2006 Annual Report

Published by: Te Wänanga o Aotearoa (Head Office - 320 Factory Road) PO Box 151, Te Awamutu, New Zealand

Date of issue: 2008

He Whakamaumahara i Te Ariki-nui

RemembranceTangihia te tangi haehae rä i te whatumanawa

Tangihia te tangi parawhenuamea nei i te nukuroa

Të häro i te püao o te ata

Kei Te Raukura Mähaki, haere rä

Haere ki Te Pae o rangi-tühähä, ki Whakamoe-ariki täoki ai atu

The news of the passing of our Mäori Queen, Dame Te Ariki-nui Te Ata-i-rangi-kaahu, in August 2006 filled us all

with great sadness. It is extremely difficult to find words to express the many thoughts and emotions we experienced

throughout the tangihanga of our Queen and during the many days since.

Her contribution to Tainui, to Mäori, to Aotearoa and to the world will forever be in the hearts, minds and souls of the

many people who came into contact with her. Her life and her many achievements will continue to be recorded in the

history books of many authors and in the assignments of many tauira the world over. Her life will also continue to be

celebrated in song and dance for many generations to come.

We ask Te Atua to watch over her as she joins the leaders of the Kïngitanga who have passed on before her: Kïngi

Pötatau Te Wherowhero, Kïngi Tawhiao, Kïngi Mahuta, Kïngi Te Rata and Kïngi Koroki.

Our thoughts are with Whatumoana, a pillar of strength and support for our Queen for many years and a leader in his

own right and with ngä tamäriki me ngä mokopuna. Our aroha is with you all.

Te Arikinui supported and guided Te Wänanga o Aotearoa many times throughout its history and was present particularly

during times of struggle. Two notable recent events were the opening of Te Puna Mätauranga (Head Office) in the year

2000 and the pöwhiri for ACT members Ken Shirley and Rodney Hide in the heat of the political debates surrounding

Te Wänanga o Aotearoa at that time. Her presence at the World Indigenous People’s Conference on Education in 2005

was another highlight.

To our new King, Tüheitia Paki, a Poutokomanawa within Te Wänanga o Aotearoa for many years and campus director

of Rähui Pökeka Campus, kia kaha, kia maia, kia manawa-nui.

nä Bentham OhiaPouhere

He Whakamaumahara i Te Ariki-nui | Remembrance - i

Ko te Kaupapa o Te Wänanga o Aotearoa

The Character of Te Wänanga o Aotearoa:Ki te whakawhiwhi i ngä mea angitü, ä, i ngä akoranga katoa tino teitei mö ngä Mäori me ngä iwi o Aotearoa me te ao;

Ki te waihanga i tëtahi ähuatanga hei akoranga tikanga Mäori;

Ki te whakawhiwhi i te mea akoranga whai kiko;

Ki te tautoko, ki te whakahau, ki te arahi i ngä tauira katoa, i a rätou e aru ana i ngä whanaketanga i ngä akoranga me

ngä mahi e pä ana ki a rätou;

Ki te whakahau i ngä tauira katoa ki te ako kia whiwhi ai rätou i te puäwaitanga tino teitei o te mäiatanga;

Ki te whakahau i öna kaimahi, kia pai ai te haere o ngä tikanga o te mahi i whakaatu mai, kia whiwhi ai rätou i te

puäwaitanga tino teitei o te mäiatanga.

To provide holistic education opportunities of the highest quality for Mäori, peoples of Aotearoa and the world;

To provide a unique Mäori cultural learning environment;

To provide practical learning experiences;

To provide support, encouragement and guidance to all learners in their pursuit of personal development, learning and

employment;

To encourage all learners to learn and achieve to their fullest potential;

To be a good employer and encourage staff to develop personally and professionally to their fullest potential.

ii - Ko te Kaupapa o Te Wänanga o Aotearoa | The Character of Te Wänanga o Aotearoa

Ko Te Uaratanga o Te Wänanga o Aotearoa

The Mission Statement of Te Wänanga o AotearoaKo te whakarite mätauranga e hängai ana ki ngä wawata o tënei whakatupuranga, ki te whakaü hoki i ngä moemoeä o

ngä whakatupuranga o te ao türoa, ki te whakatikatika kia märama ai ki te hä o te ao tawhito;

Ki te whakatö ki roto i te hinengaro tangata te möhiotanga o ngä taonga tuku iho, tö tätau reo, tö tätau Mäoritanga e pai

ai tä rätou torotoro i ngä iwi o te ao i runga i te mäia me te manawanui;

Ki te whakamana i te pümanawa moe ki te ako hei taumata e hïkoi whakamua i roto i te ao hou;

Ki te whakatakoto täkoha e whai hua ai. Kia manawapä ano;

Kia mutu tonu, he käinga pai tënei ao.

To provide an education that best fits the aspirations of this generation, enhances the dreams of future generations,

prepares for understanding the essence of past generations;

To equip our people with knowledge of their heritage, their language, their culture, so they can handle the world at large

with confidence and self-determination;

To empower one’s potential for learning as a base for progress in the modern world;

To make contributions of consequence; to care;

To make our world a better place.

Ko Te Uaratanga o Te Wänanga o Aotearoa | The Mission Statement of Te Wänanga o Aotearoa - iii

Table of Contents

01 Ngä Mema o Te Mana Whakahaere - Council Members

02 Kaiwhakahaere

03 Chairperson’s Report

04 Pouhere Report

06 Tauira Information

09 Employee Information

10 Statement of Service Performance

41 Financial Overview

43 Statement of Responsibility

44 Report of the Auditor-General

46 Statement of Accounting Policies

50 Statement of Financial Performance

51 Statement of Movements in Equity

52 Statement of Financial Position

53 Statement of Cashflows

54 Financial Ratios

55 Notes to the Financial Statements

70 Statement of Commitments and Contingencies

v

Ngä Mema o Te Mana Whakahaere | Council Members - 1

Ngä Mema o Te Mana WhakahaereCouncil MembersAs at 31 December, 2006

Chairperson

Craig CoxheadB Soc Sci; LLB (Hon); LLM (Waikato)Resigned: 10 January, 2008

Ministerial Appointment

Deputy Chairperson

Richard BatleyBMS (Waikato); CAElected as Chairperson: 27 February, 2008

Co-opted Member

Pouhere (CEO)

Bentham OhiaDip Tchg (Waikato); BA (Otago); MBA (Waikato)

Ex-officio

Members

Tania HodgesRPN; BSocSci; PG Dip Mgmt St; MBA (with Distinction);

PGCBR


Lloyd AndersonRN; Dip Dairy Farming

Co-opted Member

Mana ForbesDip Tchg; Dip Te Arataki Manu Körero

Co-opted Member

Napi WaakaOBE; Adj Professor; Dip Theol; Dip Tchg

Kaumatua

Parekäwhia McLeanMA (Wisconsin); MSocSci (Waikato)

Co-opted Member

Tamati ReedyBA; MA (Auckland); MA; PhD (Hawaii)


Hoturoa Barclay-Kerr Co-opted Member

Matt McCarten NZCTU Representative

Peter SkerrettDip Te Tohu Mätauranga i te Reo me ona Ähuatanga

Katoa; Dip te Reo Rangatira; B Appl Soc Sci

Staff Representative

Academic

Neville BakerDip Soc Work (Victoria)

Business NZ Representative

Jo DaveyDip Bus Comp (Wintec); B InfoTech (Wintec)

Student Representative

Kaumatua

Tui AdamsQSO; Hon PhD (Waikato); Adj Professor (TWoA)

Kaumatua – Cultural Advisor

2 - Kaiwhakahaere

Kaiwhakahaere

as at 31 December, 2006

Ngä KaihautüMarvynne Ashley Kaihautü Student Services

Jay Bocock Kaihautü Information Management

Shane Edwards Kaihautü Curriculum

Peter Huntley Kaihautü Human Resources

Turi Ngatai Kaihautü Delivery

Hinemoerangi Ngatai Tangirua Kaihautü Teaching & Learning

Kaiwhakahaere-a-RoheHaimona Maruera Jnr. Regional Manager - Papaiöea

Mathew Maynard Regional Manager - Te Tai Tonga

Jim McTamney Regional Manager - Waiariki

George Ngatai Regional Manager - Tamaki Makaurau

Katerina Te Kani Campus Manager - Whirikökä

Brad Totorewa Regional Manager - Tainui

Te Ranga TuaruaTui Adams Kaumatua to Pouhere & Te Arataki Manu Körero

Logan Anderson Student Support Services Manager

Theresa Aucamp Human Resource Development Manager

Louise Berney Finance Manager

Lonny Brown Human Resource Operations Manager

Kieran Hewitson Curriculum Leader

Jeanette Horan Marketing Manager

Heather Johnston Health & Safety Manager

Chona Kennedy Student Registry Manager

Angela Malcolm Curriculum Development Hub Leader

Jason Nepia Customer Services Manager

Elizabeth Nikora Strategic & Quality Assurance Manager

Colin Owens Delivery Analyst

Elizabeth Pakai Early Learning National Manager

Marie Panapa Senior Cultural Ambassador

Jade Stevens Technology Project Manager

Diane Stockman Audit and Risk Management Unit Manager

Carla Te Anga Academic Data Unit Manager

Te Napi Waaka Kaumatua

Warren Williams National Technical Services Manager

Chairperson’s Report - 3

Chairperson’s Report

2006 marked a year where tough but necessary decisions

were made by Te Wänanga o Aotearoa to ensure the

institution continues to fulfil its essential role in the New

Zealand tertiary education landscape. The year brought

more consolidation and re-alignment to halt declining

revenue and to meet new tertiary education policy.

It has been a year where the spirit and commitment of

the institution’s staff and council continued to ensure we

remained true to our principles, while protecting the survival

of Te Wänanga o Aotearoa. The significant efforts of staff

saw more than 42,000 tauira enrol with the institution. This

was an increase on budget of almost ten percent, which

provided a clear demonstration of the importance of Te

Wänanga o Aotearoa in the tertiary education landscape.

The result provided increased income to fund further

consolidation efforts.

At the start of the year, Bentham Ohia was appointed

as Pouhere of Te Wänanga o Aotearoa. His immediate

task was to reconfirm the presence of Te Wänanga o

Aotearoa in the sector and to effect changes necessary

to set a clear pathway forward for the institution. Bentham

brings to the role thirteen years of senior management

experience working within Te Wänanga o Aotearoa.

I welcome Bentham as leader of this institution and offer

my gratitude for his efforts during 2006. His knowledge

of the objectives of Te Wänanga o Aotearoa and his

absolute commitment to the kaupapa, mission and values

ensure that the unique essence of the institution will be

preserved.

Te Wänanga o Aotearoa has identified and begun to

implement the processes required to ensure the vibrant

and exciting potential of this organisation is achieved. We

have continued to provide fresh, dynamic programmes

(from certificate to degree level) that draw tens of

thousands of tauira to our classrooms. It is the unique and

inclusive learning environment offered by Te Wänanga

o Aotearoa that attracts many of these tauira to develop

their skills to meet their potential, adding greater value to

their communities and the New Zealand economy.

The new direction charted for Te Wänanga o Aotearoa

upholds the institution’s kaupapa. We remain steadfast

in our commitment to maintain an inclusive and nurturing

educational philosophy based on Mäori principles and

values. Change has been driven by a new political

environment coupled with a very buoyant job market.

The realignment is also an inevitable outcome of the

spectacular growth experienced by the organisation in

recent years. Although much work has been done, there

is still a need for further consolidation. This will include

testing governance and management structures to ensure

we are best placed to meet an exciting future.

I applaud Craig Coxhead and members of Te Mana

Whakahaere for their continued efforts, providing vision

and guidance for the required changes throughout this

year. I would also like to thank Crown Manager, Brian

Roche, and his team for providing specialised advice and

assistance as we improve the efficiency of the organisation

moving forward.

Most importantly, I acknowledge the efforts of the Pouhere

and his team for their immense efforts in driving change

within the organisation. This has ensured we are better

placed to continue to meet the education and training

needs of the communities we serve.

Richard Batley

Chairperson – Te Mana Whakahaere

4 - Pouhere Report

Pouhere Report

Transition and transformation were the defining

characteristics of 2006. It was a year of rebuilding

following the internal and external demands of 2005. My

role as Pouhere was confirmed at the start of the year

and I humbly accepted the task of reaffirming the position

of Te Wänanga o Aotearoa as a significant contributor

to Mäori development and to development of the wider

community.

Over the period 2001 to 2004, Te Wänanga o Aotearoa grew

very quickly and, accordingly, we employed a large number

of staff to meet the needs of our tauira and the needs of

our organisation. This rapid growth outpaced our ability to

create and embed the administrative systems necessary

to support this influx of new staff. As a result, our structure

developed in response to our immediate needs.

Like other tertiary institutions, Te Wänanga o Aotearoa

experienced a downturn in enrolments during 2006,

attracting just 60% of the 2003 peak. With tauira numbers

falling, we were in a position of having more staff than our

income was able to support. At the same time, changes

in tertiary education sector policy precluded a return to

the period of high growth in tauira numbers that had been

experienced earlier.

For these reasons, our primary focus during 2006 was to

ensure Te Wänanga o Aotearoa survived, operated within

its resources and became a more efficient organisation

while continuing to deliver innovative, effective and valued

educational options for our tauira. Strategies for increasing

revenue and reducing costs were proposed and confirmed.

One strategy was to restructure the organisation and this

was implemented in 2006.

The restructure (Te Anga Whakamua) provides an

enhanced management framework with clearer reporting

lines and additional clarity for roles and responsibilities

throughout the institution. Te Anga Whakamua also

included a reorganisation of our programme delivery

and campus operations across the country. The five new

regions (rohe), including Gisborne campus, are:

• Tamaki Makaurau / Tai Tokerau (Northern) Rohe;

• Tainui (Waikato) Rohe;

• Waiariki (Bay of Plenty / Rotorua) Rohe;

• Papaiöea (Central) Rohe;

• Te Tai Tonga (Southern) Rohe; and

• Whirikökä (Eastern) Campus.

Te Anga Whakamua affected 643 non-tutorial staff

across the institution with 330 positions, sadly, being

made redundant. Yet, against this unsettling backdrop,

non-tutorial staff continued to support teaching staff to

deliver education to over 42,000 tauira (totalling 19,750

consumed EFTS). The commitment of staff during this

period enabled the institution to maintain retention,

completion and graduation rates that were once again

amongst the highest within the tertiary education sector in

Aotearoa New Zealand. Their efforts paved the pathway

to survival for our organisation.

As part of Te Anga Whakamua, management engaged

in significant rationalisation of the institution’s property

portfolio. This, combined with careful management of

operating cashflow, ensured that Te Anga Whakamua was

completed without any injection of external funds.

After a one-year hiatus in 2005, the institution implemented

a series of programme development initiatives. These

initiatives focused on reshaping programme development

and review processes and procedures, strategic analysis

of the programme portfolio and medium-term programme

development planning. Completion of the planning process

led to refreshment of a number of existing programmes

and recommencement of programme development.

Our Hui-ä-Kaupapa (the annual National Conference of

Te Wänanga o Aotearoa) was hosted by Waiariki Rohe

during September. The conference was held in conjunction

with the Mata Wänanga Kapa Haka Competition. The

kaupapa of the conference was whakawhanaungatanga,

with its aim being to bring all the kaihoe of our waka

together following an eighteen-month period of enormous

challenge. It is now vitally important to acknowledge these

challenges while moving forward as we continue in our

mission to empower people to be the best they can be.

Graduation is a time when we get together to celebrate

the achievements of our tauira. It is also a time to reflect

on and celebrate our achievements through our work with

our tauira; the success of our tauira is a direct reflection

of our success as kaimahi. This year I have had the good

fortune of talking to dozens of current and former tauira

up and down the country. Many of our graduates are very

thankful for the opportunities provided by Te Wänanga o

Aotearoa and speak passionately of their experiences.

Their körero was positive and created some inspiring

themes. Comments I received include:

Pouhere Report - 5

“I never thought I would ever do any tertiary study before

I went to the Wänanga.”

“My kaiako was the reason the programme was

awesome.”

“The environment was so supportive.”

“I loved learning within a Kaupapa Mäori environment.”

“I met people from backgrounds and cultures who I thought

I would never associate with before. That was great”!

“When I completed my course four years ago, we

established strong relationships in our class. These

relationships remain strong today thanks to the

Wänanga.”

“I was the first person to graduate with anything in my

family.”

“I did my course together with my wife. It was great!”

“My grandmother and my parents attended my graduation

and it was one of the highlights of my life to date!!!”

