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
20122012 AT A GLANCEAT 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 . NorthTec takes further action to free . This project has progressed well improve its performance to future with a number of local and national proof NorthTec in an environment of Government agencies involved and increasing competitive pressure and working together to establish residential reducing Government funding . To this based training facilities . As always, end Management and Council have funding remains a challenge but the Vern Dark established a "step change" programme potential benefits are huge . Council Chairperson utilising benchmarking information from New Zealand and overseas to The smaller Council continues to make identify the priority areas for focus . I positive gains around the Council table look forward to the outcomes of this with robust debate ensuring a good exercise . working relationship with the Chief Executive and his senior management Larger surpluses are required to team . At year's end Ken Rivers upgrade the facilities that NorthTec resigned from the Council as his term currently has to teach its students . as the Refinery chief executive had Whilst there has been gradual come to an end and he returned to the improvement of our facilities, reflected United Kingdom . Ken made a huge by the opening of a new creative contribution to Council bringing his arts centre "Toi Te Pito" this year at multinational skills to the table as well our Raumanga campus, realistically as direct support from his Company greater progress needs to be made . At at Marsden Point . He also acted as this stage NorthTec, whilst financially a mentor to our chief executive which
Töu iwi, töu wänanga • Your people, your place 9 CHIEF EXECUTIVE’S REPORT
Paul Binney Chief Executive
I am pleased to report on another successful year for NorthTec . In my 2011 report I explained how the organisation had risen to the challenge of being financially responsible whilst at the same time ensuring that the quality of our educational delivery continued to improve .
In 2012 I believe we made further improvements and my sense is that we’re at a point where, with some concerted effort, we can become the truly inspirational organisation that our region needs . There are many reasons why I have this belief, with the following being a few of these:
• NorthTec was only one of 6 ITPs that good enough in 2011 to ensure that there would otherwise have been lost to the was successful in the Level 1 and 2 was no performance-linked funding education system . Our experience with competitive tendering process for the clawback in 2012 . these students, together with feedback 2013/14 Investment Plan . from employers in our region, has led us • The positive statements by Phil Heatley, Whilst the global economic crisis has not to the view that, for certain parts of our MP (who was standing in for the Minister impacted as badly on New Zealand as community, a 24/7 wrap around service, for Tertiary Education) at the opening of on some other countries, there are still, combining education with general life Toi Te Pito in October 2012, set out how nevertheless, many who have been affected . skills and mentoring, is needed in order well NorthTec is now regarded at Cabinet Young people, and in particular young to give a young person the opportunity to level . Mäori, have been particularly impacted, with move forward and to become both self- • The financial surplus for 2012 of $1 .3 unemployment increasing and the numbers sufficient and work ready . During 2012 million is a 20% improvement on the of those not in education, employment or we began to plan for the introduction of 2011 result . training reaching concerning levels . I am a residentially based youth programme • The TEC overall financial risk rating for pleased with how NorthTec has responded with education at its heart . Smaller scale NorthTec improved in 2012 from moderate to these issues, with the following worthy pilots will begin in 2013 . There is a need risk to low risk (the highest rating of note: however for a larger scale operation that possible) . • Through the Youth Guarantee programme will involve many agencies . Finding the • NorthTec’s educational performance we have now provided opportunities funding for such an operation will not be compared to the rest of the sector was to three hundred young people who easy in the current financial climate, but
10 Töu iwi, töu wänanga • Your people, your place NorthTec will take a lead during 2013 example is the performance of our team at reviewing our key internal processes with a in attempting to turn the vision into a the country’s premier student culinary and view to improving services further . reality . restaurant service competition, the Toque d’Or awards, where our team won one gold Apart from the quality contributions made • During 2012 we initiated a Mäori and two silver medals . by our Staff and Council, I’d like to note Responsiveness Plan, with the objective that a highlight for 2012 was the delivery of of both attracting more Mäori to NorthTec In his report the Chair referred to the the refurbished Creative Industries Centre and also improving the educational strict control of expenditure in the services – Toi Te Pito – on the Raumanga Campus achievement of Mäori . As a result of area required in order to meet the 2012 which was formally opened in 26 October by this work we have identified the need financial targets . Over recent years, despite Whangarei MP, Hon . Phil Heatley . It provides to better support our teaching areas so significant reductions in funding from TEC, a new home for the Whangarei-based that they can themselves better support we have managed to produce financial programmes in Arts, Mäori Arts, Media Arts, their Mäori students . Our Te Puna area surpluses that have led to TEC assessing Fashion, Beauty Therapy and Hairdressing will be structured to provide this support our financial risk as low . The surpluses and includes the new Geoff Wilson Gallery . and a Director Te Puna will be appointed generated in recent years are indeed in 2013 . It is encouraging to see that adequate if we are happy for NorthTec to It is also fitting to recognise the significant there was a significant increase in the carry on operating as it currently does . contributions made to Northland by our 2012 proportion of our students identifying Whilst acknowledging that currently we and 2013 recipients of the NorthTec Council as Mäori in 2012, from 46% to 54%, are performing well, it is also important Awards . In 2012 we acknowledged the work and there was a significant increase in that we set our sights higher . This will done by world renowned Orca expert, Dr qualification completion rates for Mäori require us to improve in many areas . One Ingrid Visser, and Kerikeri’s internationally students across all levels of programmes requirement in particular is the need to recognised landscape sculpture artist, delivered . significantly improve the quality of the Chris Booth . This year NorthTec is delighted buildings that we operate from, particularly to have made awards to acclaimed Chef NorthTec’s management team has now been with respect to the main Whangarei campus . Brenton Low and the former chief executive in place for two years and is functioning This will require a sizeable increase in our of Refining New Zealand, Ken Rivers, who well . We are also identifying those within annual financial surpluses at a time when have both made immense contributions to the organisation who have the potential and government funding is unlikely to increase . the region . the commitment to step up to leadership We recognise therefore that a continuation roles in the future and I am looking forward of the steady improvements of recent years My thanks go to all the staff at NorthTec to the introduction of a talent development will not be sufficient . The expression “step who contributed in 2012 to our performance programme in early 2013 . Given the change” has become popular of late and and to the Council who have supported difficulties that we face in our region, can be over used, but it does describe and provided guidance to me and the with a population dispersed over a wide what NorthTec now needs to do in order to management team . Despite the challenging geographic area, less than ideal facilities generate larger financial surpluses whilst environment, I remain optimistic and in some cases, and many in the community also improving the quality of its educational positive about NorthTec and the significant who have struggled with education in the services . An example of the changes taking role it can play into the future . past, I believe the educational outcomes place is the re-focusing during 2012 of that we produce are commendable . There our International Marketing team, as we are many great examples I could use to consider that our revenue from international illustrate this, with two that immediately education is well below where it could be . spring to mind . The first of these was the As part of the drive for the generation of top place result achieved by NorthTec in the more revenue in 2013 we will be opening a Paul Binney national benchmarking study released by new campus in central Auckland focussed Chief Executive Nga Manukura o Apopo . This study ranked on the international market . We will also nursing schools’ performance in supporting be examining more closely how teaching Mäori nursing students . The second and learning takes place at NorthTec, and
Töu iwi, töu wänanga • Your people, your place 11 Founder and Principal Scientist of the Orca Research Trust at Tutukaka, Dr Ingrid Visser, has dedicated her life to the protection of Orca, the largest species of oceanic dolphin, and is committed to educating others about her adopted aquatic family .
DR INGRID VISSER 2012 Council Award - Honorary Associate
Founder and Principal Scientist of the Her work saw Orca reclassified from The 45-year-old has founded, and to this Orca Research Trust at Tutukaka, Dr Ingrid “common” to “critically endangered” in day still runs, the Orca Research Trust, Visser has dedicated her life to the study 2002 . Adopt-an-Orca, AKWIC (Antarctica Killer and protection of Orca, the largest species Whale Identification Catalogue), Punta Norte of oceanic dolphin, and is committed to For her life’s work, Ingrid has received Orca Research, and Papua New Guinea Orca educating others about her adopted aquatic on-going recognition with her NorthTec Research . family . Council Award, a further acknowledgement of her valued environmental contributions to Ingrid is also a renowned author, Born in Lower Hutt Wellington to Dutch marine life in New Zealand waters . photographer, dive instructor and immigrant parents, her love for the oceans commercial marine captain mainly and Orca stems from the round-the-world In 2010, Ingrid was named as a finalist for dedicated to her favourite topic . She has family sailing trip in 1986 on a 17-metre New Zealander of the Year, and, in June of been widely published in wildlife magazines yacht which covered over 93,000km and that year, she became the first woman to such as National Geographic, BBC Wildlife visited over 40 countries . win the Wyland Award, a national award and New Zealand Geographic as well as acknowledging unsung heroes of the peer-reviewed academic journals . The holder of three degrees in science Ingrid environment . has a self-confessed obsession with Orca She has also written an autobiography which she began to study in 1992 going on She is the only specialist researcher of Orca “Swimming with Orca,” which was an to complete her PhD on the first ever study operating in New Zealand waters with her environmental category finalist in the of the mammals in New Zealand waters in work also taking her on rescue missions prestigious Montana Book Awards, and 2000 . and private expeditions around the world . two children’s books: “The Orca” and “I Ingrid has established research projects love Killer Whales” – the latter has been Ingrid’s humanitarian efforts, such as and studied Orca in Argentina, Papua New translated into Mäori . supporting mass whale strandings on many Guinea, Iceland, Antarctica, Russia, North New Zealand beaches, are well documented . America and of course New Zealand . She is renowned for acting as the public face of successful rescues as captured in the media on many occasions .
12 Töu iwi, töu wänanga • Your people, your place The local appeal of genius and international sculptor Chris Booth is that he is a native son of Northland having been born in Kerikeri .
Chris has dedicated himself to a career in sculpture, much of it associated with the land, earth forms, and indigenous peoples of the regions he has worked in .
CHRIS BOOTH 2012 Council Award - Honorary Fellow
The local appeal of genius and international University (1997); Matauri Bay Rainbow She taught him that professionalism was sculptor Chris Booth is that he is a native Warrior Memorial (1990) and the renowned just as important to international success son of Northland, having been born in Auckland ‘Gateway’ in Albert Park in the as talent was, and that to be a successful Kerikeri . same year . sculptor one needed to be prepared to take financial risks to attain the tools to realise Chris has dedicated himself to a career in He was the recipient of the 1982 Francis a vision . sculpture, much of it associated with the Hodgkins Fellowship . land, earth forms, and indigenous peoples of Booth was featured in the 1991 the regions he has worked in . For 40 years now, Chris has been involved documentary film When A Warrior Dies[3] with land art projects in New Zealand and which focused on his construction of a very Following his tertiary education at the all over the world . large and imposing sculpture at Matauri University of Canterbury, Chris branched out Bay overlooking the Cavalli Islands for to study with various sculptors in England He has given illustrated lectures and the Ngati Kura people of the district . The and in Europe, the likes of included John assisted with tutoring and workshops at sculpture stands before the resting place Milne, Dame Barbara Hepworth, Denis NorthTec in the 1990s and recalls several of the Rainbow Warrior which was bombed Mitchell, and Quinto Ghermandi of Italy . projects he was rather fond of, including and sunk by French Government agents in Gateway to the Sea . This sculpture, created Auckland in1985 . While his sculpture sometimes draws with the assistance of two NorthTec on indigenous Mäori and Aborigine students, was constructed using four tonne The Rainbow Warrior propeller is in the characteristics, his works remain individual, of Paradise Stone for the inaugural show of centre of the sculpture surrounded by an and capture aspects of topography, natural the Art Gallery, later named after his close arch of large basalt boulders recovered from history, and landscape forms where he friend Geoff Wilson, who was tragically a local beach . constructs them . killed .
Major commissions have been at the In spite of the huge success he has enjoyed, Hamilton Gardens, done in collaboration Chris remains humble about the recognition with Diggeress te Kanawa (2004-2005); he is receiving from peers, remembering the “The Wave and Waka” Whangarei advice he once received from one of Britain’s Millennium Sculpture, in collaboration with great sculptors, Dame Babara Hepworth . Te Warihi Hetaraka (2003-2006); Lincoln
Töu iwi, töu wänanga • Your people, your place 13 Toi Te Pito – The Jewel in the Crown of the Raumanga Campus
Toi Te Pito, the new and The project for the area on the NorthTec Council Chair Vern Dark campus had been underway since the stressed that Creative Industries is refurbished Creative trades related courses transferred to a thriving sector in Northland and is Industries Centre on NorthTec’s Future Trades Campus on helping to grow the local economy . He the Raumanga Campus Dyer Street in 2010 . Renovations and also touched on the fact that NorthTec stands out as one of new additions to the centre, including needs to raise its capability for Mäori the Geoff Wilson Gallery, brought much education, as approximately 54% of Whangarei’s newest pleasure to Programme Leader for NorthTec’s SAC funded students in 2012 and most impressive Visual Arts, Lindsay Marks . were Mäori . The new facilities have a structures while at the large area dedicated to Mäori Arts . “We are thrilled to have such a same time symbolising wonderful facility here in Whangarei,” At the opening of Toi Te Pito which also a modern and brighter he said . “Not only will the centre help houses the new Geoffrey Wilson Gallery, future for NorthTec . us with our programme delivery, but NorthTec recognised the renowned we hope that our new resources can Kerikeri Landscape Sculptor, Chris The state-of-the-art facility, home to help us to work closer with others in the Booth, with an ‘Honorary Fellow Award’ the Whangarei-based programmes in industry both locally and nationally ”. for outstanding and distinguished Arts, Mäori Arts, Media Arts, Fashion, NorthTec’s Creative Industries Director, contribution to society . Beauty Therapy and Hairdressing, was Khalid Bakhshov said Toi Te Pito was an opened on 26 October by Whangarei asset to the city and region . MP, Hon . Phil Heatley who stood in for Hon . Steven Joyce, Minister of Tertiary Education, Skills and Employment .
In his opening address Mr Heatley spoke of how things have changed Toi Te Pito considerably over the years with was refurbished NorthTec now being rated in the top 10 ITPs in the country . at a cost of $3.4m
14 Töu iwi, töu wänanga • Your people, your place “Toi Te Pito will benefit our Arts community, both in Whangarei and across Northland as a whole and is in line with what is already happening within the community. We are pleased to be able to contribute to Whangarei’s thriving Arts community, and to reinforce that Northland, and in particular Whangarei, is an attractive place to live.”
Lindsay Marks
Töu iwi, töu wänanga • Your people, your place 15 Ken Rivers was CEO of Refining New Zealand up until December 2011 after his arrival from the United Kingdom in 2007 .
During his time in Northland he participated fully within the community, serving on the NorthTec Council and as a trustee of the Northland Events Centre . Ken was also a founding member of the New Zealand Business Leaders Health & Safety Forum .
KEN RIVERS 2013 Council Award - Honorary Fellow
When Ken Rivers decided to return home to He also brought a more holistic business A proud Yorkshireman, Ken is married with Britain at the end of 2011, the New Zealand and community philosophy with him to two daughters . His interests include music, Oil Industry and Northland lost one of its Whangarei and in his time here immersed travel, and supporting his favourite football most experienced and respected business himself within the local community, team, Leeds United, as well as playing leaders . contributing his abilities and expertise football when time permits . where required and sought . After arriving from the United Kingdom in His other passion is rugby and supporting 2007 with 35 years of experience in the Ken was a proud serving member on the the All Blacks ahead of England, which oil industry with the Shell Oil Company, NorthTec Council and a trustee of the means he really is suffering being back in Ken steered the New Zealand Refining Northland Events Centre . He was also England, and not just from the climate! Company at Marsden Point through change a founding member of the New Zealand and innovation . In his time with the Business Leaders Health & Safety Forum . He affirms that he is keeping a keen eye publicly listed company it had a market on the Super 15 competition and is looking capitalisation of NZ $1 billion . The holder of a Master of Arts degree in forward to the All Blacks season and the All Chemical engineering, Ken followed through Blacks defence of the 2015 World Cup in He brought with him his vast knowledge to become an engineer by profession . Today England . of the oil industry which was enhanced by he is a Fellow of the Institution of Chemical his time working in faraway fields such as Engineers; a past President of UK Petroleum Malaysia and in the Netherlands . Industry Association; and Council member of the Institute of Petroleum (now the Energy One of his key goals while in Northland was Institute) . to upgrade the refinery to produce cleaner fuels for future generations and at the same He has a passion for safety and chaired the time committing to protecting the Refinery’s joint industry/regulator task group defining unique environment at the mouth of the and setting UK safety standards in the beautiful Whangarei Harbour . wake of the Buncefield depot explosion in December 2005 .
16 Töu iwi, töu wänanga • Your people, your place A fourth-time Beef + Lamb New Zealand Ambassador, Brenton has spent more than a decade contributing stunning cuisine to the Northland region at his Whangarei restaurant . Brenton focuses on serving fresh local produce at à Deco, resulting in the restaurant being a regular finalist in the Cuisine Restaurant of the Year awards . In 2011, à Deco was named Best Regional Restaurant in the awards for the second year in a row . Brenton also took out the Best Chef and Best Restaurant titles in the Northland Matariki Awards .
BRENTON LOW 2013 Council Award - Institutional Medal
Born and bred in Northland, Master Chef For 11 years now he has drawn a legion The accolades just keep flowing with food Brenton Low has racked up so many awards of fans, and critics, both local and writers Lauraine Jacobs and Simon Wilson that his Whangarei restaurant à Deco, is international, who have trekked the well- calling à Deco “an uncommonly good running out of wall space to display his worn path to his restaurant where he has restaurant - one that delivers an almost mass collection of trophies and testimonials . served up some of the most stunning cuisine flawless dining experience .” The New available in the Northland region . Zealand Herald’s John Gardner wrote, Brenton belongs to that rare group of “à Deco deserves to be cherished by the people who recognised in their childhood He focuses on serving the best local produce people of Whangarei” while former television the passion that would lead to their choice at à Deco, all purchased fresh from local presenter turned wine critic, John Hawkesby of vocation and the relentless desire they Northland sources which has resulted in says: “believe me, this boy can cook” . display in pursing excellence in their field . the restaurant being a regular finalist in the Cuisine Restaurant of the Year awards . The son of a Whangarei duck hunter, Brenton His formative years on his grandparents’ In 2011, à Deco was named Best Regional cut his teeth initially learning from some of cattle farm at Ruatangata (near Whangarei) Restaurant in the awards for the second Auckland’s finest and toughest chefs before sparked his passion for cooking and the now year in a row while Brenton also took out the he spread his wings and expanded his four-time champion, who is also a lifetime Best Chef and Best Restaurant titles in the culinary skills in Europe and Australia . Beef and Lamb New Zealand Platinum Northland Matariki Awards . Ambassador, says he has never thought When he returned home to Northland he about doing anything else . In 2012 he took out the Cuisine magazine’s brought back his magical array of cooking national awards Chef of the Year title and skills and with it, has now put Northland A sometimes tutor at NorthTec Hospitality his restaurant has been a finalist in the firmly on the culinary world map . school, Brenton confesses to diving in head- Cuisine awards several times, and top first if he wants to do something . Cooking Northland restaurant eight times . It was was like that for him because all he ever named runner-up regional restaurant in the wanted to be in his life was a chef . 2012 Cuisine Awards .
Töu iwi, töu wänanga • Your people, your place 17
OUROUR STRATEGY STRATEGY OUR STRATEGY
In early 2011 we formalised our Strategy with the Vision of contributing to raising Northland’s expectations and aspirations, and being instrumental in enabling life change through education. Our Strategy is shown below.
OUR PURPOSE OUR VISION A quality provider of We contribute to raising the relevant, accessible, innovative region’s expectations and aspirations, tertiary education . opening minds to how quality education can change lives .
Students We will be in the upper quartile of national benchmarking for qualification completion and our students will consider that they have received a satisfactory return on their investment . Mäori NorthTec will be a place Our Communities where Mäori can succeed We will be valued by educationally as Mäori, with course and qualification our communities, AIM with those surveyed completion rates being considering that NorthTec We will have equal to those of NorthTec makes a achieved our Vision as a whole . positive contribution if we are providing to the region . “Return on Investment” Learning for: The Government NorthTec is in the upper quartile of national benchmarking The Region’s Employers for educational performance and is We will be the preferred financially responsible, being provider of education for the efficient in the use of resources region’s employers, with those and capable of meeting future sampled preferring to employ needs for capital investment NorthTec graduates over those whilst maintaining from other tertiary providers . adequate reserves .
Sir James Henare He täwhiti ke tö koutou haerenga, ki te kore haere tönu. You have come too far, not to go further. He tino nui rawa ö koutou mahi, kia kore mahi tönu. You have done too much, not to do more.
20 Töu iwi, töu wänanga • Your people, your place OUR STRATEGY
Through identifying our stakeholders we set our five key strategic priorities as:
To deliver best • Through engagement, understand and anticipate what the region expects from our graduates . practice and 1 innovative vocational • Through quality delivery and support structures, be flexible and responsive enough to meet these requirements . education
To deliver inspirational • Build a culture of individual and team responsibility for professionalism and performance excellence supported by quality leadership, improved decision making, performance 2 targeted training and development, performance management and improved internal systems .
To become a sought • Understand and anticipate the needs of Mäori for vocational tertiary education and ensure that our programmes and kaupapa enhance the ability of Mäori to succeed . after tertiary educator 3 for Iwi/Mäori of Te Tai Tokerau
To secure financial • Improve our financial results by: • Increasing revenue; sustainability 4 • Reducing costs through improved efficiency and effectiveness .
