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ANNUAL REPORT 2016 Our Vision Unitec aspires to be a world leader in contemporary applied learning and an agent of positive economic and social change. We enable better futures for students, communities, and public and private enterprise. Contents Key statistics 4 Report from the Chief Executive and Chair 6 Our People 8 Our Product 16 Our Partnerships 22 Our Place 28 Statement of Service Performance 35 Governance Report 58 Financial Statements 64 Appendix 99 Printed on environmentally sustainable FSC-certified paper, Cocoon by BJBall. Abides by the National Standard for Certification of Plantation Forest Management in New Zealand. UNITEC ANNUAL REPORT 2016 3 Total Equivalent Full Student Achievement Time Students (EFTS): Component (SAC) EFTS: 9,100 6,508 Year in Review 78% of employed 150+ Unitec students Our People graduates are in enrolled in the Māori employment relevant & Pasifika Trades to their areas of study Training (MPTT) Initiative 2 Unitec students 30 research projects Our Product placed 1st & 3rd in the administered through NZ Carpentry Apprentice metro voucher scheme to Challenge National Final support industry research 120+ Auckland 50 students from Our Partnerships secondary schools Hangzhou Polytechnic linked into the Unitec at Unitec under Joint Pathways College Programme in Early Childhood Unitec is the 1st tertiary institute in NZ Our Place to be fully $5 million investment in carbon neutral state of the art simulation & emulation equipment 4 UNITEC ANNUAL REPORT 2016 Course completion rates: International EFTS: 2,114 73% 71% YEAR IN REVIEW S A C- f u n d e d S A C- f u n d e d Māori Pasifika 13 Unitec students worked The ALLY network (Lesbian, Gay, with MPTT & Habitat for Humanity Bisexual, Transgender, Straight, OUR PEOPLE rebuilding cyclone-stricken Cisgender & Intersex staff & homes in Fiji students) has 250+ members A team of 5 Unitec students Our internal curriculum & staff won accolades at the OUR PRODUCT development team, Te Waka Urungi 2016 Best Design Awards, redeveloped 96 courses NZ’s premier design awards 1000+ students enrolled in 200,000 hours of paid work The Mind Lab by Unitec’s Post Grad Cert experience accrued by Unitec students OUR PARTNERSHIPS in Applied Practice (Digital & Collaborative at the Concentrix Delivery Centre Learning) at 20 locations around NZ Utilisation of teaching 84% of staff & students said Mt Albert OUR PLACE spaces tripled in campus traffic campaign raised upgrading of 2 key buildings awareness of Health & Safety at Unitec UNITEC ANNUAL REPORT 2016 5 Report from the Chief Executive and Chair Unitec is changing to ensure our educational programmes better meet the needs of learners and industry, while making positive contributions to Auckland and the national economy. In 2016 we moved firmly into the implementation phase deliver programmes that reflect what industry needs from of our whole-of-organisation transformation and we graduates and meet the skills requirements of the Auckland rolled out a significant amount of change in every part and New Zealand economies. of the organisation. The foundation of this work was our Unitec is continuing to enjoy positive feedback from investment in reviewing and revising our educational employers about the quality of our graduates and we’re offering to be digitally-enabled and work-integrated. forging high-quality partnerships with industry. Our Another key part of this change is harnessing the value and relationship with providers such as Concentrix continues potential of our 53-hectare Mt Albert campus. Following to deepen. This centre now employs 900 people and more approval of the Auckland Unitary Plan, we are now free than 350 of them are Unitec students who benefit from to progress rapidly with our revised property strategy via paid work, in a high quality work environment with a strong Unitec’s development subsidiary, Wairaka Land Company. focus on training and development. As expected, the revaluation of our land and buildings The rapid pace of changing technology has shifted the this year identified significant additional value of $43 game for all education providers. Part of Unitec’s response million that can help underwrite the redevelopment of our to this has been via our joint ventures with Frances teaching and learning programmes and spaces to improve Valintine: The Mind Lab by Unitec and Tech Futures Lab. outcomes for both students and industry. The revaluation The latter was established this year and will in 2017 offer an contributed to a net increase in shareholders’ funds of innovative Master of Applied Practice in Technology Futures $18 million. for industry professionals and entrepreneurs. New Zealand, and particularly Auckland, is enjoying a We continued to invest heavily in boosting the capability prosperous economy with strong levels of growth and of Unitec employees to ensure the success of our new employment, which we believe may be impacting on ways of working. This year, as part of our new extended enrolment rates. Domestic EFTS declined 10% on 2015, leadership team, we created new positions focused on