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Annual Report ANNUAL REPORT 2017 CONTENTS CONTENTS 04/ INTRODUCTION 06/ CHAIR’S REPORT 08/ CEO'S REPORT 10/ N4L OBJECTIVES AND OUTCOMES Managed Network Services Platform Services Sector Engagement Research 20/ LEADERSHIP TEAM 22/ BOARD OF DIRECTORS 25/ STATEMENT OF CORPORATE GOVERNANCE 26/ STATEMENT OF PERFORMANCE 27/ FINANCIAL PERFORMANCE 28/ STATEMENT OF RESPONSIBILITY 29/ ENSURING N4L IS A GOOD EMPLOYER 30/ AUDITOR’S REPORT 32/ FINANCIAL STATEMENTS 36/ NOTES TO THE FINANCIAL STATEMENTS 54/ DIRECTORY 2 NETWORK FOR LEARNING | ANNUAL REPORT 2017 3 INTRODUCTION 4 NETWORK FOR LEARNING | ANNUAL REPORT 2017 The Network for Learning’s Working with education and (N4L) objective is to help technology sector partners, facilitate a continuous N4L’s activities are designed to improvement in educational encourage learners to benefit from outcomes for all New Zealand digital learning. By ensuring that INTRODUCTION school children, which in turn all young people have access to will contribute to New Zealand’s high quality networks, platforms economic performance. and services for learning - no matter where they live or go to N4L is a catalyst for equitable school - N4L creates opportunities access to technology and the for students to make the most of learning opportunities that the the universe of digital learning use of technology brings for opportunities. every learner. N4L is a Crown company The Company delivers significant incorporated on 2 July 2012. benefits to educators and their Ownership is held equally between students by enabling consistent, two shareholding Ministers, modern, technology-embedded the Ministers of Finance and learning opportunities. The Education, with governance by an Company is achieving this with the independent Board of Directors. provision of a growing managed technology stack, content and collaboration solutions, and other innovative services. N4L operates in a financially sustainable manner within its Crown-allocated operational budget. 5 CHAIR'S REPORT HELEN ROBINSON CHAIR'S REPORT As never before, young New Zealanders need to be able to learn, to live and to prosper in a fast-changing digital world. It is critically important for in New Zealand opened their doors for hard alongside our business partners to New Zealand’s successful economic a year of teaching and learning planned monitor use and security of our network and social development that young and delivered in the knowledge that there and services. Over the past year there has people are able to leverage and was an uncapped, fast, safe and reliable been an increase in viruses, ransomware embed technology, in and out of internet connection. This connection and other cyber threats. Web safety and the classroom, to maximise their was available to all New Zealand schools security remains a priority for the Board learning potential. regardless of whether they were large, and the business. small, rural, urban, and irrespective In May 2017, the Minister of Education, Since our inception in 2012 N4L’s mandate of decile. Hon. Nikki Kaye, noted that “the and strategy has been to provide the Government has invested more than Usage continues to grow rapidly, Managed Network, and content and $200 million towards the Network for reinforcing the critical importance services. Like all good tech companies N4L Learning, which is providing schools - of stable, education-enhancing has been successful by its focus on delivery about 98 percent of schools - with Crown- technology infrastructure. Network and customer engagement. Content and funded, uncapped, high-speed broadband. traffic has doubled since last year. services, and the move to a more long- This means we now have the platform in The usage numbers are staggering; at term, self-sustaining model is the Board’s place to support the range of initiatives time of writing this report the monthly focus for the Company’s future. currently underway to achieve our vision usage of the Managed Network was Remaining more than ‘just keeping of New Zealand as a world leader in over 2 petabytes with ~16 billion current’, it is essential that N4L acts as digital education”. webpage hits. schools’ technology research arm, and N4L’s delivery of the Managed Network With great technological use in education working alongside our educational agency has meant that on the first day of the comes risk, which must be well managed partners, N4L can help the sector think 2017 school year, almost every school to protect our young people. N4L works further ahead to make the right investment 6 NETWORK FOR LEARNING | ANNUAL REPORT 2017 MAKE TRIANGLES SMALL- ER decisions. Over the past five years N4L for learners, for teachers, for schools platform for schools’ reliable infrastructure, would like to think that it has truly made and for New Zealand, and embrace the and there are many opportunities for a difference to the future of education in opportunity to continue to deliver into N4L to help enhance