Te Pūrongo - TWoA Annual Report 2022

Te Wānanga o Aotearoa

Head Office, Te Puna Manaaki

320 Factory Road, Te Awamutu 3840

Pihi nuku, pihi rangi, pihi whārōro

kia mahuri, kia haemata, kia puhikaioreore ka tupu kerekere, ka tupu wanawana

Haumi e hui e tāiki e

Poipoia te kākano kia puāwai

Ko te whakakitenga

Our Vision

He takapau mātauranga, he whānau huarewa

Whānau transformation through education

Ko te uaratanga

Our Mission

Kia angitu te tauira

Tauira success

TE WHAK A PONO NGĀ T U RE

TE A ROHA KOTAHITA NGA

Ngā Uara

Our Values

TE WHAKAPONO

NGĀ TURE

The knowledge that our actions are morally and ethically right and that we are acting in an honourable manner.

The basis of our beliefs and the confidence that what we are doing is right.

TE KOTAHITANGA

Unity amongst iwi and other ethnicities; standing as one.

TE AROHA

Having regard for one another and those for whom we are responsible and to whom we are accountable to.

In Review

81% of tauira reported that their use of te reo Māori has increased

25,705

tauira studied with Te Wānanga o Aotearoa in 2022

12,970 people studied te reo Māori in 2022

14,412

EFTS for 2022

15,633 registered participants in Mahuru Māori

100.4k Listeners each month for Taringa, the popular podcast

136 average days of cultural leave provided each year

89% of tauira reported sharing their new skills and knowledge with whānau, hapū, iwi or community

1,138 full and part-time kaimahi as at 31 December 2022

35

tauira completed He Waka Hiringa Master of Applied Indigenous Studies programme

$10.7 million Te Wānanga o Aotearoa forgoes $10.7 million in fees income to provide fees free te reo Māori and tikanga Māori courses at Levels 3-7

9% of tauira have a disability

56% Māori tauira

48% aged over 40 years

76% female tauira

Vanessa Eparaima

Te Heamana | Chairperson

Ko ngā whakaaro nui ake ki te Wāhi Ngaro mō āna tauwhirotanga ki a

tātou katoa. Māna anō ō tātou ngākau marū i te rirohanga o ō tātou mate e whakamauru, koutou ngā mate tuatini, okioki atu rā. Nō reira koutou ki a koutou o te pō haere mai haere! Tātou ki a tātou o te ao tēnā koutou, tēnā koutou, tēnā rā koutou katoa.

Tā Te Heamana

Chairperson's report

E mihi maioha ana ki a koutou e toro nei ki tā tātou pūrongo ā-tau e matapaki ana i ngā kaupapa me ngā tūwhai āhuaranga kua tutuki i a Te Wānanga o Aotearoa i te tau kua hori nei. Nō mātou katoa o Te Mana Whakahaere te whiwhi ki te tuku i tēnei pūrongo i runga anō i te whakaiti me te whakahīhī Māori.

Ka mihi ake rā ki tō tātou Kaiwhakatere me ana Pouwhakahaere. Mō rātou i arahi i te kaupapa i roto i ngā tūārangaranga me ngā karawhiunga o te wā. Heoi anō mei kore ake ko ngā kaimahi, ngā kaiako, ngā ringa rehe, ngā mātanga e angitu ai te tauira. Nō reira e te iwi ka waiho mā te roanga o te pūrongo nei e whakamahuki. Kāti ake rā i konei tēnā rā koutou katoa.

It is a privilege for me to present Te Pūrongo 2022, the annual report of Te Wānanga o Aotearoa for what has been another year severly impacted by COVID-19.

While the global pandemic continued to cause significant disruptions for our kaimahi, tauira and the organisation as a whole, our experiences, learnings and adaptation over the previous two years have stood us in good stead.

Therefore, it is of great satisfaction that I am able to report, that through the continued dedication of our kaimahi to the kaupapa of Te Wānanga o Aotearoa, and our values of Te Aroha, Te Whakapono, Ngā Ture and Kotahitanga, we were able to overcome adversity to finish the 2022 year in a strong position ready to move forward positively as a Wānanga towards Ko te Whakakitenga – He takapau mātauranga, he whānau huarewa.

As a board, Te Mana Whakahaere welcomed Professor Jacinta Ruru (Raukawa, Ngāti Ranginui and Ngāti Maniapoto), the first Māori law professor in Aotearoa, and also Turi Ngatai (Ngaiterangi, Ngāti Ranginui), our former relationships manager and one-time interim co-chief executive of Te Wānanga o Aotearoa. Both bring their vast knowledge and experience to our discussions and we look forward to their contributions in guiding Te Wānanga o Aotearoa into the future.

Sadly during this year, we also acknowledged the passing of former Te Mana Whakahaere member Tā Noble Thomson

‘Toby’ Curtis (Ngāti Pikiao, Ngāti Rongomai). Moe mai rā e te rangatira. Toby was always open to sharing his experiences and learnings, something that I continue to remain grateful for.

In early 2022, Te Mana Whakahaere had the pleasure of appointing our acting chief executive Nepia Winiata (Ngāti Raukawa) to the role of chief executive/Te Kaiwhakatere.

Te Mana Whakahaere appreciated Nepia’s leadership through the many challenges and disruptions due to COVID19 in recent years, and his deep understanding and passion for Te Wānanga o Aotearoa and its purpose.

Despite the challenges faced during 2022, Te Wānanga o Aotearoa still achieved significant progress.

Our External Evaluation and Review (EER), originally scheduled to be held in 2020 but twice deferred due to COVID-19, was held during 2022 and resulted in Te Wānanga o Aotearoa moving to a Category Two provider and receiving strong positive feedback.

The EER Report summary noted that performance since the last EER has been impressive with self-assessment more comprehensive and leading to positive improvements. In addition to this, other areas that require further attention are being managed effectively.

This has been an area of intense focus for many of our kaimahi and I acknowledge their commitment, effort and expertise in achieving this excellent result.

Another area of importance, is the work we have been doing with the Crown, Te Wānanga o Raukawa and Te Whare Wānanga o Awanuiārangi on the Wānanga Sector Framework Proposal, which is considering legislative changes to better recognise:

› the individual and collective mana and tino rangatiratanga of the Wānanga,

› the Tiriti o Waitangi/Treaty of Waitangi-based relationship between the Wānanga and the Crown, and

› the unique role the Wānanga play in the tertiary education system.

This saw Te Wānanga o Aotearoa senior leaders conducting presentations across the motu and encouraging feedback from kaimahi before finalising our submission on the proposed changes. Our submissions favoured the option which involves establishing an enabling Wānanga sector framework within the Education and Training Act 2020. This allows Wānanga to continue to be considered a Tertiary Education Institution - with specific purpose, function and governance arrangements agreed between the Wānanga and the Government - or to become a new type of statutory entity which keeps its focus on education provision but has greater independence in terms of its administrative arrangements, including accountability to iwi, thereby increasing iwi responsibility.

A review of our 2022-2024 investment plan has seen us reset out view of our outcomes framework, Te Haunganui, in the context of Te Tiriti.

This re-alignment supports the three over-arching aims of our long-term plan, Te Pae Tawhiti, to:

› offer a relevant and sustainable programme mix

› put our tauira at the centre › ensure sustainability through educational excellence.

The annual review of our mix of provision also supports these aims and while our first priority remains the advancement of mātauranga Māori, in 2022 we began the process of planning to grow our vocational provision.

Despite these advances, the global pandemic continued to be a significant factor throughout 2022, but particularly during the peak enrolment period for Semester A, where we saw a decline in enrolments, with our final result falling well short of our EFTS target, with 14,412 of 17,984 allocated EFTS, or 80.1% of the EFTS funding.

The impacts were also felt in other areas, related to the Government public health measures, how Te Mana Whakahaere remained focussed on providing an āhuru mōwai (safe space) for all.

Therefore, after significant consultation with kaimahi and a comprehensive risk assessment, Te Mana Whakahaere approved an Outbreak Infection and Transmission Reduction Tikanga Whakahaere (policy), requiring all kaimahi, tauira and manuhiri to be vaccinated against COVID-19 and to move all our teaching to an online environment for Semester A 2022.

With the above challenges in mind, we are therefore happy to report a surplus of $3.7 million, or 2.5% of total revenue, with this figure only achieved through significant cost savings and a dedicated plan to develop an online option for our He Papa Reo programme, enabling us to support and enrol a significant number of waitlisted tauira towards the end of the year, who in turn took steps towards the achievement of their aspirations.

It is pleasing to acknowledge that a new approach to our marketing campaign and recruitment processes in late 2022 led to a significant growth in enrolments for 2023, with around 50% of our EFTs target achieved before the end of 2022, our best ever result and one which gives us increased confidence about the year ahead.

In closing, I wish to acknowledge the work of my fellow board members, Nepia and our Pou Whakahaere. I am deeply honoured to work alongside you, to learn with you and from you, and to experience the brilliance of Whānau Transformation in action.

To all our kaimahi at Te Wānanga o Aotearoa, I thank you on behalf of Te Mana Whakahaere for your continued efforts under trying circumstances, for upholding Ngā Uara/Our values in all that you do and all that you are to each other and the tauira and whānau that we serve. Thank you.

Vanessa Eparaima Te Heamana | Chairperson

Te Mana Whakahaere Council

Bryan Hemi Te Heamana Tuarua Deputy Chairperson MBA, BE Ngāti Kahungunu, Ngāti Koata, Samoan

Vanessa Eparaima MNZM Te Heamana Chairperson Raukawa, Ngāti Tūwharetoa

BA, BCom, CA

Ngāti Kahu, Te Rarawa, Te Paatu

Mema Whakatūria

Ministerial Appointment

DipJour

Raukawa, Ngāti Maniapoto

Raukawa, Ngāti Ranginui, Ngāti Maniapoto

LLB (Hons), BA (Hons), LLM, MInstD

Ngāti Mahuta, Ngāti Whakaue

Mema Whakatūria

Ministerial Appointment

BMS, FCA Raukawa, Ngāti Ranginui

Turi Ngatai

Mema Whakatūria

Ministerial Appointment

Ngaiterangi, Ngāti Ranginui

Robert Gabel Mema | Member

Jon Stokes

Jacinta Ruru Mema | Member

Katie Bhreatnach Mema | Member

Steve Ruru

Nepia Winiata

Kaiwhakatere Chief Executive

Ka takina taku manawa ora

He manawa ora ki a Rangi e tū nei

He manawa ora ki a Papa e takoto nei

He manawa ora ki tēnei huihuinga

He koronga nōku kia tauwhirotia ēnei ringaringa, ēnei waewae, ēnei whakatumanawa o

Te Wānanga o Aotearoa

Rukutia ki te kotahitanga

Tāwhia ki te aroha mau roa

Purutia ngā iho taketake o te kaupapa kia ū, kia whena, kia ora

Kia puta ki te whai ao ki te ao mārama!

Tūturu whakamaua kia tina!

Tina! Haumi e! Hui e, taiki e!

Tā Te Kaiwhakatere

Chief Executive's report

E huri tō titiro ki ngā puke o Tautoru, ka huri ki reira ki te kāmaka o te rangi e tauwhirotia nei a Kīngi Tūheitia Pōtatau Te Wherowhero Te Tuawhitu e noho ana i te ahurewa tapu o ōna mātua, o ōna tūpuna, o tōna whaea – ko Te Arikinui Te Atairangikāhu. Ko ia ki te rangi, ko Tūheitia ki te whenua ka hīria, ka hīria, ka hīria te ingoa.

He poroporoaki tēnei mō koutou kia whakatakina atu ō koutou mātua i te mate. Te hunga nā rātou i whakatō iho ngā rākau nei a Puna Te Aroha a Māturu Roimata, me Te Rangimarie, ki runga ki ngā iwi mahuetanga iho. He ōhākī ka hora ki runga ki ngā iwi i mau ai te rongotaketake, haere ngā mate.