To ensure the region’s • NorthTec, as the largest provider of tertiary training based in Northland, will act as an educational broker with the objective of having the region’s vocational tertiary vocational tertiary 5 education needs met by the most appropriate providers . education needs are met
How our Our primary funding source is the Government, with funding controlled by the Tertiary Education Commission . Through this body we are required to set “Investment Plan” Strategy fits targets for mainly educational outputs and these are set out on pages 40-44 (from our with our plan finalised in 2010) . The measures set in our “Investment Plan” augment and build on our strategies . In 2012 we established new Investment Plan measures and targets for the Investment Plan years 2013–2014, which more easily link to our new Strategy presented here .
Töu iwi, töu wänanga • Your people, your place 21
TECTEC BENCHMARKING BENCHMARKING Haylie Morton, Business Administration and Computing
Haylie came to NorthTec to change her life and get a qualification . “I knew there had to be something more for me . This course was the starting point . I did well at school but you can’t get a job by STUDENT saying you know how to do stuff . You need a qualification .” “If this can happen for me, it can happen for anyone! If you’re feeling down about what you’re doing and want to reach for the stars and make something for yourself, get a qualification!”
Henry Lightfoot, Automotive Engineering
“The tutors are pretty awesome considering what they have to put up with . They’re all experienced and all interesting . If you’re considering doing this course don’t do it just to fill in time .
Make up your mind whether you want to do it, and go for it . It’s an opportunity too good to waste . The amount of support makes STUDENT it hard to fail ”.
Tessa Peters, Social Services
“We have a big class of amazing people from all different backgrounds and world views . We’re all there for the same reason and we have a strong bond . The tutors are very real people who have lived life and they make it easy to learn because of the way they are .”
STUDENT “This is a really really good beginning to the rest of my life! If I get the chance to help even one person through something sometime, that is all I want . With this course, I will have the skills and the knowledge to help them properly .”
24 Töu iwi, töu wänanga • Your people, your place TERTIARY EDUCATION COMMISSION BENCHMARKING
Our strategy aims to place NorthTec in the upper quartile of national benchmarking for qualification completion and educational performance. Such benchmarking is carried out by an international firm TRIBAL under contract from the Tertiary Education Commission (TEC). It is therefore appropriate for us to report on our progress in this national benchmarking.
• • Background The performance benchmarking “Benchmarking has started a The Tertiary Education Commission tool covers a range of areas linked change process for New Zealand (TEC) in New Zealand manages to identifying opportunities for Institutes of Technology and the Government’s $3 billion annual improvement including financial, Polytechnics (ITP). They are now investment in the tertiary education resources, and students outcomes . using benchmarking to define system . It also oversees the contribution performance issues, develop to tertiary education and training that • Results action plans and monitor is offered by universities, institutes of On the following pages we report on progress towards improvement. technology and polytechnics (ITPs) and some of our TEC Key Measures . This Some have used the tool to test other training providers . shows a movement from 2011 to 2012 . the efficiency of future plans The TEC needed robust and transparent Whilst the final 2012 TEC measures and budgets. Benchmarking is quality assurance and monitoring will not be available until July, the draft enabling institutes to identify significant potential savings.” information to inform investment, as results record a marginal movement in well as a system to enable providers both the overall study completion and New Zealand Tertiary Education to focus on improving their own qualification completion rates . Commission performance, responding to strategic Our student progression and retention change as well as building their rates show significant improvement capacity for self-improvement . and this is a pleasing result following specific management attention during the year . A full analysis of these • Meeting the Requirement measures will be made when the final Working closely with the client and TEC results are known . We have also providers, Tribal developed a bespoke included our 2011 standings for all the web-based benchmarking tool to allow Polytechnics in our sector (2012 final ITPs to identify achievable cost savings standings available July 2013) . and investment opportunities and to highlight areas for improvement .
Maik Schimmel, Bachelor of Applied Management
Maik had finished his job as an army officer in Germany, and prior STUDENT to that had a background in business . “I’m qualified in infomatic computer systems but I need a further qualification to move forward in business . This course really is applied management . It is about solving problems and working with businesses out there .”
Töu iwi, töu wänanga • Your people, your place 25 OUR KEY MEASURES
Comparison of 2012 with 2011 Please note the 2011 results presented here differ marginally to those reported in our 2011 Annual Report . This is due to the timing of results processed by the TEC, as final results are only available by July and after the Annual Report is published . The 2011 results do agree to those reported in our short form report (2011 Annual Review) of July 2012 .
2012 Draft (finalised by July 2013) 2011 Final Successful Completion of Courses Successful Completion of Courses
This measure shows the proportion of courses in a given year that are This measure shows the proportion of courses in a given year that are successfully completed . successfully completed . All Levels of Study All Levels of Study Levels 1 – 2 81% Levels 1 – 2 78% Levels 3 – 4 73% Levels 3 – 4 77% Levels 5 – 6 73% 79.1% Levels 5 – 6 74% 79% Level 7 90% Level 7 93%
Completion of Qualifications Completion of Qualifications
This measure shows the proportion of students in a given year who complete a This measure shows the proportion of students in a given year who complete a qualification . qualification . All Levels of Study All Levels of Study Levels 1 – 2 66% Levels 1 – 2 67% Levels 3 – 4 58% Levels 3 – 4 58% Levels 5 – 6 80% 67.2% Levels 5 – 6 65% 64% Level 7 85% Level 7 75%
Student Progression to Higher Level Study Student Progression to Higher Level Study
This measure shows the proportion of students in a given year who progress to This measure shows the proportion of students in a given year who progress to study at a higher level after completing a qualification at levels 2 – 4 . study at a higher level after completing a qualification at Levels 2 – 4 . Levels 2 – 4 Study Levels 2 – 4 Study Levels 2 38% Level 2 36% Levels 3 27% Level 3 22% Levels 4 30% 31.7% Level 4 25% 27%
Students Retained in Study Students Retained in Study
This measure shows the proportion of students in a given year who complete This measure shows the proportion of students in a given year who complete a qualification or re-enrol at the same tertiary education organisation in the a qualification or re-enrol at the same tertiary education organisation in the following year . following year . All Levels of Study All Levels of Study Levels 1 – 2 64% Levels 1 – 2 65% Levels 3 – 4 59% Levels 3 – 4 45% Levels 5 – 6 66% 61% Levels 5 – 6 60% 53% Level 7 85% Level 7 79%
26 Töu iwi, töu wänanga • Your people, your place OUR KEY MEASURES
Comparison of 2012 with 2011
2012 Draft (finalised by July 2013) 2011 Final Student Ethnicity* Student Ethnicity*
European 55% European 63% Mäori 54% Mäori 46% Pacific 3% Pacific 3% Asian 3% Asian 3% Other 2% Other 2% * Total may exceed 100% as some students identify * Total may exceed 100% as some students identify with more than one ethnicity . with more than one ethnicity .
Level of Study Level of Study
L1 – 2 Certificates 18% L1 – 2 Certificates 21% L3 – 4 Certificates 54% L3 – 4 Certificates 49% L5 – 6 Diplomas 13% L5 – 6 Diplomas 13% L7 Degrees/Graduate Diplomas 15% L7 Degrees/Graduate Diplomas 16%
Student Age Student Age
17 Years and Under 6% 17 Years and Under 6% 18 – 19 14% 18 – 19 14% 20 – 24 18% 20 – 24 17% 25 – 39 27% 25 – 39 28% 40 Years and Over 35% 40 Years and Over 35%
Subject Area Subject Area
Agriculture and Environment 21% Agriculture and Environment 23% Engineering 15% Engineering 15% Health 15% Health 11% Society & Culture 12% Society & Culture 11% Other 37% Other 39%
Töu iwi, töu wänanga • Your people, your place 27 OUR KEY MEASURES
Comparison of 2011 with other NZ Polytechnics
"In 2011 the effectiveness of NorthTec's education delivery was evidenced in NorthTec achieving above the ITP sector average against 3 of the 4 educational performance indicators, with student progression the only indicator to be below the average ". (Tertiary Education Performance report 2011 - TEC)
2011(Final)
Successful Completion of Completion of Courses Qualifications This measure shows the proportion of courses in a given year This measure shows the proportion of students in a given that are successfully completed . year who complete a qualification .
Median: 79% Median: 64%
1 CPIT 85% 1 Otago Polytechnic 74%
2 Otago Polytechnic 83% 2 CPIT 71%
3 MIT 82% 3 WITT 70%
4 Bay of Plenty Polytechnic 80% 4 Bay of Plenty Polytechnic 69%
5 WINTEC 80% 5 Whitireia Community Polytechnic 68%
6 Aoraki Polytechnic 80% 6 Aoraki Polytechnic 68%
7 Whitireia Community Polytechnic 80% 7 UCOL 65%
8 NorthTec 79% 8 WINTEC 64%
9 NMIT 79% 9 Weltec 64%
10 Tai Poutini Polytechnic 79% 10 NMIT 64%
11 EIT 78% 11 NorthTec 64%
12 UNITEC 78% 12 MIT 61%
13 Weltec 77% 13 Open Polytechnic 59%
14 WITT 76% 14 EIT 58%
15 Open Polytechnic 73% 15 Tai Poutini Polytechnic 57%
16 Waiariki Institute of Technology 73% 16 UNITEC 57%
17 UCOL 71% 17 Waiariki Institute of Technology 55%
18 SIT 70% 18 SIT 55%
28 Töu iwi, töu wänanga • Your people, your place OUR KEY MEASURES
Comparison of 2011 with other NZ Polytechnics
2011(Final)
Student Progression to Students Higher Level Study Retained in Study This measure shows the proportion of students in a given This measure shows the proportion of students in a given year year who progress to study at a higher level after completing who complete a qualification or re-enrol at the same tertiary a qualification at Levels 2–- 4 . education organisation in the following year .
Median: 32% Median: 55%
1 WINTEC 45% 1 WITT 75%
2 MIT 44% 2 Weltec 64%
3 EIT 42% 3 Whitireia Community Polytechnic 64%
4 Weltec 40% 4 MIT 61%
5 SIT 40% 5 UNITEC 59%
6 Otago Polytechnic 37% 6 Bay of Plenty 58%
7 UNITEC 37% 7 WINTEC 58%
8 Whitireia Community Polytechnic 35% 8 NMIT 57%
9 UCOL 35% 9 UCOL 55%
10 CPIT 30% 10 Otago Polytechnic 54%
11 Waiariki Institute Technology 29% 11 Waiariki Institute of Technology 54%
12 NorthTec 27% 12 NorthTec 53%
13 NMIT 25% 13 CPIT 53%
14 Bay of Plenty Polytechnic 24% 14 Aoraki Polytechnic 48%
15 Open Polytechnic 18% 15 EIT 48%
16 Tai Poutini Polytechnic 17% 16 SIT 38%
17 Aoraki Polytechnic 17% 17 Tai Poutini Polytechnic 36%
18 WITT 13% 18 Open Polytechnic 30%
Töu iwi, töu wänanga • Your people, your place 29 30 Töu iwi, töu wänanga • Your people, your place STATEMENT OF SERVICESTATEMENT OF PERFORMANCESERVICE PERFORMANCE 2012 STATEMENT OF SERVICE PERFORMANCE
The Statement of Service Performance (SSP) describes our contribution to the National Tertiary Education Strategy priorities – that is, meeting the needs of Students, the Labour market and the economy as set out in our Strategy and Investment Plan commitments.
Our first SSP is set out in accordance with The measures identified here need to be our strategic goals which describe the read in conjunction with the Academic Our Vision is outcomes we are seeking . Those outcomes Performance Indicators (APIs) which set out differ in terms of the length of time they our educational and financial commitments “to contribute to might take to achieve, how complex and and as set out in our Investment Plan and difficult they are and what elements Crown Loan agreements agreed with the raising Northland’s of society they might affect . Measures Tertiary Education Commission (see pages expectations and assigned to capture our performance and 39 to 49) . The targets recorded here for reported here are in most cases “immediate these API's and Crown Loan measures were aspirations, and result” or “impact” indicators . We have set between 2009 and 2010, before our being instrumental an important role to play in achieving revised strategy was developed . broader societal goals, and the SSP at this in enabling life stage does not identify specific targets for measures at the impacts and outcomes change through levels on a macro scale . This will come . We education .” are currently enrolled in an Economic and Social Development process with all major Northland stakeholders setting out our role and performance requirements in the “bigger picture” of Northland development . The 2012 projection for these measures is either the API targets set with the TEC, or based on comparisons to 2011 equivalent measures .
Hughie Blues, Hospitality Tutor Hughie comes to tutoring at NorthTec with a lifetime of hospitality experience behind him and the challenge of inspiring new chefs in front of him .
TUTOR “The best thing about the tutoring is watching the students grow . NorthTec has a big role to play in the growth of Northland as a destination place for people to work and stay . It interacts with a lot of industry and I can help with that in hospitality .”
32 Töu iwi, töu wänanga • Your people, your place 2012 STATEMENT OF SERVICE PERFORMANCE
OUTCOME FOR STUDENTS u We will be in the upper quartile of national benchmarking for qualification completion and our students will consider that they have received a satisfactory return on investment.
What the measure Measure 2012 Projection 2012 Actual relates to: Qualification completion • Achievement of API targets -See Investment Plan Met Achieved . and students progressing measures (page 39) Increases in both our overall qualification to higher levels of completion (64 - 66 .4%) and progression learning. rates (27 - 31 7%). . The objective is to increase • Improve our placing for qualification completion Increasing Result not yet available the educational success of from 11th in 2011 (see page 28) Northland students and is • Proportion of graduates at Levels 1-3 that progress Increasing Achieved . in line with our Investment to further study-retention and progression Increases in both the progression and Plan objectives. measures-see Investment Plan (page 39-44) retention rates .
Return on Investment • Level of satisfaction with Programme, services and Increasing Achieved . We want our students facilities (determined by Programme survey) Overall 2064 students were surveyed . to consider that their 92 .93% positively supported the investment of time and Programmes and Services relevant to them money with NorthTec is (2011: 92 35%). positive, with annual In addition, a Graduate survey run by Otago improvement from us. Polytechnic on NorthTec students (released November 2012) reported that - 92% of those surveyed would recommend the programme of study to others - 88% considered the programme represented good value for money . No comparatives are available . • Level of satisfaction with Tutors (determined by Increasing Achieved . Tutor survey) 2429 students undertook the survey and 92 .7% positively rated their tutor performance over various categories (2011: 92 48%). .
• Level of satisfaction with ICT services via ICT Increasing Achieved . student survey-overall satisfaction 496 students completed an ICT survey to rate various IT services (Wireless access, laptops, printing, IT help desk support, email services and storage) . An average rating of 3 4. out of 5 was achieved . No comparatives are available . This result is not considered to be satisfactory and a strategic plan and governance group has been set up to help address the issues raised and improve our performance . Töu iwi, töu wänanga • Your people, your place 33 2012 STATEMENT OF SERVICE PERFORMANCE
OUTCOME FOR OUR COMMUNITIES u We will be valued by our communities, with those surveyed considering that NorthTec makes a positive contribution to the region.
What the measure Measure 2012 Projection 2012 Actual relates to: Value added to Society and • Local and regional needs identified and considered Progressing Achieved . local economy. in future planning processes for all programme Local Advisory Committee meetings As the main Tertiary development . Stakeholder engagement, including maintained during the year, with feedback provider in Northland, participation in NEAG (Northland Economic into current and future course development we play a key part in the Advisory Group), results measurable in terms of for the following: Education sector meeting the above through our development of the Social, Civil Engineering; Certified and Master involvement . Cultural and Economic Builders; Architectural Technology; well being of the people. Engineering; Electrical; Motor Trades; Forestry; Education is a key driver Road Transport; Business; Foundation for growth. We seek to add Education; Nursing; Social Services; Creative value and be a leader where Writing . relevant. In addition, we have representation on the Tourism Development Group, Northland Economic and Tourism Development Agencies, the Northland Intersectoral Forum (NIF) and the newly formed Northland Economic Advisory Group, the Advisory body to Northland Inc, the newly formed Economic Development agency . Four meetings held . CA accreditation achieved for the Bachelor of Applied Management degree allowing local students to achieve CA qualification locally in conjunction with local branch of NZICA . Various programmes/projects set up in conjunction with Community needs . For example, The Hub in Northland College, Kaikohe for the National Certificate in Hospitality; Working with the Pehiaweri Marae on the Elementary Construction course; the formation of the Campus Chamber with the Chamber of Commerce allowing students to integrate with business; working with NZ Landcare Trust, DOC and various local community groups to protect native forest by pest control .
34 Töu iwi, töu wänanga • Your people, your place 2012 STATEMENT OF SERVICE PERFORMANCE
OUTCOME FOR OUR COMMUNITIES u We will be valued by our communities, with those surveyed considering that NorthTec makes a positive contribution to the region.
What the measure Measure 2012 Projection 2012 Actual relates to: Value added to Society and • Positive community engagement and awareness Achieved In progress . local economy. of NorthTec vision and strategic goals . Survey and Not surveyed . First Annual meeting held for As the main Tertiary annual meeting to test . stakeholders in June of 2012 . Strategy and provider in Northland, programme development presented . In 2013 we play a key part in the we will survey attendees . development of the Social, • NorthTec expertise utilised in national and regional Increasing Achieved . Cultural and Economic economic, cultural and environmental projects/ CE is the Education representative for the well being of the people. forums . NEAG (Northland Economic Advisory Group) . Education is a key driver Director Corporate Services was the Chair for growth. We seek to add of Northland Economic Development and value and be a leader where Arts Agency until July 2012 . Board members relevant. represented at various national and local forums . See page 100 - 104 for details of Staff research, conference contribution, journals and exhibition involvement .
Michelle Allen, Bachelor of Applied Social Service “You can’t be at NorthTec and have a small mind . Doing this course has widened my perspective on life and my understanding of people .”
“My journey of education has given me power and pride and it is rubbing off on my three STUDENT kids . They are now reading books and they know Mum is happier . I want a job that can support us well . With good support of friends and family, we can choose to do anything . Ask for help… . and ask again .”
Töu iwi, töu wänanga • Your people, your place 35 2012 STATEMENT OF SERVICE PERFORMANCE
OUTCOME FOR MÄORI u NorthTec will be a place where Mäori can succeed educationally as Mäori, with course and qualification completion rates being equal to those of NorthTec as a whole.
What the measure Measure 2012 Projection 2012 Actual relates to: Mäori Educational • Mäori students % increase (base 46%) . Increasing Achieved . Performance. Proportion of SAC Eligible EFTS who are Mäori Overall actual 54 .6% We seek to be a sought • Lift the APIs for Mäori at NorthTec - see Investment Increasing Achieved . after Tertiary educator plan APIs (see page 39-44) . Small movement in course completion rates for the Iwi/Mäori of Te Tai but significant improvement in qualification Tokerau. Our goal is to improvement rates . See page 43 . enhance the ability of Mäori In addition, the NorthTec Nursing Programme to succeed and lifting the was assessed as first out of 16 Tertiary Educational performance providers for supporting and developing Mäori measures and participation nursing students (by Nga Manakura o Apopo is our objective. – based on 2011 criteria) .
Fostering and improving • Progression rates from TWOA programmes increase Met Not measured . In 2012 we have identified relationships with Te the Academic pathways for measurement in Wänanga O Aotearoa, 2013 . Collaboration projects with TWOA and Te Whare Wänanga o TWOA continue and we recognise the need Awanuiärangi and others. to resource and develop these relationships We already work with both in 2013 . The Mäori Responsiveness Plan, Wänanga and recognise the “Te Kapehu” has been developed in 2012 to need to collabarate more. provide direction . • Identification and development of initiatives in Increasing See above and also the initiatives described collaboration with schools, kura kaupapa, wänanga in our Equity statement on page 99 . and PTE to enhance educational pathways for Mäori • Adoption of Mäori responsiveness plan by Council Met Achieved . Adopted in November 2012
Kura Te Waru Rewiri, Programme Leader Mäori Arts and Te Puna Ö Te Mätauranga “The challenge is to create a Mäori kaupapa for this organisation and to realise the importance of whakapapa . Only Mäori can do that, so we need strong and visible leadership .’’ PROGRAMME LEADER “We need to be pro-active and get together to talk about what we want . I don’t have all the answers but I can help start something . I am here for my people .”
36 Töu iwi, töu wänanga • Your people, your place 2012 STATEMENT OF SERVICE PERFORMANCE
OUTCOME FOR THE GOVERNMENT u NorthTec is in the upper quartile of national benchmarking for educational performance and is financially responsible, being efficient in the use of resources and capable of meeting future needs for capital investment whilst maintaining adequate reserves.
What the measure Measure 2012 Projection 2012 Actual relates to: Improved educational • Investment Plan SAC EFTS and APIs achieved Improving Overall achieved . performance. See pages 39-44 Our Investment Plan is • New or redeveloped programmes include pathways Improving Achieved . our contract with the to higher level study Government for Tertiary Built into new course development education delivery in • Level of satisfaction with programme and teaching Improving Achieved . Northland (see pages quality (measured by survey) 39-44). We have set our See survey results above under “Return on objectives which seek Investment” for Students to improve our standing in relation to other Polytechnics and at the same time improve our return on investment for students.
Securing Financial • Improve Surplus as % of revenue from 3% base in Increasing Achieved . Sustainability. 2011 Surplus at 3 .5% Increasing revenue and • Increase financial contribution from international Increasing Achieved . becoming more efficient education will allow us to meet Increase in International EFTS in 2012 from stakeholder needs in the 64 to 108 future. • Business case presented for Auckland presence to Met Not achieved, but Plan adopted by Council at meet targeted growth by 2015 of 280 EFTS January 2013 meeting
Töu iwi, töu wänanga • Your people, your place 37 2012 STATEMENT OF SERVICE PERFORMANCE
THE REGION’S EMPLOYERS u We will be the preferred provider of education for the region’s employers, with those sampled preferring to employ NorthTec graduates over those from other Tertiary providers.
