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Business Plan PerformanceOur Business Plan for 2012 continuedto focus on the key strategic challengeswe identified in our 2011 to 2013Investment Plan.CHALLENGE 2:Growing international students and revenueWe achieved 347.6 international student EFTS, representing 14percent growth on 2011. This is an excellent result as nationally theinternational student market remained tight in 2012.2012 Priorities• Recruiting students for successProgress was made on opportunities that are likely to increase ourstudent numbers in the future. An agreement was signed with GuangxiPolytechnic of Construction in China for graduates of selected civil• Supporting students to achieveengineering and creative technologies (interior design) 1 programmes• Making efficient use of facilities, equipment and resourcesto progress into programmes at WelTec, including the New Zealandto support learners’ achievementDiploma in Engineering. We also started work with Whitireia on• Delivering high quality research innovation and technologypromotion into the Middle East and South East Asia that will havetransfer that informs teachingfuture benefits.• Maintaining a positive institutional profileInternational student educational performance exceeded expectations,• Delivering ongoing financial sustainabilitywith a completion rate of 89 percent - more than six percent over theWe had a successful year on many fronts.target of 83 percent.100 percent of SAC funding was achieved, a prerequisite for additionalCHALLENGE 3:Priority Trades and Pasifika scholarship funding. Financially, ourparent operating profit of $1.6m exceeded budget by $0.1m,Developing Campuses to Support Future Deliveryrepresenting a healthy 2.9 percent return. This is a satisfying result The completion of three levels of the new $13m campus for ourgiven the changing government funding and policy settings and School of Hospitality alongside Le Cordon Bleu NZ in Wellington’scontinued uncertainty as business began to emerge from the impact Cuba Street was a highlight representing more than 2 years ofof the global recession.planning and construction spanning twenty months. The newcampus is a state of the art facility which can accommodate up toCHALLENGE 1:540 students at any one time with a maximum of 700 students whenthe final level is developed. The Prime Minister launched Le CordonGrowing commercial andBleu NZ at a function hosted by the President of Le Cordon Bleu at anon-government revenuefunction in September. This was followed by the Minister for TertiaryGrowth from commercial revenue streams via our 100 percent owned Education, Skills and Employment, the Hon Steven Joyce launchingsubsidiary WelTec Connect Limited, progressed during the year with a the Wellington Institute of Technology School of Hospitality on 24number of contracts in different stages of negotiation. In the financial October 2012 at an evening event attended by Wellington’s hospitalityclimate gaining commitment from clients to projects was difficult. industry and secondary schools.It has been our experience that the lead time from first discussions WelTec worked with the Hutt City Council (HCC) in developingwith clients to delivering a finalised contract is significantly longer a proposed change to the HCC District Plan (Plan Change 25). Ifthan planned. As a consequence the total revenue from commercial approved, this plan change will create a Tertiary Education Precinctrevenue and research contracts of almost $800k was not as high for WelTec’s Petone campus. At present education is not a permittedas we planned for the year. To address this WelTec Connect has activity for the various zonings that relate to the Petone campus.broadened its business development activity to bring in more clients A hearing has been convened by HCC in front of independentand structure projects in a way that ensures they can be achieved in Commissioners in early April 2013 to receive submissions in relationa shorter timeframe.to the proposed plan change.Our investment in the Le Cordon Bleu NZ partnership also contributed The Auckland campus was refurbished after a review of options forto this goal.Auckland delivery confirmed that the existing site is the best option inthe medium term.As part of the Students First strategic partnership, a WelTec andWhitireia joint campus development strategy was completed in 2012.The Strategy sets the framework and approach to campusdevelopment for WelTec and Whitireia for the next 5 years. Changeto N Block at Petone campus and satellite delivery areas was put onhold whilst the strategy was developed resulting in Property, Plant andEquipment expenditure being below budget.1 This figure represents the total investment. WelTec’s share was $7M.52 | WELLINGTON INSTITUTE OF TECHNOLOGY
