Annual report 2014

2014Annual ReportSouthern

Institute of

Technology

ANNUAL REPORT 2014

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Private Bag 90114 133 Tay Street Invercargill

Phone (03) 211 2699Fax (03) 214 4977 Freepost 62685Free Phone 0800 4 0 FEES (0800 4 0 3337)Website www.sit.ac.nz

INDEX 03 Mission and Goals

04 2014 Highlights

06 Chairperson’s Report

07 Chief Executive’s Report

10 Statement of Responsibility

12 Governance and Management

15 Student Achievement

26 Support Services

28 International Students

32 Industry, Business, Community

38 Staff Focus

46 Statement of Service Performance

53 Independent Auditor’s Report

56 Statement of Accounting Policies

63 Financial Statements

86 Glossary of Acronyms

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Goals and Continuing Objectives

Provide for and encourage student participation and achievement in a range of quality learning opportunities and services

ª Enhance academic achievement and satisfaction of stakeholders

ª Offer a range of programmes/paths which provide occupational and life skills

ª Improve the representation and achievement of under-represented and disadvantaged groups

ª Provide a range of student and staff support services

Foster our social and professional obligations to both clients and staff

ª Create and maintain policies which are consistent with the Human Rights Act

ª Enhance and promote an understanding of Te Tiriti o Waitangi and its application to the institution

ª Provide a physically desirable learning and working environment

Operate a viable educationally directed business entity

ª Manage the organisation effectively and efficiently

ª Demonstrate commitment to the employment and development of quality staff

ª Enhance revenue income from other activities

01 02 30

Southern Institute of Technology provides quality vocational education which equips people with the knowledge and skills to be effective industry participants

E whakarato ana Te Whare Wananga o Murihiku i Ka rataka huaraki kia whakarawe ite takate ki te mohiotaka me ka pukeka kia mahi tika ai a ia kei roto nei i tona ahumahi

Southern Institute of Technology provides students with quality education and training services

E whakarato ana Te Whare Wananga o Murihiku ki nga tauira inga matauranga me nga akoranga tino teitei

Mission Statement Statement of Purpose

This Mission Statement, in turn, defines the Institute’s Statement of Purpose, which acknowledges its primary commitment to its student base. By providing well-trained and competent graduates, the Institute also supports the industries and professions that provide ongoing and future employment.

The Institute fulfils this purpose when it provides learning opportunities for students that are industry focused, challenging and personally enriching, and which equip them to apply high level skills in a variety of business, industry and professional settings.


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2014Highlights

12,446students

EFTS

5Campuses

ª Invercargill ª Christchurch ª Queenstown ª Gore ª Auckland

Programmes

160+

98.5% 93%OVERALL STUDENT

Student Satisfaction Survey 2014

OF SIT GRADUATES

Reported they were IN EMPLOYMENT

OR STUDYING

Graduate Destination Survey 2013

79%course completion

73%qualification completion

65%retention 37%

progression to higher level study from levels 1-4

Provisional Results - January SDR

$96,778,000total net assets

SATISFACTION

$32,891,000government funding

$6,282,000international student fees

$677,000domestic student fees

$8,898,000Other income

$48,032,000total expenses

$766,000surplus$48,798,000

total income

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STUDENT AGE*

Under 25 years

25+ years

37% 63%46% 54%Male Female

STUDENT GENDER*

STUDENT ETHNICITY*

15% 3% 5% 82% 4%Maori Pacific

IslanderAsian European Others

*Government Funded EFTS

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ANNUAL REPORT 2014

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I am pleased to present the Annual Report of the Southern Institute of Technology for 2014.

As the figures in this Annual Report show the Southern Institute of Technology is one of the larger Institutes of Technology in the country. We now have five campuses nationally following the successful opening of our Queen Street Campus in Auckland.

We must strive to provide ‘quality vocational education which equips people with the knowledge and skills to be effective industry participants’. This is taken directly from our mission statement. In order to achieve our mission, we must continue to provide a wide range of vocationally based training which equips our students with the skills they require to obtain good jobs. This will see our graduates contributing to, and growing, our community.

A large number of our graduates are being employed in the Southland region. The challenges these graduates will face in their working lives are totally different from those graduating and beginning work in an urban centre. Southland has a strong production based export economy and the Southern Institute of Technology has a responsibility to continue to produce graduates who are skilled in the areas required by the unique needs of our community.

We value our relationships with our community and with industry. While our financial and academic results are vitally important to our continued success, we do not lose sight of the importance of these relationships, which we continue to build.

Chairperson’s Report

Sarah BrownChairperson of Council

Our international student numbers continue to increase. We are very proud of the way these students have contributed to the vibrancy of what has truly become a multi-cultural community.

Riki Cherrington passed away in December 2014. Koroua Riki was our kaumatua, and a strong supporter of our Maori students. His contribution was significant, and he will be sorely missed.

The organisation is in a sound financial position. This will ensure that the hugely successful Zero Fees initiative will continue into the foreseeable future.

Finally, on behalf of the Council, I wish to record our gratitude to Penny Simmonds and her hardworking team. SIT’s continued success reflects Penny’s outstanding skills and dedication to the organisation. She continues to be supported by a strong senior management group, and a committed staff.

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Chief Executive’s Report

Introductory StatementWe collect a range of feedback data obtained through a multitude of surveys of our students and stakeholders in order to continuously improve our delivery of education and training.

The most important things to know for us are: did the student get employment or move to a higher level study as a consequence of studying with us, and also did they consider the experience sufficiently worthwhile to study with us again?

Of the data obtained in 2014 from our graduate destination survey we know that 98.5% of graduates reported they were in employment or further study six months after graduating and 93% of our graduates were satisfied overall with their programme of study at SIT.

While we still have significant misgivings about the completeness of Educational Performance Indicators (EPI) we note SIT’s steady increase in particularly, course completions up from 77% in 2013 to 79% in 2014 indicative results, qualification completions up from 71% in 2013 to 73% in 2014 and retentions up from 58% in 2013 to 65% in 2014. This is particularly relevant to note at a time when sector averages appear to have plateaued or declined.

SIT continues to maintain that the EPIs are not sufficiently robust to be used for anything other than trends and particularly that they should not be considered as a determining factor in the EER process as has occurred historically.

In turn we continue to oppose the use of the EER categories as a basis for determining entry into unrelated projects such as the Immigrant NZ pilot.

Other statistics of note for SIT include 15% of our 2014 students identifying as Māori, ahead of 12% of the Southland population identifying as Māori and 3% of the student body identifying as Pacific Islander against 2% of the Southland population identifying as Pacific Islander.

International student growth of 20% in 2014 continues SIT’s 6 year trend of double figure growth in International student numbers, an achievement which pays major dividends for SIT’s domestic students as well as the broader community.

Highlights in Summary ª Exceeded 100% of SAC domestic EFTS allocation. ª 20% growth in International students to 664 EFTS

(1,058 students). ª Approval and delivery of the first papers of a

Postgraduate Diploma in Information Technology. ª Accreditation and approval of a Bachelor of Applied

Management. ª Hosting for a second consecutive year the 2 day sector-

wide Ako Aotearoa National Teaching and Learning Conference in October.

ª 100% pass rate in the external state nursing finals examination by Bachelor of Nursing graduates.

ª Completion of stage 1 of the Spey Street student apartments and Queenstown apartments and completion of stage 2 of the Spey Street student apartments at the end of 2014.

ª Benchmarking of graduate destination results through a collaborative survey with Otago and Aoraki Polytechnics and Eastern Institute of Technology.

ª Benchmarking of our student satisfaction survey with Otago Polytechnic and a shift to online surveying.

ª Review of SIT Academic Board structure and implementation of changes.

ª Recognition of long serving SIT Council member and Ngāi Tahu Kaumātua Michael Skerrett with the Queen’s Service Medal for services to Māori and the community in the New Year’s Honours List.

ª Recognition of SIT Kaumātua, the late Koro Riki Cherrington with the awarding of an Officer of the NZ Order of Merit in the Queen’s Birthday Honours List.

ª Three graduates were finalists in the NZ Tropfest Short Films Festival with one of the three, Dan Pettit winning the best animated film award.

ª Brandon Dunn runner up for the International Gaming Division and winner of Oceania Division of Computer Graphics International Student of the Year Awards with his showreel and digital paintings.

ª Development of a teaching and learning guide for Māori and Pacific students.

ª The launch of SIT’s own distinctive graduation regalia with a subtle reflection of our Māori and Scottish heritages.

ª First institute-wide certificate level graduation ceremonies mid year and end of year.

ª First Christchurch graduation ceremony. ª Southland start-up weekend held at SIT in August with

80% of the 60 participants being SIT students.

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ª Relocation of the Southland Chamber of Commerce and the Otago Southland Employers’ Association onto SIT Campus.

ª SIT co-sponsored with Otago University the inaugural Justice French presentation.

ª SIT awarded the Export Southland Corporate Recognition Award presented by the Minister for Economic Development Steven Joyce. The Award recognised SIT and tertiary education as a business which contributes to the Southland economy as an export earner.

ª SIT was the most successful tertiary institute in attracting 3 Indian sports scholarship recipients under the NZ Government Sports Scholarship Scheme launched in 2014.

Financial and FacilitiesThe surplus in 2014 was just ahead of budget but fell short of a 3% return. Over delivery of domestic students contributed to this reduction on the 2013 surplus.

Considerable capital works continued in 2014 keeping SIT’s student accommodation, teaching and workshop spaces and equipment at a high standard for staff, students and the associated communities to use.

SIT consistently achieves well in terms of academic and employment outcomes, student satisfaction as well as financial results and in 2014 continued this trend.

The close alignment of SIT operations through the collaborative work of staff and students with local industries and community is the key to SIT’s success across a broad range of parameters.

In 2014 SIT again remained firmly focussed on delivering quality education and training to our students to ensure our graduates had every opportunity to gain employment in local industries and meet the needs of these industries we serve.

I congratulate all staff on the results achieved in 2014 and make special mention of the leadership shown by SIT’s Management Team.

On behalf of staff I acknowledge the contribution of our Council and in particular Chairperson Sarah Brown and Deputy Chair Peter Heenan for their sound governance of SIT.

Penny SimmondsChief Executive

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Statement of Responsibility

The Council and management are responsible for the preparation of the Southern Institute of Technology andgroup’s financial statements and statement of service performance, and for the judgements made inthem.

The Council and management of the Southern Institute of Technology have the responsibility for establishing andmaintaining a system of internal control designed to provide reasonable assurance as to the integrityand reliability of financial reporting.

In the Council and management’s opinion, these financial statements and statement of serviceperformance fairly reflect the financial position and operations of the Southern Institute of Technology and groupfor the year ended 31 December 2014.

Sarah BrownCHAIRPERSON OF COUNCIL

Penny SimmondsCHIEF EXECUTIVE

20th April 2015

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Governance and Management

SIT prides itself on its strong governance and management structure which underpins the institute and is focussed on the provision of high quality, fiscally

responsible, educational programmes that meet industry, community and learner needs.

Committees of Council

Finance and Audit Committee

This committee monitors financial performance and forecast outcomes and makes appropriate enquires into internal control systems and mechanisms. It has direct involvement in key strategic decisions that affect the financial position of SIT and has a delegated responsibility to oversee the external and internal audit process.

Academic BoardThe Academic Board is responsible to the SIT Council through the Chief Executive for the academic policies, direction and development of the institute, and advises and responds to Council and the Chief Executive on all academic matters: develops, maintains and reviews academic policies; ratifies those programmes to be included on the TEC database; approves and monitors programmes against established standards; establishes and approves the terms of reference for any subcommittees or task forces; maintains oversight of Teaching and Learning Boards of Studies, Advisory Committees and Faculty Research Committees.

Ethics CommitteeThis committee is charged with establishing and maintaining a code of ethical conduct for research undertaken at SIT and approving or resolving of ethical issues arising from SIT staff research activity.

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+

Sarah Brown (Chair)Community Appointment

Appointed as Chair by Tertiary Education Minister Steven Joyce in August 2011, Sarah has served as a community representative on the Council since 2006. Currently an Associate with Tavendale & Partners, Sarah has also worked in human resources at New Zealand Aluminium Smelters.Sarah is a member of the Institute of Directors, director of Electricity Invercargill Ltd, and Southern Lakes English College, and board member of Kindergarten South and Pylon Ltd.

Peter JacksonCommunity Appointment

Peter is a Director of H2O Design Ltd and is an accredited member of the Institute of Directors. Peter is also Deputy Chair of the Plumbers, Gasfitters and Drainlayers Board, Deputy Chair of Site Safe New Zealand, Director of New Zealand Plumbers’ Merchants/Plumbing World/Patton Refrigeration taking responsibility for governance and compliance and Deputy Chair of the Audit Committee. Peter is trustee of the Apprentice Training Trust and New Zealand’s representative on the World Plumbing Council.

Penny SimmondsCommunity Appointment

SIT Chief Executive Penny Simmonds is a member of the ITPNZ Board and serves on many voluntary boards in the community. Penny is a trustee of the Southland Outdoor Stadium Trust and Film Otago Southland, board member of the Community Trust of Southland, Venture Southland and Hockey Southland. At a national level Penny is President of New Zealand Hockey.

Peter Heenan (Deputy Chair)Ministerial Appointment

Peter Heenan has a strong background in business and community. Peter is the Executive Director of Finance for the HW Richardson Group, a trustee of the Southland Hospice Charitable Trust and former chairperson of both the Southland Boys’ High School and Netball Southland Boards. He was appointed as Deputy Chair by the Minister in 2011.

Dean AddieCommunity Appointment

Dean is the CEO of EIS Automation and Electrical, a Southland based organisation. Dean is a member of the Institute of Directors and a Fellow of the New Zealand Institute of Management. Dean holds other board and trustee roles including: National Board Member of New Zealand Institute of Management; Deputy Chair of Southland Foundation for Youth Development; Chair of Dog Island Motu Piu Trust and a board member of Southland Chamber of Commerce.

Jeff GrantMinisterial Appointment

Jeff farms deer, beef and sheep at Balfour and brings extensive agribusiness and national governance experience to the council. A former Member of Parliament, Jeff is chairman of the board of directors for OSPRI New Zealand, NAIT Ltd, TB Free Ltd, Milford Sound Development Authority, Southland Shared Services and Mt Linton Station Ltd; He is also a director of SBS Bank, Finance Now Ltd, AgResearch and Cooper Valley Holdings. Jeff has held directorships in agribusiness including former chair of the NZ Meat Board, Meat and Wool New Zealand and the Primary Industry Council.

Michael SkerrettMinisterial Appointment

Michael was recognised by SIT with the institute’s first Honorary Fellowship in 2013, and was also awarded the Queen’s Service Medal (QSM) in the 2014 New Year Honours List for his leadership and contribution to Maori and the Southland community. Michel is Kaupapa Taiao Manager of Te Ao Marama Inc., Chairman of Waihopai Runaka, Waihopai Runaka representative to Te Runanga o Ngai Tahu, Chair of Murihku Holdings, Waihopai Runaka Holdings and Chair of Kaitiaki Ropu o Murihiku.

Tim WardMinisterial Appointment

Tim Ward brings a range of business and community experience to the table. He is Managing Partner of BDO Invercargill and former chair of BDO’s national organisation. Tim is an elected member and Deputy Chair on the Southern District Health Board, where he also chairs the Audit and Risk Committee. He is also the Diocesan appointment to Verdon College’s Board of Trustees.

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Council Members

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Management Team

Penny SimmondsChief Executive

Amanda KnowlesHead of Faculty

New Media, Arts and Business

Patsy EadeHuman Resources/

Infrastructure Manager

Bharat GuhaDeputy Chief Executive - Corporate

Chief Financial Officer

Teri McClellandHead of Faculty

SIT2LRN

Jackie FluteyHead of Faculty (Acting)

SIT2LRNfrom 6 January 2014

Maree HowdenDeputy Chief Executive - Academic

Head of FacultyHealth, Humanities and

Computing

Mike GrumballHead of Faculty

Trades and Technology

Lucille HatleyHead of Faculty (Acting)


from 3 June 2014

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Student Achievement

Graduate Outcomes: 98.5% employed or studyingThe Graduate Outcome Survey was distributed in July 2014, approximately 8 months after students completed their 2013 qualifications. The survey explored the graduates’ satisfaction with their experiences at SIT, their success in finding employment following graduation and the degree to which the skills and knowledge they had gained prepared them for their chosen careers.

Results show that 98.5 per cent of graduates were working or undertaking further study, with the majority enrolled at SIT for further study. Eighty five per cent of graduates were employed immediately after study with a median gross annual salary of $37,440.

Nearly all the graduates were satisfied with the quality of their programme with 94 per cent expressing overall satisfaction, and a large majority (93%) confirmed that they would recommend their programme to others and considered the programme represented good value for money.

The response rate was 48 per cent, ensuring a valid sample. The results are not able to be compared with the outcomes of SIT’s 2013 Graduate Destination Survey because the survey questionnaire and process were amended to provide for the inclusion of SIT in a survey benchmarking exercise led by Otago Polytechnic with other institutes of technology.

Graduate Outcome Benchmarking ReportFor the first time in 2014 SIT participated in a graduate outcome benchmarking exercise with four other ITPs.

The report was prepared from data collected from questionnaires administered by the Organisational Researcher on behalf of the participating institutions. The report also compared the selected responses received from the participating institutions against those reported in the 2013 Australian Graduate Survey (AGS) of domestic Australian university graduates. The overall response rate was 43% with SIT’s response at 48%.

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SIT performed very well in the comparative exercise and rated highly in the following categories:

ª Graduates’ overall satisfaction with the programme – 94% (average 93%)

ª Would recommend the programme to others - 93% (average 92%)

ª Programme represented value for money- 93% (average 89%)

ª Graduates in employment- 85% (average 80%) ª Graduates studying or enrolled to study- 49%

(average 47%)

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Graduates Employed at SBS BankSIT Bachelor of Information Technology graduates Kent McNamara and Andrew Hanley developed an interest in computers later in life.

The pair were drawn to the industry, having spent years travelling separate career paths, and both now work at SBS Bank, the recipient of Financial Institution of the Year in 2011 and 2012.

A born and bred Southlander, Kent initially undertook a career in roofing after his secondary education at Southland Boys’ High School. His need to explore had him travelling throughout New Zealand for 10 years working in the trades sector before he returned to Invercargill and gained employment in an internet-based company. It was here Kent’s passion for IT was first ignited.

Deciding that unless he obtained a recognised qualification in IT his career options were limited, Kent enrolled to study the Bachelor of Information Technology programme at SIT.

