANCIAL PERFORMANCE Movements in the carrying amount of investments Balance at 1 January - 2,604 - 2,823 New investments during the year - - - - Write-off at fair value of investments during the year - (2,604) - (2,823) Share of comprehensive income - - - - Balance at 31 December - - - -

VE (as at 31/12) HFNL (as at 30/06) SERVICE PERFORMANCE 2011 2010 2011 2010 $'000 $'000 $'000 $'000 Summarised financial information of VE and HFNL presented on a gross basis Assets - 905 - 5,704 Liabilities - 887 - 2,498 Revenues - 259 - 87 Surplus/(Deficit) - (1,025) - (414) Group's interest - 40% - 40% Share of associate's contingent liabilities incurred jointly with other investors - - - - Contingent liabilities that arise because of several liability - - - -

The Institute sold its interest in VE on 01 October 2011 and HFNL on 06 September 2011. WINTEC ANNUAL REPORT 2011

57 58 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 The InstituteandGroup havenofinanceleases. principal paymentswhentheyfalldue. TheInstitutehascompliedwithallcovenantsandloanrepaymentobligations during2011. Secured loansbecomerepayableon demand intheeventthesecovenantsarebreachedorifInstitutefails tomakeinterestand • maintain aliquidityratioof12%. • maintain accessto$7.5mofliquidity foratleast275daysinanycontinuous365dayperiod. • debtcoverratioofnomorethan1.8 times. • interestcoverratioofnolessthan3times. • cash ratioofatleast111%. • net surplusratioof3.0%. The Instituteisrequiredtoensurethatthefollowingfinancialcovenantratios forsecuredloansareachievedduringtheyear: Secured loancovenants The maximumamountthatcanbedrawndownagainsttheoverdraftfacility is$5,000,000. The overdraftandsecuredloansarebyanegativepledgeagreement betweentheBankofNewZealandandInstitute. Security The Institute'scurrentborrowingsincludingthebankoverdraftis$5,804,000 asat31December2011(2010$nil). for eachportion. capped, range,and/orfixedratesofinterest.Interestareweightedandresetmonthly,basedaccordingtotheprincipaloutstanding Secured loansareissuedusingacustomisedaveragerateloan(CARL)facilitywhichhasportionsofitsprincipaldrawndownatfloating, Secured loans Total borrowings Total non-currentportion Finance leases Secured loans Non-current Total currentportion Secured loans Bank overdraft Current 15 BORROWINGS

13,040 $'000 7,240 5,800 7,240 4,996 2011 CONSOLIDATED 804 -

10,400 10,400 10,400 $'000 2010 - - - -

13,044 $'000 5,804 7,240 5,000 7,240 2011 804 - PARENT

10,400 10,400 10,400 $'000 2010

- - - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

16 EQUITY

CONSOLIDATED PARENT EQUAL OPPORTUNITIES 2011 2010 2011 2010 $'000 $'000 $'000 $'000 General funds Balance at 1 January 96,292 93,513 96,837 94,302 Property revaluation reserve transfer on disposal - - - - Surplus / (deficit) for the year 3,380 2,781 3,380 2,535 Capital contributions from owners 454 - - - Capital contributions from the Crown - - - - Suspensory loans from the Crown - - - - FINANCIAL PERFORMANCE Transfers to restricted reserves - - - - Balance at 31 December 100,126 96,294 100,217 96,837

Property revaluation reserves Balance at 1 January 16,900 16,900 16,900 16,900 Land net revaluation gains/(losses) 10,743 - 10,743 - Buildings net revaluation gains/(losses) (7,826) - (7,826) - Infrastructure net revaluation gains/(losses) - Balance at 31 December 19,817 16,900 19,817 16,900 SERVICE PERFORMANCE Restricted reserves Balance at 1 January 126 123 126 123 Appropriation of net surplus - - - - Application of trusts and bequests 19 3 19 3 Balance at 31 December 145 126 145 126

Share capital Share capital 1 - - - Balance at 31 December 1 - - -

Non-controlling interest Balance at 1 January (62) - - - Capital contributions from owners 57 - - - Surplus / (deficit) for the year (111) (62) - - WINTEC ANNUAL REPORT 2011 Balance at 31 December (116) (62) - - TOTAL EQUITY 119,974 113,258 120,180 113,863

Property revaluation reserves consists of: Land 17,103 6,360 17,103 6,360 Buildings 2,714 10,540 2,714 10,540 Total property revaluation reserves 19,817 16,900 19,817 16,900

59 60 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 further rightsofrenewal20years. These commitmentsincludetheperpetuallyrenewableleasewithTainui for thecitycampusland.Thetermofleaseis20yearswith Total non-cancellableoperatingleases More thanfiveyears After oneyearbutnotmorethanfiveyears Within oneyear Future minimumrentalspayableundernon-cancellableoperatingleasesasat31Decemberarefollows: There arenorestrictionsplaceduponthelesseebyenteringintotheseleases. Renewals areattheoptionofspecificentitythatholdslease. These leaseshaveanaveragelifeofbetweenfourand10yearswithrenewaltermsincludedinthecontracts. interest oftheInstitutetopurchasetheseassets. The Institutehasenteredintocommercialleasesoncertainmotorvehiclesanditemsofsmallmachinerywhereitisnotinthebest been disclosedfortheentiretermoflease. date, andthedisclosurehasbeenmadewithassumptionthatallrightsofrenewalwillbeexercised-assuch,commitment The Institutehasenteredintocommercialleasesoncampusleases.isabletoexitwitharightofrenewalat Operating LeaseCommitments 17 COMMITMENTS 29,329 20,863 $'000 2011 6,950 1,516 CONSOLIDATED 28,376 21,969 $'000 2010 5,083 1,324 27,157 20,433 $'000 2011 5,273 1,451 PARENT 28,376 21,969 $'000 2010 5,083 1,324 OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Institute and Group as lessors All leases are operating leases. The majority of these leases have a non-cancellable term of 36 months, with the exception of two leases that have a non-cancellable term of 72 months. The future aggregate minimum lease payments to be collected under non-cancellable EQUAL OPPORTUNITIES operating leases are as follows:

CONSOLIDATED PARENT 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Within one year 202 40 202 40 FINANCIAL PERFORMANCE After one year but not more than five years 469 83 469 83 More than five years 539 12 539 12 Total non-cancellable operating leases 1,210 135 1,210 135

No contingent rents have been recognised in the statement of comprehensive income during the year.

Finance lease and hire purchase commitments The Institute and Group have no finance leases or hire purchase contracts. SERVICE PERFORMANCE Capital commitments At 31 December 2011 the Institute has commitments of $0.455 million (2010: $2.31million). This includes the Marae contract of $0.299m.

In April 2008, the Institute entered into an agreement with Sport Waikato whereby it has the right to buy the building that Sport Waikato has built on the Wintec campus. Sport Waikato also has the right to require the Institute to buy the building. These rights are exercisable in April 2013. The purchase price at the time will be the market value of the building with a minimum purchase price of the certified construction cost.

Contingent Assets The Institute and Group have no contingent assets (2010: nil).

