2004 annual report

- 1

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

Date of issue: 31st August, 2007

2 - Ko Te Kaupapa o Te Wänanga o Aotearoa

Ko Te Kaupapa o Te Wänanga o Aotearoa Philosophy

Ki te whakawhiwhi i ngä mea angitü, ä, i ngä akoranga tino teitei katoa mä ngä Mäori me ngä iwi o Aotearoa me te ao

Ki te waihanga i tëtahi taiao hei akoranga tikanga Mäori

Ki te tautoko, ki te whakahau, ki te ärahi 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 whakawhiwhi i te mea akoranga whai kiko

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

Charter: 1st January, 2004 – 31st December, 2007

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

To provide practical learning experiences

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

Ko Te Uaratanga o Te Wänanga o Aotearoa - 3

Charter: 1st January, 2004 – 31st December, 2007

Ko Te Uaratanga o Te Wänanga o AotearoaMission Statement

Ko 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, tä rätou reo, tä rätou 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 anö

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

4 - Table of Contents

Table of Contents

Council Members .06

Management Personnel .07

Te Mana Whakahaere (Council) Chairperson's Report .08

2004 Year in Review .10

Te Panekiretanga o Te Reo .12

Degree in Whakairo .12

Mahi Ora Evaluation .13

Performance Based Research Fund Results .13

Research .14

Certificate in Small Business Management .14

Campus Reports .15

Manukau Campus – Mängere, Auckland .15

Rähui Pökeka Campus – Huntly .15

Raroera Campus – Hamilton .15

Apakura Campus – Te Awamutu .16

Te Arawa Campus – Rotorua .16

Maniapoto Campus – Te Kuiti .16

Tokoroa Campus – Tokoroa .16

Whirikökä Campus – Gisborne .17

Papaiöea Campus – Palmerston North .17

Todd Park Campus – Porirua .17

Tauira Information .18

Overview .18

Tauira Participation .18

Tauira Demographics .18

Tauira Achievement .20

Table of Contents - 5

Employee Information .21

Employee Numbers .21

Age Profile .21

Gender Profile .21

Ethnicity Profile .21

Statement of Service Performance .22

Educational Activities and Learner Outcomes .22

Research Management .26

Treaty of Waitangi .28

Meeting the Needs of Under-represented Groups .29

Collaboration and Cooperation with Other Organisations .31

Links with Industry, Mäori, Pacific Peoples and Other Communities .32

Equal Employment Opportunities .33

Quality Improvement .33

Financial Performance Indicators .35

Financial Report .36

Financial Review .36

Statement of Responsibility .38

Report of the Auditor-General .39

Statement of Accounting Policies .42

Statement of Financial Performance .47

Statement of Movements in Equity .48

Statement of Financial Position .49

Statement of Cashflows .50

Financial Ratios .51

Notes to the Financial Statements .52

Statement of Commitments and Contingencies .70

6 - Ngä Mema o Te Mana Whakahaere - Council Members

Ngä Mema o Te Mana WhakahaereCouncil Members

Chairperson

Craig CoxheadB Soc Sci, LLB (Hon), LLM (Waikato)

Ministerial Appointment

Members

Dr Rongo WetereHon PhD (Sinte Gleska), Hon PhD (AUT), ONZM, FNZIM

Tumuaki / Chief Executive

Bruce BryantB Com, M Tax S (Hons.), MBA, CA(PP), FNZIM, MRSNZ


Tania HodgesRPN, B Soc Sci, PG Dip Mgt St, MBA (Distinction)


Bruce MartinBA, FNZIM


Lloyd AndersonDip Dairy Farming, Reg Comp Nurse, Adv C TARM

Co-opted Member

Eleanor Barton Co-opted Member

Arana Collett Co-opted Member

Mana ForbesDip T, TTC

Co-opted Member

Barry Hopkins Co-opted Member

Harold ManiapotoNZCD

Co-opted Member

Carol NinDip Comp Ed

Co-opted Member

Rewi PanapaDip Comp Nurse, B Nursing

Co-opted Member

Rev. Napi WaakaDip Tchg, O.B.E. Adj. Professor – Cultural Advisor

Co-opted Member

Richard BatleyC.A. BMS University of Waikato

Co-opted Member

Advisors

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

Kaumätua – CulturalAdvisor

Graeme McNallyM Com (Hons), FNZIM, IMC

Ministerial Advisor

Tangata Kaiwhakahaere - Management Personnel - 7

Tangata KaiwhakahaereManagement Personnel

Dr Rongo WetereHon PhD (Sinte Gleska), Hon PhD (AUT), ONZM, FNZIM

Tumuaki / Chief Executive

Min MarshallExec MBA (Distinction), PG Dip Mgt St, BS Com

Executive Director

Bentham OhiaExec MBA, BA, Dip T

Executive Director

Dr Neville WithersPhD, B Agr Sc

Executive Director

Kingi WetereNZCE

Executive Director

8 - Te Mana Whakahaere (Council) Chairperson’s Report

Tënä rawa atu koutou i runga i o tätou tini aituä, o ia marae, o ia marae, kua whetürangihia. Kei te mihi atu, kei te mihi atu. Rätou te hunga mate ki a rätou. Tätou te hunga ora ki a tätou. Kei te mihi hoki ki tö tätou Arikinui, Te Ata-i-rangi-kaahu. Tënä anö tätou katoa.

It is, again, a pleasure to provide the Chairperson’s report for Te Wänanga o Aotearoa on behalf of Te Mana Whakahaere. During the 2004 year, Council continued to be proud of the way our institution expanded the boundaries of tertiary education. Our approach to programme development and delivery continues to ensure opportunities exist for all New Zealanders, throughout the country, to advance their professional development through education. Te Mana Whakahaere worked hard to support the dynamic approach of staff, while strengthening reporting to the Tertiary Advisory Monitoring Unit.

As in 2003, Te Mana Whakahaere were supported and assisted by our Advisor, Graeme McNally, to continue improving the governance of our organisation. To this end, Te Mana Whakahaere was involved in TAMU Governance Induction Training (a governance induction training package for new councillors).

Te Mana Whakahaere also conducted a review of the council constitution, restructuring of council membership, review of council committee structures, reconsideration of the format and timing of council meetings, development of a council handbook, adoption of standing orders, and completion of a council performance review.

We welcomed Richard Batley to Te Mana Whakahaere during the second half of the year. Richard offers a range of public and private sector skills and experience. During 2005, we will also look forward to a new ministerial appointment. The overall aim is to maintain a high standard of membership with a balanced mix of excellent capabilities and skills.

A significant event in Wänanga history was the meeting of council members from all three Wänanga - Te Wänanga o Aotearoa, Te Whare Wänanga o Awanuiärangi and TeWänanga o Raukawa. This was an opportunity for council members from the three wänanga to participate in a jointTe Mana Whakahaere training session that looked specifically at issues common to wänanga.

The 2004 financial year, however, was a period when politicalscrutiny and criticism of the institution increased in frequencyand ferocity. This had a very real impact on our ability to function as a constructive, pro-active organisation. This political scrutiny contributed, in part, to the delay in the tabling ofthis report, as did our strong commitment to address the issues raised by the Office of the Auditor-General in its “Inquiry into Certain Aspects of Te Wänanga o Aotearoa”. Another factor was our debate with the auditors about their qualification that appears in this report.

We believe that the, at times, fierce political criticism endured by Te Wänanga o Aotearoa during the year was also thecatalyst for application of what Council would consider unrealistic reporting required by the Auditor-General’s audit service provider, Deloitte, in terms of the documentation requested and questions requiring answers. This has, in part, resulted in Te Wänanga o Aotearoa this year receiving a qualified audit for the first time in its history, a stark variation from the position taken by Deloitte in the past.

This process has been a lengthy and expensive exercise, and there remains very real concern around the unhelpful impression the Auditor-General’s audit opinion may create for staff, students, iwi, stakeholders and the market place.

Te Mana Whakahaere, however, has continued to be constructive during times of increased inspection and has sought to improve systems to ensure it is meeting appropriate standards. In December 2004, the Education and Science Select Committee released their report following their visit earlier in the year. While providing a number of recommendations and suggestions, the committee’s conclusion was positive. Te Wänanga o Aotearoa is described as:

“an innovative education institution that provides and deliv-ers programmes and courses that target the educational needs of groups who have previously not been well catered for by other institutions”.

Despite this positive appraisal, the effects of high profile criticism and scrutiny did, for the first time in the organisation’s history, impact on EFTS achieved for 2004. EFTS declined from 34,280 in 2003 to 29,671 in 2004, having a flow-on effect in terms of our financial performance and impacting on

Te Mana Whakahaere (Council) Chairperson’s Report

Te Mana Whakahaere (Council) Chairperson’s Report - 9

the profitability of the institution through reduced revenue. This was compounded by expenditure that exceeded budget resulting in a loss for 2004. Additional factors that contributed to the loss included, among other things, costs associated with the re-development of the Glenview Tavern in Hamilton as a library for the Wänanga, the writing-off of development costs of the Greenlight literacy programme and a software development project. The loss was also due to the rationalisation of property and other relationships between the Wänanga and the Aotearoa Institute.

The result is well below the expectations of Te Mana Whakahaere. In all, Te Wänanga o Aotearoa recorded a disappointing 2004 financial result.

During 2004, we appreciated the support, commitment andcontributions of council members and Graeme McNally -Ngä mihi ki a koutou katoa. We would also like to acknowledge the contribution of Carol Beckett (secretary to the Te Mana Whakahaere). Thank you, Carol, for your tireless commitment - Ngä mihi nui ki a koe.

Our Tumuaki continued to carry the challenges, strains and pressures of managing the largest tertiary institution in Aotearoa - Ngä mihi nui ki a koe e te Matua, koutou ko tö tïma whakahaere.

Te Mana Whakahaere once again extends many thanks to all staff for their tireless commitment and contributions during 2004. It is through the efforts of staff that retention and completion rates continued to strengthen. Tens of thousands of students, despite some unhelpful and high profile criticism, continued to commit to the nurturing andembracing educational experience provided by Te Wänangao Aotearoa.

Finally, to our tauira, congratulations to those who graduated in 2004. Kia kaha to those who continue with their studies in 2005. We wish you every success and look forward toseeing you at your graduation. To the many tauira who enrolled with Te Wänanga Aotearoa for the first time in 2004,we congratulate you on taking a step towards furthering your education and we look forward to providing the

comprehensive educational experience that more than

100,000 tauira throughout the Aotearoa have experienced and come to expect from Te Wänanga o Aotearoa.

Craig CoxheadChairperson Te Mana Whakahaere

10 - Ngä Arotake o te Tau - 2004 Year in Review

Ngä Arotake o te Tau 2004 Year in Review

E ngä iwi whänui o te motu nei, tënä rä koutou katoaTe Wänanga o Aotearoa has become a major participant in the tertiary sector in Aotearoa New Zealand in terms of its size and its coverage throughout the country. The institution has been the subject of much scrutiny by government bodies during the past few years and has come under the media spotlight after questions were raised in the House during the early months of 2005. Although we have attempted to provide answers, there is a feeling that Wänanga Mäori, and Te Wänanga o Aotearoa in particular, are not well understood by some stakeholders.

One of our immediate priorities is to work with Crown agencies to define what a wänanga is and where wänanga fit within the confines of current legislation and the Tertiary Education Strategy. These efforts are balanced by accommodating non-governmental stakeholder expectations as Te Wänanga o Aotearoa strives to earn its position as provider of choice for many iwi and communities. The outcome of these discussions will ultimately determine our place in the tertiary landscape.

Te Wänanga o Aotearoa has operated differently from other TEIs; it has pushed boundaries and been innovative. At times, it has appeared to threaten other tertiary providers merely by its presence within a community. It has done so to provide services for people who would not otherwise have been participants in tertiary education, i.e., those with educational, personal and social needs that were not being met by traditional educational models. An attitude of openness

towards all iwi and cultures, through the consistent application of the principles of tikanga Mäori and ähuatanga Mäori, has been a factor in our growth. We have not had an approach of ‘by Mäori for Mäori’ that is exclusive to Mäori, but have recognised that traditional Mäori values benefit all, irrespective of race, since we all have basic needs that must be met if we are to lead fulfilling lives.

We have developed some key programmes that address community needs in literacy, small business management and computing. These programmes use home-based delivery methodologies to further reduce barriers to tertiary education. The programmes are offered at an introductory level and provide pathways to further education within Te Wänanga o Aotearoa or with other TEIs at more advanced levels.

During the past year, we entered into agreements for the delivery of entry level qualifications with Te Whare Wänanga o Awanuiärangi, The Open Polytechnic of New Zealand, Northland Polytechnic and the Southern Institute of Technology. These arrangements create pathways and opportunities for tauira where regional TEIs were not currently offering programmes of a similar nature. They also maximise the utilisation of resources available to each institution in a non-competitive manner.

Each of the three members of Te Tau Ihu o ngä Wänanga successfully submitted a programme for approval by the World Indigenous Higher Education Consortium (WINHEC) Accreditation Panel. Our contribution was Te Arataki Manu Körero, a programme designed for kaumätua to share and learn tikanga, kawa, whakawhanaungatanga, karakia, waiata and other areas of traditional Mäori culture

Ngä Arotake o te Tau - 2004 Year in Review - 11

and values. The programme concept and design enables elders of all nations and indigenous groups to participate in the reclamation and documentation of their cultural heritage so that the knowledge can be passed on to future generations.