Programme Manager, Ken Sutton had an industry-wide reputation and Kent had heard great things about both him and the programme.

In contrast, Andrew was born and raised in Auckland where after leaving school he worked for seven years in the New Zealand Customs Service at Auckland Airport. An assessment of his career options left Andrew feeling the need for a change of direction. He decided the rapidly expanding and exciting IT sector was the most inviting career option and sought out IT degree opportunities.

The southern charm of his Invercargill-born wife, the Zero Fees Scheme and affordable house prices, had Andrew hooked and he signed up to study at SIT.

The change of career into the IT industry paid dividends when both Kent and Andrew were offered positions as Programme Analysts at SBS Bank halfway through the third year of their IT degree in 2013. As analyst programmers, Kent and Andrew have the responsibility of developing and enhancing the IT system for SBS Bank, creating IT solutions to meet the business needs of the company and its stakeholders.

SBS Bank Development Manager Craig Escott said both Kent and Andrew had fitted perfectly into the bank’s Business Solutions team.

“The SIT graduates we employ at SBS Bank always display a number of core skills we require as a business. They’re well rounded in technical skills, well presented and have great communication skills which are vital in any business.”Learning how to study and retain information Kent explained is one of the greatest skills he took out of his SIT IT degree. This skill had enabled him to pick up new initiatives and adapt quickly in the fast-paced financial industry.

Andrew said that his career ambitions were to continue with SBS Bank, keep developing his knowledge of IT and adapting to changes in the industry.

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Student Achievement

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World Skills Win for SIT GraduateSIT Certificate in Mechanical Engineering graduate Nick Bastiaansen’s passion for engineering evolved from “backyard engineering with Dad”.

“I have always enjoyed building stuff and this was just a natural progression into doing it as a full time job.”

Nick chose SIT because it was local and the fabrication and machine shops were modern. Nick undertook three days a week onsite at SIT and then two days at Alliance Group, before he was offered an apprenticeship at dairy giant Fonterra.

“SIT gave me the basics that I needed to be able to step into a workshop and begin working already knowing how to use a lot of the engineering equipment,” Nick said.

In 2014 Nick won the National World Skills title for Engineering and has been chosen to represent New Zealand as part of the Tool Blacks Team that will compete in Brazil in August 2015. Nick said a highlight of his career so far is when Fonterra CEO Theo Spierings congratulated him on his World Skills win in the Fonterra staff newsletter.

Nick’s supervisor Stacy Lines, Southern Operations Maintenance Manager said Nick’s SIT training showed through.“There is clear evidence of the benefits that Nick gained from SIT. The fundamental skill competencies learnt have allowed Nick to settle in his apprenticeship and deliver value to both himself and Fonterra. Demonstration of this is his achievements to date both at work and applying those trade skills in a competitive sense through World Skills,” Stacy says.

Nick’s plans for the future are to complete SIT’s New Zealand Diploma in Engineering and become a fully qualified engineer. He also hopes to take out the Engineering World Skills title in Brazil 2015.

Nursing Graduate’s Success

Southern Institute of Technology Bachelor of Nursing graduate Amelia Luxton came straight to SIT after completing Year 13 at Gore High School. Amelia’s passion for nursing grew from her high school career experience days as she loved being in the hospital setting and making an impact on people’s lives. Amelia chose SIT as it was close to home and the Zero Fees Scheme.

“Our tutors were great, very supportive. I found it very hands on, with lots of clinical hours compared to other nursing schools. In my final year we had classes about how to construct a CV and cover letter, as well as practice interviews which is something that I still find extremely helpful today.”

Amelia said the highlights of her study were her clinical placements in Gore, Queenstown and rural areas around Southland.

After graduating the Bachelor of Nursing at SIT Amelia was offered graduate positions at Gore Hospital, Dunedin Public Hospital, Nelson Hospital and Tweed Hospital in Australia. Amelia decided to take up the overseas opportunity in Australia working for NSW Health at Tweed Hospital in a 12 month programme that consisted of 6 months in a Coronary Care and General Medical Unit and 6 months in a Renal, Oncology and General Medical Unit. On completing the new graduate position Amelia was successful in gaining a second year post graduate programme specializing in palliative care at the Tweed Hospital.

In 2014 Amelia accepted employment as a Registered Nurse in the General Medical Unit which is a new $1.76 billion, 750 bed Gold Coast University Hospital, one of Queensland’s largest clinical teaching and research facilities. Amelia’s ambitions for the next 5 years are to move back to New Zealand and study the Postgraduate Diploma in Health Science at SIT and become a Nurse Manager.

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Student Achievement

Nick Bastiaansen and Southern Operations Maintenance Manager Stacy Lines on Fonterra site.

Nursing Graduate - Amelia Luxton

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Student Achievement

Academic AchievementContinued Increases in Educational Performance IndicatorsOver the past five years SIT has continued to achieve year-on-year percentage increases in course and qualification completion results based on the Educational Performance Indicators produced by TEC.

Our 2014 indicative results show that SIT has exceeded targets in almost every area, achieving 79% in overall course completions (7th in the sector, and at the sector median) and 73% in overall qualification completions (5th in the sector and 8% above the sector median).

SIT considers that its ongoing strategies to assist students to enhance their educational performance are continuing to achieve success. These strategies include additional student support, strengthening of interviewing, testing and acceptance procedures, improving use of information for more effective monitoring of student progress, and strengthening of staff training and support.

Maori, Pasifika and Under 25 Students’ ImprovementsThe 2014 Educational Performance Indicators for Maori, Pasifika and Under 25 students confirm that targets have been met and solid improvements made in the majority of performance categories.

Maori students have improved in almost every category with Level 1-3 course completions exceeding the target by 10% and qualification completions by 13%. In Level 4 and above programmes Maori students surpassed the target in both course and qualification completions. The target of 8% of Maori participation at level 1-3 was not met, however the 5% participation level was similar to that achieved in 2013 (and it is noted these results are still provisional). The level 4 and above participation results met the target.

SIT’s Under 25 learners showed significant improvements in almost every category, with targets well surpassed at all levels; for example the level 1-3 course completions exceeded the target by 13% and the level 4 and above by 8%. Similar successes were achieved in the qualification completions category. Participation targets were not achieved (but it is noted that results are still provisional).

Pasifika students exceeded the targets set in qualification

completions, and in level 1-3 course completions.

The disparity between Maori and non-Maori results has shown a marked improvement from 2013 with the gap continuing to diminish. SIT is pleased that its strategies to enhance Maori students’ learning have reaped good results. SIT has developed a draft Maori Strategy for consultation with local iwi and expects that further implementation of the confirmed strategies will continue to enhance the educational performance of our Maori students.

While the majority of Pasifika results have improved, the differential between Pasifika and non-Pasifika students’ results remains. To endeavour to close the gap SIT has commenced initial consultation with Pasifika leaders, and is developing a draft Pasifika Strategy to be used for further consultation with the Pasifika community. SIT feels confident that by working more closely with the Pasifika community, learning opportunities and experiences for Pasifika students will be enhanced and the disparity will continue to diminish.

Improved retentionOverall retention figures have improved due to strategies employed by SIT (referred to above). SIT’s retention rates would be further improved if TEC were able to acknowledge the large numbers of trades students who transition to apprenticeships and relevant ITO training and who are classified as non- completions. SIT believes that these students should be classified as successful completions because they have achieved the employment outcomes desired by the government. Should the regulations around this category be changed to reflect reality, SIT’s retention results would increase by 14%.

ProgressionSIT continues to show good progression rates of 35% for level 1-3 programmes. SIT’s programme development over many years has been strategically focussed on creating clusters of programmes enabling staircasing opportunities both within SIT and onto other partnership organisations.

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Student Achievement

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Educational participation and achievement outcomes (% of total EFTS)SAC-funded students only – Provisional results

Participation – Proportion Enrolled

2013 2014 Target 2014

Maori %

All levels 15 16 15

Level 1-3 6 8 5

Level 4 and above 9 9 9

Under 25 %

All levels 42 45 37

Level 1-3 16 17 12


Pasifika %

All levels 2 2 3

Level 1-3 1 2 1


Successful Course Completion Rates

2013 2014 Target 2014

Overall %

All levels 72 72 79

Level 1-3 73 67 80


Maori %

All levels 64 70 74

Level 1-3 66 65 75


Under 25 %

All levels 70 71 80

Level 1-3 71 65 78


Pasifika %

All levels 67 68 65

Level 1-3 72 63 71


Successful Qualification Completion Rates

2013 2014 Target 2014

Overall %

All levels 66 61 73

Level 1-3 65 56 70


Maori %

All levels 57 56 66

Level 1-3 56 52 65


Under 25 %

All levels 63 54 77

Level 1-3 61 52 68


Pasifika %

All levels 67 50 60

Level 1-3 60 48 58


Retention, Progression and Literacy & Numeracy Rates

2013 2014 Target 2014

Retention %

All levels 58 49 66

Progression %

Level 1-3 44 40 35

Literacy and Numeracy %

Level 1-3 81 90 72

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Mobile KTV’s Innovative Concept Wins Business Contest

Business, industry and education merged when SIT students went head to head in the Postgraduate Diploma in Business Enterprise 2014 Start Up Week. Nine teams took part, and each team had to put together a business portfolio incorporating defining the business value proposition, identifying who would be their target customer segment, testing the business concept and validating it with real people, building prototypes or models of their business concept, and pitch and present their business to the guest judges.Guest judges for the event were SIT Chief Executive Penny Simmonds, Venture Southland Chief Executive Paul Casson, and Chamber of Commerce Chief Executive Sarah Hannan. The teams were mentored by local Southland business leaders throughout the competition to help them with putting together their business ideas. Mentors were XingDong Yan, Chief Executive of Judith Cambridge Chartered Accountants, Avinash Varghese Chief Executive of Pride Property Management, Peter Teong, Director of Gates Global Consultant Tyros Pte Ltd, Singapore.Team Mobile KTV took out the event with their business concept “Singing Plus”. The concept was centred on entertainment through Karaoke TV with a listing of multi-cultural music and songs, a wide range of food catering options including cuisines from different cultures and professional party equipment and decorations.SIT Chief Executive Penny Simmonds said “The judging panel were really impressed with the standard of the presentations and the novel business ideas that came through. We felt that there were at least 4 – 5 business concepts that could almost immediately be launched in Southland. The winning concept was a very clever appreciation of the right time and place to introduce a niche product of total entertainment - music, food, decorations from various cultures that are currently growing in Invercargill.”

Top Digital Media Award for SIT StudentBachelor of Digital Media graduate Brandon Dunn came to SIT after his secondary schooling at Aparima College in Riverton. Brandon chose SIT because being able to draw for a living was always his dream and he believed that the Bachelor of Digital Media programme at SIT would provide him with the skills that would help him excel in that industry. During his studies at SIT Brandon edged off international digital media specialists at the Autodesk CG Student Awards to claim the 2014 Oceania Next-Gen Gaming Boot Camp Award. Dunn submitted a show reel portfolio to enter the competition and came away with a six month paid internship at Gameloft in Auckland. Brandon said that being able to get such an opportunity to “put my foot in the door was a huge step towards making my dreams a reality”. Brandon said he loved his experience at SIT. He considered that the animation tutor had made a huge impact on his ability as an animator and the skills he gained during the programme would hold him in good stead upon graduation. Brandon’s dream career after graduating from SIT is to work as a concept artist and freelance Illustrator, designing and creating animation and characters for console, computer and smart phone games.

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Student Achievement

Class activity at Tauira Tautoko

Student Achievement

Maori StudentsTertiary Education StrategyAn important goal of the Tertiary Education Strategy 2010-2015 is to increase the number of Maori students enjoying success at higher levels. Fourteen per cent of SIT’s students identify as Maori, a figure higher than Maori representation in the Southland 2013 census population figures (12.44%). The Maori population in Southland has grown from 10,422 between 2006 and 2013 – at a slightly slower rate than the overall Southland population which has grown from 90,873 to 93,342. SIT’s longstanding, collaborative relationships with the Maori community and its strategic established relationship with Te Wananga o Aotearoa have been influential factors in assisting with attracting Maori into tertiary education and supporting students to achieve.

Programme Selection and PerformanceIn 2014, 41% of Maori students were enrolled in level 1-3 programmes and 58% were enrolled in level 4 and above. Students were well represented in subject areas in demand by industry, with the largest group studying towards business programmes (21%), and the next largest group enrolled in trades, engineering and technology programmes (15%). Studying te reo Maori was the next most popular choice (14%), followed by equal numbers in health and social services and arts (9%).

Adult education was chosen by 7% of Maori students, tikanga by 6%, occupational health and safety and sport and recreation by 5%, primary industries by 4% and environmental management by 3%.

Provisional 2014 data shows a significant improvement from 2013 in the results of Maori students, with 74% successfully completing courses, and over 66% successfully completing qualifications. SIT is committed to working with the Maori community and students to further improve educational performance, and has developed a draft Maori Strategy to strengthen consultation with iwi and to support Maori students in achieving their study goals.

Tauira TautokoSIT’s Tauira Tautoko (Maori Student Support Centre) is located at Te Pakiaka on the Forth Street area of the SIT campus. Tauira Tautoko is managed by the Nga Kete Matauranga Pounamu Charitable Trust to ensure strong pastoral and pan-iwi support for Maori students.

Tauira Tautoko supports Maori learners through the provision of facilities, resources, staffing, support and cultural services in a safe, encouraging environment targeted to improve Maori achievement. The following services are provided:

ª Supportive areas for study ª Computer suite access ª Study groups and access to academic support ª Cultural advice and activities – kaumatua support,

weekly waiata sessions, access to elders, kapa haka, waka toi, Matariki celebrations, Te Reo Maori Week

ª Access and connection to local Iwi /Marae and cultural events

ª Student support facilities – cooking support, shared lunches, cultural food exchanges

ª Regular community guest speakers ª Access to Justice of the Peace ª Phone home service ª Information on health and social services available in

the community

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Ngā Manu Kōrero Competition co-sponsored by SITSIT was proud to co-sponsor the Ngā Manu Kōrero Otago/Southland Regional Secondary School Speech Competition held at the Civic Theatre in June. The growing popularity of the contest was indicated through a significant rise in participants, with 42 students participating in 2014 compared to 25 students in 2013.SIT has a rich history of working closely with the Maori community which is evident through its delivery of Maori language and tikanga programmes in Southland in conjunction with Te Wānanga o Aotearoa and the institute was delighted to assist young Maori speechmakers within the southern region to find their voice.

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Student Achievement

Partnership with Te Wānanga o Aotearoa (TWoA)SIT’s longstanding strategic partnership with TWoA was established to ensure that the delivery of Maori programmes at SIT is relevant and culturally appropriate, and to enable staircasing opportunities for Maori students to progress to higher levels of training. TWoA delivers the following programmes at SIT:

ª Certificate in Te Ara Reo Māori ª Certificate in Advanced Te Ara Reo Māori ª Certificate in Kāwai Raupapa ª Certificate in Te Korero Arataki Manu Korero ª Certificate in Money Management ª Certificate in Small Business Management ª Certificate in Tikanga Māori ª Certificate in Computing (VLC) ª Diploma in Te Arataki Manu Kōrero ª Diploma in Te Ara Reo Māori

Te Wānanga o Aotearoa staff members

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Two Graduation FirstsThe inaugural SIT Certificate Graduation Ceremony was held in Stadium Southland in August 2014. The purpose of introducing the event was to celebrate successful programme completion for graduates who had completed a certificate level qualification. The following programmes were represented at the graduation: hospitality, organic horticulture, hairdressing, animal care science, business administration, construction, electrical, engineering and plumbing. Guest speakers for the evening were His Worship the Mayor of Invercargill Tim Shadbolt and Dean Addie Chief Executive of EIS and SIT Council member.

SIT Chief Executive Penny Simmonds commented “This is the first time we have had an institute-wide graduation ceremony in Invercargill for our certificate level programmes and we are pleased to be celebrating the certificate graduates’ success in this way. Many of these graduates will be moving onto apprenticeships and providing much needed support skills to the primary sector in the south”.

On 19th December, 133 students graduated at the inaugural Graduation Ceremony in Christchurch. Guest speaker was Phil Burns, former manager of the Christchurch Campus and His Worship the Mayor of Invercargill Tim Shadbolt.

Student Achievement

Student Satisfaction Survey: 93% satisfiedThe purpose of the Student Satisfaction Survey is to collect information on the overall experience of students, which assists SIT to improve the programmes and services it provides.

There were two main changes in the Student Satisfaction Survey in 2014:

ª The provision of an online option via Blackboard in addition to the use of hardcopy forms

ª A change from using the average satisfaction rating to using percentages to align with the methodology used by some other institutes of technology and polytechnics to allow for benchmarking exercises.

Overall, 93% of the students were satisfied with the programmes they were enrolled in, compared to 4.2 (average satisfaction rating) in 2013. In addition, SIT has continued its satisfaction rating of more than 90% in the following key areas:

ª Student support services such as Health Nurse, Counsellor, Learning Assistance Tutors, Peer Support Scheme, Disability Liaison Officer, Te Pakiaka (Maori Student Support Centre), Student Activities Officer and Library Staff

ª Library, equipment and resources ª Course content, workload, assessments and feedback

on academic and administrative staffPlans for 2015 include working with Otago Polytechnic to produce a student satisfaction benchmarking report to provide a comparison between the two institutions.

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- 23 -Guests and staff at the inaugural Christchurch Graduation Ceremony

Postgraduate Programme Assists Augmented Reality Start Up Business

Born in Germany SIT Postgraduate Diploma in Business Enterprise student Melanie Langlotz came to New Zealand to work at a film post-production facility in Auckland after her career in film had taken her all around the UK and Europe. Dramatic changes in the film industry led Melanie to pursue a career in augmented reality and take up the role as Business Development Manager for Augview.

Melanie came across SIT and the Zero Fees Scheme while looking at education options online and after identifying the Postgraduate Diploma in Business Enterprise via SIT2LRN distance learning Melanie knew this was the perfect professional development opportunity to complement her new business development role.

Melanie found the programme gave her the skills and knowledge to bring her start up project in partnership with the Otorohanga District Development Board and the Otorohanga Kiwi House to fruition. The smart device app which simulates augmented reality was developed as part of Melanie’s Augview project and features virtual reality interactive Moa as a tourist attraction.

Melanie’s vision for the future is to continue the expansion of the augmented reality app and enhance the capabilities of virtual reality.

