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AUN Le p oRr t E2 0 P 2012 CON L AU n n uA al R 12 O R T


DIRECTORY 2012 UCOL Council Current Mr Trevor Goodwin Chairperson

Appointed by the Minister of Education

Mr Malcolm Inglis BCA BSc (Hons) Deputy Chairperson

Appointed by the Minister of Education

Mr David Baker Dip Ag (Lincoln) Dip VFM,

Appointed by the Minister of Education

Registered Valuer ANZIV, Registered Agribusiness Consultant FNZIPIM, JP

Ms Pamela Jefferies OBE FCA FNZIOD

Appointed by the Minister of Education

Mr Paul McElroy MBA

Council Appointment

Professor Tom Prebble PhD (Alta)

Council Appointment

Ms Sue Walbran PhD DEd PostGradDipHSM

Council Appointment

Ms Lynette Bradman Dip Tchg Med

Council Appointment (nominated by Iwi)

Secretary To Council Ms Carol Christison

Council Secretary

UCOL Management Mr Paul McElroy MBA

Chief Executive

Ms Clare Crawley MA

Deputy Chief Executive Strategy (0.75FTE)

Ms Bonnie Dewart MA DipTching DipSLT

Deputy Chief Executive Academic and Dean, Educational Delivery & Innovation Faculty

Mr Darryl Purdy CA

Chief Financial Officer

Mr Clive Jones BTech MBA MInstD

Deputy Chief Executive Strategy (0.25FTE) and Executive Dean, Humanities & Business Faculty (until 1/11/12)

Mr Steve Sorsby BA PostGradDipIS

Acting Executive Dean, Humanities & Business Faculty (From 2/11/12)

Ms Penny O’Leary M Mgt BA SocSci RGON CertTertTchg

Executive Dean Health Science Faculty

Mr Kelly Gay M Mgt PostGradBus & Admin (Management)

Executive Dean Trades and Technology Faculty

Ms Julia Pedley LLB (Hons) MBS (Hons) FAMINZ (Arb/Med)

Principal, Whanganui Campus

Ms Jane Barton BA

Director Academic Development

Mr Teina Mataira BA PostGradDipTchg

Kaiarahi/Director Maori

Ms Carol Christison

Executive Manager Corporate

Mission Statement UCOL will provide its communities with universal access to applied education and training that enhances student development and career potential.


CONTENTS OVERVIEW Chairperson’s Report.......................................................................................................... 4 Chief Executive’s Report.. .................................................................................................. 6 Highlights.............................................................................................................................. 9 Statement of Responsibility............................................................................................ 10 Independent Auditors Report.......................................................................................... 11

STATEMENT OF SERVICE PERFORMANCE Statement of Service Performance................................................................................ 14

FINANCIAL STATEMENTS Statement Of Accounting Policies...............................................................................................................22 Income Statement...............................................................................................................................................30 Statement of Comprehensive Income......................................................................................................31 Statement of Changes In Equity...................................................................................................................32 Balance Sheet.........................................................................................................................................................33 Cash Flow Statement.........................................................................................................................................34 Notes to the Financial Statements.............................................................................................................35

STATEMENT OF RESOURCES Equal Education Opportunities.. ..................................................................................... 64 Equal Employment Opportunities. . ................................................................................ 66 Statement of Physical Resources................................................................................... 67 Statement of Human Resources.. .................................................................................... 68 Statement of Research 2012. . ........................................................................................... 70 Research Statements 2012. . .............................................................................................. 71 Research Outputs for 2012 . . .............................................................................................. 73

APPENDIX SUPPLEMENTARY INFORMATION Performance Indicators by Output Group.. .................................................................. 82 Outline of Corporate Performance – Whanganui Ucol. . ........................................... 89

UCOL Annual Report 2012

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Chair designed and crafted by Rowan Dicks, Lecturer in the Diploma of Furniture Design and Making.

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OVERVIEW

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CHAIRPERSON’S Report The year under review was a particularly challenging one that tested the mettle of the Council, Management, teaching staff and other personnel alike. However the Institution has made real progress during the year and some of the highlights were: • The continued development of the Council after implementing a number of recommendations from a Governance Effectiveness Review completed early in the year. • The completion of the Safer UCOL Buildings Project to ensure that our buildings are over 67% of New Building Standard (NBS). • The successful result of our first Self Assessment/External Evaluation Review. • The Minister of Tertiary Education Steven Joyce opening our new Regional Trades and Technology Centre in Palmerston North on 12 October 2012. • The official opening of the Le Cordon Bleu Institute in Wellington by Prime Minister John Key on 8 October 2012. • The continuing success of Project Transform and the resulting improvement in our educational performance indicators.

• The negotiation of our 2013 Investment Plan

• Meeting with a number of stakeholders, including Iwi, in the Whanganui, Manawatu and Wairarapa regions. •

The opening of the U-Kinetics health training facility which is a particularly exciting venture in collaboration with the MidCentral District Health Board, MidCentral PHO, Health Workforce New Zealand and TBI Health.

Participating in the Ministerial visit to India to assess the opportunities for New Zealand tertiary institutes to assist them with the massive challenge of training 500 million people in the next 10 years.

• The completion of the first phase of the Arts and Design Prospective which investigated the future needs for Fine Arts education. • The preparation of a draft Whanganui Education Plan, containing valuable data and stakeholder views about the community’s future tertiary education needs. • The successful graduation ceremonies for our many graduates. • The awarding of Council honours to 5 very worthy recipients.

Safer UCOL Buildings Staff and students began the year in much safer buildings due to the completion of strengthening and rebuilding work on all 3 campuses during 2012. However two buildings in Palmerston North and two on the Whanganui campus remain vacant pending developments in construction techniques so that we can make these buildings safer in an economic way.

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Project Transform Project Transform has continued to deliver successful results in teaching and learning as evidenced by the improved performance in our results. I commend both Deputy Chief Executive (Strategy) Clare Crawley and Deputy Chief Executive (Academic) Bonnie Dewart in championing this initiative and ensuring that it was well resourced and supported by the Council and Management. The Council has closely monitored the progress of this programme and supports the evolution of this project into the area of High Performing Teaching Teams in 2013.

Self Assessment / External Evaluation Report UCOL received its first External Evaluation Report and has been rated as Confident in Educational Performance and Confident in Self-Assessment by the New Zealand Qualifications Authority. The UCOL Council’s development of five new goals, with a strong focus on student achievement and the implementation of Project Transform aimed at improving completion numbers, formed the basis for the ‘Confident’ ratings.

Le Cordon Bleu In our on-going partnership with Le Cordon Bleu and Weltec, we were delighted to be a part of the official opening of the Le Cordon Bleu New Zealand Institute in Wellington in October. Prime Minister John Key and Le Cordon Bleu International President, André Cointreau, did the honours. The Institute will build its role to an operating capacity of 300 students, mostly from overseas. Our involvement is part of a strategic goal to create a diversity of income.

Stakeholder Engagement During the year Council members took the opportunity to meet with Ngati Kahungunu Iwi representatives, members of the Whanganui Chamber of Commerce, the Tertiary Education Commission, AS@U President, Kylie Jefferies, and the Wairarapa DHB Board Chair and Chief Executive.


CHAIRPERSON’S Report Council Honours

Funding changes

2012 UCOL Honours Awards recipients were announced at graduation ceremonies. Recipients were:

As part of the Investment Plan commitments tertiary institutes are expected to balance the programmes they offer with government priorities, industry requirements and student demand, as well as achieving targets for student completion rates. In addition all tertiary institutes are required to make a 3-5% financial surplus each year.

Bob Francis, former Mayor of Masterton, who received the Council’s highest Honour, the Honorary Fellow award. The award recognises an outstanding and distinguished contribution to UCOL and/or the wider community. Mr Francis has a longstanding interest and involvement with tertiary education in the Wairarapa. He was involved in the inception of Wairarapa Community Polytechnic in 1989 and has worked tirelessly to grow the region and enhance its reputation and population. Many attractions in Masterton are testament to his time as Mayor – including Aratoi, Genesis Recreation Centre, Masterton Skate Park, Queen Elizabeth Park and playground, Shear History Trust, and Pukaha Mt Bruce. Wairarapa-born chef Al Brown received the Honorary Associate award for a significant and distinguished contribution. Mr Brown is a chef, television presenter, writer, fisherman and restaurateur who has cooked in and owned restaurants in North America, Europe and New Zealand. He has been a culinary ambassador for New Zealand Trade and Enterprise since 2003 and he maintains a strong connection with his home region. Mr Brown has contributed significantly to New Zealand’s profile internationally and is a great ambassador for New Zealand and the region. Artists Paul and Fran Dibble were awarded Honorary Fellowships. Honorary Fellow Awards are made to people outside UCOL who have made an outstanding and distinguished contribution to the institution and/or the wider community and society in general. Paul and Fran Dibble have lived and worked in Palmerston North for more than 30 years, with Paul working full-time as a sculptor in an inner-city foundry. Earlier Paul lectured at the Palmerston North College of Education and Fran lectured in biochemistry and molecular biology at UCOL. Both have exhibited widely in Palmerton North as well as nationally and internationally.

The UCOL Council understands that government funding priorities for 2013 are about matching skills supply with demand, boosting science, technology, engineering and maths related study, and a focus on young people and Maori achieving qualifications. Providing industry relevant programmes that add to a productive workforce are key elements embedded in these priorities. As a result of government’s funding priorities and allocations, UCOL faced an overall $2.6 million reduction in revenue heading into 2013 which equated to funding for 375 fewer full time equivalent students. In the last quarter of the year management embarked on a process to realign 2013 activities with the new, lower funding levels. The end result is an approved budget for 2013 that matches our funding and places us in a stronger position for future sustainability and with a range of over 90 programmes on offer.

Personnel I would like to express my sincere thanks to our Chief Executive Paul McElroy and all of the personnel at UCOL for managing the institution through what was a very challenging year. This was a difficult time for everyone and the Council recognises the dedication and sensitivity of senior staff during this process.

Trevor Goodwin Chairperson

Jule Einhorn, former Project Director at UCOL’s Palmerston North campus received an Institutional Medal for particularly meritorious services to UCOL. Ms Einhorn managed the enormous task of transforming UCOL’s Whanganui former campus into the new campus entity Te Matapihi ki te Ao in 2008. Her ability to achieve inclusivity, ensuring that Whanganui iwi were partners in the new campus project from the outset, was acknowledged. Ms Einhorn also managed the disposal of parts of the old campus and led negotiations with the Tupoho Whanau Trust to establish a Community Complex at the old UCOL campus.

Whanganui Education Plan In August 2012 the Council received a draft Whanganui Education Plan which included regional data and stakeholder views. Subsequent to this the UCOL Council agreed to establish a joint Taskforce with the Whanganui District Council to look at some major issues which will contribute to further work on this Plan in 2013.

CE Paul McElroy and UCOL Council Chairperson Trevor Goodwin congratulated 275 graduates at Whanganui’s annual Graduation ceremony in March.

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Chief Executive’s Report The year was full of continued emphasis on initiatives that improve our educational performance and support our student and staff achievements. In particular Project Transform continued to go from strength to strength as I reported last year, and is widely acknowledged amongst the sector and by the Tertiary Education Commission for having a positive impact on student success. Project Transform coordinates a number of initiatives aimed at improving educational outcomes across UCOL and works holistically to focus the institution on lifting its game. Another dimension will be added in 2013 in the area of High Performing Teaching Teams (HPTT). HPTT seeks to build on the existing great teaching at UCOL and support teachers, within their teams, to further improve their professional practice.

Positive rating for Performance We were rated as Confident in both categories of the New Zealand Qualifications Authority’s first External Evaluation and Review of UCOL. The review rated us as Confident in Educational Performance and Confident in Self-Assessment. In the report, our Bachelor of Nursing programme received an Excellent rating for both educational performance and self-assessment. The report also noted the commitment of staff to their students across the three campuses in Palmerston North, Whanganui and Wairarapa, the targeting of support for Maori students, and the number of examples of innovative teaching practices enhancing learning.

Staff Achievements UCOL Video Lecturer Mel Edmon’s short film Steam Machines was selected for the prestigious Berlin Independent Film Festival (BIFF). Mel created Steam Machines using a technique called fusion. Her film gained a Silver Distinction award at last year’s Epson/New Zealand Institute of Professional Photographers (NZIPP) Iris Professional Photography Awards. Whanganui School of Design lecturer Debbie Hahn and Bachelor in Applied Visual Imaging Photography lecturer Kaye Davis were invited to exhibit their work

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in the Shanghai International Science & Art Exhibition. They won the Excellent Artwork Award for their photography exhibition, one of only ten excellence awards. Their work was also shown at the International Science and Art Exhibition in Macau later in the year. In September, our Photography staff and students shone at the NZIPP Awards. Lecturer Anna Kernohan won the Landscape Category with one Gold Distinction, four Silver and one Bronze award. Other teaching staff to win awards were: Kaye Davis (One Gold, two Silver Distinction, and four Bronze awards), Melissa Edmon with a Silver Distinction award, Ian Rotherham with two Bronzes and Paul Gummer with a Bronze award. Staff and students on our Professional Cookery Level Four programme won six medals at the National Culinary Fare competitions in Auckland. Chef lecturer Warren McKenzie won first placing with his duck dish. Fine Arts Senior Lecturer Lorraine Webb was selected to appear in the latest edition of the landmark book, 240 Years of New Zealand Painting. The book is widely used in schools and tertiary education institutions. Whanganui Glass lecturer Dr Kathryn Wightman claimed a first prize in the Taranaki National Art Awards. Her work won the Shell Todd Oil Services Ltd 3D Award. Bachelor of Fashion lecturers Junette Ward and Cassandra Knight were selected to take part in the Cult Couture Fashion Show in Auckland, with a collaborative design called Extinct – Still Life 3. Exercise and Sports Performance lecturer and Brazilian ju-jitsu fighter Vaughan Antonio came close to gold at the Oceania wrestling and grappling championships in Sydney in January. Vaughan won two silvers in the senior men's Gi (uniform) and no Gi (no uniform) under 110kg open classes, and was only one point off winning the gold in the no Gi.

Staff Awards UCOL Staff Awards are administered by the Staff Council which

receives nominations and makes recommendations. Each award is worth $5,000. I am pleased to congratulate the following 2012 Staff Award winners: The Gill Presland Award for a lecturer in their first two years of teaching went to sports tutor in the Certificate in Sports and Exercise Performance, Whanganuibased Jon Bailey. Jon started teaching at UCOL in 2010. He has a well-developed teaching philosophy, is focused on individual student success and retention, and is committed to on-going personal and professional development which is immediately integrated into practice. He has also contributed strongly to the development of a new look curriculum and delivery model and his nomination was strongly supported by his managers, colleagues and students. The Derek Lake Award for an outstanding contribution to research went to Senior Lecturer in Information Systems, Aaron Steele, who is based at the Palmerston North campus. Aaron has been actively involved in wide-ranging research since commencing employment at UCOL. Sporting a long list of research projects, Aaron has presented research findings at UCOL, as well as nationally and internationally - and is recognised for his expertise through invitations to participate on judging panels, to present at conferences, to hold workshops at other tertiary institutions, and to co-edit a well recognised journal in his expertise area.


Chief Executive’s Report The Alan Furness Award for Excellence in Teaching and Learning went to Palmerston North Nurse Education Team members Marie Henderson and Han Roeters. Marie and Han rose to a challenge and were largely responsible for the design and development of a significant new teaching area – the new simulation laboratory - on the Palmerston North campus. They also developed activities to best utilise the area and have been proactive in establishing effective operating systems. The new simulation laboratory is mainly used for nursing students but has potential for wider use in the faculty. Providing a simulated clinical learning environment with manikins that speak, cough, wheeze, and vomit, while attached to all the hospital gadgetry that shows their blood pressure, pulse etc. has meant students are introduced to complex health care situations in a safe environment. The Julia Camden Award for General or Non-Lecturing Staff, recognising an outstanding contribution to organisational development and support, was awarded posthumously to Tom Pasley who passed away on 12 November last year. Tom was a much respected member of the Student Experience Team at the Palmerston North campus as a Systems Librarian. Tom’s knowledge and contributions reached across all of UCOL as well as the wider library communities, both nationally and internationally. Tom contributed to the Targeted Programme initiative with the Student Experience Team and helped students succeed in their study.

Opportunities for young people In November we celebrated the graduation of 67 U-Skills students. These secondary school students are the first graduates of the new Trades Academy, U-Skills Central Schools Academy, led by UCOL. Trades academies allow students to be enrolled at both their secondary school and a tertiary training provider. Students from twenty-one secondary schools in the UCOL Region were involved in the academy. Our youngest students are aged 16 and 17 and come to UCOL through the Youth Guarantee programme. The experience

(and the qualification they receive) can be life changing. In 2012, 47 Youth Guarantee students graduated at UCOL. These young folk are carefully nurtured in the UCOL environment, and value our award winning support services as they adjust to the tertiary environment and to the success of their study. UCOL has 2668 students (61 per cent) of students aged under 25 years and 354 (8 per cent) under the age of 18. Participation of youth at UCOL is above the sector median, showing strong regional need for quality provision.

More students completing The number of students who successfully complete courses at UCOL is continuing to increase. Course completion results improved 9 per cent year on year, from 62% in 2010 to 71% in 2011. Results for 2012 are positive and improving, especially for students aged less than 25 and for Maori students. There is still room for improvement and we will continue to focus on this in coming years. UCOL’s Investment Plan performance commitments include achieving course completion parity for Maori students by 2015. This means that we are committed to improving educational outcomes for our Maori students by 24 per cent over the next three years.

institution professional development programme which supports teachers to change their practices, expectations and beliefs about Maori learners and to focus on what they as teachers can do to make a difference.

International Nursing Students During the year international nursing students and graduates across the country raised concerns about unexpected difficulties gaining Nursing Council registration in New Zealand. NZQA carried out a review that involved Immigration New Zealand, Nursing Council New Zealand, and polytechnics offering programmes for internationally qualified nurses. UCOL was an active participant and we helped our students and graduates with a solution to help them gain New Zealand registration with the Nursing Council. The results are stronger linkages with students and graduates, and affirmation by NZQA and NCNZ of the quality of teaching on offer at UCOL. UCOL is developing a new Graduate Diploma in Nursing in New Zealand Level 7 especially for overseas registered nurses who wish to become registered in New Zealand. This will be available in 2014.

Creating new partnerships

Rourou Aronui, UCOL’s Maori Strategy has been developed with input from staff, and informed by iwi strategies and education plans, national priorities and strategies, research, and demographic and demand reports.

Our ground-breaking new U-Kinetics Centre was officially opened on 17 August by Associate Minister of Health Tariana Turia. The clinic is an excellent example of a partnership with the health sector to bring benefits for patients. Staff and students on our Postgraduate Diploma in Clinical Exercise Physiology work with clients to help them recover from ailments such as heart attacks, diabetes and musculo-skeletal injuries. The unique centre was developed with support from MidCentral Health, the MidCentral PHO, Health Workforce New Zealand and TBI Health.

One of the main focuses for Rourou Arouni in 2013 is establishing UCOL as a Te Kotahitanga institution. Te Kotahitanga has had success in the secondary school sector and UCOL intends to adapt it for the tertiary sector. It is a whole of

Our new Regional Trades and Technology Centre in Palmerston North was opened by the Minister of Tertiary Education, Skills and Employment, Steven Joyce on 11 October. The Minister said training provided at the centre is in line with

We are doing well in other areas measured by the Tertiary Education Commission, including retaining students in study; student’s progressing to a higher level of study, and completion of qualifications.

Rourou Aronui

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Chief Executive’s Report the Government’s wish to get young people into productive employment, and noted the demand for skilled people in construction. The centre has flexible, shared workshop space, high spec equipment and space for Carpentry students to build three bedroom houses under cover. The discovery phase of our Prospective project to scope the future of art and design education also allowed us to connect and partner with a wide range of people from the creative sectors. The project generated a wealth of information from symposiums, surveys, contributions from external practitioners and research. Most of the ideas will take time to evaluate and research. However, as an indication of some directions for the future, we will progress the introduction of a Masters in Design Thinking, build capability for a Maori dimension in a number of our existing arts and design

programmes, as well as enhancements to our Bachelor of Applied Visual Imaging and Fashion programmes. In Whanganui we gathered data and stakeholder views to inform a Whanganui Education Plan. This is work in progress and will be continued in 2013. We were pleased to join with the Whanganui District Council to establish a Taskforce to look at the fine arts and glass ambitions of the community, opportunities for programmes which are science, technology, engineering and maths focused, options for people who are not in employment, education or training, and improving the community’s connections with UCOL. This work will contribute to the Whanganui Education Plan. In November we took part in the Westpac Manawatu Business Awards: The UCOL Maori in Business award went to Manawatu’s cultural museum of art, science and history, Te Manawa.

The award acknowledges the successful incorporation of traditional and contemporary Maori values into business practices.

Embracing the future We’ve had to adapt to changing government priorities, funding regimes and compliance measures, however our longstanding commitment to changing lives through education and knowledge, and our focus on our students, remains. Students make informed choices that best suit their needs. At UCOL, we have to remain focused on meeting the needs of these learners, especially in the competitive tertiary environment.

Paul McElroy Chief Executive

STUDENT PROFILE

Chris Creek - Bachelor of Exercise & Sport Science Third year Bachelor of Exercise & Sport Science student Chris Creek had a taste of elite sports training in the last year of his degree and is determined to pursue that career path. The 24 year old was involved in a partnership programme between UCOL and NZP YoungHeart Manawatu that was instigated in 2012. The UCOL Exercise and Sports Science team, of which Chris was a part, was in charge of the physical conditioning, injury prevention and recovery programme for the local ASB Premiership football team. Chris has a passion for strength and conditioning and would ultimately love to be a conditioning coach on a professional sports team. “That would be the perfect job for me,” To this end Chris intends to continue his studies by undertaking a Master’s degree. “I’m just having a break from study this year to gain on the job experience and earn some money.” He is presently a Personal Trainer at Feilding’s Evolve Fitness, a job he started the week after his final exam. “The practical experience I gained working with real clients on the Bachelor of Exercise & Sport Science programme gave me the confidence to move straight into the work force,” he says. Chris is really enjoying putting his skills into practice and the variety of dealing closely with each of his clients. “No two people are the same, so no two days are the same.”

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HIGHLIGHTS Trades and Technology

Art and Design

Minister of Tertiary Education, Skills and Employment, Steven Joyce opened our Regional Trades and Technology Centre in Palmerston North on 11 October. The centre has flexible, shared workshop space, high spec equipment and space for Carpentry students to build a three bedroom house under cover.

The discovery phase of our Prospective project to scope the future of art and design education generated a wealth of information from symposiums, surveys, contributions from external practitioners and research.

Our Rebuild NZ initiative is helping to meet the demand for skilled Construction workers. Our 6 Star House project, to design and build a cost-effective, sustainable eco house, contributed to our students’ learning and to the knowledge of builders in the industry. Indicative of our more targeted approach to helping young people to succeed, during 2012 we partnered with iwi to equip young Taumarunui Maori with the skills to help in the Christchurch rebuild. The project is supported by the Hinengakau Development Trust, with help from the Ministry of Social Development, Te Puni Kokiri and the local council. Thirteen students will complete our pre-apprenticeship Carpentry certificate, in time to start work in Christchurch as apprentices later next year. A national qualification in urban bus driving was made available in Auckland for the first time. UCOL is the only provider to offer the National Certificate in Passenger Service (Urban Bus Driver), leading to safer, more efficient driving. Our students and lecturers prevailed at the 2012 Kawerau Woodskills Festival, winning a total of 11 awards. This included first prize for student Sophie McKay in the Furniture section and a first in the Novice section for student Nick Dekker. Students on our Professional Cookery Level Four programme won five medals at the National Culinary Fare competitions. Chef lecturer Warren McKenzie also won with his duck dish and student Cinnamin Waiomio became the top trainee soup maker.

The excellence of our Photography programmes was confirmed with the highest awards in New Zealand’s three leading competitions. Bachelor of Applied Visual Imaging student Grant Matthew won the Canon EYEcon photographic competition. Photography students also won 66 awards at the Epson/New Zealand Institute of Professional Photographers (NZIPP) Iris Professional Photography Awards. The introduction of the Certificate in Contemporary Music at Whanganui confirmed demand for this creative programme, now available at all three campuses. Music students stage concerts throughout their study, bringing pleasure to our communities and valuable experience for the students. The first Design Distinction Awards for young designers attracted entries from throughout the North Island. The competition is a joint venture between UCOL, the Eastern Institute of Technology (Hawkes Bay) and the Nelson Marlborough Institute of Technology. Sponsors included Air New Zealand Grabaseat. In Whanganui, works by artists and photographers from Japan, the United States and New Zealand, and students and faculty from the Quay School of the Arts and the Computer Graphic Design programme went on show in the biennial Alternatives Relocated 2012, sponsored by UCOL . The end of year also saw the annual Artrageous festival of arts and design showcase the best of our students’ work.

Health Sciences Our ground-breaking new U-Kinetics centre was officially opened on 17 August by Associate Minister of Health Tariana Turia. The clinic is a partnership with the health sector to bring benefits for patients. Staff and students on our Postgraduate Diploma in Clinical Exercise Physiology work with clients. Our Bachelor of Nursing programme continued to meet health sector needs, with committed, professional and skilled graduates. In 2012 a total of 100 Nursing and Enrolled Nursing students graduated from UCOL, with a 100 per cent pass rate in State Finals. During 2012 we teamed with NZP YoungHeart Manawatu to provide state of the art physical conditioning, injury prevention and recovery packages for squad members by our exercise and sport science staff and students. A similar partnership with the NZ Army has enhanced the fitness of Linton-based troops.

In June Computer Graphic Design Honours student Max Deutschle won the 2012 Fieldays No. 8 Wire National Art Award. Max’s winning entry was a 3D outline of a tiki constructed in No.8 wire.