On the financial front, a number of internal and external factors have led to our worst result since becoming a wänanga in 1994 and we must learn from the experiences that have presented themselves in 2004. Lower than expected EFTS consumption and an inability to meet expected enrolment targets in certain areas accounted for a reduction in revenue, whilst staffing levels increased despite reduced enrolments. At the same time, investment in programme development and capital infrastructure created a drain on working capital that will need to be managed carefully until reserves can be rebuilt. It is accepted that change is required to solidify our management practices and financial position and steps have been taken to achieve this objective. We are still hopeful that the advancement of the $20 million suspensory loan, negotiated in the Deed of Settlement with the Crown in 2001 and now due, will be honoured. This will provide a solid financial foundation as we move forward.

Highlights for the 2004 year include:

development of effective internal audit processes to • minimise risk;

improved tauira evaluation returns;•

improved evaluation process for monitoring action plans;•

improved policy awareness and staff motivation to ‘know’ • about policies; and

improved satellite management and satellite involvement • with Te Wänanga o Aotearoa.

The following programmes were approved and/or accredited during 2004:

Bachelor of Iwi Environmental Management;•

Certificate in Eco-cultural Tourism;•

Diploma in Te Arataki Manu Körero – Level 5; and•

Bachelor of Social Work (Bi-culturalism in Practice).•

The 2004 year saw further steps being taken to strengthen research activity at Te Wänanga o Aotearoa. The Research Support Unit completed its first year of operation, foster-ing a sound research culture across the institution. Te Wänanga o Aotearoa also continued to participate in the Performance Based Research Fund (PBRF). Information about this is contained later in this report.


Te Panekiretanga o Te ReoTe Wänanga o Aotearoa is honoured to support the establishment of Te Panekiretanga o Te Reo - The Institute of Excellence in Mäori Language. It is envisioned that the institute will take on a leadership role in the revitalisation and regeneration of the Mäori language for people with high levels of fluency.

The institute gathers together Mäori language experts who provide high-level Mäori language training primarily for teachers, but also for translators, interpreters, broadcasters, journalists and other specialist career fields. The teaching team includes Dr Tïmoti Käretu (Director), Pou Temara (Associate Director) and Professor Wharehuia Milroy.

The pilot programme was delivered and evaluated between July 2004 and January 2005. Twenty-eight tauira were chosen from a wide range of professions and iwi backgrounds. Each candidate demonstrated a commitment to increasing their knowledge of and fluency in the Mäori language. Eight of the twenty-eight tauira were Te Wänanga o Aotearoa staff. The institute will inspire these people to strive to attain the pinnacles of Mäori language excellence. Programmes will be delivered between February and December each year, starting in 2005.

As part of its work, Te Panekiretanga o Te Reo is also planning to create a national repository of language resources, a research unit and pathways for further post-graduate study.

Degree in WhakairoTe Wänanga o Aotearoa gained accreditation to deliver Te Maunga Kura Toi (Bachelor of Mäori Art) degree programme for the first time in 2004. The programme was initially designed by Professor Kereti Rautangata and Dr Paakaariki Harrison and provides recognition for those pursuing the higher learning of wänangatanga Mäori.

The programme was piloted in 2002, with 22 tauira from around the country coming together at Apakura Campus in Te Awamutu to take up the challenge: “hei pupuru i te aho o te wänanga, hei kawe i ngä kura huna a Rua” (‘To retain the strands of knowledge, to perpetuate the hidden (mystic) schools of Rua (knowledge)).

As part of the programme and to achieve the Advanced Diploma in Mäori Art, tauira completed two beautifully carved and traditionally constructed Pätaka (‘storehouses of knowledge’). The tauira and their work are portrayed in the recently published book, Te Papa Hono Tütaki, Te Moko Tukupä Wänanga a Rua i te Whëke Rangi.

Eighteen tauira who had previously graduated from the diploma and advanced diploma in whakairo, will become the first graduates from the degree programme in December 2004. These tauira will be the first ever to be awarded a degree in whakairo.

Ngä Arotake o te Tau - 2004 Year in Review - 13

Mahi Ora EvaluationIn 2004, Mahi Ora in collaboration with the International Research Institute for Mäori and Indigenous Education, published an evaluation of the Mahi Ora programme. The data for the evaluation were obtained through surveys of 600 Mahi Ora tauira.

Overall tauira satisfaction with the Mahi Ora programme was high, at 96.3%. Tauira stated the programme helped them develop a more positive attitude (90%), supported them to find further educational opportunities (68.3%) and supported them to find work (41.4%).

Tauira rated Mahi Ora kaitiaki (tutors) very well with 83% of those surveyed rating staff as either ‘Excellent’ or ‘Good’. Tauira saw kaitiaki as positive role models within the community and felt that the non-judgemental and non-threatening approaches taken by them were key elements that encouraged tauira participation. Whanaungatanga was also a recognisable element that encouraged participation.

Resources supplied as part of the Mahi Ora programme were rated very highly, with 95.6% of tauira surveyed rating resources as either ‘Excellent’ or ‘Good’. The Mahi Ora assessment process was also rated very well, with 84.4% of tauira rating the assessment process as either ‘Excellent’ or ‘Good’. Of those raising concerns about the assessment process, most highlighted delay in the assessment process as an issue.

Mahi Ora is considered to be a programme that offers tauira the potential to bring positive change in their lives and is seen to enhance opportunities for those who are long-term unemployed. The overwhelming majority of ‘final comments’ about the Mahi Ora programme were very positive.

Performance Based ResearchFund ResultsThe Performance Based Research Fund (PBRF) is a government mechanism for funding research in degree-granting organisations. This mechanism was established in 2003 to address perceived inadequacies in the existing research funding mechanism (EFTS funding). The fund is distributed based on levels of research, not enrolments.

Te Wänanga o Aotearoa decided to participate in this type of funding in June 2003. Considering other institutions had been receiving research funding for many years, Te Wänanga o Aotearoa showed quite good results, gathering evidence portfolios (EPs) from 70 staff.

Our participation in the PBRF has put Te Wänanga o Aotearoa ‘on the map’ as a research institution and the organisation has performed creditably. We also now have data that we can use to argue our case for a more equitable process should we choose to participate in the future.

Te Wänanga o Aotearoa was the only organisation that submitted work in whakairo, raranga and waiata, areas in which our organisation obviously has a niche worthy of strong development and support.


ResearchThe key focus for 2004 was to develop processes to manage research successfully on an institution-wide scale. We began this process by establishing a definition of research in the context of Te Wänanga o Aotearoa:

Ko te kaupapa rangahau te whäinga päkaha o te möhiotanga me te mätauranga, e äta tautoko ana, e whakarangatira ana, tuatahi, i te wairua ora o te Mäori, tuarua, i te wairua ora o ngä iwi huhua o Aotearoa me te ao.

Kaupapa rangahau is the rigorous pursuit of knowledge and wisdom that supports and positively promotes the lives of Mäori, other New Zealanders and people throughout the world.

An important relationship has been developed with Ngä Pae o te Maramatanga from whom we have been successful in securing funding to build the research capacity and provide resources for our staff.

As a tertiary education institution, it is important that programmes delivered by our staff are built on research conducted by our staff. Research support staff will continue to visit campuses regularly to provide staff with support and research resources.

Certificate in Small Business ManagementDuring 2004, the Aotearoa Business School evolved to become the School of Sustainable Business Manage-ment. Of the programmes offered by the School, prob-ably none has been more successful than the innovative Certificate in Small Business Management (CSBM). The programme attracted over three thousand tauira in 2004 alone and is on track to becoming a competitive player in New Zealand’s business and management educa-tion market, delivering low cost, high-quality business education to thousands of tauira across the country.

The CSBM is a level 4 certificate and is offered as a full-time programme that runs for 36 weeks. Tauira have the option of attending classes or for those with work or whänau commitments, studying from home.

Unlike other business programmes which focus on theory, tauira in the CSBM learn valuable business skills while developing a comprehensive business plan for their own business idea.

In a survey of over 200 CSBM tauira, 85.1% of tauira already in business said that the programme had as-sisted them in their business, 75.7% of tauira said they used or referred to programme materials in the operation of their business, while 85% of respondents recom-mended the CSBM to others.

Campus Reports - 15

Campus Reports

Manukau Campus Mängere, Auckland Celebrating Culture in the Pasifika Capital of the World

The Manukau Campus includes the Gadsby Road and Canning Crescent sites and provides education to tauira in the South Auckland region. The Canning Crescent site has now seen its first full year of operation, having opened in 2003.

In 2004, the campus hosted the Trades and Industry Mäori Summit and the Welsh Minister of Education. Staff from the campus also took part in the TEC Mäori Strategic Consultation Hui and attended the launch of the TEC Pacific People’s Strategy.

A key highlight was the launch of Aotearoa One, a double-hull waka hourua (voyaging canoe), which will be used as a training vessel as part of our Kaihoe Waka programme. Aotearoa One also featured at the International Marine Trade Exhibition and Convention’s Boat Show at Epson Showgrounds.

Manukau Campus is proud to announce Richard Cooper’s attainment of a Doctorate in Fine Arts. Richard is currently Head of Department of the Buck Nin School of Fine Arts.

Rähui Pökeka Campus HuntlyOn the Banks of the Mighty Waikato

Rähui Pökeka Campus delivers education to tauira living between South Auckland and Ngäruawähia.

A major highlight for the Rähui Pökeka Campus was the opening of Te Kura Toi Taiwhanga (Arts Centre). The centre houses the three streams of the arts programmes – rauangi (visual arts), raranga (weaving) and whakairo (carving).

Raroera Campus HamiltonAt the Centre of the Heartland

The Raroera Campus in Hamilton delivers education to tauira in the Waikato region from Ngäruawähia to Te Awamutu.

2004 saw the opening of Rangiaowhia Marae on Raroera Campus by Parekura Horomia. The marae will be a valued asset for our campus and will be used extensively by Te Wänanga o Aotearoa tauira and staff, and by the wider community.

Fifteen-hundred tauira graduated from Raroera Campus during 2004, some of whom were our first graduates from Te Korowai Äkonga (Bachelor of Teaching). Graduates also included a number of tauira from our Mäori language and culture programmes delivered to Department of Corrections inmates in Tongariro and Ohura prisons.

One of our raranga (weaving) tauira won first prize in the Wearable Arts Awards at the Fieldays and was invited to attend the Nelson Wearable Arts Awards. Tauira from the Applied Sport Basketball Academy men’s team achieved second place at the National Champs. Three members of this team trialled for the New Zealand under-23 team.

16 - Campus Reports

Apakura Campus Te AwamutuHome of Te Wänanga o Aotearoa

Apakura Campus in Te Awamutu delivers education to tauira in the Te Awamutu district, and in Paeroa, Matamata, Cambridge, Otorohanga and Waitara districts.

A key highlight for the year saw Apakura Campus open an outpost in Matamata. This was achieved through collaboration with Ngäti Raukawa and Te Kaokao Roa o Patetere. Theoutpost will provide opportunities for people in the area to participate in tertiary education.

Another key highlight for the year was the graduation of eighteen tauira from the Whakairo Degree programme. The degree is the first of its kind in Aotearoa NZ.

Ongoing work with the Department of Corrections has enabled us to begin offering Te Ara Reo Mäori to youth inmates at Waikeria Prison.

Te Arawa Campus RotoruaThe Spirit of Friendship in Rotorua

Te Arawa Campus provides educational opportunities to tauira in the Rotorua and Tauranga regions, and in the Eastern Bay of Plenty, including Kawerau and Whakatäne.

During 2004, Te Arawa Campus worked collaboratively with Te Wänanga o Awanuiärangi to deliver Te Ara Reo Mäori and computing programmes at levels 2 and 3. The campus also worked with Bay of Plenty Polytechnic to deliver a variety of programmes successfully.

Highlights for 2004 include the conferral of Bachelor of Mäori Performing Arts and Bachelor of Primary Teaching degrees for the first time to tauira in the Tauranga, Rotorua and Kawerau regions. Te Arataki Manu Körero – the Kaumätua programme was also very well received as a valuable taonga by Kaumätua and Kuia of Te Arawa.

Maniapoto CampusTe KuitiCreating Change in the Heart of Maniapoto

Maniapoto Campus delivers education to tauira in the King Country, National Park and Northern Taranaki regions. Outposts in Taranaki and Taumarunui support the campus provide programmes for tauira who would otherwise have very limited access to tertiary education.

Major highlights for 2004 included the opening of a new whakairo facility in Te Kuiti and the unveiling of new carvings, tukutuku and art work at Napinapi Marae. The campus also extended its service provision in North Taranaki.

An additional highlight was the graduation of three staff members of Maniapoto Campus from the Maunga Kura Toi (Bachelor of Arts) degree, majoring in whakairo.

Tokoroa Campus TokoroaAt the Gates of the Forest

Tokoroa Campus provides education to tauira in the South Waikato and surrounding districts. During 2004, the campus relocated to a new site at the Timberlands Hotel on State Highway One in Tokoroa. The site was officially opened on the 26th April, 2004.

The campus continues to work with local iwi Tüwharetoa, Ngäti Kahungunu and Tainui to achieve its goals. Eight-hundred tauira graduated from the South Waikato and Tüwharetoa area during the year.

A major highlight saw tauira of the Bridging to Tertiary Performing Arts programme perform at Te Papa Museum and the Wellington Civic Centre.

Campus Reports - 17

Whirikökä Campus GisborneFirst to Greet the New Day

Whirikökä Campus enjoyed its first full year of operation after opening in 2003. The campus provides education to tauira in Gisborne, the East Coast, Opötiki, Wairoa and Waikaremoana

Whirikökä Campus continued to operate collaboratively with Massey University; The Open Polytechnic of New Zealand; Curtin University (Australia), Auckland University of Technology and Te Wänanga o Awanuiärangi during 2004.