SIT Graduate in Australian Hair Fashion Award Finals

23 year old SIT hairdressing graduate Chloe Hegan has been selected for the Australian Hair Fashion Awards finals to be held 31 March 2015, having been chosen as one of six finalists in the Avant Garde section. The Australian Hair Fashion Awards (AHFA) are in their 22nd year and are celebrated as Australia’s largest independent hairdressing awards.

Chloe was chosen as one of the 6 finalists in the Avant Garde section which represents the art of hair, the head as our canvas with no limitations. Chloe’s team at her Australian hair salon are also in the finals competing for Artistic Team of the year. Hegan also won the Hairstylist Society Victorian Hairdresser of the year in August 2013.

Chloe credits her hairdressing tutors at Southern Institute of Technology for their dedication to high level education that she believes is the platform for her achievements.

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Student Achievement

Chloe Hegan, Australian Hair Fashion Award Finalist

Chief Executive Penny Simmonds awards the Diploma in Professional Chef Practice to graduate Jesse Hapuku

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Support Services

Disability Liaison Service

In 2014, 553 SIT students declared disability on enrolment, and of these 152 accessed the Disability Liaison Service throughout the year (27%). Many successes were

achieved by students throughout the year including receiving awards at the annual SIT Award Ceremony and very good student retention and programme completions.

Student achievements ª 85% of students who enrolled identifying disability were

retained in their programme ª 74% of students who enrolled identifying disability

successfully completed their programme ª 4 students who accessed Disability Liaison Service

were recipients of excellence awards at the SIT Award Ceremony, December 2014

ª 18 students who accessed Disability Liaison Service were recipients of certificates at the Certificate Graduation Ceremony, December 2014

ª 15 students who accessed Disability Liaison Service were recipients of a Diploma or Bachelor qualification at the Graduation Ceremony, December 2014.

Student feedback ª 23 of the students who received support (15%)

responded to the Disability Liaison Service Survey ª Survey respondents identified teaching staff and word

of mouth, as the most common source of information about the Disability Liaison Service

ª 100% of the survey respondents reported the service enabled them to continue in their course

ª 95% of the survey respondents reported the service enabled them to better meet their educational goals

Student support ª 32 students were screened for Irlens Syndrome, and

29 tested positive. Alternative formats were provided to those students to better enable them to read their course work, 35 students in total received course information in an alternative format

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ª 11 students were issued with on-campus parking permits

ª 46 pieces of equipment were loaned to support 29 students learning needs

ª 1121 staff support hours were delivered to 31 students for reader/writer support, or exam accommodations. This support was in place in Invercargill, Gore, Queenstown and for some SIT2LRN students elsewhere in New Zealand

ª 43 staff attended the training workshop on Human Rights

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Youth Guarantee Scheme

2014 was the fifth and biggest year of SIT’s involvement in the Youth Guarantee Scheme, with 104 students enrolled in the scheme at the Invercargill and

Christchurch campuses, and 34 students from various Southland High Schools taking part in our secondary school and trades partnership, the Hokonui Tertiary High School.

Changes to the scheme in 2014 increased the support available to 16 and 17 year olds to include 18 and 19 year olds. An additional allocation of funding mid-year allowed for more students to participate in the scheme, and resulted in the addition of another dedicated staff member to assist with the mentoring and pastoral care.

Students accepted onto the scheme received tailored support throughout their studies. They attended regular meetings with their Student Support Officer to set goals, discuss progress and address any issues that may have been hindering achievement. Student surveys indicated the pastoral care received was valued very highly by the students. YGS staff worked alongside the students, whanau, tutors, SIT Support Services and where necessary external agencies to achieve the best possible outcome for the students.

Achievements:81% of Youth Guarantee students were retained in study and 59% percent graduated – up 9% from the previous year. 57% of Youth Guarantee students who left prior to completing their course of study did so due to obtaining apprenticeships or related employment.

69% of Youth Guarantee Scheme students went on to further study, apprenticeships or employment.

9 Youth Guarantee Scheme students received awards at the SIT Award Ceremony including 5 who were named “Top Student” for their programme.

Other Student Services

In addition to those detailed above, SIT provides the following student services which were included in the student satisfaction survey and all received ratings of

above 90% for 2014:

ª Learning Assistance Unit ª Health Nurse and Counsellors ª Employment Officer ª Student Activities Officers ª Library ª Peer Support

Students enjoying Orientation Week

Equal Employment OpportunitiesSIT has provided individual reports on the following:

ª Maori Students - refer page 21 ª Students with Disabilities - refer page 26 ª Youth Guarantee Students - refer page 27 ª International Students - refer pages 28-31 ª Staff Training and Development - refer pages 39-40

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International Students

Continued Growth in International Student NumbersIn September 2011, the Government released its “Leadership Statement for International Education”. This document proposed a set of “stretch goals” and identified areas where the tertiary education sector could make significant contributions to these goals. Specifically, the Leadership Statement stated: “International education is a sector which has great potential to grow export earnings and to contribute more widely to our trade, innovation and research goals, together with expanding tourism and improving international connections.”

SIT has been one of the leading ITPs to show strong growth in its international student population over the past five years, and is projecting further growth in the future on the basis of this strong foundation. SIT’s year-on-year growth in its international student population has been strongly supported by our local industries and communities who see the need for skilled workers, population growth, enhanced tourism opportunities, and exposing both students and local businesses to the global market. In Southland SIT works collaboratively with Venture Southland and the local secondary schools as part of the Education Southland Consortium. This consortium has been commended by Education New Zealand as a successful model for regional New Zealand.

In 2014, SIT hosted 1058 international students, over 1,000 New Zealand permanent residents and 42 staff members from various countries, including: China, India, Sri Lanka, Nepal, Japan, the Philippines, Malaysia, Indonesia, the United States of America, the United Kingdom, Germany, Austria, Brazil, Vietnam, Korea, South Africa and Zimbabwe.

SIT has achieved the following percentage growth in the number of international students enrolled at SIT from 2011 – 2014:

ª 2011 – 2012: 10% ª 2012 – 2013: 10% ª 2013 - 2014: 20%

SIT’s International Success Recognised by Export SouthlandSIT’s strong market position in the international tertiary education sector was recognised at the Export Southland Awards’ Dinner in September 2014.

SIT won the title prize of Export Southland Corporate Recognition Winner for excellence and outstanding contribution to the export sector in Southland. At that time 870 international students were enrolled at SIT from over 33 different countries with China being the major market, closely followed by India, with growing markets in Sri Lanka, Vietnam and Germany .

In 2013 the total economic impact of SIT international students on Southland was $19.9 million, with a GDP contribution of $10 million and an employment contribution of 126 FTE.

SIT Chief Executive Penny Simmonds said that she was delighted with the recognition of international students as a significant export earner for Southland.

SIT Deputy CE Bharat Guha (right) showing award to Postgraduate Diploma in Business Enterprise international students

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Accommodation for International Students in Queenstown and Invercargill

In order to ensure SIT’s increasing international student populations have appropriate accommodation choices, especially in areas where accommodation is at a premium, SIT has built student

accommodation units in Invercargill and in Queenstown within the perimeter of Remarkables Park where the SIT campus is located.

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Expansion of Chinese Partnership

In 2014 SIT put plans in place to expand its strong five year old relationship with Hubei University of Education (HUE) based in Hubei, China. The initial agreement was for the delivery of SIT’s English Language programme onsite at HUE and for the delivery of the Diploma in Hotel and Tourism Management programme whereby students can transfer to Invercargill for a final year of study to gain the Bachelor of Hotel Management. Sixty-five HUE students were undertaking programmes through this partnership in 2014.

SIT Deputy Chief Executive Corporate Bharat Guha, International Marketing Manager (China) Michelle Zhao, and SIT International Consultant for China Dr Limin Xiong met with representatives from HUE in May 2014. Mr Guha reported that there had been a good response to the delivery of the SIT programmes from the people of Hubei, and that SIT would explore the next steps to select further appropriate programmes to be delivered through this partnership.

Programmes for consideration were the Bachelor of Information Technology and Certificate in Construction. HUE staff were particularly interested in the opportunity for students to pathway to the Postgraduate Diploma in Information Technology upon completion of the Bachelor of Information Technology at SIT.

Six lecturers from HUE spent two months at SIT in July to gain an understanding of the programmes to be delivered in Hubei. This was followed by a visit to Hubei by Teri McClelland, Head of Faculty for SIT’s distance learning faculty, to discuss the development details for the programmes.


Building Educational Relationships with Key International PartnersSIT has continued to build and add value to its relationships with key international partners. For example, SIT’s partnership with Hochschule für Wirtschaft und Umwelt Nürtingen-Geislingen (Nürtingen–Geislingen University) (HfWU) in Germany has resulted in HfWU students coming to New Zealand for the past three years and enrolling in programmes such as:

ª Bachelor of Environmental Management ª Bachelor of Sport and Exercise ª Bachelor of Hotel Management ª Postgraduate Diploma in Business Enterprise

SIT has also further cemented its relationship with Hubei University of Education (HUE) in Wuhan, China, gaining offshore accreditation and approval for three of SIT’s qualifications to be taught at HUE and the students then coming to SIT for their final year. Staff exchanges and training have occurred between the two institutions for the past three years and the first students to come through this partnership are due to commence study at SIT in February 2015. SIT is also in the process of extending this relationship to other areas.

SIT has developed partnerships with the following international educational institutions:

ª People’s Government of Puning, Guangdong, China and Puning Vocational Institute of Technology (China)

ª Chinese Service Centre for Scholarly Exchange (China) ª Columbian National Training Service (SENA)

(Columbia) ª Flensburg University of Applied Sciences (Germany) ª Ho Chi Minh City University (Vietnam) ª Hochschule Fuer Wirtschaft (HfWU) (Germany) ª Hong Kong Polytechnic University ( Hong Kong) ª Hubei University of Education (China) ª LP3i Polytechnic Indonesia (Indonesia) ª Pearson VUE Authorised Center ª PPKS /ICATS (Malaysia) ª Rissho University (Japan) ª University of Applied Sciences Upper Austria (Austria) ª Vietnam National University of Agriculture (Vietnam)

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Bachelor of Applied Media Arts attracts Borneo student

International Partners Hosted at SIT

Choosing Invercargill and New Zealand for his family was an easy decision for Chief Executive of Borneo Housing Mortgage Finance Berhad, Anthony Sia. “The city, with a population of only 50,000 people, is quiet and friendly. Everywhere is just 5 minutes away. The city’s growth is propelled by students, who give the city an international flavour.”

Once settled in Invercargill daughter Karen then enrolled to study the Bachelor of Applied Media Arts at SIT. Mr Sia noted “The staff and lecturers at SIT are very supportive of students. Sporting facilities locally are world class- the internationally acclaimed Velodrome is named after SIT. There’s a big indoor stadium, plentiful parks around the city, first class swimming centre and greenery everywhere. I find that this is a perfect place for students to study. Being a small city, everyone knows someone, there are no major distractions here in Southland”.

Karen who has just recently graduated loved “ learning the wide range of art techniques that I had never known before and learning many other ways to do the artwork”. She also commented that “small classes mean more interactions between students and lecturers, lecturers are friendly and approachable when students stumble upon any difficulties”.

Anthony added “My young son is signing up for a degree course in 2015 at SIT. We are here for the long haul. This place is the best kept secret in New Zealand! “

Executives from SIT’s international partner International College of Advanced Technology (ICATS) in Borneo were hosted at SIT in May 2014 at both the Invercargill and Christchurch campuses. Tan Sri Dato Amar Aziz – Chair of ICATS, Dato Baharuddin Abdullah – Chief Executive of ICATS, Mr. Rambli Hasbi – Deputy Executive Director (Student Services), and Mr. Isham Fauzi – Chief Operating Officer met with SIT executives and toured SIT facilities that were relevant to the pilot initiative between the two institutions.

The initiative involves staircasing ICATS trades students (Electrical and Construction) to SIT’s Christchurch Campus with the opportunity to undertake an internship with construction firms involved with the rebuild of Christchurch City. The other side of the agreement allows for SIT programmes to be offered at ICATS Kuching Campus starting with National Certificate in Adult Education and Training Level 5 and the Bachelor of Hotel Management.

SIT Chief Executive Penny Simmonds commented at the time of the signing of the partnership agreement that it paved the way for SIT programmes to be delivered partially in Kuching so students could transfer to SIT Invercargill to complete their qualification. Ms Simmonds added that the support of former Associate Minister of Education Dr Pita Sharples, Deputy Speaker of the House and former Invercargill MP Eric Roy as well as NZ High Commission David Pine at the signing ceremony in March in Kuching during NZ week ensured the collaboration received significant coverage in Borneo.

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SIT Chief Executive Penny Simmonds with ICATS Chief Executive Dato Baharuddin Abdullah and the Chair of ICATS Tan Sri Dato Amar Aziz

Industry, Business, Community

Industry Advisory Committees and Chairpersons

Health, Humanities and Computing

Advisory Committee

Chairperson Company

Environmental Management

Richard Bowman Environment Southland

Information Technology

Ian Edwards Code Blue

Kawa Whakaruruhau Roopu

Tania Rewi Southern District Health Board

Massage & Natural Therapy

Margaret Walker Naturopath

Mental Health Marg Poulgrain Te Kotuku

Nanny Rose Cardoso Kidicorp

Nursing Julia Russell Presbyterian Support Southland

Social Services Dawn Lloyd Family Works

Sport & Recreation

Vanessa Hughey Sport Southland


Advisory Committee

Chairperson Company

Hospitality Scott Richardson Otago/Southland Executive Member of the NZ Chef Association and Catering & Hospitality Teacher at Southland Boys’ High School

Design & Visual Arts

Miles Hewton Miles Hewton Photography

Digital Media K J Jennings Film Otago/Southland

Journalism Editor Southland Times

Fashion Amanda Knowles SIT

Music, Audio Production & Dramatic Arts

Angela Newell Venture Southland

Business Dave Rohan Business Consultant

Business Consultative Group

Craig Smith French Burt Partners

SIT values the strategic advice, feedback and support from industry advisory members, on qualifications offered by teaching sections within faculties. Advisory committee meetings provide a forum for strategic discussions between advisory committee members, SIT teaching staff and management to assist the

institute to provide education and training that is current, relevant and of an appropriate industry standard. Advisory committee members assist in assessing labour market requirements, identifying and advising on the establishment and maintenance of appropriate programmes, and providing assistance and advice on work experience and internships for students participating in programmes relevant to their area of expertise.

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SIT2LRN

Advisory Committee

Chairperson Company

Creative Media Jackie Flutey SIT

Trades & Applied Sciences

Stephen West Environment Southland

Health & Humanities

Matt Sillars Sport Southland

Business Jackie Flutey SIT

Overarching Advisory Committee

Debbie Rankin NZAS Training & Development

Trades and Technology

Advisory Committee

Chairperson Company

Architectural Technology

Warren Ruwhiu SIT

Automotive Russell Finlay SIT

Beauty Therapy Therese Doyle SIT

Business Administration

Terry Egerton SIT

Construction Warren Ruwhiu SIT

Electrical Russell Finlay SIT

Engineering Noel Clayton Competenz

Industry Centre including NZDE

Michael Weusten Acumen Applied Ltd

Joinery Russell Finlay SIT

Plumbing Mike Grumball SIT

Travel and Tourism

Therese Doyle SIT

Veterinary Nursing

Brian Mason Retired Veterinarian

Industry and Business Sponsor SIT Award Ceremony

Well known successful Southland businessman Graham Cooney, Chairman of Blue Sky Meats (NZ) Ltd and Board Member of both the New Zealand Rugby Union and the New Zealand Racing Board was guest speaker at the 2014 SIT Award Ceremony held in December. Mr Cooney who is also a Board Member of the Red Meat Profit Partnership and Spark Southland had a wealth of business and community experience to share with awardees, award sponsors and guests.

150 awards to the value of approximately $100,000 were presented with the vast majority of awards sponsored by local business and industry. This reflects the genuine commitment of industry to work with SIT towards their shared objective that training delivered at the institute is relevant, up to date and aligns closely with industry standards.

Chief Executive Penny Simmonds said that SIT’s partnerships with industry were a significant factor in the success of the institute and included involvement in advisory committees, internships, clinical experience, work experience, joint research, guest speaking, mentoring, sponsorships and joint projects. Ms Simmonds noted that the award ceremony was an opportunity for SIT to celebrate the outstanding achievements of our top students and to showcase our close relationships with local and national businesses and industry who have assisted in our students’ success.

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Chamber of Commerce and Employers’ Association relocate to SIT

The Southland Chamber of Commerce and Otago Southland Employers’ Association relocation to Tay Street in 2014 has strengthened their relationships with the Southern Institute of Technology according to Chamber Chief executive Sarah Hannan.The Chamber moved from Wachner Place to the former SIT Bookshop opposite the main campus in mid-August.“We can work closer together on projects with SIT,” Ms Hannan said. One example of this was the lecture for students with speakers including Facebook client partner Rowan Spinks, and Vodafone’s head of digital communications Mike Wilson in October, on the key insights, New Zealand trends and best practice in digital and social media for 2014.

Ms Hannan felt that having a presence near SIT was beneficial for strengthening the linkages between students, graduates and local businesses.

Trades Students Create Home Masterpiece

SIT trades students took a desolate piece of Invercargill land and turned it into a lavish home and garden setting. The students built a beautiful modern home from scratch offering three double bedrooms and two bathrooms (master with en suite and walk-in wardrobe), separate laundry, open plan kitchen, living and dining room with pitched ceiling. SIT Chief Executive Penny Simmonds hosted Mayor Tim Shadbolt to view the property and improvement SIT has made to the area through the efforts of the trades students.

The house was built on site at SIT’s new $5m trades facility, then relocated to a Collingwood Street section in Invercargill which was identified by the Invercargill City Council as one of the ten worst sections in Invercargill. SIT worked in partnership with Mitre 10 Mega for the materials and hardware, while H & J Smith Ltd furnished the house and provided the interior décor.

SIT Programme Operations Manager Warren Ruwhiu said “The house was a tremendous effort by the construction, carpentry and joinery students. It was a great opportunity for them to have industry experience aligned with what they would be doing in a work environment. It was also rewarding to see Collingwood Street revitalised by taking a ghost section and creating a modern home there”.

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Chamber of Commerce President Sean Woodward and Otago Southland Employers’ Association President Andrew Leys opening the new facility

Xero Certification commences in Invercargill A partnership between JCCA Chartered Accountants, SIT and Xero, allowed for the first delivery in New Zealand of the JCCA Xero Certification. This programme has been developed for students and business people to master the revolutionary Xero Cloud Accounting software. Xero is a fast growing company with teams and customers in New Zealand, Australia, United States, Canada and United Kingdom and is emerging as the global leader in online accounting for small business. Xero was recently ranked Number One by Forbes in its list of the World’s 100 Most Innovative Growth Companies.