E ngā kai pupuri o ngā iho taketake o tā tātou kaupapa o tā tātou wānanga tēnā rā koutou katoa. He tau tēnei kua wero nei i te ngākau o tēnā, o tēnā ō tātou, kua whakamātauria hoki tō tātou wānanga e Ngā Taero a Kupe. He koanga ngākau ki te kite i tō ngākau whakaū me te ngākau whakapuke e manaaki tonu rā i ngā tauira puta noa. Hei te roanga ake o ngā kōrero i te pūrongo nei aua kaupapa e whakamāhuki heoi anō ka whakatepe ake taku mihi ki a koutou ki te kōrero nei: Whāia te kotahitanga, whakapono, ngā ture – engari ko te mea nui ko te aroha.

Following my first full year as chief executive of Te Wānanga o Aotearoa, I am extremely proud to present our annual report, Te Pūrongo 2022.

As an organisation we have made significant progress on several fronts while overcoming the many challenges presented by the COVID-19 global pandemic.

Most pleasing was the outcome of our much-delayed External Evaluation Review (EER), which saw evaluators expressing high levels of confidence in our organisation and supporting a move to a Category Two tertiary education organisation.

This result has and will continue to have positive flow-on effects for Te Wānanga o Aotearoa, enabling us to better provide educational opportunities rich in mātauranga Māori to our communities throughout Aotearoa while also enabling us to continue planning towards growing our presence in the vocational space.

Among the most significant challenges we have faced over the last year has been the impact of our Outbreak Infection and Transmission Reduction Tikanga Whakahaere (policy), which was introduced late in 2021 and required all kaimahi, tauira and manuhiri to our sites to be vaccinated against COVID-19. This policy – in line with Government public health measures - placed significant pressures on both our kaimahi and our tauira, particularly during our Semester A 2022 enrolment period.

The impact of this policy ultimately contributed to the significant shortfall in enrolments for 2022, with only 80.1% of funded EFTs achieved.

Despite these additional barriers, tauira still indicated their desire to learn while not being able to enter our campuses, so we made a decision to develop an online offering of our popular Level 1 He Papa Reo programme, enabling us to enrol a significant number of wait-listed tauira to the programme. This enabled us to somewhat offset the shortfall in enrolments.

This reflects our ability to act quickly and decisively, something we have become accustomed to over the last two years where the pandemic has seen us regularly reacting to rapidly changing situations, often at extremely short notice.

The pandemic also influenced our graduate numbers, and while we saw an increase in graduates from our Level 1-3 programmes, graduate numbers are still well below pre-pandemic levels, leading to further impacts on other education performance indicators.

We will continue to innovate and develop our educational experience over the next plan period, including further development of our programme offering along with refinement of our delivery model to better fit with the needs of our tauira.

Despite these significant challenges faced during 2022, it is pleasing to report improved outcomes for our tauira in areas such as cultural identity and career prospects.

Our continued focus on providing educational opportunities accessible to all saw us again provide in excess of $10million in fees income forgone through our offering of fees-free programmes across our subject areas, but predominantly in the area of te reo Māori and

tikanga Māori. This represents a significant investment in the revitalisation of te reo me ōna tikanga throughout Aotearoa.

Te Wānanga o Aotearoa also contributes to bringing life to te ao Māori though cultural initiatives such as Mahuru Māori, which sees participants speak as much te reo as possible during the month of Mahuru (September).

In 2022, while our Mahuru Māori campaign had a predominantly internal promotional focus, more than 15,000 people from across the motu registered to take part, an increase of more than 1500 from the previous year, indicating the continued growth of interest in learning and using te reo Māori.

The popular bi-lingual podcast Taringa – which received more funding from Te Māngai Pāho and NZ On Air than 2021 – also continues to grow its audience, with nearly 850,000 downloads in 2022, adding to the 2.6 million overall since its launch in 2017.

Our Centre of Research Excellence, Te Manawahoukura, continues to grow its capability during 2022 and delivered a series of workshops where leading Māori researchers and scholars shared their knowledge with our kaiako and kaimahi. These workshops highlighted the importance of incorporating Kaupapa Māori research into our mahi and will develop further in the coming years, with the appointment of the inaugural director of Te Manawahoukura expected in early 2023, following earlier senior appointments late in 2022.

An increased emphasis on processing our enrolments and a refreshed approach to our marketing campaigns has already shown significant benefits, with more than half our 2023 equivalent full time students (EFTs) target achieved before the end of 2022, our best ever result.

During the latter part of the year, our senior leadership team have been visiting campuses and sites across the motu and we have been consistently impressed by the dedication of our kaimahi to Te Wānanga o Aotearoa, under what can only be described as trying circumstances.

While the global pandemic continues to compel us to consider new and different ways of doing things, we remain true to the kaupapa of the organisation

and focussed on providing high quality educational experiences, rich in mātauranga Māori for all New Zealanders.

Our contribution to the revitalisation of te reo Māori over a significant period of time saw Te Wānanga o Aotearoa – along with Te Wānanga o Raukawa and Te Whare Wānanga o Awanuiārangi - recognised at the Ngā Kaka Kura o te Reo Awards in 2022 and encourages us to remain focussed on our core purpose.

I also recognise the support from Te Mana Whakahaere chair Vanessa Eparaima and her fellow board members during what continues to be a challenging period of our history.

Most significantly, I cannot emphasise enough that it is our kaimahi that enable Te Wānanga o Aotearoa to continue its role as a leading provider of te reo me ōna tikanga education in Aotearoa and I recognise them all.

Nepia Winiata Kaiwhakatere | Chief Executive Officer

Ngā Pouwhakahaere

Leadership Team

Joe Valenti

Pouwhakahaere Tahua

Deputy Chief Executive (Finance & Operations)

FCPA, BBus

Shireen Maged

Pouwhakahaere Ako

Deputy Chief Executive (Teaching & Learning)

PhD, MEd, BEd, BA, HDE

Adam McWilliams

Pouwhakahaere Taupārongo

Deputy Chief Executive (Digital & Information)

MBA, PfMP, PMP, CKM

Leon Takimoana

Pouwhakahaere Whanake

Deputy Chief Executive (People & Culture)

GradDipPsyc. BSocSci (Honours)

Professional Member of HRINZ

Ngāpuhi, Ngāti Kawa, Ngāri

Hine, Ngāti Rāhiri

Glenn McKay

Pouwhakahaere Whakatairanga

Deputy Chief Executive (Purpose and Relationsh ips)

MBA with distinction

Te Arawa

Lindsay Baxter

Pouwhakahaere Taumatua

Deputy Chief Executive (Wānanga Services)

DipCPM, BIT, PMP, MEd (Dist)

“The things that I have learned here at Te Wānanga o Aotearoa with a brush and canvas, the teaching behind it you can apply anywhere. The stuff I learnt at architecture school, this stuff supersedes all of that.”

Architecture by day, Toi Māori by night

Alex Heperi | Tauira

Alex Heperi spends her days working as a senior architectural graduate working in the architectural industry but by night she’s completing her studies towards the Maunga Kura Toi Bachelor of Māori Art degree at Te Wānanga o Aotearoa.

“My job is stressful, I did this for some creative relief,” she says.

Having studied architecture and interior design at Victoria University and taking a Māori paper at Massey University, Alex is well aware of the intense workload that comes with tertiary study.

She says studying architecture opened her eyes to different sculpture and shapes and helped her to see what’s possible.

“The things that I have learned here at Te Wānanga o Aotearoa with a brush and canvas, the teaching behind it you can apply anywhere. The stuff I learnt at architecture school, this stuff supersedes all of that,” she says.

“We did the wharekai at Pukemokimoki Marae, that was a pretty cool experience. I really like narrative-based designs, I guess I like interpreting stories to become a visual representation. Our noho were at the marae, we were there every weekend and I really liked the whakawhanaungatanga, everything about it was great. Learning here is more than curriculum, it's value based where you get whakapapa, tikanga all in one."

Last year she got to study with her mother and says it was great to spend that time together.

“I’m the youngest in my class, it’s cool I have a lot of new aunties.”

She says learning toi has been challenging but will ultimately help her architecture.

“I like doing things until they don’t scare me anymore,” she says.

“I want to get comfortable with this so I can go on to the next thing. This is helping my architecture work a lot in terms of the creative process and I’m interested to see how these processes and fundamentals can be applied within architecture, interior design and urban design. It’s a new space and now people have to co-design and start thinking about applying the same weight to design that they do to infrastructure when applying any Māori imagery or thinking about the whakapapa behind spaces.”

Alex also works in public spaces with council and iwi toi using traditional design in a contemporary way, but the placement of the designs now has more meaning.

“For example, we wouldn’t walk over kōwhaiwhai, but we would walk over whāriki patterns, so knowing the difference helps this mahi.”

Alex is currently showcasing tāniko patterns inspired by her great grandmother in the Te Kahu o te Ao collection, which pays homage to her ancestors and whakapapa.

“I saw the Mana Ora course and it kind of resonated with what I was doing. Something in me said “learn this, right now, these are the values you’ll need to incorporate into your business from day one.”

Mana Ora from the Ground Up

James Prier is a product designer digging into history to reimagine traditional tools using modern materials. Ensuring he does so while being mindful of tikanga and te aō Māori, he reignited his inner student and completed the Mana Ora business course.

Jamie says the business programme embedded in kaupapa Māori and enriched with tikanga and reo content, changed the way he sees design.

“I’ve always used the approach of trying to put yourself in the shoes of the person you’re designing for. This project has been more about actually engaging with the community you’re designing for, not shying away from it as being a secondary part of design, but instead being a primary driver for the way you design a product,” he says.

The primary driver in this case were kohanga and playcentres as well as Iwi and marae groups throughout the country. Jamie and business partner Dr Johnson Witihera set out to engage with these varied communities and produce something uniquely Aotearoa.

The brainchild of Johnson from observation at his children's kohanga where only spades, trowels and the usual gardening tools were in play, Paku tools are essentially modern versions of traditional Māori gardening implements.

Jamie conducted intense rangahau (research) into traditional tools and how they were used, investigating different materials they could be made from today and engineered version after version to come up with the best. It is during this process that he realised he needed to step back and relaunch into learning through another lens.

“I didnt want to attempt the project without learning first. When you start doing the research you find out how much you don’t know... and you just keep digging and digging. Instead of leaning

on my Māori friends so much for information, I decided to learn for myself,” he says.

“I saw the Mana Ora course and it kind of resonated with what I was doing. Something in me said “learn this, right now, these are the values you’ll need to incorporate into your business from day one,” he describes.

Jamie said the business side of the lessons were well presented and seamless, but found the lessons on how to think about tikanga in a business context most valuable.

“It helped me have meaningful conversations with people. I was prompted to go out and interact with our collaborators in the right way. I was able to use the right words, I had the context and some knowledge, and could ask the right questions,” Jamie says.

Jamie understands the need to bring in an Aotearoa existence to think about things differently. He believes this is through holding up a lens to view kaupapa Māori values in everyday life and acting on them.

“When we are challenged to integrate and apply these values into business tasks it makes you look at things like planning, management, resourcing and that sort of stuff a little differently – but the effects on outcomes by applying those values can make a big difference,” he says.

It has been a journey of discovery for this tauira who says the home-based learning model was a perfect fit for his busy schedule. Sometimes the HBL acronym stood more for ‘Holiday-Based Learning’ as he would often take the kete of mahi on family trips instead of a holiday book. Jamie plans to be back at Te Wānanga o Aotearoa soon to continue learning reo and exploring tikanga.

James Prier | Tauira

“I was a stay-at-home mum, with two kids. I had worked in a café but the gym is way different to that. I got picked for the role just two days after finishing my study.”

Wānanga programme helps young mum gain employment

After completing the Certificate in Tākaro, Sport and Exercise, Ellerose Vanderaa secured a job as assistant manager at Jetts Whakatāne.