Contingent Liabilities The Institute and Group have a contingent liability of $6,000 (2010: nil). WINTEC ANNUAL REPORT 2011

61 62 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Unsecured loanspayable totheInstitute Share oflossrecognised Hamilton FibreNetwork Limited Debtor forservicesprovidedbytheInstitute Services providedbytheInstitute Services providedtotheInstitute Vital EnglishLimited ASSOCITES No relatedpartytransactionswereenteredintoduringtheyear Waikato InternationalLimited No relatedpartytransactionswereenteredintoduringtheyear Wintec EducationandTrainingAssociatesLimited Debtor forservicesprovidedbytheInstitute Services providedbytheInstitute Services providedtotheInstitute Learning WorksLimited Services providedtotheInstitute Prima Limited Debtor forservicesprovidedbytheInstitute Services providedtotheInstitute Prima GroupLimited Debtor forservicesprovidedbytheInstitute Soda IncLimited Debtor forservicesprovidedbytheInstitute Donations totheInstitute Wintec FoundationTrust SUBSIDIARIES Related partytransactionswithsubsidiariesandassociates. circumstances havenotbeendisclosed. those whichitisreasonabletoexpecttheInstituteandGroupwouldhaveadoptedifdealingwiththatentityatarm’s-lengthinsame Those transactionsthatoccurwithinanormalsupplierorclientrelationshipontermsandconditionsnomorelessfavourablethan The InstituteandGroupenterintotransactionswithgovernmentdepartments,state-ownedenterprisesCrownentities. The InstituteistheparentofGroupandcontrolssevenentitieshassignificantinfluenceovertwoothers(refernote25). 18 RELATEDPARTYDISCLOSU 1,031 $'000 2011 170 764 525 132 37 51 6 ------

1,347 $'000 2010 741 106 106 10 10 90 7 ------OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Significant transactions with government related entities During the year, the Wintec Foundation Trust made a donation of The government influences the roles of the Institute as well as $50,000 for artwork at the Marae and provided a donation of $500 being a major source of revenue. to the School of Education (2010 $nil). EQUAL OPPORTUNITIES

The Institute has received funding and grants from the Tertiary During the year, the Institute and Group purchased services from Education Commission (TEC) totalling $46.714m (2010 $46.139m) Hamilton City Council on which Council Chair, Gordon Chesterman to provide education and research services for the year ending is a Councillor. These services cost $183,814 (2010 $211,539) 31 December 2011. and were supplied on normal commercial terms. There is a balance owing to Hamilton City Council at 31 December 2011 of The Institute also leases at a nil rental amount buildings legally $163 (2010 $1,533). owned by the Crown.

During the year, the Institute and Group provided services to FINANCIAL PERFORMANCE Collectively but not individually significant transactions with the Students Residence Trust of which Councillor Aaron Rink is a government related entities trustee to the value of $21,308 (2010 $142,903) . In conducting its activities the Institute and Group are required to pay various taxes and levies (such as GST, PAYE, and ACC levies) to Wintec provided accommodation and other services to the value of the Crown and entities related to the Crown. The payment of these $43,415 (2010 $32,987) to the Waikato Chamber of Commerce in taxes and levies is based on the standard terms and conditions Wintec House. Services were also received in 2011 to the value of that apply to all tax and levy payers. The Institute is exempt from $19,762. There is a balance owing to the Institute at 31 December paying income tax and FBT. 2011 of $95,641 (2010 $nil). Paul Holloway was a board member during the year.

The Institute purchases goods and services from entities related SERVICE PERFORMANCE to the Crown and it also provides services to entities related to During the year, the Institute sponsored Netball Waikato. the Crown. The purchase and provision of goods and services to Lynnette Flowers, wife of Chief Executive Mark Flowers, is the government-related entities for the year ended 31 December 2011 Chair of Netball Waikato. are small when compared to the Institute’s total expenditure and revenue and have been conducted on an arm’s-length basis. Seven Council members purchased iPads at a subsidised rate. The purchase of goods and services included the purchase of electricity from Genesis, air travel from Air New Zealand and postal services from New Zealand Post. The provision of services to government-related entities mainly related to the provision of educational courses. WINTEC ANNUAL REPORT 2011

63 64 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Key managementpersonnelincludesallmembersoftheseniorexecutive. Total Post-employment benefits Employee welfareexpenses Short termbenefits(salary) Key managementpersonnelcompensation For the year ended 31 December 2011, the Institute wrote off a debt relating to amounts owed by Vital English for $315,889 (2010 $205,000). There havebeennoguaranteesprovidedorreceivedforanyrelatedpartyreceivables. Outstanding balancesat31December2011and2010areunsecuredsettlementoccursincash. and normalcommercialterms. Providing ofancillaryservicestoandpurchasesfromrelatedpartiesaremadeinarm's-lengthtransactionsatbothnormalmarketprices Terms andconditionsoftransactionswithrelatedparties 1,902 1,902 $'000 2011 CONSOLIDATED - - 1,502 1,502 $'000 2010 - - 1,902 1,902 $'000 2011 - - PARENT 1,502 1,502 $'000 2010 - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

19 CHILDCARE SUMMARY

Actual Budget Actual EQUAL OPPORTUNITIES 2011 2011 2010 $'000 $'000 $'000 Income Government grants (children under two) 154 - 187 Government grants (children over two) 110 - 91 Government grants (free Early Childhood Education) 224 - 217 Government grants (provisionally registered teachers) 6 - -

Government grants (free subsidy) 33 - 33 FINANCIAL PERFORMANCE Incentive grant 12 - 9 Fees Work and Income New Zealand (WINZ) 161 - 160 Other fees 67 779 92 Other Trading Income 766 779 789

Expenses Staffing 631 609 605

Other Costs 76 47 75 SERVICE PERFORMANCE Other Trading Expenses 707 656 680

Trading Surplus 60 123 109

Provisionally registered teachers (PRT) support grant There were $5,627 PRT grants received in 2011 (2010 $nil). WINTEC ANNUAL REPORT 2011

65 66 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Other financialassets Debtors andotherreceivables Cash andcashequivalents Loans andreceivables FINANCIAL ASSETS Other financialassets othercomprehensiveincome Fair valuethrough Total Total Secured loans Creditors andotherpayables Bank overdraft Financial liabilitiesatamortisedcost FINANCIAL LIABITIES Total The accountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelow. 21 FINANCIALINSTRUMETCATEGORIES No significanteventsoccurredafterbalancedaterequiringadjustmentstoanyamountrecognisedinthefinancialreport. 20 EVNTSAFTERTHBALANCESEETDTE - Termdeposits - Specialfundsinvestments - Loanstorelatedparties - Governmentbonds - Listedshares - Unlistedshares 14,748 18,819 12,717 $'000 1,885 8,044 5,779 4,996 2011 CONSOLIDATED 146 38 38