What the measure Measure 2012 Projection 2012 Actual relates to: Value added to industry • Graduate attributes perceived as relevant to Achieved Not achieved . and society. industry (determined by survey) Not surveyed in 2012 By understanding and anticipating regional • Positive employer perceptions of NorthTec’s Increasing Not achieved as not surveyed . employer needs we can help graduates’ skills and knowledge (determined by However, Graduate survey released in provide employment for our survey) November 2012 records 57% of graduates graduates. surveyed were working or self employed on 1 June 2012 . 73 .5% of graduates said their qualification was highly or partly related to their current job . We recognise the need for improved stakeholder survey information . This will be developed in 2013 . STUDENT
Evan McPhee, Diploma of Sport and Recreation “This is an awesome course . We have trips away to Auckland gyms, or rock climbing, or water rafting, and the trips are part of assessments .”
“I want to be a personal trainer and this sport and recreation diploma is perfect for that . It gives me papers in nutrition, anatomy, physiology, and training techniques, plus the use of the equipment and the gym .”
38 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
The Crown Entities Act 2004 and section 220 of the Education Act 1989 provide the legal requirements for public reporting by NorthTec.
The Education Amendment Act requires the Polytechnic Council to prepare an Investment Plan that includes the goals of the institution. The objectives that follow are those adopted in the Investment Plan for 2011–2013. Actual results for 2011 reported are those from the 2011 Annual Report. Final results in July 2012 (as confirmed by the TEC) differ only marginally with the exception of qualification completion rates. The overall rate achieved was 64% and not the 60% recorded originally.
INVESTMENT PLAN OBJECTIVES
Increase literacy, numeracy and language skills outcomes 1 from Levels 1–3 of study
Increase educational success for young New Zealanders – more achieving qualifications at Level 4 and above by age 2 25, particularly degrees
Increase the number of Mäori students enjoying success 3 at higher levels
Improve the Educational performance by NorthTec as measured by our course and qualification completion 4 rates, retention and progression statistics .
Töu iwi, töu wänanga • Your people, your place 39 ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Investment Plan 2011–2013.
Objective:
Increase the number of people with foundation learning needs participating in quality education focussed on lifting literacy, language and numeracy skills. 1 Measures/Indicators:
The proportion of Levels 1 – 3 courses offered that contain embedded literacy OBJECTIVE and numeracy . u Increase literacy, The proportion of EFTS assessed as requiring additional literacy and numeracy who are enrolled in Levels 1 – 3 courses and make literacy and numeracy numeracy and language progress as measured by the Literacy and Numeracy for Adults Assessment skills outcomes from Tool . Levels 1 to 3 of study Target 2012:
90% Courses offered that contain embedded literacy and numeracy Effective provision at National 80% by EFTS for Levels 1 - 3 enrolled in these courses . Qualification Framework No target was set for the proportion of EFTS making progress . (NQF) Levels 1 - 3 includes the strengthening of learners' ACTUAL 2012: literacy and numeracy skills EFTS achieved . Courses not achieved . enabling greater success at Overall 80% of our students and 84% of courses offered contained embedded higher levels of education with literacy and numeracy in accordance with this measure . (2011: 85% and 68% respectively) . The important indicator is the number of students assessed and progress to higher skilled jobs. not the number of courses (12 week courses, for example, were excluded from assessment due to their short duration) . Achievement of our target was aided by organised courses for tutors to upskill their knowledge . 59 .1% of our students were measured as showing improvement based on the assessment tool data (no comparative available) .
LuKE MURRAY, Diploma of Visual Arts “By walking into this course, I’ve walked into the modern world . I’m majoring in photography and graphic design in Visual Arts to learn computer and technical skills that STUDENT will lead me to the next stage of my life .” “The tutors are dedicated, and as students we all learn from each other . I can help them with my life experience, and they help me with modern technology .”
40 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Investment Plan 2011–2013.
Objective: Increase the proportion of EFTS for students aged under 25 enrolled in qualifications at Level 4 and above, particularly degrees. 2 Measures/Indicators: EFTS in Level 4 and above qualifications as a percentage of total EFTS . OBJECTIVE Target 2012: u Increase educational 15% (2011: 13%) success for young New Zealanders ACTUAL 2012: Achieved – 32 .5% (2011: 33%) – more achieving New qualifications introduced at Levels 4 – 7 in 2011, in addition to our qualifications at Level strategic move to increase the percentage of under-25-year-old students, has enabled us to maintain this percentage . Our percentage of EFTS for those 4 and above by age 25, under-25 at Levels 1 – 3 was 40 .4% against a target of 25% (2011: 33%) .
particularly degrees New degree courses in 2011 have included the Bachelor of Applied Management and accreditation to the New Zealand Institute of Chartered The Government has set a Accountants Associate qualification . clear expectation that NorthTec will build better transitions Objective: from Secondary to Tertiary Increase course completion rates of students aged under 25 education, contributing to enrolled in qualifications at Level 4 and above. a progressive increase in qualification completion at Measures/Indicators: higher levels. Our focus is Successful course completion rates for courses Level 4 and above for students set on improving qualification aged under 25 . completions at National Target 2012: Qualification Framework (NQF) 75% (2011: 74%) Level 4 and above, particularly at degree level. enabling greater ACTUAL 2012: success at higher levels of Achieved – 80 .3% (2011: 80%) education with progress to higher Strategies put in place in 2010 and 2011 have been realised, improving our skilled jobs. study completion rates . These include embedding career education in selected Foundation programmes at Levels 1 – 3 and extended pastoral care put in place by our student success team . For Levels 1 – 3 we achieved 73% (2011: 71%) against a target of 70% .
Töu iwi, töu wänanga • Your people, your place 41 ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Investment Plan 2011–2013.
Objective:
Increase qualification completion rates of students aged under 25 enrolled in qualifications at Level 4 and above.
Measures/Indicators:
Successful qualification completion rates for students aged under 25 and enrolled in courses at Level 4 and above .
Target 2012:
51% (2011: 50%)
ACTUAL 2012:
Achieved – 82 .6% (2011: 48%) A significant improvement on 2011 due to the strong focus given to this objective . Particular improvements for Bachelor of Nursing, National Diploma in Hospitality and National Certificate in Carpentry . Matches improvement in all student qualification rates as set out on page 26 . For Levels 1 – 3 we achieved 60 .7% (2011: 45%) against a target of 41% .
Lucas Connew, Automotive Engineering After 13 years in the army as a diesel mechanic and being posted all over New Zealand, Lucas was ready to come home to the north and settle in one place for a while .
TUTOR “I’m still adjusting to being in a civilian environment and I’m learning a lot about teaching and the trade . At the NorthTec staff conference there was a strong push on values and that was pleasing to see . NorthTec is a big part of the Northland community .”
42 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Investment Plan 2011–2013.
Objective:
Increase the proportion of enrolled EFTS for Mäori and improve their course and qualification completion rates.
3 Measures/Indicators: Proportion of enrolled EFTS course and qualification completion rates for Mäori .
OBJECTIVE Target 2012: u Increase the number Enrolled EFTS: of Mäori students Levels 1 – 3 27% (2011: 26%) Level 4 and above 16% (2011: 15%) enjoying success at Successful course completion: Levels 1 – 3 72% (2011: 70%) higher levels Level 4 and above 70% (2011: 69%) Successful qualification completion: The Government is intent on Levels 1 – 3 45% (2011: 42%) improving successful transitions Level 4 and above 48% (2011: 47%) from Secondary to Tertiary ACTUAL 2012: education for Mäori who are under represented at Diploma, Degree Achieved Enrolled EFTS: and Post Graduate level. This is Levels 1 – 3 63 .4% (2011: 50%) a particularly important area for Level 4 and above 44 .1% (2011: 42%) NorthTec given our demographics Successful course completion: and the future population growth Levels 1 – 3 75 .5% (2011: 72%) for Mäori in Northland. Level 4 and above 77 .4% (2011: 78%) Successful qualification completion: Levels 1 – 3 60 .9% (2011: 51%) Level 4 and above 66 .9% (2011: 48%)
Improvements have been gained on all these measures compared to 2011 . Mäori students overall account for 54 .6% of our EFTS . Particular increases at Levels 1 – 3 have boosted EFTS from 762 to 971 in 2012 and recorded in our Te Puna, Hospitality, Forestry and Elementary Construction courses . EFTS at Level 4 have increased from 514 to 565 .
Töu iwi, töu wänanga • Your people, your place 43 ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Investment Plan 2011–2013.
Objective: Improve the Educational performance of NorthTec as measured by our course and qualification completion rates, retention and progression statistics. 4 Measures/Indicators: Successful course and qualification completion rates, student retention rates OBJECTIVE and student progression at Levels 1 – 3 and Levels 4 and above . u Improve the Target 2012: Successful course completion rates: Educational All students 75% (2011: 73%) performance of Levels 1 – 3 73% (2011: 71%) Level 4 and above 82% (2011: 80%) NorthTec Successful qualification completion rates: All students 50% (2011: 45%) We have set a target of being Levels 1 – 3 47% (2011: 41%) Level 4 and above 53% (2011: 51%) placed in the upper quartile of Student retention rate: national benchmarking of all All students 51% (2011: 50%) NZ Polytechnics for Educational Study progression for students: Levels 1 – 3 36% (2011: 35%) Performance. We must continually improve on our study ACTUAL 2012: completion and qualification Achieved except for student progression rate of Levels 1 – 3 completion rates Successful course completion rates: All students 79 .1% (2011: 79%) as well as focus on improving Levels 1 – 3 78 .7% (2011: 75%) our progression to higher levels Level 4 and above 79 .7% (2011: 84%) of study. Successful qualification completion rates: All students 67 .2% (2011: 60%) Levels 1 – 3 59 .3% (2011: 52%) Level 4 and above 77 .2% (2011: 65%) Student retention rate: All students 61% (2011: 53%) Study progression for students: Levels 1 – 3 31 .7% (2011: 29%)
Whilst our course completion rates have moved only slightly from 2011 it is the qualification completion rates that have increased the most . This is due to the focus and attention given to this area and including pastoral care initiatives .
Significant improvement has been achieved with increases in our retention and progression rates . This is particularly pleasing being a focus for us . Attention to pathways planning and pastoral care have benefited these measures .
44 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Crown Loan Agreement.
In June 2009, NorthTec borrowed $8.5million from the government. This loan was subject to annual tranches of equity conversion upon meeting agreed measures. These measures for 2012 are set out below and represent the final year of disclosure. See page 82 for more details.
Measures/Indicators: OBJECTIVE EFTS studying Trades training as a proportion of total EFTS studying at NorthTec u Increase the Target 2012: proportion of NorthTec All students 21% (2011: 20%) EFTS undertaking Mäori Students under 25 10 .5% (2011: 10%) Trades training ACTUAL 2012: Achieved – 24 .5% and 24% respectively (2011: 24% and 23%) . NorthTec has aligned its programme portfolio so it is teaching predominantly National Certificates and, in 2011, established a best practice Youth Guarantees model with a significant Trade training component . Accreditations and offerings in 2011 and 2012 have been extended to cover, for example, the Painting, Automotive Engineering and Commercial Road Transport industries .
Measures/Indicators: OBJECTIVE EFTS studying at Level 4 and above in Trades as a proportion of the total EFTS studying Trades u Increase the Target 2012: proportion of NorthTec 25% (2011: 24%) EFTS studying at Level 4 and above ACTUAL 2012: Achieved – 38 .7% (2011: 28%) in Trades A significant improvement on 2011 in keeping with our strategic intent to raise the level of study: for example, the new National Certificate in Motor Industry qualification has exit pathways at Levels 2, 3 and 4; and our Youth Guarantee model aims to meet the needs of a high number of NEET (Not in Education, Employment or Training) students in Northland .
Töu iwi, töu wänanga • Your people, your place 45 ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Crown Loan Agreement.
Measures/Indicators: OBJECTIVE EFTS aged 25 and under, studying Trades training at Level 4 and above as a proportion of the total EFTS under 25 studying Trades . u Increase the Target 2012: proportion of EFTS 10% (2011: 9%) under the age of 25 studying in Trades ACTUAL 2012: Achieved – 24 .1% (2011: 15%) training at Level 4 Again, a significant increase due to specific marketing campaigns, liaison and above with schools, transitioning students who graduate from the Youth Guarantees programme and seeking other progression opportunities .
Measures/Indicators: OBJECTIVE Rates of progression for Mäori students under 25 from Levels 1 to 3 (measured by students returning the following year to higher level study) . u Increase progression Target 2012: rates for Mäori students Mäori students under 25 – 3% (2011: 3%) under 25 moving from Trades training at ACTUAL 2012: Achieved – 14 .4% (2011: 9%) Levels 1 to 3 to Trades An improvement on 2011 and in line with our strategic intent as discussed on training at Level 4 page 39 . and above
46 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Crown Loan Agreement.
Measures/Indicators: OBJECTIVE Successful completion rate for Trades courses Level 4 and above for students aged under 25 u Increase completion Target 2012: rates of students aged 80% under 25 enrolled in Trades training at ACTUAL 2012: Achieved – 94 .7% (2011: 86%) Level 4 and above Improvements in the achievement of this API are due to the measures taken on Levels 1-3 courses, progressing to Level 4, involving targeted selection of staff to meet the learning needs in the regions; and the embedding of literacy and numeracy training within courses with the introduction of project based teaching and learning assessments .
Measures/Indicators: OBJECTIVE An agreed collaborative arrangement u Collaborative Target 2012: agreements with three Agreed collaborative arrangement with three ITOs by 30 June 2012 and a further two by 30 June 2013 ITOs and high level arrangements with a ACTUAL 2012: Achieved – Agreements with Competenz for block courses in both the further two Fabrication and Mechanical Engineering trades and with the New Zealand (by 30 June 2013) Motor Industry Training Organisation (NZMITO) for the writing and delivery of material for automotive qualification . In addition, NorthTec contracted and delivered learning and assessment material for their New Zealand Marine Industry Training Organisation for their boatbuilding qualifications (in both composite and metal boatbuilding) . Discussions are underway with the Skills Organisation (formerly ETITO) for electrical training and plumbing training (formerly the Plumbing, Gasfitting, Drainlaying and Roofing Industry Training Organisation) .
Töu iwi, töu wänanga • Your people, your place 47 ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Crown Loan Agreement
Measures/Indicators: OBJECTIVE Advanced u Demonstrate that Target 2012: progress to the To progress to “Advanced” standard (1 July 2011: “core” standard) “Advanced” Asset Management standard is ACTUAL 2012: Achieved – revised target . met as at 1 June 2012 A review by TEC consultants in August 2010 confirmed that NorthTec is (revised objective) currently meeting the “core” expectations for the 12 Capital Asset Management attribute areas . TEC initial expectations of reaching “Advanced” standard have been jointly agreed as requiring reworking and the target has been revised to that of “making significant progress” towards “advanced” . We have shown significant progression to satisfy this Crown Loan requirement .
Measures/Indicators: OBJECTIVE Financial targets measured u Capability Target 2012: development Surplus: 2% – Surplus as % of total revenue (2011: 1%) Cash: 105% – Total operating Cash inflows/operating cash outflows (2011: 105%) Liquid funds: 4 .5% – Total Cash/Total Operating Cash outflows (2011: 3%)
ACTUAL 2012: Achieved Surplus: 3 .5% (2011: 3%) Cash: 110% (2011: 112%) Liquid funds: 29% (2011: 28%)
48 Töu iwi, töu wänanga • Your people, your place ACADEMIC PERFORMANCE INDICATORS (API)
Report against Objectives and Academic Performance Indicators (API) from the NorthTec Crown Loan Agreement
Measures/Indicators: OBJECTIVE A set of indicators to measure our Future Trades operating efficiencies covering: • Student/Academic staff ratio u Operational • Income/Tutor ratio Efficiency • Total timetabled teaching space hours Target 2012: Student/Academic staff ratio: 13 .8 (2011: 13 .2) Income/Tutor ratio: $156,000 (2011: $150,000) Total timetabled teaching space hours: 14,000 (2011: 13,000)
ACTUAL 2012: Achieved . Student/Academic staff ratio: 19 .96 (2011: 14 .7) Income/Tutor ratio: $185,946 (2011: $150,000) Total timetabled teaching space hours: 33,676 (2011: 26,863) Workshop size is limited for a number of courses and particularly in our regional centres . However, 2012 has benefited from higher MITO EFTS, with a higher than average student/FTE ratio .
ELIZABETH TURNER, Diploma in Architectural Technology “This Architectural Technology Diploma opens up a broad range job of opportunities . You can be an engineering technician, an architectural technician, do draughting and architectural drawing, or go on and do architecture .” STUDENT “We have a small class so we help each other out, and we get a lot of one-on-one time from the tutors . They really know what they are talking about because they’ve been out there and done it .”
Töu iwi, töu wänanga • Your people, your place 49
FINANCIALFINANCIAL REPORTING REPORTING AUDIT REPORT
Independent Auditor’s Report To the readers of Northland Polytechnic’s financial statements and non-financial performance information for the year ended 31 December 2012
The Auditor-General is the auditor of Northland Polytechnic (the Polytechnic) . The Auditor-General has appointed me, Karen MacKenzie, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and non-financial performance information of the Polytechnic on her behalf .
We have audited:
• the financial statements of the Polytechnic on pages 55 to 93, that comprise the statement of financial position as at 31 December 2012, the statement of comprehensive 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 explanatory information; and
• the non-financial performance information of the Polytechnic in the statement of service performance on pages 32 to 49 .
Opinion
In our opinion:
• the financial statements of the Polytechnic on pages 55 to 93:
comply with generally accepted accounting practice in New Zealand; and
fairly reflect the Polytechnic’s:
financial position as at 31 December 2012; and financial performance and cash flows for the year ended on that date;
• the non-financial performance information of the Polytechnic on pages 32 to 49 fairly reflects the Polytechnic’s service performance achievements measured against the performance targets adopted in the investment plan for the year ended 31 December 2012 .
Our audit was completed on 26 April 2013 . This is the date at which our opinion is expressed .
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 .
Basis of opinion
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate 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 non-financial performance information are free from material misstatement .
Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and non-financial performance information . If we had found material misstatements that were not corrected, we would have referred to them in our opinion .
52 Töu iwi, töu wänanga • Your people, your place An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and non-financial performance information . The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and non-financial performance information, whether due to fraud or error . In making those risk assessments, we consider internal control relevant to the Polytechnic’s preparation of the financial statements and non-financial performance information that fairly reflect the matters to which they relate . We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Polytechnic’s internal control .
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 appropriateness of the reported service performance within the Polytechnic’s framework for reporting performance; • the adequacy of all disclosures in the financial statements and non-financial performance information; and • the overall presentation of the financial statements and non-financial performance information .
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and non-financial performance information . Also we did not evaluate the security and controls over the electronic publication of the financial statements and non-financial performance information .
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 Polytechnic’s financial position, financial performance and cash flows .
The Council is also responsible for preparing non-financial performance information that fairly reflects the Polytechnic’s service performance achievements measured against the performance targets adopted in the investment plan .
The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and non- financial performance information that are free from material misstatement, whether due to fraud or error . The Council is also responsible for the publication of the financial statements and non-financial performance information, whether in printed or electronic form .
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 non-financial performance information 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 External Reporting Board .
Other than the audit, we have no relationship with or interests in the Polytechnic .
Karen MacKenzie
Audit New Zealand On behalf of the Auditor-General Auckland, New Zealand
Töu iwi, töu wänanga • Your people, your place 53 STATEMENT OF RESPONSIBILITY
For the year ended 31 December 2012
In terms of the Education Act 1989 and the Crown Entities Act 2004, Council and Management certify that:
We have been responsible for the preparation of these financial statements and the statements of service performance for Northland Polytechnic and the 1 judgements used therein; and
We have been responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial 2 reporting; and
We are of the opinion that these financial statements and the statements of service performance fairly reflect the financial position of Northland Polytechnic as at 31 December 2012 and the results of the operations for the year ended 3 31 December 2012 .
Vern Dark Paul Binney Council Chairperson Chief Executive 26 April 2013 26 April 2013
54 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
Statement of comprehensive income for the year ended 31 December 2012
Actual Budget Actual 2012 2012 2011 $000 $000 $000 Income Note Government grants 3 27,500 27,449 27,373 Tuition fees 3 7,987 8,816 7,333 Interest income 519 400 471 Other income 3 1,080 955 824 Total income 37,086 37,620 36,001
Expenditure Personnel costs 4 21,733 21,599 20,209 Depreciation and amortisation expense 11,12 2,523 2,796 2,411 Finance costs 5 1 - 4 Other expenses 6 11,539 11,994 12,296 Total expenditure 35,796 36,389 34,921
Surplus/(deficit) 1,290 1,231 1,080
Other Comprehensive income
Gains on Property revaluations 11 - - - Other - - - Total other comprehensive income ------Total comprehensive income 1,290 1,231 1,080
Explanations of major variances against budget are provided in note 26 . The accompanying notes form part of these financial statements .