Papaiöea Campus Palmerston NorthAt the Heart of the Knowledge City

The Papaiöea Campus based in Palmerston North delivers education to tauira living in the lower central North Island, including New Plymouth and Wanganui.

A major highlight for Papaiöea campus was the launch of Te Panekiretanga o Te Reo Mäori by Dr Tïmoti Karetu. This programme is explained in more detail in the 2004 Year in Review section earlier in this report.

Papaiöea Campus also supported artist Sonny Hawkins (Ngäti Porou) as he unveiled Te Wero - The Bronze Warrior Statute that adorns the newly refurbished Glenview International Hotel and Conference Centre.

Papaiöea Campus continues to operate collaborative relationships with UCOL, Massey University, Te Wänanga o Raukawa, Te Papa Museum and Te Manawa Science Gallery and Museum.

Todd Park Campus PoriruaSharing Knowledge in the Capital

Porirua Campus delivers education to tauira living in the Wellington Central and Lower Hutt areas.

2004 saw the enrolment of over 600 tauira on the Year One and Year Two Te Ara Reo Mäori programmes, highlighting the need for these programmes and the value placed on them by tauira in the communities we serve.

Porirua Campus opened a new computer facility in Lower Hutt in July 2004. This facility will provide tauira living in the Lower Hutt area with local access to computers.

The campus hosted several overseas delegations in 2004, including a Chilean delegation, members of the Commonwealth Secretariat and manuhiri (visitors) from Curtin University. Porirua campus also continued to engage with the community by supporting events such as Keep Porirua Beautiful, waka ama, Top Surf Wellington, PolyFest and Pacifica Jam.

Raranga tauira and kaiako (tutors) displayed their work at the Pätaka Art Gallery during the International Festival of Arts.

18 - Tauira Information

Tauira Information

Overview2004 has been another strong year for enrolments at TeWänanga o Aotearoa, with over three and a half thousand additional tauira coming to learn at our institution. Overall completion rates have increased across the organisation, from 66.1% in 2003 to 74.05% in 2004. This is in spite of retention rates falling slightly during the same period, from 84.13% down to 83.08%.

This section presents information relating to participation, demographics and achievement of tauira attending Te Wänanga o Aotearoa in 2004. Data and statistics for 2001 to 2003, where available, are also presented to enable comparative analyses.

Tauira ParticipationTe Wänanga o Aotearoa has been committed to increasing participation in tertiary education since its inception. The commitment of staff across the organisation to reducing barriers to education and raising foundation skills of tauirahas again generated growth in tauira numbers. Demographics of these tauira have remained relatively constant, with the exception of a shift in ethnicity, showing a reduction in the proportion of tauira Mäori attending the institution and a concomitant increase in Asian tauira.

Tauira Numbers

Figures from the 2004 single data return (SDR) show a 5.3% increase in tauira numbers in 2004. This represents a 51.2% improvement on 2002 SDR numbers and a 306.5% improvement on 2001.

The table below shows tauira numbers from SDRs for 2000 to 2004.

2000 2001 2002 2003 2004

Number of Tauira 3127 16423 44158 63389 66756

EFTS

Although the number of tauira engaging with Te Wänanga o Aotearoa increased during 2004, total consumed EFTS decreased. Data from the 2004 SDR show a 13.4% decline in EFTS consumed by the organisation. The decrease resulted from tauira choosing to take shorter programmes of study. However, consumed EFTS figures for 2004 show an increase of 42.9% on 2002 figures and 385% on 2001 figures.

The table below shows consumed EFTS from SDRs for 2000 to 2004.

2000 2001 2002 2003 2004

EFTS 1574 6118 20769 34280 29671

The decline in consumed EFTS is reflected across all campuses throughout Aotearoa NZ. This decline was offset to some extent by an increase in enrolments with the Aotearoa Business School, outreaches and satellites. The Kiwi Ora programme also saw considerable growth as tauira recognised the benefits of settlement education to improve their lives as new New Zealanders.

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 and people in the over-30 age group. 2004 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.

Tauira Information - 19

Age Profile

The age demographic of Te Wänanga o Aotearoa tauira remained relatively constant between 2001 and 2004. However, a trend is emerging with the percentage of 18-24 year olds declining as the percentage of tauira over the age of 40 years increases.

The following diagram shows age demographic statistics for 2001 to 2004.

2000 2001 2002 2003 2004

Under 18 years - 4% 2% 1% 1%

18-24 - 23% 18% 13% 11%

25-39 - 45% 44% 44% 43%

40 years plus - 28% 36% 42% 45%

Gender Profile

In-line with previous years, Te Wänanga o Aotearoa continued to attract larger numbers of females than males.

The following table shows percentages of males and females engaging with education at Te Wänanga o Aotearoa from 2001 to 2004.

2000 2001 2002 2003 2004

Male - 36% 26% 30% 33%

Female - 64% 74% 70% 67%

Ethnicity Profile

Numbers of Mäori engaging with education at Te Wänanga o Aotearoa remained strong during 2004. However, the proportion of tauira Mäori continued to decrease. To a large extent, this shift was caused by increased numbers of Asian tauira joining our language and settlement programmes.

The following table shows ethnicity statistics for 2000 to 2004.

2000 2001 2002 2003 2004

Mäori 90% 85% 77% 59% 45%

European/Päkehä 6% 9% 16% 18% 17%

Asian - 0% 1% 16% 28%

Pacific Island 3% 5% 5% 5% 7%

Other 1% 1% 1% 2% 3%

Mahi Ora and Te Ara Reo Mäori continued to attract strong numbers of tauira Mäori (over 70%). The following table shows numbers of tauira Mäori by programme.

Mäori Total Tauira % Mäori

Mahi Ora 13578 17586 77%

Kiwi Ora 33 19980 0%

Te Ara Reo Mäori 8179 11483 71%

All Other Programmes 8575 17707 48%

20 - Tauira Information

Prior Activity Profile

Although a large proportion of the tauira enrolled at Te Wänanga o Aotearoa in 2004 were in the ‘non-workforce’ category at the time of their enrolment, 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 four years. Growth in enrolments in larger programmes offered by Te Wänanga o Aotearoa is responsible for this trend.

The following table shows prior activity statistics for tauira enrolling at Te Wänanga o Aotearoa for 2000 to 2004.

2000 2001 2002 2003 2004

Non-Workforce - 53% 46% 41% 37%

Workforce - 28% 38% 41% 43%

Tertiary - 13% 10% 9% 10%

School - 4% 4% 3% 2%

Overseas - 1% 2% 6% 7%

Other - 1% 0% 0% 1%

Te Wänanga o Aotearoa continued to attract a significant proportion of second chance learners in 2004, although this number has declined each year since 2001.

The following table shows percentages of second chance learners1 engaging in study with Te Wänanga o Aotearoa.

2000 2001 2002 2003 2004

Second Chance

Learners

- 33.3% 32.6% 25.6% 18.7%

Te Wänanga o Aotearoa will continue to encourage tauira in this group to engage with tertiary education.

Tauira AchievementTauira at Te Wänanga o Aotearoa continued to perform well in their studies during 2004. The overall course retention rate for 2004 was slightly lower than previous years, but remains above 80%. However, there has been a marked improvement in the overall course completion rate, moving from 66.1% in 2003 to 74.1% in 2004.

The following table shows retention and completion statistics for the 2001 – 2004 period.

2001 2002 2003 2004

Course Retention Rate 87.2% 85.4% 84.1% 83.1%

Course Completion Rate 69.1% 67.0% 66.1% 74.1%

1 - Second chance learners are those tauira participating in education at Te Wänanga o Aotearoa who had no secondary qualifications or tertiary experience.

Employee Information - 21

In accordance with its kaupapa, Te Wänanga o Aotearoa strives to be a good employer. As part of this commitment, the organisation is inclusive of all people, regardless of culture, ethnicity, age, gender, political opinion or religious persuasion.

This section presents demographics of employees working for Te Wänanga o Aotearoa over the past five years.

Employee Numbers Full-time equivalent employee (FTE) numbers grew by 16.3% during 2004. Although total EFTS decreased by 13.4%, tauira numbers increased by 5.3% during the year. FTE numbers have grown partly to meet the needs of increased tauira numbers, but also to meet increased infrastructure requirements resulting from growth in previous years.

The following table shows numbers of FTEs for 2000 to 2004.

2000 2001 2002 2003 2004

FTEs 193.6 399.1 950 1232.4 1432.5

Age ProfileThe age profile of employees has remained constant (within 2% or less, year by year) over the past four years.

The following table shows age profiles for employees working in the organisation from 2001 to 2004.

2000 2001 2002 2003 2004

<25 - 10% 16% 14% 12%

25-34 - 27% 27% 28% 28%

35-44 - 29% 28% 29% 29%

45-54 - 21% 19% 19% 20%

55+ - 13% 10% 10% 11%

Gender ProfileThe employee gender ratio has remained relatively constant over the past four years, although the number of females working for the organisation has been growing at a rate of between 1% and 4% per year. 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 2001 to 2004.

2000 2001 2002 2003 2004

Male - 43% 42% 38% 34%

Female - 57% 58% 62% 66%

Ethnicity ProfileThe number of Mäori working at Te Wänanga o Aotearoa has increased steadily over the last four years. As a Mäori organisation, this strengthens connections with iwi and with the communities predominantly served by the organisation. It also provides day-to-day input from a key group of stake-holders into activities occurring within the organisation.

The following table show ethnicity demographic statistics for the 2001 – 2004 period.

2000 2001 2002 2003 2004

NZ Mäori - 38% 42% 44% 55%

NZ European / Päkehä - 6% 5% 6% 8%

Pacific Island - 2% 3% 4% 5%

Asian - 2% 1% 1% 2%

Other - 1% 1% 2% 2%

Not Specified - 51% 48% 43% 28%

Employee Information

22 - Statement of Service Performance

Statement of Service Performance

Educational Activities and Learner Outcomes

Whäinga One – Programme Development

Te Wänanga o Aotearoa will continue to provide international quality learning experiences in accordance with Mäori tradition and custom through programme development approved and accredited for delivery at Te Wänanga o Aotearoa.

Activity 1

Introduce new qualifications that meet the needs of learners, industry and other stakeholders

Measurement / Indicators Performance

A minimum of three Bachelor level

degree programmes

Partially Achieved

Three Bachelor degrees awaiting

final confirmation from NZQA

Implement a minimum of two

Masters degrees over the next

three years

Two Masters degrees - Master of

Education and Master of Business

Administration - are being offered

through an arrangement with

Curtin University of technology,

Perth, Australia

Activity 2

Review Academic Committee structures and processes to strengthen programme development, approval and quality assurance (including implementation and ongoing evaluation processes)


Ongoing evaluation of structures

and processes from 2004

Achieved

Programme development under-

taken following appraisal of labour

market and stakeholder needs

Partially Achieved

A process to evaluate labour

market and stakeholder needs was

developed during 2004 and will be

introduced in May 2005

Activity 3

Ensure that programmes increase existing information for learners on options following graduation (employment and education)


All programmes contain informa-

tion on future employment or

education options available on

successful completion (ongoing)

Achieved

Marketing material related to

programmes lists career

path options

Activity 4

Annual evaluation of Te Korowai Akonga (Bachelor of Teaching – Primary) and Te Tohu Maruata (Bachelor of Mäori Performing Arts) to determine viability of delivery at new sites


Annual evaluation Achieved

Whäinga Two –Technology Development

Te Wänanga o Aotearoa information technology is used to monitor and track the progress and achievement of current students and from late 2004 will begin to be used to develop databases of information - including graduate destinations.

Activity 1

Full implementation of Take2 student management system


Review of effectiveness and

further development in 2004

Achieved

Take 2 is implemented across 24

sites including satellites. Take 2

modifications continue, with plans

to upgrade to version 7 in 2005

Statement of Service Performance - 23

Activity 2

Campus administration staff support timely and efficient management of student information - particularly at peak enrolment and reporting times


On-going review and improvement

of campus level administration

Achieved

Regular reviews and audits of

procedures. Recommendations

are reviewed. Performance is

closely monitored

Activity 3

Expand information technology architecture and environment for the growing user base


Review of current information

system infrastructure to ascertain

level of service required

Achieved

ICT review commissioned and

implemented in 2004

Clearly defined roadmap devel-

oped to achieve desired technol-

ogy architecture and timescale for

implementation

Achieved

The road map for the Information

Technology restructuring has been

developed in 2004.

ICT review recommendations

being developed in 2005

Activity 4

Learner access to computers and the internet to develop their computer skills


Computing facilities accessible to

all TWoA learners through TWoA

Campuses, Computer Gyms and

Virtual Learning Centres in 2004

Achieved

Access to computers now avail-

able in multiple sites

Computer support also provided

nationwide

Whäinga Three – Participation and Achievement

Te Wänanga o Aotearoa has in place a number of objectives and measures for learner participation and achievement. Many of these measures have been in place since 1999 and are consistently met and exceeded. The range of measures is being extended through technology that will track learner achievements, including graduate outcomes and destinations. Te Wänanga o Aotearoa is committed to high learner participation, retention and success rates for learners that reflect community profiles.

Activity 1

Maintain high learner completion rates


Minimum of approximately 65% Achieved

Learner completion rate was

79.54%

Activity 2

Maintain high learner retention rates


Approximately 80% Achieved

Learner retention rate was 83.51%

Activity 3a

Ensure that campus learner profiles are more reflective of local and regional community demographic profiles


Annual Campus reports illustrate

community profile compared with

learner profile, and describes

activity to support and reflect

community profile

Achieved

Annual campus reports and other

documents have been completed

which illustrate and describe the

information


Activity 3b

Conduct on-going research and evaluation of the impact of programmes and activities on graduate destinations and wider community


NZIER completed an independent

assessment of TWoA’s impact on

the communities it serves in 2003.