Before completing the Level 4 certificate at the end of 2022, Ellerose had no prior work experience in the gym or fitness industry.

“I was a stay-at-home mum, with two kids. I had worked in a café but the gym is way different to that. I got picked for the role just two days after finishing my study.”

As well as a lack of industry experience, Ellerose also struggled with confidence when it came to going to the gym and workout techniques and exercises.

But after 38 weeks of study and the ongoing support from her kaiako (tutor), Lynette Ngaheu, she had a wealth of knowledge and the confidence to pass her learning on to others.

“I want to help people who are in the position that I was in when I first started my study. I want to make sure they feel confident and comfortable from the very start until the very finish,” said 28-year-old Ellerose.

Not long after landing the role as assistant manager, she also got a job as a personal trainer at Jetts.

Ellerose has been happy with what she was able to learn in a year, all while raising her two young children and gaining employment.

“I loved the programme and my kaiako. I learnt so many new things and workouts that I never knew about. If you want to do something good with your life then studying is a good way to go.”

Although fulltime study, while raising a family was a challenge at times, Ellerose said it was still made possible at Te Wānanga o Aotearoa because of the effort put in by the kaiako.

“My kaiako was supportive with everything that I had going on, both personal and study life. Your kaiako are always there to help you.”

Ellerose Vanderaa | Tauira

Ngā Kī Taurangi

Te reo Māori and mātauranga Māori are taonga - Wānanga are given life by these taonga, and in the reciprocal nature of the Māori world, Wānanga also serve to give life to te reo and mātauranga

Te Huanganui

Outcomes Framework

Te Huanganui is the Outcomes Framework for Te Wānanga o Aotearoa. The title refers to the significant benefits and advantages that result from our work, in essence, the fruits of our labour.

Te Huanganui weaves a relationship between the strategic objectives of Te Wānanga o Aotearoa and our unique contribution to the people of this nation and more broadly, the nation itself. It includes our outputs, their impacts and the ultimate outcomes of our mahi.

This is the first year of reporting against the Te Wānanga o Aotearoa Investment Plan 20222024 that was approved by the Tertiary Education Commission for one year.

For our 2022-2024 Investment Plan we sought to ground Te Huanganui in the context of our relationship with the Crown. To achieve this we have used the WAI 718 Waitangi Tribunal Report which formally relates the three principles of Te Tiriti o Waitangi, to the Government’s relationship with, and responsibility to, Wānanga.

The following diagram provides a high-level representation of Te Huanganui as approved in the Te Wānanga o Aotearoa Investment Plan 2022-2024.

Please note, the quotes used in the Statement of Service Performance section are from The Wānanga Capital Establishment Report, WAI 718, Waitangi Tribunal Report 1999.

Protection

Wānanga and mātauranga Māori are advanced

Our Outcomes

Participation

Everyone has access to āhuatanga Māori educational opportunities

Partnership

We work together to achieve outcomes in bi-cultural Aotearoa

Ngā Panga Our Impact

1 2 3

Offering a relevant and sustainable programme mix

› We have a strong footprint in the new education and training system

› We are the driving force in bi-cultural Aotearoa

› We are building a tradition of rangahau that advances mātauranga Māori

Putting our tauira at the centre

› Tauira have a holistic, transformative āhuatanga Māori educational experience

› We break down barriers to provide accessible education opportunities

Ensuring sustainability through educational excellence

› Tauira achieve valued outcomes with us

› We are continuously enhancing Ako teaching and learning

› We are sustainable

Ngā Putanga

Protection

Wānanga and mātauranga

Māori are advanced

1

Offering a relevant and sustainable programme mix

› We have a strong footprint in the new education and training system

› We are the driving force in bi-cultural Aotearoa

› We are building a tradition of rangahau that advances mātauranga Māori

‘We find that the Māori process of teaching and learning known as wānanga is a taonga that is inextricably linked with te reo Māori and mātauranga Māori.’

Performance measures

1.1 We have a strong footprint in the new education and training system

1.1.1 The mix of provision is reviewed annually to ensure quality, relevance and sustainability of programmes

1.1.2 New programmes and educational initiatives

During the year we made significant progress towards Te Pae Tawhiti strategic objective one - Offering a relevant and sustainable programme mix.

As part of our annual review we held several workshops to develop, consult and agree on a five-year plan for our mix of provision and to grow our footprint in the newly reformed education and training system.

While our first priority remains the advancement of mātauranga Māori, the new plan also includes three specific areas where we will enhance our vocational provision. Internal planning continued through to the end of 2022 to ensure that all new programmes undergo a rigorous development process that includes meaningful stakeholder engagement. 2023 will see further development in these areas.

In addition to this long-term planning, 13 new programmes and educational initiatives were launched in 2022. These included Manahautū with a Police focus, construction, forestry, business, and cultural competency programmes.

1.2 We are the driving force in bi-cultural New Zealand

1.2.1 We forego tauira fee income to provide accessible language and culture programmes

1.2.2 Partner in major cultural initiatives

Fees foregone is calculated by a base fee for tauira studying fee-free language and cultural programmes with an annual adjustment in accordance with the Annual Maximum Fee Movement published in the New Zealand Gazette.

Te Wānanga o Aotearoa drives bi-culturalism in New Zealand by providing accessible, fee-free language and cultural programmes, and by using our capability and resources to support an ecosystem of events and activities nationwide. During the year our contribution was recognised with a Ngā Kākā Kura o te Reo Award for helping spearhead the revitalisation of te reo Māori over the last 50 years.

In 2022 9,545 tauira (6,055 EFTS) studied in fee-free te reo and tikanga programmes at Te Wānanga o Aotearoa. Due to pandemic restrictions in the early part of the year, there were fewer tauira than 2021. However, later in the year thousands of waitlisted tauira were able to begin their haerenga reo with our online Level 1 Papa Reo programme. This, along with an AMFM increase, saw the target exceeded with $10.7 million in fees income forgone.

Furthermore, Te Wānanga o Aotearoa continues to support cultural initiatives that bring life to te ao Māori. In 2022 we supported five major cultural initiatives, including our continued association as the naming sponsor of the Waka Ama Sprint Nationals at Lake Karāpiro. While this major event was unable to go ahead due to COVID-19, we were able to support other regional waka ama events throughout the year.

Over the last seven years our kaimahi have been instrumental in growing our knowledge of the customs and practices surrounding Matariki. In 2022 we launched a website dedicated to this kaupapa and provided support for events and activities that included the first National Matariki Hautapu Ceremony at Te Papa, where a live panel discussion was broadcast to 17,000 viewers on Facebook.

In addition to other initiatives to support Te Wiki o Te Reo Māori, Mahuru Māori has become a mainstay of the week with 15,633 registered participants committing to speak te reo Māori for a day, a week or the whole month of September.

Another Te Wānanga o Aotearoa initiative, the bi-lingual Taringa podcast, continues to grow in popularity with more than 840,000 downloads throughout the year.

Rangahau is grounded in te ao Māori and holds a deeper meaning than the western notion of research. It is Māori enquiry - not discovery. It is innovative, it validates Māori indigeneity and does not have to be validated externally. Please note that the result for research degree completions is interim as it is subject to validation by the TEC following submission of the final single data return in April 2023.

Te Wānanga o Aotearoa is continuing to build a tradition of rangahau that contributes to the advancement of mātauranga Māori.

Over the last two years there has been a shift in focus towards building rangahau capability through our new Centre of Rangahau Excellence - Te Manawahoukura. This initiative, alongside the impact of the pandemic, has directly contributed to the three rangahau targets not being achieved.

In 2022 we saw an ongoing decline in Individual Rangahau Plans (IRP) with only 32% (14 out of 44) of degree-level kaiako with an IRP. There were no major rangahau projects undertaken, consequently no external research income was secured. And despite a strong recovery in completions for our flagship Masters programme - He Waka Hiringa (Master of Applied Indigenous Knowledge), the result was just short of the target.

These results should be considered in the context of the establishment phase of Te Manawahoukura. Key kaimahi have now been appointed, a physical presence at our Raroera Campus in Kirikiriroa secured, and the first major initiative to expose kaimahi to external Māori researchers and scholars through a series of workshops was a great success.

Momentum is building as Te Manawahoukura provides a central coordination point for rangahau, delivers initiatives to develop rangahau capability and provides a support network for Te Wānanga o Aotearoa kaimahi undertaking rangahau.

Ngā Putanga

Participation

Everyone has access to āhuatanga Māori educational opportunities

2

Putting our tauira at the centre

› Tauira have a holistic, transformative āhuatanga Māori educational experience

› We break down barriers to provide accessible educaton opportunities

‘Wānanga have had the effect of increasing the participation in tertiary education of Māori, particularly those people who would not normally participate, and that Wānanga have the power to create further substantial increases in Māori participation.’

Performance measures

This result is taken from the annual Graduate Survey that is used to track graduate outcomes and the broader holistic impact of studying with Te Wānanga o Aotearoa. The 2022 survey was sent to all tauira (14,083) that graduated in 2021 and 26% (3,631) of them took the opportunity to respond. The Graduate Survey has no margin of error.

Te Wānanga o Aotearoa seeks to positively impact tauira through a holistic approach to teaching and learning. Regardless of what they study, our intention is that tauira leave us confident in who they are, where they have come from and with the skills and knowledge they need to succeed in the future.

Across the board our holistic impact measures either improved or remained steady in 2022. At 77% the result for improvement in cultural identity exceeded the target and was a 2% increase on 2021. Reflecting the ongoing impact of the pandemic, the result for improvement in health and wellbeing missed the target but remained steady at 70%. The result for improvement in career prospects held up well, meeting the target and showing a 1% increase on 2021.

In the same graduate survey, Te Wānanga o Aotearoa also achieved a tauira satisfaction result of 87% (89% in 2021).

In order to keep shifting the dial on holistic graduate outcomes we will continue to innovate our āhuatanga Māori educational experience over the next plan period. This will include work on our programme offering as well as adapting our delivery model to better fit with tauira wants and needs.

2.2 We break down barriers to provide accessible educational opportunities for all

2.2.1 Expected graduates at Level 1-3 Non-Māori, non-Pasifika graduates

2.2.2 Proportion of total SAC-eligible EFTS enrolled at Level 1-3 Non-Māori, non-Pasifika

2.2.3 Proportion of total SAC-eligible EFTS enrolled at Level 4-7 (non-degree) Non-Māori, non-Pasifika

2.2.4 Proportion of total SAC-eligible EFTS enrolled at Level 7 (degree) Non-Māori, non-Pasifika

2.2.5 Proportion of total SAC-eligible EFTS enrolled at Level 8-10 Non-Māori, non-Pasifika

This section provides the results for performance commitments negotiated with TEC for 2022-2024. Please note, the 2022 results are interim as they are subject to validation by the TEC following submission of the final single data return in April 2023. The 2021 results have been updated to final.

Graduate numbers recovered slightly in 2022 with 12,255 graduates at Level 1-3, an increase of 2,482 graduates on 2021. Despite this recovery, graduate numbers are still well below pre-pandemic levels and this has a consequential impact on other education performance indicators.

The proportion of enrolled EFTS by ethnicity grouping has shifted with the overall reduction in EFTS. At Level 1-3 we exceeded the target for the proportion of tauira Māori by 5% and Pasifika tauira by 1%, but the target for non-Māori, non-Pasifika was not met.

With the majority of our programme provision at sub-degree level, the results for Level 4-7 exceeded the targets across all ethnicity groupings and returned a 1% increase in the proportion of Māori and Pasifika EFTS.

Disappointingly, the results for the degree programmes showed a reduction in the proportion of Māori EFTS at Level 7 (degree). This target was not achieved and was 5% lower than the 2021 result.

Te Wānanga o Aotearoa only has one programme at Level 8-10, the He Waka Hiringa (Master of Applied Indigenous Knowledge). He Waka Hiringa has a small cohort of approximately 40 tauira therefore the ethnicity of one tauira has a big impact on the results for that level grouping.