Töu iwi, töu wänanga • Your people, your place 55 FINANCIAL STATEMENTS AND NOTES
Statement of Financial Position as at 31 December 2012
Actual Budget Actual 2012 2012 2011 $000 $000 $000 Assets Note Current assets Cash and cash equivalents 7 5,110 8,797 9,188 Debtors and other receivables 8 438 556 488 Other financial assets 9 4,562 - - Inventory 10 29 18 32 Non-current assets held for sale 49 - - Prepayments 196 348 209 Total current assets 10,384 9,719 9,917
Non-current assets Property, plant and equipment 11 38,828 39,053 38,468 Intangible assets 12 346 437 509 Total non-current assets 39,174 39,490 38,977 Total assets 49,558 49,209 48,894
Liabilities Current liabilities Creditors and other payables 13 1,908 1,800 2,350 Revenue received in advance 14 362 553 692 Borrowings 15 - 98 99 Employee entitlements 16 1,132 761 906 Provisions 24 - - - Total current liabilities 3,402 3,212 4,047
Non-current liabilities
Employee entitlements 16 18 - -
Total non-current liabilities 18 - - Total liabilities 3,420 3,212 4,047 Net assets 46,138 45,997 44,848
Equity General funds 17 28,250 28,110 25,084 Suspensory Crown loan 17,19 1,870 1,870 3,747 Property revaluation reserve 17 15,948 15,948 15,948 Restricted reserves - (Student Hardship Fund) 17 70 69 69 Total equity 46,138 45,997 44,848
Explanations of major variances against budget are provided in note 26 . The accompanying notes form part of these financial statements .
56 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
Statement of Changes in Equity for the year ended 31 December 2012
Actual Budget Actual 2012 2012 2011 $000 $000 $000
Balance at 1 January Note 44,848 44,766 43,768 Comprehensive Income Surplus/(deficit) 1,290 1,231 1,080 Other comprehensive income - - -
Total comprehensive income 1,290 1,231 1,080
Non-comprehensive Income Capital contributions from the Crown - - - Suspensory loans from the Crown - - - Restricted Student Hardship Fund - - - Total non-comprehensive income - - - Balance at 31 December 17 46,138 45,997 44,848
Explanations of major variances against budget are provided in note 26 . The accompanying notes form part of these financial statements .
Töu iwi, töu wänanga • Your people, your place 57 FINANCIAL STATEMENTS AND NOTES
Statement of Cash Flows for the year ended 31 December 2012
Actual Budget Actual 2012 2012 2011 $000 $000 $000 Cash flows from operating activities Note Receipts from government grants 27,373 27,757 27,660 Receipts from tuition fees 7,651 8,346 7,456 Interest income received 519 400 471 Receipts from other income 1,133 904 683 Payments to employees (21,488) (21,483) (20,034) Payments to suppliers (11,868) (12,039) (12,268) Student Hardship Fund interest 1 - - Interest paid (1) - (4) Goods and services tax (net)* 31 - (11) Net cash flow from operating activities 3,351 3,885 3,953
Cash flows from investing activities Receipts/(Cost of disposal) from sale of property, plant & equipment 1 - 3 Purchase of property, plant & equipment 11 (2,717) (3,977) (3,334) Purchase of intangible assets 12 (52) - (44) Acquisition of investments - - - Receipts from sale/maturity of investments (4,562) - 4,063 Net cash flow from investing activities (7,330) (3,977) 688
Cash flows from financing activities Capital contributions from the Crown - - - Suspensory loans from the Crown - - - Payment of finance leases 15 (99) - (152) Net cash flow from financing activities (99) - (152)
Net (decrease)/increase in cash and cash equivalents (4,078) (92) 4,489 Cash & cash equivalents at beginning of the year 7 9,188 8,889 4,699 Cash & cash equivalents at end of the year 5,110 8,797 9,188
* The GST (net) component of operating activities reflects the net GST paid to and received from the IRD . The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the presentation basis of other primary financial statements .
Explanations of major variances against budget are provided in note 26 . The accompanying notes form part of these financial statements .
58 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
Statement of Cash Flows (continued) for the year ended 31 December 2012 Reconciliation of net surplus (deficit) to the net cash flow from operating activities
Actual Actual 2012 2011 $000 $000
Surplus/(deficit) from the statement of comprehensive income 1,290 1,080
Add/(less) non-cash items Increase/(decrease) in non-current employee entitlements 18 - Depreciation and amortisation expense 2,523 2,411 Total non-cash items 2,541 2,411
Add/(less) items classified as investing or financing (Gains)/losses on disposal of property, plant and equipment (1) (3) Total items classified as investing or financing activities (1) (3)
Add/(less) movements in working capital items (Increase)/decrease in debtors and other receivables 50 37 (Increase)/decrease in inventory 3 (25) (Increase)/decrease in prepayments 13 65 Increase/(decrease) in creditors and other payables (442) 426 Increase/(decrease) in revenue received in advance (330) (44) Increase/(decrease) in provisions - (170) Increase/(decrease) in current employee entitlements 226 176 Net movement in working capital items (480) 465 Net cash flow from operating activities 3,351 3,953
Explanations of major variances against budget are provided in note 26 . The accompanying notes form part of these financial statements .
Töu iwi, töu wänanga • Your people, your place 59 FINANCIAL STATEMENTS AND NOTES
Notes to the Financial Statements 1. STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2012
REPORTING ENTITY many of the differences between the accounting standards in each jurisdiction . The main effect of the amendments on NorthTec is The financial statements of Northland Polytechnic, trading as that donations are no longer required to be separately disclosed NorthTec are for the year ended 31 December 2012 . The Financial and certain information about property evaluations is no longer Statements were authorised for issue by the Council on 26th April required to be disclosed . Note 6 “Other expenses” and Note 11 2013 . “PPE” have been updated for these changes . NorthTec is a Crown entity and is established under the Education Standards issued that are not yet effective and have Act 1989 as a public tertiary institution . It provides full- and part- not been early adopted: time education in New Zealand . • NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and SUMMARY OF SIGNIFICANT REPORTING POLICIES Measurement. NZ IAS 39 is being replaced through the following (a) Basis of Preparation three main phases: Phase 1 Classification and Measurement, The financial statements of NorthTec have been prepared in Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting . accordance with NZ GAAP, the Crown Entities Act 2004 and the Phase 1 has been completed and has been published in the new Education Act 1989 . They comply with New Zealand International financial instrument standard NZ IFRS 9 . NZ IFRS 9 uses a single Reporting Standards (NZ IFRS) and other applicable financial approach to determine whether a financial asset is measured reporting standards for Public Benefit Entities . at amortised cost or fair value, replacing the many different rules in NZ IAS 39 . The approach in NZ IFRS 9 is based on how Northland Polytechnic is a public benefit entity for the purpose of an entity manages its financial assets (its business model) and complying with NZ IFRS in New Zealand . the contractual cash flow characteristics of the financial assets . The financial statements are presented in New Zealand dollars and The financial liability requirements are the same as those in NZ all values are rounded to the nearest thousand dollars ($’000) . IAS 39, except for when an entity elects to designate a financial The financial statements have been prepared on an historical cost liability at fair value through the surplus or deficit . The new basis, modified by revaluation of land, buildings, infrastructure standard is required to be adopted for the year ended 31 June assets and investment property . 2016 . However, as a new Accounting Standards Framework will
Changes in accounting policies apply before this date, there is no certainty when an equivalent There have been no changes in accounting policies during the standard to NZ IFRS 9 will be applied by public benefit entities . The financial year . Minister of Commerce has approved a new accounting standards NorthTec has adopted the following revisions to accounting framework (incorporating a Tier Strategy) developed by the standards during the financial year which have only had a External Reporting Board (XRB) . Under this Accounting Standards presentational or disclosure effect: Framework, NorthTec is classified as a Tier 1 reporting entity and it will be required to apply full public sector Public Benefit Entity • FRS-44 New Zealand Additional Disclosures and Accounting Standards (PAS) . These standards are being developed Amendments to NZ IFRS to harmonise with IFRS by the XRB and are mainly based on current International Public and Australian Accounting Standards (Harmonisation Sector Accounting Standards . The effective dates for the new Amendments) - The purpose of harmonising Australia and New standards for public sector entities is expected to be for reporting Zealand’s accounting standards with source IFRS is to eliminate periods beginning on or after 1 July 2014 . This means NorthTec
60 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
expects to transition to the new standards in preparing its 31 Investments in subsidiaries are carried at cost in NorthTec’s own December 2015 Financial statements . As the PAS are still under “parent entity” financial statements . development, NorthTec is unable to assess the implications of the NorthTec does not currently have any subsidiaries . new accounting standards framework at this time . Investments in jointly controlled entities are carried at cost in Due to the change in the accounting standards frameworks NorthTec’s financial statements . for public benefit entities, it is expected that all NZ IFRS and amendments to existing NZ IFRS will not be applicable to public (b) Critical Accounting Estimates and Judgements benefit entities . Therefore, the XRB has effectively frozen the To conform with NZ IFRS, management is required to make financial reporting requirements for public benefit entities up until judgements, estimates and assumptions that affect the the new accounting standard framework is effective . Accordingly, application of policies and reported amounts of assets and no disclosure has been made about new or amended NZ IFRS that liabilities, income and expenses . The estimates and associated exclude public benefit entities from their scope . assumptions are based on historical experience and various other factors that are believed to be reasonable under the Basis of consolidation circumstances, the results of which form the basis of making The purchase method is used to prepare the consolidated financial judgements about carrying values of assets and liabilities that are statements, which involves adding together like items of assets, not readily apparent from other sources . Actual results may differ liabilities, equity, income and expenses on a line-by-line basis . from these estimates . All significant intragroup balances, transactions, income and expenses are eliminated on consolidation . The estimates and underlying assumptions are reviewed on an ongoing basis . Revisions to accounting estimates are recognised Subsidiaries in the period in which the estimate is revised if the revision affects NorthTec consolidates as subsidiaries in the group financial only that period; or in the period of the revision and future periods statements all entities where NorthTec has the capacity to control if the revision affects both current and future periods . their financing and operating policies so as to obtain benefits from the activities of the entity . This power exists where NorthTec Judgements made by management in the application of NZ IFRS controls the majority voting power on the governing body or where that have a significant effect on the financial statements, and such policies have been irreversibly predetermined by NorthTec or estimates that carry a significant risk of material adjustment where the determination of such policies is unable to materially in the next year, are discussed in the notes to the financial impact the level of potential ownership benefits that arise from the statements . Of particular relevance to NorthTec are: activities of the subsidiary . Impairment of non-financial assets other than
NorthTec measures the cost of a business combination as the goodwill aggregate of the fair values, at the date of exchange, of assets NorthTec assesses impairment at each reporting date by given, liabilities incurred or assumed, in exchange for control of evaluating conditions specific to NorthTec and to the particular the subsidiary plus any costs directly attributable to the business asset that may lead to impairment . These include programme combination . performance, technology, economic and political environments and future programme expectations . If an impairment trigger exists Any excess of the cost of the business combination over the recoverable amount of the asset is determined . Management NorthTec’s interest in the net fair value of the identifiable assets, do not consider that the triggers for impairment testing have been liabilities and contingent liabilities is recognised as goodwill . If significant enough and as such these assets have not been tested NorthTec’s interest in the net fair value of the identifiable assets, for impairment in this financial period . liabilities and contingent liabilities recognised exceeds the cost of the business combination, the difference will be recognised Estimation of useful lives of assets immediately in the statement of financial performance . The estimates of useful lives of assets have been based on
Töu iwi, töu wänanga • Your people, your place 61 FINANCIAL STATEMENTS AND NOTES
historical experience as well as manufacturers’ warranties (for end of the lease therefore outright purchasing is not the preferred plant and equipment) lease terms (for leased equipment) and option . turnover policies (for motor vehicles) . (c) Foreign Currency In addition, the condition of the assets is assessed at least Both the financial and presentation currency of NorthTec are New once per year and considered against the remaining useful life . Zealand dollars ($) . Transactions in foreign currencies are initially Adjustments to useful lives are made when necessary . Useful recorded in the functional currency at the date of the transaction . economic lives are listed (via their depreciation rates) in Foreign exchange gains and losses resulting from the settlement of paragraph (e) . such transactions and from the translation at year end exchange Crown owned land and buildings rates of monetary assets and liabilities denominated in foreign Property in the legal name of the Crown that is occupied by currencies are recognised in the surplus or deficit . NorthTec is recognised as an asset in the statement of financial (d) Revenue position . NorthTec considers it has assumed all the normal risks Revenue is recognised to the extent that it is probable that the and rewards of ownership of this property despite legal ownership economic benefits will flow to the Group and the revenue can be not being transferred and accordingly it would be misleading to reliably measured . The following specific recognition criteria must exclude these assets from the financial statements . also be met before revenue is recognised: Distinction between revenue and capital contributions Government grants Most Crown funding received is operational in nature and Government grants are recognised as revenue upon entitlement . is provided by the Crown under the authority of an expense appropriation and is recognised as revenue . Where funding Student tuition fees is received from the Crown under the authority of a capital Revenue from student tuition fees is recognised in the period appropriation, NorthTec accounts for the funding as a capital in which it is received, with the exception being when a course contribution directly in equity . Information about capital spans balance date . In this case a Fees in Advance liability is contributions recognised in equity is disclosed in note 17 . recognised, based on the percentage of the course to be taught in the ensuing year . Suspensory loans with equity conversion features NorthTec has received a suspensory loan in 2008 from the Crown Sale of materials whereby the loan converts to equity when the conversion conditions Revenue is recognised when the significant risk and rewards of of the loan are satisfied . The draw down is in respect of the Future ownership have passed to the customer and can be measured Trades Programme . reliably .
Because NorthTec is committed to meeting the equity conversion Interest conditions, it considers the loans are in substance equity Interest is accounted for on an accrual basis . Interest income is contributions from the Crown and therefore recognises the amounts recognised using the effective interest method . drawn down under the loan facility directly in the statement of Donations, bequests and pledges changes in equity . Further information about the suspensory loans Donations and bequests are recognised as income when the right is disclosed in note 19 . to receive the fund or asset has been established . Pledges are not
Finance leases recognised as assets or revenue until the pledged item is received . Procurement of computers and technology equipment for NorthTec (e) Property, Plant and Equipment has largely been done through finance leasing versus cash Land and buildings held under Crown title have been included in purchases . The assets are usually technologically obsolete at the the financial statements . Whilst title to the Crown owned land and
62 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
buildings has not yet passed to the polytechnic, these assets have Depreciation been recorded as the polytechnic assumes the risks and benefits of Depreciation is provided on the straight line basis of all property, ownership of these assets . plant and equipment other than land, at rates that will write off the cost (or valuation) of the assets to their estimated residual The measurement basis used for determining the gross carrying values over their useful lives . The useful lives and associated rates amount for each class of assets is as follows: of major classes of assets have been estimated as follows: ~ Land is measured at fair value, and buildings and Plant Buildings: Structures 1 .9% Straight Line and Equipment are measured at fair value less subsequent Buildings: Services 5 .0% Straight Line accumulated depreciation and subsequent accumulated Buildings: Fitout 5 .0% Straight Line impairment losses . Motor Vehicles 20% Straight Line ~ Library books, office equipment, furniture and fittings, motor Plant & Tools 10% Straight Line vehicles and computers are stated at deemed cost, at the 1st Furniture & Fittings 10% Straight Line January 2006, less accumulated depreciation and accumulated Office Equipment 20% Straight Line impairment losses . Electronic Equipment 25% Straight Line ~ Capital work in progress is calculated on the basis of Art Collection Nil expenditure incurred and certified gross progress claim certificates Library Collection 10% Straight Line up to balance date less impairment . Work in progress is not Computer Hardware 25% Straight line depreciated . The total cost of a project is transferred to the Leasehold improvements Life of lease* relevant asset class on its completion and then depreciated . * NorthTec intends to hold the Dyer Street lease for 25 years . Additions Residual values are assessed annually . Additions are recorded at cost . The cost of an item of property, plant and equipment is recognised as an asset if it is probable Impairment that future economic benefits or future service potential associated Assets held for educational and related matters and related with the item will flow to NorthTec and the cost of the item can be activities are assessed for impairment by considering the assets measured reliably . In most instances, an item of PPE is recognised for obsolescence, changes in useful life assessments, optimisation at cost . Where an asset is acquired at no or minimal cost, it is and other related matters . recognised at its fair value . Where material parts of an item of Impairment losses are recognised in the Surplus/(deficit) for property, plant and equipment have different useful lives, they are the year in the other expenses line item . An impairment loss accounted for as separate items of property, plant and equipment . on a relevant class of asset is recognised directly against any revaluation surplus for that asset to the extent of that impairment reserve .
Revaluations Following initial recognition at cost, land and buildings and plant and equipment are carried at a revalued amount which is the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated impairment losses .
Fair value of land is determined by reference to market-based evidence, which is the amount for which the assets could
Töu iwi, töu wänanga • Your people, your place 63 FINANCIAL STATEMENTS AND NOTES
be exchanged between a knowledgeable willing buyer and a Impairment knowledgeable willing seller in an arm’s length transaction as An assessment for impairment has determined that the market at the valuation date . Where buildings have been designed value of all NorthTec’s classes of assets has not declined specifically for educational purposes they are valued at depreciated significantly over the year . There have been no adverse changes replacement cost which is considered to reflect fair value for such which would have or will have an effect on NorthTec in the assets . technological, market, economic or legal environments in which NorthTec’s assets are dedicated . Revaluation of property is carried out on a class of asset basis by an independent registered valuer . Market interest rates and other returns on investment have not affected the discount rate used in calculating our assets’ values . Any net revaluation surplus is credited to the asset revaluation The carrying amounts of our net assets are not materially different reserve included in other comprehensive income unless it reverses than market value and there is no evidence in any class of asset of a net revaluation decrease of the same asset previously recognised obsolescence or physical damage not already taken into account . in the Surplus/(deficit) for the year . Refer Note 11 . There have been no significant change such as assets becoming Any net revaluation decrease is recognised in the Surplus/(deficit) idle, discontinuance of operations, plans to dispose of prior to for the year unless it directly offsets a previous net revaluation expected date or reassessment of useful life as finite rather than gain in the same asset revaluation reserve . infinite . There is neither any evidence to suggest that the economic Any accumulated depreciation as at revaluation date is eliminated performance of NorthTec has or will be worsened . There has been against the gross carrying amount of the asset and the net amount no adverse effect on NorthTec's cash flow as it relates to operation is restated to the revalued amount of the asset . or maintenance of NorthTec's assets .
Gains and losses on disposals are reported net in the Surplus/ Non-current assets held for sale (deficit) for the year . Upon disposal, any revaluation reserve Non-current assets held for sale are classified as held for sale if relating to the particular asset being sold is transferred to retained their carrying amount will be recovered principally through a sale earnings . transaction rather than through continuing use . Non-current assets held for sale are measured at the lower of their carrying amount Independent valuations are performed with sufficient regularity to and fair value less costs to sell . Any impairment losses for write- ensure that the carrying amount does not differ materially from the downs of non-current assets held for sale are recognised in the asset’s fair value at the balance sheet date . surplus or deficit . Any increases in fair value (less costs to sell) are Revaluations will be carried out at intervals not exceeding three recognised up to the level of any impairment losses that have been years . previously recognised . Non-current assets (including those that are
Disposals part of a disposal group) are not depreciated or amortised while An item of property, plant and equipment is de-recognised upon they are classified as held for sale . disposal or when no future economic benefits are expected to arise (f) Intangible Assets from the continued use of the asset . Any gain or loss arising on Computer software de-recognition of the asset (calculated as the difference between Computer software is separately acquired and capitalised at its the net disposal proceeds and the carrying amount of the item) cost and costs to bring to use as at the date of acquisition . After is included in the Surplus/(Deficit) in the year the item is de- initial recognition, separately acquired intangible assets are recognised . carried at cost less accumulated amortisation and accumulated impairment losses .
64 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
Course development costs Research costs Course development costs relate to development of software for Research costs are recognised as an expense in the Surplus/ educational courses and are capitalised when it is probable that (deficit) for the year in the year in which they are incurred . future economic benefit arising from use of the intangible asset (g) Receivables will flow to NorthTec . Following initial recognition of the course Student Fees and other receivables are recognised and carried at development expenditure, the cost model is applied and the asset Fair Value less an allowance for uncollectible amounts . is carried at cost less accumulated amortisation and accumulated impairment losses . An estimate for doubtful debts is made when collection of the full amount is no longer probable . Bad debts are written off when Amortisation begins when the asset is available for use and ceases identified . at the date that the asset is derecognised . The amortisation charge for each period is recognised in the surplus or deficit . Capitalised Any movement in the doubtful debt provision is recognised in intellectual property development costs are still work in progress . the Surplus/(deficit) for the year and when student fees or other The useful life of completed projects will be established at project receivables are written off, they are written off to the provision . completion . Intangible assets that have an indefinite useful life, or (h) Inventories are not yet available for use, are not subject to amortisation and Inventories are valued at the lower of cost and net realisable are tested annually for impairment . value . The cost of inventory is based on a first-in, first-out basis
A summary of the policies applied to NorthTec’s intangible assets and included expenditure incurred in acquiring the inventories is: and in bringing them to their existing location and condition . Net realisable value is the estimated selling price in the ordinary Course Development Costs course of activities less the estimated costs necessary to make the Useful life Finite – 3 years sale . The amount of any write-down for the loss of service potential Method used Straight line method or from cost to net realisable value is recognised in the surplus or from the course deficit in the year of the write-down . Computer Software (i) Other Financial Assets Useful life Finite – 3 years NorthTec classifies its financial assets into the following four Method used Straight line categories: The amortisation period and amortisation method for each class of • financial assets at fair value through profit intangible asset having a finite life is reviewed at each financial and loss, year end . If the expected useful life or expected pattern of • loans and receivables, consumption is different from the previous assessment, changes • held-to-maturity securities are made accordingly . • available-for-sale securities . The carrying value of each class of intangible asset is reviewed for indicators of impairment annually . Intangible assets are tested for The classification depends on the purpose for which the impairment when an indicator of impairment exists . investments were acquired . Management determines the classification at initial recognition and re-evaluates this Gains or losses arising from derecognition of an intangible asset designation at every reporting date . are measured as the difference between the disposal proceeds and the carrying amount of the asset and recognised in the income Financial assets are initially recognised at fair value plus statement when the asset is derecognised . transaction costs unless they are carried at fair value through profit or loss in which case the transaction costs are recognised in the Surplus/(deficit) for the year .