The certificate gives graduates practical business accounting experience through working with real industry data in a real life setting through the seven week programme. This course is considered to be a valuable addition to the skillsets of those working in the business industry as it demonstrates a working knowledge of new technologies which are expected to become the preferred solution for SME business in New Zealand and the world.

Rod Drury, CEO of Xero commented that “JCCA represents one of a small number of Xero’s professional partners who are at the leading edge of these web based (cloud) technologies and the growing ecosystem surrounding Xero’s core accounting solution. JCCA have clearly understood the ‘game changing’ power of enabling web based technology which can benefit both business, communities and nations.”

SIT Students Help Prepare Para-Cyclists for World Championship WinsThird year Bachelor of Sport and Exercise Science students helped condition and prepare New Zealand para-cyclists for their World Championship gold and silver wins in Mexico in 2014. The SIT students trained six NZ para-cyclists (four Southlanders and two SIT graduates) for the championships. As the conditions at the World Championships were at 1880m altitude, the athletes were trained on SIT’s hypoxic machine which simulates high altitudes. The sport and exercise science students facilitated the sessions and measured the performance of the athletes as part of their studies, overseen by sport and exercise tutor Will Payne.

Bike NZ Head Performance Coach Brendon Cameron said “We were very fortunate that SIT both had the necessary equipment and could accommodate us after short notice was given. The World Para-Cycling Champs were announced late in the UCI International racing calendar and the fact that the athletes were competing at 1880m above sea level in Mexico meant we needed some specific altitude simulation training sessions”.

Laura Fairweather NZ para-cyclist (world champion, world recorder holder) and SIT 3rd year Bachelor of Sport and Exercise Science student David Watts

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International Secondary Schools’Culinary Competition in SIT Bungalow Training Restaurant

SIT was proud to host nine teams of students from New Zealand, Japan, Taiwan, Tahiti, Australia and New Caledonia in September 2014 for the International Secondary Schools’ Culinary Competition (ISSCC), which had been established in 2005 as part of the World Association of Chef Societies’ Asia Pacific Culinary Forum.

SIT worked in conjunction with local secondary school Southland Boys’ High School to bring the competition to Invercargill where it was held in the SIT Bungalow Training Restaurant, training ground for many of Southland’s and New Zealand’s top culinary graduates. SIT was delighted to work with Southland Boys’ High School and be able to share this facility with secondary school pupils from all over the world to exhibit the excellent resources and culinary fare that SIT and Southland have to offer.

SIT Gives Girls a Taste of the Trades

The Trades and Technology Faculty gave 195 Year 11 Southland Girls’ High School pupils a taste of the trades in March. The girls were given the opportunity to choose one of the following programmes, Airbrush, Automotive, Carpentry, Electrical, Engineering, Furniture/Joinery, Painting and Decorating, and then spend a day in one of these areas in SIT’s new $5 million dollar trade facilities.

Russell Finlay Programme Operations Manager said “There are some great career opportunities in trades areas offering real job satisfaction and higher wages. Although women have historically been under-represented in many trades, they often excel in what might be considered male dominated roles. Some of our best tradespeople are women, and they often bring skill sets that allow them to move onto management roles within the industry”.

Southland Girls’ High School pupils commented “it opened up a new career pathway that we would not have thought of doing before”, “it was fun and something different”. The girls were also given a tour of the new multi-million dollar trades facilities and discussed potential career planning options with tutors and programme managers.

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Southland Stags - ITM Cup National Rugby Competition

Southern Steel - ANZ Trans Tasman Netball Championship

Shakespeare in the Park

Damon Leitch - New Zealand Racing Driver

SIT Centre Stage - music, theatre, fashion, films

Eddie Dawkins - Olympic and Commonwealth Games Cyclist

Southland Sharks - NZ National Basketball League


SIT Supports Local Community

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Staff Focus

Ako Aotearoa National Tertiary Learning and Teaching Conference at SIT

For the second year in succession Southern Institute of Technology hosted the Ako Aotearoa National Tertiary Learning and Teaching Conference at the main campus in Invercargill.

The theme of the conference was Te Ao Hou – The New World focussing on: education anytime, anywhere; being culturally responsive; preparing students to be work ready.

SIT Chief Executive Penny Simmonds reflected in her opening address on the main theme in terms of current and future changes in the classroom, while reminding conference participants that the teacher/educator, who has the ability through their passion to inspire their pupils, will always be at the heart of education. This theme was integrated into all sessions throughout the conference and brought to a close in the impassioned final key note address delivered by SIT hairdressing tutor Donna Bowman, 2014 Hairdressing Industry Training Organisation Tutor of the Year.

Conference key note speakers and topics:

Dr Kerry Reid-Searle, Professor of Nursing from Central Queensland University, Australia: “Anywhere, anytime: a simulation teaching strategy preparing learners for real world practice beyond the classroom walls”. This was an encore keynote after the success of her 2013 presentation, and again Professor Reid-Searle captivated the audience with her unique style of teaching and the strong modelling of this teaching strategy.

Dr Selena Chan, Centre for Educational Development, Christchurch Polytechnic and recipient of the Ako Aotearoa’s Excellence in Teaching Award, delivered her keynote address, “Flexible and Mobile Delivery @ CPIT post 2012: shaken, stirred and poured”. Dr Chan illustrated how the use of mobile devices have supported the teaching and delivery of programmes for students.

Dr Ganesh Nana, Executive Director, Chief Economist, Business and Economic Research Ltd (BERL): “Tertiary education, value and the 21st century economy”. Dr Nana explored the big picture economy and trends, including possible educational requirement and trends in the future. Dr Nana reminded us that the economy was about people!

Angus Hikairo Macfarlane, Professor of Maori Research, University of Canterbury: “Mai I te ao tawhito kit e ao hou: cultural touchstones for higher education in today’s world”.

Manu Faaea-Semeatu, National Pasifika Facilitator, CORE Education: “Le lalolagi fou: E tumau le faávae, ae fesuiaí faiga – understanding the diverse-cities of Pasifika”. Each of the conference themes was addressed in relation to the way in which Pasifika culturally responsive, inclusive and exclusive aspects contribute to an overall cultural framework that champions Pasifika students and more specifically – informs educators of Pasifika students about how these students view themselves in le lalolagi fou (the new world).

Donna Bowman, Hairdressing Tutor, Southern Institute of Technology, and Hairdressing Industry Training Organisation (HITO) 2014 Tutor of the Year Award recipient. Ms Bowman’s passion for her industry and education was clearly demonstrated throughout her address “Keeping it real” in which conference participants were reminded that they are dual professionals: industry experts as well as educators, each requiring different sets of skills which are of equal importance, but both roles combining to support students and prepare them for the workplace.

Dr Peter Coolbear, Director, Ako Aotearoa: “Making effective use of student feedback on innovative practice to improve educational outcomes”. Dr Coolbear’s presentation looked at ways in which managers and practitioners can develop strategies for evidence collection and use that are fit for purpose, support organisational innovation and improvement and the development of individual teaching practice.

Workshops –A wide range of topics was covered in the workshops, all addressing the conference themes. SIT nursing tutor Johanna Rhodes’s session on “Responding to diverse learners by engaging and making learning memorable and effective with the use of board games and television game shows” was a stand-out for session attendees who saw the potential and link between evaluation, discussion, reflection and application which all occur during games. Hemi Te Hemi’s workshop “He Toki Ki Te Riko - culturally responsive trade training”

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was also noted as outstanding, exploring the barriers and enablers to success and future focus on work based training.

Social highlights included a “Night Market” showcasing the arts, fashion and digital media, and featuring locally sourced cuisine including speciality sheep’s cheese and wine, a conference dinner and a trip to one of New Zealand’s earliest settlements – the township of Bluff.

Donna Bowman - HITO Teaching Excellence Award Winner delivering her key note address

Steering committee – Margaret Mattsen, Dr Jo Whittle, Debbie Ruwhiu, Sue Kelly and Judy Fleck at the night market.

Central Queensland University Professor Kerry Reid – Searle in character with Johanna Rhodes

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Staff Training and Development

Staff Research 2014

The Academic Support Unit (ASU) coordinates professional development activities for tutorial and allied staff at SIT.

Significant activities for 2014:

ª The unit hosted the Ako Aotearoa National Tertiary Teaching and Learning Conference in October for the second year. The conference attracted delegates and presenters from around New Zealand and Australia and delegates noted their appreciation of the high calibre of key note speakers and pertinent topics covered.

ª The Annual Staff Training Week was held in early February and received very positive feedback from staff. Topics ranged from mandatory sessions (for example – bicultural, health and safety) to teaching and learning sessions, and generic topics such as customer service and workplace communications.

ª The New Tutor Workshops continued this year, with the delivery format changed to “Block Courses” three times throughout the year to allow more accessibility to the workshops for staff. The workshops provide an introduction for new tutors to foundation classroom skills and academic quality requirements.

ª The Professional Learning Series continued into its second year and included presentations on good practice from experienced tutors, and workshops on selected topics relevant to the needs of the tutorial staff. The series was well received with rich discussions following each session, and staff noting their value from both teaching improvement and staff networking perspectives.

ª Managers and Team Leaders’ annual training day was held in August. This training provides middle managers with the opportunity to network with other managers and to obtain information and strategies to support them in their roles.

ª Each year ASU staff undertake the delivery of and support for staff required to complete the National Certificate in Adult Literacy and Numeracy Educator (NCALNE) qualification; all staff who enrolled in 2014 completed the qualification. Staff evaluations noted the improvement in classroom practice as a result of the implementation of strategies studied throughout the programme.

ª Observation of teaching is an important professional development activity undertaken with all full time tutorial staff by ASU staff, with the objective of improving teaching practices, student engagement and student performance. The activity also serves as a means of fostering professional growth and provides benefits such as sharing teaching techniques and philosophies.

SIT Research Symposium 2014In an interesting and varied agenda at the annual Staff Research Symposium held in December twelve staff shared their research with their colleagues. The day was spilt into three sessions, with staff presenting from across two faculties: Health, Humanities and Computing, and New Media, Arts and Business.

The symposium offered an ideal opportunity for staff to hear about a wide range of research findings and to share work in progress with an engaged and supportive audience. A number of topics related to supporting teaching and learning, including research into effective techniques for collaborative learning and the innovative use of simulation techniques to enhance nursing education. Presentations included research which related to the areas of expertise and art practice of individual staff members in the areas of sport and exercise, business, environmental management, visual arts, film and animation. Staff explained how their teaching is informed by their research and how research promotes innovation and improvements in their various fields of teaching.

A popular component of the event each year is the audience vote for the ‘People’s Choice Award’ for their favourite presentation of the day. The 2014 award went to Kathryn Mitchell, Programme Manager for Visual Arts, for her dynamic presentation ‘Performing the DIY Public Museum’, drawing on her doctoral research into museum practice and theory.

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Staff Focus

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Staff Publications 2014

Southland Health Research Five Minute Findings Forum The biennial Southland Health Research Five Minute Findings Forum was held in collaboration between SIT and Southern District Health Board (SDHB). This was the second time the forum has been run, and this year it was held at the Southland Medical Foundation Lecture Theatre at Southland Hospital. Researchers from SIT, the Southern District Health Board and the community presented their findings, each one lasting for five minutes only. A very wide range of topics was covered during the day, ranging across the fields of public and environmental health, natural therapies, medicine, nursing, sport and exercise, and health education.

The audience of around 50 people was made up of professionals from hospital, tertiary education and community settings, and attendees found the event very informative and useful. A panel of two judges assessed the performances of the presenters. The Best Presentation winner of a cash prize of $250, donated by Southland Nurses’ Forum, was Sally Dobbs, Academic and Relationship Leader of the SIT School of Nursing, for her work on “Assessing failing nursing students in clinical practice”.

Smith, J. (2014). Massage therapy research update. June 2014 (second quarter). Massage New Zealand Magazine, 24-26.

Smith, J. (2014). Massage therapy research update. September 2014 (third quarter). Massage New Zealand Magazine, 26-27.

Smith, J. (2014). Massage therapy research update. December 2014 (fourth quarter). Massage New Zealand Magazine [in press].

Swain, N. & Bodkin-Allen, S. (2014). Can’t sing? Won’t sing? Aotearoa/New Zealand ‘tone-deaf’ early childhood teachers’ musical beliefs. British Journal of Music Education, 31(3), 245-263.

Exhibitions

Belton, P. (2014). South. Selected group exhibition. Southland Museum & Art Gallery, Invercargill, New Zealand.

Belton, P. (2014). Summer exhibition. Selected group exhibition. Bank Gallery, Invercargill, New Zealand.

Cathcart, E. (2014). Isolation, influence and identity. Exhibition at National Tertiary Learning & Teaching Conference. Invercargill, New Zealand.

Performance

Forrest, F. & Williamson-Mason, H. [Directors]. (2014). Bad Jelly the Witch by Spike Milligan. Invercargill: Southland Festival of the Arts 2014.

Published papers and articles

Bodkin-Allen, S. (Ed.). (2014). Special Edition Southern Institute of Technology Journal of Applied Research: 2013 National Tertiary Learning and Teaching Conference. Retrieved from http://www.sit.ac.nz/SITJAR#310064-2014

Bodkin-Allen, S. (Ed.). (2014, April). Tune Me In, 9 (1).

Bodkin-Allen, S. (Ed.). (2014, July). Tune Me In, 9 (2).

Bodkin-Allen, S. (2014, April). Flashmob fever. Tune Me In, 9 (1), 6-7.

Bodkin-Allen, S. (2014, November). Chocolate pudding, red shoes and lots of singing!, Tune Me In, 9(3), 14-15.

Bodkin-Allen, S. (Ed.). (2014, November). Tune Me In, 9 (3).

Bodkin-Allen, S. (2014, September/October). Singing yourself to health. Good Magazine, 38, 62-63.

Mumford, J. & Smedley, F. (2014). Problem solving strategies in math anxiety management. Southern Institute of Technology Journal of Applied Technology. Retrieved from https://www.sit.ac.nz/SITJAR#310064-2014

Myers, R. (2014). Technologies of early film and interdisciplinary performances. Inter-discipline: AAANZ Conference 2013 Conference Proceedings. Retrieved from http://aaanz.info/aaanz-home/conferences/2013-IGooconference/aaanz-inter-discipline-2013-published-proceedings/

Staff Focus

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Sagmyr, J. [Producer and audio designer]. (2014). Continuum National Conference 2014. Queenstown, New Zealand.

Sagmyr, J. [Musical director and producer]. (2014). Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand.

Musical compositions

Bodkin-Allen, S. (2014). Florence’s nightlight, for cornet and piano [Musical composition]. Retrieved from http://sounz.org.nz/

Bodkin-Allen, S. (2014). Pirate Jack, for trombone and piano [Musical composition]. Retrieved from http://sounz.org.nz/

Bodkin-Allen, S. (2014). Finn’s news, for tenor saxophone and piano [Musical composition]. Retrieved from http://sounz.org.nz/

Sagmyr, J. (2014). A life that cries out Jesus [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand.

Sagmyr, J. (2014). I lift your name [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand.

Sagmyr, J. (2014). Lord of all [Musical composition]. Performed at Selah Worship Singer Songwriter Concert 2014. Invercargill, New Zealand.

Conference presentations

Bodkin-Allen, S. (2014). An Orffish approach and fun with nursery rhymes. Workshop presentation at the MENZA Hook into Sound professional

development day, Invercargill, New Zealand.

Bodkin-Allen, S. (2014). Can’t sing, or won’t sing? Changing perceptions of ‘tone-deafness’ in early childhood teachers. Presentation at the 36th annual ANZARME Conference, Queenstown, New Zealand.

Bodkin-Allen, S. & Longman, H. (2014). The great mix-up: Student engagement in the School of Music at SIT. Presentation at “Into the Mix” IASPM Conference, Dunedin, New Zealand.

Bowman, D. (2014). Keeping it real. A tutor who is passionate about education. A hairdresser who is passionate about her industry. Keynote address at National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Casey, C. (2014). Modeling aspirin therapy. Presentation at Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand.

Dobbs, S. (2014). A collision of two worlds: a phenomenological study into the experience of clinical nurse lecturers assessing ‘failing’ nursing students in clinical practice. Presentation at Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand.

Dobbs, S. (2014). A collision of two worlds: a phenomenological study into the experience of clinical nurse lecturers assessing ‘failing’ nursing students in clinical practice. Presentation at Christchurch Polytechnic Institute of Technology Clinical Assessment Workshop, Christchurch, New Zealand.

Dobbs, S. (2014). A collision of two worlds: A phenomenological study into the experience of clinical nurse lecturers assessing ‘failing’ nursing students in clinical practice.

Presentation at Royal New Zealand Nursing Corps Seminar, Wellington, New Zealand.

Hoffman, J. (2014). The committed learners project. Presentation at the International Journal of Arts and Sciences Conference, Toronto, Canada.

Longman, H. (2014). Interdepartmental collaboration. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Longman, H. (2014). ‘You can do it baby!’ Teaching rhythm and patterns to babies and young children. Workshop presentation at the MENZA Hook into Sound professional development day, Invercargill, New Zealand.

Mitchell, K. (2014). Performing the DIY public museum: Shifting the frame of conception, production, and reception. Presentation at Seventh International Conference on the Inclusive Museum, Los Angeles, USA.

Montayre, J. R. (2014). Head, shoulders, knees and toes: An item analysis of MCQ item exams for the anatomy and physiology class of Bachelor of Nursing year 1 students. Presentation at National Tertiary Learning and Teaching Conference, Invercargill, New Zealand.

Montayre, J. R. (2014). Dealing the real and the unreal: A dementia patient’s reality. Presentation at Southland Health Research Five Minute Findings Forum, Invercargill, New Zealand.

Mumford, J. (2014). Meaningful connections between real-life and theory. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Musika, F. (2014). Integrating green consumption dimension: Refining

Staff Focus


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and validating the Consumer Styles Inventory scale (CSI). Presentation at ANZMAC Doctoral Colloquium Curtin University, Perth, Australia.

Musika, F. (2014). Green CSI: Challenges and the way forward. Presentation at ANZMAC Conference, Griffith University, Brisbane, Australia.

Myers, R. (2014). ‘Here and now, this and that’: Exploring temporalities of display and interruption in encounters with the filmic body. Presentation at Action & Delay Conference, Auckland University of Technology, Auckland, New Zealand.