Ngā Putanga

Partnership

We work together to achieve outcomes in bi-cultural Aotearoa

3

Ensuring sustainability through educational excellence

› Tauira achieve valued outcomes with us

› We are continuously enhancing Ako teaching and learning

› We are sustainable

‘Biculturalism is an integral part of the overall Treaty partnership. It involves both cultures existing side by side in New Zealand, each enriching and informing the other.’

Performance measures

3.1 Tauira achieve valued outcomes with us

3.1.1 First year retention rate for tauira at Level 4-7 (non-degree) Non-Māori, non-Pasifika graduates

3.1.2 First year retention rate for tauira at Level 7 degree NonMāori, non-Pasifika

3.1.3 Course completion rate for tauira at Level 1-10 Non-Māori, non-Pasifika

3.1.4 Progression rate for tauira at Level 1-3 Non-Māori, nonPasifika

This section provides the results for performance commitments negotiated with TEC for 2022-2024. Please note, the 2022 results are interim as they are subject to validation by the TEC following submission of the final single data return in April 2023. The 2021 results have been updated to final.

The targets and results for first year retention at Level 4-7 are zero as Te Wānanga o Aotearoa has no multi-year programmes at these levels. The remaining education performance results speak to the unprecedented internal and external challenges faced by our tauira in completing their studies during a global pandemic.

Although the Level 7 rates for retention declined on the previous year, the retention rate for two ethnicity groupings exceeded the target of 70%. Unfortunately the result for tauira Māori missed the target by 9%.

Understandably (given vaccination mandates and online learning for much of the year) but most disappointing for Te Wānanga o Aotearoa, is the ongoing decline in course completion rates that has widened the achievement gap for both Māori and Pasifika tauira. However, the progression rates for Māori were 4% above the target, with the two other ethnicities missing the target. It is pleasing to see Māori continue to progress at higher rates for this measure.

Despite the challenges facing our organisation and our tauira, we remain committed to their success.

Over the next three years we will seek to embed our ground-breaking tauira support model - Te Ata Hāpara - across the tauira journey to ensure that at-risk tauira are provided with targeted support. It is this programme, along with a culture of responsiveness and continuous improvement, that will help us close this achievement gap.

3.2 We are continuously enhancing Ako teaching and learning

3.2.1 NZQA is confident in education performance and assessment practices

3.2.2 Kaiako have the minimum quality requirements (subject and teaching qualifications)

This indicator measures the proportion of kaiako that meet the minimum qualification requirements for their role. Minimum role requirements include teaching and subject matter qualifications. The results for 2021 are N/A because we only began collecting the data in 2022.

The External Evaluation and Review (EER), originally scheduled for late 2020, was completed in March 2022. In August a result of ‘confident’ in our educational performance and ‘confident’ in our capability in self-assessment was confirmed.

Although this result missed the target, the EER Report summary noted that our performance since the last EER has been impressive, with self-assessment more comprehensive and leading to positive improvements. In addition to this, other areas that require further attention are being managed effectively.

The report confirmed that tauira are realising their potential to the fullest by not only gaining skills, knowledge and qualifications but also (re)connecting to their identity as Māori; and reconnecting to education in a safe and empowering way. The report went on to say that our approach also resonates with non-Māori, who also achieve well with us.

After three years of disruptions caused by the pandemic the report goes on to say that tauira experience quality learning in a safe and supportive learning context. It noted that shifting to online learning was challenging for some programmes and tauira, however, the significant time, resources and training invested into the online environment has ensured that teaching and learning continued authentically and safely.

This overwhelmingly positive EER was a testament to our kaiako that stand at the forefront of our unique āhuatanga Māori educational experience.

Te Ara Kounga - the Kaiako Capability Strategy - was developed to provide common goals and objectives that support, promote, and enhance quality ako practice. A core focus for Te Ara Kounga is ensuring that we work towards 100% of kaiako having the minimum requirements for their role.

Although the 2022 result of 69% failed to achieve the target, this should be considered in the context of the dominance of mātauranga Māori provision where it is common for kaiako with subject matter expertise and experience not to have a formal teaching qualification.

Over the year significant work was undertaken to strengthen professional development planning and reporting to ensure that we are making progress towards enhancing quality standards.

3.3 We are sustainable

and our tauira continued to be negatively impacted by the pandemic in 2022.

During the peak enrolment period for Semester A, an Omicron outbreak, online learning fatigue, the Vaccination Tikanga Whakahaere and other associated issues combined to severely impact enrolments across the board. The final result of 14,399 of 17,984 EFTS or 80.1%, fell well short of the funded EFTS target.

Despite the reduction in EFTS, we managed to achieve a surplus of $3.5 million or 2.4% of total revenue. This was achieved through comprehensive planning and other activities during the year to make cost savings wherever possible and a major initiative to enrol significant numbers of previously waitlisted Papa Reo tauira.

Investment Plan EFTS 2022-2024

At the time of publishing this report the SDR was showing total EFTS as 14,412, however the total EFTS numbers in the following tables may differ due to rounding.

By Whare

Cost of Service Statement

For the year ending 31 December 2022

For the 2022-2024 Investment Plan the Cost of Service for each outcome has been allocated in accordance with the following methodology:

› Protection covers all programmes and activity to protect and advance Wānanga and mātauranga Māori.

› Participation covers all programmes and activity that provide tauira with the opportunity to participate in tertiary education regardless of age, ethnicity or academic ability.

› Partnership covers all over programmes and activity where we partner with others to achieve specific educational outcomes.

The Cost of Service statements include budget figures from the 2022-2024 Investment Plan that was approved on 4 August 2021, and the annual budget that was approved on 3 November 2021. These budgets differ as actual Investment Plan funding is approved on an annual basis and is subject to change.

The 2022 Cost of Service results reflect the significant reduction in SAC revenue that was met by a significant reduction in expenditure.

Tauira Profile

The following tables provide a five year overview of tauira demographics.

Tauira

EFTS

Tauira Ethnicity

Please note that these figures may add up to more than 100% as tauira identify with more than one ethnicity

Tauira Age

Equal Opportunities

Te Wānanga o Aotearoa is committed to providing open, accessible and inclusive study and employment opportunities for all. This commitment is embedded in Ngā Uara, our values that are considered as part of our policies and practices and everything we do as an organisation.

Equal Educational Opportunities

Te Wānanga o Aotearoa has a diverse tauira population unlike any other New Zealand tertiary education organisation. Of 25,705 tauira:

› 56% are Māori, 47% European, 10% Pasifika, 10% Asian;

› 76% are female and 23% male;

› 48% are over 40 years of age;

› 13% had no secondary qualifications and 34% had no prior tertiary qualification; and

› 9% have a disability.

Despite the challenges posed by such a diverse student body, we are determined to eliminate barriers to tauira success and boost achievement for Māori and Pasifika tauira.

Our fees-free policy for the majority of sub-degree qualifications is the key component of maintaining accessibility for tauira who would not normally have the financial means to undertake tertiary studies.

Part time, home-based and online learning options provide tauira with the ability to upskill without interrupting employment or other responsibilities.

We also take pride in a values-based educational experience that connects all tauira with their identity so they can succeed in cultural, social and economic contexts.

Equal Employment Opportunities

Te Wānanga o Aotearoa is also committed to equal opportunities for our kaimahi. In 2022 there were 1,138 full and part-time kaimahi, including a high proportion of female (71%) and Māori (64%) kaimahi.

Statement of Service Performance Policies and Critical Judgements and Assumptions

Reporting entity

Te Wānanga o Aotearoa is a Tertiary Education Institution domiciled in New Zealand and is governed by the Education and Training Act 2020 and the Crown Entities Act 2004.

The primary purpose of Te Wānanga o Aotearoa is to provide tertiary education and it has designated itself as a public sector public benefit entity for the purposes of financial reporting.

The Statement of Service Performance of Te Wānanga o Aotearoa is for the year ended 31 December 2022. The Statement was authorised for issue by Te Mana Whakahaere on 3 May 2023.

Basis of preparation

Statement of compliance

The Statement of Service Performance of Te Wānanga o Aotearoa has been prepared in accordance with the requirements of the Education and Training Act 2020 and the Crown Entities Act 2004, which include the requirements to comply with New Zealand generally accepted accounting practice (NZ GAAP).

The Statement of Service Performance has been prepared in accordance with Tier 1 PBE financial reporting standards, which have been applied consistently throughout the period, and complies with PBE financial reporting standards.

Critical reporting judgements, estimates and assumptions

In preparing the Statement of Service Performance, Te Wānanga o Aotearoa has made judgements on the application of reporting standards and has made estimates and assumptions concerning the future. The estimates and assumptions may differ from subsequent actual results. The main judgements, estimates and assumptions are discussed below:

Enrolment measures

Measures based on enrolments are extracted from internal systems based on finalised year-end figures. These are reconciled to the Single Data Return (SDR) submitted to the Tertiary Education Commission in January, which is the final year-end enrolments report to be submitted and is used for funding and statistical purposes by government.

In certain circumstances, tables based on enrolment percentages do not add to 100%. This is because a Māori or Pasifika student can identify as both. As a result, these students appear in both statistics.

Educational Performance Indicators

Certain reported results for the year are based on raw data that has yet to be refined by and reconciled with the Tertiary Education Commission, and which will not be finalised until after the statutory deadline for the preparation and audit of the Statement of Service Performance.

These results are in relation to successful course completion rates, first year retention rates and number of research degree completions.

The reporting of these measures for the current year uses the latest information available to Te Wānanga o Aotearoa at the time of preparation of the Annual Report. The comparatives for the prior years have been updated to show the final confirmed result.

Service Performance Information

The Statement of Service Performance is included in pages 32 to 46 of Te Pūrongo.

For the 2022-2024 Investment Plan Te Wānanga o Aotearoa revised Te Huanganui outcomes framework within the context of a relationship with the Crown, with three new outcomes that are based on the Te Tiriti o Waitangi principles of protection, participation and partnership.

The Statement of Service Performance now includes eight output measures that are intended to provide a coherent pathway towards achievement of the impacts and outcomes of Te Huanganui.

In addition to this, the Tertiary Education Commission Investment Plan Education Performance Indicators now sit within the Statement of Service Performance.

Any changes to the following measures from the previous 2020-2022 Investment Plan are entirely due to the change in outcomes as described:

1.2.1 Tauira report their use of te reo Māori has increased

1.3.2 Provide kaimahi with cultural leave so they can contribute to iwi and community events to maintain their Māori cultural relevance and mana

1.5.1 Tauira confirm an increased understanding of mātauranga Māori

2.1.2 Tauira are sharing their new skills and knowledge with whānau, hapū, iwi or community

2.2.1 Stakeholders satisfied

2.3.1 Tauira satisfaction

3.1.2 Tauira have a clearer view of how to achieve future goals

3.2.2 Proportion of policies on new QMS framework

3.4.1 Programmes delivered on Akorau platform

Tauaki Haepapa

Statement of Responsibility

In the financial year ended 31 December 2022, Te Mana Whakahaere (the Council) and the management of Te Wānanga o Aotearoa were responsible for:

› preparation of the annual financial statements and statement of service performance and the judgements used in them; and

› establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting and non-financial reporting.

In the opinion of Te Mana Whakahaere and management of Te Wānanga o Aotearoa, the financial statements and statement of service performance fairly reflect the financial position and operations of Te Wānanga o Aotearoa for the year ended 31 December 2022.

Vanessa Eparaima Te Heamana | Chairperson

Nepia Winiata Kaiwhakatere | Chief Executive

27 | 04 | 23

Te Pūrongo a te kaitātari kaute motuhake

Independent Auditor's Report

To the readers of Te Wānanga o Aotearoa’s financial statements and statement of service performance for the year ended 31 December 2022

The Auditor-General is the auditor of Te Wānanga o Aotearoa (the Wānanga). The Auditor-General has appointed me, Leon Pieterse, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the the Wānanga on his behalf.