“If it wasn’t for the Wänanga, I wouldn’t be working at the

Westpac Bank today.”

Our programmes provide the necessary stepping stones

to enable people to cross rivers to reach their goals and

those of their whänau. After being with Te Wänanga o

Aotearoa for thirteen years, I can say without doubt that

our programmes are unique and provide mätauranga

(knowledge) that is distinct from that of any other institution

in this country.

People are talking about the great things Te Wänanga

o Aotearoa has achieved, about our programmes and

about the way we deliver them. People are also talking

about our tauira and the skills they take with them as

they move into the world. The New Zealand Education

Review magazine recently ran an article called ‘Faith in

Education, and not the System’. The article contained

an interview with John Scott, who has been the CEO

of Christchurch Polytechnic and Institute of Technology

(CPIT) for twenty-two years. In the interview, John talks

about the Mahi Ora programme and says:

“It’s a stunning programme. It is an absolutely stunning

programme. I’ve looked at it in some depth and I’ve been

involved in community education for all my career and in

my view it met virtually every criteria for an exceptionally

good community education programme.”

John goes on to talk about Te Wänanga o Aotearoa in

general:

“You’ve got to ask yourself: ‘Why is it that so many people

picked up the programmes that the Wänanga were

running?’ It’s phenomenal! It’s an absolute phenomenon!”

Our purpose is to provide our communities with positive

and transformative educational experiences within a

Mäori cultural learning environment. Our programmes

are empowering, they are positive and they inspire and

encourage those within our communities to reach their full

potential.

The new structure within Te Wänanga o Aotearoa, the

new programmes we are currently developing, renewed

collaboration with other education providers and our staff

development and marketing initiatives are components of

an overall strategy that will enable us to move forward

in a new tertiary environment. The strategy at the centre

of these initiatives is our Quality Improvement Strategy,

which resulted from a visit Craig Coxhead, Shane

Edwards and I made to Leicester College in England. The

experience provided us with a better understanding of the

Tertiary Education Strategy and how we, as a kaupapa

Mäori institution, can work within it.

Our progress depends on people who understand our

organisation, who understand the needs of our tauira,

who are committed to Te Wänanga o Aotearoa and who

are skilled in the work they do. Between us, we can move

forward and continue to do the work we have always done

so well; to help our tauira achieve to their full potential and

to make our world a better place.

Bentham Ohia

Pouhere

6 - Tauira Information

Tauira Information

Overview2006 has presented difficulties for Te Wänanga o Aotearoa

with regard to maintaining enrolment numbers. Disruptions

created by Te Anga Whakamua coupled with declining

enrolments in a number of key high enrolling programmes

that have now reached maturity have impacted on our

performance in this area. Although tauira numbers

declined, the demographics of these tauira remained

relatively unchanged (within 5% across all measures) and

achievement rates continued to be amongst the best in

the country.

This section presents information relating to demographics,

participation and achievement of tauira attending Te

Wänanga o Aotearoa in 2006. Data and statistics are

also presented for 2002 to 2005 to enable comparative

analyses.

Equal Opportunities for TauiraTe Wänanga o Aotearoa is committed to providing equal

opportunities for all tauira with a particular focus on those

who have previously been prevented from participating

in tertiary education as a result of various barriers. As

part of this commitment, Te Wänanga o Aotearoa provides

extensive support services and facilities designed to

provide all tauira with opportunities to actualise their

potential.

Tauira Participation2006 has seen a reduction in the number of tauira

attending Te Wänanga o Aotearoa. This result is largely

due to events that occurred during 2005, which impacted

on our reputation. In addition, our capacity to replace

some of our larger programmes with new high-enrolment

programmes has been limited by the 200 EFTS growth

cap implemented through government policy.

Tauira Numbers

Figures from the 2006 single data return (SDR) show a

26.6% decline on 2005 tauira numbers. The decline on

2004 numbers is 36.4%.

The following table shows tauira numbers drawn from

SDRs for 2002 to 2006.

2002 2003 2004 2005 2006

Number of Tauira 44,158 63,387 66,756 57,843 42,455

EFTS

The decline in tauira numbers in 2006 led to a similar

decline in consumed EFTS of 27.1%.

The following table shows consumed EFTS from SDRs

for 2002 to 2006.

2002 2003 2004 2005 2006

EFTS 20,769 34,280 29,671 27,014 19,670

Tauira DemographicsThe tauira profile of Te Wänanga o Aotearoa reflects

areas of need within the communities served by the

organisation. Since its inception, Te Wänanga o Aotearoa

has consistently attracted high numbers of Mäori, women,

people aged over 30 years and those with low or no

secondary qualifications. 2006 was no exception, with

high numbers of tauira in these demographics continuing

to transform their lives through the programmes offered

by Te Wänanga o Aotearoa.

Age Profile

The age demographic of Te Wänanga o Aotearoa shows

a decline in the number of 18-24 year olds studying at

Te Wänanga o Aotearoa, with an increase in the number

of tauira aged 40 years and over. Much of this trend can

be attributed to the growth of the Te Arataki Manu Körero

programme, with the majority of tauira enrolled on this

programme being over the age of 40 years.

Tauira Information - 7

The following table shows age demographic statistics for

2002 to 2006.

2002 2003 2004 2005 2006

Under 18 years 2% 1% 1% 1% 1%

18 to 24 years 18% 13% 11% 10% 10%

25 to 39 years 44% 44% 43% 41% 40%

40 years plus 36% 42% 45% 48% 49%

Gender Profile

In line with previous years, Te Wänanga o Aotearoa

continued to attract larger numbers of females. Although

a trend of increasing participation by males was evident

between 2002 and 2004, this trend now appears to be

reversing slightly.

The following table shows percentages of males and

females engaging with education at Te Wänanga o

Aotearoa from 2002 to 2006.

2002 2003 2004 2005 2006

Male 26% 30% 33% 32% 30%

Female 74% 70% 67% 68% 70%

Ethnicity Profile

The percentage of tauira Mäori engaging in education at

Te Wänanga o Aotearoa increased during 2006, as did the

percentage of European / Päkehä. Growth in these two

ethnic groups resulted from a decrease in the percentage

of Asian and Pacific Island tauira. Reductions in the

number of Asian tauira resulted from the gradual phasing

out of the Kiwi Ora programme, reversing the growth trend

in this area in previous years. The cause of the decline in

Pacific Island tauira is not clear, but provides a challenge

for Te Wänanga o Aotearoa in the future.

The following table shows ethnicity statistics for 2002

to 2006.

2002 2003 2004 2005 2006

Mäori 77% 59% 45% 45% 48%

European/Päkehä 16% 18% 17% 18% 20%

Asian 1% 16% 28% 27% 24%

Pacific Island 5% 5% 7% 6% 4%

Other 1% 2% 3% 4% 4%

No Secondary Award

Te Wänanga o Aotearoa has, since its inception, been

committed to providing education to those marginalised

by the secondary education system. The popularity of

our programmes with tauira in this group arises from the

extensive tauira support provided and the portfolio of

programmes offered by the organisation.

In 2006, Te Wänanga o Aotearoa continued to attract a

significant proportion of tauira with no secondary award.

The following table shows percentages of tauira engaging

in study with Te Wänanga o Aotearoa between 2002 and

2006 who had no secondary qualifications when they

joined the organisation.

2002 2003 2004 2005 2006

No Secondary Award 54% 46% 38% 38% 37%

Female 74% 70% 67% 68% 70%

Prior Activity Profile

As in previous years, a large proportion of tauira who

enrolled at Te Wänanga o Aotearoa in 2006 were in the

‘non-workforce’ category. This proportion is declining as

increasing numbers of people in the workforce join the

organisation to raise their skill levels. This trend has been

consistent over the last six years with the proportion down

from a high of 53% in 2001.

The following table shows prior activity statistics for tauira

enrolling at Te Wänanga o Aotearoa for 2002 to 2006.

2002 2003 2004 2005 2006

Non-Workforce 46% 41% 37% 35% 32%

Workforce 38% 41% 43% 45% 48%

Tertiary 10% 9% 10% 6% 6%

School 4% 3% 2% 2% 2%

Overseas 2% 6% 7% 6% 6%

Other 0% 0% 1% 6% 6%

Tauira with Disabilities

In line with its commitment to reducing barriers to

education, Te Wänanga o Aotearoa continued to attract

large numbers of tauira with disabilities during 2006. The

following table shows percentages of tauira for 2002 to

2006 who reported having a disability. Data was drawn

from enrolment forms.

2002 2003 2004 2005 2006

Tauira with Disabilities 11% 10% 9% 10% 11%

Note: This table does not include tauira who did not

identify as having a disability on their enrolment form, but

who were supported by Tauira Support Services during

their studies.

8 - Tauira Information

Tauira AchievementTauira at Te Wänanga o Aotearoa continued to perform

well in their studies during 2006. The overall course

retention rate was 78%. A slight decline (1%) in the

course completion rate was recorded in 2006, moving

down from 76% in 2005 to 75% in 2006. The rate is still an

improvement on the 2004 rate.

The following table shows retention and completion

statistics for the 2002 to 2006 period.

2002 2003 2004 2005 2006

Course Retention Rate 85.4% 84.1% 83.1% 82% 74%

Course Completion Rate 67.0% 66.1% 74.1% 76% 70%

Graduation Rate* 41% 47% 59% 60% 53%

* Graduation Rate = The number of tauira who completed

a programme of study as a percentage of all tauira who

enrolled to complete a programme in that academic year.

Employee Information - 9

Employee Information

In accordance with its kaupapa, Te Wänanga o Aotearoa

strives to be a good employer. As part of this commitment,

and in accord with the EEO policy of the organisation, Te

Wänanga o Aotearoa is inclusive of all people, regardless

of culture, ethnicity, age, gender, political opinion or

religious persuasion.

This section presents demographic statistics for employees

working for Te Wänanga o Aotearoa between 2002 and

2006.

Employee NumbersFull-time equivalent employee (FTE) numbers decreased

markedly (28%) during 2006. This decline was largely as a

result of Te Anga Whakamua (the Te Wänanga o Aotearoa

organisational restructure). This reduction has returned

staffing levels approximately to those during 2002.

The following table shows numbers of FTEs for 2002 to

2006. Data for 2006 are drawn from the SDR.

2002 2003 2004 2005 2006

FTEs 950 1,232 1,432 1,393 1002

Gender ProfileThe employee gender ratio remained unchanged in 2006

and has been relatively constant over the past five years.

The current employee gender ratio closely matches the

tauira gender ratio.

The following table shows the percentage of males and

females working for the organisation from 2002 to 2006.

2002 2003 2004 2005 2006

Male 42% 38% 34% 37% 37%

Female 58% 62% 66% 63% 63%

Ethnicity ProfileThe number of Mäori working at Te Wänanga o Aotearoa

fell slightly during 2006, but remained high at 64%. As a

Mäori organisation, this ensures strong connections are

maintained with iwi and with the communities predominantly

served by the organisation. These connections also

provide day-to-day input from key stakeholders into

activities occurring within the organisation.

The following table shows ethnicity statistics for the 2002

to 2006 period.

2002 2003 2004 2005 2006

NZ Mäori 42% 44% 55% 66% 64%

European / Päkehä 5% 6% 8% 11% 10%

Pacific Island 3% 4% 5% 6% 5%

Asian 1% 1% 2% 3% 3%

Other 1% 2% 2% 3% 4%

Not Specified 48% 43% 28% 11% 14%

10 - Statement of Service Performance

1.0 Institution

1.1 Contribution to the Tertiary Education System

Whainga 1.1.1 The programme portfolio of Te Wänanga o Aotearoa will be strategically relevant in

accordance with the core role of a wänanga and TEC (Tertiary Education Commission)

guidelines.

1.1.1.1 Programme provision is in alignment with the TES (Tertiary Education Strategy 2002/07)

and STEP (Statement of Tertiary Education Priorities 2005/07).

Performance Measure Progress

Programme assessment conducted and

action plan implemented.

Programme portfolio review completed. All

programmes currently align with TES, STEP

and Te Wänanga o Aotearoa approved

Profile.

Programme elements adjusted to ensure

alignment with wänanga philosophy.

1.1.1.2 Cultural, social, environmental and economic aspirations of Mäori are supported.


Research completed and strategy

developed.

Strategy and planning under development

for stakeholder consultation at programme,

delivery site, regional and national level.

Collaborative relationships with iwi

education authorities under development to

guide research into education opportunities

that meet the economic, cultural,

environmental and social aspirations of iwi.

1.1.1.3 Graduates are provided with strong foundation and generic skills that enable stair-casing

within the institution or to other TEIs (Tertiary Education Institution).


At least 20% of tauira (students) pathway to

further study.

27% of tauira enrolled with Te Wänanga

o Aotearoa in 2006 had pathwayed into

further education. Graduate Survey

indicates a further 20% of graduates

enrolled at other institutions.

Statement of Service Performance

Statement of Service Performance - 11

Whainga 1.1.2 Te Wänanga o Aotearoa will ensure its distinctive roles and responsibilities are reflected in

strategic and business planning.

1.1.2.1 A needs analysis of young Mäori educational aspirations and learning experiences is

conducted.


Needs analysis designed, implemented and

reported.

Needs analysis focus groups held for all

groups, including young Mäori as part of the

Prospectus 2006 development.

Graduate Survey queried graduates on

interest in future fields of study. Further

analysis of results is necessary.

1.1.2.2 The definition of wänanga under the Education Act, 1989 is met by Te Wänanga o

Aotearoa.


Strategy developed to collaborate with

Government to develop and define the role

of wänanga and identify and characterise

mätauranga Mäori.

Research projects initiated to further refine

Kaupapa Wänanga, a comprehensive

approach to the distinctive contribution of Te

Wänanga o Aotearoa.

Response to the TEC’s request for input into

the ‘Distinctive Contribution of Wänanga’

submitted.

Whainga 1.1.3 Te Wänanga o Aotearoa will ensure promotional and marketing material effectively attracts

our core target group.

1.1.3.1 Efficacy of marketing and promotional material is assessed regularly.


Marketing and promotional material revised

to reflect results from assessment model.

Marketing and promotional assessment

model developed and implemented.

1.1.3.2 Promotional and marketing activities are informed by contract research and other surveys

regarding target audiences.


Target-specific research conducted and

findings used to inform promotional and

marketing activities.

All marketing proposals include targeted

research that considers audience

characteristics, motivation, potential barriers

and preferred media type. This research

informs related promotional and marketing

activity.


Whainga 1.1.4 Te Wänanga o Aotearoa will contribute to the development of Mäori / indigenous cultural

standards and criteria for indigenous programme development.

1.1.4.1 Research and planning for the development of Mäori cultural standards and criteria are

conducted.


Recommendations, hui and consultation

held. Agreement reached on framework.

Kaupapa Wänanga project initiated to develop

Mäori cultural standards and criteria for Te

Wänanga o Aotearoa. Project will involve

stakeholder hui and consultation to achieve a

consistent approach to tikanga Wänanga.

1.1.4.2 Quality assurance research is completed in conjunction with Te Tau Ihu o ngä Wänanga.


Mäori quality assurance framework

developed and pilot Mäori internal audit

model implemented.

Mäori Quality Assurance framework project initiated.

Informal discussions held with senior staff

to initiate generation of ideas. Mäori audit

model working group initiated and pilot to be

implemented in 2007.

1.2 Treaty of Waitangi

Whainga 1.2.1 Te Wänanga o Aotearoa will be a Mäori-led organisation underpinned by Mäori values.

1.2.1.1 Tailored tikanga Mäori advisory workshops are included in the induction process.


Training programme developed and rolled

out to existing and new staff.

New staff induction programme, including

Tikanga Mäori component, developed and

implemented.

Te Pünaha Arataki (new Employee Induction

Handbook), including ‘Customary Practices’

section, printed and implemented.

1.2.1.2 All staff are encouraged to participate in learning Te Reo me ngä Tikanga Mäori.


Staff encouraged to make a daily

commitment.

All staff encouraged to attend karakia and pöwhiri.

‘Te Reo Mäori for the Office’ programme developed

to offer to all staff in 2007.

Treaty of Waitangi programme under development

for delivery to tutorial staff in 2007.


Whainga 1.2.2 Te Wänanga o Aotearoa will maintain strong numbers of Mäori tauira, staff and Te Mana

Whakahaere (Council) members and continue to support progress in their respective roles.

1.2.2.1 Appropriate qualifications necessary for the effective performance of roles are held by Mäori

and all other staff.


Staff capability re-assessed after

organisational restructure.

Te Anga Whakamua restructure (2006)

utilised a competency based approach

to ensure all staff were employed or

redeployed based on their qualifications and

skills.