Further evaluation and research to

be undertaken in 2004

Achieved

The BERL report and the Mahi Ora

evaluation conducted during 2004

furthered knowledge, research and

evaluation of the earlier report by

NZIER

Activity 4

Formalise research into the impact of Te Wänanga o Aotearoa programmes and graduates on communities


Develop pilot research indicators:

NZIER social, cultural, economic

assessment report will form the

development of ongoing research

into the impact of TWoA pro-

grammes.

Proportions of adult learners in a

community engaged in life-long

learning

Levels of community/population

proficiency in Te Reo Mäori

Participation in employment and

changing levels of unemployment

in communities

Graduate destinations within the

workforce

Begin longitudinal study looking at

socio economic indicators of effect

of TWoA – initial timeframe 2004

Achieved

A range of independent research,

to inform future programmes and

strategic development, was

commissioned in 2004

Whäinga Four – Learner/Whänau Support

Te Wänanga o Aotearoa student support services enable students and whänau to access academic and personal support. These services recognise the diversity of factors that contribute to learner success and are designed to enable students and whänau to address barriers to learning achievement.

Activity 1

Establish early learning centres at Te Wänanga o Aotearoa Campuses for Te Wänanga o Aotearoa and local community tamariki


Four additional centres operational

by 2006

Not Achieved

Target was reviewed in 2004

TWoA has rationalised its plans

by maintaining existing number of

Early Learning Centres and has no

strategy to add further Centres

Activity 2

Library information systems integrated at each Te Wänanga o Aotearoa campus


By 2006, fully integrated

centralised library established

Staff trained in use of information

systems

Students access to information

systems and training as required

Develop a library information

systems capability as necessary

to meet growing demand for

administrative and information

systems support

Achieved

Campus libraries staffed and

resourced

Staff trained and student training

package developed

Library information systems were

developed during 2004 and will be

implemented during the first quarter

of 2005.


Activity 3

Te Wänanga o Aotearoa literacy strategy


Pilot completed 2004

All students have access to the

literacy programme by 2006

Achieved

Greenlight pilot completed in 2004

Programme enrolments also begun

in 2004 in several locations

Activity 4

Enhance the Te Wänanga o Aotearoa learning experience through a strong sense of whänau and community


TWoA campus activities inclusive

of local and regional communities

(e.g., campus open days) and

that support a strong sense of

community (e.g., sports days for

students and staff) – campuses to

report annually

Achieved

More than 36 of these events were

held at various locations throughout

New Zealand during 2004

Activity 5

Ensure learner support facilities meet the needs of international students studying at Te Wänanga o Aotearoa campuses in Aotearoa


Full compliance with the Ministry

of Education mandatory Code of

Practice for the Pastoral Care of

International Students (become

signatory)

Learner support package

developed and reviewed with en-

gagement of international students

and community representatives

(that include welfare outside the

classroom)

Achieved

TWoA has complied with the

Ministry of Education Code of

Practice for the Pastoral Care of

International Students. TWoA is

currently a signatory of this code

Whäinga Five – Staff Professional Development

Te Wänanga o Aotearoa maintains international quality education through professional development of tutorial staff with the skills to support successful learner outcomes:

Activity 1

Require that all tutorial staff have, as a minimum, either recognised teaching qualifications or comparable experience skills and have adequate knowledge of the subjects they teach


All tutorial staff have recognised

qualifications relevant to the sub-

jects they teach, and/or equivalent

industry experience or expertise,

appropriate to the level they teach

All tutorial staff participate in

professional development

Partially Achieved

A comprehensive programme of

training and development was

undertaken in 2004

Over 100 staff participated in

professional development training

Activity 2a

High level of skill in the use of competency based assessment by tutorial staff teaching programmes that incorporate unit standards and wänanga units


Specific training in competency-

based assessment successfully

completed by all tutorial staff

where required (on-going)

Partially Achieved

Training & development unit has

worked closely with campus and

school HOD’s to coordinate and

arrange tutor training in specified

units


Activity 2b

Ongoing annual student evaluation and appraisal of delivery of programmes by all tutorial staff


Standard TWoA procedures and

reporting of student feedback

contributes to staff professional

development and annual perfor-

mance review

Achieved

Student evaluation procedure

was reviewed and a new process

implemented in 2004

Activity 3

Develop and roll-out a training package to support the on-going professional development of Mahi Ora kaitiaki


Training for all new kaitiaki using

the Kaitiaki Leadership Pro-

gramme (ongoing)

Achieved

Version 4 of the Kaitiaki Leader-

ship Programme was developed in

2004. All new Kaitiaki attended this

training in February 2005

Activity 4

All tutorial staff are competent in and practise Te Wänanga o Aotearoa assessment methodology


Assessment skills training for all

tutorial staff 2004 and ongoing

Ongoing training for new tutorial

staff as required

Partially Achieved

Assessment skills training were

available to all tutorial staff during

2004. 54% of the tutorial staff

attended this training

Research Management

Whäinga Six – Research

Research is critical to the ongoing quality and relevance of Te Wänanga o Aotearoa learning experiences and intrinsic to the tradition of whare wänanga Mäori. This is reflected in the legislative provisions for public tertiary education institutions where wänanga are described as:

“characterised by teaching and research that maintains, advances, and disseminates knowledge and develops intellectual independence, and assists the application of knowledge regarding ähuatanga Mäori according to tikanga Mäori.” s162(4)(b)(iv)

To advance, disseminate, and maintain knowledge through teaching and research Te Wänanga o Aotearoa is increasing the participation of staff in research activities and building capability and capacity internally that supports a strong research culture.

Activity 1

Review draft research policies and ethical guidelines for Te Wänanga o Aotearoa research practices


Policies agreed and in use by staff

and students

Review of policies in 2005

Achieved

The draft policy has now been set

and has been in place since July

2004


Activity 2

Increase staff participation in research


Annual staff participation increases

of 5% measured through records

of recognised research outputs

Achieved

First two research registers (2002

and 2003) now published

Activity 3

Provide training in research processes to include ongoing skills assessment


All tutorial staff involved in degree

programmes trained in developing

research proposals

Partially Achieved

All tutorial staff were invited to

participate in training

A new section about research has

been included in the Performance

Appraisal Forms

Activity 4

Develop relationships and collaborate with iwi on research projects


Contract and complete research

projects with iwi according to the

annual budget

Achieved

TWoA worked collaboratively with

local Iwi and Köwhai Consulting

Ltd to support the research and

publication of the Tanehaka Report

Activity 5

Contribute to Ngä Pae o te Märamatanga - (Horizons of Insight) – Centre of Research Excellence hosted by the University of Auckland


Ngä Pae o te Märamatanga Board

membership and participation in

the development and implementa-

tion of research proposals

Achieved

TWoA is one of the eight founding

members of the Ngä Pae o

te Märamatanga Board and

participates in the development of

research proposals

Activity 6

Support a strong research culture at Te Wänanga o Aotearoa, and wider Mäori/community engagement in research development and outputs/dividends


Continue to attract recognised

researchers to build research

reputation and capability

Research activity or achievements

are reported in every issue of Ka

Mïharo (internal magazine)

Complete not less than one

research project annually in

response to a request from a

Mäori community

At least five student and staff

exchanges/projects undertaken

in conjunction with overseas re-

search organisations

Ongoing periodical research

activity publication (initiated in

2003) recording publications and

research outputs

Achieved

Two recognised researchers visited

the Wänanga during the year

A new research newsletter has

been developed – “Te Whänau

Manaaki Rangahau”

3 student exchanges have taken

place particularly with native

American institutions

TWoA participated in the PBRF

round


Treaty of Waitangi

Whäinga Seven – Treaty of Waitangi

The approach of Te Wänanga o Aotearoa to meeting Treaty of Waitangi obligations illustrates the dual responsibilities of Te Wänanga o Aotearoa in respect of the Treaty as both Treaty partner and publicly funded tertiary education institution. Key activities supporting Te Wänanga o Aotearoa obligations under the Treaty of Waitangi are:

Activity 1

To advance and complete the agreements reached through the WAI718 capital settlement claim


Planned settlement process

implemented on time and in line

with agreed objectives and targets

Continue progress towards a

partnership agreement between

the Ministry of Education and the

three Wänanga

Partially Achieved

There has been no partnership

agreement signed to record the

commitment and relationship

between both parties for future

reference

Activity 2

Te Wänanga o Aotearoa engagement in policy development and implementation alongside the other public funded Wänanga


Evidenced through TWoA /

Wänanga representation in

Working Parties, submissions to

government

Achieved

Activity 3

Maintaining and strengthening links with Mäori communities locally regionally and nationally


Continue to have the highest

number of Mäori learners of any

TEI

Develop programmes tailored to

hapu/iwi needs (e.g., that reflect

tikanga-ä-iwi and mita-ä-iwi)

Achieved

The Wänanga has been stated

to have enrolled almost six times

more Mäori students than the

next largest provider, the Open

Polytechnic of New Zealand


Meeting the Needs of Under-Represented GroupsTe Wänanga o Aotearoa is inclusive of all people who wish to study in a Mäori cultural learning environment. It suc-cessfully targets participation and achievement increases in a number of groups in the following areas:

those who have not benefited from mainstream education;•

those who want a second chance in accessing formal • education;

those who are long-term unemployed; and•

those who represent the lower socio-economic groups in • Aotearoa.

Te Wänanga o Aotearoa is the first positive education experience for many tauira and provides the holistic support necessary for successful tauira outcomes. Many of the tauira previously marginalised from the tertiary education system come from Mäori and Pacific communities and go on to achieve successful outcomes in the Te Wänanga o Aotearoa Mäori cultural learning environment.

Whäinga Eight – Mäori and Pacific Peoples’ Tertiary Participation

Te Wänanga o Aotearoa will engage in a number of activities over the next three years that will provide an entry to tertiary study for newcomers to tertiary education and provide opportunities for Mäori and Pacific peoples to participate in tertiary education.

Activity 1

Maintain high numbers of students who are newcomers to tertiary education


Approximately 50% annually Not achieved

In 2004 only 22.5% of students

were newcomers to tertiary

education

Activity 2

Maintain high Mäori learner participation rates


Approximately 80%

annually (minimum)

Not achieved

48% of students enrolled in 2004

were Mäori

Activity 3

Increase the proportion of male Mäori and youth learners at Te Wänanga o Aotearoa through the range and level of programmes offered to meet their education and employ-ment needs


Develop TWoA programmes

targeting male Mäori and youth

including vocational and industry

related programmes

Achieved

Several programmes have been

developed targeting male Mäori

and youth

Activity 4

Maintain high quality Te Reo Mäori programmes


Increase numbers of Te Reo

students progressing into higher

level Reo Programmes

Achieved

There has been a 36% increase in

Te Reo students progressing into

higher level Te Reo programmes


Activity 5

Increase links with Mäori communities that encourage Mäori learners to transition directly from compulsory school-ing into Te Wänanga o Aotearoa


Report annually on number of

Mäori learners enrolling directly

from school

Achieved

871 Mäori learners enrolled

directly from school

Activity 6

Ensure that Te Wänanga o Aotearoa campuses meet the needs and aspirations of Pacific peoples’ communities


Campuses should reflect Pacific

peoples’ culture and heritage,

and have a staff profile to support

successful learning outcomes for

TWoA Pacific learners

Conduct a survey of Pacific

peoples’ tertiary education needs

Programmes are tailored to meet

the tertiary education needs of

Pacific peoples’ – e.g. Te Ara Reo

Cook Island Mäori

Achieved

Pacific Strategy developed in 2004

and will be implemented in 2005

Whäinga Nine – Access

Te Wänanga o Aotearoa will extend the delivery of programmes to areas where access to a tertiary education institution is limited or to where existing services do not meet the needs of Mäori or Pacific peoples and other similar target groups.

Activity 1

Support accessible provision through Memoranda of Agree-ment with private training establishments (ngä Wänanga a rohe) accredited to offer Te Wänanga o Aotearoa programmes in local areas.


Maintain a minimum of 12 satel-

lites

TWoA campus outposts developed

in line with local and regional

demand

Achieved

13 satellites were in use during

the year

Campus outposts were developed

in line with local and regional

demand

Activity 2

Increasing the number of, and participation in, Te Wänanga o Aotearoa programmes offered through marae, community based and other flexible modes of delivery


Pilot Virtual Learning Centres in

partnership with local schools

National rollout of Virtual Learning

Centres maintained and enhanced

in 2004

Develop and rollout self-directed

online learning programmes

2004/5

Achieved

The centres have been piloted

since 2002

36 VLC’s were rolled out in the

North Island in 2003/2004

A new certificate in computing,

levels 2 and 3, with self-directed

and online study was rolled out in

2004 with TWoA providing in home

computer and internet access for

the 2,800 students enrolled for

2005


Collaboration and Cooperation with Other Organisations

Whäinga Ten – Relationships

In line with its Charter, Te Wänanga o Aotearoa will maintain and develop relationships that support learner aspirations for educational and employment success. Te Wänanga o Aotearoa has special relationships with the other two TEI wänanga and with Mäori private training establishments. Collaboration between Te Wänanga o Aotearoa and other tertiary education organisations for education provision will continue to be approved by the Te Wänanga o Aotearoa Council with the recommendation of the Tumuaki.