Opinion

We have audited:

› the financial statements of the Wānanga on pages 64 to 86, 88 to 98, 100 to 110 and 112 to 118, that comprise the statement of financial position as at 31 December 2022, the statement of comprehensive revenue and expense, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and

› the statement of service performance of the Wānanga on pages 36 to 37, 40 to 41, 44 to 46, 50 and 55 to 56.

In our opinion:

› the financial statements of the Wānanga on pages 64 to 86, 88 to 98, 100 to 110 and 112 to 118:

› present fairly, in all material respects:

› its financial position as at 31 December 2022; and

› its financial performance and cash flows for the year then ended; and

› comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards; and

› the statement of service performance on pages 36 to 37, 40 to 41, 44 to 46, 50 and 55 to 56:

› presents fairly, in all material respects, the Wānanga ‘s service performance achievements as compared with the forecast outcomes included in the investment plan for the year ended 31 December 2022; and

› complies with generally accepted accounting practice in New Zealand.

Our audit was completed on 27 April 2023. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Te Mana Whakahaere and our responsibilities relating to the financial statements and the statement of service performance, we comment on other information, and we explain our independence.

Basis for our opinion

We carried out our audit in accordance with the AuditorGeneral’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Te Mana Whakahaere for the financial statements and the statement of service performance

The Te Mana Whakahaere is responsible on behalf of the Wānanga for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand.

The Te Mana Whakahaere is also responsible on behalf of the Wānanga for preparing a statement of service performance that is fairly presented and that complies with generally accepted accounting practice in New Zealand.

The Te Mana Whakahaere is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements and the statement of service performance, the Te Mana Whakahaere is responsible on behalf of the Wānanga for assessing the Wānanga’s ability to continue as a going concern. The Te Mana Whakahaere is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Te Mana Whakahaere intends to liquidate the Wānanga or to cease operations, or has no realistic alternative but to do so.

The Te Mana Whakahaere’s responsibilities arise from the Education and Training Act 2020 and the Crown Entities Act 2004.

Responsibilities of the auditor for the audit of the financial statements and the statement of service performance

Our objectives are to obtain reasonable assurance about whether the financial statements and the statement of service performance, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of these financial statements and statement of service performance.

For the budget information reported in the financial statements and the statement of service performance, our procedures were limited to checking that the information agreed to the Wānanga’s investment plan.

We did not evaluate the security and controls over the electronic publication of the financial statements and the statement of service performance.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

› We identify and assess the risks of material misstatement of the financial statements and the statement of service performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

› We obtain an understanding of internal control relevant to the audit 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 Wānanga’s internal control.

› We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Te Mana Whakahaere.

› We evaluate the appropriateness of the reported performance information within the Wānanga’s framework for reporting its performance.

› We conclude on the appropriateness of the use of the going concern basis of accounting by the Te Mana Whakahaere and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Wānanga’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the statement of service performance or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Wānanga to cease to continue as a going concern.

› We evaluate the overall presentation, structure and content of the financial statements and the statement of service performance, including the disclosures, and whether the financial statements and the statement of service performance represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Te Mana Whakahaere regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information

The Te Mana Whakahaere is responsible for the other information. The other information comprises the information included on pages 1 to 35, 38 to 39, 42 to 43, 47 to 49, 51 to 54, 57 to 60, 87, 99, 111 and 119 to 122 but does not include the financial statements and the statement of service performance, and our auditor’s report thereon.

Our opinion on the financial statements and the statement of service performance does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements and the statement of service performance, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the statement of service performance or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the Wānanga in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than the audit, we have no relationship with or interests in the Wānanga.

Leon Pieterse

Audit New Zealand

On behalf of the Auditor-General Tauranga, New Zealand

Statement of comprehensive revenue and expense | For

the year ended 31 December 2022

Surplus is attributable to:

Explanations of major variances against budget are provided in note 23. The accompanying notes form an integrated part of these financial statements.

Statement of changes in net assets / equity |

For the year ended 31 December 2022

The accompanying notes form an integrated part of these financial statements.

Statement of financial position |

For the year ended 31 December 2022

Explanations of major variances against budget are provided in note 23. The accompanying notes form an integrated part of these financial statements. For and on behalf of Te Mana Whakahaere:

Statement of cash flows

| For the year ended 31 December 2022

Explanations of major variances against budget are provided in note 23. The accompanying notes form an integrated part of these financial statements.

Statement of cash flows continued |

For the year ended 31 December 2022

Notes to the financial statements |

For the year ended 31 December 2022

1. Statement of accounting policies for the year ended 31 December 2022

1.1 Reporting entity

Te Wānanga o Aotearoa is a Tertiary Education Institution domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education and Training Act 2020.

The primary purpose of Te Wānanga o Aotearoa is to provide tertiary education and it has designated itself as a public sector public benefit entity for the purposes of financial reporting.

The group consisted of the ultimate parent, Te Wānanga o Aotearoa, and its subsidiary Aotearoa Scholarship Trust (100% controlled) up to 30 November 2021. As from 30 November 2021 Aotearoa Scholarship Trust was dissolved and assets were transferred to Te Wānanga o Aotearoa.

Aotearoa Scholarship Trust 2021 income was $2,457 and expenses were $21,047.

The financial statements cover all of the activities pertaining to an educational and research institution including but not limited to:

› The provision of student services and the facilitating of student activities, including scholarships;

› The activities of a researcher, developer, publisher, property owner, occupier including tenant or landlord, trustee, provider of accommodation, early childhood services, conferences, exhibitions, recreation facilities, sponsorship and hireage; and

› Any other activity or occupation incidental to an educational and research institution.

The financial statements of Te Wānanga o Aotearoa are for the year ended 31 December 2022. The financial statements were authorised for issue on 27 April 2023 by Te Mana Whakahaere.

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.

These policies have been consistently applied to the opening statements of financial position and reporting period to 31 December 2022, unless otherwise stated.

2.1 Basis of preparation

The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of compliance

The financial statements and service performance information comply with Public Benefit Entity International Public Sector Accounting Standards ("PBE IPSAS") for Tier 1 entities.

The financial statements of Te Wānanga o Aotearoa have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education and Training Act 2020, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with PBE IPSAS and other applicable Financial Reporting Standards, as appropriate for Tier 1 public sector public benefit entities..

Measurement base

The financial statements have been prepared on a historical cost basis except where modified by the revaluation of artwork, land and buildings.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($'000).

The functional currency of Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars.

There has been no change in the functional currency of Te Wānanga o Aotearoa during the year.

There have been no changes to the cost allocation methodology since the date of the last audited financial statements.

New amendment applied

PBE IPSAS 41 Financial Instruments

PBE IPSAS 41 Financial Instruments supersedes PBE IFRS 9 and PBE IPSAS 29 Financial Instruments: Recognition and Measurement. It is effective for the year ending 31 December 2022, with early adoption permitted.

The main changes between PBE IPSAS 29 and PBE IPSAS 41 are:

› new financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost; and

› a new impairment model for financial assets based on expected credit losses, which may result in earlier recognition of impairment losses.

Notes to the financial statements |

For the year ended 31 December 2022

2. Summary of significant accounting policies

(continued)

PBE FRS 48 Service Performance Reporting

This Standard establishes new requirements for the selection and presentation of service performance information. Te Wānanga o Aotearoa has adopted PBE FRS 48 and the main changes between PBE IFRS 48 and PBE IPSAS 1 Presentation of Financial Statements is:

› Additional information disclosed on the judgements that have the most significant effect on the selection, measurement, aggregation, and presentation of service performance information.

Standards, amendments, and interpretations issued that are not yet effective and have not been early adopted

Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and which are relevant to Te Wānanga o Aotearoa, are:

2022 Omnibus Amendment to PBE Standards

This Standard has been issued to amend the relevant Tier 1 and Tier 2 PBE Standards as a result of:

2 Summary of significant accounting policies (continued)

› PBE IPSAS 16 Investment Property: The amendments clarify that fair value measurement of self-constructed investment property could commence before the completion of construction.

› PBE IPSAS 30 Financial Instruments: Disclosures: The amendment specifically refers to disclosing the circumstances that result in fair value not being determinable

› PBE IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets: The amendments clarify the costs of fulfilling a contract that an entity includes when assessing whether a contract will be loss-making or onerous (and therefore whether a provision needs to be recognised).

Te Wānanga o Aotearoa has not yet assessed in detail the impact of these amendments.

2.2 Goods and Services Tax (GST)

All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis.

Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from or payable to the Inland Revenue (IRD) is included as part of receivables or payables in the statement of financial position.

The net GST paid to or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

2.3 Cost allocation

The cost of service for each significant activity of Te Wānanga o Aotearoa has been derived using the cost allocation outlined below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific activity. Direct costs are charged directly to the significant activity. Indirect costs are charged to significant activities using the appropriate cost drivers.

2.4 Key judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The following items have been included in the financial statements as a result of key judgements or estimates:

Notes to the financial statements |

For the year ended 31 December 2022

2. Summary of significant accounting policies (continued)

Distinction between revenue and capital contribution:

Most Crown funding received is operational in nature. Thus it 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, Te Wānanga o Aotearoa accounts for the funding as a capital contribution directly in accumulated funds.

Estimation of useful lives of assets:

The estimation of the useful lives of assets has been based on historical experience as well as the manufacturers' warranties (for plant and equipment), lease terms (for leased equipment) and turnover policies (for motor vehicles). In addition, the condition of each asset is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.

Property revaluations:

Note 13 provides information about the estimates and assumptions exercised in the measurement of revalued land and buildings.

3. Revenue Accounting policy

Revenue classification

Te Wānanga o Aotearoa classifies its revenue as exchange and non-exchange transactions. Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange. Non-exchange transactions are those where Te Wānanga o Aotearoa either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Revenue recognition

Revenue is recognised when the amount of revenue can be measured reliably and it is probable that economic benefits will flow to Te Wānanga o Aotearoa and is measured at the fair value of consideration received or receivable.

Revenue from exchange transactions

The following specific recognition criteria in relation to Te Wānanga o Aotearoa's revenue streams must also be met before revenue is recognised.

Rental revenue

Rental revenue is recognised in the surplus/(deficit) on an accrual basis.

Interest revenue

Interest revenue is recognised on a time proportion basis that takes into account the effective yield on the asset.

Dividend revenue

Dividends are recognised when the right to receive payment has been established.

Contract revenue

Certain contract revenue is accounted for as an exchange transaction and is recognised on percentage of completion basis.

Revenue from non-exchange transactions

Inflows of resources from non-exchange transactions are only recognised as assets where it is probable that the associated future economic benefit or service potential will flow to the entity and fair value is reliably measured.

Liabilities are recognised in relation to inflows of resources from non-exchange transactions when there is a resulting present obligation as a result of the non-exchange transactions where it is probable that an outflow of resources embodying future economic benefit or service potential will be required to settle the obligation and the amount of the obligation can be reliably estimated.

The following specific recognition criteria in relation to Te Wānanga o Aotearoa's non-exchange transaction revenue streams must also be met before revenue is recognised.

Student Achievement Component Funding (SAC)

SAC funding is Te Wānanga o Aotearoa's main source of operational funding from the Tertiary Education Commission (TEC). Te Wānanga o Aotearoa considers SAC funding to be non-exchange and recognises SAC funding as revenue when the course withdrawal date has passed, based on the number of eligible students enrolled in the course at the date and the value of the course.

Notes to the financial statements |

For the year ended 31 December 2021

3. Revenue (continued)

Other government grants

Funding is received from the TEC in relation to costs expected to be incurred by Te Wānanga o Aotearoa to complete specific projects agreed between the TEC and Te Wānanga o Aotearoa. Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and then recognised as revenue when the conditions of the grant are satisfied.