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STATEMENT OF RESPONSIBILITY For the Year ending 31 December 2012

In terms of Section 220 of the Education Act 1989 and Section 155 of the Crown Entities Act 2004, we hearby certify that:

We have been responsible for the preparation of these financial statements and the statement of service performance and judgements used therein. We have been responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. We are of the opinion that these financial statements fairly reflect the financial position and operations of the institution for the year ended 31 December 2012.

Trevor Goodwin Council Chairperson

Paul McElroy Chief Executive

Date: 24 April 2013

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INDEPENDENT AUDITORS REPORT To the readers of Universal College of Learning (UCOL) and group’s financial statements and non-financial performance information for the year ended 31 December 2012

 

The Auditor-General is the auditor of Universal College of Learning (the Institute) and group. The Auditor-General has appointed me, Phil Kennerley, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and non-financial performance information of the Institute and group on her behalf. We have audited:

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the financial statements of the Institute and group on pages 22 to 61, that comprise the balance sheet as at 31 December 2012, the statement of comprehensive income, statement of changes in equity and cash flow statement for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and the non-financial performance information of the Institute and group in the statement of service performance on pages 14 to 20.

Opinion In our opinion:

the financial statements of the Institute and group on pages 22 to 61:  comply with generally accepted accounting practice in New Zealand; and  fairly reflect the Institute and group’s:  financial position as at 31 December 2012; and  financial performance and cash flows for the year ended on that date; the non-financial performance information of the Institute and group on pages 14 to 20 fairly reflects the Institute and group’s service performance achievements measured against the performance targets adopted in the investment plan for the year ended 31 December 2012.

Our audit was completed on 24 April 2013. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and non-financial performance information are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and non-financial performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and non-financial performance information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and non-financial performance information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Institute and group’s preparation of the financial statements and non-financial performance information that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Institute and group’s internal control. An audit also involves evaluating:

   

the appropriateness of accounting policies used and whether they have been consistently applied; the reasonableness of the significant accounting estimates and judgements made by the Council; the adequacy of all disclosures in the financial statements and non-financial performance information; and the overall presentation of the financial statements and non-financial performance information.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and non-financial performance information. Also we did not evaluate the security and controls over the electronic publication of the financial statements and non-financial performance information. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. Responsibilities of the Council The Institute’s Council is responsible for preparing financial statements that:

 

comply with generally accepted accounting practice in New Zealand; and fairly reflect the Institute and group’s financial position, financial performance and cash flows.

The Council is also responsible for preparing non-financial performance information that fairly reflects the Institute and group’s service performance achievements measured against the performance targets adopted in the investment plan. The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and non-financial performance information that are free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the financial statements and non-financial performance information, whether in printed or electronic form. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and non-financial performance information and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004. Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Institute or any of its subsidiaries.

Phil Kennerley Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand

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Matters relating to the electronic presentation of the audited financial statements and statement of service performance This audit report relates to the financial statements and statement of service performance of Universal College of Learning (UCOL) and group for the year ended 31 December 2012 included on UCOL and group’s website. The UCOL’s Council is responsible for the maintenance and integrity of UCOL and group’s website. We have not been engaged to report on the integrity of UCOL and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website. The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance as well as the related audit report dated 24 April 2013 to confirm the information included in the audited financial statements and statement of service performance presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

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STATEMENT OF SERVICE PERFORMANCE

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STATEMENT OF SeRVICE PERFORMANCE STUDENT ENROLMENTS – TOTAL EFTS 2012 – EFTS BY OUTPUT OUTPUT

Actual 2012

Actual 2011

1

Agriculture, Horticulture and Science

288

274

2

Arts, Design and General Education

1146

1195

3

Engineering and Technology

161

140

4

Nursing and Health

719

718

5

Business, Office Systems, Computing and Law

668

747

6

Trades and Industry Based Training

695

628

3677

3702

TOTAL EFTS

Note: Of the total 3677 EFTS, 3219 EFTS were government funded. The balance of 458 EFTS used a variety of self-funded sources. In 2011 3,302 EFTS were government funded.

ACTUAL STUDENT STATISTICS UCOL processed enrolments for a total of 6702 students as profiled in the graphs below. GENDER Male total

2858

Female total

3844

TYPE Student workload greater than 0.8 EFTS

2715

Student workload between 0.3 and 0.8 EFTS

1821

Student workload less than 0.3 EFTS

2166

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Statement of Service Performance 300

STAFFING

250

Total Full Time Equivalent Teaching Staff 2008 – 2012

200

2012 Actual total

227

2011 Actual total

210

2010 Actual total

211

2009 Actual total

226

2008 Actual total

228

150

100

50

0 2012

2011

2010

2009

2008

The Government’s expectations for the tertiary education sector are set out in the Tertiary Education Strategy (TES) (2010-2015). The vision for tertiary education is: relevant and efficient tertiary education provision that meets the needs of students, the labour market and the economy. TES Priority groups include: Young people (aged under 25); Maori students; Pasifika students; young people transitioning from school to tertiary; and students with literacy, language and numeracy needs. UCOL’s strategic goals include: improving educational access and outcomes; improving Maori educational outcomes; revenue diversification; organisational capability and sustainability; and specialisation (Health, Trades, and Art and Design). The strategic goals respond to the TES vision, along with regional needs and institutional direction. UCOL’s Investment Plan (2011-2013) confirms our strong commitment to the TES and restates a number of aspects of our strategic goals. Specific performance commitments are made in the Investment Plan in relation to participation and educational performance. These two areas are a subset of the five strategic goals and, as a consequence, the reporting against strategic goals and the Investment Plan in the following sections are combined.

The environment in which we operate UCOL covers a large geographic area of the North Island (3,016,983 hectares). The population of this region was 260,193 in 2006. UCOL is a multi-region provider with delivery in Whanganui, Masterton, Palmerston North, Auckland, Levin and Taumarunui. There are important, if small, concentrations of potential learners in the wider region who find it difficult, if not impossible, to access tertiary education. Transport, broadband access and costs are key barriers to engagement. The UCOL region has pockets of population growth and areas of population stability or decline. While Manawatu and Palmerston North are areas of growth and of positive socio-economic conditions including levels of educational attainment, many other areas in the region have sustained low socio-economic conditions and low levels of educational attainment.

• All parts of the region have a high proportion of the population in the 0 – 14 year group and the over 50 years group.

• The region as a whole has a higher proportion of Maori in its population, than New Zealand as a whole.

• The numbers of Maori aged 15 – 39 will continue to grow while the rest of the population is in decline.

• The Pasifika population across the region is small compared to New Zealand as a whole.

• The wider Whanganui region and Horowhenua region have significant proportions of their populations in the most deprived deciles.

• The region as a whole has a significantly higher proportion of people with no qualifications than New Zealand as a whole.

Vision Together creating great futures through innovative education and training.

Mission UCOL will provide its communities with universal access to applied education and training that enhances student development and career potential.

UCOL Annual Report 2012

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Statement of Service Performance Improving Educational Access and Outcomes Students at UCOL are encouraged and supported to achieve their full potential to learn and contribute to their communities. UCOL seeks continuous improvements in all aspects of its academic provision to achieve this goal. Improving the participation and success of priority groups, including the high proportion of the population with no qualifications, is a key component of lifting the region’s overall educational achievement levels.

Improving Maori Educational Outcomes UCOL is committed to the obligations of Te Tiriti o Waitangi and in particular working with whanau, hapu and iwi to ensure Maori achieve educational success as Maori. UCOL supports the Government’s “commitment to being a just and ethical government” and seeks to provide equitable outcomes for all of our students. Improving completion outcomes remains the main target.

Revenue Diversification UCOL is pursuing a number of avenues to ensure its current and long term financial sustainability. UCOL will continue to pursue efficiencies in systems and operations. Diversification of revenue base is a priority and within that increasing international student numbers is a key target. Ensuring UCOL retains a critical mass of provision in SAC funding EFTS is also a priority.

Organisational Capability and Sustainability Capability to respond to an on-going volatile policy environment and improving educational outcomes for students relies heavily on staff capability and commitment, and wise management of resources. UCOL places emphasis on improving teaching quality and on ensuring processes and policies are effective for organisational operations.

Specialisation There are three key areas of specialisation for UCOL – Health, Trades, and Art and Design.

Health Health is a growing industry internationally. UCOL has a strong portfolio of health related programmes, and the ability to widen and deepen this provision. UCOL has been working with health stakeholders to identify how it can help meet New Zealand’s health workforce needs and provide a relevant and exciting study environment for students. This includes the recently opened U-Kinetics Clinic which houses the Postgraduate Diploma in Clinical Exercise Physiology in partnership with TBI Health, the DHB and Health Workforce New Zealand.

Trades Trade training has been at the heart of polytechnic delivery and remains a core role for skilling the regional workforce. UCOL has recently redeveloped its trades and technology teaching spaces. UCOL has a Trades Academy, and a Certificate in Trade Skills has been introduced to help prepare students to experience and engage with ongoing trades training.

Art and Design Art and Design are also strengths for UCOL. Prospective: Revitalisation of UCOL Art and Design is a project which sought ideas and contributions from industry; practitioners; experts and commentators; educators; secondary students and staff; and UCOL staff, students and graduates, regionally and nationally. UCOL has a high profile in this area due to the large number of national awards won by staff and students.

Project Transform In 2011, UCOL instigated Project Transform – a multi-faceted institution wide approach to improving completion rates. Project Transform was implemented to improve educational outcomes in all programmes, and target, for extra support, programmes that were not performing to their potential, or programmes that typically had a difficult or at risk student profile. The initiatives that made up Project Transform were: portfolio management; enrolment management; credit achievement management system (CAMS); teaching quality and innovation; student support; Raukura (Maori student support); improving online completions; and organisational strategies and policy alignment.

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Statement of Service Performance Young People UCOL has a Youth Guarantee (fees free) programme for students aged 16-17 enrolling in existing level 1-3 programmes. Youth Guarantee students are provided with additional support and mentoring to give them the best possible chance of successfully completing their programme of study. UCOL has a Trades Academy called U-Skills Central Schools Academy. U-Skills delivers programmes to secondary school enrolled students both at UCOL and in the secondary school environment. The introduction of foundation level programmes at UCOL has also been instrumental in supporting our young students into educational pathways. In late 2012, the development of a Youth Strategy was initialised and will continue into 2013. Course and Qualification Completion Under 25 Students Under 25 EFTS & Completions 2500

80% 70%

2000

50%

EFTS

1500

40% 1000

30%

Completions

60%

20%

500

10% 0 EFTS L4+

2009

2010

2011

2012

1198

1278

1308

1314

EFTS L1-3

813

698

663

689

Course Comp L1-3

36%

45%

63%

62%

Course Comp L4+

66%

68%

74%

75%

Qual Comp L1-3

29%

40%

58%

Qual Comp L4+

48%

49%

61%

0%

Note as of 9th March 2013, the qualification completion rates for all students are interim only as 20% of this data is still to be finalised and are not displayed above. Interim 2012 Qualification Completions are provided in the Statement of Service Performance table.

Maori Students UCOL’s course completions for Maori students have increased significantly over the past three years , in part due to Project Transform initiatives and in particular the introduction of Raukura. Raukura is a focussed support programme where Kaitiaki Akonga (support people) engage directly and regularly with Maori students with a specific focus on lifting retention and successful completions in levels 1-3 programmes. UCOL also provides targeted support for Maori students in the form of a whanau room, Kaiawhina (Maori Student Advisor) and the development of the strategy, Rourou Aronui. Rourou Aronui implementation begins in 2013 and includes six tahuhu, or objectives; improved transition of tauira into tertiary study, Maori succeeding as Maori, biculturally skilled staff, an enhanced curriculum, greater alignment of institutional policies and procedures with bicultural needs, and working collaboratively with iwi. Course and Qualification Completion for Maori Students Maori EFTS & Completions 1000

80%

900

70%

800

50%

EFTS

600 500

40%

400

30%

300

20%

200

10%

100 0

Completions

60%

700

2009

2010

2011

2012

EFTS L4+

527

560

452

482

EFTS L1-3

411

352

341

346

Course Comp L1-3

29%

35%

50%

58%

Course Comp L4+

56%

58%

63%

69%

Qual Comp L1-3

24%

30%

42%

Qual Comp L4+

42%

48%

58%

0%

Note as of 9th March 2013, the qualification completion rates for all students are interim only as 20% of this data is still to be finalised and are not displayed above. Interim 2012 Qualification Completions are provided in the Statement of Service Performance table.

UCOL Annual Report 2012

17


Statement of Service Performance Pasifika Students UCOL’s course completions for Pasifika students have increased over the past three years, in part due to Project Transform initiatives and partly due to the introduction of Raukura. In addition UCOL also provides targeted support for Pasifika students in the form of a (Fautua) Pasifika Liaison-Advisor available to directly assist students with any issues and challenges. Course and Qualification Completion Pacifika Students Pacifika EFTS & Completions 180

80%

160

70%

140

50%

EFTS

100 40% 80 30%

60

20%

40

10%

20 0

Completions

60%

120

2009

2010

2011

2012 89

EFTS L4+

97

95

89

EFTS L1-3

74

59

58

71

Course Comp L1-3

26%

26%

60%

66%

Course Comp L4+

49%

48%

69%

62%

Qual Comp L1-3

23%

18%

52%

Qual Comp L4+

29%

31%

63%

0%

Note as of 9th March 2013, the qualification completion rates for all students are interim only as 20% of this data is still to be finalised and are not displayed above. Interim 2012 Qualification Completions are provided in the Statement of Service Performance table.

Measure of Success Success will be measured by:

1. Increased participation;

2. Improved success and retention;

3. Improved employability and progression;*

4. Enhanced experience and satisfaction; and

5. Increased non-base income

* Note: this is a new measure and will be reported against in the 2013 Annual Report.

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Statement of Service Performance UCOL Outcome

Vocational Education

Educational Performance Indicators

Link to Measure of Success Maintain the proportion of SAC Eligible EFTS enrolled at the TEO who are Maori

Provision of Vocational Education that meets the needs of student, industry and employers

Humanities and Business

1

Target

Participation

Maintain the proportion of SAC Eligible EFTS enrolled at the TEO who are Pasifika

Maori

Pacific

Maintain the proportion of SAC Eligible EFTS enrolled at the TEO who are aged under 25

Under 25

Increase the number of international EFTS

International

Participation

Participation

Participation Participation

2012

2011

2010

All Levels

25%

26.28%

24.90%

26.80%

Level 1 - 3

11%

10.97%

10.70%

10.30%

Level 4 and above

14%

15.31%

14.20%

16.50%

All Levels

4.6%

5.06%

4.60%

4.60%

Level 1 - 3

1.8%

2.25%

1.80%

1.80%

Level 4 and above

2.8%

2.82%

2.80%

2.80%

All Levels

58%

63.57%

61.50%

57.90%

Level 1 - 3

23%

21.87%

20.70%

20.40%

Level 4 and above

35%

41.70%

40.80%

37.50%

248

244

197

All Levels

Educational Performance Measurement of the 4 EPI’s is as defined in “Revised educational performance indicators for SAC funded tertiary education organisations” of March 2010 Course Completion

Improved successful course completion rate for all students (SAC Eligible EFTS)

Improved qualification completion rate for all students (SAC Eligible EFTS)

Health Science

2

2012

2012

2011

2010

All Levels

70%

73%

71%

62%

Level 1 - 3

60%

63%

62%

45%

Level 4 and above

75%

77%

76%

70%

All Levels

58%

45%*

65%

51%

Level 1 - 3

41%

39%*

57%

41%

Level 4 and above

62%

48%*

69%

56%

All Levels

47%

65%*

55%

51%

Maintain student progression for students (SAC Eligible student count) at levels 1-3

Student Progression

Level 1 - 3

36%

43%*

42%

29%

Course Completion

Level 1 - 3

50%

58%

50%

35%

Level 4 and above

65%

69%

63%

58%

Qualification Completion

Level 1 - 3

45%

37%*

42%

30%

Level 4 and above

50%

34%*

58%

48%

Course Completion

Level 1 - 3

50%

66%

60%

26%

Level 4 and above

60%

62%

69%

48%

Qualification Completion

Level 1 - 3

55%

41%*

52%

18%

Level 4 and above

65%

45%*

63%

31%

Course Completion

Level 1 - 3

55%

62%

63%

45%

Level 4 and above

72%

75%

74%

68%

Qualification Completion

Level 1 - 3

45%

39%*

58%

40%

55%

44%*

61%

49%

Improved successful course completion for Maori students (SAC Eligible EFTS)

Improved qualification completion for Pasifika students (SAC Eligible EFTS) Improved successful course completion for students (SAC Eligible EFTS) aged under 25 Improved qualification completion for students (SAC Eligible EFTS) aged under 25

Maori

Pasifika

Under 25

Level 4 and above

Educational Quality Improved self Assessment leading to External Evaluation and Review rating achieved for capability self-assessment** Improved rating following NZQA External Evaluation and Review for educational performance**

Whanganui

4

Target

Actual

2012

2012

2011

2010

n/a

n/a

Confident

n/a

n/a

n/a

Confident

n/a

Improved proportion of teaching staff engaged with CATA qualifications

80%

70%

77%

72%

Improved proportion of academic staff recognised as Icons and Experts

31%

27%

32%

26%

Improved proportion of teaching staff engaged to teach in level 1 to 3 programmes with NCALE qualifications

80%

54%

79%

63%

Improved rating achieved in Student Satisfaction Survey out of 7.

+5.6

5.83

5.91

5.94

Financial Sustainability Improved confidence rating assessed under the Crown “Financial Performance Assessment Financial Monitoring Framework (FMF) in financial forecasts Improved risk rating assessed under the Crown “Financial Performance Assessment Financial Monitoring Framework (FMF).

5

Actual

Student Retention

Improved successful course completion for Pasifika students (SAC Eligible EFTS)

2

Target

Maintain student retention rate for all students (SAC Eligible EFTS)

Improved qualification completion for Maori students (SAC Eligible EFTS)

Trades and Technology

All Students

Qualification Completion

Actual

2012

Target

Actual

2012

2012

2011

2010

High

High

High

High

Low

Low

Low

Low

Improved Liquid Funds Ratio

+8.0%

9.30%

33.80%

29.30%

Improved Net Cash flows from Operation

+111%

111.40%

117%

124%

+5%

(7%)

2.80%

27.30%

Improved percentage growth in International fee revenue

Refer to Appendix 1 for historical presentation. * Note that as of 9th March 2013, the qualification completion rates for all students are interim only. 20% of this data is still to be finalised and will be stable by April SDR. 2013 progression and retention rates are interim only. Progression rates can only be determined when student enrol in other providers. 20% of this data is still to be finalised and will be stable by April SDR . Retention and progression rates can be affected by enrolment decisions made by students in 2013 and may increase. **Self-assessment and external evaluation and review are performed on a three yearly basis, with the next review occurring in 2014.

UCOL Annual Report 2012

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Statement of Service Performance COST OF SERVICES For the Year ending 31 December 2012 Vocational Education

2012 Total Costs Vocational Education

2011 Total Costs Vocational Education

Faculty Payroll ($000)

21,901

20,944

7,026

6,475

Administration Expenses ($000)

24,143

22,744

Total Expenses ($000)

53,070

50,163

Other Faculty Expenses ($000)

Cost per EFTS EFTS

14,433 13,550 3,677 3,702

STUDENT PROFILE

Fiona Witinitaria - Certificate in Carpentry Fiona admits she was running the risk of getting ‘fat on the couch’ before deciding to study at UCOL. She gained a National Certificate in Business Administration in 2005 through UCOL, but it wasn’t until she decided to try a more manual study option that she began to shine. The 43 year old mother of three first got her hands dirty with the National Certificate in Motor Industry (Entry Skills), and graduated with a Certificate in Carpentry. “I love using my hands to do practical things,” she says. “I never knew I’d be good at it.” Fiona was attracted to the Carpentry course for a number of reasons. “I knew the class sizes would be small so you get plenty of one on one time, and of course there’s the new facility.” Fiona has been one of 11 Carpentry students building a full size two bedroom house under cover in the purpose built teaching facility on the Masterton campus. “The UCOL lecturers have been fantastic. No question is regarded as a stupid question,” says Fiona. “We got to build a real house – it’s been primo!”

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FINANCIAL STATEMENTS

UCOL Annual Report 2012

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STATEMENT OF ACCOUNTING POLICIES Reporting Entity The financial statements of UCOL for the year ended 31 December 2012 were authorised for issue by the Council Chairperson and the Chief Executive on 24 April 2013. UCOL is a Crown entity domiciled and incorporated in New Zealand and is established under the Education Act 1989 as a public tertiary institution. It provides full-time and part-time tertiary education in New Zealand. The consolidated financial statements of the Group consist of UCOL (‘the parent’), UCOL Holdings Limited (a wholly owned subsidiary), UCOL International Limited (a wholly owned subsidiary of UCOL Holdings Limited), UCOL Developments Limited (a wholly owned subsidiary of UCOL Holdings Limited), UCOL School of International Cuisine Studies Limited (a wholly owned subsidiary of UCOL Holdings Limited), The Southern North Island Education Development Trust (a wholly owned subsidiary), Chilton Holdings Limited (a wholly owned subsidiary of The Southern North Island Education Development Trust) and Minerva International Education Limited (a wholly owned subsidiary). These financial statements incorporate an equity share of Le Cordon Bleu New Zealand Institute Limited Partnership and Cybus, an unincorporated joint venture, both entities UCOL jointly controls. All UCOL subsidiaries, jointly controlled entities and The Southern North Island Education Development Trust are incorporated and domiciled in New Zealand.

Summary of Significant Accounting Policies Basis of Preparation 1. Statement of Compliance The financial statements of UCOL and the group have been prepared in accordance with the requirements of the Public Finance Act 1989, Crown Entities Act 2004 and the Education Act 1989. These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable financial reporting standards, as appropriate for public benefit entities. These statements comprise: - A Statement of Corporate Performance - An Income Statement - A Statement of Comprehensive Income - A Statement of Changes in Equity - A Balance Sheet - A Cash Flow Statement - Notes to Financial Statements

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- A Statement of Human Resources - A Statement of Physical Resources UCOL is a public benefit entity for the purpose of complying with generally accepted accounting practice in New Zealand. 2. Measurement Base The financial statements have also been prepared on an historical cost basis, except for land and buildings that have been measured at fair value. Non-current assets and disposal groups held for sale are stated at the lower of carrying amount and fair value (less costs to sell). 3. Functional and Presentation Currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). 4. Changes in Accounting Policies There have been no changes in accounting policies during the financial year. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. 5. Adoption of FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments) UCOL has adopted the following revisions to accounting standards during the financial year, which have had only a presentational or disclosure effect: FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments) – The purpose of the new standard and amendments is to harmonise Australian and New Zealand accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The main effect of the amendments on the Institute is that donations are no longer required to be separately disclosed and certain information about property valuations is no longer required to be disclosed. Note 3 and 9 has been updated for these changes. 6. Standards, amendments, and interpretations issued but not yet effective that have not been early adopted Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and are relevant to UCOL and the group, are: (a) NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following three main phases: Phase 1 Classification and Measurement, Phase 2


STATEMENT OF ACCOUNTING POLICIES Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial assets (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus or deficit. The new standard is required to be adopted for the year ended 30 June 2016. However, as a new Accounting Standards Framework will apply before this date, there is no certainty when an equivalent standard to NZ IFRS 9 will be applied by public benefit entities. (b) The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, UCOL is classified as a Tier 1 reporting entity and it will be required to apply full public sector Public Benefit Entity Accounting Standards (PAS). These standards are being developed by the XRB and are mainly based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is expected to be for reporting periods beginning on or after 1 July 2014. This means UCOL expects to transition to the new standards in preparing its 31 December 2015 financial statements. As the PAS are still under development, UCOL is unable to assess the implications of the new Accounting Standards Framework at this time. Due to the change in the Accounting Standards Framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope. 7. Basis of Consolidation The group financial statements are prepared by adding together like items of assets, liabilities, equity, income, expenses, and cash flows on a line-by-line basis. All significant intragroup balances, transactions, income, and expenses are eliminated in full on consolidation. Adjustments are made to bring into line any dissimilar accounting policies that may exist. (a) Subsidiaries Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

UCOL Annual Report 2012

Where there is loss of control of a subsidiary, the consolidated financial statements include the results for the part of the reporting year during which UCOL has control. UCOL consolidates in the group financial statements, all entities where UCOL has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. This power exists where UCOL controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by UCOL or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary. Investments in subsidiaries are carried at cost in UCOL’s parent entity financial statements. (b) Associates UCOL’s associate investment is accounted for in the group financial statements using the equity method. An associate is an entity over which UCOL has significant influence and that is neither a subsidiary nor an interest in a joint venture. The investment in an associate is initially recognised at cost and the carrying amount is increased or decreased to recognise the group’s share of the surplus or deficit of the associate after the date of acquisition. The group’s share of the surplus or deficit of the associate is recognised in the group surplus or deficit. Distributions received from an associate reduce the carrying amount of the investment in the group financial statements. If the share of deficits of an associate equals or exceeds an interest in the associate, the group discontinues recognising its share of further deficits. After the group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where the group transacts with an associate, surplus or deficits are eliminated to the extent of the group’s interest in the relevant associate. (c) Joint venture UCOL’s investment in Joint Controlled Entities is accounted for in the group financial statements using the equity method. Jointly controlled entities are usually separate legal entities in which each venturer holds an interest. The entity established will control assets of the entity and can enter contracts in its own name and raise funds for the activities of the entity. Each venturer then shares in the profits of the entity. Investments in jointly controlled entities are initially recorded at cost in the group financial statements. The carrying amount of the investment is increased (decreased) for its share of the profits (losses) of the entity and the carrying amount of the investment will be decreased to reflect any dividends received.

23


STATEMENT OF ACCOUNTING POLICIES (d) Non Consolidated Entity

(c) Other Income

A share of the results of Akoranga Education Trust Incorporated have not been recognised in UCOL’s financial statements for 2011 and 2012 because it is not probable benefits will flow to UCOL from the Trust and UCOL’s entitlement to the Trust’s net assets cannot be reliably measured.

