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2012 Annual Report

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2012 Annual Report 2012ANNUAL REPORT KAITAIA BAY OF ISLANDS RÄWENE KAIKOHE WHANGAREI CONTENTS 2012 at a glance . 03 Summary of Financial Information . 05 Summary of Non-Financial Performance Figures . 07 Chairperson’s Report . 08 Chief Executive’s Report . 10 Council Awards . 12 Our Strategy . 19 TEC Benchmarking . 23 Our Key Measures . 26 Statement of Service Performance . 31 Academic Performance Indicators . 39 Financial Reporting . 51 Audit Report . 52 Statement of Responsibility . 54 Financial Statements and Notes . 55 Equity Statement . 95 Equal Employment Opportunities . 96 Equal Educational Opportunities . 97 Research . 100 Partnerships . 105 The Council of NorthTec . 106 Senior Staff and Management of NorthTec . 107 NorthTec Values . 108 Glossary . 109 Professional Services Directory . inside back cover Töu iwi, töu wänanga • Your people, your place 1 2012 AT A GLANCE 2012 AT A GLANCE JUliE PylE, Graduate Diploma in Fashion Design The stand-out thing about the course for Julie was the tutors . “They went above and beyond the call of duty . They would even take stuff home to figure out for you . The class became one big crazy family . We were a random mix of age and backgrounds and were all on a GrADUATE journey together .” “I wanted to create my own label . Now I have a retail shop with my own designs on the rack, and there’s no way I could have done it without this course .” TrEvOr ClArk, Certificate in Forestry “There’s so much to learn . We watch how logging crews operate, how to fell trees, how to watch for hazards, and how to work in the bush as a team .” Trevor is keen to extend his horizons . “After this course I want to get my feller’s ticket which is recognized throughout the STUDENT commonwealth countries . To others out there – a job in forestry is a job for the future .” AriANA TE AhO, Certificate in Hairdressing “I’m going for it . There’s a great team of students here, a great learning environment, and super-positive tutors . The tutors are calm and don’t stress out, and they’re especially supportive if students have young kids they need to work around .” STUDENT Ariana is clear that hairdressing is the solid ticket she wants . SUMMAry OF FiNANCiAl iNFOrMATiON 2012 2011 2010 2009 2008 $'000 $'000 $’000 $’000 $’000 Total Revenue 37,086 36,001 39,757 38,937 33,804 Operating Result 1,290 1,080 1,771 1,909 (1,131) Total Staff Cost 21,733 20,209 21,212 20,850 20,328 Salaries and Wages per EFTS 6.1 6 .3 6 .3 5 .9 5 .8 Working Capital 6,981 5,870 5,856 2,781 311 Capital Expenditure (net of sale proceeds) 2,769 3,375 1,911 5,675 2,519 Total Non-current Assets 39,176 38,977 38,010 36,568 32,881 Total Equity 46,138 44,848 43,768 39,098 33,070 Total Costs per EFTS 10.0 10 .8 11 .3 10 .4 10 .0 Capital expenditure includes Leased Asset expenditure. The Operating Result for the Operating result $’000 2012 year was 2000 greater than 2011 1500 by $0.210m. 1000 500 2012 2011 2010 2009 This is a pleasing result . Revenue was down 1% on (500) budget due mainly to students preferring courses with 2008 lower or no fees . Savings in costs of $0 .593m have (1500) been achieved to record a surplus in excess of budget . return on revenue 6 .00% Return on revenue of 4 .00% 2 .00% 2012 2011 2010 2009 0% 3.5% -2 .00% is greater than 2011 reflecting the 2008 -4 .00% cost savings that were able to be achieved . -6 .00% Töu iwi, töu wänanga • Your people, your place 5 SUMMAry OF FiNANCiAl iNFOrMATiON Total revenue 45,000 40,000 35,000 30,000 Total revenue of 25,000 20,000 15,000 $37m 10,000 is an increase over the previous year reflecting the increase in 5,000 EFTS . 2012 2011 2010 2009 2008 0 Total revenue per EFTS $’000 Total revenue per EFTS showed a decrease in 2012 12 10 from 8 11.2 6 to 4 10.38 reflecting the preference towards 2 low or no fee courses . 2012 2011 2010 2009 2008 0 Total Costs per EFTS $’000 13 Total costs per EFTS showed a 12 decrease 10 8 from 10.8 to 10.0 6 as a result of efficiency gains in 4 other expenses of $0 .455m . 2 2012 2011 2010 2009 2008 0 6 Töu iwi, töu wänanga • Your people, your place SUMMAry OF NON-FiNANCiAl PErFOrMANCE FiGUrES 2012 2011 2010 2009 2008 EFTS 3,572 3,221 3,369 3,549 3,480 Tutors (FTE) 213 182 195 203 208 EFTS/Tutor 17 18 17 17 17 Total Staff (FTE) 347 326 330 351 347 % Mäori EFTS 54.6% 48% 43% 39% 40% % Female EFTS 46% 52% 47% 48% 49% EFTS Trends 3750 EFTS (Fees-free) EFTS (Fees-paying) 3000 During 2012, the polytechnic provided education to 7,690 2250 students representing 3,572 Equivalent Full Time Students 1500 (EFTS) . This is an 11% increase from 2011 EFTS 750 of EFTS in 2012 accessed 2012 2011 2010 2009 2008 32.8% 0 fees-free programmes Tutor Trends Tutor FTEs increased during 2012, with a 250 200 150 100 17% increase overall, resulting 50 2011 2010 2009 2008 2012 from less sub-contracting . 