Tauira tuition fees

Domestic tauira tuition fees are subsidised by government funding and are considered non-exchange. Revenue is recognised when the course withdrawal date has passed, which is when a student is no longer entitled to a refund for withdrawing from the course.

Fees-free revenue

Te Wānanga o Aotearoa considers fees-free revenue to be non-exchange revenue and recognises revenue when the course withdrawal date for an eligible student has passed. Te Wānanga o Aotearoa has presented funding received for fees-free as part of tuition fees. This is on the basis that receipts from the TEC are for payment on behalf of the student as specified in the relevant funding mechanism.

Performance Based Research Fund (PBRF)

Te Wānanga o Aotearoa considers PBRF funding to be non-exchange in nature. PBRF funding is specifically identified by the TEC as being for a funding period as required by section 425 of the Education and Training Act 2020. Te Wānanga o Aotearoa recognises its confirmed allocation of PBRF funding at the commencement of the specified funding period, which is the same as Te Wānanga o Aotearoa's financial year. PBRF revenue is measured based on Te Wānanga o Aotearoa's funding entitlement adjusted for any expected adjustments as part of the final wash-up process. Indicative funding for future periods is not recognised until confirmed for that future period.

Research and contract revenue

For a non-exchange research contract, the total funding receivable under the contract is recognised as revenue immediately, unless there are substantive conditions in the contract. If there are substantive conditions, revenue is recognised when the conditions are satisfied. A condition could include the requirement to complete research to the satisfaction of the funder to retain funding or return unspent funds. Revenue for future periods is not recognised where the contract contains substantive termination provisions for failure to comply with the requirements of the contract. Conditions and termination provisions need to be substantive, which is assessed by considering factors such as contract monitoring mechanisms of the funder and the past practice of the funder.

Contract revenue

Certain contract revenue is accounted for as a non-exchange transaction and is recognised as revenue immediately based on hours of delivery each month, unless there are substantive conditions in the contract. If there are substantive conditions, revenue is recognised when the conditions are satisfied.

Notes to the financial statements | For the year ended

3. Revenue (continued)

31 December 2022

* Contract revenue relates to licences and subcontracting arrangements.

Notes to the financial statements | For the year ended

31 December 2022

3. Revenue (continued)

Revenue classified as exchange or non-exchange transactions:

* Contract revenue relates to licences and subcontracting arrangements.

Notes to the financial statements |

For the year ended 31 December 2022

Accounting Policy

Superannuation Schemes

Employer contributions to KiwiSaver are accounted for as defined contribution schemes and are recognised as an expense in the surplus/(deficit) when incurred.

*Employer contributions to defined contribution plans include contributions to KiwiSaver.

4. Kaimahi costs

Notes to the financial statements |

5. Other expenses

Accounting policy

Scholarships

Scholarships awarded by Te Wānanga o Aotearoa that reduce the amount of tuition fees payable by the student are accounted for as an expense and not offset against student tuition fees revenue.

Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term. Lease incentives received are recognised in the surplus/(deficit) as a reduction of rental expense over the lease term.

*The fees paid to audit firms for internal audits were for planning and undertaking internal audits.

Notes to the financial statements |

For the year ended 31 December 2022

6. Cash and cash equivalents

Accounting policy

Cash and cash equivalents includes cash at bank and in hand, deposits held at call and short-term deposits with an original maturity of three months or less.

While cash and cash equivalents at 31 December 2022 are subject to the expected credit loss requirement of PBE IPSAS 41, no loss allowance has been recognised because the estimated loss allowance for credit loss is trivial.

There are no restrictions over any of the cash and cash equivalent balances held by Te Wānanga o Aotearoa at 31 December 2022 (2021: nil).

Notes to the financial statements |

Accounting policy

Tauira fees and other receivables are recorded at the amount due, less an allowance for expected credit losses. Te Wānanga o Aotearoa applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables.

In measuring expected credit losses, tauira fees and other receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.

Tauira fees and other receivables are written-off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the debtor being in liquidation.

The expected credit loss rates for receivables at 31 December 2022 are based on the following:

› Debt is over $150

› Age of debt is over 365 days

› Automatic Payment's stopped and minimal or no contact with Te Wānanga o Aotearoa or collection agency around debt

There have been no changes in the estimation technique or significant assumptions used in measuring the loss allowance.

above comprise:

7. Tauira and other receivables

Notes to the financial statements | For the year

ended 31 December 2022

7. Tauira and other receivables (continued)

(a) Fair value

Other receivables are non-interest bearing and receipt is normally on short term of 30 day terms. Therefore the carrying value of other receivables approximates their fair value.

Tauira receivables are non-interest bearing and receipt is normally on enrolment and no later than graduation. Therefore the carrying value of tauira receivables approximates their fair value.

(b) Impairment

The carrying amount of receivables that would otherwise be past due or impaired and whose terms have been renegotiated is nil (2021: nil).

All receivables greater than 30 days in age are considered to be past due.

The impairment provision has been calculated based on expected losses for Te Wānanga o Aotearoa and the pool of receivables.

Expected losses have been determined based on an analysis of losses for Te Wānanga o Aotearoa in previous periods and a review of specific receivables.

Notes to the financial statements |

Other impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor.

Movements in the allowance for credit losses are as follows:

Te Wānanga o Aotearoa holds no collateral as security as other credit enhancements over receivables that are either past due or impaired.

policy

Inventories held for distribution or consumption in the provision of services that are not issued on a commercial basis are measured at the cost, adjusted for any loss of service potential.

› Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition.

› Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost and net realisable value.

The cost of purchased inventory is determined as follows:

› Inventories held for resale - purchase cost is on a weighted average cost

› Materials and consumables to be utilised for rendering of services - purchase cost is on a first-in, first-out basis.

The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus/(deficit) in the period of the write-down.

8. Inventory

7. Tauira and other receivables (continued)

Notes to the financial statements |

For the year ended 31 December 2022

Inventories are made up of consumables and inventories held for distribution to Takiwa. Consumables are materials or supplies which will be consumed in conjunction with the delivery of services and predominantly comprise of books and resources used in the teaching of courses to tauira.

Inventory consumed for Te Wānanga o Aotearoa in 2022 is $2.9m (2021: $3.2m). These figures form part of tauira resources which is disclosed in note 5, other expenses.

The write down of inventories held for distribution due to tauira resources being revised and redeveloped amounted to $0.11m in 2022 (2021: nil). There have been no reversals of write-downs in 2022 (2021: nil).

No provision made for the inventories held for distribution due to tauira resources being revised and redeveloped (2021: $0.1m)

No inventories are pledged as security for liabilities (2021: nil).

8. Inventory (continued)

Notes to the financial statements |

For the year ended 31 December 2022

9. Other financial assets

Accounting policy

Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus/(deficit) in which case the transaction costs are recognised in the surplus/(deficit). Purchases and sales of financial assets are recognised on tradedate, the date on which Te Wānanga o Aotearoa commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Te Wānanga o Aotearoa has transferred substantially all the risks and rewards of ownership.

Term deposits

Term deposits are initially measured at the amount invested. Where applicable, interest is subsequently accrued and added to the investment balance. A loss allowance for expected credit losses is recognised if the estimated loss allowance is not trivial.

At year end, term deposits are assessed for indicators of impairment. If they are impaired, the amount not expected to be collected is recognised in the surplus/(deficit).

Managed fund

The managed fund is a portfolio of financial assets that are actively traded with the intention of making profits. Therefore, the managed fund is measured at fair value through surplus/(deficit).

After initial recognition, the managed fund is measured at fair value, with gains and losses recognised in the surplus/ (deficit).

Financial assets are classified into the following categories for the purpose of measurement:

› fair value through surplus/(deficit);

› amortised cost;

› fair value through other comprehensive income.

The classification of a financial asset depends on the purpose for which the instrument was acquired.

Financial assets at fair value through surplus/(deficit)

Financial assets at fair value through surplus/(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 profit-taking. Derivatives are also categorised as held for trading.

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/(deficit).

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in surplus/(deficit) when the asset is derecognised or impaired.

Fair value through other comprehensive revenue and expense

Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless management intends to dispose of, or realise, the investment within 12 months of balance date. Te Wānanga o Aotearoa includes in this category:

› 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 revenue and expense, except for impairment losses, which are recognised in the surplus/ (deficit).

On derecognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus/(deficit).

Notes to the financial statements |

For the year ended 31 December 2022

9. Other financial assets (continued)

Impairment of financial assets

At each balance date, Te Wānanga o Aotearoa assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the surplus/(deficit).

Fair value

Term deposits

Te Wānanga o Aotearoa considers there has not been a significant increase in credit risk for investments in term deposits because the issuer of the investment continues to have low credit risk at balance date. Term deposits are held with banks that have a long-term AA- investment grade credit rating, which indicates the bank has a very strong capacity to meet its financial commitments.

No loss allowance for expected credit losses has been recognised because the estimated 12-month expected loss allowance for credit losses is trivial.

The carrying amount of term deposits approximates their fair value.

The weighted average effective interest rate for term deposits is 3.5% (2021: 1.3%).

Notes to the financial statements |

9. Other financial assets (continued)

The managed fund is measured at fair value and consists of listed shares and listed bonds. The fair value of the managed fund investments is determined using quoted market bid prices from independently sourced market information. Therefore the carrying value of managed funds approximates their fair value.

Notes to the financial statements |

9. Other financial assets (continued)

Impairment

There were no impairment provisions for other financial assets. None of the financial assets are either past due or impaired.

Notes to the financial statements |

For the year ended 31 December 2022

10. Payables

Accounting policy

Short-term creditors and other payables are recorded at their face value.

Creditors and other payables are non-interest bearing and are normally settled on terms varying between 7 days and 20th of the month following invoice date. Therefore, the carrying value of trade and other payables approximates their fair value.

Deferred non-exchange revenue relates to grants and donations received to which there are stipulated conditions attached.

Non-exchange revenue in relation to this balance is recognised at the point-in-time as each stipulated condition is met. For terms and conditions relating to related parties payables, refer to note 18.

Notes to the financial statements |

For the year ended 31 December 2022

11. Kaimahi entitlements

Accounting policy

Short-term kaimahi entitlements

Kaimahi entitlements that Te Wānanga o Aotearoa expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date and sick leave.

Te Wānanga o Aotearoa recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date to the extent Te Wānanga o Aotearoa anticipates it will be used by staff to cover those future absences.

Superannuation schemes

Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus/(deficit) when incurred.

Notes to the financial statements | For the year ended 31 December 2022

12. Provisions

Accounting policy

A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event; it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Lease make-good

The lease make-good provision is based on an estimate of future costs to restore leased premises back to the condition when the lease period commenced.

In respect of a number of leased premises, Te Wānanga o Aotearoa is required at the expiry of the lease term to makegood any fixtures or fittings installed in the premises. In many cases, Te Wānanga o Aotearoa has the option to renew these leases, which impacts on the timing of expected cash outflows to make-good the premises.

The cash flows associated with the non-current portion of the lease make-good provision are expected to occur in May 2024, November-December 2024, January 2025, August-September 2025, November 2025, April 2026, December 2026, and May 2028. Information about Te Wānanga o Aotearoa leasing arrangements are disclosed in note 21.

Notes to the financial statements |

For the year ended 31 December 2022

Accounting policy

Property, plant and equipment asset classes consist of land and buildings, leasehold improvements, furniture and equipment, computers, motor vehicles, waka, library books and artwork. Items of property, plant and equipment are initially measured at cost, except those acquired through non-exchange transactions which are instead measured at fair value as their deemed cost at initial recognition.

Items of property, plant and equipment are subsequently measured under the following:

› Buildings are measured at cost or valuation less subsequent accumulated depreciation.

› Land and artwork are stated at cost or valuation and are not depreciated.

› All other asset classes are stated at cost less accumulated depreciation and impairment losses.