- - - - 16,111 10,400 $'000 4,115 2,626 5,711 2010 626 741 122 38 38

- - - - 14,793 18,621 14,639 $'000 5,000 8,044 5,577 2011 146 38 38 8

- - - - PARENT 15,148 10,400 $'000 3,757 2,230 4,748 2010 741 664 122 38 38

- - - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

The Institute and Group do not have government bonds, Credit Risk derivatives or managed funds. Credit risk is the risk that a third party will default on its obligation to the Institute and Group, causing them to incur a loss. Due to the EQUAL OPPORTUNITIES FINANCIAL INSTRUMENT RISKS timing of its cash inflows and outflows, surplus cash is invested into term deposits which give rise to credit risk. The Institute and Group have a series of policies to manage the risks associated with financial instruments. These are averse and Currency Risk seek to minimise exposure from their treasury activities. These Currency risk is the risk that the fair value or future cash flows of a policies do not allow any transactions that are speculative in financial instrument will fluctuate as a result of changes in foreign nature to be entered into. exchange rates. The Institute and Group are not exposed to any

significant currency risk. Market Risk FINANCIAL PERFORMANCE Price Risk Fair value interest rate risk Price risk is the risk that the fair value or future cash flows of Fair value interest rate risk is the risk that the fair value or future a financial instrument will fluctuate as a result of changes in cash flows of a financial instrument will fluctuate due to changes in market prices. The Institute and Group do not hold any financial market interest rates. Borrowings and investments issued at fixed instruments which are exposed to price risk. rates of interest create exposure to fair value interest rate risk. The Institute and Group do not actively manage their exposure to Cash flow interest rate risk fair value interest rate risk. Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market The Institute and Group limit the amount of credit risk exposure interest rates. Borrowings and investments issued at variable

to any one financial institution for term deposits to no more than SERVICE PERFORMANCE interest rates create exposure to cash flow interest rate risk. 40% of total investments held. The Group invests funds only with The Institute does not generally enter into borrowing or registered banks that have a Standard and Poor’s credit rating of investments with variable interest rates. at least A+ for short term and A - for long-term investments.

The Institute and Group hold no collateral or other credit enhancements for financial instruments that give rise to credit risk. WINTEC ANNUAL REPORT 2011

67 68 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 monitoring forecastandactualcash flow requirementsandmatchingthematurityprofilesoffinancialassets andliabilitiesfor2011. can beusedforamaximumperiodof 90daysinanytwelvemonthperiod.TheInstituteandGroupmanageliquidity riskbycontinuously The InstituteandGrouphaveamaximum amountthatcanbedrawndownagainsttheiroverdraftfacilityof$5m (2010$5m).Thisfacility lines available. committed creditfacilities,andtheabilitytocloseoutmarketpositions.Flexibility infundingismaintainedbykeepingcommittedcredit Prudent liquidityriskmanagementimpliesmaintainingsufficientcash,the availabilityoffundingthroughanadequateamount Liquidity riskisthethatInstituteandGroupwillencounterdifficulty raisingliquidfundstomeetcommitmentsastheyfalldue. Management ofliquidityrisk Liquidity risk Total debtorsandotherreceivables Existing counterpartywithdefaultsinthepast Existing counterpartywithnodefaultsinthepast Debtors andotherreceivables Total loanstorelatedparties Existing counterpartywithdefaultsinthepast Existing counterpartywithnodefaultsinthepast Loans torelatedparties COUNTERPARTIES WITHCREDITRTINGS Total cashatbankandtermdeposits AA- AA Cash atbankandtermdeposits COUNTERPARTIES WITHCREDITRTINGS ratings (ifavailable)ortohistoricalinformationaboutcounterpartydefaultrates: The creditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetoStandardandPoor's 12,717 12,717 (3,111) (3,111) $'000 2011 CONSOLIDATED

- - - - - 2,626 2,626 $'000 2010 626 741 741 626

- - - 14,639 14,639 (4,992) (4,992) $'000 2011

- - - - PARENT - 2,230 2,230 $'000 2010 741 741 664 664

- - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Contractual maturity analysis of financial liabilities, excluding derivatives The table below analyses financial liabilities (excluding derivatives) into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the floating rate on the EQUAL OPPORTUNITIES instrument at the balance date. The amounts disclosed are the contractual undiscounted cash flows.

Carrying Contractual <6 months 6-12 months 1-2 years 2-3 years >3 years amount cashflows $'000 $'000 $'000 $'000 $'000 $'000 $'000 Institute 2011 Bank overdraft 5,000 5,000 5,000 - - - -

Creditors and other payables 5,577 5,577 5,577 - - - - FINANCIAL PERFORMANCE Accrued pay 819 819 819 - - - - Secured loans 8,044 8,044 - - - - 8,044 Total 19,440 19,440 11,396 - - - 8,044

Group 2011 Bank overdraft 4,996 4,996 4,996 - - - - Creditors and other payables 5,779 5,779 5,779 - - - -

Accrued pay 819 819 819 - - - - SERVICE PERFORMANCE Secured loans 8,044 8,044 - - - - 8,044 Total 19,638 19,638 11,594 - - - 8,044

Institute 2010 Creditors and other payables 4,748 4,748 4,748 - - - - Accrued pay 620 620 620 - - - - Secured loans 10,400 10,400 - - - - 10,400 Total 15,768 15,768 5,368 - - - 10,400

Group 2010 Creditors and other payables 5,711 5,711 5,711 - - - - WINTEC ANNUAL REPORT 2011 Accrued pay 620 620 620 - - - - Secured loans 10,400 10,400 - - - - 10,400 Total 16,731 16,731 6,331 - - - 10,400

Contractual maturity analysis of derivative financial liabilities The Institute and Group do not have derivative financial liabilities.

69 70 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 contractual maturitydate: The tablebelowanalysesfinancialassetsintorelevantmaturitygroupingsbasedontheremainingperiodatbalancedateto Contractual maturityanalysisoffinancialassets Institute 2011 Group 2011 Institute 2010 Group 2010 Cash andcashequivalents Debtors andotherreceivables Government bonds Term deposits Total Cash andcashequivalents Debtors andotherreceivables Government bonds Term deposits Total Cash andcashequivalents Debtors andotherreceivables Government bonds Term deposits Total Cash andcashequivalents Debtors andotherreceivables Government bonds Term deposits Total

Carrying amount 14,647 14,602 14,639 12,717 $'000 3,043 3,252 1,885 2,379 2,626 664 626 8

- -

- -

- - - - Contractual cashflows 14,647 14,602 14,639 12,717 $'000 3,043 3,252 1,885 2,379 2,626 664 626 8 ------<6 months 10,333 10,288 10,325 $'000 2,531 2,740 1,885 8,403 1,867 2,626 664 114 8 ------6-12 months $'000 4,294 4,294 4,294 4,294 111 111 111 111 ------1-2 years $'000 401 401 401 401 20 20 20 20 ------2-3 years $'000 ------>3 years $'000 ------OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Sensitivity analysis The tables below illustrate the potential surplus or deficit and equity (excluding general funds) impact for reasonably possible market movements, with all other variables held constant, based on financial instrument exposures at the balance date. EQUAL OPPORTUNITIES

2011 2010 $'000 $'000

Surplus -50bps Surplus +50pbs Surplus -50bps Surplus +50bps Other equity Other equity Other equity Other equity INTEREST RATE RISK Institute FINANCIAL PERFORMANCE

Financial Assets Cash and cash equivalents 25 - (25) - - - - -

Financial Liabilities Secured loans 40 - (40) - 50 - (50) - Total sensitivity 65 - (65) - 50 - (50) - SERVICE PERFORMANCE INTEREST RATE RISK Group

Financial Assets Cash and cash equivalents 25 - (25) - (7) - 7 -

Financial Liabilities Secured loans 40 - (40) - 50 - (50) - Total sensitivity 65 - (65) - 43 - (43) -

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, WINTEC ANNUAL REPORT 2011 measured as a basis points (bps) movement. For example a decrease in 50bps is equivalent to a decrease in interest rates of 0.5%.