Revenue from the rendering of other services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided.

8. Inventory Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition. Inventories held for use in the production of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in surplus or deficit in the period of the write-down. 9. Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: (a) Government Grants Government grants are recognised when eligibility to receive the grant has been established and it is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the months of course completed as a percentage of total months for each course. Where funds have been received but not earned at balance date a revenue received in advance liability is recognised. (b) Student Tuition Fees Student tuition fees are recognised when eligibility to receive the tuition fee has been established and it is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the months of course completed as a percentage of total months for each course. Where funds have been received but not earned at balance date a revenue received in advance liability is recognised.

24

(d) Interest Revenue is recognised as the interest accrues (using the effective interest method which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. 10. Property, Plant and Equipment Land and buildings held under Crown title have been included in the financial statements. The UCOL Council is of the opinion that although formal legal transfer of title for land and buildings in use prior to 1 January 1990 has not occurred, it has in substance all the normal risks associated with ownership and accordingly it would be misleading to exclude these assets from the financial statements. These lands and buildings were first recognised on 31 December 1992. The measurement bases used for determining the gross carrying amount for each class of assets is as follows: - Land is measured at fair value, and buildings are measured at fair value less subsequent accumulated depreciation and subsequent accumulated impairment losses. - Leasehold improvements, plant and equipment, library books, motor vehicles, and computer hardware are stated at cost less accumulated depreciation and any accumulated impairment in value. 11. Depreciation Depreciation is calculated on the following bases over the estimated useful life of the asset: - Buildings – 1.0% - 33.3% straight line - Leasehold Improvements – straight line over the term of the lease - Computers – 30% - 50% diminishing value - Motor Vehicles – 25% diminishing value - Other Equipment – 10% - 50% diminishing value - Library Books – 10% straight line - Capitalised Finance Lease Assets – straight line over the shorter of the estimated useful life of the asset and the lease term (5.6% - 36%). The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.


STATEMENT OF ACCOUNTING POLICIES 12. Impairment

Revaluation of property, plant and equipment is carried out on a class of asset basis by an independent registered valuer.

The carrying values of plant and equipment, other than those whose future economic benefits are not directly related to their ability to generate net cash inflows, are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Any net revaluation surplus is credited to the asset revaluation reserve included in the equity section of the Balance Sheet unless it reverses a net revaluation decrease of the same asset previously recognised in the Income Statement.

For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cashgenerating unit to which the asset belongs.

Any net revaluation decrease is recognised in the Income Statement unless it directly offsets a previous net revaluation increase in the same asset class in the revaluation reserve.

If any such indication exists, and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount.

Any accumulated depreciation as at revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings.

The recoverable amount of plant and equipment is the greater of fair value (less costs to sell) and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Independent valuations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the balance sheet date. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

Impairment losses are recognised in the Income Statement in the other expenses line item. An impairment loss on a revalued asset is recognised directly against any revaluation surplus for that asset class. Assets held for educational and related activities are assessed for impairment by considering the assets for obsolescence, changes in useful life assessments, optimisation and other related matters.

Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the Income Statement in the year the item is derecognised. 14. Capital Work in Progress Capital work in progress is calculated on the basis of expenditure incurred and certified gross progress claim certificates up to balance date. Work in progress is not depreciated. The total cost of a project is transferred to the relevant asset class on its completion and then depreciated.

The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the asset revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.

15. Intangible Assets

13. Revaluations Following initial recognition at cost, land and buildings are carried at a revalued amount which is the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated impairment losses. Land, buildings and infrastructure are revalued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years. Fair value of land and non-specialised buildings is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation date. Where buildings have been designed specifically for educational purposes they are valued at depreciated replacement cost which is considered to reflect fair value for such assets.

UCOL Annual Report 2012

(a) Computer Software Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised over their estimated useful lives. After initial recognition, separately acquired computer software are carried at cost less accumulated amortisation and accumulated impairment costs. (b) Course Development Costs Course development costs relate to development of educational courses and are capitalised when it is probable that future economic benefit arising from use of the intangible asset will flow to UCOL. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and accumulated impairment losses.

25


STATEMENT OF ACCOUNTING POLICIES A summary of the policies applied to the Group’s intangible assets is as follows: Computer Software

Course Development Costs

Useful Lives

Finite

Finite

Method Used

14% - 24%pa

33.3% - 50%

Straight Line

Straight Line, from commencement of course

Internally Generated / Acquired

Acquired

Acquired

The amortisation period and amortisation method for each class of intangible asset having a finite life is reviewed at each financial year end. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. The carrying value of each class of intangible asset is reviewed for indicators of impairment annually. Intangible assets are tested for impairment where an indicator of impairment exists.

(b) Taxation Tertiary institutes are exempt from the payment of income tax. Accordingly, no charge for income tax has been provided. All of UCOL’s subsidiaries are charitable organisations and are exempt from income tax in New Zealand. UCOL International Limited is exempt from income tax in New Zealand as a charitable organisation, but is subject to income tax in India. 17. Financial Instruments UCOL and its subsidiaries are party to financial instruments as part of their normal operations. These financial instruments include bank accounts, investments, trade payables, trade receivables and loans. All financial instruments are recognised in the Balance Sheet and all revenue and expenses in relation to financial instruments are recognised in the Income Statement. Except for those items covered by a separate accounting policy, all financial instruments are shown at their estimated fair value. (a) Trade Payables Trade Payables, which generally have a 30-90 day term, are recognised and carried at original payable amount.

Gains and losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Income Statement in the year the asset is derecognised.

(b) Other Financial Assets

(c) Research Costs

- loans and receivables; and

Research costs are recognised as an expense in the Income Statement in the year in which they are incurred.

- fair value through other comprehensive income.

16. GST and Other Taxes (a) GST Revenues, expenses and assets are recognised net of the amount of GST except: - where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and - receivables and payables which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

26

Financial assets are classified into the following categories for the purposes of measurement: - fair value through surplus or deficit;

Classification of the financial asset depends on the purpose for which the instruments were acquired. i) Financial Assets at Fair Value through Surplus or Deficit Financial assets at fair value through surplus or deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or is part of a portfolio that are managed together and for which there is evidence of short-term profittaking. Derivatives are also categorised as held for trading unless they are designated into hedge accounting relationship for which hedge accounting is applied. Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset. After initial recognition financial assets in this category are measured at their fair values with gains or losses on remeasurement recognised in the surplus or deficit.


STATEMENT OF ACCOUNTING POLICIES ii) Loans and Receivables (including cash and cash equivalents and debtors and other receivables).

- Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand, and short-term deposits with an original maturity of three months or less. For the purposes of the Cash Flow Statement, cash and cash equivalents are net of outstanding bank overdrafts.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. Related party receivables that are repayable on demand are classified as a non-current asset because repayment of the receivable is not expected within 12 months of balance date. After initial recognition loans and receivables are measured at amortised cost using the effective interest method less any provision for impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

- Operating Activities: Transactions and other movements that are not investing or financing activities. - Investing Activities: Activities relating to acquisition, holding and disposal of fixed assets and of investments, not falling within the definition of cash. - Financing Activities: Activities that change the equity and debt capital structure of UCOL. 19. Borrowing Costs Borrowing costs are recognised as an expense in the year in which they are incurred, except that borrowing costs directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of that asset till substantially all activities necessary to prepare the qualifying asset for its intended use are complete.

iii) Financial Assets at Fair Value through Other Comprehensive Income Financial assets at fair value through other comprehensive income are those that are designated as fair value through other comprehensive income or those that are not classified in any of the other categories above. They are included in noncurrent assets unless management intends to dispose of the investment within 12 months of the balance date.

20. Provisions

UCOL designates in this category:

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

- investments that it intends to hold long-term but which may be realised before maturity; and - shareholdings that it holds for strategic purposes. After initial recognition these investments are measured at their fair value, with gains and losses recognised in other comprehensive income except for impairment losses, which are recognised in the surplus or deficit.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

On derecognition the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the surplus or deficit.

Provisions are reviewed at each balance date and adjusted to reflect the current best estimate. Where it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed.

(c) Interest-Bearing Loans and Borrowings All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of transaction costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs, and any discount or premium on settlement.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. 21. Leases

Gains and losses are recognised in the Income Statement when the liabilities are derecognised, as well as through the amortisation process. 18. Cash Flows, Cash and Cash Equivalents The following definitions have been used in the preparation of the Cash Flow Statement:

UCOL Annual Report 2012

Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. UCOL has received Ministerial approval for all such leases. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance

27


STATEMENT OF ACCOUNTING POLICIES charges are included in the Income Statement as finance costs. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the Income Statement on a straight-line basis over the lease term. 22. Employee Entitlements Provision is made in respect of the UCOL liability for annual leave, sick leave, long service leave and retirement gratuities. Annual leave has been calculated on an actual entitlement basis at current rates of pay. Sick leave has been calculated based on the expected utilisation of unused entitlement. Long service leave and retirement gratuities are calculated based on the present value of estimated future cash flows determined on an actuarial basis. The discount rate is the market yield on relevant New Zealand Government Stock at the Balance Sheet date. Obligations for contributions to defined contribution pension plans are recognised as an expense in the Income Statement as incurred. 23. Cost of Services Statement The 2012 Cost of Services Statement for Educational Delivery and the 2011 comparative information represents the consolidated entity of UCOL. 24. Comparatives When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impractical to do so. 25. Budget Figures 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. 26. Foreign Currency Translation Both the functional and presentation currency of UCOL and its New Zealand subsidiaries is New Zealand dollars ($).

28

Any transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. 27. Non-Current Assets Held for Sale Non-current assets held for sale are separately classified as held for sale if their carrying amount will be recovered through a sale transaction rather than continuing use; that is, where such assets are available for immediate sale and where sale is highly probable. These assets are recorded at the lower of their carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in the Income Statement. Any increases in fair value (less costs to sell) are recognised in the Income Statement up to the level of any impairment losses that have been previously recognised. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. 28. Critical Accounting Estimates and Assumptions  The preparation of financial statements in conformity with NZ IFRS requires management to make judgements, estimates and assumptions concerning the future that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions about the future are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.


STATEMENT OF ACCOUNTING POLICIES (a) Property Revaluations Note 9 provides information about the estimates and assumptions exercised in the measurement of revalued land and buildings. (b) Retirement Gratuities Note 12 provides information about estimates and assumptions exercised in the measurement of retirement gratuities. 29. Critical Judgements in Applying UCOL’s Accounting Policies Judgements made by management in the application of NZ IFRS that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the Notes to the Financial Statements. Management has exercised the following critical judgements in applying UCOL’s accounting policies for the year ended 31 December 2012: (a) Classification of Property UCOL owns some properties which are held primarily for strategic purposes. The receipt of market-based rental from these properties is incidental to holding these properties. These properties are accounted for as property, plant and equipment in accordance with NZ IAS 16. (b) Crown Owned Land and Buildings Property in the legal name of the Crown that is occupied by UCOL is recognised as an asset in the Balance Sheet. UCOL

UCOL Annual Report 2012

considers it has assumed all the normal risks and rewards of ownership of this property despite legal ownership not being transferred, and accordingly it would be misleading to exclude these assets from the financial statements. UCOL has secured the use of the property by means of a lease from the Ministry of Education for a period of 99 years from 1 February 1998 at nominal rental $1 per annum. c) Suspensory Loans with Equity Conversion Features Distinction between revenue and capital contributions. Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, UCOL accounts for the funding as a capital contribution directly in equity. Convertible Suspensory loans with equity conversion features UCOL has received various suspensory loans from the Crown whereby the loans convert to equity when the conversion conditions of the loan agreement are satisfied. Where UCOL believes it will meet the equity conversion conditions, it considers the loans are in substance equity contributions from the Crown and therefore recognises the amounts drawn down under the loan facilities directly in the Statement of Changes in Equity. Further information about the suspensory loans is disclosed in note 13.

Below: Palmerston North Certificate in Hairdressing student Toni Albert puts the finishing touches to her 18th Century nautically themed hairstyle at UCOL’s annual History of Hair competition.

29


INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2012 Consolidated Consolidated Consolidated Parent Parent 2012 2012 2011 2012 2011 Actual Budget Actual Actual Actual

Notes $000

$000

$000 $000 $000

REVENUE Government grants

3(a) 29,940

Student tuition fees

18,299

29,784

29,621 29,940 29,621

19,978

17,662

4,241

18,299

17,662

Other income

3(b) 4,469

4,252 4,417 4,244

Finance income

3(c)

418

221

823

408

811

TOTAL REVENUE

53,126

54,224

52,358

53,064

52,338

3(d)

28,383

28,458

27,960

28,383

27,960

9

4,439

4,304

4,249

4,439

4,249

EXPENSES Employee benefit expenses Depreciation expense Amortisation expense Materials and operations

10 268

383

395 268 395

3(e)

16,694

18,054

16,102

17,356

16,098

TOTAL OPERATING EXPENSES

49,784

51,199

48,706

50,446

48,702

SURPLUS / (DEFICIT) BEFORE FINANCE COSTS

3,342

3,025

3,652

2,618

3,636

3(c)

267

277

258

267

258

SURPLUS / (DEFICIT) PRIOR TO ITEMS REQUIRING SEPARATE DISCLOSURE

3,075

2,748

3,394

2,351

3,378

3(f)

2,111

1,611

887

2,111

887

SURPLUS / (DEFICIT) AFTER ITEMS REQUIRING SEPARATE DISCLOSURE

964

1,137

2,507

240

2,491

8

(908)

(747)

(312)

-

-

NET SURPLUS / (DEFICIT) FOR THE PERIOD

56

390

2,195

240

2,491

Finance costs

ITEMS REQUIRING SEPARATE DISCLOSURE Integration, development, change management and Safer UCOL Building costs

Share of jointly controlled entity surplus / (deficit)

The accompanying notes form part of these financial statements.

30


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2012 Consolidated

Consolidated

2012 Actual

Notes $000

Net surplus / (deficit) for the period

Consolidated

2012 Budget $000

Parent

Parent

2011 2012 2011 Actual Actual Actual $000 $000 $000

56

390

2,195

240

2,491

(440)

(280)

-

(440)

-

OTHER COMPREHENSIVE INCOME Transfer of revaluation reserve on disposal of land and buildings Subsidiary entity 2011 entries not included in 2011 Group Accounts

10

-

-

-

-

Revaluation of land and buildings

(15,088)

-

-

(15,088)

-

Impairment of revalued land and buildings

-

-

(10,261)

-

(10,261)

TOTAL COMPREHENSIVE INCOME

(15,462)

110

(8,066)

(15,288)

(7,770)

The accompanying notes form part of these financial statements.

UCOL Annual Report 2012

31


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2012

CONSOLIDATED Public Retained Revaluation Total Budget Equity Earnings Reserve $000 $000 $000 $000 $000 At 1 January 2011

58,038

Return of capital to the Crown1 1,350

33,981

38,921

-

130,940

130,940

- 1,350 1,350

Total comprehensive income

-

2,195

(10,261)

(8,066)

(4,563)

At 31 December 2011

59,388

36,176

28,660

124,224

127,727

Total comprehensive income

-

66

(15,088)

(15,022)

110

of revalued land and building

-

(440)

440

-

280

Crown contribution2

44

-

-

44

800

Return of capital to the Crown3

-

-

-

-

(800)

AT 31 DECEMBER 2012

59,432

35,802

14,012

109,246

128,117

Transfer to retained earnings on disposal

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2012

PARENT Public Retained Revaluation Total Equity Earnings Reserve

$000

$000

$000

$000 130,938

At 1 January 2011

58,038

33,979

38,921

Return of capital to the Crown Contribution1

1,350

-

-

Total comprehensive income

-

2,491

At 31 December 2011

1,350

(10,261)

(7,770)

59,388

36,470

28,660

124,518

Total comprehensive income

-

240

(15,088)

(14,848)

Crown contribution2

44

-

Transfer to retained earnings on disposal of revalued land and building AT 31 DECEMBER 2012

-

44

-

(440 )

440

-

59,432

36,270

14,012

109,714

1. Capital Injection relating to the proceeds from the sale of The Cameron Road Farm in Whanganui as set out in the January 2010 Memorandum of Understanding (MOU) as per clauses 4.2 and 4.3 2. Conversion of a portion of the second tranche of performance equity to equity relating to the Convertible Suspensory Loan from the Crown for the new Whanganui Campus. In the 2012 the budget it was assumed the receipt of a $800,000 Capital Injection relating to the proceeds from the sale of Springvale Horticulture property in Whanganui as set out in the January 2010 Memorandum of Understanding (MOU) as per clauses 4.2 and 4.3 3. The 2012 Budget assumed that Springvale Horticulture property was sold on behalf of the Crown in 2012 with the sale being paid directly to the Crown.

The accompanying notes form part of these financial statements.

32


BALANCE SHEET AS AT 31 DECEMBER 2012

Consolidated Consolidated Consolidated Parent Parent 2012 2012 2011 2012 2011

Actual

Budget

Actual

Actual

Actual

Notes $000

$000

$000 $000 $000

ASSETS CURRENT ASSETS Cash and cash equivalents

4

3,952

4,022

7,428

3,548

7,039

Receivables and sundry assets

5

4,985

9,106

9,054

4,972

9,054

Properties held for sale

6

-

-

-

-

-

Other financial assets

7

500

-

8,000

500

8,000

TOTAL CURRENT ASSETS

9,437

13,128

24,482

9,020

24,093

10

NON CURRENT ASSETS Other financial assets

7

-

10

10

-

Investment in jointly controlled entity

8

1,792

1,796

2,700

-

-

Receivables and sundry assets

5

-

-

-

3,255

3,959

Land

9 27,745

26,924

27,594 27,150 26,994

Buildings

9 80,956

101,758

82,589 80,956 82,589

Capitalised finance lease buildings

9

839

838

914

839

914

Other plant and equipment

9

9,730

10,123

10,194

9,730

10,194

Intangible assets

10 508

TOTAL NON CURRENT ASSETS 121,570 TOTAL ASSETS 131,007

656 142,105 155,233

660 508 660 124,661 122,438 125,320 149,143 131,458 149,413

LIABILITIES CURRENT LIABILITIES Trade and other payables

11

6,196

5,121

Employee entitlements

12 2,990

4,843

3,031

2,782 2,990 2,782

Interest-bearing loans and borrowings

13

4,089

3,990

Provisions

14 2

Revenue received in advance

15

6,208

9,738

8,964

6,208

8,964

TOTAL CURRENT LIABILITIES

18,368

23,055

20,859

18,351

20,835

4,325

1

4,826

5,097

4,325

3,990

2 2 2

NON-CURRENT LIABILITIES Employee entitlements

12 509

1,031

Interest-bearing loans and borrowings

13

2,963

Provisions

14 67

2,817

TOTAL NON CURRENT LIABILITIES 3,393 TOTAL LIABILITIES 21,761 NET ASSET 109,246

952 509 952 3,040

67

2,817

3,040

68 67 68

4,061 27,116 128,117

4,060 3,393 4,060 24,919 21,744 24,895 124,224 109,714 124,518

Public equity 59,432

58,655

59,388 59,432 59,388

Retained earnings 35,802

37,398

36,176 36,270 36,470

EQUITY

Asset revaluation reserve

16

14,012

TOTAL EQUITY 109,246

32,064 128,117

28,660

14,012

28,660

124,224 109,714 124,518

The accompanying notes form part of these financial statements.

UCOL Annual Report 2012

33


CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2012 Consolidated Consolidated Consolidated Parent Parent

2012

2012

2011

2012

2011

Actual

Budget

Actual

Actual

Actual

Notes

$000

$000

$000

$000

$000

Receipt of government grants

30,105

29,784

29,963

30,105

29,963

Receipt of student tuition fees

16,007

19,853

16,791

16,007

16,791

Receipt of other ancillary income

6,873

4,365

6,026

7,685

6,103

Interest received

523

295

758

512

746

53,508

54,297

53,538

54,309

53,603

CASH FLOWS FROM OPERATING ACTIVITIES CASH WAS PROVIDED FROM:

CASH WAS DISBURSED TO: Payments to employees

29,805

28,355

28,475

29,805

28,475

Payments to suppliers

18,134

19,024

16,636

18,792

16,645

Interest paid

-

14

7

-

7

Net GST4

94

189

488

92

490

NET CASH FLOWS FROM OPERATING ACTIVITIES 4

48,033 5,475

47,582 6,715

45,606 7,932

48,689 5,620

45,617 7,986

CASH FLOWS FROM INVESTING ACTIVITIES CASH WAS PROVIDED FROM: Proceeds from sale of property, plant and equipment

65

-

59

65

59

Proceeds from disposal of financial assets in the nature of investments

14,700

-

19,700

14,700

19,700

14,765 - 19,759 14,765 CASH WAS DISBURSED TO:

19,759

Purchase of property, plant and equipment

17,756

18,817

5,663

17,756

5,662

Purchase of intangible assets

110

110

222

110

222

Purchase of financial assets in the nature of investments

7,200

-

27,700

7,200

27,700

NET CASH FLOWS FROM INVESTING ACTIVITIES

25,066 (10,301)

18,927 (18,927)

33,585 (13,826)

25,066 (10,301)

33,584 (13,825)

CASH FLOWS FROM FINANCING ACTIVITIES CASH WAS PROVIDED FROM: Proceeds from Capital Contributions from the Crown

1,350

800

-

1,350

-

1,350

800

-

1,350

-

CASH WAS DISBURSED TO: Advances to Subsidiaries

-

-

-

160

-

Repayment of borrowings

-

-

-

-

-

NET CASH FLOWS FROM FINANCING ACTIVITIES

- 1,350

- 800

- -

160 1,190

-

Net increase / (decrease) in cash and cash equivalents

(3,476)

(11,412)

(5,894)

(3,491)

(5,839)

Cash and cash equivalents at the beginning of the period

7,428

15,434

13,322

7,039

12,878

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

3,952

4,022

7,428

3,548

7,039

4

4. The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes. The accompanying notes form part of these financial statements.

34


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 3. REVENUES AND EXPENSES

Consolidated Consolidated Parent Parent

2012

2011 2012 2011

$000 $000 $000

$000

(a) Government Grants Operational bulk grant

27,904

28,065

27,904

28,065

Maori and Pacific Island grant

93

93

93

93

Disabilities special supplementary grant

91

91

91

91

Other tertiary funding

1,852

1,372

1,852

1,372

TOTAL GOVERNMENT GRANTS

29,940

29,621

29,940

29,621

(b) Other Income Revenue from Other Operating Activities

4,469

4,252

4,417

4,244

TOTAL OTHER INCOME

4,469

4,252

4,417

4,244

Loans and overdrafts

-

(4)

-

(4)

Finance Charges Payable under Finance Leases and Hire Purchase Contracts

(267)

(254)

(267)

(254)

TOTAL FINANCE COSTS (ON HISTORICAL COST BASIS)

(267)

(258)

(267)

(258)

Interest earned on bank deposits

418

823

408

811

TOTAL FINANCE INCOME (ON HISTORICAL COST BASIS)

418

823

408

811

(c) Finance (Costs) / Income

(d) Employee Benefits Expense Wages and salaries

28,264

27,853

28,264

27,853

Councillor remuneration

119

107

119

107

28,383

27,960

28,383

27,960

TOTAL EMPLOYEE BENEFITS EXPENSE

Total remuneration paid to members of UCOL Council is in connection with directing the affairs of the entity. This includes members who are employees of UCOL. Total remuneration paid to members of UCOL Council is as follows: D Baker $14,400, (2011:$14,400), L Bradman $14,954, (2011:$0), T Goodwin $28,800, (2011:$28,800), M Inglis $18,000, (2011:$18,000), P Jefferies $14,400, (2011:$14,400), P McElroy $0, (2011:$0), T Prebble $14,400, (2011:$9,415) and S Walbran $14,400, (2011:$7,145) (e) Materials and Operations Minimum lease payments – operating lease

463

520

452

505

Net foreign exchange differences

10

3

-

-

Fees to principal auditor: audit fees for financial statement audit Changes in provision for doubtful debts

120 (22)

116 27

103 860

100 (64)

Loss on disposal of property, plant and equipment

37

109

37

109

Defined contribution plan employer contributions

397

359

397

359

Impairment other

12

12 12 12

Impairment property, plant and equipment

5

-

-

-

Educational delivery costs

6,518

6,063

6,518

6,063

Occupancy costs

3,657

3,217

3,642

3,203

Education support and development costs

5,497

5,676

5,335

5,811

TOTAL MATERIALS AND OPERATIONS

16,694

16,102

17,356

16,098

UCOL Annual Report 2012

35


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 3. REVENUES AND EXPENSES (CONTINUED) (f) Integration, Development, Change Management

Consolidated Consolidated Parent Parent

and Safer UCOL Buildings Costs 2012

2011 2012 2011

$000 $000 $000

Integration and Development - wages and salaries

$000 9

Integration and Development - impairment of property, plant & equipment5 10

57

9

57

- 10 -

Integration and Development - other expenses

85

209

85

209

Change management costs - wages and salaries

1,059

-

1,059

-

Change management costs - other expenses

127

-

127

-

Safer UCOL Buildings costs - wages and salaries

119

83

119

83

Safer UCOL Buildings costs - impairment of property, plant & equipment6

27

- 27 -

Safer UCOL Buildings costs - minimum lease payments - operating lease

118

45

118

45

Safer UCOL Buildings costs - other expenses

557

493

557

493

TOTAL INTEGRATION, DEVELOPMENT, CHANGE MANAGEMENT AND SAFER UCOL BUILDINGS COSTS

2,111

887

2,111

887

Integration and Development Costs Integration costs incorporate the operational costs associated with the consolidation of tertiary education delivery in Whanganui from seven campuses to two principal sites. Development costs incorporate the transitional operating costs directly associated with the development of an innovative and cross sector collaborative approach to educational delivery, and shared services model for tertiary students in Whanganui. Change Management Costs Change management costs were incurred in making adjustments to UCOL’s cost structures in preparation for expected changes to Government funding in 2013. Safer UCOL Buildings Costs Following the 4 September 2010 earthquake in Christchurch, UCOL Management initiated Seismic Reports of UCOL campuses through its architects (using consulting engineers). As a result of the investigation UCOL has commenced a Safer UCOL Buildings Project and embarked on a plan to either strengthen, lock down, or demolish and redevelop the various buildings identified by the review as having a high earthquake risk. Safer UCOL buildings costs incorporates the operational costs associated with Safer UCOL Buildings Project. 4. CASH AND CASH EQUIVALENTS