and empower New Zealand. the future. I would especially like to New Zealand’s greatest asset - its teachers acknowledge the commitment, dedication and learners - through great technology N4L’s vision of digitally empowered and contribution of Humphrey Wikeepa and innovation. education for a future-ready, world- for his five years of service as he leaves ready Aotearoa New Zealand has been the N4L Board. I am looking forward to significantly advanced this year through welcoming his successor, Jeremy Banks, the connection of most schools to the to the Board. Managed Network, the sustaining of the Helen Robinson underlying network and its supporting The successful completion of most schools' Chair infrastructure. We are working hard to reliable connection to N4L’s Managed bring new innovation, new products Network, and N4L's successes to date, can and services to support New Zealand be attributed to John Hanna, his talented education. leadership team, and the passion and hard work of all staff at N4L. They are a unique No organisation can be successful without group, and I am pleased and grateful that strong governance and I am fortunate their talents are harnessed for the good of to work alongside an incredible and all young New Zealanders. diverse team of Directors, to whom I extend my gratitude and appreciation The N4L team are excited to be entering for their enormous contribution. We are a new phase of its journey. The Managed proud of what we have achieved this year Network has been and continues to lay the 7 CEO'S REPORT JOHN HANNA CEO'S REPORT Mā te whakapono By believing and trusting Mā te titiro By looking and searching Mā te whakarongo By listening and hearing Mā te mahitahi By working and striving together Mā te manawanui By patience and perseverance Ka taea e au We can succeed Children born the year that N4L was focuses on three things: innovation, Sustainability founded are turning five and starting sustainability, and security. Our support team responded to over school now. I am immensely pleased 31,000 calls in the last year, a decrease Innovation that they are joining an education of around 10% from the previous year, From the outset, N4L has focused on system that has world-leading equity reflecting a service that is increasingly innovation. We created the award-winning of internet access and experience, via working seamlessly. Our network is Pond platform to meet teachers’ desire N4L's Managed Network. I want these designed so we can make requested for a contemporary platform on which children to be able to take for granted changes, diagnose and fix minor issues to collaborate and share content; it was that schools have fast, stable internet quickly - and often remotely - saving time awarded the Most Innovative Initiative at access. My goal is for schools and and money. In fact we are often able to the HiTechNZ awards in 2015. students to be able to say about their remedy an issue that may be affecting network, 'it just works'. More recently, we launched Tahi, an network performance in advance, well identification and access management before students and teachers experience This is not easy to target. 'Just working' service specifically designed to meet any issues. means anticipating problems, solving them the needs of the education sector. N4L quickly, and preventing small issues from N4L has also increased its research continues to identify new technologies and escalating into big ones. It also means efforts: we regularly seek feedback new educational needs as they emerge, doing this in a manner that is invisible from schools, and most recently so we can adapt the Managed Network to to our customers, so they can continue received a result of 92.7% satisfaction handle them. to lead, teach and learn. To do this, N4L with the service delivered. 8 NETWORK FOR LEARNING | ANNUAL REPORT 2017 MAKE TRIANGLES SMALL- ER While I am pleased with this enormously The work required to carry out these As I look forward, I can see N4L continuing positive feedback, our team is always keen tasks, and to a standard that is reflected to prosper and succeed, but also to to learn how we can continue to enhance in an unprecedented level of customer continue to enable the next generation the services we deliver to ensure our satisfaction, is enormous. I can only of New Zealanders to live and learn in a customers and shareholders receive the express my own gratitude and that of seamless, digital world. Kia kaha! greatest possible value. NZ schools, teachers and learners, to the team at N4L. Workloads were higher Security than ever in 2016/17, and often at Increasingly, one of the largest challenges considerable personal cost. The N4L team to a network that 'just works' is security. In continued to deliver and I should note that the past year there has been a worldwide John Hanna I have been admirably supported by my increase in cyber threats, including Chief Executive Officer Leadership Team.
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