Interest on financial instruments, classified as floating rate, is re-priced at intervals of less than one year. Interest on financial instruments classified as fixed rate until maturity of the instrument.

The other financial instruments of the Institute that are not included in the above tables are non-interest bearing.

71 72 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 -  - increaseinpersonnelcostsassociatedwithhigherstudentnumbers core programmesandisoffsetbyhigherrevenuestreams. - $1.2massociatedwithWITTandNMITdeliveryisoffsetbyrevenueincreases. -  Main operatingexpenditurevariancesareasfollows: prior year. Total operatingcostsfortheperiodending31Decemberwere$78.7mwhich is$8.2munfavourabletobudgetand$1.4mfavourablethe Operating Costs - Otherrevenue$0.5mbetterthanbudgetduetoPINZ$0.5million(unbudgeted)aspartoftheSaudiproposal. - ITOfees($0.2munfavourable)–duetoadropinvolumes. -  The maincontributingfactorsare: Year todaterevenuewas$82m,whichis$3.7m(4.7%)favourablebudgetand$0.6mlowerthantheprioryear. Revenue 23 PERFORMANCEAGAINSTBUDGET Total Other services Internal auditservicesnotprovidedbyAuditNZ Prior yearauditcosts Audit offinancialstatements 22 AUDITORS'REMUNERATION modernisation andwirelessprogrammes). accelerated implementationofinformationtechnologyprojects(offsetby highercapitalprojectexpendituretoincreaseourPC expected tooccurin2012. $5.4m unfavourablerelatestothevarianceinsaleofproperty,plantand equipmentduetothetimingoflandsaleswhichare attract highertuitionfees. Tuition fees($1.2mfavourableand$3.1mtotheprioryear)–dueacombinationofhigherenrolmentsincoursesthat $'000 2011 219 112 CONSOLIDATED 69 38 - $'000 2010 168 107 38 23 -

$'000 2011 219 112 69 38 - PARENT $'000 2010 168 107 38 23 - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Staffing Costs Current Liabilities Total staffing costs were $46.682m for the year, $4.445m more Current liabilities amount to $31.4m against budget of $9.1m and than budget, and $3.1m more than the prior year of which $1.1m the prior year of $10.4m. The main contributor to the liability is EQUAL OPPORTUNITIES related to leave accruals (leave taken in January 2012 rather than fees revenue received in advance of $12m (which also explains the December 2011) and a favourable restructuring variance increase in our student debtors), relating to 2012. In the prior year of $0.035m. we did not recognise this liability.

Excluding holiday pay accruals and restructuring for the period up Statement of Cash Flows to December were $42.7m which is $1.1m unfavourable to budget. Cash balances as at 31 December is $5.0m overdrawn against a budget of $2.5m. The unfavourable variance of $7.5m can be ICT Projects (Capital Expenditure) explained as follows:

ICT projects total $5.01m and are overspent by $1.0m for the year. FINANCIAL PERFORMANCE This was due to inclusion of a new Mac lab for Media Arts in the - Operating flows of $0.5m decreased compared to budget, strategy due to increased student numbers, the acceleration of reflects the increase in tuition fees. This is partially offset by the PC replacement and wireless campus programmes (again to increased expenditure associated with higher revenue streams. accommodate increases in student numbers). The increased data - Investment flows of $5.1m decrease in cash due to delay in land centre costs reflect the higher than expected number of servers sales $8m and their complexity, the remediation of network infrastructure - Financing activities of $2.3m decreased due to repayment and a different resource mix than planned (requiring a higher use of debt. of external labour rate rather than in-house staff). SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011

73 74 WINTEC ANNUAL REPORT 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 The increaseinCouncillorfeesrelatestoGovernmentapprovedchanges to theCouncilfeestructurethatappliedallITPs. *Members ofcouncilasat31December2011. Total CouncillorsFees Yeung, Deniss Yates, Dianne* Tucker, Steve* Rink, Aaron* Papa, Rahui Moana-Tuwhangai, Maxine* Mackenzie, Sam Cooper, Bryce* Chesterman, Gordon(Chair)* Cave-Palmer, Mary* Bernards, Kristi Bennett, Jim Baddeley, Clint* Income Council Member The followingfeeswereearnedbymembersofCouncilduringtheyear: 24 COUNCILLORSFEES 140,064 ACTUAL 16,000 16,400 16,400 16,000 32,347 20,134 18,073 2011 4,710 $ - - - - - 114,882 ACTUAL 12,586 12,586 12,266 12,266 29,785 16,169 12,931 2010 1,920 2,453 1,280 $ 640 - - OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

25 DETAILS OF HOLDINGS IN SUBSIDARIES AND ASSOCIATES EQUAL OPPORTUNITIES Subsidiary/Associate/Joint Venture Percentage % Balance Business Activity Ownership Date

Wintec Soda Inc. Ltd** 60% 31/12 Creative industries business incubator Motortrain Limited (Joint Venture) 25% 31/12 Developing training materials for motor industry training Wintec Foundation Wintec Foundation 100% 31/12 Charitable Trust Prima Group Ltd*** 100% 31/12 Investment Holding Company FINANCIAL PERFORMANCE Prima Ltd* 100% 31/12 Identifying and commercialising intellectual property Learning Works Ltd* 100% 31/12 Developing and delivering training to industry Wintec Education and Training Associates* Ltd 100% 31/12 Investment Holding Company Waikato International Ltd* 100% 31/12 Investment Holding Company

*100% owned by Prima Group Ltd **60% owned by Wintec ***100% owned by Wintec Foundation SERVICE PERFORMANCE WINTEC ANNUAL REPORT 2011