Rhodes, J. I. (2014). From pretend to real: Moulage workshop. Workshop presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Rhodes, J. I. (2014). Responding to diverse learners by engaging and making learning memorable and effective with the use of board games. Presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Rhodes, J. I. (2014). Education anytime, anywhere, using PeerWise to enable a classroom with no walls. Workshop presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Rhodes, J. I. (2014). Promoting learning by engaging and making learning memorable. Presentation at the Southland Health Research ‘Five Minute Findings’ Forum, Invercargill, New Zealand.

Skaria, R. (2014). Experiences of overseas nurse educators teaching in New Zealand. Presentation at Third Asia Pacific International Conference on Qualitative Research in Nursing, Midwifery and Health, Newcastle, Australia.

Tyrie, F. (2014). Collaboration: The good the bad and the ugly. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Tyrie, F. (2014). Te kahu: business incubator. ‘Six minute solution’ presentation at the National Tertiary Learning & Teaching Conference, Invercargill, New Zealand.

Van Niekerk, E. & Fisher, J. (2014). GIS food shed modelling: A sustainable planning tool for Invercargill. Presentation at the IGU Regional Conference, Krakow, Poland.

Reviews

Mitchell, K. (2014). An empty tent flapping in the wind. Landfall Review Online: New Zealand books in review. Retrieved from http://www.landfallreview.com/2014/08/an-empty-tent-flapping-in-wind.html

Whittle, J. (2014). Review: David Young, rivers: New Zealand’s shared legacy. Environment and Nature in New Zealand, 9(2), 71-76. Retrieved from http://environmentalhistory-au-nz.org/new-zealand/new-zealand-journal/

Public talks

Dobbs, S. (2014). Early military nursing history. Presentation at Southland Woman’s Club (September), Invercargill, New Zealand.

Dobbs, S. (2014). Remembering military nurses in World War One. Presentation at Royal Masonic Lodge (November), Invercargill, New Zealand.

Mitchell, K. (2014). Performing the DIY public museum. Shifting the frame – conception, production, reception.

Open talk at Southern Institute of Technology (June), Invercargill, New Zealand.

Ramsay, R. (2014). Clay, the Royal Society of London, and the Protestant succession: forensic science of English porcelains reveals all. Talk in Science Express series, Te Papa Tongarewa Museum of New Zealand (November), Wellington, New Zealand.

Strathearn, M. (2014). Men’s health issues. Presentation at Community Mental Health Men’s Group (September), Invercargill, New Zealand.

Strathearn, M. (2014). Early intervention strategies and treatment options for prostate cancer. Presentation at Community Mental Health Men’s Group (December), Invercargill, New Zealand.

Staff Focus


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“Inclusive Museums” Presentation at Los Angeles Conference

SIT Tutor Named Educator of the Year

Southern Institute of Technology Arts Programme Manager Kathryn Mitchell travelled to Los Angeles in August 2014 to present her PhD research at the Annual Conference on the Inclusive Museum. The purpose of the conference was to present and discuss ideas on how to make museums accessible to all people. Kathryn’s research presented findings on how museums can engage community.

Richard Greer, Certificate in Personal Training tutor based at SIT’s Christchurch Campus was named Educator of the Year at the 2014 Exercise Industry Awards. Richard received his award on November 22nd at the Award Dinner and ceremony at the Sir Paul Reeves building in Auckland.

Veterinary Nursing Tutor Selected As Judge for Irish Pony Show

National Diploma in Veterinary Nursing tutor Sheila Ramsay was selected as a judge for the world renowned annual Connemara Pony Show in Clifden, County Galway, Ireland in August. The event was organised by the Connemara Pony Breeders’ Society and is said to be the largest pony show in the world attracting visitors from around the world. Ms Ramsay is the first New Zealander to be selected for this honour. Prior to the competition in Ireland Ms Ramsay travelled to Austria and Germany in connection with her research into the Hoof Wall Separation Disease (HWSD) using the ‘Connemara model’.

Richards’s peers and students endorsed his award confirming that “he stands out as being someone, who over the last few years has had the courage to step out of his comfort zone and challenge himself both professionally and personally in order to raise the bar of his content and delivery style.”

Staff Focus

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New graduation gown design for staff and graduates

Staff Develop New Programmes with Industry

In 2014 SIT commissioned international Pasifika couturier, Lindah Lepou, to design and produce new undergraduate and master’s gowns for staff and our growing number of graduates. Lindah created a unique woven yoke design symbolising Scottish tartan, Maori design and Pasifika design to blend in with the traditional academic gown.

The weaving reflects the peoples of New Zealand Aotearoa who have “Multiple perspectives and interpretations but who remain a united people all under the same planet…..adapting to our own special environment, in our own special part of the world”. (Lindah Lepou)

Throughout 2014 SIT staff developed and received approval and accreditation from the New Zealand Qualifications Authority (NZQA) to deliver 24 new programmes, all of which were backed by significant regional and national industry support.

ª Postgraduate Diploma and Postgraduate Certificate in Information Technology

ª Bachelor of Applied Management ª Graduate Diplomas and Graduate Certificates in :

• Applied Management • Applied Marketing • Project Management • Event Management • Human Resources

ª Graduate Diploma in Fashion (Design and Technology) ª Graduate Diploma in Hotel Management ª Graduate Certificate in Management ª New Zealand Certificates in English Language Levels 3 and 4 ª New Zealand Certificates in English Language Levels 3 and 4 (Offshore) ª Diploma in Te Aupikitanga ki te Reo Kairangi ª Certificate in Te Pūtaketanga o Te Reo ª National Certificate in Agriculture ª National Certificate in Recreation and Sport (Core Skills)

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Staff Focus

Lindah Lepou, SIT Brand Ambassador

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Statement of Service Performance

Goal1Provide for and encourage student participation and achievement in a range of quality learning opportunities

Key Point of Focus

1.1 Enhance the academic achievement and satisfaction of students.

1.2 Offer a range of programmes / staircasing opportunities / and flexible delivery modes which provide vocational and life skills and meet the needs of stakeholders.

1.3 Improve the representation and achievement of under-represented and disadvantaged groups.

1.4 Provide a range of student and staff support services.

Output Output measure 2013Actual

2014Target

2014Actual

1.1 Improve course completion rates for all students

Percentage increase in course completion rates for all students

77% 72% 79%*

1.1 Improve qualification completion rates for all students

Percentage increase in qualification completion rates for all students

71% 61% 73%*

1.1 Maintain student satisfaction levels

Achievement of student satisfaction levels of an average of 4.3 (best rating) in annual survey of programmes of 0.25 EFTS

4.2 ≥4.3 4.7

1.1 Percentage of graduates gaining employment or progressing to further study

Percentage of graduates measured by annual Graduate Destination Survey

86% ≥ 84% 99%

1.1 All Level 1 to 3 programmes have literacy and numeracy embedded

Increase percentage of Levels 1-3 programmes that meet the Tertiary Education Commission’s definition of ‘embedded’

81% 90% 72%

1.1 Annual Programme Self-Assessment Analysis carried out on all programmes greater than 0.25 EFTS

Number of programmes greater than 0.25 EFTS analysed via Programme Self-Assessment

100% 100% 100%

1.2 Increase the number of programmes across Levels 1-4 which have specified pathways to higher qualifications

Percentage of programmes with specified pathways to higher qualifications at SIT and other institutes

92% 80% 95%

1.2 Proportion of programme portfolio endorsed by industry

Industry input is mandatory for all programmes during approval process

100% 100% 100%

Note: All performance indicators relate directly to SIT’s Investment Plan 2013-2015.* 2014 results are provisional until the April SDR has been processed. 2013 results have been finalised therefore differ slightly to previous years reported results.

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2014Target

2014Actual

1.2 Respond to the need for more qualifications in Science, Technology, Engineering and Mathematics (STEM)

Number of new/revised programmes in STEM

3 2 3

1.2 Support the delivery of trades programmes to meet trades shortages in Christchurch

Priority Trades EFTS allocated by TEC 145 ≥130 ≥170

1.3 By promoting programmes that are relevant to students’ interests and industry employment requirements, increase the number of people under 25 enrolled and successfully completing qualifications

Percentage of Levels 1–3 proportion of SAC eligible EFTS under 25

Percentage of Levels 4 and above proportion of SAC eligible EFTS under 25

16%

26%

17%

29%

12%*

25%*

1.3 Increase the number of Maori students enrolled and successfully completing qualifications by providing programmes that are delivered in a way that meet the learning needs and interests of Maori

Percentage of Levels 1–3 proportion of SAC eligible EFTS identified as Maori

Percentage of Levels 4 and above proportion of SAC eligible EFTS identified as Maori

6%

9%

8%

9%

5%*

9%*

1.3 Increase the number of Pasifika students enrolled and successfully completing qualifications by providing programmes that are delivered in a way that meet the learning needs and interests of Maori

Percentage of Levels 1–3 proportion of SAC eligible EFTS identified as Pasifika

Percentage of Levels 4 and above proportion of SAC eligible EFTS identified as Pasifika

1%

1%

2%

2%

1%*

2%*

1.4 Maintain or increase hourly availability on 2013 level of student learning support services

Student support availability maintained or increased, including Library, Learning Assistance unit, Support Services

>2012 ≥2013 =2013

1.4 Implement Committed Learners findings

Number of staff involved in implementing Committed Learners findings

60% 80% 60%

1.4 Increase reflective teaching practice observations with full-time tutorial staff

All full-time tutorial staff experience tutor observations once per year

100% 100% 100%

1.4 Increase teaching capability by providing adult education training, professional development budget, mandatory compliance training and annual training week for staff

Certificate and Diploma in Adult Education and Training available to all teaching staff, budget allows for professional development, mandatory training occurs, annual training week occurs

100% 100% 100%

* 2014 results are provisional until the April SDR has been processed. 2013 results have been finalised therefore differ slightly to previous years reported results.

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Goal2Foster our social and professional obligations to both stakeholders and staff

Key Point of Focus2.1 Foster and enhance

relationships with all external stakeholders.

2.2 Enhance and promote an understanding of Te Tiriti o Waitangi and its application to the institution.

2.3 Create and maintain policies which are consistent with the Human Rights Act.

2.4 Provide a physically desirable learning and working environment.


2014Target

2014Actual

2.1 Enhance relationships with all external stakeholders

Minimum of 2 meetings per year for Advisory Committees, minimum of one annual Advisory Committee function

2 p.a. ≥2 p.a. =2 p.a. Annual function cancelled due to passing of Kaumatua

2.2 Promote an understanding of Te Tiriti Waitangi to staff

Provide bi-cultural training on an annual basis for all staff

100% 100% 100%

2.2 Maintain or increase engagement with Maori

Strategic relationship with Te Wananga O Aotearoa maintained, evidenced by the number of programmes and the number of EFTS

≥2012 ≥2013 >2013

2.2 Maintain or increase support for Maori student

Provision of Maori Support Centre service levels maintained or increased

=2012 ≥ 2013 =2013

2.3 Ensure that staff are aware of the policies and issues related to the Human Rights Act

Annual mandatory training provided for all staff on Human Rights Act and EEO issues

100% 100% 100%

2.3 Ensure that staff are aware of conditions of service, sexual harassment and disability awareness issues

Annual mandatory training provided and communication maintained through EEO staff noticeboard, in-house newsletter and staff development plans

100% 100% 100%

2.3 Maintain employee database and record on-going job application statistics

On-going job application statistics recorded

100% 100% 100%

2.4 Ensure that Campus facilities and activities maintain a physically desirable environment for learning and teaching

Continue upgrade of campus facilities and provision of appropriate student activities and services

Maintain or increase hours of availability of Activities Officer

$13m

=2012

$4.9m

≥2013

$7m

=2013


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Goal3Operate a viable educationally directed business

Key Point of Focus3.1 Manage the

organisation effectively and efficiently.

3.2 Demonstrate commitment to the employment and development of quality staff.

3.3 Enhance revenue income from other activities.


2014Target

2014Actual

3.1 Enhance business performance through the following output measures

Achieve target within 3%+/- of Government EFTS allocated in the Investment Plan process

3,482(97.2%)

97-103% 3,582(101%)

Achieve a surplus of 1.5% of net assets

1.47% ≥ 1.5% 0.79%

Achieve cash reserves through a minimum 15% of annual operating expenditure or 50% of annual capital expenditure, whichever is greater

$6.5m= 50%of capex

$7.2m= 15% of opex

Maintain an operating surplus of 3% of revenue

3.11% ≥ 3% 1.57%

Maintain a revenue to working capital ratio of 100% or more

257.43% ≥ 100% 309.18%

Achieve at least 5% net cash flow from operations

13.14% ≥ 5% 11.71%

3.2 Employ and develop quality staff

Staff employed have qualifications appropriate to the subject and level of the programme they are teaching

New staff attract 80TTH abatement for training

TDSU hours maintained or increased in mentoring and training of staff

100%

100%

=2012

100%

100%

≥2013

100%

100%

=2013


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2014Target

2014Actual

3.2 Faculty research reports and plans developed for each academic year and submitted to the Research Committee of the Academic Board for approval

Research Reports and Plans for each faculty which delivers degrees, submits reports and plans

100% 100% 100%

3.3 International student enrolments increase as a result of the institution providing pastoral and learning support leading to successful outcomes

Number of international student enrolments

551 850 664

3.3 Develop capability and interest within the community to provide international students with an environment attractive to international students

Percentage satisfaction of international student with the SIT extended community

84%Satisfactionon survey results



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Purpose of Measurement

Calculation Measurement

Performance Target -To report on the following financial ratios as at 31 December 2014 with the aim of meeting or exceeding the previous year’s ratios.

2014 2013

Quick Ratio Ratio of: Current Monetary Assets Current Monetary Liabilities

3.13 2.99

Equity/Debt Ratio Ratio of:Total Equity Total Debt

13.88 11.87

Net Income Margin Net Income Total Revenue

1.57% 3.11%

Total Asset Turnover Total Revenue Total Assets

46.99% 43.42%

Return on Investment (Du Pont formula)

Net Income x Total Revenue Total Revenue x Total Assets

0.74% 1.35%

Financial Performance Indicators

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Statement of Accounting Policies

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2014

Reporting Entity The Southern Institute of Technology (the Institute) is a TEI domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989.

The Institute and group consists of Southern Institute of Technology and its associate, Southern Education Charitable Trust. The 49% equity share of its associate Southern Lakes English College Limited is equity accounted. MotorTrain Limited is a shell company in which SIT holds a 25% interest with no transactions being incurred during the year.

The primary objective of the Institute and group is to provide tertiary education services for the benefit of the community rather than making a financial return. Accordingly, the Institute has designated itself and the group as public benefit entities for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

The financial statements of the Institute and group are for the year ended 31 December 2014. The financial statements were authorised for issue by the Council on 20th April 2015.

Basis of PreparationThe financial statements of the Institute and group have been prepared in accordance with section 154 of the Crown Entities Act 2004 and section 220 of the Education Act 1989.

The financial statements include a statement of financial performance, a statement of comprehensive income, a statement of changes in equity, a statement of financial position, a statement of cash flows, a statement of contingencies and a statement of commitments.

These financial statements have been prepared in accordance with NZ GAAP as appropriate for public benefit entities and they comply with NZ IFRS. The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the institute is New Zealand dollars and all values are rounded to the nearest ($ ‘000).

Measurement BaseThe measurement base adopted is that of historical cost modified by the revaluation of land and buildings and certain financial instruments.

RevenueRevenue is measured at the fair value of consideration received or receivable.

Student Tuition FeesStudent tuition fees are recognised as revenue on a course percentage of completion basis. The percentage of completion is measured by reference to the days of the course completed as a proportion of the total course days.

Government GrantsGovernment grants are recognised as income on entitlement. Some Government grants carry restrictions on the uses to which they can be applied.

Research Grants and Subsidies, Donations and BequestsResearch grants, subsidies, donations and bequests to the Institute are recognised as income when money is received, or entitlement to receive money is established, except where fulfilment of any restrictions attached to these monies is not probable.

Other RevenueProducts held for sale are recognised when a product is sold to the customer. Sales are usually in cash or by credit card. The recorded revenue is the gross amount of the sale, including credit card fees payable for the transaction. Such fees are included in other expenses.

Where a physical asset is donated or vested in the Institute for nil or nominal consideration the fair value of the asset received is recognised as revenue. Assets vested in the Institute are recognised as revenue when control over the asset is obtained. Interest income is recognised using the effective interest method.

Advertising Costs Advertising costs are expensed when the related service has been rendered.

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Income TaxTertiary education institutes are classed as public bodies by the Inland Revenue Department and are therefore exempt from income tax.

Leases Financial Leases A finance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred. At the commencement of the lease term, the Institute recognises finance leases as assets and liabilities in the statement of financial position at the lower of the fair value of the leased item and the present value of the minimum lease payments. The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Institute will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life. Operating Leases An operating lease is a lease that does not transfer substantially all the risk and rewards incidental to ownership of an asset. 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 statement of financial performance over the lease term as an integral part of the total lease expense.

Financial Assets The Institute classifies its financial assets into the following two categories: financial assets at fair value through profit or loss and loans and receivables. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date. Financial assets are initially measured at fair value plus transaction costs unless they are carried at fair value through profit and loss in which case the transaction costs are recognised in the statement of financial performance. In this category SIT has its equity investments and other investments. Purchases and sales of investments are recognized on trade-date, the date on which the Institute commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial asset have expired or have been transferred and the Institute has transferred substantially all risks and rewards of ownership.

The two categories of financial assets are: 1)Financial assets at fair value through profit or lossAfter initial recognition they are measured at their fair values. Gains or losses on re-measurement are recognised in the statement of financial performance. In this category SIT has its equity and other investments.

2) Loans and receivables These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the statement of financial performance. Loans and receivables include “cash and cash equivalents”, “term deposits” and “trade and other receivables” in the statement of financial position.

Impairment of Financial AssetsAt each balance sheet date the Institute 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 statement of financial performance.

Trade and Other ReceivablesTrade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

A provision for impairment of receivables is established when there is objective evidence that the Institute will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the effective interest method.

Cash and Cash EquivalentsCash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts.

Inventories Inventories held for sale on a commercial basis are valued at the lower of cost and net realisable value. Consumable stocks are valued at the lower of cost and current replacement cost. Cost is measured using the FIFO method. The write down from cost to current replacement cost or net realisable value is recognised in the statement of financial performance if applicable. However there have been no write-downs in inventories during the year.

Property, Plant and EquipmentProperty, plant and equipment consists of -

Operational assets - These include land, buildings, plant and equipment, computers, furniture, library books and motor vehicles.