Formal professional development plans,

including identification of training pathways,

incorporated into the annual performance

review process with quarterly reviews

against plans.

Whainga 1.2.3 Te Wänanga o Aotearoa will provide pathways for Mäori to access higher-level qualifications

using a Mäori approach to life-long learning with programmes across all curriculum areas.

1.2.3.1 Internal pathways for young Mäori tauira (25 years or under) are defined and / or provided.


28% of tauira follow a pathway to further

education.

33% of young Mäori tauira enrolled in 2006

had pathwayed into further education at Te


1.2.3.2 Programme pathways to higher learning for Mäori are provided.


28%+ of tauira follow a pathway to higher

education.

22% of Mäori tauira enrolled in 2006 had

pathwayed into higher education at Te


1.2.3.3 Mätauranga Mäori is used as a base for all programmes.


Framework for assessing mätauranga

Mäori content of programmes developed.

Mätauranga Mäori assessment embedded

in academic approval process.

Assessment of mätauranga Mäori

programme content embedded in

the academic approval process. New

programme curriculum document template

includes sections relating to mätauranga

Maori to be completed before approval by

Te Poari Mätauranga (Academic Board).


Whainga 1.2.4 Te Wänanga o Aotearoa will support Mäori development through partnerships with Mäori

communities.

1.2.4.1 Iwi are assisted to advance their aspirations with the Crown.


Scoping study completed to ascertain iwi

aspirations regarding Mäori development

through education.

Strategy and planning under development

for stakeholder consultation at programme,

delivery site, regional and national level.

Contracts for collaborative relationships

with iwi education authorities continue

to be negotiated to provide education

opportunities that meet aspirations of iwi.

Kaumätua engagement groups (Kaumätua

Koeke) formed to formalise consultation at a

regional level, and to encourage engagement

by kaumätua in day-to-day operations at sites.

1.2.4.2 Education programmes are offered to assist iwi to manage financial and non-financial

resources.


Scoping study completed to identify

skills gaps. Existing programme portfolio

reviewed to identify gaps against the

scoping study.

Target reviewed and postponed pending

further consultation with iwi education

authorities.

Whainga 1.2.5 Te Wänanga o Aotearoa will be an accountable and responsible Treaty of Waitangi partner.

1.2.5.1 The specific role of Te Wänanga o Aotearoa in relation to other TEIs is clearly defined in a

partnership agreement with the Ministry of Education.


Treaty partner relationship document drafted

and signed.

Te Wänanga o Aotearoa / TEC Relationship

Agreement drafted. Awaiting signoff by TEC.

Te Wänanga o Aotearoa is awaiting Crown’s

response to Waitangi Tribunal Claim 1298

recommendations.


1.2.5.2 Te Wänanga o Aotearoa is represented on key national education working parties.


National education working party

representation completed and implemented.

Fortnightly interagency meetings

established between Te Wänanga o

Aotearoa, TEC, TAMU and NZQA.

Te Wänanga o Aotearoa represented at

inter-wänanga hui (a forum for the three

wänanga to discuss the tertiary reforms

and their affect on wänanga education in

Aotearoa New Zealand).

Te Kaihautü o te Uepü o Marautanga

(Director Curriculum Development) is on the

Peer Review Panel of the PBRF Committee

for Mäori Knowledge and Development.

Whainga 1.2.6 Te Wänanga o Aotearoa will develop, maintain and strengthen Kaupapa Mäori

programmes.

1.2.6.1 Pathways to employment and higher learning are developed through the curriculum area of

Mäori studies.


Diploma in Te Ara Reo Mäori monitored and

tracked. Development of the Bachelor of Te

Reo Mäori finalised. Te Tohu Mätauranga

certificate and diploma reviewed. Option for

mixed-mode delivery of Mauri Ora explored.

Te Panekiretanga oTe Reo programmes for

QAB or QVA prepared.

Diploma in Te Ara Reo Mäori completed and

approved by NZQA.

Bachelor degree in Te Reo Mäori has

been withdrawn. Tauira now pathway to

programmes developed by other wänanga.

Te Tohu Mätauranga certificate and

diploma review completed and changes

implemented.

Mauri Ora delivery remains home-based.

Te Panekiretanga considered to be beyond

the scope NZQA approval processes.

Programme not submitted to NZQA.


1.2.6.2 Te Arataki Manu Korero programme is developed and shared with other iwi.


Te Arawa programme monitored and

tracked. Programme for Tauranga Moana

and other iwi developed.

Te Arataki Manu Körero run successfully in

Te Arawa and Tauranga Moana with support

of tangata whenua.

Programme changes made at certificate

and diploma level for wider delivery with

improvements to make possible wider

inclusion of local content.

Requests received from Auckland, Far

North, South Island, Wellington and Bay of

Plenty regions. Interest also received from

whänau Pasifika.

1.3 Quality

Whainga 1.3.1 Te Wänanga o Aotearoa will be a leader within the sector through its innovative approach to

quality management.

1.3.1.1 A new structure and associated change management strategies are implemented.


Relationships and interactions are

understood and working in practice.

New organisational structure finalised and

implemented in 2006. The new structure is

now in operation.

Procedure re-development project

will further enhance understanding of

relationships and interactions. Procedures

to be implemented in 2007.

1.3.1.2 Staff development strategies to improve adherence to external and internal quality guidelines

are developed and implemented.


New staff development strategies in place. Performance review strategy implemented.

Post-restructure performance reviews

conducted in late 2006 leading to

development of institution-wide professional

development programmes.


1.3.1.3 Accurate, timely and up to date information that meets external and internal requirements is

provided by information systems.


New data warehouse in place. Institution-wide database alignment and

data quality improvement project initiated

through Quality Reinvestment Fund

application.

Whainga 1.3.2 Te Wänanga o Aotearoa will build a culture of quality across the organisation.

1.3.2.1 A ‘best practice’ Quality Management System (QMS), consistent with external requirements

and the kaupapa, is developed and implemented.


New QMS implemented. Te Kaupapa Kounga (QMS Manual)

developed and approved by Te Mana

Whakahaere. Te Kaupapa Kounga to be

implemented in 2007.

1.3.2.2 Audit systems that measure compliance and facilitate continuous improvement are

developed.


Outcomes of internal and external audits are

improved.

Quality of new programme submission to

NZQA is improved.

NZQA audit of work completed in 2006

resulted in one corrective action and one

recommendation.

Programme development processes

have been reviewed however no new

programmes were submitted to NZQA in

2006.

1.3.2.3 Performance indicator tables are implemented.


Performance monitoring and reporting

systems [league tables] are reviewed and

improved. An action plan to respond to any

issues is developed.

Strategic Planning and Performance

Framework project initiated. Prototype

of consolidated enrolment database

completed. Data warehousing, data

cleansing and data matching projects

initiated. Quality Reinvestment Fund

application completed to access funding.


1.3.2.4 Te Wänanga o Aotearoa ‘internal customer’ surveying policies and procedures are established

and implemented.


Surveys are used to inform continuous

improvement.

An organisational climate survey, Wänanga

Ora, has been conducted to assess staff

opinion. The survey sets a baseline for

future annual assessments and to track

organisational trends. Survey results

collated and reported to management to

inform decision-making.

1.3.2.5 Kaihautü (Directors) are appointed as part of Kökiri Whakamua restructure.


Quality review undertaken and

implementation plans designed, developed

and actioned.

Review implemented and findings actioned.

Six out of seven Kaihautü were appointed

during 2006 as part of the Te Anga

Whakamua restructure. Crown Managers

have undertaken responsibility for financial

management since the 2nd quarter of 2005.

Whainga 1.3.3 Te Wänanga o Aotearoa will maintain effective academic quality assurance systems.

1.3.3.1 Robust Te Poari Mätauranga quality assurance processes for programme development,

redevelopment and monitoring are developed and implemented.


New processes fully implemented. New processes established and implemented.

Te Ara Waihanga Marau (Programme

Development Pathway and Category of Changes

Guidelines) created to ensure robust processes

and procedures are adopted for programme

development.

Te Puna Waihanga (Programme Development

Committee) established to ensure programme

developments and redevelopments meet internal

and external requirements.

Regular monitoring reports received by Te Poari

Mätauranga regarding programme reviews, tauira

surveys, moderation activity and programme

allocations.

Te Poari Mätauranga receive documentation

from Te Puna Waihanga to approve programme

developments and redevelopments.


1.3.3.2 Stakeholder consultation regarding quality of programmes is used to inform programme

review.


Quality information is collected from

stakeholders through Kömiti Äwhina.

Information is embedded in programme

review.

Kömiti Äwhina (programme consultation groups)

reviewed in late 2006. From 2007, all programmes

will have Kömiti Äwhina as part of continued

stakeholder involvement and quality improvement.

1.3.3.3 Programme portfolio of Te Wänanga o Aotearoa is of high quality and is relevant.


Findings of the Quality and Relevance

Review used to improve programmes.

Annual quality and relevance review

conducted.

TEC Assessment of Strategic Relevance

(ASR) process superseded the A1J1 Review

strategy. Agreement with TEC was reached

to incorporate quality and relevance criteria

into programme development and programme

review processes.

Two programme review reports have

been submitted and approved by Te Poari

Mätauranga. A further seven programme

reviews were conducted and are pending

formal reports to Te Poari Mätauranga.

1.3.3.4 Review of the delivery mechanisms for all programmes is conducted to ensure quality.


International industry scan of distance

delivery educational institutions is conducted

to ascertain quality outcome benchmarks.

Programme delivery mechanism is adjusted

to accommodate findings.

Distance delivery review conducted.

Recommendations to be implemented in

2007.

1.3.3.5 The self directed learning component meets learners’ needs and ensures quality

outcomes.


Review completed and recommendations

developed and implemented.

Implementation is monitored and tracked.

Self-directed learning review conducted.

Recommendations to be implemented in

2007.

1.3.3.6 Tauira survey policies and procedures are re-developed.


Surveys used to inform continuous

improvement.

Tauira surveys conducted in Semester

A and B. Survey results forwarded to Te

Uepü Whakaü Kounga Ako and Te Uepü

Marautanga for consideration.


1.4 Capability

Whainga 1.4.1 Te Wänanga o Aotearoa will assess and review capability to deliver quality educational

services and research.

1.4.1.1 Adherence to QMS is embedded in employment contracts and measured in employee

performance reviews.


Adherence to QMS monitored in employee

performance appraisals.

QMS is addressed in individual and

collective employment contracts.

In specific cases where individuals are to

achieve set standards, these have been

embedded in employment contracts.

1.4.1.2 New programmes are enhanced by appropriate resourcing and staff.


Bi-annual monitoring and tracking is

conducted.

New programme proposals are considered

and approved by Te Puna Waihanga and Te

Poari Mätauranga.

Monitoring and tracking was not completed

in 2006. In 2007, an evaluative report

process will be initiated by Te Poari

Mätauranga that requires quarterly reports

regarding programme approval and

accreditation. Reports will contain:

• a summary of activities;

• key findings;

• identification of quality performance;

• identification of risk; and

• actions to mitigate risk.

1.4.1.3 An innovation pool is implemented to develop and pilot innovative ideas and thinking.


Process for developing and piloting best

practice established and implemented.

Programme management and development

expertise centralised as part of Te Anga

Whakamua to increase quality of programme

design, content and delivery. Quality gains

have been achieved through determination

of best wänanga practice and innovative

thinking to reframe programme development

processes. Improvements will be ongoing.


1.4.1.4 Business units are compliant with policies and procedures.


Audit programme implemented. Action

plans developed for non-compliant units.

Non-compliant units reviewed. 2007 audit

programme developed.

2006 annual audit plan created. Disruption

caused by Te Anga Whakamua prevented

all planned 2006 audits being completed.

2005 residual non-compliances have been

identified and transferred to the 2007 audit

plan.

1.4.1.5 An internal Mäori Advisory Group is implemented to provide and advance leadership in, and

ensure adherence to, tikanga and ähuatanga Mäori in all areas.


Terms of reference developed.

Representatives identified and meetings

initiated.

Terms of reference developed and key position

objectives created. Mängai Matua (Senior

Cultural Ambassador) and Mängai Kaupapa

(Cultural Ambassador) positions created and

filled.

Whainga 1.4.2 Te Wänanga o Aotearoa will build in-house capability in areas of core business.

1.4.2.1 The intellectual property (IP) of Te Wänanga o Aotearoa is protected.


Policy training sessions attended by all staff.

All IP detailed in a register.

IP policy under development. IP survey

conducted. Database under development to

store IP information. IP training sessions to

follow in 2007.

1.4.2.2 Capability to deliver high-quality educational services and research is built and maintained.


Action plan implemented, monitored and

tracked.

Research unit structure reviewed and

merged with Te Kähui Rangahau (Research

Ethics Committee).

Research strategy under development to

identify research priorities and to build and

maintain high-quality research capability.


1.5 Collaboration and Rationalisation

Whainga 1.5.1 Te Wänanga o Aotearoa will enter into strategic alliances that provide a significant contribution

to the kaupapa.

1.5.1.1 Active participation in World Indigenous Nations Higher Education Consortium (WINHEC)

is maintained.


Membership is maintained. Conferences are

attended and contributed to.

Te Wänanga o Aotearoa represented by

Trevor Moeke at the last WINHEC Annual

General Meeting in Minnesota, USA, 2006.

1.5.1.2 Sub-contracting arrangements are congruent with core functions and activities.


Strategy monitored and tracked. Sub-contracting review completed detailing

areas for improvement. An action plan has

been developed for consultation with TEC.

Whainga 1.5.2 Te Wänanga o Aotearoa will collaborate and cooperate with stakeholders in the development

of programmes.

1.5.2.1 New relationships with indigenous peoples and other global communities are maintained

and further developed.


Relationships from World Indigenous

Peoples Conference on Education (WIPCE)

2005 conference developed, and mutually

beneficial strategies for future relationships

explored. Strategies, if any, implemented,

tracked and monitored.

Relationships developed with the Americans

for Indian Opportunity (AIO) organisation.

Bentham Ohia (CEO of Te Wänanga o

Aotearoa) is a member of the Board and

attends annual meetings. Strategies include

establishing a tauira exchange programme,

research into the similarities between Mäori

and American Indian culture and relation-

ship-building visits between Te Wänanga o

Aotearoa and the Jemez American Indian

Tribe.

1.5.2.2 Strategic relationships with schools in the regions are maintained and further developed.


Recommendations from strategies for

improvement implemented.

Relationships with schools initiated at a

regional level. Discussions with schools

focus on setting appropriate pathways into

Te Wänanga o Aotearoa programmes.


Whainga 1.5.3 Te Wänanga o Aotearoa will explore opportunities for pathway and stair-casing arrangement

with other TEIs.

1.5.3.1 Regional TEIs are engaged at regional campus level.


Collaborative partners identified. Alignment

of study pathways investigated. Client

markets defined.

Network of Provision project completed.

Project examined territorial overlaps

between TEIs and identified programme

delivery and curriculum overlaps. The

project will inform the collaboration process

with other TEIs to explore pathway and

stair-casing arrangements.

Framework developed to establish

relationship characteristics.

1.5.3.2 Tauira are informed of pathway and stair-casing opportunities within and across TEIs.


Pathway and stair-casing opportunities

mapped. Map presented to tauira.

Discussions held with other wänanga

regarding sharing of degree pathways

between wänanga. Wänanga prospectus,

Te Ara Wänanga, created collaboratively by

the three wänanga (Te Ara Wänanga).

2007 Te Wänanga o Aotearoa prospectus

created highlighting pathways within fields

and knowledge areas.

1.5.3.3 A wide range of programme-relevant industry stakeholders are engaged by curriculum

staff.


Current industry hui strategy reviewed

and report created. Strategies to enhance

and improve industry hui outcomes are

developed. Mutually beneficial relationships

for the provision of education negotiated.

Industry hui and collaboration strategy

framework report created. Arrangements

to deliver education to union members

negotiated as part of a commitment to

industry education initiatives.

Consultative hui with ITOs held to

re-establish contact and update ITOs on

recent developments.


2.0 Governance and Management

2.1 Governance

Whainga 2.1.1 The organisational structure gives effect to the Charter and strategic direction.

2.1.1.1 The Kökiri Whakamua re-structure is aligned with the Charter and strategic direction.


Structure reviewed for alignment and

effectiveness. Adjustment to organisational

structure informed by the review.

Kökiri Whakamua process completed and

findings used to inform development of the

new structure implemented through the Te

Anga Whakamua process.

2.1.1.2 Non-teaching activities are aligned with expectations of how a public institution should

operate and function.