› Items of property, plant and equipment that have been acquired through non-exchange transactions are measured at fair value.

(i) Revaluation

Land, buildings and artwork are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value and at least every three years for land and buildings and at least every five years for artwork. The carrying values of revalued classes are assessed annually to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the off-cycle asset classes are revalued.

Property, plant and equipment revaluation movements are accounted for on a class-of-asset basis.

The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class of asset. Where this would result in a debit balance in the asset revaluation reserve this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus/(deficit). Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus/(deficit) will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue and expense.

(ii) Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to Te Wānanga o Aotearoa and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated.

In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value and as at the date of acquisition.

(iii) Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying value of the asset. Gains and losses on disposals are recognised in the surplus/(deficit).

When revalued assets are sold, the amounts included in the revaluation reserve in respect of those assets are transferred to accumulated surplus/(deficit) within equity.

(iv)

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Te Wānanga o Aotearoa and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus/(deficit) as they are incurred.

(v)

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment (excluding land and artwork) at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

13. Property, plant and equipment

Notes to the financial statements |

For the year ended 31 December 2022

13. Property, plant and equipment (continued)

The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Leasehold improvements are depreciated over the noncancellable period for which Te Wānanga o Aotearoa has contracted to lease the asset together with any further terms for which Te Wānanga o Aotearoa has the option to continue to lease the asset.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

(vi) Impairment

Te Wānanga o Aotearoa does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return.

Property, plant, and equipment are reviewed for impairment at each balance date and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is the present value of an asset's remaining service potential. It is determined using an approach based on either a depreciated replacement cost approach, a restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

If an asset’s carrying amount exceeds its recoverable service amount, the asset is considered to be impaired and the carrying amount is written-down to the recoverable service amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that

class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus/ (deficit).

For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus/(deficit).

The reversal of an impairment loss on a revalued asset is credited to other comprehensive revenue and expense 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/(deficit), a reversal of the impairment loss is also recognised in the surplus/(deficit).

For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus/(deficit).

Value in use for non-cash-generating assets

Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return.

For non-cash-generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, a restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

Value in use for cash-generating assets

Cash-generating assets are those assets that are held with the primary objective of generating a commercial return.

The value in use for cash-generating assets and cashgenerating units is the present value of expected future cash flows.

13. Property, plant and equipment (continued)

Notes to the financial statements |

For the year ended 31 December 2022

Valuation

The most recent valuation of land and buildings were performed by independent valuers, Carl Waalkens and Joshua Higgie of Bayleys Valuation Services as at 31 December 2021.

Land and buildings using market-based evidence Land and non-specialised buildings are valued at fair value using market-based evidence. The main marketbased valuation methods applied were capitalised income and discounted cashflow methods. The capitalised income method considers both sales and leasing evidence by using market rents and capitalisation rates to determine the current fair value. The discounted cashflow method has been calculated on a 10-year investment period with discount rates between 7% and 7.25% to provide the net present fair value.

Market rents range from $0.025m to $1.9m per annum. An increase (decrease) in market rents would increase (decrease) the fair value of non-specialised buildings.

Capitalisation rates are market-based rates of return and range from 4% to 9%. An increase (decrease) in the capitalisation rate would decrease (increase) the fair value of non-specialised buildings.

Specialised buildings

Where applicable, the depreciated replacement cost method was considered for specialised buildings (for example, campuses) to determine the fair value.

Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include:

› The replacement asset is based on the replacement with modern equivalent assets with adjustments where appropriate for obsolescence due to over design or surplus capacity.

› The replacement cost is derived from QV costbuilder costs data and where relevant, recent construction contracts of similar assets. Construction costs range from $1,450 to $4,600 per square metre, depending on the nature of the specific asset valued. This range reflects the different components of buildings, ranging from ground service areas to accommodation blocks.

Artwork

The most recent valuation of artwork was performed by an independent valuer, Erika Chamberlain of Antique and Art. The valuation was undertaken in accordance with PBE IPSAS 17 using fair value and is effective as at 31 December 2021.

Determination of fair value has been made by:

› Reference to observable prices in an active market. Where the market exists for the same or similar asset the market prices are deemed to be a fair value. The values ascribed in the valuation are primarily based on observable process both in the primary retail market and secondary auction market.

› If there is no active market, fair value is determined by other market based evidence adjudged by active and knowledgeable participants in the market.

Impairment

No impairment losses (2021: nil) have been recognised for leasehold improvements due to no longer being in our current property portfolio or the improvement no longer exists. Impairment losses of $0.0m (2021: $0.0m) have been recognised for library books due to no longer being in our current library collection. note 5. The impairment loss has been recognised in the statement of comprehensive revenue and expense in the line item “Other expenses”.

13. Property, plant and equipment (continued)

Notes to the financial statements |

For the year ended 31 December 2022

13. Property, plant and equipment (continued)

Work in progress

The value of work in progress is disclosed at cost by class of asset as follows:

Restrictions of title

Under the Education and Training Act 2020, Te Wānanga o Aotearoa is required to obtain consent from the Ministry of Education to dispose of land and buildings.

Te Wānanga o Aotearoa does not have any:

› Restrictions on title on property, plant and equipment.

› Property, plant and equipment pledged as security for liabilities.

› Compensation for items of property, plant and equipment that were impaired, lost or given up.

Finance leases

The net carrying amount of property, plant and equipment held under finance leases is nil (2021: nil).

Notes to the financial statements |

For the year ended 31 December 2022

14. Intangible assets

Accounting policy

Intangible assets are initially recorded at cost except for:

› Intangible assets acquired through non-exchange transactions (measured at fair value).

All of Te Wānanga o Aotearoa's intangible assets are subsequently measured in accordance with the cost model, being cost (or fair value for items acquired through non-exchange transactions) less accumulated amortisation and impairment.

Computer software

Computer software is separately acquired and capitalised at its cost as at the date of acquisition. After initial recognition, separately acquired intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Costs associated with maintaining computer software programmes are recognised as an expense when incurred.

Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include software development employee costs and an appropriate portion of relevant overheads.

Staff training costs are recognised as an expense when incurred.

Programme development costs

Programme development costs relate to development of educational courses and are capitalised once accreditation has been received and when it is probable that future economic benefit arising from use of the intangible asset will flow to Te Wānanga o Aotearoa.

Following initial recognition of programme development costs, the cost model is applied and the asset is carried at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

A summary of policies applied to Te Wānanga o Aotearoa's intangible assets is as follows:

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. The amortisation period starts when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation method for each class of intangible asset having a finite life is reviewed at the end of each financial year. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. The amortisation for each period is recognised in the surplus/(deficit).

The carrying value of each class of intangible asset is reviewed annually for indicators of impairment. Intangible assets are tested for impairment where an indicator of impairment exists.

Gains or 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 surplus/(deficit) when the asset is derecognised.

All other research and development costs are recognised as expenses in the surplus/(deficit) in the year in which they are incurred.

Notes to the financial statements |

For the year ended 31 December 2022

14. Intangible assets (continued)

Impairment of intangible assets

Intangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When an asset is found to be impaired, a recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

The value in use for cash-generating assets is the present value of expected future cash flows.

If an asset's carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount.

The total impairment loss is recognised in the surplus/ (deficit).

Value in use for non-cash-generating assets

Non-cash-generating assets are those assets that are not held with the primary objective of generating a commericial return.

For non-cash-generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

Value in use for cash-generating assets

Cash-generating assets are those assets that are held with the primary objective of generating a commercial return.

Movements in the carrying value for each class of intangible assets are as follows:

At 31 December 2022

Notes to the financial statements |

For the year ended 31 December 2022

14. Intangible assets (continued)

At 31 December 2021

There are no restrictions over the title of Te Wānanga o Aotearoa intangible assets, nor are any intangible assets pledged as security for liabilities.

Te Wānanga o Aotearoa impaired intangible assets of $0.6m in 2022 (2021: $0.04m). Programme development has been impaired due to programmes either being redeveloped to align with NZQA Targeted Review of Qualification (TRoQ) changes or programmes no longer being delivered. Software has been impaired as applications are no longer used.

There were no contractual commitments for the acquisitions of intangible assets for Te Wānanga o Aotearoa (2021: nil).

Notes to the financial statements |

15. Equity

Net assets/equity is measured as the difference between total assets and total liabilities. Net assets/equity is disaggregated and classified into a number of reserves. The components of net assets/equity are:

This reserve relates to the revaluation of property, plant, and equipment to fair value.

Notes to the financial statements |

For the year ended 31 December 2022

15. Equity (continued)

Capital management

The capital of Te Wānanga o Aotearoa is its net assets/equity, which comprises of accumulated funds and the property revaluation reserve. Equity is represented by net assets.

Te Wānanga o Aotearoa is subject to the financial management and accountability provisions of the Education and Training Act 2020, which includes restrictions in relation to disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings and borrowings. Te Wānanga o Aotearoa acknowledges it has complied with the financial management and accountability provisions of the Education and Training Act 2020 for the year ended 31 December 2022.

Te Wānanga o Aotearoa manages its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. The equity of Te Wānanga o Aotearoa is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings.

The objective of managing the equity of Te Wānanga o Aotearoa is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.

Notes to the financial statements |

16. Early learning centres

During 2022, Te Wānanga o Aotearoa received total grants of $2.406m from the Ministry of Education for early learning purposes (2021: $2.6m). These grants have been classified as non-exchange revenue.

Notes to the financial statements | For

the year ended 31 December 2022

16. Early learning centres (continued)

Notes to the financial statements |

17. Financial instruments

Te Wānanga o Aotearoa's activities expose it to a variety of financial risks (market risk, liquidity risk and credit risk). Te Wānanga o Aotearoa's risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of Te Wānanga o Aotearoa. Te Wānanga o Aotearoa uses derivative financial instruments such as interest rate swaps and forward foreign exchange contracts to hedge certain risk exposures.

(a) Financial instrument categories

The estimated carrying amount and fair values of Te Wānanga o Aotearoa's financial assets and liabilities are presented as follows:

(b) Fair value hierarchy

For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy:

› Quoted market price (level 1) – Financial instruments with quoted prices for identical instruments in active markets.

› Valuation technique using observable inputs (level 2) – Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

› Valuation techniques with significant non-observable inputs (level 3) – Financial instruments valued using models where one or more significant inputs are not observable.

Notes to the financial statements |

For the year ended 31 December 2022

17. Financial instruments (continued)

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statement of financial position::

31 December 2021

There were no transfers between the different levels of the fair value hierarchy.

Notes to the financial statements |

17. Financial instruments (continued)

(c) Financial instrument risks

Te Wānanga o Aotearoa has policies to manage risks associated with financial instruments. Te Wānanga o Aotearoa is risk averse and seeks to minimise exposure from its treasury activities. The policies do not allow any transactions that are speculative in nature to be entered into..

Market

risk

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.

Te Wānanga o Aotearoa has only limited exposure to foreign currency risk. Te Wānanga o Aotearoa purchases library items and software licences from overseas which exposes it to currency risk.

Fair value interest rate risk

Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.

Investments issued at fixed rates of interest create exposure to fair value interest rate risk. Te Wānanga o Aotearoa does not actively manage its exposure to fair value interest rate risk.

Cash flow interest rate risk

Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Investments issued at variable interest rates create exposure to cash flow interest rate risk..

Credit risk

Credit risk is the risk that a third party will default on its obligation to Te Wānanga o Aotearoa causing Te Wānanga o Aotearoa to incur a loss. Due to the timing of its cash inflows and outflows, Te Wānanga o Aotearoa invests surplus cash into term deposits which gives rise to credit risk.

In the normal course of business, Te Wānanga o Aotearoa is exposed to credit risk from cash and term deposits with banks, debtors and other receivables. For each of these, the maximum credit exposure is best represented by the carrying amount in the statement of financial position.