Restricted Assets - Crown owned land and buildings that are used by the Institute are included as part of the property, plant and equipment. These were first recognised on 31 December 1995 at deemed cost obtained by using the

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optimised depreciated replacement cost methodology. Although legal title has not been transferred, Southern Institute of Technology has assumed all the normal risks and rewards of ownership.

Land and buildings were re-valued as at 31 December 2013 by Rural Value, a QV business unit, Registered Valuers. Land and buildings are re-valued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years.

The net revaluation results are credited or debited to other comprehensive income and is accumulated to an asset revaluation reserve in equity. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.Library collections are assessed annually by the Institute’s head librarian, in accordance with draft guidelines released by the New Zealand Library Association and the National Library of New Zealand in May 2002. Impairment losses for the year are shown in Note 10.

Land is measured at fair value, and buildings and infrastructure are measured at fair value less accumulated depreciation and impairment losses. All other asset classes are measured at cost, less accumulated depreciation and impairment losses.

Capital Work in ProgressCapital work in progress is valued on the basis of expenditure incurred and gross progress claim certificates up to balance date. Work in progress is not depreciated. 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 the Institute and the cost of the items can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of financial performance. When revalued assets are sold, the amounts included in property revaluation reserves in respect of those assets are transferred to general funds. Subsequent Costs Costs incurred subsequent to initial acquisition are

capitalised only when it is probably that future economic benefits or service potential associated with the item will flow to the Institute and the cost of the item can be measured reliably.

DepreciationProperty, plant and equipment is depreciated on a straight line basis on all property, plant and equipment other than land at rates that will write off the cost or value of the assets over their estimated lives.

The depreciation rates used in the preparation of these statements are as follows:

Buildings 5 - 100 years 1 – 20%

Motor Vehicles 3 - 5 years 20 - 33%

Furniture and Fittings 10 years 10%

Computers 3 years 33%

General Equipment 3 - 5 years 20 - 33%

Leases & Leasehold Improvements

3 - 5 years Term of Lease 20 - 33%

The above rates have been applied consistently.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. The Library collection is depreciated on a straight line basis over seven years and assessed annually for signs of impairment.

Intangible Assets Software Acquisition Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

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

Costs associated with the development and maintenance of the Institute’s website are recognised as an expense when incurred.

Naming RightsNaming Rights to Stadium Southland acquired during the year are being amortised over the contractual term of six years.

Course Development CostsCourse development costs relate to development of educational programmes and courses and are capitalised when it is probable that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and impairment losses. Television Commercial Development and Online ContentTVCs and Online Content are capitalised when it is probable

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that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and impairment losses.

Amortisation Computer software licenses are amortised on a straight line basis over their estimated useful lives of 3 to 5 years (20%-33% straight line). The naming rights to Stadium Southland are amortised on a straight line basis over the contractual term of six years (16.66%). Course Development Costs are amortised on a straight line basis, from the commencement of the course, over their estimated useful lives of 3 to 5 years (20%-33%). TVCs and Online Content are amortised on a straight line basis over their estimated useful lives of 3 years (33%).

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

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 or deficit when the asset is derecognised.

Impairment of Non-Financial Assets Non-Financial Assets with a finite useful life arereviewed for impairment 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 amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Institute would, if deprived of the asset, replace its remaining future economic benefits or service potential. 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 statement of financial performance.

For re-valued assets the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the revaluation reserve in equity.

Employee BenefitsShort Term Benefits Employee benefits that the Institute 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 to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave. The Institute 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 the Institute anticipates it will be used by staff to cover those future absences. Long Term Benefits Entitlements that are payable beyond 12 months, such as long service leave and retiring leave, have been calculated on an actuarial basis. These calculations are based on:

ª Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and

ª The present value of the estimated future cash flows.

A discount rate of 5.75% and an inflation factor of 2.75% were used. The discount rate is based on the weighted average of interest rates for Government stock with terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long term increase in remuneration for employees.

Goods and Services Tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the Inland Revenue Department, 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.

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Equity Equity of the Institute is the measured difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are:

ª Retained earnings. ª Other funds and reserves. ª Trust funds. ª Property revaluation reserve.

Budget Figures The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements. The budget figures shown are those approved by Council in August 2013.

Cost Allocation The Institute has derived the cost of service for each significant activity of SIT using the cost allocation system outline below.

Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs, which cannot be identified in an economically feasible manner, with a specific activity.

Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as actual usage, Equivalent Full Time Students (EFTS), Staff numbers and floor area.

Critical Accounting Estimates and AssumptionsIn preparing these financial statements the Institute has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Property Revaluations Land is valued at fair value using market based evidence based on its highest and best use with reference to comparable land values. Where there is a designation held against the land, adjustments have been made to reflect that designation.

Buildings are valued on either a fair market or depreciated replacement cost basis. Where the fair value of an asset can be determined by reference to the price in an active market for the same asset or a similar asset, the fair value of the asset is determined using this information. Where fair value of the asset is not able to be reliably determined

using market based evidence, depreciated replacement cost is considered to be the most appropriate basis for determination of the fair value.

Depreciated replacement cost is determined using a number of significant assumptions which include;

ª The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information.

ª Estimating the remaining useful life of the asset. ª Straight line depreciation has been applied in

determining the depreciated replacement cost value of the asset.

Property, Plant and Equipment Useful Lives and Residual ValuesAt each balance date the Institute reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires the Institute to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Institute and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset, therefore impacting on the depreciation expense recognised in the statement of financial performance, and carrying amount of the asset in the statement of financial position. The Institute minimises the risk of this estimation uncertainty by:

ª physical inspection of assets; ª asset replacement programmes; ª review of second hand market prices for similar assets;

and ª analysis of prior asset sales.

The Institute has not made significant changes to past assumptions concerning useful lives and residual values. The carrying amounts of property, plant and equipment are disclosed in note 10.

Critical Judgements in Applying the Institute’s Accounting Policies The Council and Management must exercise their judgement when recognising grant income to determine if conditions of the grant contract have been satisfied. This judgement will be based on the facts and circumstances that are evident for each grant contract.

Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, the Institute accounts for the funding as a capital contribution directly in equity. Information about capital contributions recognised in equity is disclosed in note 14.

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Property in the legal name of the Crown that is occupied by the Institute is recognised as an asset in the statement of financial position. The Institute considers it has assumed all the normal risks and rewards of ownership of this property despite legal ownership not being transferred and accordingly it would be misleading to exclude these assets from the financial statements.

Changes in Accounting PoliciesThere has been a change in accounting policies during the financial year. Course development costs relate to development of educational programmes and courses and are now capitalised when it is probable that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and impairment losses. Course Development Costs are amortised on a straight line basis, from the commencement of the course, over their estimated useful lives. Also TVCs and Online Content are now capitalised when it is probable that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and impairment losses.

Standards, Amendments, and Interpretations issued that are not yet effective and have not been early adoptedStandards, amendments, and interpretations issued but not yet effective that have not been early adopted, andare relevant to the Institute and group, are:

NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following three main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the manydifferent rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial assets (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus or deficit. The new standard is required to be adopted for the year ended 30 June 2016. However, as a new Accounting Standards Framework will apply before this date, thereis no certainty when an equivalent standard to NZ IFRS 9 will be applied by public benefit entities.

The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Institute is classified as a Tier 1 reporting entity and it will be required

to apply full public sector Public Benefit Entity Accounting Standards (PAS). These standards are being developed by the XRB and are mainly based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is for reporting periods beginning on or after 1 July 2014. This means the Institute expects to transition to the new standards in preparing its 31 December 2015 financial statements. As a general rule, the IPSAS maintain the accounting treatment of the IFRS. The Institute does not anticipate any material implications to arise from the implementation of the new Accounting Standards Framework.

Due to the change in the Accounting Standards Framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope.

Basis of ConsolidationThe group financial statements are prepared by adding together like items of assets, liabilities, equity, income, expenses, and cash flows on a line-by-line basis. All significant intragroup balances, transactions, income, and expenses are eliminated in full on consolidation.

SubsidiariesThe Institute consolidates in the group financial statements all entities where the Institute has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. This power exists where the Institute controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by the Institute or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary.

Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are de-consolidated from the date that control ceases.

The Institute will recognise goodwill where there is an excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed. This difference reflects the goodwill to be recognised by the Institute. If the consideration transferred is lower than the net fair value of the Institute’s interest in the identifiable assets acquired and liabilities assumed, the difference will be recognised immediately in the surplus or deficit.

Investments in subsidiaries are carried at cost in the Institute’s parent entity financial statements.

AssociateThe Institute’s associate investment is accounted for in the group financial statements using the equity method. An associate is an entity over which the Institute has significant influence and that is neither a subsidiary nor an interest in

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a joint venture. The investment in an associate is initially recognised at cost and the carrying amount is increased or decreased to recognise the group’s share of the change in net assets of the associate after the date of acquisition. The group’s share of the associate’s surplus or deficit of the associate is recognised in the group surplus or deficit. Distributions received from an associate reduce the carrying amount of the investment in the group financial statements.

If the share of deficits of an associate equals or exceeds an interest in the associate, the group discontinues recognising its share of further deficits. After the group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised.

Where the group transacts with an associate, surpluses or deficits are eliminated to the extent of the group’s interest in the relevant associate.

Investments in associates are carried at cost in the Institute’s parent entity financial statements.

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Statement of Financial PerformanceFor the year ended 31 December 2014

Statement of Comprehensive IncomeFor the year ended 31 December 2014

Financial Statements

Actual Budget Actual Actual Actual2014 2014 2013 2014 2013

Notes $'000 $'000 $'000 $'000 $'000

IncomeGovernment Grants 1 32,891 30,163 32,121 32,891 32,121Student Tui tion / Course Fees 2 6,959 7,143 5,585 6,959 5,585Revenue - Other 3 8,898 8,623 7,497 8,851 7,452Total Income 48,748 45,929 45,203 48,701 45,158

ExpenditurePersonnel Costs 4 20,882 20,048 20,250 20,882 20,250Depreciation and amortisation 10 11 4,943 4,456 4,531 4,943 4,531Restructuring Costs 62 150 202 62 202Other operating expenses 5 22,131 20,613 18,768 22,131 18,768(Gains ) / Losses on disposa l of assets 14 - 44 14 44 Total Expenditure 48,032 45,267 43,795 48,032 43,795

Share of Associates 's surplus/(defici t) 26 50 - - 50 -

Net surplus 766 662 1,408 719 1,363


Notes $'000 $'000 $'000 $'000 $'000

Net surplus 766 662 1,408 719 1,363Gains on property revaluations - - 3,537 - 3,537 Total comprehensive income 766 662 4,945 719 4,900

Explanations of major variances aga inst budget are provided in note 24.

Southern Institute of Technology Group


STATEMENT OF COMPREHENSIVE INCOME

The accompanying notes form part of these financia l s tatements .

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 December 2014

for the year ended 31 December 2014


Notes $'000 $'000 $'000 $'000 $'000

IncomeGovernment Grants 1 32,891 30,163 32,121 32,891 32,121Student Tui tion / Course Fees 2 6,959 7,143 5,585 6,959 5,585Revenue - Other 3 8,898 8,623 7,497 8,851 7,452Total Income 48,748 45,929 45,203 48,701 45,158

ExpenditurePersonnel Costs 4 20,882 20,048 20,250 20,882 20,250Depreciation and amortisation 10 11 4,943 4,456 4,531 4,943 4,531Restructuring Costs 62 150 202 62 202Other operating expenses 5 22,131 20,613 18,768 22,131 18,768(Gains ) / Losses on disposa l of assets 14 - 44 14 44 Total Expenditure 48,032 45,267 43,795 48,032 43,795

Share of Associates 's surplus/(defici t) 26 50 - - 50 -

Net surplus 766 662 1,408 719 1,363


Notes $'000 $'000 $'000 $'000 $'000

Net surplus 766 662 1,408 719 1,363Gains on property revaluations - - 3,537 - 3,537 Total comprehensive income 766 662 4,945 719 4,900

Explanations of major variances aga inst budget are provided in note 24.



STATEMENT OF COMPREHENSIVE INCOME


STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 December 2014


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Statement of Changes in EquityFor the year ended 31 December 2014


Notes $'000 $'000 $'000 $'000 $'000

96,012 91,747 90,984 96,133 91,150Tota l comprehens ive income 766 662 4,945 719 4,900

- - (2) - (2)Capita l Contributions - - 85 - 85

96,778 92,409 96,012 96,852 96,133

Group

STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2014

Balance at 1 January

Net Transfer to restricted reserves

Southern Institute of Technology


Balance at 31 December

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Statement of Financial Position As at 31 December 2014

Sarah BrownCHAIRPERSON OF COUNCIL

Penny SimmondsCHIEF EXECUTIVE

20th April 2015


Notes $'000 $'000 $'000 $'000 $'000AssetsCurrent AssetsCash and cash equiva lents 6 11,094 265 3,622 11,100 3,634Trade and other receivables 7 2,569 1,800 2,213 2,576 2,222Inventories 8 1,324 1,000 1,808 1,324 1,808Other Financia l Assets 9 7,555 14,500 17,830 7,616 17,930Total Current Assets 22,542 17,565 25,473 22,616 25,594

Non-Current AssetsOther Financia l Assets 9 4 53 53 4 53Investment in Associate 26 356 - - 356 -Assets held for Sa le 10 150 - 375 150 375Property, plant and equipment 10 79,504 81,241 77,431 79,504 77,431Intangible Assets 11 1,196 300 769 1,196 769Total Non-Current Assets 81,210 81,594 78,628 81,210 78,628Total Assets 103,752 99,159 104,101 103,826 104,222

LiabilitiesCurrent LiabilitiesTrade and other payables 12 4,855 5,000 6,150 4,855 6,150Employee Benefi t Liabi l i ties 13 1,920 1,700 1,764 1,920 1,764Total Current Liabilities 6,775 6,700 7,914 6,775 7,914

Non-Current LiabilitiesEmployee Enti tlements 13 199 50 175 199 175Tota l Non-Current Liabi l i ties 199 50 175 199 175Total Liabilities 6,974 6,750 8,089 6,974 8,089Net Assets 96,778 92,409 96,012 96,852 96,133

EquityReta ined Earnings 14 80,971 80,139 80,205 81,045 80,326Property Revaluation Reserve 14 15,807 12,270 15,807 15,807 15,807 Total Equity 96,778 92,409 96,012 96,852 96,133

Group

STATEMENT OF FINANCIAL POSITIONas at 31 December 2014


Southern Institute of TechnologyActual Budget Actual Actual Actual2014 2014 2013 2014 2013

Notes $'000 $'000 $'000 $'000 $'000AssetsCurrent AssetsCash and cash equiva lents 6 11,094 265 3,622 11,100 3,634Trade and other receivables 7 2,569 1,800 2,213 2,576 2,222Inventories 8 1,324 1,000 1,808 1,324 1,808Other Financia l Assets 9 7,555 14,500 17,830 7,616 17,930Total Current Assets 22,542 17,565 25,473 22,616 25,594

Non-Current AssetsOther Financia l Assets 9 4 53 53 4 53Investment in Associate 26 356 - - 356 -Assets held for Sa le 10 150 - 375 150 375Property, plant and equipment 10 79,504 81,241 77,431 79,504 77,431Intangible Assets 11 1,196 300 769 1,196 769Total Non-Current Assets 81,210 81,594 78,628 81,210 78,628Total Assets 103,752 99,159 104,101 103,826 104,222

LiabilitiesCurrent LiabilitiesTrade and other payables 12 4,855 5,000 6,150 4,855 6,150Employee Benefi t Liabi l i ties 13 1,920 1,700 1,764 1,920 1,764Total Current Liabilities 6,775 6,700 7,914 6,775 7,914

Non-Current LiabilitiesEmployee Enti tlements 13 199 50 175 199 175Tota l Non-Current Liabi l i ties 199 50 175 199 175Total Liabilities 6,974 6,750 8,089 6,974 8,089Net Assets 96,778 92,409 96,012 96,852 96,133

EquityReta ined Earnings 14 80,971 80,139 80,205 81,045 80,326Property Revaluation Reserve 14 15,807 12,270 15,807 15,807 15,807 Total Equity 96,778 92,409 96,012 96,852 96,133

Group

STATEMENT OF FINANCIAL POSITIONas at 31 December 2014



ANNUAL REPORT 2014

- 66 -

Statement of Cash FlowsFor the year ended 31 December 2014


$'000 $'000 $'000 $'000 $'000Cash flows from operating activitiesReceipts from government grants 33,013 30,454 32,776 33,013 32,776 Interest Received 882 800 1,100 886 1,106 Receipts from revenue other 15,240 14,975 10,988 15,190 10,938 Payments to suppl iers (23,583) (21,009) (18,144) (23,583) (18,144) Payments to employees (20,882) (20,362) (20,249) (20,882) (20,249) Goods and Services Tax (net) 16 - (141) 16 (141) Net cash from operating activities 4,686 4,858 6,330 4,640 6,286

Cash flows from investing activitiesProceeds from sa le of property, plant and equipment 39 - - 39 - Net Proceeds/(Acquis tions) financia l assets 10,298 - 8,068 10,338 8,122 Investment in Associate 26 (306) - - (306) - Purchase of Fixed Assets (7,246) (7,616) (13,250) (7,246) (13,250) Cash flows from investing activities 2,785 (7,616) (5,182) 2,825 (5,128)

Cash flows from financing activitiesProceeds from borrowings - - - - - Equi ty Contributions 1 - 84 1 84 Net cash from financing activities 1 - 84 1 84

Net (decrease) / increase in cash and cash equivalents 7,472 (2,758) 1,232 7,466 1,242 Cash and cash equiva lents at the beginningof the year 3,622 3,023 2,390 3,634 2,392

Cash and cash equivalents at the endof the year 6 11,094 265 3,622 11,100 3,634

The GST (net) component of operating activi ties reflects the net GST pa id to and received from the Inland Revenue Department.The GST (net) component has been presented on a net bas is , as the gross amounts do not provide meaningful information forfinancia l s tatement purposes and to be cons is tent with the presentation bas is of the other primary financia l s tatements .