75 76 WINTEC ANNUAL REPORT 2011 2011 statement of service performance WINTEC’S INVESTMENT PLAN KEY PERFORMANCE INDICATORS the achievementofourstrategicpriorities. range ofKPIsagainstwhichwemeasure complete setofindicatorsensuresabroad complement theInvestmentPlanKPIs.This Wintec’s annualbusinessplanto Additional KPIsaredevelopedthrough by TECin2009andreleasedannually. Performance Indicators(EPIs)introduced of indicatorsincludestheEducational with Wintec’sstrategicdirection.Theset were establishedtoensurealignment period. Insomecasesstretchtargets in 2010fortheentireInvestmentPlan sector. BasetargetsfortheKPIswereset This isthesecondInvestmentPlanfor greater organisationalefficiency. financial sustainabilityandsecuring infrastructure and facilities; and increasing outcomes; improvingthelevelof employers; drivingimprovededucational of theregion’slearners,communities, provision whichisrelevanttotheneeds progress, andsuccess,in:deliveringquality The KPIsseektodemonstrateWintec’s of theInvestmentPlan(2011–2013). between WintecandTECfortheperiod performance commitmentsagreed organisational performanceandspecific (KPIs) designedtomeasureoverall It containskeyperformanceindicators Tertiary EducationCommission(TEC). (Wintec’s) fundingagreementwiththe The InvestmentPlanistheInstitute’s interest toWintec. participation ofthevarioussub-groups level 4+hasledtochangingpatternsof enrolments betweenlevels1-3and This patternofmarkedchangesin are expectedtogrowincomingyears. government’s policyonyouthguarantees, some areas,forexamplethoserelatingto reductions tolevel1-3provision,and overall provision.Wedonotplanfurther constitutes asmallerproportionofour We remaincommittedtothis;itnowsimply maintained, andinsomecaseshasgrown. level 1-3programmeshasinfactbeen Importantly, themajorityofourprevious been strongdemandinrecentyears. into level4+provisionwheretherehas with TECwere,inthemain,redirected freed upunderourEFTScapagreed outcomes. Theenrolmentsthesechanges emphases, orhadcomparativelypoorer with changinggovernmentpolicy which wereclosedeitheralignedpoorly provision wasatlevels4+.Theprogrammes completed, in2011andasresult,81%ofall This processwasaccelerated,and 1-3, somewithconsiderableenrolments. of asmallnumberprogrammesatlevels This hasrelated,inthemain,toclosure decreasing volumesatlevel1-3continued. of enrolmentsinlevel4+provision,and In 2010,thetrendofincreasingvolumes PARTICIPTION ANDPROVISIO year-on-year improvementsince2008. on 2010,andthiscontinuesthepatternof achieved, theresultwasa10%increase and, whilethetargetfor2011wasnot grow. Wesetambitiousgrowthtargets International educationhascontinuedto (Wintec’s newmarae). and experience,centredonTeKopuMania to enhanceMa¯ori studentachievement a numberoftargetedinitiativesin2012 higher levelsoftheframework.Thereare to increaseparticipationandoutcomesat terms, inkeepingwithWintec’sstrategy grew inreal(ratherthanproportionate) for thesegroupsatlevel4andabove programmes. However,totalenrolments accelerated closureoflow-levelcontract for Ma¯ori, primarilyasaresultofthe for theunder-25studentsubgroupand Participation atlevels1-3hasdeclined especially atthepriorityareaoflevel4+. Participation overallwaspositive, OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Indicator(s) Audited Target 2011 Comment 2010 Outcome

Outcome EQUAL OPPORTUNITIES Proportion of SAC eligible EFTS n/a 80%+ 81% Target achieved – reflecting strong growth in degree delivered at level 4+ provision in particular. Proportion of SAC Eligible EFTS Total n/a ≥67% 63% Target missed mainly due to the decline in level 1-3 enrolled who are aged under 25 (see below). Level 1-3 n/a ≥15% 13% The accelerated closure of subcontracted provision impacted on this result. Level 4 & above n/a ≥52% 50% Target narrowly missed due to higher than expected

growth in over-25 enrolments at level 4+. FINANCIAL PERFORMANCE Proportion of SAC Eligible EFTS Total n/a ≥25% 24% Target has been narrowly missed despite Ma¯ori enrolled who are Ma¯ori enrolments increasing by 3% overall - because of even stronger growth elsewhere. Level 1-3 n/a ≥6% 6% On target, although actual enrolments decreased in line with the overall reduction in level 1-3 provision. Level 4 & above n/a ≥19% 18% 2012 activity to increase Ma¯ori enrolments includes partnership initiatives with Tainui, increased Ma¯ori trades training and projects to improve Ma¯ori retention (e.g. Ma¯ori mentoring). Proportion of SAC Eligible EFTS Total n/a 4% 4% Target achieved. SERVICE PERFORMANCE enrolled who are Pasifika Level 1-3 n/a 1% 1% Target achieved. Level 4 & above n/a 3% 4% Target achieved. Number of international EFTS 555 ≥650 608 The final result, although short of the stretch target set, represents a 10% improvement on the 2010 outcome. We intend to continue building our international numbers in 2012 by further diversifying our markets and increasing our partnerships with offshore institutions. Percentage of SAC funded TEC 85% ≥90% 92% Target exceeded. This is a 7% improvement on the 2010 students in employment or further outcome and a positive result given that outcomes for study 6 months after completion this indicator had been declining since 2008. Percentage of region's school 19% ≥16% 19% Outcome has exceeded target. Growth in the leavers from preceding year conversion of school leavers into enrolments has lifted WINTEC ANNUAL REPORT 2011 attending Wintec in preceding or significantly in the last 3-4 years, as reflected in the current year absolute growth in enrolments of under-25s. Percentage of region's outlying 12% ≥12% 13% As above, indicating that, although conversion of school leavers from previous year outlying school leavers remains lower than the attending Wintec in preceding or regional average, it has been improving. current year

77 78 WINTEC ANNUAL REPORT 2011 2011 statement of service performance WINTEC’S INVESTMENT PLAN KEY PERFORMANCE INDICATORS for allstudents(SACeligibleEFTS) Successful coursecompletionrate Indicator(s) reflected inthequalificationcompletion they enrol.Thisoutcome,however,isnot completing thequalificationsinwhich the percentageofstudentsactually qualification completionindicator– retention isanimprovementinthe course completionsandimproving The logicalendpointofliftingsuccessful the lasttwoyears. reflecting ourinvestmentinthisareaover improvement inourstudentretentionrate qualifications. Therehasbeenasignificant many morestudentsforlongerwithintheir individual courses,wearealsoretaining successfully completingmoreoftheir Not onlyhavemorestudentsbeen outcomes atthehigherlevelsofprovision. support government’semphasisonraising rates atlevel4andabove,inparticular, all studentsubgroups.ImprovedSCC successful coursecompletions(SCC)across results. Thishasbeenledbyexcellent performance inthesector-wideEPI been strong–asreflectedbyWintec’s Overall, educationalperformancehas EDUCATIONAL OTCOMES Level4&above Level1-3 Total set acrossboththelast,andcurrent for liftingMa¯ori outcomeshavebeen significantly. Someambitioustargets the whole,increased;insomecases Outcomes achievedbyMa¯ori have,on of provision. good, again,especiallyatthehigherlevels outcomes theyareachievingalsovery in thehigherlevelsofprovision,but participation atWintecgrowing,especially the under-25sub-group.Notonlyistheir Good outcomesarebeingachievedby and retentiontendtosupportthis. improvements inbothcoursecompletions has improvedoverrecentyears.The that underlyingactualperformance performance, onacohortbasis,suggests Our ownanalysisoflikelyunderlying growing dramaticallyoverthelast3years. programmes attheselevelshavebeen level orhigher,andtheenrolmentsin almost halfofallprovisionatdegree year qualifications.AtWintecwehave changes inenrolmentlevelsacrossmulti- this EPIdoesmeanitissusceptibleto rate indicator.Themethodologyunderlying Outcome Audited 2010 n/a n/a n/a Target ≥77% ≥79% ≥67% Outcome 2011 79% 81% 68% A goodresultwithalltargetsexceeded. Comment in enrolmentsthis levelinrecentyears. of higherlevelprovision withtheTES,andincrease A verypositiveresult, especiallygiventheimportance Target achieved. for ourMa¯ori learners. committed toclosingthesegaps,aswedo also lagoutcomesingeneral.Weremain like theMa¯ori outcomesmentionedearlier and improvePasifikaoutcomes,which, mechanisms inplaceatWintectosupport a rangeofpartnershipsandsupport extremely pronetofluctuations.Wehave which makestheresultingindicators less than5%oftheregion’spopulation) numbers involved,(Pasifikacomprise This ispurelyduetotherelativelysmall at thelevelofInvestmentPlan. separate outcomesindicatorsforthem for Pasifikastudents,wedonotset While wehaveparticipationindicators institution asweseektoliftitfurther. focus onMa¯ori achievementacrossthe average sectoroutcomes,wecontinueto Ma¯ori overallcomparefavourablywith recent years.Andwhileouroutcomesfor such agapstillremains,ithasclosedin by Ma¯ori, andstudentsasawhole.While ‘close thegap’betweenoutcomesachieved investment planperiodsasweseekto OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Indicator(s) Audited Target 2011 Comment 2010 Outcome