Consolidated Consolidated Parent Parent

2012 2011 2012 2011

$000

$000 $000 $000

Cash at bank and in hand

1,248

2,082

873

1,722

Short-term deposits

2,704

5,346

2,675

5,317

TOTAL CASH AND CASH EQUILVALENTS

3,952

7,428

3,548

7,039

Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The carrying value of cash at bank and short term deposits with maturities less than three months approximates their fair value. The total value of cash and cash equivalents that can be used only for a specified purpose as outlined in the relevant trust deeds is $366,000 (2011 $1,232,000). 5. The impairment charge reflects a write-down in land to fair value 6. The impairment charge reflects the demolition of buildings as part of the Safer UCOL Buildings project

36


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 4. CASH AND CASH EQUIVALENTS (CONTINUED) Reconciliation of cash for the purpose of the cash

Consolidated Consolidated Parent Parent

flow statement 2012

2011 2012 2011

$000 $000 $000

$000

F or the purpose of the cash flow statement, cash and cash equivalents comprise the following as at 31 December 2012 Cash at bank and in hand

1,248

2,082

873

1,722

Short-term deposits

2,704

5,346

2,675

5,317

3,952

7,428

3,548

7,039

240

2,491

Reconciliation from the net surplus to the net cash flows from operations NET SURPLUS / (DEFICIT) FOR THE PERIOD

56

2,195

Add / (less) non-cash items Depreciation Amortisation

268

Impairment losses Share of jointly controlled entity (surplus) / deficit

4,439 27

4,249 4,439 4,249 395

268

395

12 22 12

908

312

-

-

Other non cash items

3

-

1

(2)

5,645

4,968 4,730 4,654

Add /( less) items classified as investing or financing activities Net / (gain) on disposal of property, plant and equipment

24

109

24

109

24

109 24 109

Changes in assets and liabilities (Increase) / decrease in trade and other receivables

2,656

1,605

3,520

1,691

(Increase) / decrease in prepayments

58

(23)

63

(24)

Increase / (decrease) in trade and other payables

156

706

161

695

Increase / (decrease) in employee entitlements

(235)

(375)

(235)

(375)

Increase / (decrease) in GST

(94)

(488)

(92)

(490)

Increase / (decrease) in revenue received in advance

(2,789)

(764)

(2,789)

(764)

(1)

(2)

(1)

Increase / (decrease) in provisions

(2)

NET CASH FROM OPERATING ACTIVITIES 5. RECEIVABLES AND SUNDRY ASSETS

(250) 5,475

660 626 732 7,932 5,620 7,986

Consolidated Consolidated Parent Parent

2012

2011

2012

2011

$000

$000

$000

$000

Student and Organisation receivables

5,089

8,945

5,089

8,945

Other Trade Receivables

(36)

52

(37)

52

Interest Receivables

13

117

13

117 148

CURRENT

Prepayments - operating

97

148

85

Prepayments - capital

24

36

24

36

Inventory

97

77

97

77

Provision for Doubtful Debts

(299)

(321)

(299)

(321)

TOTAL CURRENT

4,985

9,054

4,972

9,054

UCOL Annual Report 2012

37


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 5. RECEIVABLES AND SUNDRY ASSETS (CONTINUED)

Consolidated Consolidated Parent Parent

2012

2011

2012

2011

$000

$000

$000

$000

NON CURRENT Related Party Receivables: UCOL International Limited

-

-

488

Minerva International Education Limited

-

-

372

486 215

UCOL School of International Cuisine Studies Limited

-

-

3,154

3,152

UCOL Developments Limited

-

-

616

608

UCOL Holdings Limited

-

-

115

107

Provision for Doubtful Debts

-

-

(1,490)

(609)

TOTAL NON-CURRENT TOTAL RECEIVABLES AND SUNDRY ASSETS

- 4,985

- 9,054

3,255 8,227

3,959 13,013

Student Fees are non-interest bearing and generally should be paid on enrolment and no later than at graduation. For terms and conditions relating to related party receivables refer to note 18. The fair value of receivables is $4,767,000 (2011:$8,793,000). Provision for Doubtful Debts calculation methodology The provision for doubtful debts is based on a mix of assumptions driven by historical trends and specific review of debtor balances. The provision is calculated using a multi step process. In step one, all debtors who have debt 90 days and over are identified. It is assumed all debt from these debtors is unlikely to be collected. In step two, debtors identified in step one are reviewed for evidence of any action in progress which is likely to result in the payment of the debt and as a consequence, an opinion is formed as to whether the debt is collectable. Step three involves amending the provision to take account of the opinion formed in step two. The ageing profile of student receivables at year end detailed below:

Gross Impairment Net Gross Impairment Net

2012

2012

2012

2011

2011

2011

$000

$000

$000

$000

$000

$000

Parent and Group: Not past due

4,370

-

4,370

6,953

-

6,953

0 to 30 Days

21

18

3

10

9

1

30 to 60 days

26

26

-

13

12

1

60 to 90 days

29

27

2

11

11

- 7

90 to 120 days > 120 days TOTAL STUDENT RECEIVABLES

38

36

36

-

34

27

153

140

13

113

108

5

4,635

247

4,388

7,134

167

6,967


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 5. RECEIVABLES AND SUNDRY ASSETS (CONTINUED) The ageing profile of organisation receivables at year end detailed below:

Gross

Impairment

Net

Gross

Impairment

Net

2012

2012

2012

2011

2011

2011

$000

$000

$000

$000

$000

$000

202

-

202

1,657

-

1,657

Parent and Group: Not past due 0 to 30 Days

86

4

82

48

48

-

30 to 60 days

28

4

24

10

10

-

60 to 90 days

13

2

11

37

37

-

90 to 120 days

19

-

19

-

-

-

> 120 days

106

42

64

59

59

-

TOTAL ORGANISATION RECEIVABLES

454

52

402

1,811

154

1,657

5. RECEIVABLES AND SUNDRY ASSETS (CONTINUED) The ageing profile of related party receivables at year end detailed below:

Gross Impairment Net Gross Impairment Net

2012

2012 2012

2011

2011 2011

$000

$000

$000

$000

$000

$000

53

53

-

3

3

-

Parent: 0 to 30 Days

5

5

-

17

17

-

> 120 days

30 to 120 days

4,687

1,432

3,255

4,548

589

3,959

TOTAL RELATED PARTY RECEIVABLES

4,745

1,490

3,255

4,568

609

3,959

Movements in the provision for impairment are as follows: Consolidated

Consolidated

2012

Parent

Parent

2011 2012 2011

$000 000 $000 $000 At 1 January

321

347

930

Additional provisions made during the year

137

209

1,018

300

Receivables written off during the period

(159)

(235)

(159)

(235)

299

321

1,789

930

AS AT 31 DECEMBER

865

6. PROPERTIES HELD FOR SALE Other Properties UCOL has ownership, leasehold and equitable interests in land and buildings which are at various stages of being prepared for sale or transfer, but which at 31 December 2012 did not meet the definition of 'held for sale' under NZ IFRS 5 Non-current Asset Held for Sale and Discontinued Operations. The assets are being prepared for sale because they are no longer required for continued use in UCOL's operations as a result of either educational provision utilising those assets ceasing or the assets being replaced. The assets being prepared for sale have a carrying value of $6,746,000 at 31 December 2012 (2011: $6,148,000) and have been reviewed for impairment.

UCOL Annual Report 2012

39


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 7. OTHER FINANCIAL ASSETS Consolidated Consolidated Parent Parent 2012 2011 2012 2011

Effective interest

Rate (%) Maturity

$000

$000 $000 $000

CURRENT Term deposits with maturities greater than 3 months and remaining duration less than 12 months

500

8,000

500

8,000

TOTAL CURRENT

500

8,000

500

8,000

-

10

-

10

TOTAL NON-CURRENT TOTAL OTHER FINANCIAL ASSETS

- 500

10 8,010

- 500

10 8,010

NON-CURRENT Available For-Sale Financial Assets: - Shares in unlisted entities (at cost)7

7. Shares in Polytechnics International New Zealand were sold 21st December 2012

Term Deposits Term deposits maturing over three months from date of acquisition are all at fixed rates. The weighted average rate secured as at the end of 2012 is 4.23% for group and parent (2011: 3.97% group and parent). The carrying amount of term deposits approximates their fair value. Shares in Unlisted Entities Available for sale financial assets consist of investments in ordinary shares, and therefore have no fixed maturity date or coupon rate. Unlisted shares are carried at cost less impairment because either the fair value of the investment cannot be reliably determined using a standardised valuation technique or due to cost not being materially different to fair value. There were no impairment provisions for financial assets. None of the financial assets are past due or impaired. Parent Interest in Subsidiaries % Shareholding

$ Value of Shareholding

Subsidiary

Shareholding

2012

2011

2012

2011

UCOL International Limited

100 $1 shares

100

100

100

100

10 $1 shares

100

100

10

10

100 $1 shares

100

100

-

-

UCOL Holdings Limited Minerva International Education Limited

40


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 8. INVESTMENT IN JOINTLY CONTROLLED ENTITY T he group invested in Le Cordon Bleu New Zealand Institute Limited Partnership in 2010. It holds a partnership interest of 33% and is entitled to a profit share of 43.15%. The partnership was established to provide tertiary education in the area of Gastronomy, Hospitality and Management within New Zealand. The group also holds a 50% interest in Cybus, an unincorporated joint venture. Cybus was established to deliver academic and support services to Le Cordon Bleu New Zealand Institute Limited Partnership under a service level agreement.

Le Cordon Bleu New Zealand Institute Limited

Partnership Cybus

2012

2011 2012 2011

$000 $000 $000 $000 Investment in jointly controlled entity: Balance at 1 January

2,700

3,012

-

-

New investments during the year

-

-

-

-

Disposal of investments during the year

-

-

-

-

Dilution gain / (loss)

-

-

-

-

Share of total comprehensive income

(908)

(312)

-

-

Balance at 31 December

1,792

2,700

-

-

Summarised financial information of jointly controlled entity (showing the group’s share): Assets

2,071

2,330

157

104

Liabilities

702

266

157

104

Revenues

164

120

825

364

Surplus / (deficit) for the period

(908)

(312)

-

-

Interest

33.00%

33.00% 50.00% 50.00%

Profit share

43.15%

43.15% 50.00% 50.00%

Group’s contingent liabilities incurred in relation to the joint venture

3,000

-

-

-

Group’s share of the joint venture contingent liabilities

-

-

-

-

Other venturers’ contingent liabilities that the Group is liable for

-

-

-

-

Group’s capital commitments incurred in relation to the joint venture

-

-

-

-

Group’s share of the capital commitments of the joint venture

-

1,469

-

-

UCOL Annual Report 2012

41


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 9. PROPERTY PLANT AND EQUIPMENT CONSOLIDATED

1-Jan-2012

1-Jan-2012 1-Jan-2012

Cost or

Accumulated

Net

Fair Value

Depreciation

Carrying

& Impairment

31-Dec-2012 31-Dec-2012 31-Dec-2012 Cost or Accumulated Fair Value

Net

Depreciation

Carrying

Value & Impairment

Value

$000

$000 $000

$000 $000 $000

YEAR ENDED 31 DECEMBER 2012 Land 8

27,594

-

27,594

27,745

-

27,745

Buildings 8

97,919

(15,330)

82,589

80,956

-

80,956

Capitalised Finance Lease Buildings8 Leasehold Improvements Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

1,666 (752) 914 1,666 (827) 839 474

(159)

315

1,362

(352)

1,010

12,632

(8,674)

3,958

14,019

(9,299)

4,720

1,624

(901)

723

1,563

(605)

958

174

(141)

33

644

(213)

431

Library Books

3,631

(2,356)

1,275

3,819

(2,523)

1,296

Work in Progress

3,890

-

3,890

1,325

(10)

1,315

149,604

(28,313)

121,291

133,099

(13,829)

119,270

Total Property, Plant and Equipment

1-Jan-2011 1-Jan-2011 1-Jan-2011 31-Dec-2011 31-Dec-2011 31-Dec-2011

Cost or Accumulated

Net

Cost or

Accumulated

Net

Fair Value Depreciation

Carrying

Fair Value

Depreciation

Carrying

Value

& Impairment

Value

& Impairment

$000 $000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2011 Land 8

27,594

Buildings 8

96,720 (2,516) 94,204 97,919 (15,330) 82,589

Capitalised Finance Lease Buildings 8 Leasehold Improvements

-

27,594

27,594

-

27,594

1,666 (677) 989 1,666 (752)

914

203

(125)

78

474

(159)

315

12,757

(8,619)

4,138

12,632

(8,674)

3,958

1,804

(1,215)

589

1,624

(901)

723

142

(131)

11

174

(141)

33

Library Books

3,443

(2,162)

1,281

3,631

(2,356)

1,275

Work in Progress

1,502

(586)

916

3,890

-

3,890

145,831

(16,031)

129,800

149,604

(28,313)

121,291

Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

Total Property, Plant and Equipment

8. Land and buildings are carried at fair value. All other assets are carried at cost.

42


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 9. PROPERTY PLANT AND EQUIPMENT (CONTINUED)

PARENT

1-Jan-2012 1-Jan-2012 1-Jan-2012 31-Dec-2012 31-Dec-2012 31-Dec-2012

Cost or Accumulated

Net

Cost or

Fair Value Depreciation

Carrying

& Impairment

Accumulated

Net

Fair Value

Depreciation

Carrying

Value

& Impairment

Value

$000 $000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2012 Land 9

26,994

-

26,994

27,150

-

27,150

Buildings9

97,919

(15,330)

82,589

80,956

-

80,956

Capitalised Finance Lease Buildings9

1,666

(827)

474

(159)

315

1,362

(352)

1,010

12,632

(8,674)

3,958

14,019

(9,299)

4,720

1,624

(901)

723

1,563

(605)

958

174

(141)

33

644

(213)

431

Library Books

3,631

(2,356)

1,275

3,819

(2,523)

1,296

Work in Progress

3,890

-

3,890

1,325

(10)

1,315

149,004

(28,313)

120,691

132,504

(13,829)

118,675

Leasehold Improvements Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

Total Property, Plant and Equipment

1,666 (752) 914

839

1-Jan-2011 1-Jan-2011 1-Jan-2011 31-Dec-2011 31-Dec-2011 31-Dec-2011

Cost or Accumulated

Net

Cost or

Accumulated

Net

Fair Value Depreciation

Carrying

Fair Value

Depreciation

Carrying

Value

& Impairment

Value

& Impairment

$000 $000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2011 Land 9

26,994

Buildings 9

96,720

Capitalised Finance Lease Buildings9 Leasehold Improvements

-

26,994

(2,516) 94,204

1,666 (677) 989

26,994 97,919

-

26,994

(15,330)

1,666

82,589

(752)

914

203

(125)

78

474

(159)

315

12,757

(8,619)

4,138

12,632

(8,674)

3,958

1,804

(1,215)

589

1,624

(901)

723

142

(131)

11

174

(141)

33

Library Books

3,443

(2,162)

1,281

3,631

(2,356)

1,275

Work in Progress

1,502

(586)

916

3,890

-

3,890

145,231

(16,031)

129,200

149,004

(28,313)

120,691

Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

Total Property, Plant and Equipment

9. Land and buildings are carried at fair value. All other assets are carried at cost.

UCOL Annual Report 2012

43


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) CONSOLIDATED

1-Jan-2012

31-Dec-2012

Net Held

Carrying Disposals

Value Additions & Transfers Revaluations

Net

for Carrying Sale Depreciation Impairment

Value

$000

$000

$000

$000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2012 Land 10

27,594

-

-

151

-

-

Buildings 10

82,589

16,113

(24)

(15,244)

-

(2,478)

Capitalised Finance Lease Buildings 10

914

-

-

-

-

(75)

-

839

Leasehold Improvements

315

960

(2)

-

-

(263)

-

1,010

3,958

1,696

(49)

-

-

(885)

-

4,720

723

734

-

-

-

(499)

-

958

Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

- 27,745 - 80,956

33

470

-

-

-

(72)

-

431

Library Books

1,275

200

(12)

-

-

(167)

-

1,296

Work in Progress

3,890

16,644

(19,209)

-

-

-

(10)

1,315

121,291

36,817

(19,296)

(15,093)

-

(4,439)

Total Property, Plant and Equipment

(10) 119,270

1-Jan-2011

31-Dec-2011

Net Held

Carrying Disposals

Value Additions & Transfers Revaluations

Net

for Carrying Sale Depreciation Impairment

Value

$000

$000

$000

$000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2011 Land 10

27,594

-

-

-

-

-

Buildings 10

94,204

1,199

-

-

-

(2,553)

(10,261)

82,589

989

-

-

-

-

(75)

-

914

Capitalised Finance Lease Buildings 10 Leasehold Improvements Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles Library Books Work in Progress Total Property, Plant and Equipment

78

348

(64)

-

-

(47)

-

315

4,138

769

(101)

-

-

(848)

-

3,958

589

655

-

-

-

(521)

-

723

11

32

-

-

-

(10)

-

33

1,281

192

(3)

-

-

(195)

-

1,275

916

5,555

(2,581)

-

-

-

-

3,890

129,800

8,750

(2,749)

-

-

(4,249)

10. Land and buildings are carried at fair value. All other assets are carried at cost.

44

- 27,594

(10,261) 121,291


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 9. PROPERTY PLANT AND EQUIPMENT (CONTINUED)

PARENT

1-Jan-2012

31-Dec-2012

Net Held

Carrying Disposals

Value Additions & Transfers Revaluations

Net

for Carrying Sale Depreciation Impairment

Value

$000

$000

$000

$000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2012 Land 11

26,994

-

-

156

-

-

- 27,150

Buildings 11

82,589

16,113

(24)

(15,244)

-

(2,478)

- 80,956

Capitalised Finance Lease Buildings 11

914

-

-

-

-

(75)

-

839

Leasehold Improvements

315

960

(2)

-

-

(263)

-

1,010

3,958

1,696

(49)

-

-

(885)

-

4,720

723

734

-

-

-

(499)

-

958

Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles

33

470

-

-

-

(72)

-

431

Library Books

1,275

200

(12)

-

-

(167)

-

1,296

Work in Progress

3,890

16,644

(19,209)

-

-

-

(10)

1,315

120,691

36,817

(19,296)

(15,088)

-

(4,439)

Total Property, Plant and Equipment

(10) 118,675

1-Jan-2011

31-Dec-2011

Net Held

Carrying Disposals

Value Additions & Transfers Revaluations

Net

for Carrying Sale Depreciation Impairment

Value

$000

$000

$000

$000 $000

$000

$000

$000

YEAR ENDED 31 DECEMBER 2011 Land 11

26,994

-

-

-

-

-

Buildings 11

94,204

1,199

-

-

-

(2,553)

(10,261)

82,589

989

-

-

-

-

(75)

-

914

Capitalised Finance Lease Buildings11 Leasehold Improvements Plant and Equipment Capitalised Finance Lease Equipment Motor Vehicles Library Books Work in Progress Total Property, Plant and Equipment

- 26,994

78

348

(64)

-

-

(47)

-

315

4,138

769

(101)

-

-

(848)

-

3,958

589

655

-

-

-

(521)

-

723

11

32

-

-

-

(10)

-

33

1,281

192

(3)

-

-

(195)

-

1,275

916

5,555

(2,581)

-

-

-

-

3,890

129,200

8,750

(2,749)

-

-

(4,249)

(10,261) 120,691

Revaluations An independent valuation was obtained to determine the fair value of land and buildings. Fair value is determined by reference to an open market basis, being the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm's length transaction at the valuation date for land and buildings of a non-educationally specific nature. Where buildings have been designed specifically for educational purposes they are valued at depreciated replacement cost which is considered to reflect fair value for such assets. Land and buildings were revalued by G Dowse, independent registered valuer, of the firm Blackmore Group. The effective date of the valuation was 31 December 2012. 11. Land and buildings are carried at fair value. All other assets are carried at cost.

UCOL Annual Report 2012

45


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 9. PROPERTY PLANT AND EQUIPMENT (CONTINUED) Crown Owned Land and Buildings Land and buildings with a carrying amount of $82,206,000 (2011: $71,726,000) included in property, plant and equipment are owned by the Crown. These were first recognised on 31 December 1992. Although legal title has not been transferred, UCOL has assumed all normal risks and rewards of ownership. Capitalised Finance Leases UCOL leases certain land and buildings, and plant and equipment under a number of finance lease arrangements. At 31 December 2012, the carrying value of land and buildings held under finance lease was $839,000 (2011: $914,000), and the carrying value of plant and equipment held under finance lease was $958,000 (2011: $723,000). The leased assets are pledged as security for the related finance lease liabilities (note 13). Impairment Charge The impairment charge on work in progress of $10,000 in 2012 reflects a write-down in land to fair value . This impairment charge has been recognised in the Income Statement. The impairment charge on buildings of $10,261,000 in 2011 reflects the impact of a seismic review carried out in 2011, which identified a number of buildings which require strengthening work in order to minimise danger to life in the event of a significant earthquake (refer Safer UCOL Buildings Project below). As a result of the seismic review, an assessment of the fair value of the affected buildings was carried out by an independent valuer as at 31 December 2011. This impairment charge was recognised in the Revaluation Reserve under Other Comprehensive Income. Residual Values In 2010 UCOL adopted residual values for various land and buildings which were being prepared for sale or transfer, but which at 1 January 2010 did not meet the definition of 'held for sale' under NZ IFRS 5 Non-current Asset Held for Sale and Discontinued Operations (refer note 6 - Properties Held for Sale). Since this date UCOL has continued to adopt residual values. Restrictions on Title Under the Education Act 1989, the Institute and group is required to obtain the consent from the Ministry of Education to dispose or sell of property where the value of the property exceeds an amount determined by the Minister. Safer UCOL Buildings Project Following the 7.1 magnitude earthquake in Christchurch, New Zealand on 4 September 2010, UCOL Management initiated seismic reports of all UCOL campuses through its architects, using consulting engineers. The brief to the consultants was to investigate what could be done to minimise the threat to staff and students from UCOL buildings and structures in the event of a significant earthquake. The architects and consulting engineers reported back in March 2011 and advised that a number of buildings were currently code compliant but require strengthening work to minimise danger to life in the event of a significant earthquake. The architects advised that the rough order of costs to strengthen and/or reconstruct the buildings identified by the investigation was in the vicinity of $21,000,000 to $25,000,000. As a result of the investigation UCOL commenced a Safer UCOL Buildings Project and embarked on a plan to either strengthen, lock down, or demolish and redevelop the various buildings identified by the review as having a high earthquake risk. Strengthening and reconstruction work commenced late 2011, and a significant portion of the work was completed during 2012.The valuation as at 31 December 2012 has taken into account any remaining seismic risks identified as part of the seismic report. Change In Estimate – Useful Lives The useful lives of various buildings were reassessed as part of the 31 December 2012 valuation by Blackmore Group. The potential impact of this reassessment on the 2013 building depreciation expense is estimated to be an additional $18,000.

46


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 10. INTANGIBLE ASSETS

Consolidated Consolidated Consolidated Computer

Parent

Course Computer

Parent Parent Course

Software Development Software Development

Costs

Total

$000

$000

$000

$000

Costs Total $000 $000

AT 1 JANUARY 2011 Cost (gross carrying amount) Accumulated amortisation OPENING NET CARRYING AMOUNT

5,844

32

5,876

5,844

32

5,876

(5,022)

(32)

(5,054)

(5,022)

(32)

(5,054)

-

822

822

822

-

822

YEAR ENDED 31 DECEMBER 2011 Opening net carrying amount

822

-

822

822

-

822

Additions

223

10

233

223

10

233

(394)

(1)

(395)

(394)

(1)

(395)

651

9

660

651

9

660

Amortisation CLOSING NET CARRYING AMOUNT

AT 1 JANUARY 2012 Cost (gross carrying amount) Accumulated amortisation NET CARRYING AMOUNT

6,055

41

6,096

6,055

41

6,096

(5,404)

(32)

(5,436)

(5,404)

(32)

(5,436)

651

9

660

651

9

660

YEAR ENDED 31 DECEMBER 2012 Opening net carrying amount

651

9

660

651

9

Additions

116

-

116

116

-

116

(265)

(3)

(268)

(265)

(3)

(268)

502

6

508

502

6

508

Amortisation CLOSING NET CARRYING AMOUNT

660

AT 31 DECEMBER 2012 Cost (gross carrying amount) Accumulated amortisation NET CARRYING AMOUNT

5,511

41

5,552

5,511

41

5,552

(5,009)

(35)

(5,044)

(5,009)

(35)

(5,044)

502

6

508

502

6

508

Course development costs are acquired.

UCOL Annual Report 2012

47


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 11. TRADE AND OTHER PAYABLES Consolidated Consolidated Parent Parent 2012 2011 2012 2011 $000 $000 $000 $000 Trade payables - operating

3,721

3,592

3,703

Trade payables - capital

195

502

195

502

GST Payable

927

1,021

928

1,020

Interest payable

-

-

-

-

4,843

3,569

5,115 4,826 5,091

RELATED PARTY PAYABLES: Blackmore Group

-

6

-

6

Subsidiaries

-

-

-

-

TOTAL TRADE AND OTHER PAYABLES

4,843

5,121

4,826

5,097

Trade payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of creditors and other payables approximates their fair value. Interest payable is normally settled quarterly throughout the financial year. For terms and conditions relating to related parties refer to note 18. 12. EMPLOYEE ENTITLEMENTS Consolidated Consolidated Parent Parent 2012 2011 2012 2011 $000 $000 $000 $000 Accrued pay Annual leave Sick leave

848 1,835 86

570

848

570

1,872 1,835 1,872 144

86

144

Long service leave

11

32

11

32

Retirement gratuities

719

1,116

719

1,116

TOTAL EMPLOYEE ENTITLEMENTS

3,499

3,734

3,499

3,734

COMPRISING: Current portion Non-current portion TOTAL EMPLOYEE ENTITLEMENTS

2,990 509 3,499

2,782 2,990 2,782 952 509 952 3,734

3,499

3,734

Employee Entitlements A provision is recognised for post employment benefits payable to employees. This provision is affected by a number of assumptions including expected length of service, attrition rate, and salary increase. Employees are entitled to annual leave pay, and long service leave pay and retirement gratuities. Annual leave and sick leave entitlements expected to be settled within 12 months of the balance sheet date are measured at the current rates of pay and classified as current liabilities. Entitlements related to long service leave and retirement gratuities have been calculated at present value of future cash flows determined on an actuarial basis.