Note

STATEMENT OF CASH FLOWSfor the year ended 31 December 2014

Group


ANNUAL REPORT 2014

- 67 -

Reconciliation of the Net Surplus on Operations with the Net Cash Flows From Operating ActivitiesFor the year ended 31 December 2014


$'000 $'000 $'000 $'000 $'000

Surplus / (deficit) 766 662 1,408 719 1,363 Add / (less) non-cash items:Share of associate surplus/(defici t) (50) - - (50) - Depreciation and amortisation 4,943 4,456 4,531 4,943 4,531 Movement in Employee Enti tlements 24 - 127 24 127 Add / (less) items classified as investing or financing activities:Loss on disposa l of Investment 26 - - 26 - (Gains ) / losses on disposa l of property, plant and equipment (12) - 44 (12) 44

Add / (less) movements in working capitalitems:(Inc) / Dec Accounts receivable 264 390 (993) 264 (993) (Inc) / Dec Prepayments (660) - 657 (659) 657 (Inc) / Dec Inventories 484 (450) (739) 484 (739) Inc / (Dec) Accounts payable 18 - (406) 18 (405) Inc / (Dec) Income in Advance 122 (200) 656 122 656 Inc / (Dec) Accrued Expenses (1,239) - 1,045 (1,239) 1,045

Net cash inflow / (outflow) from operating activities 4,686 4,858 6,330 4,640 6,286



RECONCILIATION OF THE NET SURPLUS ON OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES


ANNUAL REPORT 2014

- 68 -

Statement of CommitmentsAs at 31 December 2014

Actual Actual Actual Actual2014 2013 2014 2013

$'000 $'000 $'000 $'000Capital commitmentsLand & Bui ldings 1,428 2,191 1,428 2,191 Equipment - - - - Hospita l i ty Redevelopment - - - -

1,428 2,191 1,428 2,191 Operating Lease commitmentsNon cancellable operating lease as lessee:PropertyNot later than one year 276 386 276 386 Later than one year and not later than five years 625 902 625 902

Later than five years - - - - 901 1,288 901 1,288

EquipmentNot later than one year - - - - Later than one year and not later than five years - - - -

Later than five years - - - - - - - -

ServicesNot later than one year 882 1,438 882 1,438 Later than one year and not later than five years 1,397 1,673 1,397 1,673

Later than five years - - - - 2,279 3,111 2,279 3,111

Franchise Course FeesNot later than one year 80 81 80 81 Later than one year and not later than five years - 81 - 81

Later than five years - - - - 80 162 80 162

TOTAL COMMITMENTS 4,688 6,752 4,688 6,752

Equipment leases can be renewed at the Insti tute's option, with rents set by reference to current market rates for i tems of equiva lent age and condition. The Insti tute does not have the option to purchase the asset at the end of the lease term.

There are no restrictions placed on the Insti tute by any of the leas ing arrangements .


STATEMENT OF COMMITMENTSas at 31 December 2014


ANNUAL REPORT 2014

- 69 -

Statement of ContingenciesAs at 31 December 2014

Contingent LiabilitiesThere are no contingent l iabi l i ties as at 31 December 2014 (Last Year $35k).

STATEMENT OF CONTINGENCIESfor the year ended 31 December 2014


ANNUAL REPORT 2014

- 70 -

Notes to the Financial StatementsFor the year ended 31 December 2014

1 Government Grants


$'000 $'000 $'000 $'000 $'000

Operational bulk grant 30,172 27271 29,618 30,172 29,618Non-EFTS funding 1,770 1863 1,575 1,770 1,575Chi ldcare Centre grant 810 800 775 810 775Qual i ty Reinvestment Programme - 0 - 0 0Disabi l i ty grant 100 100 100 100 100Maori & Pas i fika Grant 39 50 53 39 53Other - 79 - - -

32,891 30,163 32,121 32,891 32,121

2 Student tuition and course fees


$'000 $'000 $'000 $'000 $'000

Student tui tion and course fees 6,959 7,143 5,585 6,959 5,585

3 Revenue - Other


$'000 $'000 $'000 $'000 $'000

Accommodation 708 707 556 708 556Consul ting Income 32 - 57 32 57Course Materia l 5,802 5,327 4,465 5,802 4,465Chi ldcare Fees 299 250 287 299 287Sundry income 1,175 1,539 1,031 1,125 981Interest income 882 800 1,101 885 1,106

8,898 8,623 7,497 8,851 7,452

The amount shown is for courses undertaken outside the zero fee scheme (e.g. ITO courses, community courses, international students and non trade courses at the Christchurch Campus). Direct course costs that are directly attributable to students for each course are also shown here.


Group

NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2014

This includes monies received from Government by way of an Operational Bulk Grant, which i s based on equiva lent ful l -time s tudent (EFTS) levels and the funding category levels of these EFTS, and speci fic purpose – related grants . An analys is of Government grant funding i s as fol lows:



ANNUAL REPORT 2014

- 71 -

1 Government Grants


$'000 $'000 $'000 $'000 $'000

Operational bulk grant 30,172 27271 29,618 30,172 29,618Non-EFTS funding 1,770 1863 1,575 1,770 1,575Chi ldcare Centre grant 810 800 775 810 775Qual i ty Reinvestment Programme - 0 - 0 0Disabi l i ty grant 100 100 100 100 100Maori & Pas i fika Grant 39 50 53 39 53Other - 79 - - -

32,891 30,163 32,121 32,891 32,121

2 Student tuition and course fees


$'000 $'000 $'000 $'000 $'000

Student tui tion and course fees 6,959 7,143 5,585 6,959 5,585

3 Revenue - Other


$'000 $'000 $'000 $'000 $'000

Accommodation 708 707 556 708 556Consul ting Income 32 - 57 32 57Course Materia l 5,802 5,327 4,465 5,802 4,465Chi ldcare Fees 299 250 287 299 287Sundry income 1,175 1,539 1,031 1,125 981Interest income 882 800 1,101 885 1,106

8,898 8,623 7,497 8,851 7,452

The amount shown is for courses undertaken outside the zero fee scheme (e.g. ITO courses, community courses, international students and non trade courses at the Christchurch Campus). Direct course costs that are directly attributable to students for each course are also shown here.


Group


This includes monies received from Government by way of an Operational Bulk Grant, which i s based on equiva lent ful l -time s tudent (EFTS) levels and the funding category levels of these EFTS, and speci fic purpose – related grants . An analys is of Government grant funding i s as fol lows:



4 Personnel Costs


$'000 $'000 $'000 $'000 $'000

Salaries and Wages 19,606 18,981 18,965 19,606 18,965Employer Contributions to defined contribution plans 412 348 344 412 344Increase / (decrease) in employee enti tlements 180 - 216 180 216 Other 684 719 725 684 725Tota l Personnel Costs 20,882 20,048 20,250 20,882 20,250


$'000 $'000 $'000 $'000 $'000

Audit fees for the financia l s tatement audit - annual fee 90 100 87 90 87Leas ing of equipment and services 515 388 509 515 509Adverti s ing and publ ici ty 2,355 1,612 2,105 2,355 2,105Consul tancy 779 1,127 963 779 963Repairs and Maintenance 265 366 385 265 385Inventories Consumed 114 - 146 114 146Bad Debts 81 - 57 81 57Donations and Koha 1 1 1 1 1

Other Operating Expenses 17,931 17,019 14,515 17,931 14,515Tota l - other operating expenses 22,131 20,613 18,768 22,131 18,768


$'000 $'000 $'000 $'000 $'0001,500 265 496 1,506 508

- - - - -6 - 7 6 7

Call accounts442 - 2327 442 2,327334 - 246 334 246

14 - 14 14 14 16 - 16 16 16 1,762 - 516 1,762 516

Term Deposit accounts1,500 - - 1,500 - 2,520 - - 2,520 - 1,500 - - 1,500 - 1,500 - - 1,500 -

11,094 265 3,622 11,100 3,634

The carrying va lue of short-term depos i ts with maturi ty dates of three months or less approximates their fa i r va lue.Refer to note 9 for weighted average effective interest rate for cash and cash equiva lents .

ASBBank of New ZealandSouthland Bui lding SocietyWestpac

BNZ Cal l AccountANZ Cal l AccountASB Cal l Account

Rabobank Ca l l Account


Westpac Ca l l Account

BNZ Cheque Account

Cash in Hand

5 Other operating expenses

6 Cash and cash equivalents


Group


Westpac Cheque Account


ANNUAL REPORT 2014

- 72 -

4 Personnel Costs


$'000 $'000 $'000 $'000 $'000

Salaries and Wages 19,606 18,981 18,965 19,606 18,965Employer Contributions to defined contribution plans 412 348 344 412 344Increase / (decrease) in employee enti tlements 180 - 216 180 216 Other 684 719 725 684 725Tota l Personnel Costs 20,882 20,048 20,250 20,882 20,250


$'000 $'000 $'000 $'000 $'000

Audit fees for the financia l s tatement audit - annual fee 90 100 87 90 87Leas ing of equipment and services 515 388 509 515 509Adverti s ing and publ ici ty 2,355 1,612 2,105 2,355 2,105Consul tancy 779 1,127 963 779 963Repairs and Maintenance 265 366 385 265 385Inventories Consumed 114 - 146 114 146Bad Debts 81 - 57 81 57Donations and Koha 1 1 1 1 1

Other Operating Expenses 17,931 17,019 14,515 17,931 14,515Tota l - other operating expenses 22,131 20,613 18,768 22,131 18,768


$'000 $'000 $'000 $'000 $'0001,500 265 496 1,506 508

- - - - -6 - 7 6 7

Call accounts442 - 2327 442 2,327334 - 246 334 246

14 - 14 14 14 16 - 16 16 16 1,762 - 516 1,762 516

Term Deposit accounts1,500 - - 1,500 - 2,520 - - 2,520 - 1,500 - - 1,500 - 1,500 - - 1,500 -

11,094 265 3,622 11,100 3,634

The carrying va lue of short-term depos i ts with maturi ty dates of three months or less approximates their fa i r va lue.Refer to note 9 for weighted average effective interest rate for cash and cash equiva lents .

ASBBank of New ZealandSouthland Bui lding SocietyWestpac

BNZ Cal l AccountANZ Cal l AccountASB Cal l Account

Rabobank Ca l l Account


Westpac Ca l l Account

BNZ Cheque Account

Cash in Hand

5 Other operating expenses

6 Cash and cash equivalents


Group


Westpac Cheque Account



$'000 $'000 $'000 $'000 $'000

1,705 1,260 1,248 1,712 1,257Prepayments 864 540 965 864 965

2,569 1,800 2,213 2,576 2,222

Not past due - - - -Past due 1-30 days 1,220 985 1,220 995Past due 31-60 days 224 21 224 21Past due 61-90 days 261 233 261 233Past due >91 days - 9 - 9Tota l due 1,705 1,248 1,705 1,258

As of 31 December 2014 and 31 December 2013 a l l overdue receivables have been assessed for impairment and appropriately


$'000 $'000 $'000 $'000 $'000

Inventory held for the use in the provis ion of goods and services 415 300 359 415 359Publ ications held for sa le 191 200 254 191 254 Information Technology Inventory 2 50 3 2 3Ful l Si ze Works 716 450 1192 716 1192Total 1,324 1,000 1,808 1,324 1,808

The carrying amount of inventories i s measured at the lower of cost or net rea l i sable va lue/current replacement cost.

No inventories are pledged as securi ties for l iabi l i ties .

7 Trade and other receivablesSouthern Institute of Technology

The carrying va lue of debtors and other receivables approximates their fa i r va lue.

Group

Group

Trade Debtors

written off. There i s no provis ion for impairment on the remaining debtors .

Southern Institute of Technology8 Inventories

ANNUAL REPORT 2014

- 73 -


$'000 $'000 $'000 $'000 $'000

1,705 1,260 1,248 1,712 1,257Prepayments 864 540 965 864 965

2,569 1,800 2,213 2,576 2,222





$'000 $'000 $'000 $'000 $'000




Trade Debtors



Group

Group7 Trade and other receivables



$'000 $'000 $'000 $'000 $'000Current PortionLoans and receivablesShort-term depos i ts with maturi ties greater than 3 but less than 12 months

1,055 2,000 4,055 1,055 4,055- 2,000 1,500 - 1,500

1,000 3,000 3,750 1,061 3,850Kiwibank 2,000 2,000 - 2,000 - Rabobank 2,000 1,500 1,500 2,000 1,500

- 1,500 4,025 - 4,0251,500 2,500 3,000 1,500 3,000

Tota l 7,555 14,500 17,830 7,616 17,930

Non-current portionFair value through profit and loss - available for sale

4 3 3 4 3 - 50 50 - 50

Total 4 53 53 4 53

There were no impairment provis ions for other financia l assets .

Maturity analysis and effective interest ratesThe maturi ty dates for a l l other financia l assets are as fol lows:Cal l accounts maturing in three months or less 2,568 3,119 2,568 3,119Average Maturi ty Days : - - - - Weighted Average effective interest rate: 3.17% 2.73% 3.17% 2.73%

14,575 17,830 14,636 17,930Average Maturi ty Days : 104 170 104 170Weighted Average effective interest rate: 4.31% 4.03% 4.31% 4.03%

Polytechnics International New Zealand Limited

ANZ Banking Group (New Zealand) Limited

Group9 Other Financial Assets

Short-term depos i ts with maturi ties of 1 - 12 months

Foodstuffs (South Is land) Limited

NOTES TO THE FINANCIAL STATEMENTS

Westpac Southland Bui lding Society

Bank of New Zealand



ASB


$'000 $'000 $'000 $'000 $'000

1,705 1,260 1,248 1,712 1,257Prepayments 864 540 965 864 965

2,569 1,800 2,213 2,576 2,222





$'000 $'000 $'000 $'000 $'000




Trade Debtors



Group

Group7 Trade and other receivables


ANNUAL REPORT 2014

- 74 -

10 Pr

oper

ty, P

lant a

nd Eq

uipm

ent

Mov

emen

ts fo

r eac

h cla

ss o

f pro

perty

, pla

nt, a

nd e

quip

men

t for

the

Sout

hern

Inst

itute

of T

echn

olog

y are

as f

ollo

ws:

Cost/

Accu

mula

ted

Carry

ing

Curre

nt ye

arCu

rrent

year

Curre

nt ye

arCu

rrent

year

Reva

luatio

nCo

st/Ac

cum

ulate

dCa

rrying

va

luatio

nde

prec

iation

amou

ntad

dition

s/dis

posa

lsim

pairm

ent

depr

eciat

ionsu

rplus

reva

luatio

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prec

iation

amou

nt1/

01/2

013

char

ges

1/01

/201

3tra

nsfe

rs(n

et of

ch

arge

s31

/12/

2013

and i

mpa

irmen

t31

/12/

2013

1/01

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3ac

cum

ulate

dch

arge

sde

prec

iation

)31

/12/

2013

$000

's$0

00's

$000

's$0

00's

$000

's$0

00's

$000

's$0

00's

$000

's$0

00's

Sout

hern

Insti

tute

of Te

chno

logy

Land

and

Bui

ldin

gs62

,415

(3

,227)

59

,188

7,8

93

(9

72)

-

(1

,830)

3,5

37

67

,822

(6

)

67,81

6

Leas

ehol

d44

4

(1

78)

266

-

(1

5)

-

(4

7)

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6

(1

92)

204

Com

pute

rs4,5

40

(2,88

6)

1,654

2,135

(28)

-

(1,28

1)

-

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(2

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2,4

80

Fu

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nd Eq

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9,529

(7

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(2

)

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9,3

95

(7

,351)

2,0

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Lib

rary

Book

s49

1

-

491

167

-

(6

)

(128

)

-

652

(128

)

52

4

Ve

hicle

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(5

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96

73

-

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(61)

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(556

)

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orks

in Pr

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4,255

Asse

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-

37

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Tota

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80,33

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(14,1

62)

66

,173

13

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(1

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(6

)

(4,33

9)

3,537

88,60

2

(10,7

96)

77

,806

Cost/

Accu

mula

ted

Carry

ing

Curre

nt ye

arCu

rrent

year

Curre

nt ye

arCu

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year

Reva

luatio

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amou

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dition

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eciat

ionsu

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's$0

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$000

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Sout

hern

Insti

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of Te

chno

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Land

and

Bui

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(6

)

67,81

6

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-

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(2,31

4)

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74

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(2

,320)

72

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Le

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old

396

(192

)

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(47)

-

396

(239

)

15

7

Co

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ters

5,043

(2

,563)

2,4

80

1,5

52

(5

)

-

(1

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-

5,636

(2,75

8)

2,878

Furn

iture

and

Equi

pmen

t9,3

95

(7,35

1)

2,044

1,635

(24)

-

(895

)

-

10,09

1

(7,33

1)

2,760

Libra

ry Bo

oks

652

(128

)

52

4

17

0

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(5)

(1

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81

7

(2

61)

556

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cles

664

(556

)

10

8

24

(1

)

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1)

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64

4

(5

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80

Wor

ks in

Prog

ress

4,255

-

4,255

(3,23

0)

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As

sets

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d fo

r Sal

e37

5

-

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(225

)

-

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15

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Tota

l Sou

ther

n Ins

titut

e of T

echn

ology

88,60

2

(10,7

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77

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72

(3

0)

(5)

(4

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7

(13,4

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79

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Ther

e ar

e no

rest

rictio

ns o

ver t

he ti

tle o

f the

Inst

itute

's pr

oper

ty, p

lant

and

equ

ipm

ent n

or a

re th

ere

any p

rope

rty, p

lant

and

equ

ipm

ent p

ledg

ed a

s sec

urity

for l

iabi

litie

s. As

sets

hel

d fo

r Sal

e co

mpr

ise

sing

le st

orey

hou

se ty

pe u

nits

, pre

vious

ly us

ed a

s cla

ssro

oms,

but w

hich

hav

e be

com

e su

rplu

s to

requ

irmen

ts. T

hese

are

hel

d at

the

lowe

r of c

ost a

nd n

et re

alis

able

valu

e.

NOTE

S TO

THE F

INAN

CIAL S

TATE

MEN

TSfo

r the

year

end

ed 31

Dec

embe

r 201

4

ANNUAL REPORT 2014

- 75 -

10 P

rope

rty, P

lant

and

Equ

ipm

ent (

cont

inue

d)

Mov

emen

ts fo

r eac

h cl

ass

of p

rope

rty, p

lant

, and

equ

ipm

ent f

or th

e Gr

oup

are

as fo

llow

s:

Cost

/Ac

cum

ulat

edCa

rryin

g Cu

rrent

yea

rCu

rrent

yea

rCu

rrent

yea

rCu

rrent

yea

rRe

valu

atio

nCo

st/

Accu

mul

ated

Carry

ing

valu

atio

nde

prec

iatio

nam

ount

addi

tions

/di

spos

als

impa

irmen

tde

prec

iatio

nsu

rplu

sre

valu

atio

nde

prec

iatio

nam

ount

1/01

/201

3ch

arge

s1/

01/2

013

trans

fers

(net

of

char

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ANNUAL REPORT 2014

- 76 -

11 Intangible Assets


Group

Cost $'000 $'000Balance at 1 January 2013 970 970Additions / Transfers 771 771 Disposa ls - - Balance at 31 December 2013 1,741 1,741

Balance at 1 January 2014 1741 1741Additions 693 693 Transfers 281 281 Disposa ls - - Balance at 31 December 2014 2,715 2,715

Accumulated Amortisation $'000 $'000Balance at 1 January 2013 780 780Amortisation Expense 192 192Disposa ls - - Balance at 31 December 2013 972 972

Balance at 1 January 2014 972 972Amortisation Expense 354 354 Transfers 193 193 Disposa ls - - Balance at 31 December 2014 1,519 1,519

Carrying Amounts $'000 $'000At 1 January 2013 190 190At 31/12/2013 and 1/1/2014 769 769At 31 December 2014 1,196 1,196

There are no restrictions over the title of the Institute's intangible assets nor are any intangible assets pledged as security for liabilities.