Töu iwi, töu wänanga • Your people, your place 65 FINANCIAL STATEMENTS AND NOTES
Purchases and sales of investments are recognised on trade date, After initial recognition they are measured at amortised cost using the date on which NorthTec commits to purchase or sell an asset . the effective interest method . Gains and losses when the asset is They are derecognised when the rights to receive cashflows from impaired or derecognised are recognised in the Surplus/(deficit) for the financial assets have expired or have been transferred and the year . NorthTec holds no assets in this category at balance date . NorthTec has transferred substantially all the risks and rewards of Available-for-sale securities ownership . These are principally equity securities that are designated as The fair value of financial instruments that are not traded in available for sale or are not classified as any of the three preceding an active market is determined by using appropriate valuation categories . Unlisted shares held are valued at nil at year end . After techniques principally estimated discounted cash flow techniques . initial recognition these are measured at their fair value .
The categories of financial assets are treated as follows: Gains and losses are recognised directly in other Comprehensive Income except for impairment losses which are recognised in Financial assets at fair value through profit and loss the Surplus/(deficit) for the year . In the event of impairment any Financial assets within this category are classified as held for cumulative losses previously recognised in other Comprehensive trading if they are acquired for the purpose of selling within the Income will be removed from other Comprehensive Income to the near term with the intention of making a profit . Derivatives are Surplus/(deficit) for the year . also classified as held for trading unless they are designated an effective hedging instrument . Gains and losses at fair value are On derecognition the cumulative gain or loss previously recognised recognised in profit and loss and the related assets are classified in equity is recognised in the Surplus/(deficit) for the year . as current assets in the Statement of Financial Position . NorthTec Impairment of financial assets has no financial assets in this category at balance date . At each balance sheet date NorthTec assesses whether there is Loans and receivables objective evidence that a financial asset or group of financial Loans and receivables including loan notes and loans to key assets is impaired . Any impairment losses are recognised in the personnel are non derivative financial assets with fixed or Surplus/(deficit) for the year . determinable payments that are not quoted in an active market . Impairment of a loan or a receivable is established when there is Such assets are carried at amortised cost using the effective objective evidence that NorthTec will not be able to collect amounts interest method . Gains and losses are recognised in the Surplus/ due according to the original terms of the loan or receivable . (deficit) for the year when the loans and receivables are impaired . Significant financial difficulties of the debtor, probability that the These are included in the Statement of Financial Position as debtor will enter into bankruptcy or receivership, or liquidation, and current assets except for those with a maturity date greater than default in payments are considered indicators that the asset is twelve months after balance date, which are then classified as impaired . The amount of the impairment is the difference between non-current . the assets carrying amount and the present value of estimated NorthTec has no loans at balance date . Receivables are classified future cash flows discounted using the original effective interest as Trade and Other Receivables in the Statement of Financial rate . For debtors and other receivables, the carrying amount of the Position . asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the surplus or deficit . When the Investments in short term bank deposits are classified as cash and receivable is uncollectable, it is written off against the allowance cash equivalents in the Statement of Financial Position . account . Overdue receivables that have been renegotiated are Held to maturity securities reclassified as current (that is, not past due) . For other financial These are assets with fixed or determinable payments and fixed assets, impairment losses are recognised directly against the maturities that NorthTec intends to hold to maturity . instruments carrying amounts .
66 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
(j) Investments (o) Employee Entitlements All investments are initially recognised at cost, being the fair value Short-term benefits of the consideration given and, in the case of an investment not Employee benefits that NorthTec expects to be settled within 12 at fair value through profit or loss, including acquisition charges months of balance date are measured at nominal values based on associated with the investment . accrued entitlements at current rates of pay .
(k) Cash and Cash Equivalents These include salaries and wages accrued up to balance date, Cash and short-term deposits in the Statement of Financial annual leave earned to, but not yet taken at balance date, retiring Position comprise cash at bank and in hand and short-term and long service leave entitlements expected to be settled within deposits with an original maturity of four months or less . 12 months . Currently there is no provision for sick leave .
For the purpose of the Cash Flow Statement, cash and cash NorthTec recognises sick leave to the extent that absences in equivalents consist of cash and cash equivalents as defined above, the coming year are expected to be greater than the sick leave net of outstanding bank overdrafts . entitlements earned in the coming year . The amount is calculated on the unused sick leave entitlement that can be carried forward at (l) Borrowing Costs balance date, to the extent that NorthTec estimates it will be used Borrowing costs are recognised as an expense in the period in to cover future absences . which they are incurred . NorthTec recognises a liability and an expense for bonuses where (m) Interest-bearing Loans and Borrowings contractually obliged or where there is a constructive obligation . All loans and borrowings are initially recognised at fair value, net of transaction costs . Long service leave and retirement leave Entitlements that are vested within 12 months such as long service After initial recognition, interest-bearing loans and borrowings leave have been calculated based on: are measured at amortised cost using the effective interest rate method . Amortised cost is calculated by taking into account any • likely entitlements accruing to staff based on years of service transaction costs and any discount or premium on settlement . and the probability that staff will reach the point of entitlement and contractual entitlements information . (n) Provisions Provisions are recognised for future expenditure of uncertain Superannuation schemes amount or timing when there is a present obligation . It is probable - Defined contribution schemes that an outflow of resources embodying economic benefit will be Obligations for contributions to defined contribution schemes and required to settle the obligation and a reliable estimate can be Kiwisaver are recognised as an expense in the Surplus/(deficit) for made of the amount of the obligation . the year . If the effect of the time value of money is material, provisions are - Defined benefit schemes determined by discounting the expected future cash flows at a pre- NorthTec has two employees who are members of the Defined tax rate that reflects current market assessments of the time value Benefit Plan Contributors Scheme managed by the National of money and, where appropriate, the risks specific to the liability . Provident Fund . Actuarial valuations of the fund are not available Provisions are reviewed at each balance sheet date and adjusted to determine the extent to which the surplus/deficit will affect to reflect the current best estimate . Where it is no longer probable future contributions by individual employees and the Scheme has that an outflow of resources embodying economic benefit will be been accounted for as a defined contribution scheme . required to settle the obligation, the provision shall be reversed .
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost .
Töu iwi, töu wänanga • Your people, your place 67 FINANCIAL STATEMENTS AND NOTES
(p) Leases Commitments and contingencies are disclosed net of the amount Finance leases, which transfer to the polytechnic substantially all of GST recoverable from, or payable to, the taxation authority . the risks and benefits incidental to ownership of the leased item, (r) Changes in Accounting Estimates are capitalised at the inception of the lease at the fair value of the There have been no changes in accounting estimates during the leased property or, if lower, at the present value of the minimum period . lease payments . (s) Risk Exposures and Responses Lease payments are apportioned between the finance charges and NorthTec’s principal financial instruments comprise receivables, reduction of the lease liability so as to achieve a constant rate of payables, Government loans, cash and short term deposits . interest on the remaining balance of the liability . NorthTec manages its exposure to key financial risks including Finance charges are included in the Surplus/(deficit) for the year as interest rate risk, credit risk and liquidity risk in accordance with finance costs . its financial risk management policy .
Capitalised leased assets are depreciated over the shorter of the NorthTec uses different methods to measure and manage different estimated useful life of the asset and the lease term . types of risk it is exposed to . These include:
Leases where the lessor retains substantially all the risks and • Monitoring levels of exposure to interest rate risk using benefits of ownership of the asset are classified as operating assessments of market forecasts for interest rate risk . leases . Initial direct costs incurred in negotiating an operating • NorthTec’s exposure to credit risk arises from potential default lease are added to the carrying amount of the leased asset and of the counterparty . NorthTec’s portfolio of customers are recognised over the lease term on the same basis as the lease recognised creditworthy third parties . income . Credit verification is undertaken for new customers . In addition Operating lease payments are recognised as an expense in the receivable balances are monitored on an ongoing basis and Surplus/(deficit) for the year on a straight-line basis over the lease customers regularly contacted where slow in paying . term . • Short term deposits are managed by a policy of dealing only (q) Goods and Services Tax (GST) with major banks and by spreading the deposits across several Revenues, expenses and assets are recognised net of the amount banks . of GST except: • There is limited exposure to foreign exchange risk . All fees • Where GST incurred on a purchase of goods and services is not are denominated in New Zealand dollars and collected before recoverable from the taxation authority, in which case the GST is enrolment . Forward cover is used for major purchases . recognised as part of the cost of acquisition of the asset or as (t) Capital Management part of the expense item as applicable; and NorthTec manages its capital in consideration of the capital • Receivables and payables are stated with the amount of GST requirements of its Investment Plan as approved by the Tertiary included . Education Commission . Where a commitment to extend NorthTec’s capability is agreed upon TEC provides additional capital which is The net amount of GST recoverable from, or payable to, the taxation focussed on achieving that capability . authority is included as part of receivables or payables in the Statement of Financial Position . (u) Creditors and Trade Payables Creditors and other payables are initially measured at fair value The net GST paid to, or received from the IRD, including the GST and subsequently measured at amortised cost using the effective relating to investing and financing activities, is classified as net interest method . operating cash flow in the Statement of Cash Flows .
68 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
(v) Budget Figures Restricted reserves The budget figures are those approved by the Council at the Restricted reserves are a component of equity generally beginning of the year . The budget figures have been prepared representing a particular use to which various parts of equity have in accordance with NZ GAAP, using accounting policies that are been assigned . Reserves may be legally restricted or created by consistent with those adopted by NorthTec for the preparation of NorthTec . Transfers from these reserves may be made only for the Financial Statements . certain specified purposes or when certain specified conditions are met . (w) Income Tax NorthTec is exempt from income tax . Accordingly, no provision has Asset revaluation reserves been made for income tax . This reserve relates to the revaluation of property, plant, and equipment to fair value . (x) Equity Equity is measured as the difference between total assets and Suspensory Crown Loan reserve total liabilities . Equity is disaggregated and classified into a Represents the Crown funding which carries entitlement to number of components . The components of equity are: conversion upon meeting stipulated measures under the Crown Loan agreement . • General funds;
• Asset revaluation reserves;
• Suspensory Crown Loan; and
• Restricted reserves .
Töu iwi, töu wänanga • Your people, your place 69 FINANCIAL STATEMENTS AND NOTES
2. SUMMARY COST OF SERVICES
Actual Budget Actual 2012 2012 2011 $000 $000 $000 Income Creative and Humanities 10,647 11,338 9,823 Commerce 5,149 5,648 4,891 Health and Environment 11,993 11,871 11,930 Trade and Technologies 7,543 6,967 7,529 Total income from services 35,332 35,824 34,173 Other income 1,754 1,796 1,828 Total income 37,086 37,620 36,001
Expenditure Creative and Humanities 5,725 5,883 5,059 Commerce 3,619 3,503 3,455 Health and Environment 6,122 5,834 5,752 Trade and Technologies 4,656 4,238 4,876 Total cost of services 20,122 19,458 19,142 Finance costs - - - Other costs 15,674 16,931 15,779 Total expenditure 35,796 36,389 34,921
70 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
3. INCOME
2012 2011 $000 $000 i) Government grants Student achievement component (SAC) funding 25,598 25,575 Tertiary Education Organisational Capability (TEOC) funding - - Performance-based research funding 57 55 Quality Re-investment programme funding - - Adult Community Education (ACE) 360 280 Quest Rapuara (STAR) 171 162 Ministry of Youth Affairs (Conservation Corps) - - Industry Training Organisations (ITO) 700 443 Other grants 614 858 Total government grants 27,500 27,373
There are no unfulfilled conditions nor other contingencies attached to the funding or grants (2011 nil) .
ii) Tuition fees Fees from domestic students 6,494 6,481 Fees from international students 1,493 852 Total tuition fees 7,987 7,333 iii) Other income/(loss) Gain/(loss) on sale of property, plant, and equipment 1 3 Cafe income 298 303 Other income 781 519 Total other income 1,080 824
4. PERSONNEL COSTS
Academic salaries 12,218 11,153 General salaries and wages 8,874 8,460 Redundancy 115 180 Defined contribution plan employer contributions 283 239 Increase/(decrease) in employee entitlements 243 176 Total personnel costs 21,733 20,209
Employer contributions to defined contribution plans include contributions to Kiwisaver and the Government Superannuation Fund .
Töu iwi, töu wänanga • Your people, your place 71 FINANCIAL STATEMENTS AND NOTES
5. FINANCE COSTS
2012 2011 $000 $000
Interest expense: - finance charge on finance leases 1 4 Total finance costs 1 4
6. other eXpenses
Audit Fees: - fees to principal auditor current year provision 106 100 - fees to principal auditor prior year under provision 10 11 Operating lease payments 1,008 1,123 Repairs and maintenance 671 787 Other occupancy costs 1,095 1,029 Information technology 530 428 Advertising and public relations 619 435 Insurance premiums 187 105 Consultants and legal fees 247 578 Office costs 1,263 1,089 Travel and accommodation 299 293 Other course related costs 4,396 5,344 Council remuneration 117 125 Impairment of receivables (note 8) - (16) Other operating expenses 992 864 Total other expenses 11,539 12,296
72 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
7. CASH AND CASH EQUIVALENTS
2012 2011 $000 $000
Cash at bank and on hand 44 45 Call deposits 565 150 Term deposits with maturities less than 4 months 4,501 8,993 Total cash and cash equivalents 5,110 9,188
The carrying value of cash at bank, call deposits and term deposits with maturities less than four months approximate their fair value . The total value of cash and cash equivalents that can only be used for a specified purpose as outlined in the relevant Student Hardship Fund is $70,236 (2011: $68,836) .
8. debtors and other receivables 2012 2011 $000 $000 Student receivables Student fee receivables 384 394 Less: provision for impairment (240) (240) Net student fee receivables 144 154
Other receivables Ministry of Education - - Other debtors and receivables 294 334 Total debtors and other receivables 438 488
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 . Other receivables are non-interest bearing and are generally settled on 30 day terms, therefore the carrying value of other receivables approximates their fair value .
Töu iwi, töu wänanga • Your people, your place 73 FINANCIAL STATEMENTS AND NOTES
8. debtors and other receivables (continued)
2012 2011 Gross Impairment Net Gross Impairment Net $000 $000 $000 $000 $000 $000
Not past due ------Past due 1–30 days ------Past due 31–60 days 12 - 12 - - - Past due 61–90 days 4 - 4 10 - 10 Past due over 90 days 368 240 128 384 240 144 Total 384 240 144 394 240 154
All receivables greater than 30 days in age are considered to be past due . There are no provisions for impairment on other receivables and no amounts are overdue . Due to the larger 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 .
2012 2011 $000 $000 Movements in the provision for impairment of student fee receivables are as follows: At 1 January 240 256 Additional provisions made during the year - - Provisions reversed during the year - (16) Receivables written-off during the period - - At 31 December 240 240
9. OTHER FINANCIAL ASSETS 2012 2011 $000 $000 Current portion Term deposits with maturities of 5–12 months 4,562 - Total current portion - - Total other financial assets 4,562 -
Term deposits The fair value of current term deposits is deemed to be the carrying value .
74 Töu iwi, töu wänanga • Your people, your place 10. INVENTORIES 2012 2011 $000 $000 Inventories held for distribution Material and consumables 25 27 Commercial Inventories Student Café 4 6 Total inventories 29 33
No inventories are pledged as securities for liabilities (2011: $0) Inventories held for distribution The carrying amount of inventories held for distribution that are measured at current replacement cost amounted to $25,409 (2011: $26,613) . There have been no write-downs of inventories held for distribution because of a loss in service potential (2011: $0) and there have been no reversals of write-downs (2011: $0) Commerical Inventories There have been no write-down of commercial inventories to net realisable value (2011: $0) and no reversals of write-downs (2011: $0)
Töu iwi, töu wänanga • Your people, your place 75 - - 93 10 906 315 620 622 345 191 $000 6,866 3,423 3,728 1,750 14,891 5,067 4,853 28,908 38,828 31/12/2012 Carrying Amount - - - 27 840 405 723 723 722 247 157 577 $000 1,614 1,636 1,168 1,663 Charges 2,545 7,958 10,503 31/12/2012 Depreciation Accumulated & Impairment 27 10 622 438 250 $000 7,706 3,828 4,451 2,520 1,636 1,483 2,283 2,473 1,067 15,468 5,067 31,453 12,811 49,331 at 31/12/2012 Cost/Revaluation Cost/Revaluation ------0 0 0 $000 (Deficit) Surplus/ Revaluation ------0 0 0 $000 Charge Impairment Current year ------0 62 Cost 62 (62) $000 (62) Current year Adjustment to - - - - 88 45 42 48 300 404 210 197 372 114 263 166 $000 1,112 2,249 1,137 Current year Depreciation ------3 4 1 3 48 49 Sale 48 59 $000 107 Assets for to Current Disposals/ Transferred Current year ------5 8 8 75 93 92 80 595 123 225 $000 1,552 2,696 2,776 Additions Current year ------3 27 28 851 123 210 $000 (60) Transfer Progress (1,302) 1,001 (1,060) from Work in - 88 15 10 732 270 615 356 133 372 $000 7,073 3,605 3,925 1,761 Amount Carrying 14,446 5,067 4,352 29,049 38,468 01/01/2012 - - - 27 276 435 196 526 460 556 205 109 $000 1,242 1,548 1,124 1,549 Charges 1,433 6,821 8,254 01/01/2012 Depreciation Accumulated and Impairment
27 10 2012 Cost/ 912 221 242 372 $000 – 7,509 3,801 4,451 1,974 1,636 1,393 2,164 2,222 14,722 5,067 30,482 11,173 46,722 01/01/2012 Revaluation Cost Cost Cost Cost Cost Cost Cost Cost Cost Cost Cost $000 Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Movement for each class of PP E N orth T ec are as follows: Land Buildings: Services Computers (Leased) Library Collection Art Collection Building Improvements (Leased) T otal B uildings Computers Electronic Equipment Work in Progress Building: Structure T otal Plant and E quipment T otals Electronic Equipment (Leased) Office Equipment Plant and Equipment Motor Vehicles Furniture and Fittings Buildings: Fit Out 11. P R OPE T Y , L ANT AND EQU I PMENT
76 Töu iwi, töu wänanga • Your people, your place - 88 15 10 270 732 615 356 372 133 $000 7,073 3,605 3,925 1,761 4,352 5,067 29,049 38,468 14,446 31/12/2011 Carrying Amount - - - 27 435 196 526 460 556 205 109 276 $000 1,548 1,124 1,242 1,549 1,433 6,821 8,254 Charges 31/12/2011 Depreciation Accumulated & Impairment 27 10 912 221 372 242 $000 1,636 1,393 5,067 7,509 1,974 3,801 4,451 2,164 2,222 14,722 30,482 11,173 46,722 at 31/12/2011 Cost/Revaluation Cost/Revaluation ------$000 (Deficit) Surplus/ Revaluation ------(37) (36) (77) (30) $000 (180) (180) Current year Depreciation Adjustment to ------Cost $000 Current year Adjustment to - - - - 71 17 46 276 389 150 196 197 195 334 240 149 $000 1,058 1,203 2,262 Current year Depreciation ------1 4 3 24 28 36 114 138 174 $000 Disposals Current year ------9 4 46 82 184 160 581 142 230 $000 2,299 3,277 3,507 Additions Current year ------7 0 42 33 29 457 329 233 $000 1,478 2,306 Transfer Progress (2,608) (2,306) from Work in - 33 10 201 216 678 380 681 236 175 $000 6,984 5,067 3,472 4,080 1,829 4,440 Amount Carrying 13,174 27,710 37,216 01/01/2011 - - - - - 46 63 27 329 985 221 375 437 188 $000 1,435 1,088 1,354 5,798 6,173 Charges 01/01/2011 Depreciation Accumulated and Impairment
27 10 2011 Cost/ 673 221 238 681 $000 – 5,067 7,030 3,472 4,409 1,365 1,636 1,304 2,032 2,050 13,174 28,085 10,238 43,389 01/01/2011 Revaluation Cost Cost Cost Cost Cost Cost Cost Cost Cost Cost Cost $000 Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Movement for each class of PP E N orth T ec are as follows: Land Library Collection Computers (Leased) Electronic Equipment Buildings: Services Art Collection Building Improvements (Leased) Total Buildings Computers Work in Progress Electronic Equipment (Leased) Office Equipment Total Plant and Equipment Totals Plant and Equipment Motor Vehicles Furniture and Fittings Buildings: Fit Out Building: Structure 11. P R OPE T Y , L ANT AND EQU I PMENT
Töu iwi, töu wänanga • Your people, your place 77 FINANCIAL STATEMENTS AND NOTES
11. property, plant and equipment (continued)
Land Buildings 2012 2011 2012 2011 $000 $000 $000 $000
NorthTec owned 2,571 2,571 13,423 13,336 Crown owned 2,496 2,496 11,757 11,788 Total 5,067 5,067 25,180 25,124
Valuation Land Land is valued at fair value using market based evidence based on Non-specialised buildings (e .g . residential buildings) are valued at fair its highest and best use with reference to comparable land values . value using market based evidence . Market rents and capitalisation rates Adjustments have been made to the “unencumbered” land value for were applied to reflect market value . campus land where there is a designation against the land or the use The most recent valuation of buildings was performed by an independent of the land is restricted because of reserve or endowment status . These valuer, Telfer Young (Northland) limited, and the valuation of $24,621,549 adjustments are intended to reflect the negative impact on the value of the is effective as at 31 December 2010 . land where an owner is unable to use the land more intensely . Total fair value of property, plant and equipment valued by Restrictions on NorthTec’s ability to sell land would normally not impair the each valuer . value of the land because NorthTec has operational use of the land for the Total fair value of plant and equipment valued by an independent valuer foreseeable future and will substantially receive the full benefits of outright SPM Consultants, totalled $1,965,677 . The effective date of this valuation ownership . was 1 January 2010 . Plant and equipment is valued using market value or The most recent valuation of land was performed by a registered appropriate indices . independent valuer, Telfer Young (Northland) limited, and the valuation of Restrictions on title $3,780,000 is effective as at 31 December 2010 . Under the Education Act 1989, NorthTec is required to obtain consent from the Ministry of Education to dispose or sell off property where the value of Buildings the property exceeds an amount determined by the Minister . Specialised buildings (e .g . campuses) are valued at fair value using depreciated replacement cost because no reliable market data is available Work in progress for buildings designed for education delivery purposes . The total amount of property, plant and equipment in the course of Depreciated replacement cost is determined using a number of significant construction is $622,000 (2011: $372,000) . assumptions . Significant assumptions include: The majority of work in progress relates to refurbishment, horticultural * The replacement asset is based on the reproduction cost of the development, Dyer Street, and IT System implementation . specific assets with adjustments where appropriate for obsolescence Leasing due to over design or surplus capacity . The net carrying amount of computers and electronic equipment (included * The replacement cost is derived from recent construction contracts of within computer hardware) held under finance leases is nil (2011: similar assets and Property Institute of New Zealand cost information . $201,000) . * Estimating the remaining useful life of assets . Non-current assets held for sale * Straight-line depreciation has been applied in determining the A student built house held for sale has been transferred from building depreciated replacement cost value of the asset . under Property, plant and equipment to current assets held for sale . See Statement of Financial position .