Te Wānanga o Aotearoa manages cashflow interest rate risk by ensuring that no more than 35% of total liquid funds are held with any one approved counter party. With the exception of tauira fees, Te Wānanga o Aotearoa trades only with recognised and creditworthy third parties. Receivable balances are monitored on an on-going basis with the result that Te Wānanga o Aotearoa exposure to bad debts is not significant as a result of the ability to withhold graduation from tauira who do not pay their fees. Receivables arise mainly from tauira fees. There are procedures in place to monitor or report the credit quality of receivables. Te Wānanga o Aotearoa has no significant concentrations of risk in relation to receivables as it has a large number of credit customers.

Te Wānanga o Aotearoa 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. All instruments in this table have a loss allowance based on lifetime expected credit losses.

Notes to the financial statements | For

the year ended 31 December 2022

17. Financial instruments (continued)

Cash at bank and term deposits

Liquidity risk

Management of liquidity risk

Liquidity risk is the risk that Te Wānanga o Aotearoa will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available. Te Wānanga o Aotearoa manages liquidity risk by continuously monitoring forecast and actual cash flow requirements.

Contractual maturity analysis of financial liabilities

The table below shows an analysis of Te Wānanga o Aotearoa financial liabilities grouped according to maturity, based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.

Notes to the financial statements |

For the year ended 31 December 2022

17. Financial instruments (continued)

Contractual maturity analysis of financial assets

The table below shows an analysis of Te Wānanga o Aotearoa financial assets grouped according to maturity, based on the remaining period at the balance date to the contractual maturity date.

Sensitivity analysis

The tables below illustrate the potential impact to the surplus/(deficit) and equity (excluding retained earnings) for reasonably possible market movements with all variables held constant based on the financial instrument exposures of Te Wānanga o Aotearoa at balance date.

Interest rate risk – Financial assets

Explanation of interest rate risk sensitivity

The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis points (bps) movement. For example a decrease in 100 bps is equivalent to a decrease in interest rates of 1.0%.

Notes to the financial statements |

For the year ended 31 December 2022

17. Financial instruments (continued)

(d) Reconciliation of movements in liabilities arising from financing activities

18. Related party disclosures

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect Te Wānanga o Aotearoa would have adopted in dealing with the party at arm's length in the same circumstances.

There are no related party transactions to disclose in 2022 (2021: one)

Notes to the financial statements |

19. Key kaimahi remuneration

Notes to the financial statements |

19. Key kaimahi remuneration (continued)

Total remuneration includes any non-financial benefits provided to kaimahi, including motor vehicle, medical insurance, life insurance and income protection insurance.

To determine management kaimahi numbers for Nga Pouwhakahaere/senior leadership, full-time equivalents (FTE) is used. An FTE is based on kaimahi working a 37.5 hour week.

To determine the number of governance members with respect to Te Mana Whakahaere and sub-committees, a member is recognised only once if they hold more than one position. The FTE concept is not practical to apply to governance roles.

Notes to the financial statements |

For the year ended 31 December 2022

20. Contingencies

Contingent liabilities

Litigation

Te Wānanga o Aotearoa has two legal claims outstanding as at the balance date (2021: Four). The claims relate to disputes with internal parties. Te Wānanga o Aotearoa has not disclosed the details of these claims as it may seriously prejudice the position of Te Wānanga o Aotearoa with respect to disputes with the other internal parties.

Financial guarantee

Te Wānanga o Aotearoa has no financial guarantees in place as at balance date (2021: nil).

Contingent assets

Te Wānanga o Aotearoa has no contingent assets as at balance date (2021: nil).

21. Capital commitments and operating leases

Accounting policy

Operating leases

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 revenue.

Operating lease payments are recognised as an expense in the surplus/(deficit) on a straight-line basis over the lease term.

Lease incentives received are recognised in the surplus/(deficit) as a reduction of rental expense over the lease term.

Capital commitments

Capital commitments represent capital expenditure contracted for at balance date, but not recognised in the financial statements are as follows;

Notes to the financial statements |

For the year ended 31 December 2022

21. Capital commitments and operating leases (continued)

Operating leases as lessee

Te Wānanga o Aotearoa has entered commercial leases on certain buildings where it is not in the best interest of Te Wānanga o Aotearoa to purchase these assets.

These leases have a life of between 1 and 12 years with renewal terms included in the contracts. Renewals are at the option of Te Wānanga o Aotearoa. 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:

Te Wānanga o Aotearoa owns a number of buildings and has entered commercial leases where it is not in the best interest of Te Wānanga o Aotearoa to use these buildings for their operations.

These leases have an average life of between 1 and 3 years with renewal terms included in the contracts. Renewals are at the option of the lessee. There are no restrictions placed upon the lessee by entering into these leases.

Future minimum rentals receivable under non-cancellable operating leases as at 31 December are as follows:

No contingent rents have been recognised in the statement of comprehensive revenue and expense during the period.

Notes to the financial statements |

For the year ended 31 December 2022

22. Events after the balance date

There are two events after balance date (2021: two).

Beginning on Friday 27 January 2023 New Zealand experienced catastrophic flooding events with Auckland being the most severely affected. Damage to the main Auckland campus in Māngere was significant and resulted in the closure of the main delivery site and Early Learning Centre for an extended period for clean-up and repairs. 2022 Semester B classes will be delivered online for the remainder of the programme. 2023 Semester A classes planned for delivery at Māngere Campus (excluding Dynaspeak) will also be delivered online or at alternate locations. The full impact of the event on operations and delivery is still being assessed and worked through.

On Tuesday 14 February 2023 a national state of emergency was declared due to Cyclone Gabrielle. This has been recorded as the worst tropical cyclone to hit New Zealand since 1968 with many areas of the country significantly affected. Damage to Te Wānanga o Aotearoa properties was minor however, impacts to local services and infrastructure in Whirikoka and Heretaunga has been significant potentially impacted kaimahi and tauira. The impact on our delivery in these areas is still being assessed and worked through.

Notes to the financial statements |

For the year ended 31 December 2022

23. Explanation of major variances against budget

Accounting policy

It should be noted Te Wānanga o Aotearoa budget figures have been approved by Te Mana Whakahaere at the beginning of the year. Budget figures are prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by Te Mana Whakahaere for the preparation of the financial statements. However, some items presented in the budget have been reclassified in the annual report to be consistent with the presentation of actuals.

Explanations for major variations from Te Wānanga o Aotearoa budget figures are as follows:

Statement of comprehensive revenue and expense

Te Wānanga o Aotearoa result was a surplus of $3.5m (2.4% of total revenue) which was $3.5m above budget.

Government funding was $6.1m below budget. EFTS consumption was 3,555 below target a negative impact of COVID-19 restrictions offset by additional funding received in recognition of the unique challenges and aspirations of Wānanga .

Interest income was $0.5m higher than budget due to higher than planned interest rates.

Other revenue was $10m below budget, mainly attributed to significantly lower than planned returns on managed funds due to world-events negatively impacting financial markets.

Kaimahi costs were $11.5m favourable to budget mainly due to unfilled vacancies and the need for less kaimahi due to lower EFTS.

Depreciation and amortisation was $1.0m above budget because budget assumptions excluded the impact of property revaluations completed in 2021, offset by the result of lower than budgeted capital expenditure.

Other expenses were $8.9m favourable to budget. Variable costs of tauira kete, teaching resources and noho marae were $4.2m lower budget because of below target EFTS consumption. Overhead expenditure was lower across almost all categories due to the COVID-19 restrictions effecting ability to spend as planned.

Statement of financial position

Cash and cash equivalents are $8.9m higher than budget to fund operational requirements through the Christmas closedown.

Tauira and other receivables were $13.6m lower than budget mainly due to SAC funding being recognised based on when the course withdrawal date has passed, and the number of eligible students who have enrolled at that time.

Other financial assets were $8m higher than budget from higher cash-flows from operations than planned due to lower operational and capital expenditure. The budget also assumed different timing of maturity and investment than actual.

Prepayments were $0.8m higher than budget. The budget assumed different timing of renewals than actual.

Managed funds was $12.3m higher than budget due to an unplanned increase in principal funds invested from excess cash available at the beginning of the year offset by lower than expected returns on investments due to worldwide events impacting negatively on financial markets.

Property, plant and equipment were $19.3m higher than budget from the unplanned impact of property revaluations completed in 2021 after the budget was approved.

Intangible assets were $5.4m lower than budget due to planned capital expenditure not proceeding or being deferred as planned due to changes in scope or resourcing availability.

Payables were $9.8m higher than budget as the budget did not include other government funding of $9.4m as being payable at year-end or consider the deferment of year-end tax payments.

Statement of cash flows

Government funding receipts were $13.7m lower than budget due to not meeting EFTS targets offset by the receipt of new funding in recognition of challenges and aspirations of Wānanga.

Dividends were $1.0m higher than budget due to higher returns than planned.

Other cash receipts from operating activities were $1.4m lower than budget because the budget assumed different timing of receipts.

Payments to kaimahi were $18.9m below budget due largely to unfilled vacancies and the need for less kaimahi as a result of fewer EFTS.

Notes to the financial statements |

For the year ended 31 December 2022

23. Explanation of major variances against budget (continued)

Payments to suppliers were $4.2m below budget as cost savings were achieved across most cost categories as a result of COVID-19 restrictions.

GST payments were $3.5m below budget due to deferment of year-end IRD payments.

Purchases of PPE were $13.7m below budget due to planned capital expenditure not proceeding or being delayed.

Purchases of software were $0.8m below budget due to planned capital expenditure not proceeding or being deferred as planned due to changes in scope or resourcing availability.

Purchases of programme development were $1.4m below budget due to planned capital expenditure not proceeding or being deferred as planned due to changes in scope or resourcing availability.

Purchases of managed funds investments were $21.7m higher than budget mainly due to the unplanned increase to the principal of $20m.

Purchases of cash investments (net) were $7.3m below budget because cash was required to fund operations over the Christmas closedown.

Notes to the financial statements |

For the year ended 31 December 2022

24. Adoption of PBE IPSAS 41 Financial Instruments

In accordance with the transitional provisions of PBE IPSAS 41, Te Wānanga o Aotearoa has elected not to restate the information for previous years to comply with PBE IPSAS 41. The comparative information continues to be reported under PBE IFRS 9. Adjustments arising from the adoption of PBE IPSAS 41 are recognised in opening equity at 1 January 2022.

Accounting policies have been updated to comply with PBE IPSAS 41. The main updates are:

› Note 7 Receivables: This policy has been updated to reflect that the impairment of short-term receivables is now determined by applying an expected credit loss model.

› Note 10 Other financial assets: The term deposits policy has been updated to explain that a loss allowance for expected credit losses is recognised only if the estimated loss allowance is not trivial.

On the date of initial application of PBE IPSAS 41, being 1 January 2022, the classification of financial instruments under PBE IFRS 9 and PBE IPSAS 41 is as follows:

FVTSD = Fair Value through Surplus or Deficit.

The measurement categories and carrying amounts for financial liabilities have not changed between the closing 31 December 2021 and opening 1 January 2022 dates as a result of the transition to PBE IPSAS 41.

Hei Whakamaumahara

In rememberance

E te iwi nui tonu tēnei ka tangi mō koutou kua ngaro ki te Hono-i-wairua.

Mahue mai ko mātou te hunga ora ki muri nei auē atu ai, mōteatea atu ai, mapu atu ai.

Nō reira moe mai rā kei aku rau kahurangi kei aku kuru tongarerewa.

Waiho mai ko mātou hei pīkau ī ā koutou ōhākī hei oranga mō ngā whakatupuranga.

E moe, okioki atu.

To the multitudes who have departed this world, we mourn for you as you take your place where the spirits gather.

In the world of the living – those of us who have been left behind – we wail in sorrow, we weep as we think of you, we heave a sigh of grief.

But, sleep cherished ones, treasured ones. Leave for us your works that we may continue to fulfil your aspiration to help our future generations.

Forever be at rest.