Outcome EQUAL OPPORTUNITIES Successful course completion for Total n/a ≥75% 77% Very good course completions achieved for students (SAC eligible EFTS) aged U25s overall, lifted particularly by the very high under 25 completion rates at level 4+, where the majority of these enrolments lie. Level 1-3 n/a ≥67% 68% Target achieved. Level 4 & above n/a ≥78% 79% This is extremely positive given the very strong growth in enrolments in this group in recent years.

Successful course completion for Total n/a ≥68% 70% A good result led especially by outcomes at level 4+. FINANCIAL PERFORMANCE Ma¯ori students (SAC eligible EFTS) Level 1-3 n/a ≥60% 57% Closure of well performing sub-contracting programmes that did not pathway to level 4+ led to this indicator not being achieved. In 2012 we intend to implement learning support for targeted Ma¯ori cohorts to lift successful course completing results. Level 4 & above n/a ≥71% 74% A strong result. Successful course completion rate – n/a 85% 87% Target achieved. International students SERVICE PERFORMANCE Student retention rate for all n/a ≥51% 58% Final result has exceeded target by 7%. students (SAC Eligible student count) This reflects the major improvements in student retention achieved over the last two years. Qualification completion rate for all Total n/a ≥70% 58% This indicator has methodological flaws. These are students (SAC eligible EFTS) being highlighted by the particularly strong, and Level 1-3 n/a ≥57% 49% continued, growth in degree programme EFTS of 64% from 2008 to 2011. Level 4 & above n/a ≥74% 60% Qualification completion for students Total n/a ≥63% 51% Analysis of degree programmes (where the bulk (SAC eligible EFTS) aged under 25 of enrolments lie, and which are most affected Level 1-3 n/a ≥49% 43% by this indicator), was undertaken on a cohort Level 4 & above n/a ≥63% 53% basis for 2008 and 2009 intakes (i.e. where students could be expected to complete in 2010

Qualification completion for Ma¯ori Total n/a ≥62% 48% WINTEC ANNUAL REPORT 2011 and 2011 respectively). This indicates that degree students (SAC eligible EFTS) completions actually improved by 2% over that Level 1-3 n/a ≥53% 35% time. TEC are seeking to improve the indicator. Level 4 & above n/a ≥66% 52% Student progression for all students n/a ≥38% 42% This result, for the 2010 cohort progressing into (SAC eligible student count) at 2011, is based on draft EPI outcome data. It is levels 1-3 subject to final confirmation by TEC but unlikely to change.

79 80 WINTEC ANNUAL REPORT 2011 2011 statement of service performance WINTEC’S INVESTMENT PLAN KEY PERFORMANCE INDICATORS and NumeracyforAdultsAssessmentTool. numeracy progressasmeasuredbytheLiteracy in level1-3provisionandmakeliteracy additional literacyandnumeracywhoareenrolled The proportionofEFTSassessedasrequiring contain embeddedliteracyandnumeracy The proportionoflevel1-3coursesofferedthat Indicator(s) 100% coverageunderthereviseddefinitiontobeachievedearlyin2012. Good progresshasbeenmadetowardthistarget.Atyearend,89%oflevel1-3courseshaveembeddedliteracyandnumeracywith support. TEChassincedeterminedthatliteracyandnumeracyembeddingshouldbeextendedtoallindividualcoursesatlevel1-3. programmes atlevels1-3.Thistargethasbeenachievedandconsequentlyallstudentslevel1-3arereceivingliteracynumeracy The intentionofTEC’sliteracyandnumeracyembeddingprojectwhenitwasfirstimplemented100%coverageallWintec LITERACY ANDNUMEREMBEDDING Outcome Audited 2010 n/a n/a once NationalAssessment Tool implementedin2011 Indicator tobedeveloped and benchmarkdata becomes available Target 100% Outcome 2011 89% n/a implemented for2012. the measurewillbedefinedand for 2011.TEChaveindicatedthat This indicatorwasnotdeveloped be achievedearlyin2012. under thereviseddefinitionto and numeracy with 100% coverage courses haveembeddedliteracy At yearend,89%oflevel1-3 Comment

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

CUSTOMERS AND STAKEHOLDERS

Our aim is for regional, national and international recognition of the quality of our graduates, educational products, and related services. EQUAL OPPORTUNITIES Effective engagement with employers, industry and our community ensures our provision of education and services is driven by the needs of the region, and helps deliver employer-preferred, work-ready graduates. All targets for this set of indicators were achieved or exceeded. International students were retained in study and performed above target in terms of course completions while Pasifika student participation achieved target for a second consecutive year. Overall we delivered 81% of SAC eligible EFTS at level 4 or above, reflecting our drive for work-ready graduates who are achieving at higher levels of the framework.

Annual surveys are an important mechanism for gauging customer satisfaction and engagement with key stakeholder groups. Targets have been exceeded for all indicators for a second year in a row, indicating high levels of satisfaction are being maintained for students and key customers. FINANCIAL PERFORMANCE

Indicator(s) Audited Target 2011 Comment 2010 Outcome Outcome Student satisfaction 91% ≥90% 92% This result is a 1% improvement on the 2010 outcome. Graduate satisfaction 92% ≥80% 92% 2010 graduate satisfaction levels have been maintained in 2011. Employer and industry satisfaction 91% ≥90% 92% Achieved on the basis of the results being recalculated to exclude the “neither satisfied nor

dissatisfied” responses. The recalculation of the SERVICE PERFORMANCE results on this basis has been our reporting practice for a number of years and the target was set on this same recalculated basis.