78 Töu iwi, töu wänanga • Your people, your place 14 31 89 194 389 137 346 509 $000 $000 Amount Amount Carrying Carrying 31/12/2012 31/12/2011 120 103 390 195 918 855 $000 $000 1,428 1,153 Charges Charges 31/12/2012 31/12/2011 Amortisation Amortisation Accumulated Accumulated & Impairment & Impairment 134 134 584 584 944 Cost/ Cost/ $000 $000 1,056 1,774 1,662 Revaluation Revaluation Revaluation at 31/12/2012 at 31/12/2011 at ------0 $000 $000 Surplus Surplus (Deficit) (Deficit) Revaluation Revaluation ------0 $000 $000 Current year Current year Amortisation Amortisation Adjustment to Adjustment to ------0 $000 $000 to Cost to Cost Adjustment Adjustment Current year Current year 16 15 63 195 195 119 275 329 $000 $000 Current year Current year Amortisation Amortisation - - - - - 0 17 17 year year $000 $000 Current Current Disposals Disposals - - - 7 52 54 52 61 year year $000 $000 Current Current Additions Additions ------60 60 from from $000 $000 Work in Work in Transfer Transfer Progress Progress 31 39 89 389 584 171 509 794 $000 $000 Amount Amount Carrying Carrying 01/01/2012 01/01/2011 - 88 103 195 855 736 824 $000 $000 1,153 Charges Charges 01/01/2012 01/01/2011 Amortisation Amortisation Accumulated Accumulated and Impairment and Impairment
134 127 584 584 944 907 Cost/ Cost/ $000 $000 1,662 1,618 01/01/2012 01/01/2011 Revaluation Revaluation Cost Cost Cost Cost Cost Cost $000 $000 Fair Value Fair Value T otal I ntangible A ssets T otal I ntangible A ssets Teaching Licences Teaching Licences MITO Development MITO Development Intangible Assets Computer Software Intangible Assets Computer Software Movement for I ntangible assets N orth T ec are as follows: Movement for I ntangible assets N orth T ec are as follows: 12. I NTANG B L E ASSETS – 2012 12. I NTANG B L E ASSETS – 2011
There are no restrictions over the title of Polytechnic's intangible assets, nor there any assets pledged as security for liabilities .
Töu iwi, töu wänanga • Your people, your place 79 FINANCIAL STATEMENTS AND NOTES
13. creditors and other payables
2012 2011 $000 $000
Creditors 1,140 1,263 Accrued expenses 594 943 GST payable 174 143 Total creditors and other payables 1,908 2,350
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of creditors and other payables approximates their fair value .
14. REVENUE RECEIVED IN ADVANCE 2012 2011 $000 $000
Tuition fees 192 540 Other revenue received in advance 170 152 Total revenue received in advance 362 692
15. borrowings 2012 2011 $000 $000 Current portion Finance Leases - 99 Total current portion - 99
Non-current portion Finance leases - - Total non-current portion - - Total borrowings 0 99
80 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
15. borrowings (continued)
Analysis of finance leases 2012 2011 $000 $000 Total minimum lease payments are payable Not later than one year - 99 Later than one year and not later than five years - - Total minimum lease payments - 99 Future finance charges - - Present value of minimum lease payments - 99
Present value of minimum lease payments payable
Not later than one year - 99 Later than one year and not later than five years - - Later than five years - - Total present value of minimum lease payments - 99
Description of leasing arrangements Finance leases that had been entered into for computer and electronic equipment for teaching, research and administrative purposes are at the end of the lease term . The option to purchase was exercised . NorthTec is not permitted to pledge leased assets as security nor can it sublease leased equipment without the permission of the lessor .
Security Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default .
Fair Value The Fair Value of finance leases is materially the same as the rates shown in the note as the interest rate paid on the leases is approximately the same as the market rate .
Töu iwi, töu wänanga • Your people, your place 81 FINANCIAL STATEMENTS AND NOTES
16. employee entitlements
2012 2011 $000 $000 Current portion Accrued pay 199 - Annual leave 933 881 Long service leave - 25 Total current portion 1,132 906 Non-current portion Long service leave 18 - Total employee entitlements 1,149 906
17. equity 2012 2011 $000 $000 General funds Balance at 1 January 25,084 22,127 Prior year surplus Student Hardship Trust - Surplus/(deficit) for the year 1,290 1,080 Capital contributions from the Crown - Converted suspensory loans to general equity 1,877 1,877 Transfers to restricted reserves - Transfers from restricted reserves - Balance at 31 December 28,251 25,084
Suspensory Crown loan Balance at 1 January 3,747 5,624 Transfer to Suspensory Crown Loan Equity - - Converted to General Equity (1,877) (1,877) Balance at 31 December (refer Note 19) 1,870 3,747
Asset revaluation reserves Balance at 1 January 15,948 15,948 Land net revaluation gains - - Buildings net revaluation gains - - Infrastructure net revaluation gains - - Balance at 31 December 15,948 15,948
Restricted reserves Balance at 1 January 70 69 Application of trusts and bequests - - Balance at 31 December 70 69
Total equity 46,138 44,848
82 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
18. capital commitments and operating leases
2012 2011 $000 $000 Capital commitments Property, plant and equipment 62 - Intangible assets - - Total capital commitments 62 -
Capital commitments represent capital expenditure contracted for at balance date but not yet incurred .
Operating leases as lessee NorthTec leases property, plant and equipment in the normal course of its business . The majority of these leases have a non-cancellable term of 36 months . The long term lease on the Future Trades Centre building runs for 10 years and is $530,000 per year with 6 years left on the lease . Renewal options are available after the initial 10 years with a further 3 periods of 5 years each . NorthTec is planning to implement these options when they become available .
2012 2011 $000 $000
Not later than one year 859 929 Later than one year and not later than five years 2,662 2,738 Later than five years 331 839 Total non-cancellable operating leases 3,852 4,506
There are no restrictions placed on NorthTec by any of the leasing arrangements .
Töu iwi, töu wänanga • Your people, your place 83 FINANCIAL STATEMENTS AND NOTES
19. CONTINGENCIES
2012 2011 $000 $000 Contingent liabilities Suspensory loans 1,870 3,747 Legal Claim - 23 Personal grievances - - Total contingent liabilities 1,870 3,770
Suspensory Loans with equity conversion features NorthTec has a contingent liability for suspensory loans received from the Crown . The amount of loans that are still subject to achieving required objectives is $1,870,000 (2011: $3,747,000) and will convert to equity when those objectives are achieved . The suspensory loans were recognised directly in equity on receipt to reflect the substance of the transactions and it is more than probable all the funding deliverables will be achieved . If NorthTec does not achieve the specified objectives in the loan agreement, it may be required to repay all or part of the loan up to a maximum of $1 .9 million in June 2013 . NorthTec continues to be committed to meeting the deliverables of the suspensory loans and considers it unlikely any part of the loans will be required to be repaid .
Claims The contingent liability recognised in 2011 as a legal claim is no longer expected to eventuate .
Personal grievances No personal grievance claims are outstanding at year end .
Dyer Street leasehold improvements NorthTec has an additional contingent liability for the cost of removal of the lease improvements to the Dyer Street building, less the work performed in relation to the $350,000 payment holiday . This is because the landlord can request that fixtures and fittings be removed at the end of the lease term, but the $350,000 improvements become the property of the lessor .
Unquantifiable contingencies The employer is a participating employer in the National Provident Fund Scheme (“the Scheme”) which is a multi-employer defined benefit scheme . If the other participating employers cease to participate in the Scheme, the employer could be responsible for the entire deficit of the Scheme . Similarly, if a number of employers ceased to participate in the Scheme, the employer could be responsible for an increased share of the deficit .
Contingent assets There were no contingent assets at year end .
84 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
20. related party transactions
Significant transactions with government-related entities The government influences the roles of NorthTec as well as being a major source of revenue . NorthTec has received funding and grants from the Tertiary Education Commission totalling $26 .764 million (2011: $26 .695 million) to provide education and research services for the year ended 31 December 2012 . NorthTec also leases, at a nil rental amount, land and buildings legally owned by the Crown . Further information on the accounting for Crown-owned land and buildings is disclosed in Note 1 under the heading “critical judgements in applying accounting policies” .
Collectively, but not individually, significant, transactions with government-related entities In conducting its activities, NorthTec is required to pay various taxes and levies (such as GST, PAYE, and ACC levies) to the Crown and entities related to the Crown . The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers . NorthTec is exempt from paying income tax and FBT .
NorthTec purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown . The purchase and provision of goods and services to government-related entities for the year ended 31 December 2012 are small when compared to NorthTec’s total expenditure and revenue and have all been conducted on an arms’ length basis . The purchase of goods and services included the purchase of electricity from Meridian, 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 . NorthTec enters into transactions with government departments, state-owned enterprises, and Crown entities . Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect NorthTec would have adopted if dealing with that entity at arm’s length in the same circumstances have not been disclosed .
There are no subsidiaries, associates or jointly controlled entities which might have a relationship with NorthTec .
Related party transactions 2012 2011 Transactions with key management personnel $000 $000
Key management personnel compensation
Salaries and other short-term employee benefits 1,052 1,281 Post-employment benefits 20 16 Other long-term benefits - - Termination benefits - -
Total key management personnel compensation 1,072 1,297
Key management personnel include Councillors, CE and members of the Senior Management team .
Töu iwi, töu wänanga • Your people, your place 85 FINANCIAL STATEMENTS AND NOTES
20. related party transactions (CONTINUED)
Councillors During the year the following councillors were members of organisations that have entered into transactions with NorthTec as part of its normal operations .
Balance Purchases Sales Balance Receivable made from made to Payable to from Related Related Party Related Party Related Party 2012 Party Actual Actual Actual Actual $000 $000 $000 $000
Clare Davies-Colley Whangarei Boys’ High (Chair BOT) - 16 - - Northland Event Centre Trust 1 - - - Black Dog Steelworks 5 3 - - Tui Technology - 1 - - Northland Regional Council (Tony Davies-Colley Councillor) 3 2 - -
Ken Rivers New Zealand Refining Company(CEO) - 13 - - Northland Event Centre Trust 1 - - -
Sue Cullen Adjunct Professor, Te Wänanga o Aotearoa - 132 - -
Brian Roberts Northland Inc . 1 - - - Northland Regional Council 3 2 - - Erima Henare Open Polytechnic of NZ (Executive Director) 1 - - - Waitangi National Trust (Board Member) 1 - - - Koti Whero Ltd (Director) 72 - - - John Mote Christchurch Polytechnic Institute of Technology 10 4 - - Rapanui Education 23 - - -
Warren Moyes Northpower (Chairperson) - 5 - -
All transactions were made on normal commercial terms and conditions .
Accounts Accounts Purchases Sales Payable Receivable Actual Actual 2011 Actual Actual $000 $000 $000 $000
Erima Henare - Northland District Health Board (Board member to Nov 2011) 120 85 - - Open Polytechnic of NZ (Executive Director) 1 - - - Waitangi National Trust (Board Member) 1 - -
Clare Davies-Colley Whangarei Boys’ High (Chair BOT) 2 19 - 1
Brian Roberts Northland Regional Council 3 - - -
Warren Moyes Northpower (Chairperson) - 2 - -
Ken Rivers New Zealand Refining Company(CEO) - 2 - -
Sue Cullen Adjunct Professor, Te Wänanga o Aotearoa - 67 - 1
All transactions were made on normal commercial terms and conditions .
86 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
20. related party transactions (CONTINUED)
Senior Management During the year the following senior managers were members of organisations that have entered into transactions with NorthTec as part of its normal operations .
Balance Purchases Sales Balance Receivable made from made to Payable to from Related Related Party Related Party Related Party 2012 Party Actual Actual Actual Actual $000 $000 $000 $000 Andy Britton CAUSE Limited (Director) 1 - - - CHART (Cultural, Heritage and Arts Trust) (Trustee to Nov 2012) 7 11 - -
All transactions were made on normal commercial terms and conditions .
Related party transactions: NorthTec has a 25% share ($0 fair value) in Motortrain as at 31 December 2012 . Motortrain being a jointly controlled entity with the Wellington Institute of Technology, Waikato Institute of Technology, NorthTec and Southern Institute of Technology . There have been no transaction in 2012 . NorthTec has an investment in Tertiary Accord of New Zealand (TANZ) . There is no value to the shares and Paul Binney, NorthTec Chief Executive, is on the board of directors . Expenses of $89,700 (2011: $78,000) were paid, with no revenue or Accounts payable, Accounts receivable balances at year end . NorthTec has 1100 shares ($0 fair value) in New Zealand Institutes of Technology (NZITP) . Revenue from NZITP was $8,217 (2011: $3,290), expenses $0 (2011: $43,000), with no Accounts payable or Accounts receivable balances at year end . NorthTec has one share at $2 .00 fair value in A-Plus Society . 2012 expenses of $119,444 (2011: $100,605) paid to Student Management Software (related to A-Plus Society) . No revenue or Accounts payable, Accounts receivable balances at year end . NorthTec is a member and shareholder in Polytechnics International New Zealand Limited (PINZ) . The PINZ shares are nil fair value . NorthTec holds one share ($0 fair value) in Skills for New Zealand . 2012 expenses of $35,558 (2011: $0) were paid to Skills for New Zealand . No revenue or accounts payable, accounts receivable balances at year end . There are close family members of key management personnel employed by NorthTec . The terms and conditions of those arrangements are no more favourable than NorthTec would have adopted if there were no relationship to key management personnel .
21. remuneration 2012 2011 Councillor’s remuneration paid or payable during the year was: $000 $000
Vern Dark (Chairperson) 29 32 Clare Davies-Colley 14 15 Warren Moyes 14 15 John Mote (from January 2012) 13 - Ken Rivers* (resigned December 2012) - - Erima Henare (Deputy Chairperson) 18 18 Sue Cullen 14 17 Brian Roberts 14 14 Gwen Edge (to December 2011) - 15
Total councillors’ remuneration 116 125
No Councillors received compensation or other benefits in relation to cessation (2011:0) . * Councillor Ken Rivers opted to waive any fees . Töu iwi, töu wänanga • Your people, your place 87 FINANCIAL STATEMENTS AND NOTES
22. financial instrument risks
NorthTec has a series of policies to manage the risks associated with financial instruments . It is risk averse and seeks to minimise exposure from its treasury activities . These policies do not allow any transactions that are speculative in nature to be entered into .
Market risk
Cash flow 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 interest rates . Borrowings and investments issued at variable interest rates create exposure to cash flow interest rate risk .
Fair value interest rate risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates . Borrowings and investments issued at fixed rates of interest create exposure to fair value interest rate risk . NorthTec does not actively manage its exposure to fair value interest rate risk .
Credit risk Financial instruments that subject NorthTec to concentrations of credit risk consist of cash, short-term deposits, trade receivables and long-term investments .
NorthTec places its surplus funds with trading banks with an AA rating and other financial institutions approved by NorthTec Council as having the required credit rating, and further minimises its credit exposure by limiting the amounts placed with any one institution at any one time .
NorthTec does not require collateral or other security to support financial instruments with credit risk; whilst it may be subject to credit losses up to the notional principal or contract amounts in the event of non-performance by the counter parties, such losses are not expected to occur .
Student fee debtors would be NorthTec’s largest credit risk . It is our policy to withhold academic results until outstanding fees are paid . Receivable balances are monitored on an ongoing basis with the result that NorthTec’s exposure to bad debts is not significant .
Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates . NorthTec cash at bank and term deposits are all held at AA to A+ New Zealand registered banks . Debtors and other receivables do not have registered credit ratings .
2012 2011 Counterparties with credit ratings $000 $000
Cash at bank and term deposits AA - 9,188 AA- 9,672 - Total cash at bank and term deposits 9,672 9,188
Counterparties without credit ratings Debtors and other receivables Existing counterparty with no defaults in the past 438 488 Existing counterparty with defaults in the past - - Total debtors and other receivables 438 488
88 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
22. financial instrument risks (CONTINUED)
Liquidity risk Management of liquidity risk Liquidity risk is the risk that NorthTec will encounter difficulty raising liquid funds to meet commitments as they fall due . Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions . Flexibility in funding is maintained by keeping committed credit lines available .
NorthTec manages liquidity risk by monitoring forecast and actual cash flow requirements and matching the maturity profiles of financial assets and liabilities .
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 of floating rate debt are based on the floating rate on the instrument at the balance date . The amounts disclosed are the contractual undiscounted cash flows .
Carrying Contractual Less than 6–12 1–2 2–3 More amount cash flows 6 months months years years than 3 years $000 $000 $000 $000 $000 $000 $000 NorthTec 2012 Creditors and other payables 1,734 1,734 1,734 - - - - Accrued pay 199 199 199 - - - - Finance leases ------Total 1,933 1,933 1,933 - - - -
NorthTec 2011 Creditors and other payables 2,207 2,207 2,207 - - - - Accrued pay ------Finance leases 99 99 59 40 - - - Total 2,306 2,306 2,266 40 - - -
Töu iwi, töu wänanga • Your people, your place 89 FINANCIAL STATEMENTS AND NOTES
22. financial instrument risks (CONTINUED)
Contractual maturity analysis of financial assets The table below analyses financial assets into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date .
Carrying Contractual Less than 6–12 1–2 2–3 More amount cash flows 6 months months years years than 3 years $000 $000 $000 $000 $000 $000 $000 NorthTec 2012 Cash and cash equivalents 5,110 5,110 5,110 - - - - Debtors and other receivables 438 438 438 - - - - Term deposits 4,562 4,562 4,562 - - - - Total 10,110 10,110 10,110 - - - -
NorthTec 2011 Cash and cash equivalents 9,188 9,188 9,188 - - - - Debtors and other receivables 488 488 488 - - - - Term deposits ------Total 9,676 9,676 9,676 - - - -
INTEREST RATE RISK Sensitivity analysis 2012 2011 $000 $000 Surplus -50bps Surplus +150bps Surplus -50bps Surplus +150bps Other Other Other Other equity NorthTec equity equity equity Financial assets Cash and cash equivalents (25) 77 - 3 Other financial assets (23) 68
Explanation of interest rate risk sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement . For example a decrease in 50 bps is equivalent to a decrease in interest rates of 0 .5% .
NorthTec holds all financial instruments at cost, therefore there is no fair value hierarchy disclosure included .
90 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
23. financial instrument CATEGORIES
The accounting policies for Financial Instruments have been applied to the line items below: 2012 2011 $000 $000 FINANCIAL ASSETS Loans and Receivables Cash and cash equivalents 5,110 9,188 Debtors and other receivables 438 488 Other financial assets 4,562 - Total credit risk 10,110 9,676
FINANCIAL LIABILITIES Financial liabilities at amortised cost Creditors and other payables 1,734 2,207 Accrued pay 199 - Finance leases - 99 Total credit risk 1,933 2,306
24. PROVISIONS 2012 2011 $000 $000 Current portion Goods received not invoiced - - Services provided not yet invoiced - - Contract claim - - Total current portion - -
Non-current portion Contract claim - - Total non-current portion - - Total provisions - -
Lease make-good provision In respect of leased premises . NorthTec is required at expiry of the lease to make-good any damage caused to the premises . In many cases NorthTec has the option to renew these leases, which impacts on the timing of expected cash outflows to make-good the premises . There are no cash flows associated with any non-current portion of the lease make-good provision . Information about NorthTec’s leasing arrangements is disclosed in Note 18 .