48


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 13. INTEREST-BEARING LOANS AND BORROWINGS

Consolidated Consolidated Parent Parent

Effective

Interest rate

(%) Maturity

2012

2011

$000

$000 $000 $000

2012

2011

CURRENT Obligations under finance leases (equipment)

7.4

2013

387

341

387

Obligations under finance leases (property)

8.0

2013

105

92

105

341 92

Ministry of Education

0.0 On demand

3,557

3,557

3,557

3,557

The Crown

0.0

2013

276

-

276

-

TOTAL CURRENT

4,325

3,990

4,325

3,990

NON-CURRENT Obligations under finance leases (equipment)

7.4

2014-2015

609

407

609

407

Obligations under finance leases (property)

8.0

2014-2024

2,208

2,313

2,208

2,313

The Crown

0.0

2012-2013

-

320

-

320

TOTAL NON-CURRENT TOTAL INTEREST-BEARING LOANS AND BORROWINGS

2,817 7,142

3,040 2,817 3,040 7,030 7,142 7,030

Ministry Of Education Capital Injection The amounts identified as repayable to the Ministry of Education form part of the Ministry of Education Capital Injection Agreement of 7 October 1996, Variation No.1 of 28 September 1998 and Variation No. 2 of 30 June 2004. Variation No. 1 required UCOL to compensate the Crown for retaining certain lands included in the New City Campus. As the value of these lands was already incorporated into the financial statements the compensation is essentially a return of equity. Accordingly Equity was reduced by $1,156,600 and the Current Portion of Term Liabilities was increased by $1,156,600 to reflect this obligation. Variation No. 2 provided for UCOL to return land at 165 Grey Street, Palmerston North to the Crown and in compensation for the Crown to forgive $2,600,000 of the repayable Ministry of Education Capital Injection. The carrying amount of the Ministry of Education Capital Injection is approximate to its fair value because the interest rate is 0% and the loan is repayable on demand. Convertible Suspensory Loan On 5th November 2007 UCOL entered into a Convertible Suspensory Loan and Risk Management Loan with the Crown whereby the Crown would provide a Convertible Suspensory Loan of up to $7,200,000 to assist with funding the Taupo Quay Campus Development, and which will convert to Equity as relevant conditions are met. The full Suspensory Loan of $7,200,000 was drawn down by UCOL in November and December 2007. The Suspensory Loan will not accrue interest on the principal amount, or any amounts of the loan outstanding and unconverted, until 1 July 2013. The Convertible Suspensory Loan was initially measured at fair value and subsequently accounted for at amortised cost using the effective interest method. On the 5th January 2009 UCOL received Building Equity Conversion Confirmation Notice under the Convertible Suspensory Loan and Risk Management Facility. The notice confirmed that 80% of the Suspensory Loan converted to Equity as from the date of this Conversion Confirmation Notice. The Suspensory Loan conversion to Equity was reflected in the 2008 financial statements as the terms of the building equity conversion were met in 2008. On the 28th November 2012 UCOL received an Equity Conversion notice under the Convertible Suspensory Loan and Risk Management Facility. The notice confirmed that 76% of the Suspensory Loan converted to Equity as from the date of this Conversion Confirmation Notice. Of the remaining 20% of the Suspensory Loan, 16.2% has been recognised in equity to reflect the substance of the transaction and that it is more than probable the conditions associated with this portion of the loan will be achieved. The remaining 3.8% is recognised in payables on the basis that it is not probable conditions associated with this portion of the loan will be achieved, and this portion of the loan will be repaid to the Crown. At inception of the Convertible Suspensory Loan there was a difference between the fair value and the face value of the Loan. The method of accounting for this difference is as an equity injection as management considers the difference between the face value of the loan and the fair value of the loan represents the Crown providing UCOL with funds with respect to its ownership interest in the institution.

UCOL Annual Report 2012

49


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 13. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED) Fair Value The fair value of finance lease is $3,759,000 (2011:$3,834,000). The fair value has been determined using contractual cash flows discounted based on market borrowing rates at balance date of 3.43% (2011:3.44%) ANALYSIS OF FINANCE LEASE LIABILITIES Consolidated Consolidated Parent Parent 2012 2011 2012 2011 $000 $000 $000 $000 TOTAL MINIMUM LEASE PAYMENTS PAYABLE: Not later than one year

725

657

725

657

Later than one year and not later than five years

1,817

1,583

1,817

1,583

Later than five years

2,087

2,385

2,087

2,385

TOTAL MINIMUM LEASE PAYMENTS

4,629

4,625

4,629

4,625

Future finance charges

(1,320)

(1,472)

(1,320)

(1,472)

PRESENT VALUE OF MINIMUM LEASE PAYMENTS

3,309

3,153

3,309

3,153

433

PRESENT VALUE OF MINIMUM LEASE PAYMENTS PAYABLE: Not later than one year

492

433

492

Later than one year and not later than five years

1,178

913

1,178

913

Later than five years

1,639

1,807

1,639

1,807

TOTAL PRESENT VALUE OF MINIMUM LEASE PAYMENTS

3,309

3,153

3,309

3,153

Current

492

433 492 433

Non-current

2,817

2,720 2,817 2,720

TOTAL PRESENT VALUE OF MINIMUM LEASE PAYMENTS

3,309

3,153

3,309

3,153

Description of Material Leasing Arrangements UCOL has entered into finance leases for various items of property and equipment. The net carrying amount of the leased items within each class of property, plant and equipment is shown in note 9. The finance leases can be renewed at UCOL’s option, with rents set by reference to current market rates for items of equivalent age and condition. At the end of the lease term, UCOL has the option to purchase the equipment and the following properties; 53 Campbell Street, 276 Wicksteed Street and 73 Dublin Street. There are no restrictions placed on UCOL by any of the finance leasing arrangements.

50


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 14. PROVISIONS Consolidated Consolidated Parent Parent 2012 2011 2012 2011

$000 $000 $000 $000 ONEROUS LEASES AT 1 JANUARY

70

71

70

Fair value of obligations assumed

-

-

-

-

Increase in present value attributable to time

5

5

5

5

Less amortisation

(6)

(6)

(6)

(6)

AT 31 DECEMBER

69

70

69

70

2

2

2

71

Current provisions represented by Onerous Leases

2

Non-current provisions represented by Onerous Lease

67

68

67

68

TOTAL PROVISIONS

69

70

69

70

Onerous Lease Provision relates to the land component of property lease obligations assumed from Whanganui Regional Community Polytechnic, which have been recognised at their fair values, calculated at the date of incorporation into UCOL. The amount recognised is the present value of the excess of the contractual rent over the assessed market rent. This amount will be amortised over the remaining term of the lease contracts, which range from 1 to 12 years and end in 2024. 15. REVENUE RECEIVED IN ADVANCE Consolidated Consolidated Parent Parent 2012 2011 2012 2011

$000 $000 $000 $000 CURRENT Government grants

131

127 131 127

Student fees

6,077

8,837 6,077 8,837

TOTAL REVENUE RECEIVED IN ADVANCE

6,208

8,964

16. ASSET REVALUATION RESERVE

6,208

8,964

Consolidated Consolidated Parent Parent 2012 2011 2012 2011

$000 $000 $000 $000 AT 1 JANUARY

28,660

38,921 28,660 38,921

Transfer to retained earnings on disposal

440

-

440

-

Revaluation of land and buildings

(15,088)

-

(15,088)

-

-

(10,261)

-

(10,261)

AT 31 DECEMBER

14,012

28,660

14,012

28,660

Impairment charge on revalued land and buildings

16. ASSET REVALUATION RESERVE The asset revaluation reserve is used to record increments and decrements in the fair value of land and buildings to the extent that they offset one another. The impairment charge of $10,261,000 in 2011 reflects the impact of a seismic review carried out in 2011, which identified a number of buildings which required strengthening work in order to minimise danger to life in the event of a significant earthquake. Refer to note 9 Property, Plant and Equipment for further information.

UCOL Annual Report 2012

51


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial instrument categories The accounting policies for financial instruments have been applied to the line items below: Consolidated Consolidated Parent Parent 2012 2011 2012 2011

$000

$000 $000 $000

Financial Assets Loans and Receivables Cash and cash equivalents

4,445

Receivables

4,767

15,409

4,044

15,037

8,793 4,766 8,793

Loans to related parties

-

-

3,246

3,959

TOTAL LOANS AND RECEIVABLES

9,212

24,202

12,056

27,789

Shares in unlisted entities (at Cost)

-

10

-

10

TOTAL AVAILABLE FOR SALE

-

10

-

10

Trade and other payables

4,843

5,121

4,826

5,097

Risk management facility

-

-

-

-

Ministry of Education capital injection

3,557

3,557

3,557

3,557

Convertible suspensory loan

276

320

276

320

TOTAL FINANCIAL LIABILITIES AT AMORTISED COST

8,676

8,998

8,659

8,974

Available for sale financial assets

Financial Liabilities Financial Liabilities at amortised cost

UCOL is subject to a number of financial risks which arise as a result of its debt and investment activities. The UCOL Council has approved policies to manage and limit the effects of those financial risks and to authorise the use of various financial instruments. UCOL is risk averse and seeks to minimise credit risk. UCOL’s principal financial instruments comprise bank deposits, cash and short-term deposits, public securities (NZ Government Stock, NZ Government Treasury Bills, and NZ Government Bonds). UCOL has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. UCOL’s policy throughout the period under review requires no trading in financial instruments be undertaken. The main risks arising from UCOL’s financial instruments are interest rate risk, liquidity risk and credit risk. The UCOL Council reviews and agrees policies for managing each of these risks and they are summarised below. UCOL also monitors the market price risk arising from all financial instruments (i) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. If interest rates on Investments at 31 December 2012 had fluctuated by plus or minus 1.0%, the effect would have been to increase/ decrease the net surplus / (deficit) for the period by $112,000 (2011:$186,000). UCOL has exposure to interest rate risk to the extent that it borrows or invests for a fixed term at fixed rates. Interest rates on short term deposits ranged from 2.85% to 4.60% (2011: 2.95% to 5.40%). Apart from term borrowings, short term deposits and public securities, UCOL has no significant exposure to interest rate risk on its remaining financial assets and liabilities.

52


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) While UCOL does not have a policy of entering into interest rate hedges to manage its exposure to interest rate risk, it does not believe there is any significant exposure to interest rate risk on either its investments or its borrowings. There are no interest rate options or swaps in place as at 31 December 2012 (2011: nil). Repricing maturities are shown in note 13. UCOL’s exposure to market risk for changes in interest rates relates primarily to the group’s long-term debt obligations, the interest rates on term borrowing is set out in note 13. UCOL’s policy is to manage interest rate risk by utilising fixed term interest funding periods. 100% of debt should be in fixed interest rates for periods of no less than 30 days. Where possible the expiry of funding periods should be spread throughout a borrowing period. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The group has transactional currency exposures. Such exposure largely arises from purchases by UCOL’s libraries in currencies other than UCOL’s functional currency. Minerva International Education Limited makes payments in relation to the running of a liaison office in India in Indian rupees. The payments are made from an Indian bank account which is funded by deposits from Minerva’s New Zealand bank account on a periodic basis. UCOL believes it’s exposure to currency risk is minimal. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. UCOL believes it’s exposure to other price risk is minimal. (ii) Credit risk Credit risk is the risk that a third party will default on its obligation to UCOL, causing UCOL to incur a loss. UCOL has no significant concentrations of credit risk, as it has a large number of credit customers, mainly students, and it is a policy of UCOL to withhold academic results until outstanding fees are paid. With the exception of student fees, UCOL trades only with recognised creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that UCOL’s exposure to bad debts is not significant. With respect to credit risk arising from the other financial assets of UCOL, which comprise cash and cash equivalents and available-for-sale financial assets, UCOL’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. It is the policy of Council that Investment Funds (being cash held which is surplus to current requirements, including repayment of debt) are invested in accordance with the Education Act 1989 and Public Finance Act 1989 without requiring ministerial approval. This policy limits investment deposits with registered banks and public securities. In addition, the policy limits the amount of credit exposure to any one institution or organisation. UCOL only invests funds with those entities which have a Standard and Poor’s credit rating of at least A – . Accordingly, the group does not require any collateral or security to support these financial instruments. There are no significant concentrations of credit risk within UCOL. UCOL holds no collateral or other credit enhancements for financial instruments that give rise to credit risk. Credit Quality of Financial Assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates:

UCOL Annual Report 2012

53


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Consolidated Consolidated Parent Parent 2012 2011 2012 2011 $000 $000 $000 $000 COUNTERPARTIES WITH CREDIT RATINGS Cash at bank and term deposits AA AA-

132

2,523

132

2,523

3,813

12,486

3,412

12,114

A+

500

400

500

400

TOTAL CASH AT BANK AND TERM DEPOSITS

4,445

15,409

4,044

15,037

COUNTERPARTIES WITHOUT CREDIT RATINGS Loans to related parties Existing counterparty with no defaults in the past

-

-

Existing counterparty with defaults in the past

-

-

-

-

TOTAL LOANS TO RELATED PARTIES

-

-

3,246

3,959

3,246

3,959

RECEIVABLES Existing counterparty with no defaults in the past

4,767

Existing counterparty with defaults in the past

-

TOTAL RECEIVABLES

4,767

8,793

4,766

8,793

-

-

-

8,793 4,766 8,793

(iii) Credit Facilities UCOL has a flexible credit facility of $nil with the ANZ Bank (2011:$nil), of this $nil has been borrowed by UCOL (2011:$nil). The ANZ Bank flexible credit facility is secured by a registered first mortgage No.B 828269.2 over lease No B 799441.5 UCOL and UCOL School of International Cuisine Studies Limited have jointly provided a guarantee to BNZ to the value of $3,000,000 (2011:$nil) on behalf of Le Cordon Bleu New Zealand Institute Limited Partnership. Liquidity risk UCOL’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, finance leases and hire purchase contracts. The group’s policy is that 100% of debt should be in fixed interest rates for periods of no less than 30 days. Where possible the expiry of funding periods should be spread throughout borrowing period. $nil of the group’s debt will be repaid in less than one year at 31 December 2012 (2011:$nil). Contractual maturity analysis of financial liabilities The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the floating rate of the instrument at the balance date. The amounts disclosed are the contractual undiscounted cash flows. YEAR ENDED 31 DECEMBER 2012

Carrying amount

Contractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

CONSOLIDATED Trade and other payables Accrued pay Ministry of Education capital injection Convertible suspensory loan Finance leases TOTAL

54

4,843

4,843

4,843

-

-

848

848

848

-

-

- -

3,557

3,557

3,557

-

-

-

276

276

276

-

-

-

3,309

4,629

725

1,817

525

1,562

12,833

14,153

10,249

1,817

525

1,562


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) YEAR ENDED 31 DECEMBER 2011

Carrying amount

Contractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

5,121

5,121

5,121

-

-

-

570

570

570

-

-

-

3,557

3,557

3,557

-

-

-

320

320

-

320

-

-

3,153

4,625

657

508

455

3,005

12,721

14,193

9,905

828

CONSOLIDATED Trade and other payables Accrued pay Ministry of Education capital injection Convertible suspensory loan Finance leases TOTAL

455

3,005

YEAR ENDED 31 DECEMBER 2012

Carrying amount

Contractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

PARENT Trade and other payables Accrued pay Ministry of Education capital injection Convertible suspensory loan Finance leases TOTAL

4,826

4,826

4,826

-

-

-

848

848

848

-

-

-

3,557

3,557

3,557

-

-

-

276

276

276

-

-

-

3,309

4,629

725

1,817

525

1,562

12,816

14,136

10,232

1,817

525

1,562

YEAR ENDED 31 DECEMBER 2011

Carrying amount

Contractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

PARENT Trade and other payables Accrued pay Ministry of Education capital injection Convertible suspensory loan Finance leases TOTAL

5,097

5,097

5,097

-

-

-

570

570

570

-

-

-

3,557

3,557

3,557

-

-

-

320

320

-

320

-

-

3,153

4,625

657

508

455

3,005

12,697

14,169

9,881

828

455

3,005

Contractual maturity analysis of financial asset The table below analyses financial assets into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. YEAR ENDED 31 DECEMBER 2012

Carrying amount

Contractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

CONSOLIDATED Cash and cash equivalents

4,445

4,445

4,445

Receivables

4,767

5,066

5,066

TOTAL

9,212

9,511

9,511

Carrying amount

Contractual cash flows

< 1 year

15,409

15,409

8,793

9,114

24,202

24,523

YEAR ENDED 31 DECEMBER 2011

-

-

-

-

-

-

-

-

-

1-2 years

2-3 years

More than 3 years

15,409

-

-

-

9,114

-

-

-

24,523

-

-

-

CONSOLIDATED Cash and cash equivalents Receivables TOTAL

UCOL Annual Report 2012

55


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) YEAR ENDED 31 DECEMBER 2012

Carrying amount

ontractual cash flows

< 1 year

1-2 years

2-3 years

More than 3 years

PARENT Cash and cash equivalents

4,044

4,044

4,044

-

-

-

Receivables

4,766

5,065

5,065

-

-

-

TOTAL

8,810

9,109

9,109

-

-

-

1-2 years

2-3 years

More than 3 years

YEAR ENDED 31 DECEMBER 2011

Carrying amount

Contractual cash flows

< 1 year

PARENT Cash and cash equivalents Receivables TOTAL

15,037

15,037

15,037

-

-

-

8,793

9,114

9,114

-

-

-

23,830

24,151

24,151

-

-

-

Interest on financial instruments classified as floating rate is repriced at intervals of less than one year. Interest on financial instruments classified as fixed rate is until maturity of the instrument. The other financial instruments of the group and parent that are not included in the above tables are non-interest bearing. Refer to notes 7 and 13 for disclosure of effective interest rates. 18. RELATED PARTY DISCLOSURE UCOL is the ultimate parent of the group and controls seven entities: UCOL International Limited, UCOL Holdings Limited, UCOL School of International Cuisine Studies Limited, UCOL Developments Limited, The Southern North Island Education Development Trust, Chilton Holdings Limited and Minerva International Education Limited. UCOL also jointly controls two entities: Le Cordon Bleu New Zealand Institute Limited Partnership and Cybus Joint Venture. Significant Transactions with Government-Related Entities UCOL is a wholly owned entity of the Crown. The Government, through the Tertiary Education Commission and Ministry of Education, influences the roles of UCOL as well as being its major source of revenue. UCOL received funding and grants from the Tertiary Education Commission totalling $30,539,000 (2011: $29,971,000) to provide education and research services for the year ended 31 December 2012. UCOL also leases, at a $1 rental amount, land and buildings legally owned by the Crown. Further information on the accounting for Crownowned land and buildings is disclosed in the Statement of Accounting Policies (29(b)) under the heading "Critical judgements in applying UCOL's accounting policies: Crown owned land and buildings." 18. RELATED PARTY DISCLOSURE (CONTINUED) Collectively, but not Individually, Significant Transactions with Government-Related Entities In conducting its activities, UCOL is required to pay various taxes and levies (such as GST, PAYE, Studylink and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. UCOL is exempt from paying income tax and FBT. UCOL enters into transactions with Government Departments, Crown entities and state-owned enterprises for goods and services. These transactions are subject to normal commercial terms and conditions. The purchase and provision of goods and services for the year ended 31 December 2012 are small when compared to UCOL's total expenditure and revenue, and include the purchase of electricity from Meridian Energy, student placements from the District Health Boards and qualification and audit requirements for the New Zealand Qualifications Authority. The provision of services to government-related entities mainly related to the provision of educational courses. Related Party Transactions with Subsidiaries and Joint Controlled Entities Aside from The Southern North Island Education Development Trust and Chilton Holdings Limited, UCOL had transactions with each of its subsidiaries during 2012 and these are detailed below. UCOL paid expenses on behalf of UCOL International Limited costing $2,000 during 2012 (2011: $6,310). UCOL International Limited made a loan repayment during 2012 of $nil (2011: $nil). UCOL made a provision for doubtful debts of $488,000 related to the amount of

56


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 outstanding balances at 31 December 2012 (2011: $427,000). At 31 December 2012 UCOL International Limited owed UCOL $488,000 (2011: $485,663). UCOL paid expenses on behalf of UCOL Holdings Limited costing $8,000 during 2012 (2011: $7,082). During 2012 UCOL provided a loan of $nil to UCOL Holdings Limited (2011: $nil). UCOL made a provision for doubtful debts of $15,000 related to the amounts of outstanding balances at 31 December 2012 (2011: $7,000). At 31 December 2012 UCOL Holdings Limited owed UCOL $115,000 (2011: $107,177). UCOL paid expenses on behalf of UCOL School of International Cuisine Studies Limited costing $2,000 during 2012 (2011: $2,315). During 2012 UCOL provided a loan to UCOL School of International Cuisine Studies Limited of $nil (2011: $nil). The balance owing as at 31 December 2012 was $3,154,000 (2011: $3,152,315). UCOL paid expenses on behalf of UCOL Developments Limited costing $7,000 during 2012 (2011: $7,367). During 2012 UCOL provided a loan of $nil to UCOL Developments Limited (2011: $nil). UCOL made a provision for doubtful debts of $616,000 related to the amount of outstanding balances at 31 December 2012 (2011: $8,000). At 31 December 2012 UCOL Developments Limited owed UCOL $616,000 (2011: $608,238). UCOL paid expenses on behalf of Minerva International Education Limited costing $2,000 during 2012 (2011: $55,249). During 2012, UCOL provided a loan of $160,000 to Minerva International Education Limited (2011: $nil). UCOL made a provision for doubtful debts of $372,000 related to the amount of outstanding balances at 31 December 2012 (2011: $167,000). At 31 December 2012 Minerva International Education Limited owed UCOL $372,000 (2011: $214,413). UCOL provided services to Le Cordon Bleu New Zealand Institute Limited Partnership (a jointly controlled entity of UCOL School of International Cuisine Studies Limited) costing $17,000 during 2012 (2011: $62,117). UCOL provided services to Cybus (a jointly controlled entity of UCOL) costing $30,000 during 2012 (2011: $36,000). UCOL paid a subscription to the Tertiary Accord of New Zealand of which Paul McElroy is a Director during 2012 of $89,700 (2011:$89,700). All inter-company transactions were supplied at both normal market prices and commercial terms. Any outstanding balances are unsecured and settlement occurs in cash. UCOL has provided a guarantee that both UCOL International Limited and Minerva International Education Limited are at all times in a position to meet their financial obligations and liabilities as they fall due in the ordinary course of business. In addition to this, UCOL and UCOL School of International Cuisine Studies Limited have jointly provided a guarantee to BNZ to the value of $3,000,000 on behalf of Le Cordon Bleu New Zealand Institute Limited Partnership. There have been no other guarantees provided or received for any related party receivables. Transactions with Key Management Personnel

Consolidated Consolidated Parent Parent

2012

2011 2012 2011

$000

$000 $000 $000

Salaries and other short term employee benefits

1,770

1,830

1,770

1,830

Post-employment benefits

-

- - -

Other long-term benefits

-

-

Termination benefits

-

- - -

1,770

-

-

1,830 1,770 1,830

ey management personnel include all members of Council, the Chief Executive, and 9 members of the Senior Executive Team and related K persons in employment with UCOL. Councillorâ&#x20AC;&#x2122;s fees are also disclosed separately in note 3. During 2012, family members of Councillors and key management were involved in transactions with UCOL by undertaking a course of study. These services were provided as part of a normal customer relationship, and at the discounted cost available to all employees of UCOL and their families. There are close family members of key management personnel employed by UCOL. The terms and conditions of those arrangements are no more favourable than UCOL would have adopted if there were no relationship to key management personnel. During 2012 UCOL leased out a property, the tenants of which are related to a member of the UCOL management team. Rent received in 2012 was $9,000 (2011: $4,000).

UCOL Annual Report 2012

57


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 19. EVENTS AFTER THE BALANCE SHEET DATE There were no post balance date events. 20. EARLY CHILDHOOD SERVICES Ministry of Education Subsidies UCOL is required by the Ministry of Education to show details of Ministry of Education subsidies received in relation to Early Education Services, and how the subsidies have been spent. Early childhood services are integrated into the operations of UCOL and there are a number of specific occupancy and overhead related costs of the childcare centres which are not included in the reported information below. The information below shows only those costs which are related to meeting Ministry of Education reporting requirements, which are typically direct expenditures. Ukidz Akoranga Wairarapa Consolidated Consolidated 2012 2012 2012 2012 2011 $000 $000 $000 $000 $000 REVENUE Ministry of Education early childhood funding

664

359

280

1,303

1,336

Other revenues

203

50

27

280

207

-

-

-

-

-

TOTAL REVENUE

867

409

307

1,583

1,543

Interest

EXPENDITURE Payroll

702

364

267

1,333

1,459

Materials and operations

155

44

36

235

194

Depreciation

23

1

7

31

32

Amortisation

-

-

-

-

-

Loss on disposal of assets

-

-

-

-

-

TOTAL EXPENDITURE

880

409

310

1,599

1,685

(3)

(16)

(142)

-

-

(16)

(142)

Operating surplus/(deficit) prior to items requiring separate disclosure ITEMS REQUIRING SEPARATE DISCLOSURE

(13)

-

Integration costs

-

-

-

NET SURPLUS/(DEFICIT) FOR THE PERIOD

(13)

-

(3)

Ministry of Education Grants UCOL also receives various grants from the Ministry of Education. The following statement reports on the grants received and how this funding was spent.