Activity 1

Continue to enter into joint ventures where programmes or provision support Te Wänanga o Aotearoa learner aspirations for staircasing


Develop in line with TWoA learner

demand

Partially Achieved

Existing relationships maintained

in accordance with learner

demand

New venture with Curtin University

of technology

Activity 2

Develop strong relationships with local and regional schools through the roll out of Learning Communities project and Te Wänanga o Aotearoa computing programmes


Memorandums of Understanding

with schools engaged in Learning

Communities Project

Achieved

43 Memorandums of Understand-

ing signed with 36 Virtual Learning

Centres in operation

Activity 3

Extend global indigenous networks that support internationally benchmarked quality education and support indigenous peoples higher education globally


Host the World Indigenous

Peoples Conference (WIPCE) in

2005

Active member of the World Indig-

enous Nations Higher Education

Consortium (WINHEC)

Partially Achieved

The World Indigenous Peoples

Conference (WIPCE) is due to take

place in 2005

There are WIPEC and WINHEC

meetings scheduled to be held in

2005

Activity 4

Iwi, hapü and whänau will continue to inform the development of programmes and training that meet their needs and expectations


Partnerships with a minimum of

five iwi or Mäori organisations

developed and implemented by

2004

Achieved

9 partnerships with iwi and Mäori

organisations were developed and

implemented in 2004


Links with Industry, Mäori, Pacific Peoples and Other Communities

Whäinga Eleven – Stakeholder Input

Te Wänanga o Aotearoa provides practical learning experiences that support personal development, learning and employment. Learners want programmes that meet their education needs and aspirations across a range of economic, social, cultural and spiritual dimensions. Te Wänanga o Aotearoa strives to meet these needs and aspirations by engaging learners and relevant stakeholders in programme design and delivery.

Activity 1

Review of Komiti Äwhina (Programme Advisory Committees) for all programmes


Review of effectiveness (2004)

Review recommendations imple-

mented (2004)

Not Achieved

No reviews were completed during

2004

Activity 2

Review system for student input and evaluation for improving programme effectiveness


Implement standardised system

for seeking student engagement in

the evaluation and improvement of

system effectiveness (2004)

Review and implement

recommendations for improvement

Achieved

New processes and systems for

obtaining student feedback devel-

oped and implemented in 2004

Activity 3

Campuses have strong relationships with local and regional communities that support quality learner outcomes (education and employment)


Campuses to demonstrate high

level of engagement with local and

regional industry stakeholders and

ensure that provision reflects local

and regional industry needs

Achieved

Campuses have demonstrated a

high level of consultation throughout

the year

Activity 4

Industry relationships developed and enhanced


A minimum of two workplace training

initiatives implemented in 2004

A minimum of two initiatives to

encourage transition from school

into vocational training implemented

in 2004

Implementation of initiatives gener-

ated from the Mäori Training Summit

(2003) attended by ITO’s, Mäori

organisations, tertiary organisations

and employers

Achieved

Workplace training initiatives

include presentation with Kawau

Limited and an agreement to train 2

industry workers

Initiatives to encourage school

leavers include: the relationship

with Work and Income Manage-

ment and the introduction of the

VLC programme in schools

Initiatives generated from the

2003 training summit are being

implemented


Equal Employment Opportunities

Whäinga Twelve – Equal Employment Opportunities

Over the next three years, Te Wänanga o Aotearoa will continue to implement staffing strategies that equip it to respond to the development aspirations of Mäori communities and New Zealand’s Pacific peoples’ communities. The provision of a learning environment conducive to the interests of student target groups will continue to provide employment opportunities for Mäori and Pacific peoples.

Activity 1

Employ suitably qualified staff with the capacity and commitment to contribute to the unique character of Te Wänanga o Aotearoa


Appointment criteria and job

descriptions will reflect cultural

responsibilities

All staff will be required to have or

develop a basic knowledge and

understanding of Te Reo Mäori and

tikanga Mäori as part of professional

development

Partially Achieved

Appointment criteria and job

descriptions reflect cultural respon-

sibilities and staff are encouraged

to have or develop knowledge of

Te Reo Mäori and tikanga Mäori

however this is not yet compulsory

Quality ImprovementTe Wänanga o Aotearoa will maintain quality in the design of learning programmes and in the delivery and assessment of tauira learning. Quality management systems across the organisation support quality in all dimensions. Tauira will enjoy high quality learning experiences, staff will work in a quality environment and Te Wänanga o Aotearoa will be recognised internationally as a high quality Aotearoa NZ tertiary education institution.

Whäinga Thirteen – Quality Management

To maintain quality in the design of learning programmes and in the delivery and assessment of student learning, Te Wänanga o Aotearoa ensures that effective quality management systems are operating. This means on-going review and development of quality management systems that support evolving organisational needs. Specific activities over the next three years to support this objective are:

Activity 1

Increase capability at campus level to implement and use Te Wänanga o Aotearoa Quality Management Systems


On-going training of Education

Support Officers at all campuses

Achieved


Activity 2

Support establishment of a Wänanga Quality Assurance Body (QAB)


Continue to work with Te Tau Ihu o

ngä Wänanga and the New Zealand

Qualifications Authority to establish a

Wänanga QAB

Achieved

Activity 3

Te Wänanga o Aotearoa organisational Health and Safety Management System fully implemented with on-going review


Meet 3 year implementation plan

objectives and begin formal annual

planning in 2005

Partially Achieved

TWoA expects to fully implement

the plan objectives by 2005

Activity 4

Manage institutional risks with the Audit and Risk Management Committee (a sub-committee of Council)


Policies approved and implemented Partially achieved

Activity 5

Quality management systems to maintain or enhance accountabilities in financial management, educational quality and student administration are developed and implemented


To continue to strengthen the internal

audit function

Partially achieved

A number of initiatives were

undertaken in 2004, aimed at

strengthening the academic,

financial and student administra-

tion functions

Activity 6

Governance and management policies and processes updated by on-going review


Audit and Risk Management Com-

mittee works with senior manage-

ment to monitor and evaluate policies

and processes

Partially achieved


Financial Performance Indicators

Whäinga Fourteen– Ensure Te Wänanga o Aotearoa Remains Financially Sound by Maintaining Good Financial Management PracticesTe Wänanga o Aotearoa will maintain a financially sound position that supports the Charter and Kaupapa of the organisation. Te Wänanga o Aotearoa has consistently met financial performance targets established in the Statement of Objectives while the organisation has experienced growth since gaining tertiary status in 1994.


Operating surplus of at least $27

million

Not achieved – operating deficit of

$23.6 million

Operating surplus as a percentage

of income 16%

Not achieved – deficit 13.4%

Return on assets 5% Not achieved – (18.0%)

Net operating cashflows at least

1.1:1

Achieved – ratio 1.1:1

Liquid assets as a percentage of

cash outflow from operations at

least 14%

Achieved – 15.4%

Working Capital Ratio1.5:1 Not achieved – 1.2:1

36 - Financial Report

Financial Report

The property next to the Canning Crescent campus • was purchased to allow for growth in this area.

A resource centre was built in Hamilton at the Raroera • Campus to provide additional teaching space for the campus.

A property was purchased at Whangaparäoa to provide • office space for the marine unit along with a marina berth for Aotearoa One, the double hulled waka that was completed during the year.

Overall Financial Performance

The net deficit of $23.6m was significantly less than the budgeted surplus of $25m. The main drivers of this variance were EFTS targets not being reached ($15m shortfall) while expenditure continued to occur at higher than budgeted levels.

Non Recurring Expenditure

Significant impacts on the results were two abnormal transactions that occurred in the 2004 year. First, a settlement was reached with Aotearoa Institute in relation to various matters which resulted in a charge of $5.25m being applied to the 2004 year. Secondly, there was a substantial write down of assets as a result of events subsequent to balance date. The total impairment of assets that occurred in 2004 was $17.5m.

Income

The profile of our income streams is shown in the table below.

Source 2004 2003 2002 2001 2000

MOE 89% 95% 94% 81% 64%

Fees 2% 2% 3% 15% 31%

Other 9% 4% 3% 4% 5%

Financial Review

EFTS

Our total EFTS achieved this year was 29,671. This was a decrease of 13% on the results for 2003. Of this total:

Our campus based programmes contributed 17,934 • EFTS – a decrease of 2,971 EFTS;

The Mahi Ora programme contributed 3,961 EFTS – a • decrease of 3,246 EFTS.

Other Satellite providers contributed a further 7,776 • EFTS – an increase of 1,608 EFTS.

Aside from the decrease in EFTS for the Mahi Ora programme there was also a significant decrease in EFTS for the Te Ara Reo Mäori programme.

These decreases were offset to some extent by an increase in the enrolments for the Kiwi Ora and Certificate in Small Business Management programmes.

Financial Position

Net assets as at year end are $93m, which is a decrease of $24m.

As a result of the Treaty settlement agreement with the Ministry of Education it was anticipated that a suspensory loan of $15m would be received during the 2004 year. This loan was not forthcoming and resulted in a negative impact on the cash reserves for the year. The year closed with a working capital surplus of $5m – a decrease of $30m from last year.

Other key events during the year which affected our fixed asset base were as follows.

The Tokoroa campus refurbishment was completed. •

A property was purchased near Hamilton to provide a • possible site for a Whakairo School of Excellence.

The refurbishment of the Glenview Library and Conference • Centre in Hamilton was close to completion at the end of the year.

Financial Report - 37

While the percentage of our revenue from total Government Funding decreased by 6%, our revenue from Student Fees remained steady. Our income from other sources increased by 125% due to an increase in income from joint venture arrangements.

Expenditure

The profile of our expenditure is shown in the table below.

Source 2004 2003 2002 2001 2000

Personnel Costs 35% 36% 37% 32% 49%

Resources 39% 34% 26% 39% 22%

Administration 4% 16% 11% 13% 12%

Trading - - 11% 5% -

Property Costs 8% 8% 7% 7% 13%

Depreciation 5% 6% 8% 4% 4%

Impairment of

Assets

9% - - - -

In actual dollar terms, expenditure this year shows an increase in all areas compared to last year. Personnel costs remain consistent at 35% of total spend, whilst the proportion spent on resources has again increased. Depreciation is less than previous years, however, as previously noted there are one-off write downs of some assets.

Cash Flow

The opening cash balance held at the organisation was $37.4m. There was a positive net cash flow from operations of $12m for the year and a positive net cash flow from financing activities of $5.9m. However these were offset by a negative cash flow from purchases of property, plant and equipment of $40.6m.

Accordingly the total net decrease in cash balances was $22.7m giving a closing cash balance of $14.7m. However of this amount, $13m was due to the Ministry of Education as a result of over funding.


Statement of Responsibility

In the financial year ended 31 December, 2004, 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.

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, 2004 fairly reflect the financial position and operation of Te Wänanga o Aotearoa.

Craig Coxhead - Council Chairperson B Soc Sci, LLB(Hon), LLM(Waikato)

Date: Friday, 31 August 2007

Bentham Ohia – Pouhere Exec MBA, Dip T, BA


Brian Roche - Crown Manager

CA, BCA (Victoria)



Report of the Auditor-GeneralTO THE READERS OF TE WÄNANGA O AOTEAROA TE KURATINI O NGÄ WAKA AND GROUP’S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

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, Graham Naylor, using the staff and resources of Deloitte, to carry out the audit of the financial statements of the Wänanga and group, on his behalf, for the year ended 31 December 2004.

Qualified Opinion – Limitation in Evidence for Related Party Transaction Disclosures

The Wänanga and group did not maintain adequate systems and controls during the year ended 31 December 2004 to identify all related party transactions, including any amounts receivable from or payable to related parties as at 31 December 2004. As a consequence, despite the disclosures in Note 6 on page 46 and Note 20 on page 54, we are unable to satisfy ourselves:

that all related party transactions have been properly recorded • and disclosed in the financial statements, in accordance with Financial Reporting Standard No.9: Information to be Disclosed in Financial Statements (FRS-9), and Statement of Standard Accounting Practice No. 22: Related Party Disclosures (SSAP-22);

that the related party transactions have been conducted • on an arm’s-length basis; and

that the assertions underlying the recognition of related party • transactions and balances in the financial statements of theWänanga and group fairly reflect their economic substance.

In our opinion, except for adjustments that might have been found to be necessary had we been able to obtain sufficient evidence over related party transactions, the financial statements of the Wänanga and group on pages 20 to 29 and 34 to 59:

comply with generally accepted accounting practice in • New Zealand; and

fairly reflect:•

- the Wänanga and group’s financial position as at 31 December 2004;

- the results of operations and cash flows for the year ended on that date; and

- the service performance achievements measured against the performance targets adopted for the year ended on that date.

The audit was completed on 31st August, 2007 and is the date at which our qualified opinion is expressed.

The basis of our opinion, which refers to fundamental uncertainties, 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 disclosure of related party transactions.

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 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. We are unable to determine whether there are material misstatements because the scope of our work was limited due to the limitation in evidence over the disclosure of related party transactions, as we referred to in our opinion.

The audit involved performing procedures to test the information presented in the financial statements. 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.

We evaluated the overall adequacy of the presentation of information in the financial statements. We did not obtain all the information and explanations we required because of the limitation in evidence over the disclosure of related party transactions, as explained above.

Fundamental Uncertainty - Validity of the Going Concern Assumption

In forming our opinion, we considered the adequacy of the disclosures made on pages 29 of the financial statements about the validity of the going concern assumption. We consider the disclosures to be adequate. The disclosures outline the factors the Wänanga and group considered in adopting the going concern assumption, including:

the uncertainty over the actual number of Equivalent Full • Time Students that will be enrolled for the years ending 31 December 2007 and 31 December 2008; and

the uncertainty over the Council’s negotiations for a • $20 million Crown suspensory loan to settle an outstanding Treaty of Waitangi claim.