Non-teaching activities reviewed. Activities

re-aligned to meet expectations.

A full review of non-teaching activities is

scheduled in the 2007 audit plan.

Whainga 2.1.2 Te Wänanga o Aotearoa will manage changing level of activity in accordance with best

management practice.

2.1.2.1 New initiatives are supported by business plans and contribute to the strategic direction of

Te Wänanga o Aotearoa as outlined in the Charter.


Internal audit confirmation that new

initiatives are supported by business plans.

Internal audits of Governance and

Management, Programme Development,

and Review and Delivery scheduled for

2007 will monitor engagement in business

planning where substantial funding is

requested.

2.1.2.2 Initiatives are supported by best financial management practice.


Implementation of plans monitored and

tracked.

Action and risk management plan

recommendations regarding best financial

practice have been made and led to the

implementation of:

• a new electronic requisitioning system;

• a new Chart of Accounts; and

• consolidation of property portfolio.

These projects are monitored and will be

reviewed annually.


2.1.2.3 Activities of Te Wänanga o Aotearoa are based on core educational delivery and research

in Aotearoa.


Recommendations implemented. Educational activities of Te Wänanga o

Aotearoa are subject to regular review.

In 2006 the “Delivery Mechanism and

Self Directed Learning Review” made

recommendations regarding ongoing

strategy and implementation possibilities.

Recommendations will be implemented in

2007.

Quality Reinvestment Fund research

projects initiated to further explore the

nature of Kaupapa Mäori research with

particular reference to the practices of Te


Whainga 2.1.3 Te Wänanga o Aotearoa will comply with legislation and its goals and objectives through the

implementation of a strategic reporting framework.

2.1.3.1 Business planning procedures are supported by a strategic reporting framework.


Framework developed and

implemented.

Strategic Planning and Performance Framework

Project initiated. Framework to be implemented

by November 2007.

Whainga 2.1.4 Te Wänanga o Aotearoa will ensure strategic planning is integrated with operational systems,

processes and controls.

2.1.4.1 Te Wänanga o Aotearoa operations are aligned to the Strategic Plan, Charter and Profile.


Business unit plans and business

recovery plans monitored and reviewed.

Business plans for each uepü constructed

using terms of reference that relate directly to

the organisational strategic plan. Monitoring

ongoing. Review to be conducted at end of 2007.

Whainga 2.1.5 Te Mana Whakahaere will receive high-quality analysis and advice from sub-committees

and management to improve the performance of the organisation.


2.1.5.1 Reports from sub-committees and management to Te Mana Whakahaere are timely,

informative and complete.


Policy and format for reporting to Te

Mana Whakahaere established.

Format established and monthly reports received

by Te Mana Whakahaere from sub-committees

and the Pouhere.

Strategic Planning and Performance Framework

Project initiated. Framework to be implemented

by November 2007.

Whainga 2.1.6 Te Wänanga o Aotearoa will define clear roles and accountabilities within and between Te

Mana Whakahaere and the Pouhere.

2.1.6.1 Communication channels between Te Mana Whakahaere and Pouhere are defined and

operate efficiently.


Reporting and communication reviewed

and monitored.

Communication channels reviewed and established.

Monthly reports received by Te Mana Whakahaere

from the Pouhere that include status of operations,

potential risks and strategic considerations.

2.1.6.2 Regular performance appraisals of the Pouhere are conducted.


Half-yearly and annual performance reviews

actioned.

Executive Committee created to manage

Pouhere performance reviews. Executive

Committee terms of reference created.

First six-monthly performance appraisal of

the Pouhere conducted by the committee.

Whainga 2.1.7 Te Wänanga o Aotearoa will have robust processes and capability within governance and

management structures.

2.1.7.1 The composition of Te Mana Whakahaere reflects the constitution, mission and Kaupapa of

Te Wänanga o Aotearoa.


Appointments made as required. All appointments made in alignment with the

constitution of Te Mana Whakahaere and

the mission and kaupapa of Te Wänanga o

Aotearoa.


2.1.7.2 Sub-committees of Te Mana Whakahaere perform optimally and meet requirements.


Sub-committees terms of references

reviewed and amended as required.

Sub-committee membership reviewed and

appointments made as required.

Review of the terms of reference and

sub-committee membership conducted.

Review findings passed to Te Mana

Whakahaere in Feb 2007. Action to be

taken where appropriate.

2.2 Staff

Whainga 2.2.1 Te Wänanga o Aotearoa will operate a performance management system that ensures

managers are accountable for achieving strategic planning objectives.

2.2.1.1 Management and staff create goals in line with strategic objectives.


Model operationalised. Key performance indicators (KPIs) are included

in uepü and wähanga business plans. Te

Wänanga o Aotearoa KPIs are aligned with

TES expectations in the Profile 2007-09.

Performance objectives listed in business plans

tied to strategic goals through the performance

review process.

Whainga 2.2.2 Te Wänanga o Aotearoa will employ succession-planning tools to ensure the long-term

success of the organisation and its employees.

2.2.2.1 An employee succession planning programme is developed.


Model operationalised for academic staff.

Model developed for non-academic staff.

Initial planning phase for succession

planning programme and capability

improvement model commenced in 2006.

Kaiako (academic staff) capability

improvement project initiated.

Kaihautü (non-academic) skills gap analysis

for model completed and professional

development plans formulated.

Tier 2 manager (non-academic) skills gap

analysis and succession planning to be

completed 2007.


Whainga 2.2.3 Te Wänanga o Aotearoa will recognise and reward employees for their contribution to the

success of the organisation.

2.2.3.1 Salaries, benefits and performance reward systems are reviewed.


Systems evaluated and reviewed. Collective staff salaries reviewed as part

of the collective employment agreement

negotiation process and Te Anga

Whakamua. Non-collective staff salaries

reviewed as part of Te Anga Whakamua.

Benefits and rewards reviewed as part of Te

Anga Whakamua and applied consistently

to all staff.

Whainga 2.2.4 Te Wänanga o Aotearoa will develop the organisation’s training and professional development

systems.

2.2.4.1 The kaupapa, vision and history of Te Wänanga o Aotearoa are included in induction training

for new employees.


Induction training implemented for all new

staff. Training delivered to existing staff.

Te Pünaha Arataki - Induction Handbook,

including vision, Kaupapa and history,

developed and approved for staff induction

to Te Wänanga o Aotearoa.

Induction training of new staff will

commence in early 2007. Schedule

prepared for ‘induction training’ for existing

staff. Implementation will be completed in

2007.

2.2.4.2 Employees are supported to undertake formal education at degree, masters or doctorate

level.


25% of staff either hold a degree or are

working towards holding a degree.

27% of staff either hold a degree or are

working towards holding a degree.


2.2.4.3 Professional development plans (PDPs) for all employees are aligned with the goals of Te



Model implemented and operational. PDP implementation plan developed. All

managers to complete performance reviews

for their staff by end of February 2007.

Performance reviews to be collated by

Human Resource Department in order to

identify professional development plans for

all staff. PDPs will be completed by the end

of March 2007.

2.2.4.4 Staff satisfaction is monitored and tracked.


Feedback from staff satisfaction survey

used to improve satisfaction with internal

customer service. Levels of staff

satisfaction improved.

Wänanga Ora survey undertaken in 2006.

Survey findings will be collated to establish

a baseline of staff satisfaction levels. Action

plans will be drafted by Kaihautü by end of

April 2007. Wänanga Ora will be repeated

annually to track improvement.

Whainga 2.2.5 Te Wänanga o Aotearoa will establish a strong and capable senior management group

through the Kökiri Whakamua project.

2.2.5.1 The mission and kaupapa of Te Wänanga o Aotearoa are reflected in the composition of

senior management.


Annual performance reviews of

senior management conducted.

Recommendations of review implemented.

Skills gaps analysis of Kaihautü completed

in late 2006. Performance reviews will be

completed and assessments reviewed by

March 2007.

Senior managers will undergo skills gaps

analysis and assessment before the end of

2007.

2.2.5.2 A management mentor scheme is established.


Mentors identified and assigned. A management mentor scheme will be

developed during 2007 once performance

reviews and professional development plans

have been completed.


Whainga 2.2.6 Te Wänanga o Aotearoa will attract quality staff who have the potential to succeed within the

organisation and the tertiary education sector.

2.2.6.1 A comprehensive recruitment strategy is developed and implemented.


Recruitment strategy redesigned and

implemented.

Comprehensive, competency-based

recruitment strategy developed for Te

Anga Whakamua. Assessment and testing

processes re-developed and implemented.

2.2.6.2 An Equal Employment Opportunity (EEO) policy is developed in line with the mission and

kaupapa of Te Wänanga o Aotearoa and is implemented and maintained.


EEO policy implemented. EEO policy developed, approved and

published in Te Kaupapa Kounga.

Procedures relating to the EEO Policy

will be approved during April 2007.

Implementation of EEO policy will follow

approval of procedures.

3.0 Portfolio

3.1 Scope of Activities

Whainga 3.1.1 The programme portfolio of Te Wänanga o Aotearoa will be strategically relevant and align

with its core activities.

3.1.1.1 A strategic relevance review of all programmes is conducted and the portfolio of provision is

congruent with the Charter of Te Wänanga o Aotearoa.


Programme provision schedule reviewed

and adjusted if appropriate.

Portfolio of provision review completed

as part of the development of the Profile

2007-2009.

Whainga 3.1.2 Te Wänanga o Aotearoa will offer programmes within its core capabilities and distinctive

contribution.


3.1.2.1 A range of foundation and introductory learning programmes (Levels 1-4) are provided for

tauira.


At least one new programme added. New programme development process

extensively revised. As a result, no new

programmes at foundation learning were

approved in 2006.

3.1.2.2 Programmes are offered with on-line, distributed and other interactive methodologies.


Programmes that offer on-line, distributed

and other interactive methodologies

reviewed and consolidated.

Work on this indicator was not completed

due to organisational restructuring in 2006.

This activity has been deferred to 2008.

4.0 Academic

4.1 Teaching

Whainga 4.1.1 Te Wänanga o Aotearoa will underpin teaching practices with Mäori epistemologies and

values.

4.1.1.1 Training and development in Mäori pedagogy is provided for kaiako.


Teaching staff training needs analysis

conducted. Training modules designed and

developed.

Kaiako Capability and Improvement Project

initiated. NZ Education Consultants

contracted to revise tutorial performance

and teaching standards:

• Phase 1: Identification of teaching

standards, skills and qualifications.

• Phase 2: Identification of core kaiako skill

and qualification requirements.

• Phase 3: Requirements are matched with

current kaiako skills and qualifications.

Results will be forwarded to Human

Resource Development for creation of

professional development plans.


4.1.1.2 Mäori preferred ways of teaching and learning are utilised by kaiako to enhance learning.


Baseline established for use of Mäori

epistemologies and values in teaching

practice.

Kaupapa Wänanga project initiated to

draw together relationships between

organisational values, education and

teaching literacy with cultural literacy, and

literacy of critical thinking. Project will lead

to certification of kaiako through training

processes that:

remain Mäori-centred;•

are connected to its communities;•

are inclusive of all peoples;•

are dedicated to removing barriers to •

education by taking learning to the people,

demystifying it, and reducing the cost; and

develop new more representative teaching •

methodologies.

Whainga 4.1.2 Te Wänanga o Aotearoa will build teaching capability through training and professional

development.

4.1.2.1 A skills and qualification evaluation for kaiako and kaitiaki is implemented.


Skills and qualification evaluation

implemented.


to assess skills and qualifications initiated.

4.1.2.2 A training programme to address capability gaps and needs is developed and

implemented.


Ongoing implementation Kaiako Capability and Improvement Project

to assess capability gaps and needs

initiated.

4.1.2.3 Internal teaching and development is underpinned by Mäori pedagogy.


Baseline established. Module designed and

developed.

Kaupapa Wänanga project initiated to

draw together relationships between

organisational values, education and

teaching literacy with cultural literacy.

Kaupapa Wänanga will establish baselines

and provide the foundation for module

design and development in 2007.


Whainga 4.1.3 Te Wänanga o Aotearoa will provide appropriate mechanisms to support teaching staff.

4.1.3.1 The efficacy of the teaching staff support mechanism is reviewed.


Support mechanisms identified and

mechanism-specific evaluations created.

Support mechanisms identified. Regional

Academic Advisors employed to support

teaching staff. Additional teaching staff

support includes:

• tauira support process and procedure

training;

• ongoing consultation and review to

facilitate continuous improvement; and

• provision of tauira support resources.

A rohe-specific teaching staff training

schedule is set to provide training in 2007.

4.1.3.2 Retention, completion and graduation rates for all learners are maintained.


Retention Rate: 80%+

Completion Rate: 50%+

Graduation Rate: 36%

Rates achieved as follows:

• Retention Rate: 74%

• Completion Rate: 70%

• Graduation Rate: 53%

Work continues to improve achievement

rates.

Whainga 4.1.4 Te Wänanga o Aotearoa will monitor staff performance through regular audit of teaching

practices and through tauira satisfaction surveys.

4.1.4.1 A system for review of teaching practice capability is developed.


Completion and application of professional

development monitored and tracked.


to establish teaching practice benchmarks

and provide professional development

pathway.

Human Resources Department tracks

professional development progress.


4.1.4.2 Tauira evaluation / satisfaction data is used to inform teaching practice capability.


Kaiako-specific evaluation form designed

and developed.

Existing end-of-year Tauira Evaluation

Surveys completed by tauira. Results

distributed to Regional Academic Managers

to develop action plans.

Project initiated to re-develop Tauira

Evaluation Survey. New tauira evaluation

survey form will be implemented in April

2007.

4.1.4.3 Assessment of teaching practice is used to inform staff performance appraisals.


Job description-specific performance

appraisal system developed.

Position descriptions written. Appraisal

system developed to match staff

performance against key position objectives.

Whainga 4.1.5 Te Wänanga o Aotearoa will ensure teaching practices are informed by stakeholders in the

education system and industry.

4.1.5.1 Stakeholder networks to inform best practices in teaching are developed and maintained.


Te Wänanga o Aotearoa teaching practice

needs identified and best practice

requirements to fill gaps determined.

New Zealand Education Consultants

(NZEC) contracted to develop best teaching

practice for kaiako capability improvement

project. (NZEC consultants have had

extensive experience in the education

sector).

4.2 Learning

Whainga 4.2.1 Te Wänanga o Aotearoa will provide learning experiences that are tauira-centred and value

previous experiences as a catalyst for further learning.

4.2.1.1 Curriculum documents provide a robust platform from which tauira-centred learning can

occur.


Curriculum document templates developed

and distributed.

New programme curriculum document

template (PCD) developed. New template

distributed to all programme developers.


4.2.1.2 Tauira evaluations / satisfaction data is used to inform curriculum development.


New tauira evaluation form designed and

developed.

Project initiated to re-develop Tauira

Evaluation Survey. New tauira evaluation

survey form will be implemented in

April 2007. Action plans created from

suggestions in evaluation forms are

being used to inform new programme

development.

Whainga 4.2.2 Te Wänanga o Aotearoa will support learning through effective and appropriate programme

design, teaching practices, resources, activities and assessment methodologies.

4.2.2.1 Programme development and programme review policies and procedures are

implemented.


Reviewed policies and procedures

implemented and reflected in all programme

documentation.

Review of programme development and

programme review policies and processes

completed. Procedures and training to

support new policies will be completed in

2007.

4.2.2.2 Professional development policies and procedures for teaching staff are developed and

implemented.


Professional development policies and

procedures reviewed and redeveloped.

Employment relations policy, covering

professional development, approved

by Te Mana Whakahaere in late 2006.

Performance review and internal training

processes approved as part of this policy.

Procedures and training to support new

policies will be completed in 2007.

Whainga 4.2.3 Te Wänanga o Aotearoa will deliver all programmes in appropriate learning environments

underpinned by Maori epistemologies with systems that support learning.

4.2.3.1 Learner and whänau support models are created to strengthen support functions for

learners.


Tauira learning support systems reviewed. Tauira learning support systems reviewed

as part of Te Anga Whakamua.

Tauira support services policies,

processes and procedures developed and

implemented.


4.2.3.2 Retention and completion rates of supported tertiary tauira with disabilities (TSDs) are

maximised.


TSD orientation initiated on campuses.

MOU established with disability providers.

Notetaker training implemented.

Relationships with external disability providers

developed. TSD orientation information

included in Te Manu (Student Handbook).

Disability provider database established.

Membership to ACHIEVE (disability services

provider) maintained and a Disability

Administrator National Committee Member

appointed.

MOUs with external disability providers to be

established.

Note-taker training programme developed and

will be implemented in 2007.