58


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 20. EARLY CHILDHOOD SERVICES (CONTINUED)

Ukidz

Akoranga

Wairarapa

Consolidated Consolidated

2012 2012 2012 2012 2011 $000 $000 $000 $000 $000 BALANCE AT 1 JANUARY BOUGHT FORWARD

16

28

17

61

71

GRANTS RECEIVED Equity grant

-

13

6

19

12

Support grant for provisionally registered teachers

-

-

-

-

15

Incentive grants

-

-

-

-

-

TOTAL REVENUE

-

13

6

19

27

EXPENDITURE Payroll - - - - 9 Materials and operations

7

14

8

29

28

TOTAL EXPENDITURE

7

14

8

29

37

Equity Grant transferred to Income Statement

-

20

8

28

-

9

7

7

23

61

BALANCE AT 31 DECEMBER CARRIED FORWARD

21. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET Income Statement Material and operations expenditure was $1,360,000 less than budget due to a combination of a reallocation of resources to the Change Management project and a reduction of costs in line with a lower level of enrolments than budgeted. Separately disclosed costs (Integration, Development, Change Management and Safer UCOL Buildings Costs) were $500,000 greater than budget due to the Change Management Project (refer to note 3(f) Integration, Development, Change Management for more details). Balance Sheet Receivables and sundry assets are $4,121,000 less than budget due to a lower level of 2013 academic year enrolments than budgeted. Revenue received in advance is $3,530,000 less than budget due to a lower level of enrolments for the 2013 academic year and lower level of cash received prior to enrolment than budgeted. For clarification international students must make payment before a study visa is issued. Land and buildings were $19,981,000 less than budget due to the reduction of $15,088,000 in the value of land and buildings in 2012 reflecting the 2012 revaluation of land and buildings. Also contributing to this variance is a lower opening position for land and buildings than anticipated in the 2012 budget. This variance reflects the difference between the accounting entries associated with “booking” an estimate of the impairment of the buildings identified in the Earthquake Assessment report assumed at the time the 2012 Budget was prepared and the final amount “booked” at the end of 2011. Asset revaluation reserve is $18,052,000 less than budget due the impairment charge on buildings of $10,261,000 in 2011 being $3,684,000 greater than budgeted. This variance reflects the difference between the accounting entries associated with “booking” an estimate of the impairment of the buildings identified in the Earthquake Assessment report assumed at the time the 2012 Budget was prepared and the final amount “booked” at the end of 2011. The impairment charge reflects the impact of the seismic review carried out in 2011. This impairment charge has been recognised in the Revaluation Reserve under Other Comprehensive Income. Refer to note 9 Property, Plant and Equipment for further information. Also contributing to the variance is a reduction of $15,088,000 in the value of land and buildings in 2012 reflecting the 2012 revaluation of land and buildings.

UCOL Annual Report 2012

59


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 22. CAPITAL MANAGEMENT UCOLâ&#x20AC;&#x2122;s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented by net assets. UCOL is subject to the financial management and accountability provisions of the Crown entities Act 2004, the Education Act 1989 and the Public Finance Act 1989, which impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives. UCOL manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments, and general financial dealings to ensure UCOL effectively achieves its objectives and purpose, whilst remaining a going concern. Projects which have significant capital spend also are subject to generally accepted financial analysis including net present value, internal rate of return and simple payback where applicable. 23. CAPITAL COMMITMENTS AND OPERATING LEASES Operating Lease Commitments â&#x20AC;&#x201C; Group as Lessee UCOL has entered into commercial leases on certain motor vehicles and items of small machinery where it is not in the best interest of the group to purchase these assets. Vehicle leases are taken over a 36 month period, while machinery leases are determined on a case by case basis. UCOL became party to certain leases of land upon amalgamation with Whanganui Regional Polytechnic which was incorporated into UCOL in March 2002.These leases have an average remaining life of between 1 and 12 years with renewal terms included in the contracts. Renewals are at the option of the specific entity that holds the lease. There are no restrictions placed upon the lessee by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows: Consolidated Consolidated Parent Parent 2012 2011 2012 2011 $000 $000 $000 $000 Non-Cancellable Operating Lease Commitments and Other Contracts Within one year

327

560

327

557

Later than one and not later than two years

188

229

188

229

Later than two years and not later than five years

197

262

197

262

Later than 5 years

183

210

183

210

TOTAL OPERATING COMMITMENTS

895

1,261

895

1,258

Capital Commitments At 31 December 2012 the group had capital commitments of $nil, (2011: $3,970,000 principally related to the Safer UCOL Buildings capital project). Finance Lease and Hire Purchase Commitments The group has finance leases and hire purchase contracts for various items of plant, machinery and buildings. These leases have no terms of renewal, purchase options or escalation clauses with the exception of building leases of which some have compulsory renewal periods and escalation clauses. Future minimum lease payments under finance leases and hire purchase contracts together with the present value of the net minimum lease payments as detailed in note 13. 24. CONTINGENCIES Contingent Assets In the event of the Akoranga Education Trust Incorporated (an associate) being liquidated or dissolved UCOL holds a right to the net assets of the Trust. However prior to one of these events occurring the net assets of the Trust could be partly or wholly applied towards meeting new objectives of the Trust. Therefore at the present time it is not probable that benefits will flow from the right to the net assets of the Trust, nor can the entitlement be reliably measured.

60


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012 24. CONTINGENCIES (CONTINUED). Contingent Liabilities Consolidated Consolidated Parent Parent 2012 2011 2012 2011

$000 $000 $000 $000 Personal Grievance

-

-

-

-

Guarantee LCB NZIP

3,000

-

3,000

-

TOTAL CONTINGENT LIABILITIES

3,000

-

3,000

-

Personal Grievance Claims There are no open personal grievance claims against UCOL (2011: nil). Guarantee LCBNZIP UCOL and UCOL School of International Cuisine Studies Limited have jointly provided a guarantee to BNZ to the value of $3,000,000 (2011:nil) on behalf of Le Cordon Bleu New Zealand Institute Limited Partnership.

STUDENT PROFILE

Michael Watson - Bachelor of Applied Visual Imaging Bachelor of Applied Visual Imaging graduate Michael Watson already has a video production internship in San Francisco on his c.v. Michael was selected to travel to renowned video production/ post-production studio, Lobitos Creek Ranch in San Francisco, at the beginning of January 2013 for a nine week visit. “It was a once in a lifetime opportunity,” says the 24 year old. The internship for BAVI students was conceived two years ago by Californian and Lobitos Creek Ranch owner Steve Michelson, and Reel Earth Environmental Film Festival Director Brent Barrett and Warren Jones, working with UCOL Video Lecturer Mel Edmon. Mel says Steve Michelson is a renowned networker and a great conduit for introductions to all the right people and industry contacts. “He also operates an impressive distribution company so Michael will get an appreciation of the business end of the industry,” she says. Michael’s interests lie in post-production, editing and visual effects and he wants to work in film post-production. “I love all aspects of film-making but post-production is my passion,” he says. “It would be great to work with the big boys at a huge production company like Industrial Light and Magic or Dreamworks.” His prospects look good: The internship has proven to be a successful career launch pad for Joshua Hardgrave, the first UCOL student to be awarded the internship. He now works at WETA Digital in Wellington. Last year’s recipient Nicole Baker works in film production in Melbourne.

UCOL Annual Report 2012

61


UCOL trained Dwayne Cheer is Executive Chef at the exclusive â&#x20AC;&#x2DC;At.mosphereâ&#x20AC;&#x2122; restaurant in Dubai, the highest restaurant in the world.

62


STATEMENT OF RESOURCES

UCOL Annual Report 2012

63


equal education opportunities UCOL believes that student learning needs are paramount and that access to learning is every individualâ&#x20AC;&#x2122;s right. UCOL is committed to enhancing the learning experiences and educational outcomes for all students. A wide range of support services are available in addition to the day to day support given by lecturers in the classroom. The EEdO measures outlined originally in UCOLâ&#x20AC;&#x2122;s profiIe form the basis for reporting.

Objective To put in place measures to ensure students enter programmes with the best opportunity for success. Academic Measures UCOL is committed to open entry supported by a conversation process with students that makes clear the requirements for the programme of study and the preparation that will help students to be successful in their studies. Advice on appropriate courses is available for all potential students. A whole of organisation approach to entry has been implemented. The focus is on students being advised and supported to select the programme of study most appropriate in terms of level and their future career plans. This process is carried out by a combination of support and teaching staff and also provides the opportunity to identify students who may require extra support early and put appropriate interventions in place. Overall 2,787 students were involved in a conversation prior to enrolling in their chosen programme of study. Where entry requirements are in place for students under 20, mainly in degree and diploma programmes, students met with faculty prior to the commencement of their programme. 2012 was the second year that the TEC diagnostic assessment for numeracy and literacy for level one to three programmes was applied. 1,315 students were assessed for literacy and 1268 students undertook numeracy assessments. Teaching staff have trained in the application of literacy and numeracy approaches and work with students in the literacy and numeracy aspects that are embedded in all level 1-3 programmes.

Objective To minimise unnecessary barriers to the progress of students and to increase participation of under-represented groups. Social Measures UCOL provides a wide range of liaison and student support services targeted at increasing the participation of underrepresented groups. UCOL has provided specific educational guidance and support for Maori and Pacific Island students on all sites: The second year of the Raukura approach with the Kaitiaki Akonga focused on Maori students on programmes level one to three, with a few level four programmes. The results for 2011 showed improved achievement for Maori students and in 2012 this approach continued to focus on improving Maori and Pasifika student outcomes. It also enabled increased engagement with Maori and Pasifika students. The Kaitiaki Akonga on all three campuses were able to provide a deeper level of support for students, while the Kaiawhina roles continued to work with levels four and above. Whanganui Maori support saw 112 students access support. In Wairarapa, 75 Maori students accessed study support. In Palmerston North, Maori students accessed support through the Raukura team individually as well as the intensive services offered to programmes targeted for the most attention. Raukura worked with 321 students at levels 1-4. The increased level of student participation can also be attributed to the early engagement with students through the conversation process and Kaiawhina initiatives. In Palmerston North, 92 students accessed support through the Whanau room although this is a very conservative figure. With whole class visits the number would be up to 400 individuals. Students came to seek academic support, whanaungatanga, a quiet place to study, social contacts. In 2012 UCOL had childcare services on Whanganui, Wairarapa and Palmerston North sites. Where it continues to be important for students to have childcare close to campus and of a high standard, UCOL supports this need. Changes in funding early education have created an environment that challenges provision of affordable childcare. At the end of 2012, Akoranga the early education centre in Whanganui, closed because the need for this service for students and staff had dropped away in the past few years. Physical Measures A total of 367 students with disabilities registered across all sites for the 2012 academic year. Of these students, 55 identified as Maori, 8 as Pasifika, 293 as European/Pakeha and 11 as other ethnicities. Palmerston North Accessibility/Disability Support Services had 238 students register as having an impairment/medical condition. A total of 111 students accessed the service at some time through the 2012 academic year. There were 11 students that accessed disability support who had not advised UCOL of their disability at the time of enrolment. Of those students registering with a disability/impairment or health related issue, 34 identified as Maori, 7 as Pasifika, 189 as Pakeha/European and 8 identified with other ethnicities.

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equal education opportunities Whanganui Accessibility/Disability Support Services had 92 students register as having an impairment/medical condition. Of these, 73 students identified as Pakeha/European, 15 as Maori, 1 as Pasifika and 3 as other ethnicities. A total of 36 students accessed the service at some time during the 2011 academic year. Wairarapa Accessibility/Disability Support Services had 37 students register as having an impairment/medical condition. Of these 18 students accessed the service. Six of these identified as Maori and 31 as Pakeha/European. There were an additional 10 students that accessed the disability support who at the time of enrolment had not advised UCOL of their disability. Academic Measures During 2012 Palmerston North campus Learning Advisors had 3,643 academic support appointments with 1,675 individual students. 489 students were also supported by specialist tutors, in 377 study groups and 495 individual appointments. On the Whanganui campus, Learning Services had 1,885 academic support appointments with 792 individual students. 325 students were also supported in 42 study groups. On the Wairarapa campus, 470 academic support appointments were made with students who were seen individually for academic support. An initiative to support students who do not traditionally seek academic support was continued in 2012 under Project Transform with twenty largely level one to four programmes being selected as targeted and monitored programmes. The focus was on support staff working collaboratively with academic staff to support students and resulted in support staff working in classrooms and providing timely and subject specific academic support to the programmes. This process also resulted in students developing a relationship with the support team and as a result accessing the variety of support services available. These programmes involved a total of 775 students. In the trades area, in Palmerston North, a dedicated support person worked with students individually and in groups to improve retention and success. This support was provided to 91 students and involved 436 appointments in total. Financial Measures Hardship grants to the value of $9,153 were distributed among 117 students on the Palmerston North campus who requested assistance. Twenty-three students from Whanganui received grants for student hardship for a total of $990. Nineteen students in Wairarapa applied for hardship grants and received a total of $3,608 through the Masterton Trust Lands Trust.

Below: UCOLâ&#x20AC;&#x2122;s Nursing Sim Lab is a two room, four bed facility that replicates the layout, equipment and environment of a nursing ward down to the minutest detail. Remotely controlled mannequins are the patients during the 30 minute teaching scenarios.

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STATEMENT OF EQUAL EMPLOYMENT OPPORTUNITIES (EEO) Equal employment opportunities (EEO) are created by identifying and eliminating barriers to working at UCOL and providing frameworks, support and advice to ensure there is effective management of our increasingly diverse workforce. The Chief Executive is responsible for overseeing UCOL’s EEO policy, programme and plans. The Director Maori is responsible for all EEO matters as they relate to the Treaty of Waitangi obligations.

2012 EEO Key Objectives • Elimination of barriers and reduction of bias • Reflection of community diversity • Meeting reporting requirements

Objective To ensure all human resource policies, procedures and practices comply with current legislation and are consistent with good practice. A re-organisation of the human resource function commenced toward the end of 2011. One of the goals of re-organisation was to improve the timeliness, accuracy and cost of processes that enable the recruitment, appointment and retention of staff. In addition, an internal audit was undertaken of Human Resource policy, procedure and practice during 2012. While no significant issues were identified, a number of recommendations were made and action plans developed to improve current practices. As a result of the re-organisation of the human resource function and internal audit recommendations, a key focus for 2012 was to improve: a)

Policy and process alignment

b)

Policy and process adherence

c)

Information System adequacy

Objective To develop assessment methodologies that reduce the likelihood of unacceptable bias and discrimination during recruitment and selection processes. UCOL applies structured interview assessment processes. This includes the rating of candidates against pre-set objective criteria for positions. UCOL continues to explore options for a new electronic recruitment management system which incorporates best practice processes.

Objective To review the ethnicity of applications and appointments with a view to identifying the effectiveness of current advertising and appointment practices. UCOL currently collects data concerning the ethnicity and gender of applicants for assessment purposes. Any future recruitment system changes will be required to continue to enhance this functionality.

Objective To review Pay and Employment Equity within the ITP sector. UCOL reviews employee pay rates against the ITP Sector as part of UCOL’s ongoing monitoring of remuneration and ITP benchmarking.

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STATEMENT OF PHYSICAL RESOURCES FOR THE YEAR ENDED 31 DECEMBER 2012 UCOL occupies campuses in Palmerston North, Masterton and Whanganui. UCOL also leases properties in Palmerston North, Feilding, Masterton, Whanganui, and in Auckland. PALMERSTON NORTH CAMPUS LAND: The Palmerston North Campus is bound by Grey, Amesbury and King Streets, together with individual Crown owned and leased properties on each of these streets and comprises 3.51 hectares of land zoned Inner and Outer Business. BUILDINGS: UCOL occupies buildings comprising approximately 24,000 square metres. CAMPUS FACILTIES: Campus facilities include teaching and tutorial areas, workrooms, workshops and labs, library, teaching and administration staff offices, student services and childcare centre. Five other non-core properties are held in Palmerston North for possible future development and are currently leased or rented. WHANGANUI CAMPUS LAND: The Whanganui Campus is bound by Taupo Quay, Market Place, Rutland Street and Drews Avenue, and is UCOL owned and comprises 0.83 hectares of land. BUILDINGS: The campus buildings comprise 12,000 square metres. CAMPUS FACILITIES: Campus facilities include teaching and tutorial areas, workrooms, workshops and labs, library, gallery, teaching and administration staff offices. UCOL still retains the following old Whanganui Campus properties: Main Campus (bound by Dublin, Bell and Liverpool Streets) which is Crown owned and part occupied by UCOLâ&#x20AC;&#x2122;s Akoranga early education centre, Quay School of Arts and the Glass facility, and Springvale Road which is Crown owned. Both properties are currently leased. Two other properties are held in Whanganui for possible future campus development. WAIRARAPA CAMPUS LAND: The Wairarapa Campus is situated between Queen and Chapel Streets in Masterton on either Crown owned or leased properties and comprises 1.62 hectares of Crown land. BUILDINGS: Buildings comprise a total area of 4,324 square metres, of which 3,163 square metres are Crown owned, 260 square metres are UCOL owned, and 901 square metres are leased. CAMPUS FACILITIES: Campus facilities include teaching and tutorial areas, workshops, library, teaching and administration staff offices, childcare centre and student common room.

elow: UCOLâ&#x20AC;&#x2122;s state-of-the-art Trades and Technology Training Centre was opened in October by the Minister of Tertiary B Education, Skills and Employment, Steven Joyce.

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STATEMENT OF HUMAN RESOURCES FOR THE YEAR ENDED 31 DECEMBER 2012 PROGRAMME DELIVERY

2012 FTE Staff

2011 FTE Staff

60

58

Lecturing Staff Faculty of Humanities and Business:

Palmerston North Campus

Wairarapa Campus

6

5

Whanganui Campus

1

0

58

49

Faculty of Health, Science:

Palmerston North Campus

Wairarapa Campus

5

6

Whanganui Campus

8

7

40

34

Faculty of Trades and Technology

Palmerston North Campus

Wairarapa Campus

4

4

Whanganui Campus

2

3

Auckland Campus

1

0

Faculty of Educational Delivery and Innovation:

Palmerston North Campus

1

1

Wairarapa Campus

-

1

Whanganui UCOL

41 42 Total: 227

Total: 210

Support Staff

Faculty Administration

56

53

Student Support

51

55

Total: 107

Total: 108

6

6

PROGRAMME DEVELOPMENT

Curriculum and Academic Services

Library

Education Technology

18

17

0

1

Total: 24

Total: 24

1

2

Total: 1

Total: 2

RESEARCH

Professorial Staff

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STATEMENT OF HUMAN RESOURCES FOR THE YEAR ENDED 31 DECEMBER 2012 CORPORATE SERVICES

2012 FTE Staff

2011 FTE Staff

General Administration

7

8

Financial Services

9

8

Computer Services

8

8

Facilities Management

13

12

Staff Services

5

6

Marketing/Liaison/Client Services

27

30

17

15

Registry

EXECUTIVE

Total Full Time Equivalent Staff

Total: 86

Total: 87

2 2 Total: 2

Total: 2

Total: 447

Total: 433

Below: Thirteen Chinese students celebrated the completion of a Cookery qualification at Whanganui UCOL. The students were the second group to come to Whanganui to study for the National Certificate in Hospitality â&#x20AC;&#x201C; Professional Cookery.

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STATEMENT OF RESEARCH 2012 There has been continued commitment and growth in research and the application of research to teaching in 2012. UCOL’s staff teaching in degree programmes have continued to grow in experience, practice and application of their research skills. A significant number of staff are committed to higher education at either the masters or doctorate level and a number of people have achieved their post-graduate degrees in 2012. In 2012 more staff engaged in research and shared that research with others both within UCOL and externally. Importantly, given UCOL’s commitment to research that improves teaching and students’ learning, the practical focus of much of the research achieved kept the teacher focussed and current and was shared with students in the context of their degree. Throughout 2012 people presented their research, questions, progress and outcomes to colleagues at regular in-house fora in both Palmerston North and Whanganui. Students are often invited to attend these seminars and are encouraged to do so. Growing the culture of research has built momentum as more people engage and present their work. In an open atmosphere, those with less experience are encouraged to think about developing their own research with the encouragement of those already actively engaged. Newly engaged researchers are able to present to their colleagues and gain confidence to present in wider contexts. UCOL still has work to do to continue to grow its research culture but growth, both potential and actual, is evident. UCOL’s strength in staff engagement in research throughout its degrees shows that the opportunities for creative and analytic research is evident. As lecturers continue to achieve post-graduate qualifications, the experience and interest in research are fostered and developed. Sharing good practice and research plans are accessible through information available through the intranet website. The successful functioning of the Research Committee and focussed sub-committees has provided a structure to foster and review research progress. The number of people engaged in research supports and makes clear the connections between learning, teaching and the role of research in an institute of technology and polytechnic.

Catherine Snell-Siddle and her sister Sarah Snell celebrating the success of achieving their doctorates at UCOL’s 2013 Graduation.

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Research Statements 2012 Bachelor of Applied Science This year has seen a focus remain on the digitisation of devices available to capture patient information, digital images and the exploration of digital based clinical assessment form. One staff member is enrolled within a Masters programme and is completing Radiographic Image Interpretation papers. One member of staff presented at the NZ PPTA National Maori Teachers conference in Rotorua. Two staff members have also presented clinical teaching and supervision workshops at our clinical centres. One staff member has externally moderated the CPIT degree equivalent.

Bachelor of Applied Visual Imaging The staff in the Bachelor of Applied Visual Imaging have a large focus on practice based research with outputs from the NZIPP National Photographic awards and many exhibitions. There have been 2 staff experimenting with the new medium of ‘Fusion’ which is combining still photography and moving image, they had great success in the NZIPP awards this year winning a Silver with Distinction and a Bronze. Awards won by staff and students provide acknowledgement of the highly professional work the photography group produces which underpins their research. Staff are now in the process of writing new applications for submission early in 2013.

Bachelor of Computer Graphic Design The Whanganui School of Design continued to build successfully on the research culture within the Bachelor and Masters of Computer Graphic Design. Conference papers were presented by Jo Giddens in Barcelona this year at the Tenth International Conference on the Book, and each of the staff engaged in research projects exhibited internationally in 2012. The team will look to extend their research profile in 2013, especially related to industry and investigation and development of design practice.

Bachelor of Fashion The School of Fashion continued to build on their research initiatives with Susan Walker completing revised outcomes with regard to the body of work concerning structural garment design. Cassandra Knight also completed her body of research regarding computer manipulation and the implications for this in print design. Staff appointed to the Fashion degree teaching staff in 2012 will engage with research proposals in 2013.

Bachelor of Fine Arts The Bachelor of Fine Arts tutorial staff has had an increase in research proposals approved this year. The quality of the work and research in which staff engage is an integral part of student achievement and understanding of Fine Arts. The number of outputs and participation in exhibitions and conferences, both national and international, from this faculty is an indication of its committment to research and teaching. 2012 was a successful year of research for the Bachelor of Fine Arts team, with the staff building on the research culture within the Bachelor of Fine Arts.

Bachelor of Information and Communications Technology (Applied) The lecturing team has several on-going research initiatives which have progressed during 2012. There has been increasing interest and activity in evidence based teaching practice such as: graduate profile, student engagement, methods of assessment, student attitudes to learning, mobile learning, cloud computing, and integration of collaborative tools and social media. These research activities have resulted in presentations, themed panel sessions and workshops at international conferences and publications in peer reviewed proceedings. The external monitor states “the school has great role models from staff engaged in doctoral research. The school has achieved a curious, critical, and creative research culture and is continuing to strengthen the rigour aspects of research”. The lecturing team has been strengthened during 2012 with the addition of Dr Judy Engelbrecht who has a PhD in Information Systems, bringing a wealth of research experience. Dr Sarah Snell has completed a Doctorate in Science Education through Curtin University, Perth, Australia. Catherine Snell-Siddle is under examination for her Doctorate in Science Education. Aaron Steele is nearing completion of his work towards a Doctor of Philosophy, also through Curtin University. Sandra Cleland is continuing with her thesis for a Masters of Philosophy in Science Education at Curtin University.

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Research Statements 2012 Bachelor of Nursing The Nurse Education Team has maintained a strong focus on research throughout the year. Seventy eight per cent of academic staff have been engaged in research-related activities. There continues to be a particular emphasis on research in the Staff Development days. Many staff have been involved in on-going exploration and discussion of new initiatives for collaborative research for next year and in particular research around the use of simulation in undergraduate education. Research completions during 2012 have helped to inform the ongoing development, strengthening and delivery of the Bachelor of Nursing curriculum. The completion of a small study to determine what motivates students toward, and how to foster student engagement with self-directed learning in the BN programme is now in the final stages for publication. Other research highlights include a number of publications and presentations as well as one staff member completing Postgraduate Diploma in Education, Educational Administration with Distinction. On-going post graduate study by staff has continued to feature highly. One staff member continues in PhD study; evaluation of the personal tutor support system.

Bachelor of Exercise and Sport Science 2012 has been a very successful year of research for the Exercise & Sport Science team. Major achievements for staff research this year include five podium presentations at conferences (two at international conferences and three at national conferences) and one poster presentation at a national conference. In addition, one journal article has been published this year in a peer review journal and two further articles also submitted to peer-reviewed journals are currently under review. Staff have also completed data collection on a further four research studies, with articles planned for development in 2013. Research publications, which also involve collaboration with researchers from other academic institutions in New Zealand, reflect the dual focus of the degree on both sport and health with publications across both of these areas. Exercise & Sport Science Senior Lecturer, Dr Sonja Dreyer, was awarded the UCOL Award for Excellence in Research at the start of this year. Two staff members have also been involved in research towards higher qualifications in 2012 (one toward a PhD). The research programme of the Exercise & Sport Science team was also strengthened and expanded in 2012 by the introduction of a new Postgraduate Diploma in Clinical Exercise Physiology and the establishment of a specialised exercise rehabilitation facility, U-Kinetics Te Huinga Waiora. This initiative also involves strong collaboration with health organisations, including MidCentral DHB and Health Workforce New Zealand. With this establishment we have introduced a research programme around the effect of exercise interventions across a range of medical conditions (including cardiovascular, respiratory and diabetics) and musculoskeletal conditions. In the areas of sport science, staff have also developed research projects alongside sport science consultancy services with sports teams in the Manawatu region. Overall, 2012 has been a very successful year of research for the Exercise & Sport Science team, which the team will look to continue and extend in 2013.