If the Wänanga and group were unable to continue in operational existence for the foreseeable future, adjustments may have to be made to reflect the situation that assets may need to be realised other than in the amounts at which they are currently recorded in the Statement of Financial Position. In addition, the Wänanga and group may have to provide for further liabilities that might arise, and to reclassify fixed assets and long-term liabilities as current assets and liabilities.


Responsibilities of the Counciland 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 2004. They must also fairly reflect the results of operations and cash flows and service performance achievements for the year ended on that date. The responsibilities of the Council arise from the Public Finance Act 1989.

We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Public Finance Act 1989.

Independence

Graeme McNally, who was a Christchurch based partner of Deloitte, was requested by the Associate Minister of Tertiary Education and the Ministry of Education to advise the Council of the Wänanga on governance matters in June 2002. Mr McNally had no involvement in the preparation of the Wänanga and group’s financial statements nor was he involved in the audit. To minimise any threat to audit independence, an independent review of the audit files has been carried out by the Office of the Auditor-General. Any threat to audit independence has been completely removed for future reporting periods when Mr McNally resigned as advisor to the Wänanga from January 2005. Other than the audit, and the relationship described above, we have no relationship with or interests in the Wänanga or its subsidiary.

Graham NaylorDeloitteOn behalf of the Auditor-GeneralHamilton, New Zealand


Statement of Accounting Policiesfor the year ended 31 December, 2004

General Accounting Policies

Reporting Entity

Te Wänanga o Aotearoa is a Wänanga constituted by anOrder 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

The Going Concern principle has been adopted in the preparation of these financial statements.

This approach has been adopted after considering the following factors:

The Crown has provided the cash funding required to• support the continuing operation of the Wänanga since the identification of its financial problems. The Council believes that the Government will continue to support Te Wänanga o Aotearoa because the Minister for Tertiary Education has publicly made statements regarding the Crown’s support for the continued delivery of services to Te Wänanga O Aotearoa students and has recognised the role the organisation plays within New Zealand’s educational infrastructure.

Te Wänanga o Aotearoa and Group has budgeted the number • of Equivalent Full Time Students (EFTS) for the year ended 31 December 2007 and 31 December 2008. The numbers budgeted reflect those considered by Cabinet when they approved the institutions Profile. Similar to all other institutions operating in the sector the actual number of EFTS that willbe enrolled for the years ended 31 December 2007 and 31December 2008 is uncertain at this stage. On the basis of progress to date the Council believes these budgeted EFTS

are achievable.

The Crown provided Te Wänanga o Aotearoa with a • $20 million funding facility in early 2005 to enable Te Wänanga o Aotearoa to meets its financial obligations. This facility, controlled by the Crown Manager, has been utilised on four occasions in the period to the date of signing these Financials Statements. All amounts have been repaid. 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. The current facility has been reduced to $10 million and expires on 30 November 2007. The Council is confident that continued financial support, if needed, will be forthcoming.

Cabinet has agreed by the way of minute that a suspensory • loan of up to $20 million will be made available from 30November 2007 to settle the amount outstanding from the Waitangi Tribunal Claim Wai 718. The loan, while still being subject to the finalisation of a negotiated agreementbetween the Tertiary Education Commission and Te Wänanga o Aotearoa, will be paid out in three instalments over three years of $10 million before the end of 2007, $5 million in 2008 and $5 million in 2009.

Te Wänanga o Aotearoa has undertaken a substantial • restructure in 2006 without any ongoing financial assistance being required from the Crown.

The financial support provided to other public tertiary • educational institutes which have experienced problems similar to those facing Te Wänanga O Aotearoa.

The recognition that Te Wänanga o Aotearoa has continued • to operate and has met all its financial obligations as and when they have fallen due.

Cash forecasts for the 2007 and 2008 financial year • indicate that the institution will have sufficient cash to meet its financial obligations.

Accordingly the Council has prepared these financial statements based on the going concern assumption.


The going concern assumption depends on the:

Institution, similar to all other institutions operating in the • sector, achieving its forecast levels of student enrolments in 2007 and 2008; and

Successful conclusion of negotiations with the Crown as • to terms for the $20 million suspensory loan.

Whilst the Council is confident in the ability of Te Wänanga o Aotearoa to continue as a going concern, if the forecast level of enrolments is not achieved or the negotiations of the terms of the suspensory loan are not successfully concluded there would be significant uncertainty as to whether Te Wänanga o Aotearoa would be able to continue as a going concern.

If Te Wänanga o Aotearoa was unable to continue as a going concern adjustments may have to be made to reflect the situation that assets may have to be realised and liabilities extinguished other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently reported in the Statement of Financial Position.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and the recognition and classification of liabilities that may be necessary should Te Wänanga o Aotearoa be unable to continue as a going concern.

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 that of 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. Revenue

Revenue 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 which gives rise to the revenue is conducted. 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 Receivable

Accounts Receivable are stated at expected realisable value after providing for debts where collection is doubtful.

C. Inventory

All inventories are valued at the lower of cost and net realisable value.

D. Property, Plant and Equipment

Property, plant and equipment are initially recorded at cost in the Statement of Financial Position. The Library Collection and Artwork are initially recorded at cost in 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 itsrecoverable amount, the item is written down. Thewrite 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 carrying amountis recognised in the Statement of Financial Performance.

E. Depreciation

Property, Plant and Equipment, with the exception of Land and Artwork (which are not depreciated) and Library Collection (which is depreciated at 12.5% diminishing value), 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 is as follows:

Buildings 2% 50 years

Leasehold Land Improvements 10% 10 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

F. Programme Development Costs

Capitalisation 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 Tax

The 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 Subsidiary

The 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. Theresults 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. Goodwill

Goodwill, representing the excess of the cost of shares in a subsidiary or associate over the fair value of thenet assets acquired at the date of acquisition, is shown as an intangible asset. Goodwill is amortised in the Statement of Financial Position on a straight line basis over the period of the expected benefit. To the extent that the unamortised balance of goodwill is no longer probable of being recovered from the expected future economic benefits, it is recognised immediately as an expense.


O. Provisions

All 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.

P. Statement of Cash Flows

The 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.

J. Operating Leases

Operating lease rentals are recognised evenly over theexpected period of benefit to Te Wänanga o Aotearoa.

K. Finance Leases

Leases 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.

L. Financial Instruments

Financial Instruments carried on the Statement of Financial Position include cash and bank balances, investments, receivables, trade creditors and borrowings. 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.

M. Trademarks

Purchased identifiable intangible assets, comprising patents and trademarks, are recognised at cost andamortised on a straight line basis over their estimated useful lives. Where the carrying amount of an identifiedintangible asset exceeds its recoverable amount, it is written down to its recoverable amount.

Investments

Investments are stated at the lower of cost and net realisable value.


Q. Foreign Currency Transactions

Transactions 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.

R. Budget Figures

The 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.

S. Employee Entitlements

Provision is made in the Statement of Financial Performance and Statement of Financial Position for the benefits due to staff under existing contracts for annual, long service and gratuities leave, on the basis of actual entitlement.

T. Comparative Figures

Comparative information has been reclassified where necessary to achieve consistency in disclosure with the current year.

Changes in Accounting Policies

There have been no changes in Accounting Policies for the current financial period. All policies have been applied on a basis consistent with the previous year.


Statement of Financial Performance for the year ended 31 December, 2004

Group Group Parent Parent Group Parent

Actual Budget Notes Actual Budget Actual Actual

31/12/2004 31/12/2004 31/12/2004 31/12/2004 31/12/2003 31/12/2003

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

Government Funding

Ministry of Education 156,347 170,826 156,347 170,826 177,026 177,026

Other Government Funding 478 683 478 683 460 460

Total Government Funding 156,825 171,509 1 156,825 171,509 177,486 177,486

Student Tuition Fees

Domestic 3,386 5,389 3,368 5,389 3,304 3,304

Other Income

Trading Income 402 642 402 642 3,037 225

Interest 2,509 964 2,226 714 2,478 2,226

Other Income 13,336 13,732 4 17,104 10,205 1,355 4,315

Total Other Income 16,247 15,338 19,732 11,561 6,870 6,766

Total Income 176,458 192,236 179,925 188,459 187,660 187,556

Less Personnel

Salaries & Associated Costs 70,022 67,969 2 66,400 64,361 55,833 52,394

Other Costs

Consumable/Faculty Costs 77,939 70,813 68,836 70,813 52,621 71,696

Occupancy Property Costs 15,991 12,549 15,765 12,379 11,904 11,684

Administration 7,985 8,808 25,248 20,434 24,416 22,165

Interest Expense 119 180 119 180 112 112

Total Other Costs 102,034 92,350 3 109,968 103,806 89,053 105,657

Depreciation and Amortisation 10,485 6,898 11 9,798 6,298 9,527 5,502

Impairment in Value of Term Assets 17,500 - 12 17,500 - - -

Total Cost of Services 200,041 167,217 203,666 174,465 154,413 163,553

Net Surplus (Deficit) for the Year (23,583) 25,019 (23,741) 13,994 33,247 24,003

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 for the year ended 31 December, 2004



31/12/2004 31/12/2004 31/12/2004 31/12/2004 31/12/2003 31/12/2003

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

Opening Public Equity 116,769 114,483 100,817 101,166 78,522 71,814

Equity Introduced - - 5 - - 5,000 5,000

Net Surplus/(Deficit) for the year (23,583) 25,019 (23,741) 13,994 33,247 24,003

Public Equity as at 31 December 2004 93,186 139,502 77,076 115,160 116,769 100,817



Statement of Financial Positionas at 31 December, 2004



31/12/2004 31/12/2004 31/12/2004 31/12/2004 31/12/2003 31/12/2003

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

Public Equity 93,186 139,502 77,076 115,160 116,769 100,817

Current Assets

Cash at Bank 14,666 44,636 11,120 31,167 37,924 33,882

Accounts Receivable 10,592 8,606 6 6,753 3,724 7,607 3,685

Prepayments 2,287 607 7 2,287 607 457 457

Inventory 9,381 3,641 8,171 1,641 3,741 1,709

Total Current Assets 36,926 57,490 28,331 37,139 49,729 39,733

Less Current Liabilities

Accounts Payable 28,353 10,990 8 29,080 11,734 11,597 13,387

Line of Credit - - - - 547 547

Current Portion of Term Liabilities 44 - 18 44 - 78 78

Employee Entitlements 3,674 3,297 9 3,604 3,297 2,445 2,445

Total Current Liabilities 32,071 14,287 32,728 15,031 14,667 16,457

Working Capital Surplus/(Deficit) 4,855 43,203 (4,397) 22,108 35,062 23,276

Property, Plant and Equipment 87,663 93,236 10 83,500 89,969 73,964 71,553

Other Non Current Assets

Programme Development 3,518 - 13 822 - 4,135 2,379

Goodwill - - 14 - - 500 500

Trademark 5 - 5 - 5 5

Investment in MO1 Limited - - 15 1 1 - 1

Advance to MO1 Limited - - - 19 - -

Advance to Aotearoa Institute 3,115 3,115 20 3,115 3,115 3,115 3,115

Total Other Non Current Assets 6,638 3,115 3,943 3,135 7,755 6,000

Term Liabilities

Mortgage 720 - 18 720 - - -

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

Term Portion of Finance Leases - 52 - 52 12 12

Total Term Liabilities 5,970 52 5,970 52 12 12

Net Assets 93,186 139,502 77,076 115,160 116,769 100,817

Craig Coxhead - Council Chairperson B Soc Sci, LLB(Hon), LLM(Waikato)


Brian Roche - Crown ManagerCA, BCA (Victoria)Date: Friday, 31 August 2007


Bentham Ohia – Pouhere Exec MBA, Dip T, BADate: Friday, 31 August 2007

For and on behalf of the Council




31/12/2004 31/12/2004 31/12/2004 31/12/2004 31/12/2003 31/12/2003

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

Cash Flows from Operating Activities

Cash was provided from:

Operating Income 173,971 190,693 177,854 186,617 185,803 195,847

Interest Received 2,509 964 2,226 714 2,174 1,922

176,480 191,657 180,080 187,331 187,977 197,769

Cash was applied to:

Employees and Suppliers 164,406 161,441 170,890 167,652 142,817 158,170

Interest expense 119 180 119 180 112 112

164,525 161,621 171,009 167,832 142,929 158,282

Net Cash Flows From

Operating Activities 11,955 30,036 16 9,071 19,499 45,048 39,487

Cash Flows from Investing Activities


Purchase of Property, Plant and

Equipment 35,224 22,678 33,583 21,568 36,598 35,768

Programme Development 5,343 - 3,604 - 4,760 2,379

40,567 22,678 37,187 21,568 41,358 38,147

Net Cash Flows From

Investing Activities (40,567) (22,678) (37,187) (21,568) (41,358) (38,147)

Cash Flows from Financing Activities

Cash was provided from:

Equity - - - - 5,000 5,000

Aotearoa Institute Liability 5,250 - 5,250 - - -

Mortgage 764 - 764 - - -

Loan repaid by Subsidiary - - - - - 3,519

6,014 - 6,014 - 5,000 8,519


Settlement of Debt 90 48 90 48 150 150

90 48 90 48 150 150

Net Cash Flows From

Financing Activities 5,924 (48) 5,924 (48) 4,850 8,369

Net (Decrease)/Increase

In Cash Held (22,688) 14,147 (22,192) (2,117) 8,540 9,709

Opening Balance 1 January 2004 37,377 30,489 33,335 33,284 28,893 23,682

Gain (Loss) on Foreign Exchange (23) - (23) - (56) (56)

Closing Balance 31 December 2004 14,666 44,636 11,120 31,167 37,377 33,335

Note: 2003 comparitive figures for the closing cash balance include both cash at bank and line of credit from the

Statement of Financial Position.