predominantly in Semester One, though the impact of that identifying and nurturing critical industry partnerships for was partially offset by a smaller decline (3%) in inbound each of our five networks. international student enrolments. EBITDAR (earnings New academic leadership roles were introduced to ensure before interest, taxation, depreciation, amortisation and our learning experiences meet the needs of students and restructuring) to total revenue was 10.4% in the year industry and we also made further improvements to our versus 13.6% in 2015. technological support for staff and students. Unitec in 2016 bedded down a ‘networked and connected’ Unitec is adopting new teaching and learning methods to operating model that aligns our educational offering with help our graduates prepare for the changes we’re seeing in key sectors of the Auckland economy. These networks the world of work and education and to ensure that Unitec 6 UNITEC ANNUAL REPORT 2016 YEAR IN REVIEW OUR PEOPLE Dr Rick Ede, Chief Executive and Dr Lee Mathias, Chair and its graduates remain relevant throughout the 21st education provider. NZQA identified a number of areas century. This is the basis of our transformation and makes of improvement but remains confident in Unitec and also us more competitive globally and nationally, more relevant noted the interventions that had been put in place as part of to industry, and flexible enough to better meet what our the transformation to address these issues. We are focused students want in terms of teaching models. on implementing these initiatives and are confident of regaining our Category 1 status as soon as practicable. Over 100 of Unitec’s courses are now blended, highly innovative and contemporary – including a high component We’d like to acknowledge the huge effort of our people OUR PRODUCT of online and group work, rather than more traditional to successfully transform, while doing their day jobs and lecture-centred models. They offer a mix of on-campus, more. Unitec is asking a lot from our employees during this online, and work-based learning opportunities, and employ period of change and they have overwhelmingly conducted innovative practices such as team-and-project-based themselves with dedication and professionalism amidst the learning, gamification and studio-based learning. disruption and uncertainty that comes with rapid change. We are investing a total of $300 million in further We’d also like to thank outgoing Chief Operating Officer developing and testing these models which will be adopted Meredith Morgan, now Deputy Vice Chancellor at Australia’s by all Unitec programmes in the next three years, as Charles Darwin University and also Deputy Chief Executive well as developing staff capability and new teaching and Leon Fourie who departed at year end to take up the role learning spaces. Our committed funding base remains of Chief Executive at Toi Ohomai Institute of Technology. strong with current facility availability totaling $115 million. Both Meredith and Leon contributed a huge amount to the We continue to refine our offering on an ongoing basis, in success of the organisation over the years. OUR PARTNERSHIPS response to student feedback and the rapidly changing For 2017, we will introduce significant new initiatives for needs of industry, in a cycle of continuous improvement. driving enrolments and revenue through innovative and Other transformation milestones include our partnerships compelling new educational offerings. We will continue to with 11 Auckland secondary schools for early tertiary build strong foundations for the coming years and we’re education training delivered predominantly in the confident about our future. school environment, and the accelerated construction of two major building projects – the new Construction, Infrastructure and Engineering building and new central student Hub building – both due for completion in Semester Two, 2017. OUR PLACE NZQA completed its four-yearly review of our capability and Dr Rick Ede Dr Lee Mathias revised Unitec’s educational status to a Category 2 tertiary Chief Executive Chair UNITEC ANNUAL REPORT 2016 7 Our People 8 UNITEC ANNUAL REPORT 2016 UNITEC ANNUAL REPORT 2016 9 Our People We’re continuing to invest in the skills and capabilities that we need for our future. We’re equipping every academic staff member with tools to support a more digitally-enabled learning experience for our students and created new academic leadership roles to ensure our learning experiences meet the needs of students and industry. Embedded at every level of the organisation are the principles of collaborative and co-creative ways of working, as advocated by Te Noho Kotahitanga. In addition, we’ve given renewed focus to our investment in Health & Safety, Cultural Responsiveness, Environmental Sustainability and Wellness, spearheaded by new initiatives introduced by Mary Johnston, our Executive Director of People and Safety. Unitec’s commitment to Māori “At its simplest, living Te Noho Kotahitanga is about using the principles in our daily work”, says Tupara Morrison.

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