Below: UCOLâ&#x20AC;&#x2122;s Exercise and Wellness clinic U-Kinetics supports the Postgraduate Diploma in Clinical Exercise Physiology and operates in partnership with physiotherapy providers, The Back Institute Health (TBI Health).

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Research Outputs for 2012 Awards Antonio, V. UCOL Staff Award, Award for a Lecturer in the First 2 Years’ Teaching, Gill Presland Award. Antonio, V. Nominee, Volunteer Coach of the Year, Sports Manawatu Volunteer of the Year. Antonio, V. Silver, Senior Men’s, (90-110kg), NO GI, NZ Team: FILA Oceania Championship, Sydney, Australia. Antonio, V. Silver, Senior Men’s, Brazilian, jiu Jitsu GI, NZ Team: FILA Oceania Championship, Sydney, Australia. Antonio, V. Silver, Senior Men’s, 100-110kg jiu Jitsu GI, Wellington, Jiu Jitsu. Antonio, V. Bronze, Open Men’s, above 84kg Jiu Jitsu, Grapplers’ Challenge: Takedown. Auckland. Antonio, V. Bronze, Advanced Men’s (84-96) NO GI, Grapplers’ Challenge, Palmerston North. Antonio, V. Bronze, Open Men’s NO GI, Grapplers’ Challenge, Palmerston North. Antonio, V. Gold, Advanced Men 96-120kg, 2013 FILA Qualifiers, NO GI Nationals, Auckland. Bunkley, B. Video art, 3rd prize - Now&After’12, Moscow Museum of Modern Art, Russian Federation. Bunkley, B. Commission Sculpture Whanganui, Hear My Train, Whanganui, NZ, April 2012. Davis, K. 1 Gold, 1 Silver, 5 Bronze, Achieved Bar to Fellow, Creative, Travel, NZIPP – Iris Awards. Davis, K. 1 Gold, 2 Silver Distinction, 1 Silver, Landscape, Illustrative, Australian Professional Photography Awards. Dreyer, S. UCOL Staff Award, Excellence in Research, Derek Lake Award. Edmon, M. High Distinction Silver, Fusion, NZIPP – Iris Awards. Giddens, J. First prize, by panel of international judges. The award prize is to have a solo show in the gallery in November 2013, Biennial International Print Show, Art at Wharepuke –Biennial International Print Show-(International Jury), 10 December 2011 to 7 January 2012. Gummer, P. Bronze, Fusion, NZIPP – Iris Awards. Gummer, P. Gold High Distinction, Landscape, Australian Professional Photography Awards. Hahn, D.L. Science & Art Excellent Artwork Award, Shanghai International Science & Art Exhibition, Juried Exhibition, Shanghai, China, Science & Art Excellent Artwork Award, May, (Refereed). Kernohan, A. High Distinction Gold, 4 Silvers, 1 Bronze, Winner of Landscape Category Master (MNZIPP), Curtis Poole Award, Travel, Landscape, Illustrative, NZIPP – Iris Awards. Rankin, D., Dreyer, L., Dreyer, S., Wormgoor, S. Finalist – U-Kinetics Te Huinga Waiora, Emerging Health Service, MidCentral Health Awards. Rotherham, I. 2 Bronzes, Travel, Portrait Classic, NZIPP – Iris Awards. Seaholme, T.S. Finalist, Sport Manawatu Coach of the Year, Manawatu Sports Awards. Seaholme, T.S. Table Tennis Coach of the Year 2011, NZ Table Tennis Coach, NZ Table Tennis Awards.

Conference Presentations Antonio, V. (2012). E portfolio: One year on, UCOL Staff Development Conference, Palmerston North, New Zealand, July Bunkley, B. (2012). Digital Apocalypse, ISEA, Albuquerque, NM, USA, September. Bunkley, B. (2012). The Whimsical Apocalypse, University of Colorado http://pressreleases.uccs.edu/?p=1099, Colorado Springs, USA, September. Davis, K. (2012). The Art of Photography, NZIPP The Art of Photography, Christchurch, NZ, February. Davis, K. (2012). Fine Art Imagery, NZIPP Fine Art Imagery, Hawkes Bay, NZ, July. Davis, K. (2012). Fine Art Imagery, NZIPP Fine Art Imagery, Wellington, NZ, October. Davis, K. (2012). Designing the Image, PSNZ Making is the Difference, Palmerston North, NZ, November. Dreyer, L.I. (2012). Invited Speaker: Resistance exercise prescription for individuals with chronic disease: Evidence-based practice, 2012 FitEx Conference, Auckland, New Zealand, November.

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Research Outputs for 2012 Edgecombe, S., & Phillips, D. (2012). Professional Bubbles (PDRP Project) Joint presentation, Australian & New Zealand Association for Health Professional Educators (ANZAHPE), Rotorua, NZ, June. Edmon, M. (2012). Fusion, NZIPP Conference, Christchurch, NZ, October. Giddens, J. (2012). http://booksandpublishing.com/_uploads/conference/flex_modules/wysiwyg/FINAL_2012_Books_and_Publishing_ Program_-_Post_Conference.pdf, The Tenth International Conference on the Book, Barcelona, Spain, June/July. Hughes, J.D., Fink, P.F., Graham, D.G., & Rowlands, D.S. (2012). Effect of Aquatitan tape on tendon compliance. Proceedings of the 59th, Annual Meeting of American College of Sports Medicine, San Francisco, USA, May/June. Mann, M., & MacDermid, P. (2012). Leg length difference in cyclists: kinetic imbalances and correctional options (OP-BN09-6), Sport Science in the Heart of Europe (ECSS Conference), Bruges, Belgium, July. Rankin, D., Shearman, J., & Robinson, C. (2012). The role of the clinical exercise physiologist as an emerging allied health practitioner in New Zealand, 2012 “Shine the Light” – Allied Health Technical and Scientific Conference, Christchurch, New Zealand, April. Rankin, D. & Dreyer, L. (2012). U-Kinetics Te Huinga Waiora – Clinical Exercise Physiology (Health Science Innovation), UCOL Staff Development Conference, Palmerston North, New Zealand, July. Van Eck, A., van der Merwe, F., & Mann, M. (2012). Pre-season fitness levels of New Zealand ASB Premiership Football Players for the 2012-2013 Season, SESNZ ‘Higher, Faster, Stronger, Healthier’ Conference, Wellington, New Zealand, November/ December. Van Eck, A. (2012). Prezi Presentations, UCOL Staff Development Conference, Palmerston North, New Zealand, July.

Conference and Other Presentations (Posters) Darragh, L., & Lewis, K. (2012). High Kilovolt technique in Digital Imaging, NZIMRT “Quality counts”, Auckland, NZ, August. Hoare, K. (2012). Personal tutor: Evaluation of a student support system - Preliminary findings. (Poster presentation), Australian & New Zealand Association for Health Professional Educators (ANZAHPE), Professionalism under Pressure conference, Rotorua, NZ, June. Jobson, T., & Pratt, V. (2012). Clinical Supervision, Hastings Private Hospital - Radiology, NZ, April. Mann, M. (2012). Short term effects of Plyometric training on speed, strength and power, SESNZ ‘Higher, Faster, Stronger, Healthier’ Conference, Wellington, New Zealand, November/ December. Racey-Stilwell, M. (2012). Taking pictures or taking care of people? Tangata tiriti teaching cultural and professional practice in health care education, PPTA National Maori Teachers, Rotorua, NZ, July.

Conference Proceedings and Other Publications Giddens, J. (2012). The Printed Book: From Letterpress to Print-on-Demand, The Tenth International Conference on the Book, Barcelona, Spain, 30 June-1 July 2012. Giddens, J. (2012). Do good things take time? Paste ups and hand-making-ness in publication design, The Tenth International Conference on the Book, Barcelona, Spain, June/July. Snell, S., Snell-Siddle, C.A., & Fisher, D. (2012). Development and Validation of the MOBLEI: The Effects of Gender and Age on Actual and Preferred Perceptions, 7th International Conference on Science, Mathematics and Technology Education., Muscat, Oman, October. Snell-Siddle, C.A., Snell, S., & Fisher, D. (2012). Development and Validation of the MOBLEI and its Associations with Attitudinal Outcomes, 7th International Conference on Science, Mathematics and Technology Education, Muscat, Oman, October. Steele, A., Cleland, S. & Snell-Siddle, C.A. (2012). Industry stakeholder perceptions of an apprenticeship based ICT degree, New Zealand Association for Cooperative Education Conference, Hamilton, NZ, April. Steele, A., Snell, S., & Snell-Siddle, C. A. (2012). Students on the Staircase: An analysis of staircasing students, Computing & Information Technology Research & Education New Zealand conference, Christchurch, NZ, October.

Exhibitions Anderton, L. (2012). Dreamhouse, Space Gallery, Whanganui, NZ, Sept 12. Anderton, L. (2012). Faculty Show, Edith Gallery, Whanganui, NZ, Feb 12. Bunkley, B. (2012). File Rio 2012, http://www.4wfilm.org, O:4W Film Festival, Cardiff, UK, September . Bunkley, B. (2012). Oslo Screen Festival, Oslo, Oslo, Norway.

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Research Outputs for 2012 Bunkley, B. (2012). CologneOff 8, META House Phnom Penh; Budapest International Shortfilm Festival, Budapest Hungry; ExTeresa Arte Actual, Mexico City, Mexico, Phnom Penh, Budapest, Mexico City, Cambodia, Hungry, Mexico, July-October. Bunkley, B. (2012). Full Circle, Exhibition of Rapid Prototyping Sculpture, Righton Gallery, Manchester, UK, March. Bunkley, B. (2012). Generationxyz: The Past, Present, and Future of Digital Sculpture, Herberger Institute for Design and the Arts, Tempe (Phoenix), Arizona, USA, October. Bunkley, B. (2012). Now&After’12, Moscow Museum of Modern Art, Vyatka Art Museum of V.M. and A.M., Vasnetsov, Moscow, Vasnetsov, Russian Federation, August, September. Bunkley, B. (2012). 34rd Moscow International Film Festival, Moscow, Russian Federation, September. Bunkley, B. (2012). SPARK3DS, Gallery13, Minneapolis, Minnesota, USA, July. Bunkley, B. (2012). Nomophobia, Sanderson Contemporary Art, Auckland, NZ, October. http://www.sanderson.co.nz/Exhibitions/ Upcoming/Parnell.aspx Bunkley, B. (2012). Creep, Sanderson Contemporary Art, Auckland, NZ, October. Bunkley, B. (2012). FILE, Art Galery of Oi Futuro - Flamengo in and SESI' Cultural Centre Sao Paulo, Rio de Janeiro, Sao Paulo, Brazil, June-July. Bunkley, B. (2012). Insideout, The Poly 24 Church Street, Falmouth, UK, May. Bunkley, B. (2012). Video in Lazy Last Sundays launches Sunday 28th October as part of Auckland Art Week, continues on last Sunday of each month until April 2013. Bunkley, B. (2012). Video at CologneOFF 2012. Videoarte en contexto global, Mexico City http://www.exteresa.bellasartes.gob.mx/index. php Davis, K. (2012). Shanghai International Science & Art Exhibition, Shanghai, China, June. Davis, K. (2012). Macau International Science & Art Exhibition, Macau, China, July. Dibert, R. (2012). One Twelve Twelve, The Wreath Show, Space Gallery, Whanganui, NZ, 30 Nov-7 Dec . Dibert, R. (2012). Alternatives: Relocated, Edith Gallery, Whanganui, NZ, 19-25 October. Dibert, R. (2012). AsianIsit/IsItAsian, Space Gallery, Whanganui, NZ, 20-26 October. Dibert, R. (2012). 5th Annual International Juried Plastic Camera Show, RayKo Gallery, San Francisco, USA, March. Dibert, R. (2012). Faculty Exhibition, Edith Gallery, Whanganui, NZ, 12 Feb. Dibert, R. (2012). Whanganui National Art Exhibition, Whanganui Community Art Centre, Whanganui, NZ, Aug- Sept 12. Giddens, J. (2012). ‘Paradigm Shift #1’, ‘Paradigm Shift #2’ and ‘Paradigm Shift ##’, Art at Wharepuke - Biennial International Print Show. Awarded first prize by a panel of international judges. Wharepuke, New Zealand, 10 December-7 January. Giddens, J.H. (2012). Faculty exhibition, One will Prints titled ‘And then’ and ‘Paradigm Shift #4’, Edith Gallery, Whanganui, New Zealand, 4 to 14 April. Giddens, J.H. (2012). Curator and participant in a group exhibition, Concentrate Prints titled ‘999 right + one wrong’, ‘Commodification’ and ‘Capitulation’, Edith Gallery, Whanganui, New Zealand, 10 to 18 May. Giddens, J.H. (2012). The Whanganui National Art Exhibition and Competition Prints titled ‘Sold’, Community Arts Centre, Whanganui, New Zealand, 23 Aug to 14 Sept. Giddens, J.H. (2012). Alternatives photographic exhibition Photograph titled ‘At six o’clock’, Edith Gallery, Whanganui, New Zealand, 25 to 30th Oct. Giddens, J.H. (2012). Curator and participant of group show, All I want for Christmas is some art.’, Edith Gallery, Whanganui, New Zealand, 10 to 24 Nov. Giddens, J.H. (2012). Left Bank Gallery Christmas Show Artwork titled ‘fissure’, Left Bank Gallery, Whanganui, New Zealand, 17 Nov to 10 Dec. Giddens, J. (2012). ‘And then’ and ‘Paradigm Shift #4’, The New Edith Gallery, Whanganui, New Zealand, April. Giddens, J. (2012). ‘999 right + one wrong’, ‘Commodification’ and ‘Capitulation’, The New Edith Gallery, Whanganui, New Zealand, May.

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Research Outputs for 2012 Giddens, J. (2012). ‘Sold’, The Whanganui National Art Exhibition and Competition, Community Arts Centre, Whanganui, New Zealand, 23 August-14 September. Hahn, D.L. (2012). Shanghai Normal University Photography Exhibition, Shanghai Normal University, Shanghai, China, September (Refereed). Hahn, D.L. (2012). Macau Science Exhibition, Macau Science Exhibition, Macau, South China, June (Refereed). Hahn, D.L. (2012). Shanghai International Science & Art Exhibition, Shanghai International Science & Art Exhibition, Shanghai, China, May (Refereed). Hahn, D.L. (2012). Gangzhou High School of Fine Arts Photography Exhibition, Gangzhou High School of Fine Arts, Guangzhou, South China, April (Refereed). Hurst, L. (2012). One Will, The New Edith Gallery; Quay School of the Arts, Whanganui UCOL, Whanganui, NZ, 4 April – 14 April. Hurst, L. (2012). 150 x 150 x 150 - Group Show, Sanderson Contemporary Art, Auckland, NZ, 7- 12 August. Hurst, L. (2012). I’m Drawn to…(Curated Exhibition), Whanganui Community Arts Centre, Whanganui, NZ, July 6 – 29. Hurst, L. (2012). 2012 Whanganui National Arts Exhibition and Awards (Curated Exhibition), Whanganui Community Arts Centre, Whanganui, NZ, 23 August – 14 September. Hurst, L. (2012). Alternatives Relocated (curated), Edith Gallery Quay School of the Arts, Whanganui UCOL, Whanganui, NZ, 25 Oct – 3 Nov. Hurst, L. (2012). AsianIsIt/ItIsAsian, Space Gallery, Whanganui, NZ, Oct–2012. Hurst, L. (2012). Reverberations of the Civil War Juried Exhibition, Fred Parker Giles Gallery, Richmond, KY, USA, 1 – 20 November. Pearce, D. (2012). Placebo, Bowen Gallery, Wellington, NZ, June. Rotherham, I. (2012). Typographical Topography, Square Edge, Palmerston North, NZ, April. Rotherham, I. (2012). Typographical Topography, Photographers Gallery, Napier, NZ, May. Webb, L. (2012). Faculty Exhibition, Edith Gallery, Whanganui , NZ, 12 Feb.

Journal and Book Articles Bunkley, B. (2012). Art News NZ, p. 24 winter 2012, Auckland NZ, Winter Issue 2012, (Refereed). Davis, K. (2012). D-Photo; Issue 49, NZ. Dibert, R. (2012). A Very Photograph to Consider, NZ, Self published. Dibert, R. (2013). Rita Dibert V 6.6, NZ , Self published. Dreyer, L.I., Dreyer, S., and Rankin, D. (2012). Effect of a 10-week high-intensity exercise intervention on College staff with psychological burnout and multiple risk factors, ICHPER-SD Journal of Research, Vol 7 (1) : 27-33, (Refereed). Faulkner, J., Mann, M. (2012). Investigating the physiological effects of different intensities of exercise on cardiac patients, (Under Review), Journal of Cardiopulmonary Rehabilitation, (Refereed). Gallagher P., Tweed M., Hanna S., Winter H., & Hoare K. (2012) (to be in December 2012 issue), Developing the one-minute preceptor. The Clinical Teacher, Publisher: Blackwell Publishing, TCT - 596, (Refereed). Giddens, J. (2011). Best in Print, Threaded Ed.x (pp. 64-69), Auckland Threaded Media Ltd, (Refereed). Giddens, J. (2012). Art at Wharepuke, NZ, (Refereed). Hughes, J.D., Johnson, N.A., Brown, S.J., Chapman, P.G., & Stannard, S.R. Indirect measures of substrate utilisation following eccentric exercise induced muscle damage, European Journal of Sports Science, Under Review, (Refereed). Perry, M., Beckingsale, L., Darlow, B., Gray, B., Gallagher, P., Hoare, K., McKinlay, E., Morgan, S., Pullon, S., Stanley, J. (2012) In Press (A quarterly journal), Interprofessional education for physiotherapist, medical and dietetics students: a pilot programme. Journal of Primary Health Care, Published in New Zealand by the Royal New Zealand College of General Practitioners., JPHC-2012-022, (Refereed). Pratt,V., & Darragh,L. (2012). Shadows, New Zealand Journal of Medical Radiation Technology, Volume 55, Number 3, November 2012 (Refereed).

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Research Outputs for 2012 Webb, L. (2012). 240 Years of New Zealand Painting (One of 23 artists selected to represent the last 20 years of New Zealand painting), Auckland, David Bateman, Authors: Docking, G. Dunn, M & Hanfling, E. ISBN 1869538048 (Refereed).

Scholarly Activities Antonio, V. (2012). Post Grad Dip Public Health: Perceptions of the impact on mental wellbeing in Brazilian Jiu Jitsu (BJJ), Massey University, Centre for Public Health Research, Wellington, NZ, Full Year. Antonio, V. (2012). Sports Coaching, Palmerston North Boys High Rugby, Halifax Rugby, Palmerston North, NZ, January â&#x20AC;&#x201C; August. Antonio, V. (2012). Mixed Martial Arts & Brazilian Ju-jitsu Instructor, UCOL & Scorpion Gym, Palmerston North, NZ, Full Year. Edmon, M. (2012). Creative Processes film workshop, Massey, Palmerston North, NZ, January. Cleland, S. (2012). Masters studies, Curtin University, Perth, Australia, throughout 2012. Cleland, S. (2012). WebStock conference, Wellington, NZ, February. Dalzell, E. (2012). The Art of Deliberate Success - An Introduction, HRINZ Seminar, July. Darragh, L. (2012). Radiographic image Interpretation A, The University of Sydney, Sydney, Australia, July. Darragh, L. (2012). Radiographic image Interpretation B, The University of Sydney, Sydney, Australia, November. Dargie, R. (2012). Postgraduate studies, Massey University, Palmerston North, NZ. Dargie, R. (2012). WebStock conference, Wellington, NZ, February. Dreyer, L. (2012). Clinical Exercise Physiology Service Delivery, U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, MayDecember. Dreyer, S. (2012). Clinical Exercise Physiology Service Delivery, U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, MayDecember. Dreyer, S., Dreyer, L., Rankin, D. (2012). Business After 5 U-Kinetics Te Huinga Waiora â&#x20AC;&#x201C; Presentation, UCOL, Palmerston North, New Zealand, August. Dreyer, S., Dreyer, L., Wormgoor, S., & van Eck, A. (2012). iWorkWell Corporate Wellness Testing & Research, UCOL, Palmerston North, NZ, June. Dreyer, S., Dreyer, L., Wormgoor, S., Rankin, D., van Eck, A. (2012). U-Kinetics Te Huinga Waiora Research: Exercise for Phase II Cardiac Rehabilitation, Exercise for clients with Musculoskeletal Injuries, Exercise for Diabetes and Exercise for Respiratory issues, Vocational Exercise Rehabilitation, UCOL U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, Full Year. Els, A. (2012). Balancing pleasure and achievement in your life workshop, Palmerston North, NZ, May. Els, A. (2012). The Art of Deliberate Success - An Introduction, HRINZ Seminar, Palmerston North, NZ, July. Giddens, J. (2012). Semi-Permanent 2012, National Design Conference, Auckland, New Zealand, May. Jobson, T., & Pratt,V. (2012). Clinical Tutors Forum, UCOL, Palmerston North, New Zealand, February. Mann, M. (2012). Exercise Intensity in Cardiac Patients, UCOL Power Hour of Research, Palmerston North, New Zealand, September. Mann, M. (2012). Board Member for Sport and Exercise Science NZ (SESNZ), SESNZ, Wellington, New Zealand, Full Year. Mann, M. (2012). SESNZ Conference Organising Committee, SESNZ, Wellington, New Zealand, March-November. Mann, M. (2012). Football Coaching, Western Suburbs Football, Wellington, New Zealand, March-September. Mann, M. (2012). Research Project Activities: Physiological testing of squash players and Exercise intensity and Cardiac Rehabilitation, UCOL, Palmerston North, New Zealand, Full Year. Mock, A. (2012). Symposium Presentation x 2, UCOL, Palmerston North, NZ, July. Nairne, M. (2012). Intellectual Property Workshop, UCOL, Palmerston North, NZ, June. Phillips, D. (2012). Mental Health lecture as part of Family Practice postgraduate paper (MN), Massey University, Palmerston North, NZ, 19 July.

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Research Outputs for 2012 Pratt, V. (2012). External Moderation for CPIT Bachelor degree, CPIT, Christchurch, New Zealand, November Rankin, D. (2012). Part-time study towards PhD in Nutritional Science, Massey University, Palmerston North, New Zealand, Full Year. Rankin, D. (2011). Chair of the UCOL Palmerston North Research Sub-Committee, UCOL, Palmerston North, New Zealand, 2012. Rankin, D. (2011). Representative on NZ Tertiary Council for Physical Activity, Sport and Exercise, Massey University, Wellington, December 2012. Rankin, D. (2011). Representative on ITP’s Sport Science, Physical Activity, Health & Wellness Interest Group, Bay of Plenty Polytechnic, Tauranga, March. Rankin, D. (2011). Working group for Registration System for Clinical Exercise Physiology, UCOL, CPIT, Auckland University, SESNZ, Palmerston North and Wellington, full year 2012 Rankin, D. (2012). External Reviewer for Ministry of Health's “Guidelines on Physical Activity for Older People (aged 65 and over)”, UCOL, Palmerston North, New Zealand, August. Rankin, D., Dreyer, S., Dreyer, L., Wormgoor, S. (2012). Attended U-Kinetics/TBI Presentation: Management of Chronic Low Back Pain in the primary health care environment. Keynote speakers: Mr Chris Hoffman, Orthopaedic Surgeon & Tom Neser, Clinical Psychologist, UCOL U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, May. Rankin, D., Seaholme, T., van der Merwe, F., & van Eck, A. (2012). Attended Professional Development Session with Moana Jackson – culture and education, UCOL, Palmerston North, New Zealand, March. Read, G. (2012). Symposium Presentation x 2, UCOL, Palmerston North, NZ, July. Read, G. (2012). Embarking on Masters in Adult Literacy and Numeracy Education, AUT, NZ. Read, G. (2012). Self Defence workshop for UCOL staff, UCOL, Palmerston North, NZ, July. Rossiter, M. (2012). Demystifying NZIFRS – for companies and not for profit entities, Palmerston North, NZ, February. Rossiter, M. (2012). Business Qualifications working party meeting, NZQA, Wellington, NZ, September. Seaholme, T.S. (2012). NSCA Certified Strength & Conditioning Specialist, NSCA Association certification through USA, November. Seaholme, T.S. (2012). Presentation at Sport Manawatu COACHPLUS Lunch Meeting. Title of presentation was “ways to increase skill retention from the design of your coaching sessions”, Sport Manawatu, Palmerston North, NZ, March. Seaholme, T.S. (2012). International coaching duties with TTNZ at NZ Junior & Cadet Open (ITTF Global Junior Circuit), Oceania World Junior Championships Qualification Event, Auckland Table Tennis Stadium, Auckland, NZ, April. Seaholme, T.S. (2012). Attended Sport Manawatu regional inaugural Conference, Rugby Institute, Palmerston North, NZ, May. Seaholme, T.S. (2012). Coaching Manawatu Table Tennis Junior Teams at NZ National Junior Championships, Christchurch Table Tennis Stadium, Christchurch, NZ, July. Seaholme, T.S. (2012). Visit to Uxbridge College to discuss retention, engagement and achievement strategies, Uxbridge College, Uxbridge, England, July. Seaholme, T.S. (2012). Presented a guest lecture on Massey University level 700 class on physical conditioning. This was a lecture on physical conditioning for table tennis, Massey University, Palmerston North, NZ, September. Seaholme, T.S. (2012). Attended SESNZ Annual Conference, Massey University, Wellington, NZ, November. Seaholme, T.S. (2012). Completed XLR8 silver course training (online study), Online Study, Palmerston North, NZ, December. Seaholme, T.S. (2012). National Coach for Cadet Girl’s New Zealand Table Tennis, UCOL, Palmerston North, NZ, Full Year. Seaholme, T.S. (2012). Selector and member of the development committee for Table Tennis Manawatu, UCOL, Palmerston North, NZ, Full Year Seaholme, T.S. (2012). Member of the High Performance committee and the Tournament committee for Table Tennis New Zealand, UCOL, Palmerston North, NZ, Full Year. Seaholme, T.S. (2012). Attended the Sport Manawatu COACHPLUS Lunch Meeting series. These presentations include many topics on coaching and working within the coaching industry, Sport Manawatu, Palmerston North, NZ, Full Year. Seccombe, J., & Stewart, C. (2012). Motivation for self-directed learning? Power Hour presentation for UCOL staff, Palmerston North, NZ, September .