Whainga 4.2.4 Te Wänanga o Aotearoa will provide learning experiences that provide employment and

educational outcomes that are of value to tauira on their path through the education system

and into employment.

4.2.4.1 Learner opinion surveys are commissioned in accordance with TEC guidelines.


Survey findings meet TEC requirements. Te Wänanga o Aotearoa tauira evaluations

and Graduate Destination Surveys

conducted. TEC yet to release guidelines.

4.2.4.2 A centralised tauira support tracking system is developed and expanded.


Further refinements made and functions

added. Supported tauira tracked and

monitored to ensure 80% retention.

Tauira support module refinements awaiting

confirmation in early 2007.

Results of tracking of supported tauira

to be submitted in the 2006 Special

Supplementary Grant (SSG) Report.

4.2.4.3 A career planning function for tauira, in line with industry and community needs, is

established.


Career pathways and enrolment process

investigated.

Enrolment process investigation conducted.

Report completed. A number of career

resources were also developed.

Regional Career Coordinators will be appointed

in 2007. A full set of career resources and staff

training will also be developed.


4.2.4.4 Regional employment opportunities for Te Wänanga o Aotearoa graduates are monitored

and tracked.


Tauira stair-casing pathways identified and

reported. Baselines established and targets

set.

Tauira pathways mapped and tauira

re-enrolment patterns tracked.

27% of tauira re-enrolled into other

programmes inside Te Wänanga o

Aotearoa.

Graduate survey indicates a further 20%

of graduates enrolled at another institution.

74% of graduates who responded to the

survey had either found employment or

became self employed.

4.2.4.5 Progression of tauira to further and higher qualifications within Te Wänanga o Aotearoa is

monitored and tracked.


Enrolment process reviewed. Incorporation

of career advice in enrolment process.

Enrolment process investigation conducted.

Report completed. Regional Career

Coordinators will be appointed in 2007 to

provide career advice to tauira at enrolment.

4.3 Tauira Pathways

Whainga 4.3.2 Te Wänanga o Aotearoa will identify and provide pathways to employment or higher level

qualifications.

4.3.2.1 Industry relationships to inform programme development and pathway options are built and

maintained.


Broad industry membership established.

Industry participation in Te Wänanga o

Aotearoa reference groups increased.

Relationships initiated with ITOs. Industry

training strategy to be further develop in

2007.

Kömiti Äwhina structure re-instated,

including industry representation.


4.3.2.2 Tauira pathways into external organisations are provided by developing programmes in

agriculture and fisheries at NZQA levels three and four.


Relevant stakeholders consulted, including

governing bodies, industry parent groups

and companies.

This activity was reconsidered and deferred

as it did not align with the current strategic

direction of Te Wänanga o Aotearoa or

changes to tertiary policy. Te Wänanga o

Aotearoa does not envisage entry into these

fields during 2007.

4.3.2.3 Programmes in teaching, social work, business and mätauranga Mäori are generally

strengthened to ensure relevance to tauira and industry.




and companies.

Te Wänanga o Aotearoa continued to

engage with and consult stakeholders in

these areas throughout 2006 for input into

programme development and review.

Kömiti Äwhina structure re-instated with

industry representation.

4.3.2.4 Tauira pathways into teaching, social work, business and mätauranga Mäori qualifications

are strengthened by providing programmes at NZQA levels three and four.




and companies.

Stakeholder consultation gap analysis

conducted. Planning implemented to

address pathway gaps. Programme

development plan will be completed in 2007.

4.3.2.5 Pathway rates of learners are maintained.


20%+ of tauira followed pathways to

employment or further education.

27% of tauira enrolled in 2006 had

pathwayed into further education.

Graduate Destination Survey indicated

a further 20% of graduates enrolled at

another institution. 74% of graduates

who responded to the survey had found

employment or became self employed.


Whainga 4.3.3 Te Wänanga o Aotearoa will provide career planning tools and facilities for tauira.

4.3.3.1 Career planning tools and facilities are developed and implemented.


Training to pouarataki (tauira support staff)

implemented.

Advice and guidance provided to tauira by

pouarataki. Tauira progress into further

education and/or employment monitored.

Careers planning training delivered to tauira

support staff.

Advice and guidance provided to tauira.

Support interventions provided.

Tauira progress into further education and/or

employment monitored via the Te Wänanga

o Aotearoa Alumni database.

4.4 Research

Whainga 4.4.1 Te Wänanga o Aotearoa will support programmes and teaching with research-based

knowledge.

4.4.1.1 Research is completed that contributes to the understanding and application of Mäori

epistemologies for Te Wänanga o Aotearoa and its stakeholders.


Research scoped and topics defined. Research scoped and topics defined.

Funding obtained to create a research

journal focussed on indigenous

epistemologies and practice. The journal

has now been written and will be published

during 2007.

4.4.1.2 Research that informs programmes is completed.


Research projects that directly inform Te

Wänanga o Aotearoa programmes are

supported.

Research projects to inform programme

development are shown in the Te Wänanga

o Aotearoa Research Register.


4.4.1.3 A comprehensive National Research Resource Register is established and maintained.


Te Whänau Manaaki Rangahau (Research

Committee) baseline for a National

Research Resource Register established.

Te Whänau Manaaki Rangahau replaced

by Te Kähui Rangahau (Research Ethics

Committee)

Research database development project

identified in the Quality Reinvestment

Programme for approval in 2007.

Whainga 4.4.2 Te Wänanga o Aotearoa will consolidate and build research capacity.

4.4.2.1 A National Research Support Team continues to be supported.


An overarching research strategy is

developed.

Research unit restructured as part of Te

Anga Whakamua. Research capability will

be rebuilt in 2007, including development of

a research strategy.

4.4.2.2 An internal contestable research fund is established and maintained.


Guidelines developed for accessing an

internal contestable research fund.

Te Kähui Rangahau (Research and

Ethics Committee), in conjunction with a

representative from Te Uepü Take Pütea,

will approve guidelines for the application

and approval of the internal contestable

research fund in 2007.

Whainga 4.4.3 Te Wänanga o Aotearoa will increase external research funding and contracts to benefit the

economy and the knowledge base of Aotearoa.

4.4.3.1 External funding opportunities are accessed by research staff.


Research staff supported to attend

funding seminars. Details from seminars

disseminated to staff engaged in research.

External funding obtained from Ngä

Pae o te Maramatanga – the National

Institute of Research Excellence for Mäori

Development and Advancement.

Research funding seminars attended by

research staff. Seminar information, external

funding details, internal contestable funds

and policies are available to all staff on the

internal website.

Financial Overview - 2006 - 41

Financial Overview - 2006

Financial Review

Equivalent Full Time Students (EFTS)

Our total EFTS achieved this year was 19,670. This was

a decrease of 27.1% on the results for 2005. The main

decrease in EFTS occurred in Te Ara Reo Mäori, Kiwi Ora,

Mahi Ora and Greenlight programmes. These decreases

were offset to some extent by increases in the enrolments

for our Certificate in Small Business Management and

Mauri Ora programmes.

Financial Position

Net assets as at year end were $75 million, which is a

decrease of $8 million on last year. The organisation sold

four properties in the year - two properties in Te Awamutu,

one in Taumarunui and a large site in Manukau. This was

part of an ongoing rationalisation of owned and leased

properties which was started in 2005.

A Crown funding facility of $20 million was approved in

2005 to assist the organisation. During 2006 the facility

was reduced to $10 million. Funds from this facility

were only accessed once for short term working capital

arrangements and were subsequently repaid into a

treasury account which was set up under the control of

the Crown Manager for these purposes.

Overall Financial Performance

The net deficit for 2006 was $16 million against a budgeted

deficit of $14 million.

During the year an extensive restructure was undertaken,

which was funded through the sale of surplus assets

and rationalisation of expenditure rather than through

assistance from external sources. EFTS targets were

achieved and our revenue from Government sources was

$5.7 million better than budget. Other income included

$4.3 million favourable to budget due to higher interest

earnings and a $1 million gain from the revaluation of an

investment property. This resulted in an overall favourable

variance for revenue of $9.6 million.

Personnel costs were $13 million over budget. This

resulted, in part, from a number of one-off redundancy

and other costs related to the restructure. Depreciation

and amortisation charges were $2.5 million under budget,

which was a reflection of the revaluation of assets that

occurred in the two previous years along with a slow

down in capital expenditure. Other expenditure was

commensurate with budget.

Income

The profile of our income streams is shown in the table

below.

Source 2006 2005 2004 2003 2002

Government Funding 90% 89% 89% 95% 94%

Student Fees 2% 3% 2% 2% 3%

Other (e.g. Interest,

Joint Ventures)

8% 8% 9% 4% 3%

The income profile for 2006 remained consistent with the

profile from last year. However, in actual dollar terms the

drop in Government funding was mirrored by a similar

drop in other income.

Expenditure

The profile of our expenditure is shown in the table

below.

Source 2006 2005 2004 2003 2002

Personnel Costs 46% 43% 35% 36% 37%

Resources/

Administration

37% 41% 43% 50% 37%

Trading - - - - 11%

Property Costs 8% 8% 8% 8% 7%

Depreciation 9% 8% 5% 6% 8%

Impairment of

Assets

- - 9% - -

Personnel costs have continued to increase in relation to

other costs. This is partly a result of the non-recurring

costs associated with the restructure, but also reflects an

overdue realignment of our employee remuneration levels

to meet market and sector benchmarks.

Cash Flow

The opening cash balance held at the organisation

was $9.8 million. There was a negative net cash flow

from operations of $2.8 million for the year as well as a

negative net cash flow from financing activities of $4.7

million. Purchases of property, plant and equipment

and programme development were $1.8 million offset

by a positive cash flow from sales of property, plant and

equipment of $5.0 million.

42 - Financial Overview - 2006

Accordingly the total net decrease in cash balances was

$4.3 million, giving a closing cash balance of $5.5 million.

This amount included the $6 million treasury facility that

was drawn-down at year end.

Summary

Overall results for 2006 reflect the significant restructuring

and change the organisation has been through. The

deficit was largely budgeted for, with the eventual negative

variance attributable to the additional time and costs

absorbed to implement the restructure. These additional

costs were offset, albeit not entirely, by higher levels of

revenue from Government and other sources.

By year end the organisation reached a stage whereby

the restructure had been completed and most costs met.

Our revenue streams had been stabilised along with

associated “business as usual” expenditure.

The statement of financial position now shows a solid

repositioning of the organisation. Most unproductive

assets have been disposed of; the indebtedness of the

organisation has been reduced; and towards the end of

the year improvements were becoming evident in the net

working capital position of the organisation.

All these factors indicate that 2007 and beyond will see

continued positive progress in our financial performance

and position.

Statement of Responsibility - 43

Statement of Responsibility

In the financial year ended 31 December, 2006, Te Mana Whakahaere (the

Council) and the management of Te Wänanga o Aotearoa were responsible for:

1. preparation of the annual financial statements and the judgements used in

them; and

2. establishing and maintaining a system of internal control designed to provide

reasonable assurance as to the integrity and reliability of financial reporting; and

In the opinion of Te Mana Whakahaere and management of Te Wänanga o

Aotearoa, the annual financial statements for the financial year ended 31

December, 2006 fairly reflect the financial position and operation of Te Wänanga

o Aotearoa.

Richard Batley - Council Chairperson

BMS (Waikato); CA

30 April, 2008

Bentham Ohia - Pouhere

Dip Tchg; BA; Exec MBA

30 April, 2008

Brian Roche - Crown Manager

BCA (Victoria); CA

30 April, 2008

44 - Audit New Zealand

The Auditor-General is the auditor of Te Wänanga o

Aotearoa Te Kuratini o Ngä Waka (the Wänanga) and

group. The Auditor-General has appointed me, Stephen

Lucy, using the staff and resources of Audit New Zealand to

carry out the audit of the financial statements and statement

of service performance of the Wänanga and group, on his

behalf, for the year ended 31 December 2006.

Qualified Opinion – Comparative Information

The scope of the audit of the 2005 financial statements was

limited because the Wänanga and group did not maintain

adequate systems and controls between 1 January 2005

and 8 March 2005 to identify all related party transactions.

Accordingly, we were unable to determine whether

any adjustments were necessary to the 2005 financial

statements of the Wänanga and group.

Except for the effect of the matter noted above, which

relates only to the comparative information, in our opinion

the financial statements of the Wänanga and group on

pages 46 to 70:

• comply with generally accepted accounting practice in

New Zealand; and

• fairly reflect:

- the Wänanga and group’s financial position as

at 31 December 2006; and

- the results of operations and cash flows for the

year ended on that date.

The performance information of the Wänanga and group

on pages 10 to 40 fairly reflects the service performance

achievements measured against the performance targets

adopted for the year ended on that date.

The audit was completed on 30 April 2008, and is the date

at which our qualified opinion is expressed.

The basis of our opinion is explained below. In addition, we

outline the responsibilities of the Council and the Auditor,

and explain our independence.

Basis of Opinion

We carried out the audit in accordance with the

Auditor-General’s Auditing Standards, which incorporate

the New Zealand Auditing Standards. However, the scope

of our work was limited due to the limitation in evidence

over the comparative information.

We planned and performed the audit to obtain all the

information and explanations we considered necessary

in order to obtain reasonable assurance that the financial

statements and statement of service performance did not

have material misstatements whether caused by fraud or

error.

Material misstatements are differences or omissions of

amounts and disclosures that would affect a reader’s

overall understanding of the financial statements and

statement of service performance. We were unable to

determine whether there were material misstatements

in the previous year because the scope of our work

was limited due to the limitation in evidence over the

comparative information, as we referred to in our opinion.

The audit involved performing procedures to test the

information presented in the financial statements and

statement of service performance. We assessed the

results of those procedures in forming our opinion.

Audit procedures generally include:

• determining whether significant financial and

management controls are working and can be relied on

to produce complete and accurate data;

• verifying samples of transactions and account balances;

• performing analyses to identify anomalies in the

reported data;

• reviewing significant estimates and judgements made

by the Council;

• confirming year-end balances;

• determining whether accounting policies are

appropriate and consistently applied; and

• determining whether all financial statement disclosures

are adequate.

AUDIT REPORT TO THE READERS OF TE WÄNANGA O AOTEAROA TE KURATINI O NGÄ WAKA AND GROUP’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2006

Audit New Zealand - 45

We did not examine every transaction, nor do we

guarantee complete accuracy of the financial statements

and statement of service performance.

We evaluated the overall adequacy of the presentation of

information in the financial statements and statement of

service performance. We did not obtain all the information

and explanations we required because of the limitation in

evidence over the comparative information, as explained

above

Responsibilities of the Council and the Auditor

The Council is responsible for preparing financial

statements in accordance with generally accepted

accounting practice in New Zealand. Those financial

statements must fairly reflect the financial position of

the Wänanga and group as at 31 December 2006. They

must also fairly reflect the results of operations and cash

flows for the year ended on that date. The Council is

also responsible for preparing performance information

that fairly reflects the service performance achievements

for the year ended 31 December 2006. The Council’s

responsibilities arise from the Education Act 1989 and the

Crown Entities Act 2004.

We are responsible for expressing an independent opinion

on the financial statements and statement of service

performance and reporting that opinion to you. This

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 Institute of Chartered

Accountants of New Zealand.

In addition to the audit, Audit New Zealand has carried

out two assignments since 1 January 2006, providing

independent quality assurance over a tender process

and a business case, which are compatible with those

independence requirements. Other than the audit and

these assignments, we have no relationship with or

interests in the Wänanga or its subsidiary.

S B Lucy

Audit New Zealand

On behalf of the Auditor-General

Hamilton, New Zealand

46 - Statement of Accounting Policies

Statement of Accounting Policiesfor the year ended 31 December, 2006

General Accounting Policies

Reporting Entity

Te Wänanga o Aotearoa is a Wänanga constituted by

an Order in Council dated 21 June, 1993. The financial

statements presented are for Te Wänanga o Aotearoa and

the consolidated financial statements are for the group

comprising Te Wänanga o Aotearoa and its wholly owned

subsidiary MO1 Limited.

These financial statements are prepared in accordance

with Section 203 of the Education Act 1989 and are

presented in accordance with Generally Accepted

Accounting Practice as defined in the Public Finance

Act 1989.

Going Concern

Reliance is placed on the fact that Te Wänanga o Aotearoa

is a going concern and that sufficient funds are available

or will become available to maintain current operations to

at least their current level.

Measurement Base

Unless otherwise stated the general accounting principles

recognised as appropriate for the measurement and

reporting of the financial position under the historical cost

method have been used. The reporting currency is New

Zealand dollars.