0 EFTS per Tutor EFTS per tutor decreased 30 25 20 from 17.69 15 10 to 16.77 5 2012 2011 2010 2009 2008 in 2012 . 0 Töu iwi, töu wänanga • Your people, your place 7 ChAirPErSON’S rEPOrT Vern Dark Council Chairperson NorthTec had another solid year in 2012 meeting both financial and educational performance expectations with a $1 .3 million surplus and matching or improving on last year's overall academic results . This was achieved with some considerable effort by management and staff . To meet the financial targets it was necessary to exercise strict control of expenditure in the services area to compensate for less than expected returns from a changed product mix of courses . NorthTec's goal in terms of educational better value for its investment in the to this challenge and successfully performance is to be in the top quartile tertiary sector . NorthTec had recognised tendered for the majority of courses of the sector . This goal has been the need to change over time some it submitted bids for . It is clear achieved when the Mäori and non-Mäori of our teaching practices to meet the Government will again be opening this student population are considered challenge set by Government . After level of courses to competition in 2014 separately, but when taken as a whole some three years of negotiations and may well expand the process to further work is needed . In order to a revised employment agreement higher levels . Utilising the flexibility improve the performance of our Mäori was reached with the teachers’ gained will be a priority this coming students a Mäori Responsiveness Plan representatives to allow much more year . has been initiated, after consultation flexibility in our teaching practices . with interested parties to get all to As expected, this year the Government The sound financial and academic support the lift in performance desired . required one third of Level 1 and 2 results achieved also met the criteria courses run by polytechnics to be open for a further $1 .9 million tranche In my report last year I signalled it was to competitive tender with the private of the Crown Loan, provided for the clear that Government was seeking sector . NorthTec was able to respond establishment of the Trade Centre 8 Töu iwi, töu wänanga • Your people, your place at Dyer Street, to be converted to sound, does not have the Balance Sheet was gratefully received . The Council equity . This is the fourth tranche to strength without major external support advertised region wide to fill the vacant be converted leaving a single tranche to make major improvements to our position and, as a result, Anna Cassells of $1 .9 million of the total loan of various campuses or to establish a new Brown has joined the Council team . $8 .5 million remaining . It is expected campus elsewhere . With the actions that the terms and conditions for this put in place this year it is hoped that I wish to thank all those who final portion to be converted to equity in the next few years NorthTec will have contributed to the progress made will be successfully met and the loan sufficient financial strength to make at NorthTec over the past year . I extinguished by mid 2013 . such choices . thank particularly all staff who have worked hard to achieve the continuous Over the past four years NorthTec has Last year I commented on the "Youth improvement gained, and my fellow met its budgeted financial surplus Readiness" programme that NorthTec Council members for their help and under constrained funding from had initiated in response to the support during the year . In particular Government . This has resulted in Region's employers’ declared need for I want to thank Paul Binney and his the Tertiary Education Commission young people who were more work- management team for their dedicated qualifying NorthTec as "low risk" by ready . That is, students who were able efforts in ensuring progress continues its monitoring criteria . A good result . to meet the cleanliness, timeliness to be made . NorthTec is performing Whilst this is a pleasing return for and willingness to work expectations well and is well placed to meet the recent efforts, it is important that of potential employers and be drug challenges ahead .
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