The actual result before recalculation is: Satisfied 78% Neither satisfied nor dissatisfied 16% Dissatisfied 7%

The final outcome is a 1% increase on the previous year’s result. Employer Partnership Group (EPG) satisfaction 95% ≥90% 91% Target exceeded. WINTEC ANNUAL REPORT 2011

81 82 WINTEC ANNUAL REPORT 2011 2011 statement of service performance WINTEC’S INVESTMENT PLAN KEY PERFORMANCE INDICATORS collaboration withindustry/community and Transferactivityundertakenin Percentage ofResearch,Development set outbelowrepresentourexpected revenuestreams,expenditureanddebtfacility. our reputationasanefficient,effective andmodernorganisation.Wehavesetourselvesapathofcontinuous modernisationandtargets better thantargetoperatingsurplus. Therehasbeensomeincreaseinpersonnelcostsassociatedwithobtaining theincreasedrevenue. The improvedrevenuestreamsarepredominately drivenbyhighertuitionfeesandotherrevenuestreams thishasresultedinour of continuousmodernisationandtargetssetoutbelowrepresentourexpected revenuestreams,expenditure,anddebtfacility. and on-going sustainability to support our reputation as an efficient, effective and modern organisation. We have set ourselves on a path The followingindicatorsrepresentthefinancialperformanceofWintec Parent.Weintendtoachieveapositionoffinancialviability FINANCE, CAPITALSSETSANDPERFORMCE contracts gained Value ofexternal(non-PBRF)research PBRF researchrevenue output Average weightedPBRFpointsper PBRF weightedpoints Indicator(s) been achieved.Additionally,externalrevenueincomeisbeginningtogrow. It ispleasingtonotethattheoverallqualityofoutputsbeingmaintainedwhileasignificantgrowthinvolumehas Research targetshavebeenexceeded,indicatingthatthebuildingofinstitutionalresearchcapacityandcapabilityisoccurring. RESEARCH Number ofresearchoutputs $611,420 Outcome $11,500 Audited 1,270 2010 30% 505 2.5 $600,000 $80,000 Target 1,180 32% 392 3.0 $607,000 Outcome $87,000 1,622 2011 32% 545 3.0 been compromisedasgrowthinoutputshasachieved. target reflectsthattheoverallqualityofoutputshasnot the numberofresearchoutputs.Theachievement This iscalculatedbydividingthetotalweightedpoints proportion ofresearchactivitybeingdrivenbyindustry. Achieved. Thiscontinuesthepatternofasignificant research incomeisachievingpositiveresults. $75,500, indicatingthatthestrategyforrebuildingexternal Year-end positionhasimprovedonthe2010outcomeby All plannedPBRFincomehasbeenreceived. significantly abovelastyear’sresult. Target wellexceeded.Thetotalweightedoutcomeis improvements areproducinghighqualityoutputs. in researchtime,moreeffectiveresearchersandsystem research activityhasbeensuccessful.Greaterinvestment This indicatesthattheworkoflasttwoyearstorebuild Year endresultisanimprovementof8%over2010. Comment

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

Indicator(s) Audited Target 2011 Comment 2010 Outcome

Outcome EQUAL OPPORTUNITIES Operating surplus (before n/a > 3.2 4.2 Target exceeded though increased revenue stream from student revaluations, land sales and asset and and fees (volume growth) and contained delivery costs. disposals/write downs) ($m) and % 4.1% 5.1% EBITD (Earnings before Interest, Tax, n/a > 10.8 10.9 Achieved. Depreciation and abnormals) ($m) TEO risk rating against the Financial n/a Medium Low Current rating by TEC for 2010 is Low. We have forecast our 2011 Monitoring Framework position as low due to the improved operating surplus.

Percentage of agreed TEC SAC n/a = 100% 100% 100% of funding received. FINANCIAL PERFORMANCE funding achieved Domestic fees revenue ($m) 17.3 > 18.2 20.4 Increased proportion of students in higher-fee programmes than assumed in budget. International fees revenue ($m) 7.5 > 8.4 7.5 Overall volumes slightly lower than stretch target assumed. ITO revenue (Sm) 3.1 > 3.0 2.8 Combination of lower numbers and reduced class occurrences as ITO trainee numbers continued to decline in 2011. Other revenue ($m) n/a > 3.9 3.9 At target. Total revenue ($m) 82.6 > 78.4 82.0 Exceeded target due to higher fees revenue than assumed and the

receipt of other revenues confirmed after the budget was set (which SERVICE PERFORMANCE also resulted in higher than budgeted expenditure - see below). Personnel ($m) 43.6 < 41.6 46.7 Higher leave balances occurred in December. Reclassification of risk pay component. Actual result includes salary and wages from our trading activities of $1.4 million which was excluded from our target. The increase in personnel costs is offset by increased revenue streams. Depreciation ($m) n/a < 7.0 6.0 Timing of capital spend has resulted in a lower depreciation spend. Total expenditure ($m) 75.5 < 75.1 78.6 Mainly due to the addition of expenses related to additional revenues received that were not confirmed at the time the budget was set. Depreciation as a percentage of n/a < 9.3% 7.6% Lower due to increased expenditure compared to budget as well as a expenditure lower depreciation charge than budget. Debt/Equity 9.1% < 11.0% 6.7% Driven by higher equity through increase in valuations. Net cashflow from operations n/a >116% 114% TEC guideline is: net cashflow from operations should be greater

than 111%. WINTEC ANNUAL REPORT 2011

83 84 WINTEC ANNUAL REPORT 2011 2011 statement of service performance WINTEC’S INVESTMENT PLAN KEY PERFORMANCE INDICATORS Working capitalratio Interest cover Debt cover Liquid assets Indicator(s) implementation Capital AssetManagementSystem Maximum aggregateborrowing($m) Maximum termborrowing($m) Outcome Audited 0.47:1 2010 n/a n/a n/a n/a n/a n/a >0.61:1 Target >12% <11.0 <13.0 >7.0x <1.2x n/a Outcome 0.48:1 2011 8.2% 13.0 7.8x 0.7x n/a 8.0 Lower borrowingandinterestrates. Lower termdebtoffsetbyuseofoverdraftfacility. in useofoverdraftfacilityhasresultedlowerliquidassets. Timing incashreceiptsfromlandsalesandcorrespondingincrease Comment It is intended that all CAMS attributes be rated at core or above in 2013. Other significantCAMSactivityundertakenin2011included: undertaken included: With respecttothedescriptionofassets,activities generally, andthedescriptionofassetsinparticular. was undertakenin2011tofurtherstrengthenCAMSperformance was assessedatbelow‘core’performance.Significantactivity was verypositiveoverall.Onlyoneattribute,‘descriptionofassets’ An externalreviewofsectorCAMScapability,undertakenin2010, December period. increased useofoverdraftfacilitytomanageworkingcapitalthe Primarily drivenbylowercashreceiptsinlandsalesandtherefore Lower debtlevelsduetohigheruseofoverdraftfacility. December period.Ratioexcludeslandheldforresale. increased useofoverdraftfacilitytomanageworkingcapitalthe Primarily drivenbylowercashreceiptsinlandsalesandtherefore ii. i. iii.  ii. i. Rotokauri campuses. A seismicauditundertakenofbuildingsontheCityand Rotokauri campuses. Space utilisationauditsundertakenonCityand Asset ManagementSystem. Plant andEquipmentassetshavebeenincorporatedintothe the CityandRotokauricampuses. A physicalsurveyofallin-groundserviceswascarriedoutfor reviewed andupdated. As-built drawingsofthetotalbuildingstockhavebeen

OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

HUMAN RESOURCES, ASSETS

We intend to be an organisation characterised by high-performing staff who are well supported in their activities by advanced EQUAL OPPORTUNITIES infrastructure, processes and facilities. Our approach to quality is articulated in the WinQual Excellence Framework and we aim to embed a culture of continuous improvement across the organisation to ensure high standards of quality in all that we do. We are committed to our goal of growing regional success through applied research, development and technology transfer. The overall positive outcomes of this set of indicators represents our continuing focus on building staff capability and identifying organisational efficiencies.