Accrual accounting is used to measure the cost of services

provided and to recognise revenues.

Specific Accounting Policies

The following specific accounting policies which materially

affect the measurement of financial performance and the

financial position have been applied:

A. RevenueRevenue from the Tertiary Education

Commission is recognised on an EFTS

consumption basis as the course is provided

and student fees are recognised when the

course is provided. Other revenue is recognised

when the activity was undertaken which gave

rise to the revenue. Government grants are

recognised when eligibility has been established

by the grantor.

Rental Income is recognised in the Statement of

Financial Performance on an accruals basis.

Interest Income is accrued using the effective

interest rate applicable.

B. Accounts ReceivableAccounts Receivable are stated at expected

realisable value after providing for debts where

collection is doubtful.

C. InventoryAll inventories are valued at the lower of cost

and net realisable value.

D. Property, Plant and EquipmentProperty, Plant and Equipment are initially

recorded at cost within the Statement of

Financial Position.

Subsequent Expenditure

Subsequent expenditure relating to an item of

property, plant and equipment is capitalised to

the initial cost of the item when the expenditure

increases the economic benefits over the life

of the item or where that expenditure was

necessarily incurred to enable the future

economic benefits to be obtained and the

expenditure would have been included in the

initial cost of the item had the expenditure been

incurred at the time of acquisition.

All other subsequent expenditure is expensed in

the period in which it is incurred.

Impairment

All items of property, plant and equipment are

assessed for impairment at each reporting date.

Where the carrying amount is assessed to be

greater than its recoverable amount, the item is

written down. The write down is recognised in

the statement of financial performance.

Disposal

On disposal or permanent withdrawal of an item

of property, plant and equipment the difference

between the disposal proceeds (if any) and the

Statement of Accounting Policies - 47

carrying amount is recognised in the statement

of financial performance and the revaluation

surplus is transferred from the revaluation

reserve directly to retained earnings.

Valuation

Valuation of Land and Buildings was carried out

by Jones Land Laselle Ltd (Registered Valuers)

as at 31st March, 2006. Except for land,

valuation of these assets is based on optimised

depreciated replacement cost. The valuation of

land is based on fair value for the existing use.

Approval

Under Section 192(4) of Education Act 1989

TWOA is required to seek approval from the

Ministry for the disposal of assets.

E. DepreciationProperty, Plant and Equipment, with the

exception of Land and Artwork (which are not

depreciated) are depreciated on a straight line

basis at rates that will write off the cost over the

estimated useful life of the asset. The estimated

useful life of assets are as follows:

Buildings 1.33% - 33% 3 - 75 years

Equipment 20% 5 years

Computers 25% 4 years

Furniture and Fittings 20% 5 years

Vehicles 20% 5 years

Waka 10% 10 years

Owned Land Improvements 20% 5 years

Library Books 10% 10 years

Library Subscriptions 50% 2 years

Leasehold Improvements Over the period of the lease

F. Programme Development CostsCapitalisation of Programme Development

Costs is limited to the amount which, taken

together with further related costs, is probable

of recovery from future related economic

benefits. Development costs recognised as

an asset are amortised on a straight line basis

over a five year period once accreditation has

been achieved, commencing from the period in

which the programme is first delivered. All other

development costs and all research costs are

recognised as expenses in the period in which

they are incurred.

G. Goods and Services TaxThe financial statements are prepared exclusive

of GST except Accounts Payable and Accounts

Receivable which are disclosed inclusively.

Goods and Services Tax is accounted for on an

invoice basis and the balance owing at balance

date is disclosed in the Statement of Financial

Position.

H. Consolidation of SubsidiaryThe group financial statements incorporate

the financial statements of the parent of Te

Wänanga o Aotearoa and its wholly owned

subsidiary, which has been consolidated using

the purchase method. The results of any

subsidiaries acquired or disposed of during the

year are consolidated from the effective dates

of acquisition or until the effective dates of

disposal.

All inter-company transactions, balances

and unrealised profits are eliminated on

consolidation.

I. Operating LeasesOperating lease rentals are recognised evenly

over the expected period of benefit to Te


J. Finance LeasesLeases under which Te Wänanga o Aotearoa

assumes substantially all the risks and rewards

of ownership are classified as finance leases

and are capitalised.

The finance charge is allocated to periods during

the lease term so as to produce a constant

periodic rate of interest on the outstanding

balance of the liability for each period.

K. Financial InstrumentsFinancial Instruments carried on the Statement

of Financial Position include cash and bank

balances, investments, receivables, trade

creditors and borrowings. These instruments

are carried at their estimated fair value. The

particular recognition methods adapted are

disclosed in the individual policy statements

associated with each item.

Financial Instruments denominated in foreign

currencies are translated at the rates of

exchange ruling on the balance date.

48 - Statement of Accounting Policies

L. TrademarksPurchased identifiable intangible assets,

comprising patents and trademarks, are

recognised at cost and amortised on a straight

line basis over their estimated useful lives.

Where the carrying amount of an identified

intangible asset exceeds its recoverable

amount, it is written down to its recoverable

amount.

M. InvestmentsInvestments are stated at the lower of cost and

net realisable value.

N. ProvisionsAll provisions are recorded at the best estimate

of the expenditure required to settle the

obligation at balance date. Where the effect

is material, the expected expenditures are

discounted to their present value using pre-tax

discount rates.

Restructuring

Restructuring is a programme planned and

controlled by management that materially

changes the scope of a business undertaken by

the group or the manner in which the business is

conducted by the group. The group recognises

a provision for restructuring when the Council

has approved a detailed formal plan, and

the restructuring has commenced or a public

announcement regarding the restructuring has

been made. Costs and expenditures related

to ongoing operations are not included in the

provision for restructuring.

O. Statement of Cash FlowsThe Statement of Cash Flows is prepared

exclusive of GST, which is consistent with the

method used in the Statement of Financial

Performance.

Definitions of the terms used in the Statement of

Cash Flows:

• Cash includes coins and notes, demand

deposits and other highly liquid investments

readily convertible into cash and includes at

call borrowings such as bank overdrafts, used

by the organisation as part of their day to day

cash management.

• Operating activities include all transactions and

other events that are not investing or financing

activities. Investing activities are those activities

relating to the acquisition and disposal of

current and non-current investments and other

non-current assets.

• Financing activities are those activities relating

to changes in the equity and debt capital

structure of the organisation and those activities

relating to the cost of servicing the organisations

equity capital.

P. Foreign Currency TransactionsTransactions denominated in foreign currencies

are translated into the reporting currency using

the exchange rate in effect at the transaction

date.

Monetary items receivable or payable in a

foreign currency, other than those resulting from

short term transactions covered by forward

exchange contracts, are translated at balance

date at the closing rate.

Exchange differences on foreign currency

balances are recognised in the statement of

financial performance.

Q. Budget FiguresThe budget figures are those approved by the

Council and Ministry of Education. The budget

figures have been prepared in accordance with

generally accepted accounting practice and are

consistent with the accounting policies adopted

by the Council for the preparation of the financial

statements.

R. Employee EntitlementsProvision is made in the statement of financial

performance and financial position for the

benefits due to staff under existing contracts for

annual, long service and gratuities leave, on the

basis of actual entitlement.

S. Comparative FiguresComparative information has been reclassified

where necessary to achieve consistency in

disclosure with the current year.

Statement of Accounting Policies - 49

Changes in Accounting Policies

There has been a change in the Accounting Policy for

Library Books. Previously Library Books were depreciated

at 12.5% on a diminishing value basis. The policy has

been changed to straight line depreciation over a life of 10

years for books and over a life of 2 years for subscriptions

for magazines and journals depreciating. The impact of

this change in accounting policy resulted in an increase

in surplus for the year of $518,740 and an increase in the

value of the Property, Plant and Equipment of $518,740.

All other accounting policies have been applied on a basis

consistent with the previous year.

50 - Statement of Financial Performance

Statement of Financial Performancefor the year ended 31 December, 2006

Group

Actual

31/12/2006

Group

Budget

31/12/2006

Notes Parent

Actual

31/12/2006

Parent

Budget

31/12/2006

Group

Actual

31/12/2005

Parent

Actual

31/12/2005

$000 $000 $000 $000 $000 $000

Government Funding

Ministry of Education 108,435 101,760 108,435 101,760 142,490 142,490

Other Government Funding 785 1,777 785 1,777 1,905 1,905

Total Government Funding 109,220 103,537 1 109,220 103,537 144,395 144,395

Student Tuition Fees

Domestic 2,242 2,623 2,242 2,623 4,965 4,965

Other Income

Trading Income 2,591 5,096 3,176 6,707 4,830 4,830

Interest 1,413 430 1,411 390 2,031 1,996

Dividends 5 - 5 - - -

Gain on Investment Property 1,020 - 1,020 - - -

Other Income 4,757 - 4 4,731 - 5,495 4,703

Total Other Income 9,786 5,526 10,343 7,097 12,356 11,529

Total Income 121,248 111,686 121,805 113,257 161,716 160,889

Less Personnel

Salaries & Associated Costs 63,616 50,654 2 58,480 45,518 73,079 67,740

Other Costs

Consumable/Faculty Costs 49,922 49,700 64,079 63,801 71,286 83,040

Occupancy Property Costs 11,415 10,299 10,832 9,673 13,303 12,753

Interest Expense 510 747 510 747 375 375

Total Other Costs 61,847 60,746 3 75,421 74,221 84,964 96,168

Depreciation/Amortisation 11,772 14,253 12 10,122 12,573 13,329 11,834

Total Cost of Services 137,235 125,653 144,023 132,312 171,372 175,742

Net Surplus (Deficit) for the Year $(15,987) $(13,967) $(22,218) $(19,055) $(9,656) $(14,853)

The notes to these accounts form an integral part of these statements and should be read in conjunction with them.

Statement of Movements in Equity - 51

Statement of Movements in Equityfor the year ended 31 December, 2006

Group

Actual

31/12/2006

Group

Budget

31/12/2006

Notes Parent

Actual

31/12/2006

Parent

Budget

31/12/2006

Group

Actual

31/12/2005

Parent

Actual

31/12/2005

$000 $000 $000 $000 $000 $000

Opening Public Equity 83,530 93,492 5 62,223 70,766 93,186 77,076

Revaluation reserve 7,615 - 7,615 - - -

Net Surplus/(Deficit) for the year (15,987) (13,967) (22,218) (19,055) (9,656) (14,853)

Public Equity as at 31

December, 2006 $75,158 $79,525 $47,620 $51,711 $83,530 $62,223


52 - Statement of Financial Position

Richard Batley, Council ChairBMS (Waikato); CA

30 April, 2008

Bentham Ohia, Pouhere/CEO, appointed May 2006

Dip Tchg; BA; Exec MBA

30 April, 2008

Brian Roche, Crown ManagerBCA (Victoria); CA

30 April, 2008

for and on behalf of the Council

Statement of Financial Positionas at 31 December, 2006

Group

Actual

31/12/2006

Group

Budget

31/12/2006

Notes Parent

Actual

31/12/2006

Parent

Budget

31/12/2006

Group

Actual

31/12/2005

Parent

Actual

31/12/2005

$000 $000 $000 $000 $000 $000

Public Equity 75,158 79,525 47,620 51,711 83,530 62,223

Current Assets

Cash at Bank 5,469 3,299 3,286 2,208 9,816 9,452

Accounts Receivable 4,518 8,784 6 3,340 7,112 6,663 5,335

Prepayments 35 100 7 35 100 468 468

Inventory 2,761 5,802 8 954 4,327 6,294 5,114

Total Current Assets 12,783 17,985 7,615 13,747 23,241 20,369

Less Current Liabilities

Accounts Payable 6,720 4,262 9 24,957 23,147 9,963 22,641

Crown Loan 6,000 6,000 16, 19 6,000 6,000 6,000 6,000

Current Portion of Term Liabilities 794 - 17 794 - 44 44

Employee Entitlements 3,161 795 10 2,998 641 4,315 4,134

Total Current Liabilities 16,675 11,057 34,749 29,788 20,322 32,819

Working Capital Surplus/(Deficit) (3,892) 6,928 (27,134) (16,041) 2,919 (12,450)

Property, Plant and Equipment 68,954 65,626 11 66,480 63,333 80,283 76,838

Other Non Current Assets

Programme Development 4,531 4,592 13 2,709 2,038 3,164 670

Investment Property 6,800 - 6,800 - - -

Trademark 5 - 5 - 5 5

Investment in MO1 Limited - - 14 1 1 - 1

Advance to Aotearoa Institute - 3,115 - 3,116 3,115 3,115

Total Other Non Current Assets 11,336 7,707 9,515 5,155 6,284 3,791

Term Liabilities

Mortgage 721 736 17 721 736 706 706

Aotearoa Institute 520 - 520 - 5,250 5,250

Total Term Liabilities 1,241 736 1,241 736 5,956 5,956

Net Assets $75,158 $79,525 $47,620 $51,711 $83,530 $62,223


Statement of Cashflows - 53

Statement of Cashflowsfor the year ended 31 December, 2006

Group

Actual

31/12/2006

Group

Budget

31/12/2006

Notes Parent

Actual

31/12/2006

Parent

Budget

31/12/2006

Group

Actual

31/12/2005

Parent

Actual

31/12/2005

$000 $000 $000 $000 $000 $000

Cash Flows from Operating Activities

Cash was provided from:

Operating Income 119,891 125,909 128,678 124,541 171,893 155,792

Interest Received 422 280 396 240 2,031 1,996

120,313 126,189 129,074 124,781 173,924 157,788

Cash was applied to:

Employees 63,616 51,680 58,480 51,529 178,850 160,046

Suppliers 59,036 73,759 74,730 73,543 - -

Interest expense 510 747 510 747 375 375

123,162 126,186 133,720 125,819 179,225 160,421

Net Cash Flows From

Operating Activities(2,849) 3 15 (4,646) (1,038) (5,301) (2,633)

Cash Flows from Investing Activities


Sale of Property, Plant and

Equipment5,049 7,200 4,988 7,200 1,621 1,498

5,049 7,200 4,988 7,200 1,621 1,498


Purchase of Property, Plant and

Equipment1,487 5,940 1,487 5,540 6,902 6,519

Programme Development 304 - 265 - 254 -

1,791 5,940 1,752 5,540 7,156 6,519

Net Cash Flows From

Investing Activities3,258 1,260 3,236 1,660 (5,535) (5,021)

Cash Flows from Financing Activities


Crown Loan - - - - 12,000 12,000

- - - - 12,000 12,000


Mortgage Aotearoa Institute 4,730 - 4,730 - - -

Settlement of Debt 15 14 15 14 6,014 6,014

4,745 14 4,745 14 6,014 6,014

Net Cash Flows From

Financing Activities (4,745) (14) (4,745) (14) 5,986 5,986

Net (Decrease) / Increase

In Cash Held(4,336) 1,249 (6,155) 608 (4,850) (1,668)

Opening Balance 1 January, 2006 9,816 2,050 9,452 1,600 14,666 11,120

Gain (Loss) on Foreign

Exchange(11) - (11) - - -

Closing Balance 31

December, 2006$5,469 $3,299 $3,286 $2,208 $9,816 $9,452


54 - Financial Ratios

Financial Ratiosfor the year ended 31 December, 2006

2006

Group

2006

Parent

2005

Group

2005

Parent

2004

Group

2004

Parent

2003

Group

2003

Parent

$000 $000 $000 $000 $000 $000 $000 $000

Short Term Liquidity

Current Monetary Assets 5,469 3,286 9,816 9,452 14,666 11,120 37,377 33,335

Current Liabilities 16,675 34,749 20,322 32,819 32,071 32,728 14,667 16,457

Ratio 0.33:1 0.09:1 0.48:1 0.29:1 0.46:1 0.34:1 2.55:1 2.02:1

Public Equity to Total Assets Ratio

Public Equity 75,158 47,620 83,530 62,223 93,186 77,076 116,769 100,817

Total Assets 93,073 83,610 109,808 100,998 131,227 115,774 131,448 117,286

Ratio 0.80:1 0.56:1 0.77:1 0.63:1 0.72:1 0.68:1 0.89:1 0.86:1

Exposure to Liabilities

Total Liabilities 17,916 35,990 26,278 38,775 38,041 38,698 14,679 16,469

Public Equity 75,158 47,620 83,530 62,223 93,186 77,076 116,769 100,817

Exposure to Liabilities 0.24:1 0.77:1 0.30:1 0.58:1 0.40:1 0.47:1 0.13:1 0.16:1

Change in Financial Value

Net Assets 75,158 47,620 83,530 62,223 93,186 77,076 116,769 100,817

Change in Financial Value -10.02% -23.47% -10.82% -19.54% -18.20% -18.22% 49.00% 40.00%

Return on Assets

Net Result for the Period (15,987) (22,218) (9,656) (14,853) (23,583) (23,741) 33,247 24,003

Total Assets 75,158 47,620 109,808 100,998 131,227 115,774 131,448 117,286

Percentage -21.27% -46.66% -8.55% -14.52% -15.92% -18.35% 25.29% 20.47%

Notes to the Financial Statements - 55

Notes to the Financial Statementsfor the year ended 31 December, 2006

1. Government Funding

Te Wänanga o Aotearoa is a Crown recognised tertiary institution. The major source of funding is from the Ministry of

Education.