ANNUAL REPORT 2014

- 77 -

12 Trade and other payables


$'000 $'000 $'000 $'000 $'000

Trade Payables 297 2,500 295 297 295Income in advance

3,082 1,980 2,693 3,082 2,693 26 15 15 26 15 7 5 6 7 6

352 500 631 352 631

Accrued expenses 942 - 2,235 942 2,235Contract Retentions 100 - 202 100 202

49 - 73 49 734,855 5,000 6,150 4,855 6,150

Creditors and other payables are non interest bearing and normal ly settled on 20 day terms and the above amounts approximate theirfa i r va lue.


$'000 $'000 $'000 $'000 $'000

684 600 566 684 5661,177 1,100 1,126 1,177 1,126

Sick Leave 59 - 72 59 72199 50 175 199 175

2,119 1,750 1,939 2,119 1,939

1,920 1,700 1,764 1,920 1,764199 50 175 199 175

Total Employee Entitlements 2,119 1,750 1,939 2,119 1,939

The present va lue of the long service obl igation depends on a number of factors that are determined on an actuaria l bas is us ing a number of assumptions . Two key assumptions in ca lculating this l iabi l i ty include the discount rate and the sa lary inflation factor. A movement of +/- 1% on ei ther of these factors produces a non materia l impact on the present va lue of long service obl igations .



Non-Current Portion

Represented by:

Group

Annual Leave

Current Portion

Long Service Leave

- Student fees in advance- Hal l s of Res idence Bonds- Elderhostel fees in advance- Other fees in advance


Payrol l Accrued

13 Employee Entitlements

GST payable

Group

11 Intangible Assets


Group

Cost $'000 $'000Balance at 1 January 2013 970 970Additions / Transfers 771 771 Disposa ls - - Balance at 31 December 2013 1,741 1,741

Balance at 1 January 2014 1741 1741Additions 693 693 Transfers 281 281 Disposa ls - - Balance at 31 December 2014 2,715 2,715

Accumulated Amortisation $'000 $'000Balance at 1 January 2013 780 780Amortisation Expense 192 192Disposa ls - - Balance at 31 December 2013 972 972

Balance at 1 January 2014 972 972Amortisation Expense 354 354 Transfers 193 193 Disposa ls - - Balance at 31 December 2014 1,519 1,519

Carrying Amounts $'000 $'000At 1 January 2013 190 190At 31/12/2013 and 1/1/2014 769 769At 31 December 2014 1,196 1,196

There are no restrictions over the title of the Institute's intangible assets nor are any intangible assets pledged as security for liabilities.


ANNUAL REPORT 2014

- 78 -

14 Equity


$'000 $'000 $'000 $'000 $'000

80,205 79,477 78,714 80,326 78,880 766 662 1,408 719 1,363

Capita l Contribution - - 85 - 85 - - (2) - (2) - - - - -

80,971 80,139 80,205 81,045 80,326

15,807 12,270 12,270 15,807 12,270 - - 3,537 - 3,537 15,807 12,270 15,807 15,807 15,807

Total Equity 96,778 92,409 96,012 96,852 96,133


Restricted reserves consist of: $'000 $'000 $'000 $'000 $'000

1 1 1 1 130 28 28 30 28

87 83 83 87 834 4 4 4 44 4 4 4 47 8 8 7 8

133 128 128 133 128

Restricted Reserves are held in trust for s tudent activi ties and awards and are included in the ba lance of reta ined earnings .

Transfers from restricted

Net surplus

Transfers to restricted reserves

Warren Forbes Award

Fletcher Chal lenge Award

Property reva luation ga ins

Property Revaluation Reserve

As at 31 December

Whare Awhina Fund

Patricia O'Connor Award



As at 1 January

Programme FundsClearwater Estate Trust

As at 31 December

As at 1 January

Retained Earnings


Group

14 Equity


$'000 $'000 $'000 $'000 $'000

80,205 79,477 78,714 80,326 78,880 766 662 1,408 719 1,363

Capita l Contribution - - 85 - 85 - - (2) - (2) - - - - -

80,971 80,139 80,205 81,045 80,326

15,807 12,270 12,270 15,807 12,270 - - 3,537 - 3,537 15,807 12,270 15,807 15,807 15,807

Total Equity 96,778 92,409 96,012 96,852 96,133


Restricted reserves consist of: $'000 $'000 $'000 $'000 $'000

1 1 1 1 130 28 28 30 28

87 83 83 87 834 4 4 4 44 4 4 4 47 8 8 7 8

133 128 128 133 128

Restricted Reserves are held in trust for s tudent activi ties and awards and are included in the ba lance of reta ined earnings .

Transfers from restricted

Net surplus

Transfers to restricted reserves

Warren Forbes Award

Fletcher Chal lenge Award

Property reva luation ga ins

Property Revaluation Reserve

As at 31 December

Whare Awhina Fund

Patricia O'Connor Award



As at 1 January

Programme FundsClearwater Estate Trust

As at 31 December

As at 1 January

Retained Earnings


Group

ANNUAL REPORT 2014

- 79 -

16 Related party transactions and key management personnel

The Institute is a wholly owned entity of the Crown. The Government influences the roles of the Institute as well as being its major source of revenue. During the year the Institute purchased the following items from firms in which Council members are associated with. The following transactions were carried out and balances were outstanding with related parties:

Actual2014

$

Actual2013

$DriveSafe Southland - M Grumball (Director)

Services provided by the Institute - 80

Services provided to the Institute - -Accounts Payable to the Institute - -

Accounts Receivable from the Institute - -

Sub Contract Academic Delivery

Waihopai Runaka - M Skerrett (Chair)

Services provided by the Institute - -

Goods provided to the Institute 674 536

Accounts Payable to the Institute - -

Accounts Receivable from the Institute - -

Facilities hire - Marae

15 Councillors’ Fees

Actual Budget Actual2014 2014 2013

Addie, D 10,000 5,000 Brown, S 28,000 28,000 Cooney, G - 5,000 Grant, J 10,000 3,333 Harding, ER - 4,167 Heenan, P 18,000 18,000 Jackson 10,000 5,000 Rose, D - 5,000 Skerrett, M 10,000 10,000 Ward, T 10,000 10,000

Tota l Counci l lors ’ Fees 96,000 100,000 93,500


Southern Institute of Technology and Group


ANNUAL REPORT 2014

- 80 -

16 Related party transactions and key management personnelActual

2014$

Actual2013

$Venture Southland - P Simmonds (Board Member)Services provided by the Institute 4,725 22,470Services provided to the Institute 11,161 14,830Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Survey conducted on behalf of Venture Southland

Hockey Southland - P Simmonds (Chair)Services provided by the Institute 1,302 913Services provided to the Institute - 243Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Sponsorship

Southern Education Charitable Trust5,173

Services provided by the Institute 50,173 50,000Services provided to the Institute - -Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Activity and Employment Services

Southern Lakes English College Limited - B Guha (Director) & S Brown (Director)Services provided by the Institute - -Services provided to the Institute 248,056 -Accounts Payable to the Institute - -Accounts Receivable from the Institute 43,153 -Provision of English Language CoursesTim Ward a Council Member is the managing partner at BDO who are auditors to Southern Lakes English College

Gen-I - G Cooney (Director/Shareholder)Services provided by the Institute - 611Services provided to the Institute - 2,300,121Accounts Payable to the Institute - 400Accounts Receivable from the Institute - 125,713Information Technology Support Services

Preston Russell Law - G Cooney (Independent Chair)Services provided by the Institute - -Services provided to the Institute - 7,058Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Legal Services

CGL t/a Fiona Tyrie Consulting - B Guha (Director)Services provided by the Institute - -Services provided to the Institute 7,359 -Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Consultancy Services

Ferhardi Limited - B Guha (Director)Services provided by the Institute - -Services provided to the Institute 6,179 -Accounts Payable to the Institute - -Accounts Receivable from the Institute - -Consultancy Services

No provision has been required, nor any expense recognised, for impairment of receivables from related parties

ANNUAL REPORT 2014

- 81 -

16 Related party transactions and key management personnel (Continued)

17 Categories of financial assets and liabilities


$'000 $'000 $'000 $'000

Loans and receivablesCash and cash equiva lents 11,094 3,622 4,080 3,634 Debtors and other receivables 1,705 1,248 1,705 1,258 Investments - Term depos i ts 7,555 17,830 7,616 17,930

Total loans and receivables 20,354 22,700 13,401 22,822


$'000 $'000 $'000 $'000Financial assets at fair value through profit and lossInvestments - Equi ty investments - - - -

Available for Sale financial assetsInvestments 4 53 4 53 Total available for sale financial assets 4 53 4 53

Financial liabilities measured at amortised costCreditors and other payables 1,388 2,805 1,388 2,805 Borrowings - secured loans - - - -

Total financial liabilities measured at amortised cost 1,388 2,805 1,388 2,805

18 Ageing of financial liabilities

Less than 6 Between 6 Between 1Months months and 5 years

and 1 yearSouthern Institute of Technology and Group 2013 $'000 $'000 $'000

Creditors and other payables 2,805 - - Borrowings - - -

Southern Institute of Technology and Group 2014





Key management personnel compensation Actual2014

$’000

Actual2013

$’000

Salaries and other short-term employee benefits 1,327 1,370

Key management personnel include the Chief Executive, Heads of Faculties (seven staff 2014: six staff 2013) and two members of the senior management team. Council members are considered part of the key management personnel and their fees have been included above and also in note 15. There are close family members of key management personnel employed by the Southern Institute of Technology. The terms and conditions of those arrangements are no more favourable than would have been adopted if there were no relationship with key management personnel. These amounted to:

Actual2014

$’000

Actual2013

$’000

Remuneration paid close family members of key management personnel 176 175

ANNUAL REPORT 2014

- 82 -

19 Credit Risk

The Institute has minimal credit risk in its holdings of students, trade debtors and other financial instruments. These instruments include cash, bank deposits, and accounts receivable. The Institute places its investments with registered banks and financial institutions. The Institute spreads its exposure to risk by limiting the amount that can be invested in any one institution. The Institute believes that these policies reduce the risk of any loss which could arise from its investment activities. Fixed interest deposits mature monthly when cash requirements are reviewed. Accounts receivable are stated at their estimated realisable value after providing for amounts not considered recoverable. There is no significant concentration of credit risk for accounts receivable. 20 Market Risk

The Institute is not exposed to interest rate risk on its financial assets. Deposits are placed on pre-determined interest rates, and this reduces any potential market risks. The Institute has no exposure to currency risk. 21 Liquidity Risk

The Institute maintains a target level of investments which mature within the next 12 months. The maturity profiles of the Institute’s interest bearing investments are disclosed in notes 6 and 9 respectively.

22 Capital Management

The Institute’s capital is its equity, which comprises retained earnings and reserves. Equity is represented by its assets. The Institute manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The objective of managing the Ministry’s equity is to ensure the Institute effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern.

23 Subsequent Events

There have been no material subsequent events.

24 Performance against Budget

Southern Institute of Technology experienced an increase in Income of 6% as compared to budget. This was mainly due to additional funding being received for Priority Trades subsequent to the Budget having been finalised. There was a similar increase in Expenditure arising from these additional EFTS. The surplus achieved of $0.7 million was in line with the budgeted surplus.

17 Categories of financial assets and liabilities


$'000 $'000 $'000 $'000

Loans and receivablesCash and cash equiva lents 11,094 3,622 4,080 3,634 Debtors and other receivables 1,705 1,248 1,705 1,258 Investments - Term depos i ts 7,555 17,830 7,616 17,930

Total loans and receivables 20,354 22,700 13,401 22,822


$'000 $'000 $'000 $'000Financial assets at fair value through profit and lossInvestments - Equi ty investments - - - -

Available for Sale financial assetsInvestments 4 53 4 53 Total available for sale financial assets 4 53 4 53

Financial liabilities measured at amortised costCreditors and other payables 1,388 2,805 1,388 2,805 Borrowings - secured loans - - - -

Total financial liabilities measured at amortised cost 1,388 2,805 1,388 2,805

18 Ageing of financial liabilities

Less than 6 Between 6 Between 1Months months and 5 years

and 1 yearSouthern Institute of Technology and Group 2013 $'000 $'000 $'000


Southern Institute of Technology and Group 2014





ANNUAL REPORT 2014

- 83 -

The Childcare Centre is an integral part of Southern Institute of Technology’s provision of student services. Furniture and Equipment are purchased by Southern Institute of Technology and the use of these assets is reflected in the depreciation charge. Repairs and maintenance costs on the buildings used are recharged through occupancy charges in the same way as all other Cost Centres.

No capital charge has been applied by Southern Institute of Technology on the Childcare Centre.

25 Childcare CentreActual Budget Actual

2014 2014 2013$'000 $'000 $'000

810 800 775299 250 287

Other Income1,109 1,050 1,062

846 800 78736 72 38

4 4 63 4 2

889 880 833220 170 229

2014 2013

Hours Hours

20,458 23,045Under two year olds

Statistics for Funded Hours

Net Surplus

Payrol l and Related Expenses

The surplus on the Chi ldcare Centre account was arrived at as fol lows:

CommunicationDepreciation

Chi ldcare FeesMinis try Grants

Less Expenditure

Income received

Consumables


ANNUAL REPORT 2014

- 84 -

26 Investment in associate

Actual Actual2014 2013

$'000 $'000

The Insti tute acquired a 49% shareholding in Southern LakesEngl i sh Col lege Limited on 1st January 2014.

Movement in the carrying amount of the investment in associate:Balance at 1 January - - New Investments during the year 306 - Disposa l of Investments during the year - - Share of tota l comprehens ive income 50 - Dividend - - Balance at 31 December 356 -

Summarised financial information of associate presented on a gross basis1,114 -

814 - 1,409 -

102 - 49% -

Share of associate's contingent l iabil ities incurred jointly with other investors - - Contingent l iabil ities that arise because of several l iabil ity - -

Southern Lakes Engl i sh Col lege Limited i s an unl i s ted company. Accordingly, there are no publ i shed price quotationsto determine the fair value of this investment.

Group's interest

Assets


Liabi l i tiesRevenueSurplus/(defici t)


ANNUAL REPORT 2014

- 85 -

Statement of ResourcesFor the year ended 31 December 2014

Library

The Institute’s Library has a collection of 23,150 books and 150 regular periodical subscriptions. Issues for 2014 totalled 30,034. The depreciated replacement cost of Library stock is $555,948. The Library had a permanent staff of 4.96 FTE during 2014.

26 Investment in associate

Actual Actual2014 2013

$'000 $'000

The Insti tute acquired a 49% shareholding in Southern LakesEngl i sh Col lege Limited on 1st January 2014.

Movement in the carrying amount of the investment in associate:Balance at 1 January - - New Investments during the year 306 - Disposa l of Investments during the year - - Share of tota l comprehens ive income 50 - Dividend - - Balance at 31 December 356 -

Summarised financial information of associate presented on a gross basis1,114 -

814 - 1,409 -

102 - 49% -

Share of associate's contingent l iabil ities incurred jointly with other investors - - Contingent l iabil ities that arise because of several l iabil ity - -

Southern Lakes Engl i sh Col lege Limited i s an unl i s ted company. Accordingly, there are no publ i shed price quotationsto determine the fair value of this investment.

Group's interest

Assets


Liabi l i tiesRevenueSurplus/(defici t)


Staff

2014 2013 2014 2013 2014 2013 2014 2013

43.27 44.33 7.13 6.33 1.00 1.00 51.40 51.6643.02 41.27 4.57 4.58 1.00 1.00 48.59 46.8540.25 37.51 14.27 12.62 1.00 1.00 55.52 51.134.55 4.93 1.73 1.67 6.28 6.60

Queenstown Campus 3.76 3.18 1.49 1.43 5.25 4.6125.39 24.23 13.03 11.39 0.35 38.42 35.97

SIT2LRN 1.48 0.97 22.22 20.08 1.34 1.00 25.04 22.05

0.31 3.26 79.68 79.99 4.00 3.46 83.99 86.7125.09 26.29 25.09 26.29

162.03 159.68 169.21 164.38 8.34 7.81 339.58 331.87

Finance, Admin, Di rectorate, Human Resources , Faci l i ties , Educational Services , Library, Marketing, Caretakers , Chi ldcare, Grounds ,

STATEMENT OF RESOURCESfor the year ended 31 December 2014

New Media , Arts and Bus inessHealth, Humanities and ComputingTrades and TechnologyGore Campus

Chris tchurch Campus

The Insti tute employs the fol lowing ful l -time equiva lent s taff:

Tutoria l Non-Teaching and Al l ied Manageria l Tota l

ANNUAL REPORT 2014

- 86 -

Glossary of Acronyms

EER External Evaluation and Review

EEO Equal Education/Employment Opportunities

EFTS Equivalent Full Time Student

FTE Full Time Equivalent

ITP Institutes of Technology and Polytechnics

KPI Key Performance Indicators

MOE Ministry of Education

NQF National Qualification Framework

NZIFRS New Zealand International Financial Reporting Standards

NZQA New Zealand Qualifications Authority

QMS Quality Management Systems

SAC Student Achievement Component

SAEER Self-Assessment, and External Evaluation and Review

SDR Single Data Return

SIT Southern Institute of Technology

TEC Tertiary Education Commission

TEO Tertiary Education Organisation

TES Tertiary Education Strategy

ANNUAL REPORT 2014

- 87 -

Contact DetailsSouthern Institute of TechnologyPrivate Bag 90114133 Tay StreetInvercargill 9840Southland

Freephone 0800 4 0 FEES (0800 4 0 3337)Phone (03) 211 2699Fax (03) 214 4977Email [email protected]

www.sit.ac.nz

Documents

Annual report 2014