WelTec took a proactive approach to seismic strengthening at itscampuses. The building programme to ensure buildings meet or exceedbuilding standards continued into 2012. Stage 1 of WelTec’s seismicstrengthening programme at the Petone campus was completedin February 2012 with the installation of a new light-weight roof for ABlock and strengthening of level 3 of C Block. The Council approvedexpenditure of $2.55m for Stage 2 for strengthening of levels 1 and 2of C Block and on parts of T Block. Whilst the C Block strengtheningwork was undertaken the opportunity was taken for a general upgradeto this building.CHALLENGE 4:Managing financial assets to ensure sustainabilityWelTec’s core business exceeded budgeted levels in 2012. Central tothe achievement of this result was the delivery of 100 percent of coreInvestment Plan SAC funding. Achieving this threshold, combinedwith delivering 133 additional trades training EFTS compared to 2011,allowed WelTec to recognise additional Priority Trades and Pasifikatrades funding.WelTec was again awarded a low risk rating by the TEC against theFinancial Monitoring Framework.The following table provides a summary of our EFTS achieved.PERFORMANCE2012 Target 2012 ActualProportion of SAC funding achieved 100% 100%Total EFTS achieved 4,516 4,401In March the Council gave approval for WelTec and Whitireia tojointly acquire the assets and revenue streams associated with theliquidated Private Training Establishment (PTE) Computer Power.Now rebranded as Computer Power Plus the financial results for thenine months to December achieved a positive financial contribution.We have plans to further improve the financial and educationalperformance of this joint venture in 2013.CHALLENGE 5:Assisting Maori, Pasifika and young people toachieve in tertiary educationParticipation by Maori, Pasifika and people under 25 largelyexceeded our targets. Overall course completion rates for thesegroups exceeded our 2012 Investment Plan targets and significantlyimproved on 2011’s results.We continued to monitor student performance closely and work withthose at risk through a range of pastoral and educational supportprogrammes including targeted mentoring and numeracy andliteracy support.A Youth Strategy to improve the educational performance for under-25s was approved in 2012. Key activities from the strategy havebeen included in the 2013-15 Investment Plan. A report on MaoriSuccess at WelTec endorsed Tamaiti Whangai and we resolved toadd more resources to this successful initiative.The following table shows the proportion of Maori, Pasifika and youthstudying at WelTec. These exceed the local population demographicfor these groups.SAC (includes ACE) 3,006 3,091International 400 347PRIORITY GROUPS – PARTICIPATION(SAC AND YOUTH GUARANTEE)2012 Target 2012 ActualITO 600 433Youth450(110 YG100 TA250 STAR)473(103 YG91 TA279 STAR)Full fees 50 57Our subsidiary, WelTec Connect Limited, did not met the financialcontribution budgeted. 2012 was the second year of operations forWelTec Connect and the lessons learned during the year have beenincorporated into the 2013 business plan for this subsidiary.Le Cordon Bleu NZ started delivery during the year, a significantmilestone. Student numbers and core business financial resultsreached the business case target levels.Proportion Maori 17% 19%• Levels 1 - 3 6% 9%• Levels 4 and above 11% 10%Proportion Pasifika 9.6% 10.8%• Levels 1 - 3 2.3% 4.3%• Levels 4 and above 7.3% 6.6%Proportion aged under 25 61% 64%• Levels 1 - 3 17% 22%• Levels 4 and above 44% 42%Financial and capital management continued to be improved duringthe year with the implementation and development of Technology OneEnterprise Budgeting and Asset Management modules. This resultedin the Asset Information Improvement Plan being 78% complete byyear end which provides a sound base for future asset replacementcycles. The combined functionality of these new modules improvedthe transparency of our operational planning and directly contributedto WelTec maintaining a ‘low’ financial risk rating with the TEC.2012 ANNUAL REPORT | 53
Page 1 and 2: 2012ANNUAL REPORTLACHLAN CLELLAND -
Page 3 and 4: Mission/KaupapaWellington Institute
Page 5 and 6: 2012 SummaryADDING VALUE9489 STUDEN
Page 7 and 8: 2012 SummaryFUNDINGEFTS BY SOURCEFU
Page 9 and 10: Aka ArthurAka Arthur, of Ngati Toa,
Page 11 and 12: James SmithCHIEF FINANCIALOFFICERPe
Page 13: Industry Advisory CommitteesAlcohol
Page 16 and 17: Whakarongo ake auKi te tangi a te m
Page 18 and 19: Minister for Tertiary Education, Sk
Page 20 and 21: 20 | WELLINGTON INSTITUTE OF TECHNO
Page 22 and 23: Ma wai raa, e tau rimaTe Whare Wana
Page 24 and 25: Scott Bregmen, teaching rhythm and
Page 28 and 29: Pasifika TradesPasifika students ga
Page 32 and 33: Qualification completion2010Actual2
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Page 46 and 47: Our EnvironmentWe are proud to have
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Page 50 and 51: Educational PerformanceActual 2011
Page 54 and 55: Business Plan PerformanceCHALLENGE
Page 58 and 59: Statement of Comprehensive IncomeFo
Page 60 and 61: Balance SheetAs at 31 December 2012
Page 62 and 63: Notes to the Financial Statements1
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Page 82 and 83: ResponsibilitiesIn the financial ye
Page 84 and 85: circumstances but not for the purpo
Page 88: Private Bag 39803Wellington Mail Ce

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