2. Council Remuneration

2006

Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $100,090

distributed as follows:

Craig Coxhead - Council $ 46,135 Lloyd Anderson - Council/Audit & Risk $ 5,355

Richard Batley - Council/Audit & Risk $ 7,650 Tania Hodges - Council/Audit & Risk $ 4,335

Hoturoa Barclay-Kerr - Council $ 2,295 Neville Baker - Council $ 1,275

Jo Davey - Council $ 255 Richard Jones - Audit & Risk $ 12,150

Matt McCarten - Council $ 3,570 Parekäwhia McLean - Council $ 2,805

Hinerangi Raumati - Audit & Risk $ 10,800 Tamati Reedy - Council $ 765

Lisa Tipping - Audit & Risk $ 2,700

Directors Fees paid by MO1 Limited of $53,167 were distributed as follows:

Richard Batley $ 36,667 Lloyd Anderson $ 16,500

2005

Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $60,325 distributed

as follows:

Craig Coxhead - Council $ 19,500 Lloyd Anderson - Council/Audit & Risk $ 8,160

Eleanor Barton - Council $ 2,805 Richard Batley - Council/Audit & Risk $ 10,690

Barry Hopkins - Council $ 2,550 Tania Hodges - Council/Audit & Risk $ 8,160

John Storey - Audit & Risk $ 1,020 Carol Nin - Council $ 2,040

Shane Jones - Audit & Risk $ 5,400

There were no Directors Fees paid by MO1 Limited in 2005.

3. Statutory Disclosures

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Interest Expense 510 510 375 375

Fees Paid to Auditors

For Audit Services 350 310 495 405

For Other Services 1 1 - -

Provision for Doubtful Debts 867 867 579 579

Operating Lease Expense 288 288 5,554 5,554

Bad Debts Written Off 50 50 1,429 1,429

Koha 71 67 176 161

Amortisation of Programme Development Costs (note 13) 1,063 226 608 152

Depreciation (note 12) 10,556 9,770 11,729 10,690

Net Loss on Sale of Fixed Assets (note 12) 153 126 992 992

Rent 1,332 1,332 1,139 1,139

56 - Notes to the Financial Statements

4. Other Income

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Contract Income 3,901 3,901 4,385 3,696

Rent Received 288 288 357 351

Other Income 568 542 753 656

Total Other Income 4,757 4,731 5,495 4,703

Contract income relates to licences and subcontracting arrangements that Te Wänanga o Aotearoa has with

other institutions.

5. Equity Disclosure

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

General Equity 31,839 10,532 41,495 25,385

Crown Capital 51,691 51,691 51,691 51,691

Revaluation Reserve 7,615 7,615 - -

Net Surplus/ Deficit for the Year (15,987) (22,218) (9,656) (14,853)

Closing Public Equity 75,158 47,620 83,530 62,223

The Crown has made equity contributions to Te Wänanga o Aotearoa in line with the recommendations outlined in

The Wänanga Capital Establishment Report – Waitangi Tribunal Report 1999 (WAI 718) (refer Accounting Policies,

General, Going Concern). To date the Crown has made equity contributions of $51,691,000.

A $20 million suspensory loan was due to be advanced to Te Wänanga o Aotearoa over the 2004 -2005 years to

complete the equity contributions agreed to. This loan has not yet been advanced.

6. Accounts Receivable

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Student Fee Debtors 464 464 191 191

Ministry of Education 2,774 2,774 355 355

Intercompany - MO1 Limited - - - 336

Oma Investments Limited - - 2,268 2,268

General Debtors 2,147 969 4,652 2,764

5,385 4,207 7,466 5,914

Less Provision for Doubtful Debts 867 867 803 579

Total Accounts Receivable 4,518 3,340 6,663 5,335

7. Accounts Receivable

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

VLC Computers - - 94 94

Other 35 35 374 374

Total Prepayments 35 35 468 468


8. Inventory

In December 2006 $2.011m of stock was written off. This was in respect of obsolete stock and Greenlight stock.

9. Accounts Payable

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Goods and Services Tax Accrual 315 352 370 73

Intercompany - MO1 Limited - 19,085 - 13,656

PAYE 569 520 619 578

Sundry Creditors 5,836 5,000 8,974 8,334

Total Accounts Payable 6,720 24,957 9,963 22,641

10. Provision for Employee Entitlements

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Accrued Salaries 813 763 29 29

Accrued Holiday Pay 2,348 2,235 4,286 4,105

Total Provision for Employee Entitlements 3,161 2,998 4,315 4,134


11. P

ropert

y, P

lant and E

quip

ment (P

PE

)

Gro

up

- 2

006

Co

st /

Rev

alu

atio

nA

ccu

mu

late

d D

epre

ciat

ion

& Im

pai

rmen

t L

oss

esN

et B

oo

k V

alu

e

Balance @ 01 Jan 06

Additions

Revaluation

Disposals

Reclassification

Balance @ 31 Dec 06

Balance @ 01 Jan 06

Depreciation

Disposals

Revaluation

Reclassification

Balance @ 31 Dec 06

Balance @ 01 Jan 06

Balance @ 31 Dec 06

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

La

nd

6,9

16

-6,8

38

(847)

(1,1

13)

11,7

94

--

--

--

6,9

16

11,7

94

Bu

ildin

gs

43,4

40

16

(1,0

25)

(2,1

74)

(4,0

86)

36,1

71

(2,3

35)

(1,1

42)

139

1,8

02

182

(1,3

54)

41,1

05

34,8

17

Le

ase

hold

Im

p10,3

01

4-

(99)

-10,2

06

(3,4

75)

(1,1

16)

11-

-(4

,580)

6,8

26

5,6

26

Eq

uip

ment

13,3

01

99

-(1

66)

(547)

12,6

87

(6,5

94)

(2,3

22)

34

-164

(8,7

18)

6,7

07

3,9

69

Co

mpute

rs14,0

57

461

-(1

54)

-14,3

64

(9,1

82)

(2,3

86)

2-

-(1

1,56

6)4,8

75

2,7

98

Fu

rnitu

re &

Fitt

ings

7,6

27

51

-(1

)(4

58)

7,2

19

(4,2

07)

(1,2

81)

--

137

(5,3

51)

3,4

20

1,8

68

Mo

tor

Vehic

les

9,2

65

6

-(1

,544)

-7,7

27

(4,7

43)

(1,6

38)

1,0

65

--

(5,3

16)

4,5

22

2,4

11

Wa

ka1,2

14

--

--

1,2

14

(242)

(110)

--

-(3

52)

972

862

Art

work

96

7-

--

-9

67

--

--

--

967

967

Lib

rary

Books

3,4

22

200

--

-3,6

22

(1,0

50)

38

--

-(1

,012)

2,3

72

2,6

10

VL

C1,1

98

272

--

-1,4

70

(220)

(599)

--

-(8

19)

978

651

WIP

21

616

-(5

6)

-581

--

--

--

21

581

Tota

l PP

E11

1,72

91,

725

5,81

3(5

,041

)(6

,204

)10

8,02

2(3

2,04

8)(1

0,55

6)1,

251

1,80

248

3(3

9,06

8)79

,681

68,9

54


Par

ent

- 20

06

Co

st /

Rev

alu

atio

nA

ccu

mu

late

d D

epre

ciat

ion

& Im

pai

rmen

t L

oss

esN

et B

oo

k V

alu

e

Balance @ 01 Jan 06

Additions

Revaluation

Disposals

Reclassification

Balance @ 31 Dec 06

Balance @ 01 Jan 06

Depreciation

Disposals

Revaluation

Reclassification

Balance @ 31 Dec 06

Balance @ 01 Jan 06

Balance @ 31 Dec 06

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

La

nd

6,9

16

-6,8

38

(847)

(1,1

13)

11,7

94

--

--

--

6,9

16

11,7

94

Bu

ildin

gs

41,6

32

14

(1,0

25)

(2,1

72)

(4,0

86)

34,3

63

(2,0

66)

(1,0

23)

138

1,8

02

182

(967)

39,5

66

33,3

96

Le

ase

hold

Im

p10,2

60

--

(95)

-10,1

65

(3,4

56)

(1,1

09)

11-

-(4

,554)

6,8

04

5,6

11

Eq

uip

ment

12,1

75

99

-(1

59)

(547)

11,5

68

(6,0

52)

(2,1

13)

19

-164

(7,9

82)

6,1

23

3,5

86

Co

mpute

rs12,4

21

283

-(4

)-

12,7

00

(8,2

23)

(2,1

06)

3-

-(1

0,32

6)4,1

98

2,3

74

Fu

rnitu

re &

Fitt

ings

7,4

18

51

-(1

)(4

58)

7,0

10

(4,0

82)

(1,2

41)

--

137

(5,1

86)

3,3

36

1,8

24

Mo

tor

Vehic

les

8,4

93

--

(1,4

13)

-7,0

80

(4,3

45)

(1,5

07)

996

--

(4,8

56)

4,1

48

2,2

24

Wa

ka1,2

14

--

--

1,2

14

(242)

(110)

--

-(3

52)

972

862

Art

work

96

7-

--

-9

67

--

--

--

967

967

Lib

rary

Books

3,4

22

200

--

-3,6

22

(1,0

50)

38

--

-(1

,012)

2,3

72

2,6

10

VL

C1,1

98

272

--

-1,4

70

(220)

(599)

--

-(8

19)

978

651

WIP

21

616

-(5

6)

-581

--

--

--

21

581

Tota

l PP

E10

6,13

71,

535

5,81

3(4

,747

)(6

,204

)10

2,53

4(2

9,73

6) (9

,770

)1,

167

1,80

2 4

83

(36,

054)

76,4

0166

,480


Gro

up

- 2

005

Co

st /

Rev

alu

atio

nA

ccu

mu

late

d D

epre

ciat

ion

& Im

pai

rmen

t L

oss

esN

et B

oo

k V

alu

e

Balance @ 01 Jan 05

Additions / Reclassifications

Revaluation

Disposals

Balance @ 31 Dec 05

Balance @ 01 Jan 05

Depreciation

Disposals

Impairment losses

Balance @ 31 Dec 05

Balance @ 01 Jan 05

Balance @ 31 Dec 05

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

La

nd

7,6

57

--

(741)

6,9

16

--

--

-7,6

57

6,9

16

Le

ase

hold

Land Im

p178

--

--

(55)

--

--

123

-

Bu

ildin

gs

40,0

95

3,9

76

-(1

,767)

42,3

04

(1,5

65)

(994)

139

-(2

,420)

38,5

30

39,8

84

Le

ase

hold

Im

p10,9

96

538

-(9

7)

11,4

37

(2,1

73)

(1,1

01)

33

-(3

,241)

8,8

23

8,1

96

Eq

uip

ment

12,2

32

1,2

27

-(1

58)

13,3

01

(4,0

90)

(2,5

15)

11-

(6,5

94)

8,1

42

6,7

07

Co

mpute

rs13,0

112,5

69

-(7

7)

15,5

03

(5,7

69)

(3,4

58)

(39)

-(9

,266)

7,2

42

6,2

37

Fu

rnitu

re &

Fitt

ings

6,8

71

787

-(3

1)

7,6

27

(2,7

82)

(1,4

26)

1-

(4,2

07)

4,0

89

3,4

20

Mo

tor

Vehic

les

9,3

94

176

-(3

05)

9,2

65

(3,0

60)

(1,6

78)

(5)

-(4

,743)

6,3

34

4,5

22

Wa

ka614

-600

-1,2

14

(150)

(92)

--

(242)

464

972

Art

work

912

55

--

967

--

--

-912

967

Lib

rary

Books

2,8

60

562

--

3,4

22

(585)

(465)

--

(1,0

50)

2,2

75

2,3

72

WIP

3,0

72

2,5

40

-(5

,522)

90

--

--

-3,0

72

90

Tota

l PP

E10

7,89

212

,430

600

(8,6

98)

112,

046

(20,

229)

(11,

729)

140

-(3

1,76

3)87

,663

80,2

83


Par

ent

- 20

05

Co

st /

Rev

alu

atio

nA

ccu

mu

late

d D

epre

ciat

ion

& Im

pai

rmen

t L

oss

esN

et B

oo

k V

alu

e

Balance @ 01 Jan 05

Additions / Reclassifications

Revaluation

Disposals

Balance @ 31 Dec 05

Balance @ 01 Jan 05

Depreciation

Disposals

Impairment losses

Balance @ 31 Dec 05

Balance @ 01 Jan 05

Balance @ 31 Dec 05

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

La

nd

7,6

57

--

(741)

6,9

16

--

--

-7,6

57

6,9

16

Bu

ildin

gs

38,1

58

3,8

45

-(1

,507)

40,4

96

(1,3

39)

(811

)-

-(2

,150)

36,8

19

38,3

46

Le

ase

hold

Im

p10,9

19

532

-(5

5)

11,3

96

(2,1

37)

(1,0

85)

--

(3,2

22)

8,7

82

8,1

74

Eq

uip

ment

11,0

49

1,2

27

-(1

01)

12,1

75

(3,7

55)

(2,2

97)

--

(6,0

52)

7,2

94

6,1

23

Co

mpute

rs11

,556

2,1

00

-(3

8)

13,6

18

(5,2

01)

(3,0

22)

--

(8,2

23)

6,3

55

5,3

95

Fu

rnitu

re &

Fitt

ings

6,6

76

745

-(3

)7,4

18

(2,6

98)

(1,3

84)

--

(4,0

82)

3,9

78

3,3

36

Mo

tor

Vehic

les

8,7

02

96

-(3

05)

8,4

93

(2,8

11)

(1,5

34)

--

(4,3

45)

5,8

91

4,1

48

Wa

ka614

-600

-1,2

14

(150)

(92)

--

(242)

464

972

Art

work

912

55

--

967

--

--

-912

967

Lib

rary

Books

2,8

61

561

--

3,4

22

(585)

(465)

--

(1,0

50)

2,2

76

2,3

72

WIP

3,0

72

2,5

40

-(5

,522)

90

--

--

-3,0

72

90

Tota

l PP

E10

2,17

611

,701

600

(8,2

72)

106,

205

(18,

676)

(10,

690)

--

(29,

366)

83,5

0076

,839

La

nd

and B

uild

ings

were

valu

ed b

y Jo

nes

Lang L

ase

lle L

td (

Regis

tere

d V

alu

ers

), a

s at 31st

Marc

h, 2006.


12. Depreciation

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Buildings 1,142 1,023 994 811

Leasehold Improvement 1,116 1,109 1,101 1,085

Equipment 2,322 2,113 2,515 2,297

Computers 2,386 2,106 3,458 3,022

Furniture & Fittings 1,281 1,241 1,426 1,384

Motor Vehicles 1,638 1,507 1,678 1,534

Waka 110 110 92 92

Library (38) (38) 465 465

Loss on Sale 153 126 992 992

VLC 599 599 - -

Amortisation (note 13) 1,063 226 608 152

Total Depreciation 11,772 10,122 13,329 11,834

13. Programme Development

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Balance at Beginning of Year 3,164 670 3,518 822

Capitalisation During the Year 2,430 2,265 254 -

Amortisation (note 12) (1,063) (226) (608) (152)

Balance at End of Year 4,531 2,709 3,164 670

Programme development costs were incurred in developing Lifeworks, Mauri Ora programmes, Certificate in Small

Business Management, First Steps to Business and Te Ara Reo Mäori.

14. Investment in MO1 Limited

MO1 Limited is a fully owned subsidiary of Te Wänanga o Aotearoa and is in the business of education. The balance

date of the company is 31 December. The results of MO1 Limited are incorporated in the group financial statements.