Dyer Street lease hold improvements NorthTec has an additional contingent liability for the cost of removal of the lease improvements to the Dyer Street building, less the work performed in relation to the $350,000 payment holiday . This is because the landlord can request that fixtures and fittings be removed at the end of the lease term, but the $350,000 improvements become the property of the lessor .
Töu iwi, töu wänanga • Your people, your place 91 FINANCIAL STATEMENTS AND NOTES
25. capital management
NorthTec’s capital is its equity, which comprises general funds, and property valuation and fair value through comprehensive income reserves . Equity is represented by net assets .
NorthTec is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings, and borrowing .
NorthTec manages its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community . NorthTec’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings .
The objective of managing NorthTec’s equity is to ensure it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern .
26. explanation of major variances against budget
Explanations for major variations against the budget information at the start of the financial year are as follows:
Statement of comprehensive income Government grants Government grants were $0 .052 million more than budget which reflects an increase in activity in STAR $26,000 and ITO funding $157,000 which was partly reduced by the $45,000 reduction in Modern Apprenticeships .
Tuition fees Tuition fees were $0 .829 million less than budget . The $0 .866 million reduction in domestic student fees due to the students preferring courses with less fees attached to them than was budgeted was partly mitigated by a small increase in international student fees of $0 .03 million .
Personnel costs Personnel costs were just over budget by $134,000 mostly as a result of a change in TEU contract that had not been budgeted .
Other expenses Other expenses were held at $435,000 less than budget . It was recognised earlier in the year that to come in at or near budget the costs would have to be kept down . This was achieved in Corporate support areas such as travel, marketing, photocopying, building maintenance and reduced capital spend reflected in the depreciation expense .
Statement of financial position Cash and cash equivalents The actual Cash and cash equivalents at the end of the year 2012 is recognised as cash and term deposits less than 4 months, while the 2012 budget for cash and cash equivalents includes all term deposits . The cash and cash equivalents and all term deposits for 2012 exceed budgeted cash and cash equivalents by $875,000 reflecting the reduced capital spend and lower expenditure on goods and services .
92 Töu iwi, töu wänanga • Your people, your place FINANCIAL STATEMENTS AND NOTES
26. explanation of major variances against budget (CONTINUED)
Total current liabilities Total current liabilities are $0 .2 million more than budget . This is largely due to employee entitlements with an accrual of $200,000 of payroll which was not budgeted and an increased accrual relating to holiday pay at year end outstanding with 3 additional FTEs at year end greater than budget .
Statement of cash flows Receipts from government grants Receipts from government grants were $0 .384 million lower than budgeted due to timing of receipts and a recovery in relation to Youth Guarantee 2010 of $85,000 .
Receipts from tuition fees Receipts from tuition fees were $0 .695 million lower than budgeted . There were 11,300 students fees budgeted but only 7,690 were recorded in 2012 . While the total EFTS were 112 ahead of the budget the domestic EFTS were just behind budget .
Payments to employees Payments to employees were on budget .
Payments to suppliers Payments to suppliers were below that of budget by $0 .170 million and this is reflected in the reduced expenditure on both operating and capital .
Purchase of property, plant and equipment Purchases relating to investment activities were $1 .208 million less than budget and resulted from a deliberate decision to reduce capital purchasing in the second half year and review for 2013 .
Capital contributions from the Crown There were no capital contributions from the Crown in 2012, as they ceased in 2011 with the end of the QRP program .
Cash and cash equivalents at beginning of the year The actual cash and cash equivalents recognised at the year end are cash and term deposits less than 4 months .
28. LEGISLATIVE COMPLIANCE
There are no Legislative Compliance issues to report .
29. events after the balance date
There are no events after balance date to report .
Töu iwi, töu wänanga • Your people, your place 93
EQUITYEQUITY STATEMENT STATEMENT EQUITY STATEMENT
EQUAL EMPLOYMENT OPPORTUNITIES
NorthTec is committed to Equal Employment Opportunities (EEO) in the workplace . The aims of the EEO plan, against which performance is measured and reported, are as follows:
AIMS
1 . Communicate to all new and 3 . Educate and inform management 5 . Conduct an annual review of existing staff and raise awareness and staff regarding EEO principles, polytechnic facilities and processes of NorthTec’s EEO policy and and particularly those involved in with a view to implementing projects management’s commitment to it . the recruitment process, of their which will enhance a “family friendly” responsibilities regarding NorthTec’s 2 . Monitor and review the recruitment working environment and facilitate EEO policy . process to ensure that all employment opportunities for disabled persons . appointments to academic staff, 4 . Analyse and review job descriptions allied staff and management and person specifications for 6 . Make progress towards NorthTec positions are made on merit and positions as they become vacant to employing an equitable balance of that the process is free from ensure they meet the requirements of staff in respect to gender and race, discrimination based on colour, the EEO policy . based on the principle of merit and race, ethnic or national origins, reflecting the communities it serves . marital or family status, religious or ethical beliefs, involvement in union activities or age (exercised within The targets for this are: legislative restraints) .
2012 2012 2011 2011 ACTUAL TARGET ACTUAL TARGET
All Staff Mäori 48% 40% 48% 40% Female 57% 60% 52% 60%
* The accuracy of these percentages is dependent upon information provided by individual staff members, because notification of affiliation is voluntary . NorthTec recognises that % of Mäori staff cannot be validated . Mäori staffing does not reflect levels of identified Mäori in relation to the levels within the student body .
Compulsory Students services fees 2012 Under Section 227 A of the Education Act 1989 it is a requirement to identify categories of services that compulsory student service fees cover . NorthTec provides health care and related services to the students studying at the Raumanga and Dyer Street campuses for which it charges a compulsory fee .
2012 2011 $000 $000
Income 47 41 Expenditure 50 50
96 Töu iwi, töu wänanga • Your people, your place EQUITY STATEMENT
EQUAL EDUCATIONAL OPPORTUNITIES
NorthTec is committed to providing equal educational opportunities for people in the northern peninsula of New Zealand . The initiatives below are aimed at achieving this:
1.1 Pre-entry Programmes • Northland Polytechnic Certificate in NorthTec offers a range of programmes Painitng (Level 2) from Level 1 through to Level 7 on the • National Certificate in Computing and Framework . Where students do not meet the Business Administration (Level 2) entry criteria for a given programme, the • English as a Foreign Language 1 opportunity to take a pre-entry programme • A range of formally assessed short courses may be available . The intention to facilitate • A range of STAR and Continuing Education REMOVAL OF access to education and clear pathways for courses . UNNECESSARY students is reflected in the variety of such 1.2 Developing Programmes programmes on offer . In addition there is BARRIERS TO THE The Academic Quality Assurance sub- a strategy of expanding the availability of committee of the Academic Board examines ENTRY AND PROGRESS these programmes across the region through all programme documents as part of the the use of an increased number of delivery OF STUDENTS approval process . Consideration is given sites and flexible delivery methodologies . to identifying any potential barriers and Programmes to be offered at Level 2 and staircasing arrangements for students . below are: The inclusion of numeracy and literacy • National Certificate in Building, outcomes in all programmes developed up Construction, and Allied Trade Skills to and including Level 3 is ongoing . The (Level 2) Mäori Academic Committee of the Academic • National Certificate in Horticulture Board considers the Mäori dimension of (Introductory) (Level 2) programmes before approval . • National Certificate in Agriculture (General 1.3 Entry Criteria Skills) (Level 2) The Academic Board, as part of its approval • Northland Polytechnic Certificate in of new programmes, requires information Automotive Engineering to be provided about entry criteria • Northland Polytechnic Certificate in and target group . Analysis of the Computing (Level 2) appropriateness of entry criteria for the • Northland Polytechnic Certificate in established target group is assessed as Elementary Construction part of the approval process . • Northland Polytechnic Certificate in 1.4 Physical Barriers Forestry (Forest Industries) (Level 2) Several ramps and side upstands have • Northland Polytechnic Certificate in been repaired and installed to ensure Foundation Forestry Skills students in wheelchairs and those with • Northland Polytechnic Certificate in visual impairments have appropriate Servicing Automotive Systems access to polytechnic facilities . This also • Northland Polytechnic Certificate in includes a new disability ramp at Sustainable Rural Development (Level 2) Räwene Learning Centre . More paint • Northland Polytechnic Certificate in markings indicating any uneven ground Tourism and Hospitality Skills (Level 2) have been made . • Northland Polytechnic Certificate in Vocational Studies (Level 2)
Töu iwi, töu wänanga • Your people, your place 97 EQUITY STATEMENT
EQUAL EDUCATIONAL OPPORTUNITIES (CONTINUED)
1.5 Toilet Facilities and support NorthTec’s students wherever are available for face-to-face support at All disability toilets have been checked for they are within Northland, with any issue the four main regional learning centres accessibility, and appropriate fixtures have that may impact on their learning or any and Whangarei . A Learning Styles project been fitted . This also includes the building barrier that may impede their success . The carried out informed the learning advisors of a new disability toilet at Räwene concept of the one-stop shop has proven how to better target learning strategies at Learning Centre . There is good access to to better provide comprehensive and more Levels 1 to 4 . Disability support provides toilets on campus . seamless support for students with a physical and human support to all students range of needs or with complex issues . The with sensory, physical, mental, intellectual 1.6 Flexible Delivery ALERT notification service enables staff and learning impairments . To meet industry and community demand to refer at-risk students for immediate for flexibility the NorthTec Learning support from the Student Success team to 1.10 Financial Support Gateway (NLG) has been developed and ensure consistent attendance and progress Limited financial support is made available implemented with the main focus of towards course and programme completion . for students experiencing hardship . This is putting in place a technology infrastructure done to eliminate this barrier to students ensuring better connectivity and access 1.8 Student Counselling Service completing their study . as well as added value to current practice The physical and emotional support needs in teaching and learning . The NLG is a of students are provided centrally at 1.11 Kaitakawaenga and Student technology framework that integrates Raumanga with additional counsellors Advisory Services communication and learning management available at the four regional centres . These services particularly deal with barriers tools like video and web conferencing, Health education is also key to the to success including student finance, learning and content management systems developmental work delivered to students housing and other hardship issues . Mäori to connect learners and facilitate access with particular success in smoking and Pacific Island students are supported to information, processes and learning cessation and diabetes prevention in culturally appropriate ways to work with opportunities . strategies . whanau and community groups for specific support purposes . Both services travel 1.7 Learning Development and 1.9 Learning and Disability throughout the entire Northland region to Learning Advisors Support provide face-to-face support . When the nine services of the Student Key targeted cohorts were students Success team were brought together under with learning developmental needs and one ‘umbrella’ they were designed to reach academic skill needs . Learning Advisors
Dennis Murphy, Tutor “I love tutoring this course because I love being around people who are passionate about film and video .”
TUTOR “Northland has some unique regional looks and the region is full of great stories . We have a rich resource of content and we want to further expand the local competency and capacity to capture that on film and video .”
98 Töu iwi, töu wänanga • Your people, your place EQUITY STATEMENT
EQUAL EDUCATIONAL OPPORTUNITIES (CONTINUED)
2.1 Mäori (Marae live-in) delivery of its Te Reo • Provision of the following Mäori Studies Mäori programmes . This style delivery programmes; follows the Te Raranga programmes and 1 . Te Pökaitahi Ngäpuhi-Nui-Tonu accommodates people who are employed Certificate in Te Reo in day-time jobs . 2 2 . Te Pökairua Ngäpuhi-Nui-Tonu • The annual Hui-Ä-Iwi is ongoing . Diploma in Te Reo INITIATIVES TO 2.2 Groups disadvantaged in terms 3 . Te Pökaitahi Ngäpuhi-Nui-Tonu Te of their ability to attend the Raranga Certificate in Traditional ATTRACT STUDENTS institution FROM GROUPS IN Mäori weaving 4 . Te Pökairua Ngäpuhi-Nui-Tonu Te • Provision of the Northland Polytechnic THE COMMUNITY Raranga Diploma in Traditional Mäori Certificate in Foundation Studies to weaving encourage second chance learners who 5 . Te Pökaitahi Ngäpuhi-Nui-Tonu Ngä do not meet the entry requirements for Mahi Tü Taua Certificate in Ancient higher level programmes Mäori weaponry • Introduction of the new Northland 6 . Te Pökairua Ngäpuhi-Nui-Tonu Ngä Polytechnic Certificate in Vocational Mahi Tü Taua Diploma in Ancient Studies to encourage 16 and 17 year Mäori weaponry olds who had not succeeded in school 7 . Certificate of Applied Arts in Mäori Art to develop skills to enter further tertiary and Design (Level 4) education 8 . Certificate of Whakairo Traditional • Teaching delivery at different sites to Mäori wood-carving (Level 3) meet the needs of students • Work with Mäori organisations and • Further development of flexible learning Marae communities in Te Tai Tokerau is packages, including on-line learning ongoing . In response to needs identified • Fostering university courses in the region by iwi, Marae based ACE programmes • Development of marae-based and were delivered to the following tribal outreach programmes communities; Ngäti Hine, Te Parawhau, • Specific support provided for students Te Uriroroi, Ngäti Wai, Ngäpuhi, Te with disabilities (see Learning and Rarawa/ Ngäti Kahu, Ngäpuhi, Ngäti Disability Support, 1 .9) . Whatua/ Te Uri-O-Hau . • In response to needs identified by iwi Te Puna has included Wänanga
Student Group TARGET 2012 TARGET 2012 TARGET 2012 Student ACTUAL Retention ACTUAL Pass ACTUAL EFTS Proportion Rates Retention Rates Pass Proportion Rate Rate
Mäori > 40% 54% > 90% 64% > 70% 76%
Tertiary students > 8% 7% > 85% 67% > 70% 78% with disabilities
Female > 60% 46% > 90% 68% > 77% 80%
Töu iwi, töu wänanga • Your people, your place 99 RESEARCH
NorthTec encourages staff to be involved in research that contributes to regional development, Mäori development and/or informs teaching and learning and continues to develop a research culture through internal processes and funding . The Polytechnic values the opportunity to undertake research in collaboration with other tertiary providers and industry . Participation in the PBRF demonstrates NorthTec’s desire to foster a research culture focussed on quality of output, accountability and benchmarking performance . Research outputs for 2012 are listed below:
Authored Book Evans, L . A . (2012) . There’s plenty more water in the tap. Bruce, P . (2012) . Better business for a better world: Connecting Destruction of the mother - re-construction of the mother, (Milk principle and profit to build sustainable businesses. (revised paint on gauze, gnawed macadamia shells and eucalypt) . edition) . Whangarei: Engagement Edge Books . Applied Arts Räwene Tutors Exhibition . Räwene Art Gallery, Räwene . Bruce, P . (2012) . Your soul. Whangarei: Engagement Edge Books . Evans, L . A . (2012) . Body of Work. (installation of 38 works in a pile) . Drawing for Maquettes. (Images on double transparencies) . Chapter in Book What Rite –Narrabeen. (Pine box covered in gauze and iron Kruske, S ., Lenthall, S ., Kildea, S ., Knight, S ., Mackay, B ., & Hegney, filings, holding a Banksia grandis follicle/pod) . Untitled. Trustees D . (2012) . Rural and remote area nursing . In D . Brown & H . Exhibition at Village Arts Gallery, Kohukohu . Edwards (Eds), Lewis’s Medical-Surgical Nursing 3E: Assessment Feeney, M . (2012) . Object. (Ceramic and found material) . Invited and management of clinical problems. (3rd ed .) .(pp 208-219) . artist’s group exhibition . Cecil Veda Gallery, Wellington . Sydney: Elsevier . Feeney, M . (2012) . There’s plenty more water in the tap. (Graphite on primed board) . Räwene Arts, staff show . Hokianga Art Exhibitions Gallery, Räwene . Ecuyer, J . (2012) . Ceramic and wood exhibition. Geoff Wilson Feeney, M . (2012) . Atutahi, Matariki Exhibition. (Painted board, soft Gallery, Whangarei . sculpture and found material) . Invited artists' group exhibition . Ecuyer, J . (2012) . Objective Art Awards. Finalist . Judge Areta Hokianga Art Gallery, Räwene . Wikinson . Mangere Arts Centre, Auckland . Gibbs, M . (2012) . Living World. Invited group exhibition of artwork Ecuyer, J . (2012) . Voyagers. Selector Daniella Hulme . Waiheke that include living things . Geoff Wilson Gallery, Whangarei . Community Art Gallery, Waiheke Island, Auckland . Graver M . (2012) . The Harbin Series. Solo exhibition . Ecuyer, J . (2012) . Estuary Artworks. Selected finalist . Judges Chris Papergraphica, Christchurch, NZ . Saines and T J McNamara . Uxbridge Creative Centre, Howick, Graver, M . (2012) . Shadowplay. Solo exhibition . Solander Gallery, Auckland . Wellington, NZ . Ecuyer, J . (2012) . Invited Wood Artists. Dunn Gallery, Kapa’au, Graver, M . (2012) . Forty four sounds. (44 text panel digital prints Hawaii, USA . and HD Video) and Impression . (QR code text panel linked to HD Evans, L . A . (2012) . Treaty fetish. (Milk paint and Treaty House Video Utopia into Dystopia) . Waitakaruru Sculpture Park, Waikato, NZ . nails on kauri wharf beam) . Atutahi, Matariki Exhibition . Räwene Graver, M . (2012) . Forty four sounds. (HD Video) . Pushing Print Art Gallery, Räwene . Festival, Margate, UK . Graver, M . (2012) . Strand I, II, III. (Acrylic Resist Etching) . A4 Printmakers – Cornwall, UK .
100 Töu iwi, töu wänanga • Your people, your place RESEARCH
Graver, M . (2012) . Salix II. (Acrylic Resist Etching) . 3rd Bangkok Marks, L . (2012) . The Illustrator’s Studio. (Drawings) . Invited Triennial International Print and Drawing Award, Thailand . exhibitor, Old Library . Whangarei . August 2012 . Graver, M . (2012) . Strand I, II, III. (Acrylic Resist Etching) A4 Marks, L . (2012) . The Illuminosity Studio. (Light Box Medicine Printmakers, Guanlan Print Base, China . Cabinet) . Invited exhibitor, Yvonne Rust Gallery, Whangarei . Green-Cole, R . (2012) . Tai Ohua. Group Exhibition . Art Station, Marks, L . (2012) . Cash & Carry. (Drawings) . Hangar Gallery, Ponsonby, Auckland . Whangarei . Green-Cole, R . (2012) . Far North, Deep South – Northland and McFarlane, S . (2012) . Less is More - Group Exhibition . Kaan Southland connect. Group Exhibition . Riverton Community Zamaan Gallery, Kerikeri . Art Centre . McFarlane, S . (2012) . Fever – Solo Exhibition . Whitespace Hayward, G . (2012) . Bonfire of the vanitas, or please make your Gallery, Auckland . empties go another round. (Acrylic on wood) . Part of the New McFarlane, S . (2012) . Debut exhibition. Group Exhibition . Ipipiri Zealand International Arts Festival curated by Aaron Lister . The Gallery, Paihia . Obstinate Object, Contemporary New Zealand Sculpture, City McFarlane, S . (2012) . Houtupu. Group Exhibition . Village Gallery Wellington . Arts, Kohukohu . Hayward, G . (2012) . The covers - self titled album. (Acrylic on McFarlane, S . (2012) . Pictures of the past change their meanings linden) . Part of the New Zealand International Arts Festival fast. Solo Exhibition . AVID Gallery, Wellington . curated by Aaron Lister . The Obstinate Object, Contemporary New McFarlane, S . (2012) . The first rays of the morning sun. Group Zealand Sculpture, City Gallery Wellington . Exhibition . Bill Milbank Gallery, Wanganui . Hayward, G . (2012) . Open circuit. Part of the New Zealand McManus, F . (2012) . Participant. Tai Tokerau Mäori Artists International Arts Festival curated by Aaron Lister . The Collective International Wänanga . Ngapuhi Festival Exhibition . Obstinate Object, Contemporary New Zealand Sculpture, City Gallery Wellington . McManus, F . (2012) . Tai Ohua, Toi Whakaata (Mäori Printmakers) Exhibition . Artstation, Auckland . Hayward, G . (2012) . Rita Angus Fellow, Wellington . Subsequent exhibition, I’ve met some beautiful people, scheduled for May McManus, F . (2012) . Impressive. Nathan Homestead, Manurewa, 2013, City Gallery, Wellington . Auckland . Hayward, G . (2012) . Double happy. (Acrylic on wood) . Collected Parker, R . (2012) . New World: Timeless visions . International Fictions, a project conceived and curated by Gareth Williams and Academy of Ceramics Exhibition, New Mexico Museum of Art, Kim Paton . Waikato Museum forecourt . Sante Fe, New Mexico, USA . Hayward, G . (2012) . You are here. (Enamel on MDF, 2006) . Parker, R . (2012) . Master of craft. The Sargeant Gallery, Matariki exhibition curated by Clare Kaahu White, Hokianga Art Whanganui . Gallery, Räwene . Parker, R . (2012) . Master of craft. The Suter Art Gallery, Nelson . Hayward, G . (2012) . Kohol Newcastle. (Acrylic on MDF, 2010) . There Parker, R . (2012) . Master of craft. Te Manawa, Palmerston North . is plenty more water in the tap, Hokianga Art Gallery, Räwene . Smith, E . (2012) . The tutor show. Group exhibition, The Geoff Hayward, G . (2012) . The covers - self titled album. (Acrylic on Wilson Gallery, Toi Te Pito, NorthTec, Whangarei, New Zealand . linden) . Closed circuit (Acrylic on rimu, 2009) . Melbourne Art Fair, Smith, E . (2012) . Self. Group exhibition, The Shutter Room, Old Melbourne . Library Community Art Centre, Whangarei, New Zealand . Hayward, G . (2012) . White form. (Enamel on wood) . Starkwhite Smith, E . (2012) . Shades of grey. Group exhibition, The Shutter Gallery, Auckland . Room, Old Library Community Art Centre, Whangarei, Marks, L . (2012) . Un-invited Guests. (Drawings & prints) Primary New Zealand . exhibitor, Geoff Wilson Gallery, Whangarei .