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Research Outputs for 2012 Snell, S. (2012). PhD studies, Curtin University, Perth, Australia Snell, S. (2012). New Zealand Applied Business Education Forum Meeting, Wellington Airport Conference Centre, Wellington, NZ, March Snell, S. (2012). 10 day thesis writing, Curtin University, Perth, Australia, May. Snell, S. (2012). Submission and acceptance of abstract to 2012 Learning environments conference co-authored by Professor Darrell Fisher, Curtin University, Perth. Snell, S. (2012). Scholarship Candidate reviewing – Andrew Cliff Award and Graduate Woman’s Manawatu Award, UCOL, Palmerston North, NZ, July. Snell, S. (2012). Symposium Presentation, UCOL, Palmerston North, NZ, July. Snell, S. (2012). Submission of Doctoral thesis to examining board, Curtin University, Perth, Australia, August. Snell, S. (2012). NZABE Business Qualifications review meeting, Wellington Airport Conference Centre, Wellington, NZ. Snell-Siddle, C. (2012). PhD studies, Curtin University, Perth, Australia. Snell-Siddle, C. (2012). New Zealand Applied Business Education Forum Meeting, Wellington Airport Conference Centre, Wellington, NZ, March. Snell-Siddle, C. (2012). 10 day thesis writing, Curtin University, Perth, Australia, May. Snell-Siddle, C. (2012). Submission and acceptance of abstract to 2012 Learning environments conference co-authored by Professor Darrell Fisher, Curtin University, Perth, Curtin University, Perth, Australia. Snell-Siddle, C. (2012). Submission of Doctoral thesis to examining board, Curtin University, Perth, Australia, September. Snell-Siddle, C. (2012). NZABE Business Qualifications review meeting, Wellington Airport Conference Centre, Wellington, NZ. Steele, A. (2012). PhD studies, Curtin University, Perth, NZ . Steele, A. (2012). Power Hour of Research, UCOL, Palmerston North, NZ, March. Steele, A. (2012). Associate Editor for the Journal of Applied Computing & Information Technology, CITRENZ. Steele, A. (2012). NZACE Conference, Hamilton, NZ, April. Steele, A. (2012). NZACE Council Teleconference, NZ, May Steele, A. (2012). CITRENZ Research and Professional Development Focus Group Meeting, Wellington Airport Conference Centre, Wellington, NZ, May. Steele, A. (2012). NZACE Council Meeting, Auckland, NZ, June. Steele, A. (2012). Carrying out two multi-institutional papers with Otago Poly, EIT, and CPIT (and possibly MIT). The papers have the running titles of: Looking through the Sustainable Lens at capstone projects and Ahead of the curve: positioning schools of IT. Steele, A. (2012). Presented Google Drive Workshop, Western Institute of Technology (WIT), Taranaki, NZ . Steele, A. (2012). CITRENZ Research and Professional Development Focus Group Meeting, CITRENZ, Christchurch, NZ, October. Steele, A. (2012). CITRENZ conference session chair, CITRENZ conference, Christchurch, NZ, October. Thomas, S. (2012). OZ WIT Conference (Women in Technology), Christchurch, NZ, October. Webb, L. (2012). Making Worlds, Final co-authored 7000 word paper completed- awaiting peer revues, Whanganui, NZ. Wormgoor, S. (2012). Diabetes Trust – U-Kinetics presentation (Exercise & Diabetes), Health on Main, Central PHO, Palmerston North, NZ, 6th & 13th November. Wormgoor, S. (2012). Clinical Exercise Physiology Service Delivery, U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, MayDecember. Wormgoor, S. (2012). Special Olympics Health Promotions (student co-ordinator), Community Centre, Palmerston North, NZ, August. Van der Merwe, F. (2012). Midlands Men’s Hockey athletic trainer, National Hockey League competition, Auckland, NZ, July. Van Eck, A., & van der Merwe, F. (2012). Physical Conditioning Report for YoungHeart Manawatu Football, YoungHeart Manawatu Football Board Report, Palmerston North, New Zealand, October.

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Research Outputs for 2012 Van Eck, A. (2012). NSCA Certified Strength & Conditioning Specialist, NSCA Association certification through USA, USA, November. Van Eck, A. (2012). Clinical Exercise Physiology Service Delivery, U-Kinetics Te Huinga Waiora, Palmerston North, New Zealand, JulyDecember. Van Eck, A. (2012). Exercise Physiology Consulting for cyclists from Palmerston North Boys High & Girls High, Palmerston North Boys High, Palmerston North Girls High, Palmerston North, NZ, June-Present. Van Eck, A. (2012). Attended AUT Conference â&#x20AC;&#x201C; SPRINZ Strength and Conditioning Conference, AUT, Auckland, New Zealand, November. Van Eck, A. (2012). Completed Certificate in Adult Teaching (Advanced), UCOL, Palmerston North, New Zealand, August. Van Eck, A., van der Merwe, F., & Mann, M. (2012). Strength & Conditioning Coaches for YoungHeart Manawatu, UCOL, Massey Sport Institute & U-Kinetics Te Huinga Waiora, Palmerston North, NZ, Aug-Present.

Below: Certificate in Fitting, Welding and Machining students with their lecturer in the custom designed Trades and Technology Centre.

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APPENDIX SUPPLEMENTARY INFORMATION

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81


Performance Indicators by Output Group PERFORMANCE INDICATORS UCOL continues to report using the six output class categories identified in 1995. These align our Statement of Corporate Performance with the Ministry of Education’s output class ‘undergraduate education’. This now gives 17 years of comparative data.

Quantity UCOL Council continues to strive to meet the needs of the community, business and trade organisations by offering the required number of student places on existing and new programmes. UCOL achieved 3219 Government funded EFTS, and 458 EFTS through other sources of funding.

Equity UCOL has a long standing commitment to equity in terms of opportunity, provision and support. UCOL is committed to an entry policy that enables student from all demographic groups to pursue tertiary education. This applies to underrepresented groups: Maori, Pacific Island, people with disabilities, and those with low literacy or numeracy skills. For all these people, the ability to participate in education depends on appropriate support, the development of skills and confidences, and information about the pathway that will work for them. Through the provision of conversations prior to admission, welcome sessions, student success plans and targeted culturally appropriate student support, supportive teaching and mentoring in the classroom, students who enter UCOL’s programmes receive many opportunities to ensure success.

Quality Quality is reported in terms of the following:

• Retention Rate – the percentage of students who do not formally withdraw from courses within their programme of study.

• Successful Completion – the percentage of students who do not formally withdraw from courses within their programme of study and meet the academic requirements of each course. •

Courses provided with formal Academic Approval – this is the percentage of programmes offered which the UCOL Academic Board has formally approved. Whilst this process gives an assurance of a high level of rigor being applied to programmes as an indication of quality, the final determination of quality lies principally with the student’s perception of the value of the programme. The value to other stakeholders is also an important indicator of quality.

• Student Satisfaction – the fifteenth cross campus (Palmerston North, Whanganui, Masterton) report on the student experience at UCOL was conducted in 2012. The views of students were canvassed on items including:

Overall UCOL experience

Course Organisation and Assessment

Library

Teaching staff

Computer Facilities and Services

Transport

Student Support Services

General Campus Environment and Facilities

Student Association

Costs & Expenses

Students rated their satisfaction on a seven-point scale ranging from a rating of one (very dissatisfied) to seven (very satisfied). Students were also asked to rate the importance of each item on a similar scale. The overall rating on satisfaction with UCOL as a whole was 5.94 (84.9%) in 2012, compared to 5.91(84.4%) in 2011.

Location UCOL delivers programmes in Palmerston North and Whanganui and Masterton as well as other sites and on-line study managed through the Palmerston North campus. The total 3677 EFTS were delivered across the following campuses: Palmerston North

2012 2011 2580 (70%)

2,510 (68%)

Whanganui

675 (18%)

732 (20%)

Masterton

266 (7%)

263 (7%)

Wellington

11 (0%)

-

4 (0%)

-

104 (3%)

103 (3%)

37 (1%)

94 (3%)

Auckland Other SItes Online Study

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Performance Indicators by Output Group OUTPUT 1: AGRICULTURE, HORTICULTURE AND SCIENCE OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Agriculture, Horticulture and Science Programmes at degree, diploma and certificate levels were offered during 2012 in science, animal science, exercise physiology and general sciences. Secondary Tertiary Alignment Resource (STAR) programmes were also provided.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

256

246

32

28

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt Subsidised

Non Govt Subsidised

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

Non European

Disabled

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

91%

94%

Successful completion

80%

73%

Courses provided with formal academic approval

100%

100%

Student satisfaction

85%

82%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

257

245

Wairarapa

27% 26% 4%

3%

12%

8%

7% 9%

3 3

Whanganui

20

18

Off Campus

8

8

â&#x20AC;&#x192;

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Performance Indicators by Output Group OUTPUT 2: ARTS, DESIGN AND GENERAL EDUCATION OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Arts, Design and General Education Programmes at degree, diploma and certificate levels where offered during 2012 in adult teaching, literacy and numeracy, design and multimedia, maori language, photographic and visual imaging, graphic design, interior design, animation, fashion, fine arts, exercise and sport, beauty, performing arts, health sciences, canine behaviour, early childhood and nannying, mental health, basic maths, study skills, food safety and work based assessor, basic computing skills. STAR and Youth Opportunity programmes were also provided.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

1062

1098

84

97

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

Non Govt subsidised

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

4%

3%

Non European

7%

8%

Disabled

9% 8%

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

88%

95%

Successful completion

79%

76%

Courses provided with formal academic approval

100%

100%

Student satisfaction

83%

80%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

711

704

Wairarapa

66 69

Whanganui

349 402

Auckland

Off-campus

On-Line

â&#x20AC;&#x192;

84

27% 26%

2 15 16 3 4


Performance Indicators by Output Group OUTPUT 3: ENGINEERING AND TECHNOLOGY OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Engineering and Technology Programmes at diploma and certificate levels where offered during 2012 in electrical and related trades, technology, music, electrical and electronic engineering, mechanical engineering, armourer, fitting, welding and machining, fabrication. Apprenticeship and STAR programmes were also provided.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

135

122

26

18

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidized

Non Govt subsidized

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

4%

4%

Non European

6%

3%

Disabled

6% 4%

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

96%

98%

Successful completion

73%

77%

Courses provided with formal academic approval

100%

100%

Student satisfaction

Nil return

70%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

134

140

21% 17%

Wairarapa

15 0

Whanganui

6 0

Off-Campus

6 0

â&#x20AC;&#x192;

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Performance Indicators by Output Group OUTPUT 4: NURSING AND HEALTH OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Nursing and Health Programmes at degree, diploma and certificate levels where offered during 2012 in medical imaging technology, nursing and clinical supervision. STAR programmes were also provided.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

584

603

Non Govt subsidised

135

115

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

Non European

Disabled

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

97%

96%

Successful completion

96%

94%

Courses provided with formal academic approval

100%

100%

Student satisfaction

86%

86%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

485

485

Wairarapa

82

87

Whanganui

115

108

Off-campus

86

12% 10% 3%

3%

33%

33%

5% 3%

37 38


Performance Indicators by Output Group OUTPUT 5: BUSINESS, OFFICE SYSTEMS, COMPUTING AND LAW OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Business, Office Systems, Computing and Law Programmes at degree, diploma and certificate levels where offered during 2012 in business management, computer applications, sales, retail, tourism and travel, secretarial studies, office systems and administration, marketing, frontline management, financial accounting, networking, programming, software, hardware and database management. STAR programmes were also provided.

PERFORMANCE INDICATORS

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

Non Govt subsidised

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

Actual 2012

Actual 2011

611

698

57

49

28% 27% 4%

4%

Non European

10%

9%

Disabled

12% 9%

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

93%

96%

Successful completion

71%

62%

Courses provided with formal academic approval

100%

100%

Student satisfaction

86%

85%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

493

488

Wairarapa

33

34

Whanganui

86

98

Off-campus

21 38

On-Line

34 89

UCOL Annual Report 2012

87


Performance Indicators by Output Group OUTPUT 6: TRADES AND INDUSTRY BASED TRAINING OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Trades and Industry Based Training Programmes at diploma and certificate levels where offered during 2012 in building construction, furniture design and making, automotive trades, motorsport, joinery, welding, baking and pastry, hospitality and professional cookery, catering, culinary arts, hairdressing, driver training, mechanical engineering, fabrication. Apprenticeship and STAR programmes were also provided.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

571

535

Non Govt subsidised

124

93

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

4%

3%

Non European

6%

6%

Disabled

9% 7%

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

92%

98%

Successful completion

75%

74%

Courses provided with formal academic approval

100%

100%

Student satisfaction

86%

85%

LOCATION:

EFTS BY CAMPUS WERE:

Palmerston North

499

448

Wairarapa

67

70

Whanganui

100

106

Off-campus

88

34% 31%

26 4


OUTLINE OF CORPORATE PERFORMANCE â&#x20AC;&#x201C; WHANGANUI UCOL OUTPUT 1: AGRICULTURE, HORTICULTURE AND SCIENCE OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Science. Almost 47 EFTS (46 in 2011) were taught in science related subjects for both the Certificate in Science and Health, and Certificate in Exercise and Sport Performance but these programmes were managed from Palmerston North and therefore have not been captured in the Whanganui data.

OUTPUT 2: ARTS, DESIGN AND GENERAL EDUCATION OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Art, Design and General Education. Programmes at masters, post graduate, degree, diploma and certificate levels where offered during 2012 in computer graphic design, fashion, fine arts, computer skills, art and design, glass design and production, mental health, Maori studies and community education services.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

287

332

33

48

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

Non Govt subsidised

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

Disabled

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

90%

94%

Successful completion

88%

80%

Courses provided with formal academic approval

100%

100%

UCOL Annual Report 2012

19% 25% 2%

2%

12% 9%

89


OUTLINE OF CORPORATE PERFORMANCE â&#x20AC;&#x201C; WHANGANUI UCOL OUTPUT 4: NURSING AND HEALTH OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Nursing and Health Bachelor of Nursing Years one, two and three of the Bachelor of Nursing were offered at Whanganui UCOL and attained 90 EFTS (94 in 2011). Year one of the Diploma in Enrolled Nursing Level 5 was offered at Whanganui UCOL and attained 24 EFTS (17 in 2011). These programmes were administered from Palmerston North and the performance indicators have not been captured in Whanganui UCOL specific data.

OUTPUT 5: BUSINESS, OFFICE SYSTEMS, COMPUTING AND LAW OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Business, Office Systems, Computing and Law. Programmes at diploma and certificate levels where offered during 2012 in business and administration, computer applications, tertiary study skills.

PERFORMANCE INDICATORS

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

Non Govt subsidised

Actual 2012

Actual 2011

75

92

5

8

EQUITY: - STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

Disabled

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

91%

96%

Successful completion

73%

70%

Courses provided with formal academic approval

100%

100%

90

36% 34% 4%

3%

16% 13%


OUTLINE OF CORPORATE PERFORMANCE â&#x20AC;&#x201C; WHANGANUI UCOL OUTPUT 6: TRADES AND INDUSTRY BASED TRAINING OBJECTIVE: To provide to students training and education through the provision of programmes and courses in Trades and Industry Based Training Programmes at certificate level where offered during 2012 in culinary arts, hospitality, hairdressing and barbering.

PERFORMANCE INDICATORS

Actual 2012

Actual 2011

QUANTITY:

EQUIVALENT FULL TIME STUDENTS ENROLLED WERE:

Govt subsidised

55

99

Non Govt subsidised

30

40

EQUITY:

STUDENT ENROLMENTS ACHIEVED WERE:

Maori

Pacific Island

2%

Disabled

7% 7%

QUALITY:

MEASURED QUALITY CRITERIA WERE:

Retention rate of students

95%

97%

Successful completion

87%

73%

Courses provided with formal academic approval

100%

100%

UCOL Annual Report 2012

35% 37% 2%

91


Whanganui Faculty 2012 Course and Qualification Completion Under 25 Students The provision of Learning Advisors at Whanganui and the conversations held between prospective students and academic staff enabled these students to make the right choice of programme and align the same to the individualâ&#x20AC;&#x2122;s career goals. In addition, Academic Counsellors and the Student Experience Team provided strong support to students under age 25. In 2012, Whanganui Faculty offered a variety of papers at Level 3, in such disciplines as Business Administration and Computing, Culinary Arts, Hospitality, Computing as well as some Online Programmes. Successful Course Completions reached their percentage targets for both levels 13 programmes and also for those programmes at Levels 4 and above. Under 25 EFTS & Completions 350

90% 80%

300

70%

250

150

40%

EFTS

50%

Completions

60%

200

30%

100 20%

50 0 EFTS L4+ EFTS L1-3

10%

2009

2010

2011

2012

203

240

216

220

55

62

46

83

Course Comp L1-3

38%

47%

63%

64%

Course Comp L4+

77%

76%

75%

75%

0%

2012 Course and Qualification Completion for Maori Students Maori students who enrolled in programmes at Whanganui UCOL were well supported through Raukura which is a focussed support programme where Kaitiaki Akonga (support people) engage directly and regularly with Maori students with a specific focus on lifting retention and successful completions in levels 1-3 programmes. Targeted support for Maori students was also provided by the Kaiawhina (Maori Student Advisor). Also in 2012, cognisance and an appreciation of the Whanganui Iwi Education Strategy 2010-2025 led to the signing of a formal Accord between Te Puna and UCOL. Based on the principles of trust, mutual respect, and educational cooperation the Accord reflects a shared commitment to improve Maori success at higher levels of retention, progression, and course and qualification completion.

Maori EFTS & Completions 200

80%

180

70%

160 60% 50%

EFTS

120

40%

100 80

30%

60 20% 40 10%

20 0

92

2009

2010

2011

2012

EFTS L4+

127

140

104

108

EFTS L1-3

34

36

33

53

Course Comp L1-3

48%

41%

61%

60%

Course Comp L4+

64%

66%

62%

69%

0%

Completions

140


Whanganui Faculty 2012 Course and Qualification Completion for Maori Students (CONTINUED) This collective support, together with the application of initiatives developed through Project Transform, resulted in actual Maori course completions for 2012 of 66% for Levels 1-3. This result exceeded the target of 55% and also exceeded the 2011 course completion rate for those Levels (61%). For programmes Level 4 and above, actual Maori course completions for 2102 were 68%. This result exceeded the target of 65% and also exceeded the 2011 course completion rate for those levels (62%).

2012 Course and Qualification Completion Pasifika Students The support provided by the Learning Advisors, the Student Engagement Team, and Raukura all assisted in ensuring that course completion targets for 2012 were exceeded across all programme levels.

Pasifika EFTS & Completions 20

120%

18 100%

16 14

EFTS

10

60%

8

Completions

80%

12

40%

6 4

20%

2 0 EFTS L4+ EFTS L1-3

2009

2010

2011

2012

16

11

11

13

3

4

3

6

Course Comp L1-3

26%

53%

100%

78%

Course Comp L4+

66%

65%

79%

62%

0%

2011 -2013 Investment Plan Educational Performance Measures The 2011-2013 Investment Plan contains Education Performance Measures for UCOL. The following Educational Performance Measure table presents Whanganui Faculty performance against UCOL targets for 2010, 2011 and 2012.

UCOL Annual Report 2012

93


Whanganui Faculty

Provision of Vocational Education that meets the needs of student, industry and employers

UCOL Outcome

Educational Performance Indicators

Vocational Education

Target

Participation

The proportion of SAC Eligible EFTS enrolled at the TEO who are Maori

Maori

The proportion of SAC Eligible EFTS enrolled at the TEO who are Pasifika

Pacific

The proportion of SAC Eligible EFTS enrolled at the TEO who are aged under 25

Under 25

The number of international EFTS

International

Participation

Participation

Participation Participation

2012

2011

2010

All Levels

25%

32%

30%

33%

Level 1 - 3

11%

8%

7%

7%

Level 4 and above

14%

25%

23%

26%

All Levels

4.6%

4%

3%

3%

Level 1 - 3

1.8%

1%

1%

1%

Level 4 and above

2.8%

3%

2%

2%

All Levels

58%

56%

57%

57%

Level 1 - 3

23%

9%

10%

12%

Level 4 and above

35%

47%

47%

45%

46

60

54

All Levels

Educational Performance Measurement of the 4 EPI’s is as defined in “Revised educational performance indicators for SAC funded tertiary education organisations” of March 2010 Course Completion

Successful course compltetion rate for all students (SAC Eligible EFTS) All Students

Student retention rate for all students (SAC Eligible EFTS) Student progression for students (SAC Eligible student count) at levels 1-3 Successful course completion for Maori students (SAC Eligible EFTS)

Student Progression Course Completion Maori

Whanganui Successful course completion for Pasifika students (SAC Eligible EFTS)

Successful course completion for students (SAC Eligible EFTS) aged under 25

Student Retention

Pasifika

Course Completion

Course Completion Under 25

Target

Actual

2012

2012

2011

2010

All Levels

70%

75%

75%

71%

Level 1 - 3

60%

68%

66%

48%

Level 4 and above

75%

76%

76%

76%

All Levels

47%

65%

55%

51%

Level 1 - 3

36%

43%

35%

26%

All Levels

68%

62%

61

Level 1 - 3

50%

66%

61%

41%

Level 4 and above

65%

69%

62%

66%

65%

83%

62%

All Levels Level 1 - 3

50%

66%

100%

53%

Level 4 and above

60%

65%

79%

65%

73%

73%

70%

All Levels Level 1 - 3

55%

67%

63%

47%

Level 4 and above

72%

75%

75%

76%

Educational Quality

Target

Actual

2012

2012

2011

2010

Self Assessment leading to External Evaluation and Review rating achieved for capability self-assessment **

n/a

n/a

Confident

n/a

Rating following NZQA External Evaluation and Review for educational performance **

n/a

n/a

Confident

n/a

Proportion of teaching staff engaged with CATA qualifications

80%

89%

84%

57%

Proportion of academic staff recognised as Icons and Experts

31%

17%

49%

24%

Proportion of teaching staff engaged to teach in level 1 to 3 programmes with NCALE qualifications

80%

77%

69%

54%

Rating achieved in Student Satisfaction Survey

+5.6

5.83

5.91

5.94

Financial Sustainability

Target

Actual

2012

2012

2011

2010

Confidence rating assessed under the Crown “Financial Performance Assessment Financial Monitoring Framework (FMF) in financial forecasts

High

High

High

High

The risk rating assessed under the Crown “Financial Performance Assessment Financial Monitoring Framework (FMF).

Low

Low

Low

Low

Liquid Funds Ratio

+8.0%

9.30%

33.80%

29.30%

Net Cash flows from Operation

+111%

111.40%

117%

124%

Percentage growth in International fee revenue

+5%

(22%)

14.00%

6.00%

Refer to Appendix 1 for Corporate Performance by Output Classes presented for comparative purposes. Italicised text denotes UCOL results. **Self-assessment and external evaluation and review are performed on a three yearly basis, with the next review occurring in 2014.

94

Actual

2012


STUDENT SERVICES LEVY DISCLOSURE

UCOL charges a compulsory student services fee. This is used to support the delivery of student services as detailed below: Parent Parent 2012 2011 Domestic Student Services Levy

1,502

1,088

TOTAL REVENUE 1,502 1,088 Advocacy and legal advice

43

-

Careers information, advice and guidance

682

787

Counselling services and pastoral care

724

616

Employment information12 - Financial support and advice

308

293

Health services 198 281 Media 93 48 Childcare services 107 215 Clubs and societies

-

-

Sports, recreation and cultural activities

8

-

TOTAL EXPENDITURE 2,163 2,240 NET SURPLUS / (DEFICIT) FOR PERIOD (661) (1,152) 12. Although UCOL assists students with employment information, there are no directly attributable costs that can be reported.

STUDENT PROFILE

Esmee McAuley - Graduate Diploma in Fine Arts Rongotai College Art teacher Esmee McAuley lived the life of a student last year. Studying full time in Whanganui for a Graduate Diploma in Fine Arts at the Quay School of the Arts is a far cry from teaching secondary pupils in Wellington, but Esmee thrived in the art school’s creative environment. “It was a great opportunity to immerse myself in the fine arts and it was wonderful to be surrounded by like-minded people, all engaged in pursuing their passions,” she says. Born in Scotland, the 52 year old has an extensive background in design, art therapy and teaching. “I wanted a practical one year course in which I could learn as much about printmaking as I could,” says Esmee. “I had visited Whanganui UCOL in my position as a teacher of art and was so impressed with the graduate diploma course. I was awarded a study grant from the PPTA which enabled me to have the time away from school to complete the one year course.” “I would love to be able to build a small studio in my garden and start a printmaking centre in Miramar, in Wellington. I would also like to sell a few prints every now and again!”

UCOL Annual Report 2012

95


Diploma in Furniture Design and Making student Todd Cameron.

96


UCOL Annual Report 2012


98


UCOL Annual Report 2012  

Annual Report 2012

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