Indicator(s) Audited Target 2011 Comment 2010 Outcome Outcome Personnel as a % of revenue 52.7% 54.0% 54.2% Represents the increased efficiency of delivery (average class FINANCIAL PERFORMANCE Personnel as a % of expenditure 57.7% 56.0% 56.5% size efficiencies) as the proportional increase in revenue is greater than the proportional cost of delivery. Personnel costs per n/a $67,258 $69,617 Higher average costs associated with wage negotiations and full time equivalent (FTE) wage pressure on replacement staff starting salaries. Deliver technology training programme n/a 95% 95% Target has been achieved. to 95% of academic staff by Dec 2011 as part of the technology training strategy. Improve academic staff confidence with n/a 25% 20% End of year result fell short of the stretch target set however learning technologies by 25% against strong staff participation in technology training this year

2010 capability reports as part of the has resulted in a 20% increase in technology confidence over SERVICE PERFORMANCE technology training strategy. 2010 levels. EFTS: Academic staff FTE ratio 19.0:1 18.6:1 19.5:1 Reflects ongoing efficiencies through increased average class (excluding online EFTS) sizes as enrolments in core programmes continued to grow. Employee engagement n/a 2011 action Action plan is progressing well with good communication plan developed to staff. Key activities include the rollout of the new values, from the staff the new team manager structure, and the launch of the focus groups and management and leadership development programme implemented for 2011. WINTEC ANNUAL REPORT 2011

85 86 WINTEC ANNUAL REPORT 2011 ACKNOWLEDGEMENTS – –  –  –  – –  – – THE SUPPORTOF: WINTEC GRATEFULLYCKNOWLEDES support ofouractivities. The GallagherGroupforitsongoing Innovation Waikato. Enterprise NewZealandand provided student exchange opportunities. Canada, FranceandDenmarkwho Our internationalpartnersinKorea, for Thailand. University MalaysiaandtheDeansCouncil Our internationalpartnersatOpen Institute ofTechnology,Kharagpur. Our internationalpartnersattheIndian Conservatory ofMusic. Engineering SchoolandSichuan Technology, Shanghai Urban Construction Shandong InstituteofCommerce& Nanhai InformationTechnologySchool, Technical School,ChangshaUniversity, 1 VocationalCollege,BoLun& University ofTechnology,ShenzhenNo Hospital, SanjiangUniversity,Shandong Normal University, Peking University Third including ChengduUniversity,Hebei Our internationalpartnersinChina development. contribution totheWintecHouse Gordon HassettfromKlu’dupforhis needs ofemployersintheregion. and trainingarecurrentmeetthe enabling ustoensureourqualifications community expertiseandsupport, members foralloftheirindustryand Our 300EmployerPartnershipGroup –  –  –  – – – – – and studentplacements inhealthcare. K’aute Pasifikaforitsstudentsupport Waikato region. innovation andentrepreneurshipin partners fortheircontributionto SODA Incanditsstakeholders engagement withWintec. not-for-profit partnersfortheirongoing Trust, andSportWaikatoasourstrategic Habitat forHumanity,CommunityLiving support ofoursatellitecampuses. Coromandel DistrictCouncilsfortheir The Otorohanga,WaitomoandThames development activities. Inc., andarangeofotherplanning including campusdevelopments,SODA participation inarangeofprojects Hamilton CityCouncil,forits engagement initiatives. our businessdevelopmentandregional Development Boardfortheirsupportof Council &OtorohangaDistrict Seafood ITO,OtorohangaDistrict Development Group,AquacultureNZ, Prison), HaurakiCoromandel Department ofCorrections(Springhill business hublocatedatWintecHouse. and partnershipintheinnovative Chamber ofCommercefortheirsupport Opportunity HamiltonandWaikato continuing supportandcooperation. in theAgritecCentreTokanui,fortheir for 21stCenturySchools,ourpartners Park, AgricultureITOandtheCoalition Dairy NZ,AgResearch,WaikatoInnovation – – – – – –  –  –   Aotearoa. University ofWaikato,TeWa¯nanga o Marlborough InstituteofTechnology, Taira¯whiti Polytechnic, Nelson Our otherITPandTertiarypartners: Polytechnic and Bay of Plenty Polytechnic. of TechnologyatTaranaki,Whitireia Institute ofTechnology,Western Our MECAITPpartners:NorthTec,Unitec Polytechnic. Institute ofTechnologyandOtago Institute ofTechnology,Wellington Technology, ChristchurchPolytechnic of Technology,ManukauInstitute Our MetroITPpartners:UnitecInstitute complete journalisminternships. Fairfax Ltd,forenablingourstudentsto development advice. of regionalinitiativesandplanning Enterprise fortheirsupportwithahost Development, NewZealandTradeand Department ofLabour,MinistrySocial District HealthBoardMoodleproject. participation andsupportoftheWaikato Lakes DistrictHealthBoardfortheir Chinese communities. the Somali,Korean,Filipino,Pasifikaand from avarietyofethnicgroupsincluding opportunities thatbenefitourstudents internships andemployment Partnerships whichincludescholarships, to pathwaystudentsintoWintec. establishments (PTEs)whoworkwithus Waikato-based privatetraining OVERVIEW CHAIR’S & CE’S REPORT MEMBERS OF COUNCIL HIGHLIGHTS

– Waikato District Health Board, Hawkes School, Te Kauwhata College, Bay District Health Board and Bay of Te Awamutu College, Matamata College, Plenty District Health Board for their Morrinsville College, and Fraser EQUAL OPPORTUNITIES assistance in delivery of education High School. relating to health/nursing/midwifery in their regions. – Agriculture Industry Training Organisation (AGITO), Competenz – Waikato-Tainui and Tainui Group Industry Training, Electrical Technology Holdings for their support with Industry Training Organisation (ETITO), awards, scholarships and grants, Electrical Supply Industry Training their sponsorship of Spark – Wintec’s Organisation (ESITO), Hospitality

annual international festival of media Standards Institute, Motor Industry FINANCIAL PERFORMANCE arts and design – and their invaluable Training Organisation (MITO) and advice and collaboration on our Ma¯ori Plumbing, Gasfitting, Drainlaying, Trade Training initiative. Roofing Industry Training Organisation (PGDRITO). – The many sponsors of our various events, scholarships and awards. – Mighty River Power and Contact Energy for their support and engagement – The many suppliers of goods and services in teaching a new electrical apprentice to Wintec. intake. SERVICE PERFORMANCE – Te Puni Ko¯kiri for advising on government – Energy Efficiency and Conservation policies on Ma¯ori and Pasifika Authority (EECA), WEL Networks and development and its sponsorship of our Mighty River Power for their support in Matariki Wearable Arts events. the establishment of the student village at the Rotokauri campus. – The many Pasifika community groups in the region for their support of Pasifika initiatives and Pasifika students in general.

– The many social service agencies and organisations who support our programmes and offer fieldwork practicum and work experience to WINTEC ANNUAL REPORT 2011 our students.

– All the partners in the Trades Academy project: Cambridge High School, Huntly College, Nga¯ruawa¯hia High School, Fairfield College, Hillcrest High School, Hamilton Girls’ High School, Melville High

87 create your world www.wintec.ac.nz