Cash at Bank 37,924 33,882

Line of Credit (547) (547)

Closing Balance 31 December 2003 37,377 33,335


Statement of Cashflowsfor the year ended 31 December, 2004


Financial Ratiosfor the year ended 31 December, 2004

2004 2004 2003 2003 2002 2002 2001 2001

Group Parent Group Parent Group Parent Group Parent

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

Short Term Liquidity

Current Monetary Assets 14,666 11,120 37,377 33,335 28,894 23,682 10,894 9,681

Current Liabilities 32,027 32,684 14,667 16,457 13,420 16,101 4,307 3,920

Ratio 0.46:1 0.34:1 2.55:1 2.02:1 2.15:1 1.47:1 2.53:1 2.47:1

Public Equity to

Total Assets Ratio

Public Equity 93,186 77,076 116,769 100,817 78,523 71,814 38,955 38,184

Total Assets 131,227 115,774 131,448 117,286 93,632 89,605 43,501 42,344

Ratio 0.72:1 0.68:1 0.89:1 0.86:1 0.84:1 0.80:1 0.90:1 0.90:1

Exposure to Liabilities

Total Liabilities 38,041 38,698 14,679 16,469 15,110 17,790 4,547 4,160

Public Equity 93,186 77,076 116,769 100,817 78,523 71,814 38,955 38,184

Exposure to Liabilities 0.40:1 0.49:1 0.13:1 0.16:1 0.19:1 0.25:1 0.12:1 0.11:1

Change in Financial Value

Net Assets 93,186 77,076 116,769 100,817 78,523 71,814 38,955 38,184

Change in Financial Value (20.20%) (23.55%) 49.00% 40.00% 102.00% 88.00% 222.00% 216.00%

Return on Assets

Net Result for the period (23,583) (23,741) 33,247 24,003 29,229 23,292 1,872 1,102

Total Assets 131,227 115,774 131,448 117,287 93,632 89,605 43,501 42,344

Percentage (17.97%) (20.50%) 25.29% 20.47% 31.22% 25.99% 4.30% 2.60%



Notes to the Financial Statementsfor the year ended 31 December, 2004

1. Government Funding

Te Wänanga o Aotearoa is a Crown recognised tertiary institution. The major source of funding is from the Ministry of Education. All revenue relates to continuing activities.

2. Council Remuneration

2004Salaries & Associated Costs includes Te Mana Whakahaere and sub-committees remuneration of $60,992 distributed as follows:

Craig Coxhead - Council 18,104 Lloyd Anderson - Council/Audit & Risk 3,825

Eleanor Barton - Council 2,040 Richard Batley - Council/Audit & Risk 1,020

Barry Hopkins - Council 2,295 Tania Hodges - Council/Audit & Risk 4,803

Bruce Martin - Council 1,020 Harold Maniapoto - Council 510

John Storey - Audit & Risk 18,000 Carol Nin - Council 1,275

Shane Jones - Audit & Risk 8,100

There were no Directors Fees paid by MO1 Limited in 2004.

2003Salaries & Associated Costs includes Te Mana Whakahaere remuneration of $58,785 distributed as follows:

Joseph Arrell - Council 19,500 Lloyd Anderson - Council/Audit & Risk 3,825

Eleanor Barton - Council 2,550 Bruce Bryant - Council/Audit & Risk 4,845

Arana Collett - Council 1,020 Craig Coxhead - Council 10,980

Tania Hodges - Council/Audit & Risk 4,590 Barry Hopkins - Council 2,805

Harold Maniapoto - Council 1,785 Carol Nin - Council 1,530

Rewi Panapa - Council 1,785 Bruce Martin - Council 510

Mana Forbes - Council 1,785 Edwin Te Moananui - Council 1,275

Directors Fees paid by MO1 Limited of $49,997 distributed as follows:

Bruce Bryant 49,997


3. Statutory Disclosures

Group 2004 Parent 2004 Group 2003 Parent 2003

$000 $000 $000 $000

Interest Expense 119 119 112 112

Fees Paid to Auditors

For Audit Services 487 427 97 97

For Other Services - - 8 -

Provision for Doubtful Debts 1,115 1,115 925 925

Operating Lease Expense 6,293 6,162 4,772 4,772

Bad Debts Written Off 369 150 104 104

Koha 240 226 73 73

Amortisation of Goodwill (note 14) - - 2,852 -

Amortisation of Programme

Development Costs (note 11, 13) 1,663 1,113 625 -

Depreciation (note 11) 8,822 8,684 6,050 5,502

Rent 1,234 1,234 664 664

4. Other Income


$000 $000 $000 $000

Contract Income 8,112 5,902 - 2,999

Trade Rebate 2,889 2,889 - -

Rent Received 523 523 192 192

Management Fee - MO1 Ltd (note 20.9) - 6,000 - -

Other Income 1,812 1,790 1,163 1,124

Total Other Income 13,336 17,104 1,355 4,315

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


5. Crown Equity and Compensation

The Crown has made equity contributions to Te Wänanga o Aotearoa in line with the recommendations outlined in TheWänanga Capital Establishment Report – Waitangi Tribunal Report 1999 (WAI 718).(refer Accounting Policies, General, Going Concern.) As at 31 December 2004 the following amounts have been received:


$000 $000 $000 $000

Balance at Beginning of Year 51,691 51,691 46,691 46,691

Crown Contributions Received this Year - - 5,000 5,000

Balance at End of Year 51,691 51,691 51,691 51,691

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 as at the date of signing these Financial Statements.

6. Accounts Receivable


$000 $000 $000 $000

Student Fee Debtors 1,090 1,090 925 925

Ministry of Education - - 1,471 1,471

Goods & Services Tax - - 726 726

Intercompany - MO1 Limited - 101 - 146

Oma Investments Limited (refer note 20) 3,224 3,224 - -

General Debtors (refer note 20) 7,393 3,453 5,410 1,342

11,707 7,868 8,532 4,610

Less Provision for Doubtful Debts 1,115 1,115 925 925

10,592 6,753 7,607 3,685

7. Prepayments


$000 $000 $000 $000

VLC Computers 1,836 1,836 - -

Other 451 451 457 457

2,287 2,287 457 457


8. Accounts Payable


$000 $000 $000 $000

Goods and Services Tax Accrual 147 27 591 321

PAYE 673 636 1,076 1,076

Childcare Grants** 836 836 836 836

Ministry of Education 13,240 13,240 - -

Intercompany - MO1 Limited - 1,654 - 4,574

Sundry Creditors 13,457 12,687 9,094 6,580

28,353 29,080 11,597 13,387

** These funds have been received as capital grants from the Ministry of Education for the purpose of building three childcare centres but this was repaid in 2005.

9. Provision for Employee Entitlements


$000 $000 $000 $000

Accrued Salaries 1,088 1,087 579 579

Accrued Holiday Pay 2,586 2,517 1,866 1,866

3,674 3,604 2,445 2,445


10. Property, Plant and Equipment

Group Cost Accumulated Depreciation Book Value

$000 $000 $000

2004

Land 7,657 - 7,657

Leasehold Land Improvements 178 55 123

Buildings 40,095 1,565 38,530

Leasehold Improvement 10,996 2,173 8,823

Equipment 12,232 4,090 8,142

Computers 13,011 5,769 7,242

Furniture & Fittings 6,871 2,782 4,089

Motor Vehicles - Owned 9,394 3,060 6,334

Motor Vehicles - Finance Lease - - -

Waka 614 150 464

Artworks 912 - 912

Library 2,860 585 2,275

Work in Progress 3,072 - 3,072

107,892 20,229 87,663

Parent Cost Accumulated Depreciation Book Value

$000 $000 $000

2004

Land 7,657 - 7,657

Leasehold Land Improvements - - -

Buildings 38,158 1,339 36,819


Equipment 11,049 3,755 7,294

Computers 11,556 5,201 6,355



Motor Vehicles - Finance Lease - - -

Waka 614 150 464

Artworks 912 - 912

Library 2,861 585 2,276


102,176 18,676 83,500



$000 $000 $000

2003

Land 5,590 - 5,590

Leasehold Land Improvements 150 11 139

Buildings 34,312 789 33,523


Equipment 8,702 1,932 6,770

Computers 8,916 2,948 5,968



Waka 614 99 515

Artworks 691 - 691

Library 1,461 260 1,201

Work in Progress 6,436 728 5,708

85,383 11,419 73,964


$000 $000 $000

2003

Land 5,590 - 5,590

Buildings 33,456 758 32,698


Equipment 8,126 1,879 6,247

Computers 7,884 2,845 5,039



Waka 614 99 515

Artworks 691 - 691

Library 1,462 260 1,202


81,961 10,408 71,553


On 30 June 2003 Te Wänanga o Aotearoa purchased the land, buildings and chattels of Glenview International Hotel and Conference Facility, situated at 254 Ohaupo Road, Hamilton. The purchase price paid amounted to $5.12 million, made up as follows.

Land $1,500,000

Buildings $2,620,000

Chattels $500,000

The excess of the purchase price paid over the value of the assets amounting to $500,000 represents goodwill paid on acquisition (refer note 14).

11. Depreciation and Amortisation


$000 $000 $000 $000

Leasehold Land Improvements 44 - - -

Buildings 870 675 388 388

Leasehold Improvement 847 821 536 535

Equipment 2,040 1,846 1,076 1,075

Computers 1,972 2,352 2,233 1,686

Furniture & Fittings 1,060 1,100 780 781

Motor Vehicles 1,612 1,514 810 810

Waka 52 52 44 44

Library 325 325 183 183

Goodwill Amortisation (note 14) - - 2,852 -

Amortisation (note 13) 1,663 1,113 625 -

10,485 9,798 9,527 5,502

12. Impairment in Value of Term Assets


$000 $000 $000 $000

Goodwill (note 14) 500 500 - -

Waka 1,756 1,756 - -

Software 2,300 2,300 - -

Land and Buildings 1,061 1,061 - -

Work in Progress 7,768 7,768 - -

Programme Development 4,048 4,048 - -

Other 67 67 - -

Total Impairment in Term Assets 17,500 17,500 - -


13. Programme Development


$000 $000 $000 $000

Balance at Beginning of Year 4,135 2,379 - -

Capitalisation During the Year 5,094 3,604 4,760 2,379

Amortisation (note 11) (1,663) (1,113) (625) -

Impairment (note 12) (4,048) (4,048) - -

Balance at End of Year 3,518 822 4,135 2,379

Programme development costs were incurred in developing Lifeworks and Mauri Ora programmes.

14. Goodwill


$000 $000 $000 $000

Cost

Balance at Beginning of Year 7,346 500 6,846

Capitalised During the Year * - - 500 500

Balance at End of Year 7,346 500 7,346 500

Accumulated Amortisation

Balance at Beginning of Year 6,846 - 3,994 -

Amortised Expense for the Year (note 11) - - 2,852 -

Impairment Expense (note 12) 500 500 - -

Balance at End of Year 7,346 500 6,846 -

Carrying Value

Balance at End of Year - - 500 500

* Goodwill of $500,000 relating to the acquisition of the Glenview International Hotel and Conference Facility was expensed during the year. (2003 Goodwill capitalised during the year of $500,000 relates to the acquisition of the Glenview International Hotel and Conference facility.)


15. 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. During 2003 MO1 Limited repaid the advance owed to Te Wänanga o Aotearoa of $3.5 million.

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


$000 $000 $000 $000

Year to Date Surplus/(Deficit) (23,583) (23,741) 33,247 24,003

Add Depreciation/Losses on Disposal 10,485 9,798 6,050 5,502

Add Impairment in Value of Term Assets 17,500 17,500 - -

Add Amortisation of Goodwill - - 2,852 -

Add Development costs Written Off - - 625 -

Add Loss of Foreign Exchange 23 23 56 56

4,425 3,580 42,830 29,561

Add Movements in Working Capital:

Debtors (2,985) (3,069) 4,333 11,850

Prepayments (1,830) (1,830) (164) (165)

Inventory (5,640) (6,462) (2,738) (1,636)

Creditors 16,756 15,693 768 (123)

Employee Entitlements 1,229 1,159 - -

Write off of Investments - - 19 -

Cash Flows From Operating Activities 11,955 9,071 45,048 39,487


17 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 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.

Te Wänanga o Aotearoa no longer has a line of credit with Bank of New Zealand (2003 - $547,200). In 2003 the interestrate was 9.05% The facility was used to cover the purchase of computers and motor vehicles.

Te Wänanga o Aotearoa has a US$ Account with a current balance of US$226,449 (2003- US$150,327). The exchange rate as at 31 December 2004 of 0.7085 (2003 - 0.6605) was applied.

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the group. Cash accounts are held with high credit quality financial institutions. Student fee debtors and general debtors consist of a large number of customers and the group does not have any significant concentration of credit risk with regards to these balances. As disclosed in note 20 there are related party receivable balances from OMA Investments Limited of $3.224 million (2003 - nil) and Aotearoa Institute of $3.115 million (2003 - $3.115 million).

18 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. The loan amount at balance date was $763,979. The Fair Value of the mortgage at 31 December 2004 was $509,951.