15. Reconciliation of Year to Date Surplus to Operating Activities Cashflow

Group 2006

$000

Parent 2006

$000

Group 2005

$000

Parent 2005

$000

Year to Date Surplus/(Deficit) (15,987) (22,218) (9,656) (14,853)

Add Depreciation/Losses on Disposal 11,772 10,122 13,329 11,834

Add Investment Property (1,020) (1,020) - -

Add Loss of Foreign Exchange 11 11 - -

(5,224) (13,105) 3,673 (3,018)

Add Movements in Working Capital:

Debtors (3,193) 1,936 3,929 1,418

Prepayments 433 433 1,819 1,819

Inventory 3,533 4,160 3,087 3,057

Creditors 2,735 3,066 (18,450) (6,438)

Employees (1,133) (1,136) 641 530

Cash Flows From Operating Activities (2,849) (4,646) (5,301) (2,633)

16. Financial Instruments

Financial instruments which may subject Te Wänanga o Aotearoa to interest rate risk relate to overdrawn bank

balances. To limit the amount of interest rate risk exposure, Te Wänanga o Aotearoa has provided to their bankers the

right of offset between credit funds held by the bank against any overdrawn balances.

In 2006 Te Wänanga o Aotearoa had a US$ Account with a closing balance of US$241,749 (2005 - $231,902). The

exchange rate as at 31 December, 2006 of 0.7137 (2005 - 0.6915) was applied. The $US bank account was closed in

October 2007. This account was in breach of the Education Act 1989.

The Crown provided the institution with a $20 million funding facility in early 2005 to enable the institution to meet

its financial obligations. This facility is controlled by the Crown Manager. The facility has been used as a short term

overdraft facility to fund working capital shortfalls. The facility has been rolled over periodically in both of the 2005

and 2006 financial years. In May 2005 the organisation drew down $12 million of the $20 million facility. In July 2005

$6 million of this facility was repaid to the Crown. The facility was reduced from $20 million to $10 million in 2006 and

expired on 30 November, 2007. The interest rate is fixed at 8%. The interest is payable monthly.

BNZ have committed a cash advance facility of $10 million to Te Wänanga o Aotearoa. This was due to be received in

January 2008; however, it cannot be used until the 2006 accounts are signed.

17. Mortgage - Landcorp Investments Limited

The loan from Landcorp Investments Limited is secured by way of a mortgage on the land and buildings at 15 Canning

Crescent, Mängere. The interest rate is fixed at 4%. The interest and principal are repayable on a half-yearly basis

by equal payments of $22,050. The mortgage matures on 31 December, 2034. As at 31 December, 2006 the current

mortgage liability is $14,804. At this point no Ministerial approval for this loan has been obtained. This is in breach of

s192 of the Education Act 1998. The mortgage was repaid on 17th September, 2007.


18. Early Learning Centres

During the 2006 financial year, Te Wänanga o Aotearoa received grants from the Ministry of Education for Early

Learning purposes.

Ministry of Education funds received can be accounted for the following way:

Apakura Te Käkano

2006 2005

MOE Funding Received

Bulk Funding 244,000 179,086

Incentive Funding

Low Socio Economic 4,233 3,433

Special Needs 3,704 3,004

Language & Kaupapa 1,800 1,800

Training 3,762 2,165

TOTAL MOE Funding Received $257,499 $189,488

Funds applied to:

Salaries 257,499 189,488

$257,499 $189,488

Raroera Te Käkano

2006 2005


Bulk Funding 106,039 106,903

Incentive Funding





Funds applied to:

Salaries 117,924 113,040

$117,924 $113,040


Manukau Te Käkano

2006 2005


Bulk Funding 91,674 149,993

Incentive Funding



Language & Kaupapa 750 1,800


Funds applied to:

Salaries 97,343 160,135

$97,343 $160,135

Te Rau Oriwa

2006 2005


Bulk Funding 144,258 109,516

Incentive Funding






Funds applied to:

Salaries 160,108 124,260

$160,108 $124,260

Raroera Te Puäwai

2006 2005


Bulk Funding 120,012 98,105

Incentive Funding






Funds applied to:

Salaries 135,053 110,811

$135,053 $110,811


Building Programme Grants

2006 2005

Unspent Building Programme Grants as at 01-01-06 - 836,347

Additional Grants Received - -

Repayment of Building Grant to Ministry - (836,347)

Building Grants Applied to the Building Programme - -

Unspent Building Programme Grants as at 31-12-06 - -

19. Crown Loan

Over the course of 2005, 2006 and 2007 the Crown has provided ongoing financial support to the institution.

The support has been in the form of a working capital loan facility. The current facility of $6 million was repaid by 30

November, 2007.

The funds are currently held in an interest bearing account controlled by the Crown Manager. It has not been

necessary to draw down on these funds during the course of the year.

The net cost of the interest on the loan was $479,998 in 2006 (2005 - $101,549).

20. Related Party Transactions

20.1 Unite Incorporated

Unite Incorporated is a trade union with a presence throughout a number of main centres in New Zealand. The

Secretary of Unite Incorporated is Matt McCarten who was a member of the Council of Te Wänanga o Aotearoa in

2006.

In November 2006 the Council ratified an agreement whereby Te Wänanga o Aotearoa entered into a collaboration

pilot project with Unite Incorporated. Under this project Te Wänanga o Aotearoa offers a suite of programmes to

members and staff of employers within the Unite network.

The pilot project is supported by a full business case and Te Wänanga o Aotearoa receives an appropriate level of

financial return on the project.

Under the agreement, Te Wänanga o Aotearoa pays an amount of $620 per enrolment to Unite Incorporated to cover

the following, inter alia:

• marketing, advertising, enrolment and other administrative services;

• provision of serviced premises in central Auckland inclusive of all outgoings, security and reception (These premises

are leased by Unite Incorporated from an independent third party although the lease is guaranteed by the

Aotearoa Institute);

• dual branding of the premises;

• full access to the premises for students; and

• ongoing pastoral care for students.

Te Wänanga o Aotearoa is responsible for the cost of the original set-up of classroom space including infrastructure

systems and all matters of education delivery and compliance.

The first enrolments under this pilot project were taken in November 2006 and further opportunities under this


relationship are currently being investigated. During 2006 $120,095 was paid to Unite under this agreement.

20.2 Aotearoa Institute Te Kuratini o Ngä Waka Trust Board (Aotearoa Institute)

In March 2005 Mr Brian Roche was appointed Crown Manager by Te Wänanga o Aotearoa Council. In this position the

Council delegated to him all financial powers within the organisation. As a consequence of this appointment Aotearoa

Institute ceased to be considered a related party.

» Governance

There is now no common membership of the two Boards. In September 2006, Te Wänanga o Aotearoa entered

into an agreement with GTL Investments Limited to provide management services to MO1 Limited which included

the services of Kingi Wetere. He was appointed to the position of General Manager, MO1 Ltd in February 2007.

Kingi Wetere is a member of the Board of Aotearoa Institute. (2005 - The governing bodies of Aotearoa Institute and

Te Wänanga o Aotearoa had two members in common. There were also five senior employees of Te Wänanga o

Aotearoa on the Board of Aotearoa Institute. Aotearoa Institute’s financial operations are, however, separate and

distinct to that of Te Wänanga o Aotearoa. All material transactions between the two entities are charged at a fair

market rate.)

» Property

Aotearoa Institute continues to lease buildings to Te Wänanga o Aotearoa at commercial rental rates however this is

no longer a related party transaction (2005 - $1.7 million).

Te Wänanga o Aotearoa previously had a claim against Aotearoa Institute for leasehold improvements on the

properties leased from Aotearoa Institute. This matter was settled as part of the December 2006 agreement between

the parties (refer below).

» Advances

During 2001 an advance of $3.1 million was made to Aotearoa Institute. Repayment of this advance was settled

as part of the December 2006 agreement between the parties (refer below). At the date of signing these financial

statements there were no further amounts outstanding.

» Settlement between Te Wänanga o Aotearoa and Aotearoa Institute

In December 2006 agreement was reached between the two parties whereby all claims between the two parties were

settled. As part of the settlement the following occurred:

• All claims made by Aotearoa Institute with respect to Intellectual Property and amounts due to Aotearoa Institute in

recognition of their contribution to the founding of Te Wänanga o Aotearoa were withdrawn.

• All amounts due to Te Wänanga o Aotearoa with respect to the trade rebates, loans and advances were extinguished.

• The claim by Te Wänanga o Aotearoa with respect to leasehold improvements was withdrawn.

• Te Wänanga o Aotearoa has conditionally agreed to sell the Glenview International Hotel and Conference Centre to

Aotearoa Institute in June 2008 (or before if possible) at the then market value. As part of the settlement a market

rent of $1.3 million was imputed into the final settlement.

• Aotearoa Institute agreed to sell Te Wänanga o Aotearoa the properties currently leased at Te Rapa, Malfroy Road

(Rotorua) and Apakura (Te Awamutu) in June 2008 (or before if possible) at the then market rates.

• The two parties agreed to enter into an agreement with respect to the future licensing of the Greenlight literacy

programme within New Zealand. Under the agreement, a separate subsidiary of Aotearoa Institute, Arrowmight

International Limited, is acting as agent of a Cuban organisation, IPLAC, the developer of the programme in

conjunction with Te Wänanga o Aotearoa. Te Wänanga o Aotearoa will pay 10.5% of any future revenue derived from

the programme to Arrowmight in consideration of any intellectual property and other claims IPLAC might have for

the programme.


• All ongoing leases between the two parties were to be determined at market value on the basis of a three year lease

with a right of renewal for a further three plus three years. The leases were signed on 28 June, 2007.

20.3 OMA Investments Limited (GTL Investments Limited since 4 April, 2006)

Te Wänanga o Aotearoa and MO1 Limited continue to purchase student learning resources from OMA Investments

Limited, which is a fully owned subsidiary of Aotearoa Institute. OMA Investments Limited also continues to manage

and distribute the inventory on behalf of Te Wänanga o Aotearoa and MO1 Limited. This is no longer a related party

(2005 - $1.527 million including GST).

(2005 - Rongo Wetere was Tumuaki of Te Wänanga o Aotearoa until December 2005. William Wetere and Kingi

Wetere are sons of Rongo Wetere. Rongo Wetere, William Wetere and Kingi Wetere were all, at one time, directors of

both OMA Investments Limited and MO1 Limited.

(2005 - Kingi Wetere was in a senior position in Te Wänanga o Aotearoa until April 2005.)

In September 2006, Te Wänanga o Aotearoa entered into an agreement with GTL Investments Limited to provide

management services to MO1 Limited which included the services of Kingi Wetere. He was appointed to the position

of General Manager, MO1 Ltd in February 2007.

In late 2004 OMA Investments Limited issued Te Wänanga o Aotearoa with a trade rebate of $3.2 million including

GST. Repayment of this rebate has now been effected either through subsequent transactions or as part of the

December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa Institute (refer Note 21.2).

20.4 Glenview International Hotel and Conference Centre Limited

The Glenview International Hotel and Conference Centre Limited (“the company”) is a full owned subsidiary of

Aotearoa Institute. The company leases from Te Wänanga o Aotearoa the accommodation and conference areas of

the Glenview complex. The company is no longer a related party.

As at Balance Date no lease payments had been made by the company for the use of this space. This matter was

subsequently settled as part of the December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa

Institute (refer Note 21.2).

20.5 Ora Limited

Ora Limited is no longer a related party. During 2006 Te Wänanga o Aotearoa paid $13.145 million to Ora for the

provision of this programme. In 2006 as part of a wash-up of transactions it was established and agreed that Ora

Ltd owed Te Wänanga o Aotearoa $2.3 million (excluding GST). This amount was repaid by September 2007. Susan

Cullen is the sister of Kingi Wetere. Ora Limited has no dealings with MO1 Limited. (2005- Susan Cullen (daughter of

Rongo Wetere) is the sole shareholder and director of Ora Limited. Ora Limited has a sub-contracting arrangement

with Te Wänanga o Aotearoa to provide the Kiwi Ora programme to new immigrants to New Zealand. During 2005 Te

Wänanga o Aotearoa paid $15.26 million (excluding GST) to Ora Limited for the provision of this programme.)

20.6 Wairau Property Developments Limited

Wairau Property Developments Limited is no longer a related party however Te Wänanga o Aotearoa continued to

lease property from them during 2006. All leases between the two parties were terminated in 2007. (2005 - $104,965).

(Susan Cullen is the sole shareholder and one of the directors of Wairau Property Developments Limited.)

20.7 Power Chill NZ Limited

In 2006 Power Chill NZ Limited was no longer a related party; however, Power Chill NZ Limited continued to


undertake work for Te Wänanga o Aotearoa and MO1 Limited (2005 - $90,440). (Kingi Wetere and William Wetere

have a significant ownership interest in Power Chill NZ Limited. Kingi Wetere and William Wetere are also directors of

this company).

20.8 Aranui (2003) Limited

During 2006 there were no transactions with Aranui (2003) Limited (2005 - $145,875). (Ara Wetere is the brother of

Rongo Wetere. Ara is the sole director and shareholder of Aranui (2003) Limited. Aranui (2003) Limited has provided

landscaping, grounds maintenance, drainage, tar sealing and fencing services to Te Wänanga o Aotearoa.)

20.9 MO1 Limited

MO1 Limited is a wholly owned subsidiary of Te Wänanga o Aotearoa. The Board of MO1 Limited is appointed by the

Council of Te Wänanga o Aotearoa. MO1 Limited provides educational services for Te Wänanga o Aotearoa and Te

Wänanga o Aotearoa is part of the MO1 Limited provider network. During 2005 Te Wänanga o Aotearoa paid MO1

Limited $23,999,288 for these services and MO1 Limited paid Te Wänanga o Aotearoa $1,891,397.

During 2006, MO1 Limited invoiced Te Wänanga o Aotearoa $22,805,890 for these services Te Wänanga o Aotearoa

invoiced MO1 Limited $1,963,227.

At balance sheet date Te Wänanga o Aotearoa had a balance due to MO1 Ltd of $19,084,679 (2005 - $13,656,385)

and a balance due from MO1 Ltd of $25,826 (2005 - $313,583).

21. Legislative Compliance

Te Wänanga o Aotearoa breached the Crown Entities Act 2004, in that its audited statements were not available within

4 months of 31 December, 2006.

Te Wänanga o Aotearoa breached Section 192 of the Education Act which requires that any mortgages obtained by a

tertiary institute be approved by Secretary of Education. Te Wänanga o Aotearoa did not obtained approval from the

Secretary for the mortgage on a property in Mängere.

22. Subsequent Events

22.1 Kaihautü Restructure

During 2007, the Executive Management team (Kaihautü) was restructured. This resulted in the executive being

reduced from 7 members down to 3 plus the General Manager of MO1 Ltd.

22.2 Banking Facilities

On 30 November, 2007 Te Wänanga o Aotearoa repaid the $6 million Crown Loan as part of the terms of the Crown

departure.

The BNZ has committed a cash advance facility to Te Wänanga o Aotearoa of $10 million. This facility will be made

available once the 2006 accounts have been signed. Given cash forecasts for the next 12-18 months it is unlikely any

drawdown will be required.

22.3 Crown Manager Transition and Financial Delegations Handover

In March 2007, a plan for the transition of the Crown Manager was submitted to Council and approved. This plan included

a timeframe for the handover of partial and then full delegations back to Te Wänanga o Aotearoa Council and management.

From March 2007 to December 2007 this plan and the handover was phased in.

70 - Statement of Commitments and Contingencies

At the 14th December, 2007 Council meeting, the Council passed a resolution which approved the full handover of those

delegations back to the Council, the CEO/Pouhere and selected members of the Te Wänanga o Aotearoa senior management

team. In conjunction with this handover, the transition plan for the Crown Manager continues to be implemented with the aim

being that completion will occur some time in the first half of 2008 once various tasks and milestones have been met.

CommitmentsNon-cancellable Operating Leases

Buildings

2006

$000

2005

$000

Not later than one year 2,397 2,974

Later than one year and not later than two years 1,483 2,045

Later than two years but not later than five years 2,709 3,786

Later than five years - 520

ContingenciesPersonal Grievances

As at 31 December, 2006 there were 14 open personal grievance claims against Te Wänanga o Aotearoa. Of these

14 claims, 7 are still active. They are considered to be low risk and unlikely to proceed.

Te Rapu Mätauranga

As at 31 December, 2006 there was a dispute between Te Wänanga o Aotearoa and Te Rapu Mätauranga over the

delivery and development of Greenlight Programme. The maximum financial exposure is $110,000.

Software Educational Resources Ltd (SERL)

As at 31 December, there was a dispute between Te Wänanga o Aotearoa and SERL over termination of the contract.

The estimated maximum financial exposure is $220,000.

There are no other known contingent liabilities at balance date for the group.

Statement of Commitments and Contingenciesas at 31 December, 2006

2006 Annual Report

Documents

Transcript of 2006 Annual Report