Töu iwi, töu wänanga • Your people, your place 101 RESEARCH
Smith, E . (2012) . Art for kids. Curator, Group exhibition, The Oral Presentation Shutter Room, Old Library Community Art Centre, Whangarei, Anderson, J . (2012, 27 March) . Dedicated education unit. New Zealand . Presentation to Auckland University Masters students . Tuato’o Ross, C . (2012) . Petit fours – From denial to daydream. Whangarei . Photospace Gallery, Wellington . Briscoe, J . (2012, 25 June) . Contribution to teaching award: Tuato’o Ross, C . (2012) . The Optimist’s House. Village Arts, Simulation in nursing education. Presentation to Northland Kohukohu . Polytechnic Staff at the Inspire Tech Seminar . Whangarei . Tuato’o Ross, C . (2012) . in Photomontage: a suite of six Briscoe, J . (2012, 20 July) . Simulation in undergraduate nursing photography exhibitions. Whangarei Art Museum . education. Presentation to Auckland University Masters students . Tuato’o Ross, C . (2012) . Settle. Curated exhibition, with Vanessa Whangarei . Crowe and Caroline McQuarrie . Geoff Wilson Gallery, Whangarei . Mackay, B . (2012, 24 August) . Using action research methodology Tuato’o Ross, C . (2012) . The tutor show. Group exhibition . Geoff to evaluate iPad in a clinical teaching context. Presentation to Wilson Gallery . Auckland University Masters students . Whangarei . White, C . K . (2012) . Far North-Deep South. Group exhibition (invited Menefy, D . (2012) . Book Talk: Truth or lies with Tessa Duder . artist) . Riverton Community Arts Centre . Storylines Family Fun Day: Auckland Festival . Wilson, M . (2012) . Te Taiao O Hokianga. (Painting, oil on canvas) . Menefy, D . (2012) . Panel Discussion: What next for YA fiction? with Invited artists' group show . Hokianga Art Gallery, Räwene . Tessa Duder, Rachel King, David Hill and Melinda Szymanik . Storylines Family Fun Day, Auckland Festival . Wilson, M . (2012) . Writ large. (Painting, oil . Gesso, charcoal, MDF) . Invited artists' curated exhibition, Seed Gallery, Auckland . Menefy, D . (2012) . Book Talk: Shadow of the Boyd. Author, NZ Book Month . Wilson, M . (2012) . Atutahi. (Painting, oil on board) . Invited artist' curated show . Hokianga Art Gallery, Räwene . Scobie, N . (2012, 19 July) . The NorthTec Bachelor of Nursing curriculum. Presentation to Auckland University Masters Wilson, M . (2012) . Exquisite corpse, an exercise in collaborative students . Whangarei . imagination. (Painting, oil, on board, etching) (Tracy Black) . Invited artists' group show . Seed Gallery, Auckland . Wilson, M . (2012) . There’s plenty of water in the tap. (Painting, oil Commissioned Report for External Body on board) . Tutor show . Hokianga Art Gallery, Räwene . Bruce, P ., Van Es, L . J, & Hughes, W . (2012) . The social and Wilson, M . (2012) . Cross purpose. (10 paintings on wood) . Invited economic impact of the proposed CCR Project. http://www . artists' group show . Seed Gallery, Auckland . refiningnz .com/media/85915/socio-economic_impact_report .pdf . Mullany, M . J . (2012) . The financial impact of the 2011 A & P Summer Show on Whangarei District, and implications for future Journal Article shows. Commissioned report for the Agricultural and Pastoral Ball, O . J-P ,. Whaley, P . T ., Booth, A . M ., & Hartley, S . (2012) . Society, Whangarei . 20pp . Habitat associations and detectability of the endemic Te Paki ground beetle Mecodema tenaki (Coleoptera: Carabidae) . New Zealand Journal of Ecology, 37, 1 . (In press) . Scholarly Edition Mackay, B ,. Harding, T ., Jurlina, L ., Scobie, N ., & Khan, R . Graver, M . (2012) . “The Search for a World Wide Acrylic Hard (2012) . Utilising the Hand Model to promote a culturally safe Resist” – research in collaboration with Gerald Ferstman, environment for international nursing students . Nurse Education University of Kentucky, USA, article written by Mark Graver . in Practice. 12, 120-126 . Imprint Australian Print Quarterly Magazine Summer 2012 . Mackay, B . & Anderson, J . (2012) . iConnecting on clinical Green-Cole, R . (2012) . “Photomontage: A suite of six photography placements . Nursing Review (In press) . exhibitions” Savvy Magazine, Northern Advocate, p . 13 .
102 Töu iwi, töu wänanga • Your people, your place RESEARCH
Green-Cole, R . (2012) . “Permanent Collection - Whangarei Art Pohe, S . R ., Winterbourn, M .J . & Ball, O . J .-P . (2012) . Kanapa Museum” Interview with Director Scott Pothan of Whangarei Karaaroa (Aupouriella pohei) — New Zealand’s rarest mayfly . Art Museum Te Manawa Toi for an online video of the Poster presented at the 61st New Zealand Entomological Society permanent collection. Conference. Whangarei, New Zealand . Mackay, B ,. Anderson, J ., Arlidge, J ., McNally, G ., & Christian, Thompson, B ., Ball, O . J .-P ., & Fitzgerald, B . M . (2012) . Habitat L . (2012) . Exploring mobile technology in teaching practice: associations of two species of Pahoroides (Araneae: Synotaxidae) An exploration of mobile technology within a clinical teaching in Pukenui Forest, Northland, New Zealand . Poster presented at context . DEANNZ Magazine. Retrieved from http://www .deanz .org . the New Zealand Ecological Society Conference. Whangarei, nz/home/images/newsletters/August12 .pdf New Zealand . Tuato’o Ross, C . (2012) . “The optimist’s house: Photographs” in Art New Zealand, Number 141, Autumn . pp 71-75 . Conference Contribution - Oral presentation Tuato’o Ross, C . (2012) . “Understated works satisfy” Northern Ball, O . J .-P ., & Fitzgerald, B . M . (2012) . Observations on spider Advocate exhibition review . diversity in Tai Tokerau . Oral presentation at the 61st New Zealand Entomological Society Conference. Whangarei, Conference Contribution - Full Conference paper New Zealand . Van Es, L . J . (2012) . The financial impacts of the Emissions Ball, O . J .-P ., & Webber, W . R . (2012) . Hopping madness: Trading Scheme on Northland businesses. Presentation at the taxonomic troubles with terrestrial Talitridae of Tai Tokerau . Oral New Zealand Applied Business Educators Conference, WinTec, presentation at the 61st New Zealand Entomological Society Hamilton, New Zealand . Conference. Whangarei, New Zealand . Fitness, J ., Trewick, S ., Ball, O . J .-P ., & Morgan-Richards, M . (2012) . New Zealand cave weta biodiversity (Rhaphidophoridae) . Conference Contribution - Paper in published proceedings Oral presentation at the 61st New Zealand Entomological Society Van Es, L . J . (2012) . The financial impacts of the Emissions Conference . Whangarei, New Zealand . Trading Scheme on Northland businesses. Proceedings of Conference Contribution – Other the New Zealand Applied Business Educators Conference, WinTec, Hamilton, New Zealand .http://www .nzabe .ac .nz/ Ball, O . J .-P . Convenor of the 61st New Zealand Entomological conferences/2012/NZABE2012-Conference-Proceedings .pdf Society Conference, 17th-20th April, 2012, Whangarei, New Zealand . Bruce, P ., & Pillay, N . (2012) . Sustainability and growth: Conference Contribution - Poster presentation Challenges for the New Zealand Communication Association. Anderson, J ,. Mackay, B ., Christian, L ., McNally, G ., & Arlidge, Workshop presented at the New Zealand Communication J . (2012) . iPads – A social media device or a tool to enhance Association Conference, Hamilton, New Zealand . teaching. Poster presented at the NZNO Nursing Research Smith, E ., 2012 . Toxic Bloom . Toxic Bloom Roundtable, AAANZ Conference 2012 . Nelson, New Zealand . conference Together Apart, University of Sydney, Sydney . Mackay, B ,. Anderson, J ., Arlidge, J ., McNally, G ., & Christian, L . Thompson, A ., Frayling, M ., & Marlowe, J . (2012) . Working with (2012) . Mobile technology: Enriching that teachable moment in groups - new theories on working with grief and narrative ways client education. Poster presented at the NZ College of Primary of storying loss and re-membering with adults. Workshop : Grief Health Care Nurses NZNO Inaugural Conference 2012 . Hamilton, and bereavement – Practical and theoretical approaches to New Zealand . working with the bereaved . Massey University . Mitchell, C . M ., Ball, O . J .-P ., and Mitchell, P . T . (2012) . Ground- Tuato’o Ross, C . (2012) . Head in the clouds/head in the sand . Toxic dwelling invertebrates from Bream Head Scenic Reserve . Poster Bloom Roundtable, AAANZ conference Together Apart, University presented at the 61st New Zealand Entomological Society of Sydney, Sydney . Conference. Whangarei, New Zealand .
Töu iwi, töu wänanga • Your people, your place 103 RESEARCH
Monograph Graver, M . (2012) . Left over prints. USA . Wharepuke Gallery . Van Es, L . J . (April 2012) . The financial impacts of the Emissions Graver, M . (2012) . Black on white. Paul Croft (UK), Andrew Trading Scheme on Northland businesses. http://www . Baldwin (UK), Chris Pig (UK), Cleo Wilkinson (AUS) . Prints . northchamber .co .nz/imagelibrary/100802 .pdf Wharepuke Gallery . Graver, M . (2012) . Rotten boroughs. Stephen Mumberson (UK) Other Scholarly Outputs and The Stately Aquariums of England David Ferry (UK) . Prints . Wharepuke Gallery . Mullany, M . J . (2012) . Statistical Analysis for Dr Ram Naidu at Whangarei Hospital; knee reconstruction data . Graver, M . (2012) . Interior/internal. Geoff Tune . Digital prints . Wharepuke Gallery . Mullany, M . J . (2012) . Statistical Analysis for Dr Ram Naidu at Whangarei Hospital; knee replacement data . Graver, M . (2012) . Chhaap. Printmaking from India (catalogue published with assistance from Asia NZ Foundation) . Mullany, M . J . (2012) . External examiner PhD Thesis . University of Wharepuke Gallery . Witwatersrand, Johannesburg, South Africa . Graver, M . (2012) . Sandy Sykes (UK) . Prints and Drawings . Mullany, M . J . (2012) . Co-supervision of Masters Student . Wharepuke Gallery . AUT, Auckland . Green-Cole, R . (2012) . LEGEND! Myth and allegory in Aotearoa, co- curated with Scott Pothan, Whangarei Art Museum Te Reviews Manawa Toi . Briscoe, J . (2011) . Reviewer for the book, D . Brown & H . Edwards Green-Cole, R . (2012) . PHOTOMONTAGE: A suite of six photography (Eds), Lewis’s medical-surgical nursing 3E: Assessment and exhibitions, co-curated with Scott Pothan . Whangarei Art Museum management of clinical problems, Sydney: Elsevier . Te Manawa Toi . Davison, J . (2012) . Reviewer for the Journal of Clinical Nursing . Green-Cole, R . (2012) . FROM THE ARCHIVE: Te Kowhai Print Trust: Online ISSN: 1365-2702 . Blackwell Publishing Ltd . 30 Year Anniversary Exhibition. Yvonne Rust Gallery, Quarry Art Ball, O . J -P. . (2012) . Reviewer for the New Zealand Journal Centre, Whangarei . of Ecology . White, C . K . (2012) . Waitangi Exhibition 2012. Hokianga Art Gallery . Ball, O . J -P. . (2012) . Reviewer for the New Zealand Entomologist . White, C . K . (2012) . Matariki Exhibition 2012. Hokianga Art Gallery .
Curated exhibitions Kaupapa Mäori Graver, M . (2012) . 2nd art at Wharepuke. International Open Print White, C . K . (2012) . Official photographer, Te Rarawa Deed of Show . Wharepuke Gallery . Settlement. Te Runanga o Te Rarawa . Graver, M . (2012) . PAN. Print Arts Northwest, USA . Wharepuke White, C . K . (2012) . Participant and recorder, Te Rarawa (Workshop Gallery . to shape their strategies and policies post-settlement) . Te Graver, M . (2012) . Or, click true. William Hedley, Paintings . Runanga o Te Rarawa . Wharepuke Gallery .
104 Töu iwi, töu wänanga • Your people, your place PARTNERSHIPS
NorthTec has established vital partnerships with institutions to enhance educational achievement in the Northland region. The following are NorthTec’s key strategic partners:
Te Whare Wänanga o Awanuiärangi Te Wänanga o Aotearoa Given wänanga status in 1997, Te Whare Wänanga o Awanuiärangi Guided by Mäori principles and values, Te Wänanga o Aotearoa formed a partnership with NorthTec in 2009 and began delivering prides itself on having an inclusive, interactive and nurturing graduate and undergraduate programmes at NorthTec’s Whangarei learning environment . It has eleven main campuses across the campus in 2010 . The two institutions continue to develop graduate country, including the one in Whangarei at the Raumanga campus, and post graduate study pathways in Whangarei and at other where it began delivering its programmes in August 2011 . Te NorthTec sites . Wänanga o Aotearoa will be working alongside NorthTec to provide www .wananga .ac .nz staircasing opportunities from each other’s programmes . www .twoa .ac .nz
Unitec Since the beginning of the 2012 academic year, students who Northland Rugby League have successfully completed the Diploma in Conservation and Rugby League Northland and NorthTec have shared visions and Environmental Management at NorthTec can apply to gain goals that include transforming young people’s lives through direct entry into the one year Bachelor of Applied Science degree education, which could prove to be a key to unlocking their full programme with Unitec . potential . www .unitec ac. .nz
Campus Chamber Auckland University of Technology (AUT) A partnership between NorthTec and the New Zealand Chambers of The students who successfully complete the Diploma in Sport Commerce Northland ensures that Northlanders engaged in tertiary and Recreation at NorthTec gain automatic right of entry into education can maintain contact and networks within the business the Bachelor of Sport and Recreation (AUT) programme through community and see the sectors as relevant and accessible . a partnership NorthTec has with AUT, New Zealand’s newest university . www .aut .ac .nz
Old Library NorthTec and the Old Library have enjoyed a strong relationship Taratahi Agricultural Training Centre and recognise that collectively they can better serve their customers, the creative sector and the wider community, by With the support of a number of different farms and venues formalising a partnership that provides each with an opportunity throughout Northland, Taratahi, in partnership with NorthTec, are to utilise and build on their distinctive strengths . delivering Level 3 Farming Skills (Work Ready) and General Farm Skills certificates . www .taratahi .ac .nz
Töu iwi, töu wänanga • Your people, your place 105 THE COUNCIL OF NORTHTEC
The Council of NorthTec for the period ended 31 December 2012
Vern Dark M .Sc ., B .Sc . (Hons) Appointed by the Minister of Education Chair of Council
Erima Henare Appointed by the Minister of Education Deputy Chair of Council
Warren Moyes BA (Geography Major), B .Cert Appointed by the Minister of Education Teaching, Certificate in Teaching, Diploma in Teaching
Clare Davies-Colley BCA, CA, ACIS Appointed by the Minister of Education
Ken Rivers MA, CEng, FIChemE Co-opted Member (Resigned December 2012)
Susan Cullen BSc, Co-opted Member Certificate in Adult Teaching, MEDAdmin, Adjunct Professor
Brian Roberts Dip Bus Mngt (Marketing) Co-opted Member
John Mote MArts Co-opted Member Diploma in Teaching (Resigned January 2013)
106 Töu iwi, töu wänanga • Your people, your place SENIOR STAFF AND MANAGEMENT OF NORTHTEC
Senior staff and management for the period ended 31 December 2012
Chief Executive BSc Economics (Hons) Paul Binney Chartered Accountant NZICA and ICAEW
Kaumätua Certificate in Te Arataki Manu Korero Hohepa Rudolph Certificate in Tikanga Mäori Level 3
Director Corporate Services BSc (Hons) Environmental Science Andy Britton (acting) Diploma in Air Pollution Control (Royal Society of Health) FCA - ICAEW CA NZICA IOD, member MSRM, Member of Society for Risk Management
Director Mäori MA (Applied Social Work) Adrianne Taungapeau BA Sociology and Social Policy (to 16 January 2012) Diploma Licentiate in Theology
Business Director Health & Environment Diploma in Secondary Teaching Phil Giles
Business Director Commerce Diploma in Teaching Dr . Mark Ewen BEd Post Graduate Cert TESOL Master of Environmental Education - (Hons) MA (Learning and Teaching in Higher Education) PhD (Sustainable Development)
Business Director Creative Industries & Humanities BSc (Hons) in Psychology Khalid Bakhshov MSc (Organisational and Occupational Psychology) MA (TESOL) Diploma in Management Studies PGCE (Post Graduate Certificate in Education for the Post Compulsory Education Sector)
Director Organisational Development BTEC Diploma in Management David Harrop Financial Planning Certificate MHRINZ (Professional Member of Human Resources Institute of New Zealand)
Töu iwi, töu wänanga • Your people, your place 107 NORTHTEC VALUES
In late 2011 we undertook a major consultative review of our organisational values. This culminated in workshops as part of our 2012 Staff Conference and the finalisation of the new NorthTec values. We are proud to present these values to you.
Whänau • Value diversity and uniqueness • Mana enhancing • A sense of belonging • Whanaungatanga • Respect
Excellence A logo design competition was held for • View change as an opportunity all staff members. • Organisational development is planned and sustainable • Striving to be the best we can This logo, designed by Computing tutor • Ability to reflect and continually improve Brett Hutchinson, represents the four • Taking ownership and being responsible values, interwoven creating a greater, stronger whole. Inspiration • Celebrate success and achievement • Support creativity • Empowering and inspiring our staff and students • Leadership • Passion in what we do
Sharing • Communication • Team Spirit • Collaboration • Manaakitanga • Customer focus
108 Töu iwi, töu wänanga • Your people, your place GLOSSARY
API Academic Performance Indicators
BAA Bachelor of Applied Arts
BAM Bachelor of Applied Management
BBM Bachelor of Business Management
BASS Bachelor of Applied Social Service
BITO Boating Industry Training Organisation
BCITO Building Construction Industry Training Organisation
BHSc (Nursing) Bachelor of Health Science (Nursing)
EEO Equal Educational Opportunities
EFTS Equivalent Full-time Students
EITO Engineering Industry Training Organisation
ESOL English for Speakers of Other Languages
FIT Forest Industries Training
FTE Full-Time Equivalent
IELTS International English Language Testing System
ITO Industry Training Organisation
ITPNZ Institutes of Technology and Polytechnics of New Zealand
ITPQ Institutes of Technology and Polytechnics Quality
KPI Key Performance Indicators
MITO Motor Industry Training Organisation
NQF National Qualifications Framework
NZDB NZ Diploma in Business
NZIM New Zealand Institute of Management
NZQA New Zealand Qualifications Authority
PTE Private Training Establishment
QMS Quality Management Systems
SDR Single Data Return
TAMU Tertiary Advisory Monitoring Unit
TANZ Tertiary Accord of New Zealand
TEC Tertiary Education Commission
Töu iwi, töu wänanga • Your people, your place 109
Professional Services
Bankers Bank of New Zealand Cnr. Bank Street and Rust Avenue PO Box 644 Whangarei Telephone 09 438 4199
Solicitors Thomson Wilson Rathbone Street PO Box 1042 Whangarei Telephone 09 438 4039
Statutory Auditors Audit New Zealand on behalf of the Auditor General Level 10 Wollongong Building 155 Queen Street Private Box 1165 Auckland Telephone 09 373 5457 Whangarei Campus Räwene Learning Centre 57 Raumanga Valley Road, Whangarei, 0110 Nimmo Street East, Räwene, 0443 Private Bag 9019, Whangarei Mail Centre, 0148, New Zealand PO Box 171, Räwene, 0443, New Zealand Telephone +64 9 470 3555 Telephone +64 9 405 7659 Facsimile +64 9 470 3556 Facsimile +64 9 405 7683 Freephone 0800 162 100 Kaikohe Learning Centre Future Trades Campus 4 Park Road, Kaikohe, 0405 19 Dyer Street, Whangarei, 0110 PO Box 675, Kaikohe, 0440, New Zealand Private Bag 9019, Whangarei Mail Centre, 0148, New Zealand Telephone +64 9 405 3494 Telephone +64 9 470 3980 Facsimile +64 9 405 3493 Facsimile +64 9 470 3556 Kaitaia Learning Centre Bay of Islands Campus 21 South Road, Kaitaia, 0410 Cnr Kerikeri and Hone Heke Roads, Kerikeri, 0230 P O Box 622, Kaitaia, 0441, New Zealand PO Box 332, Kerikeri, 0245, New Zealand Telephone +64 9 408 6117 Telephone +64 9 407 5855 Facsimile +64 9 408 6118 Facsimile +64 9 407 5669