19 Early Learning Centres

During the 2004 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 2004 2003

MOE Funding Received

Bulk Funding 148,064 12,606

Incentive Funding

Language & Kaupapa 1,600 -

Training 1,861 -

TOTAL MOE Funding Received $151,525 $12,606

Funds applied to:

Salaries 151,525 12,606

$151,525 $12,606

Raroera Te Käkano 2004 2003



Incentive Funding

Low Socio Economic 1,400 -

Special Needs 1,225 -

Training 3,723 -


Funds applied to:

Salaries 84,115 87,545

Resources 1,400 -

$85,515 $87,545


Manukau Te Käkano 2004 2003



Incentive Funding





Funds applied to:

Salaries 106,254 59,223

Resources 3,324 -

$109,578 $59,223

Te Rau Oriwa 2004 2003



Incentive Funding





Funds applied to:

Salaries 83,676 88,932

Resources 1,747 -

$85,423 $88,932


Raroera Te Puäwai 2004 2003



Incentive Funding


Training 3,723 -


Funds applied to:

Salaries 77,544 7,314

$77,544 $7,314

Building Programme Grants 2004 2003

Unspent Building Programme Grants as at

01-01-04

836,347 1,040,571

Additional Grants Received - -

Building Grants Applied to the Building

Programme

- (204,224)

Unspent Building Programme Grants as at

31-12-04

836,347 836,347

The unspent building programme grants were repaid in May 2005.

20 Related Party Transactions

›› 20.1 Aotearoa Institute Te Kuratini o Ngä Waka Trust Board (Aotearoa Institute)

There are several components to the relationship with Aotearoa Institute including:

››› Governance

The governing bodies of Aotearoa Institute and Te Wänanga o Aotearoa had two members in common at balance date. There were also five senior employees of Te Wänanga o Aotearoa on the Board of Aotearoa Institute. Aotearoa Institute’s financial operations are 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 leases buildings to Te Wänanga o Aotearoa at commercial rental rates. At the date of signing these financial statements the leases with Aotearoa Institute were 3 years with two further terms each of three years.

At balance date Te Wänanga o Aotearoa was claiming reimbursement from Aotearoa Institute for a significant proportion of the leasehold improvements that Te Wänanga o Aotearoa had made to properties leased from Aotearoa Institute including the Porirua building which has subsequently been sold. This matter was settled as part of the December 2006 agreement between the parties (refer note 21.2).


››› Management Services

Te Wänanga o Aotearoa provided management and administration services to Aotearoa Institute to the extent of $40,000 during the year. At balance date, Aotearoa Institute was a general debtor of Te Wänanga o Aotearoa due to the accrual of those services provided to the extent of $45,000 including GST (2003 - $45,000 including GST).

››› Advances

During 2001 an advance of $3.1 million was made to Aotearoa Institute, which was fully ratified by the Te Wänanga o Aotearoa Council. These funds were used for the purchase and renovation of buildings to be used by Te Wänanga o Aotearoa for which leasing arrangements have been entered into.

In February 2006 the campus building in Porirua was sold by Aotearoa Institute. Aotearoa Institute used the proceeds of the sale to pay some of the outstanding interest on theadvance. The remaining interest was capitalised, along with the principal and secured over the campus in Te Rapa. The total amount due was $3.5 million. The loan attracts interest at 10% per annum and was repayable on 365 days demand. This matter was settled as part of the December 2006 agreement between the parties (refer note 21.2). At the date of signing these financial statements there were no amounts outstanding.

››› Leasing of Computers

During the year Te Wänanga o Aotearoa leased computers from Aotearoa Institute. The value of the lease was $2.1 million. Te Wänanga o Aotearoa then leased the computers to computer students enrolled with Te Wänanga o Aotearoa. Upon the successful completion of the course Aotearoa Institute awarded the computer to the student in the form of a scholarship. This arrangement was approved by the Tertiary Education Commission prior to being entered into and an agreement has now been reached for all computers not awarded to students to be gifted to Te Wänanga o Aotearoa.

›› 20.2 OMA Investments Limited (now GTL Investments Limited)

OMA Investments Limited is a fully owned subsidiary of Aotearoa Institute.

Te Wänanga o Aotearoa and MO1 Limited purchase student learning resources from Oma Investments Limited. Oma Investments Limited manages and distributes the inventory on behalf of Te Wänanga o Aotearoa and MO1 Limited.

For most of 2003 and 2004, William Wetere was General Manager of OMA Investments Limited. Prior to this he was employed as a senior manager at MO1 Limited.

Kingi Wetere was General Manager of MO1 Limited until early2004 and then moved into a senior position in Te Wänanga o Aotearoa. Kingi ceased being employed by Te Wänanga o Aotearoa in April 2005. He was a director of MO1 Limited from 2001-2005. In September 2006, Te Wänanga o Aotearoa entered into an agreement with GTL Investments Limited to provide management services to MO1 Limited which includedthe services of Kingi Wetere. He has recently been appointed to the position of General Manager, MO1 Ltd.

Rongo Wetere was Tumuaki of Te Wänanga o Aotearoa until December 2005. William Wetere and Kingi Wetere are sons of Rongo Wetere. Until 15 April 2005 Rongo Wetere was a director of OMA Investments Ltd.

Rongo Wetere, William Wetere and Kingi Wetere were all, at one time, directors of both OMA Investments Limited and MO1 Limited. Two other Te Wänanga o Aotearoa personnel (Min Marshall and Bruce Bryant) were for a time directors of OMA Investments Limited and MO1 Limited, while also holding management or governance positions at Te Wänanga o Aotearoa.

In late 2004 OMA Investments Limited issued Te Wänanga o Aotearoa with a trade rebate of $3.2 million including GST. $900,000 of this rebate was offset against invoices received in 2005 and the remaining amount was to be


offset against invoices in 2006 and 2007. This matter was subsequently settled as part of the December 2006 agreement between Te Wänanga o Aotearoa and Aotearoa Institute. (refer Note 21.2).

(In October 2003 Te Wänanga o Aotearoa purchased back stock from OMA Investments Limited at a cost of $1,677,259.)

›› 20.3 Glenview International Hotel and Conference Centre Limited

The Glenview International Hotel and Conference Centre Limited (“the company”) is a fully owned subsidiary of Aotearoa Institute. The company operates the accommodation and conference areas of the Glenview complex.

Te Wänanga o Aotearoa purchased the land and buildings comprising the Glenview Hotel Complex in Hamilton in 2003. During 2003-2004 Te Wänanga o Aotearoa renovated and up graded the facility which the company operates out of along with space at the site which was used for Te Wänanga o Aotearoa central library, offices and meeting rooms.

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)

›› 20.4 Ora Limited

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 2004 Te Wänanga o Aotearoa paid $23.78 million (2003 - $10.71 million) to Ora Limited 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 $2.3million (excluding GST). This amount is due to be repaid by September 2007.

›› 20.5 Awarua Limited

Susan Cullen is the sole shareholder and director of Awarua Limited. During 2004 Te Wänanga o Aotearoa reimbursed Awarua for the direct costs incurred in undertaking various Te Wänanga o Aotearoa special projects to the amount of $376,000. (2003 – MO1 Limited, a fully owned subsidiary of Te Wänanga o Aotearoa, paid Awarua $1.7 million, including GST, for the Lifeworks programme which is delivered by the Open Polytechnic of New Zealand.)

›› 20.6 Wairau Property Developments Limited

Susan Cullen is the sole shareholder and one of the directors of Wairau Property Developments Limited. Wairau Property Developments Limited leases properties to Te Wänanga o Aotearoa. During 2004 Te Wänanga o Aotearoa paid $79,000(2003 – nil) to Wairua Property Developments Limited.

›› 20.7 Power Chill NZ Limited

Kingi Wetere and William Wetere have a significant ownership interest in Power Chill NZ Limited. Power Chill NZ Limited is an air-conditioning business that has often tendered for and undertaken work for Te Wänanga o Aotearoa and MO1 Limited. Kingi Wetere and William Wetere are also directors of this company. During 2004 Power Chill supplied goods and services to Te Wänanga o Aotearoa to the value of $419,000 (2003 - $184,000).

›› 20.8 Aranui (2003) Limited

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 toTe Wänanga o Aotearoa. During 2004 the value of these services was $907,000 (2003 - $751,000).


›› 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 2004 Te Wänanga o Aotearoa paid MO1 Limited $18,065,424 for these services and MO1 Limited paid Te Wänanga o Aotearoa $3,551,044 as well as a Management Fee of $6 million.

21 Post Balance Sheet Events

Owing to the time delays experienced in finalising the 2004 accounts a significant number of events have occurred post balance sheet that will influence the ability of users of this financial report in making decisions or assessments about the information contained in this report.

›› 21.1 Appointment of Crown Manager and Crown Observer

In March 2005 Mr Brian Roche was appointed as the Crown Manager and Crown Observer. In the former position the Council delegated to him all financial delegations within the institution. In October 2006 Malcolm Inglis was appointed Crown Observer. Brian Roche continues to fill the role of Crown Manager for the organisation.

›› 21.2 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. (refer 20.1 – 20.3) 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 ($5.95 million) 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 give first right of refusal to Te • Wänanga o Aotearoa over 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.

›› 21.3 Executive Management and Structure of the Organisation

Since Balance Date the institution has undergone significant restructuring including the departure of the Tumuaki, Rongo Wetere. In addition there was an extensive process associated with Te Anga Whakamua which resulted in a significant reduction in staff numbers.

On 25 September 2006 Cabinet approved a fees exemption to allow the Chairperson of Council to work on a full time basis. The Chair started on a full time basis on 16 October 2006.


›› 21.4 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 initial funding facility, made available in May 2005, was for $20 million. The facility has been rolled over on 31 July 2005, 15 October 2005, 15 December 2005, 28 February 2006, 30 June 2006 and 30 November 2006. The current facility, which has been reduced to allow maximum drawings of $10 million, is due for repayment on 30 November 2007.

The facility has been under the direct control of the Crown Manager. It has been used to support the ongoing operation of the institution and to meet its financial working capital obligations. At the date of signing the financial statements, drawings of $6 million were held in an interest bearing account controlled by the Crown Manager, from which funds are made available from time to time. $4 million has been utilised on one occasion during the course of 2005 and drawings of up to $4.5 million were made in December 2006. This amount has subsequently been repaid to the account.

The net cost of the interest on the loan was $101,549 in 2005 and $64,327 in 2006.

›› 21.5 Property Portfolio

During 2005 a review was undertaken of the property portfolio and as a consequence of this review a rationalisation of the portfolio commenced and a number of surplus owned and leased properties have been progressively exited.

As at the date of these accounts 91 leases have been terminated. 7 properties worth $4.663 million have been sold.

›› 21.6 Legal Challenges

Since balance date the institution has been subjected to significant legal challenges with respect to the legality of the Council and its constitution. These matters, together with several other legal matters associated with the employment of the Tumuaki, have now been settled in favour of the institution.

›› 21.7 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 is no longer a member of the Council of Te Wänanga o Aotearoa.

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

The first enrolments under this pilot project were taken in November 2006 with 356 members of Unite Incorporated enrolling in a 12 month computer course offered by TeWänanga o Aotearoa. These students undertake their studies at premises in central Auckland leased by Unite Incorporated from an independent third party. This lease is guaranteed by the Aotearoa Institute.


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 and enrolment services;•

provision of the serviced premises in central Auckland • inclusive of all outgoings, security and reception;

full access to the premises for students; •

ongoing pastoral care for students; and•

dual branding of the premises.•

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.

Further opportunities under this relationship are currently being investigated.

22 Legislative Compliance

Te Wänanga o Aotearoa breached the Public Finance Act 1989, in that its audited financial statements were not available within 120 days of 31 December 2004.

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 for Education. Te Wänanga o Aotearoa did not obtain approval from the Secretary for the mortgage on a property in Mängere.


Statement of Commitments and Contingenciesfor the year ended 31 December, 2004

Commitments

Capital Commitments

Buildings

2004 2003

$000 $000

Estimated capital expenditure contracted for at balance date, but not

provided for

Capital Commitment at the following Campuses

Gisborne - 170

Glenview Refurbishment 370 5,908

Hamilton - 765

Rotorua - 555

Mängere - 240

Tokoroa 61 964

Palmerston North - 85

Te Awamutu - 249

Capital grant from the Ministry of Education to build childcare centres 836 836

There were no additional commitments on behalf of the Group.

Non-cancellable Operating Leases

Buildings

2004 2003

$000 $000

Not later than one year 4,856 3,719

Later than one year and not later than two years 4,234 2,008

Later than two years but not later than five years 9,765 2,457

Later than five years 7,485 2,516


Cancellable Operating Leases

Computers and Equipment

2004 2003

$000 $000

Not later than one year - 122

Later than one year and not later than two years - -

Later than two years but not later than five years - -

Vehicles

2004 2003

$000 $000


Finance Leases

There were no finance leases held by Te Wänanga o Aotearoa at balance date.

Vehicles

2004 2003

$000 $000



Contingencies

Personal Grievances

As at 31 December 2004 there were 11 open personal grievance claims against Te Wänanga o Aotearoa. Of these 11 claims 5 are still active. They are considered to be low risk and unlikely to proceed.

Carich Training Centre Limited (Carich) (in liquidation)

In February 2003 the Receivers of Carich made a claim amounting to $10.5 million against Te Wänanga o Aotearoa for breach of contract. Te Wänanga o Aotearoa believes the claim to be defendable and consequently no provision has been made in the financial statements.

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

Prior to balance date Aotearoa Institute had indicated that it intended to make a claim against Te Wänanga o Aotearoa for intellectual property and artworks transferred to Te Wänanga o Aotearoa on its formation. This claim has subsequently been settled as part of the agreement between the parties (refer note 21.2 in the notes to the Financial Statements).

InfoQuest

In 2005 a claim from Infoquest, a Malaysian software developer, was received with respect to services supplied to Te Wänanga o Aotearoa. On the basis of the analysis undertaken and the legal advice received no amounts have been set aside on this claim.

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

2004 annual report

Documents