Annual Report 2009 (PDF 2 MB) - Wellington Institute of Technology

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In August, the Government introduced the Education(Polytechnics) Amendment Bill into Parliament. Key features ofthe Bill were a reduction in the size of councils to eight membersand changes in council composition. The Minister for TertiaryEducation stated the objectives of the Bill were to: improve the governance capability and effectiveness ofpolytechnic councils; and allow the Crown to more effectively respond to risks posed bypolytechnics with educational or financial performance risks.In September, the Council formed a Governance EstablishmentCommittee of three councillors and the CE to oversee and ensurean effective transition by the Council to the new governancestructure.In October, along with other polytechnics, we made written andoral submissions on the Bill to the Education and Science SelectCommittee. We supported the need for improved governanceand a reduction in council size. The Committee recommendedsome changes to the Bill and the resulting Education(Polytechnics) Amendment Act 2009 was passed into law in midDecember. The Act provides for four council members to beappointed by the Minister and four members to be appointed bythe council.Councillors’ fees were last reviewed by the Government inNovember 2006. The fees, when benchmarked againstcomparable organisations, are inadequate to attract and retainthe skills required to do the business. The opportunity cost ofbeing a councillor often leads to suitable candidates not beingavailable and there is increasing difficulty in getting appropriatepeople who are able to devote the necessary time to the role.An appropriate fees level is an important factor in contributing toimproved governance. The Council has voluntarily capped itsfees in 2008 and 2009 at below permissible levels. The $75K feespaid in 2009 for the 14 member Council, represents 0.15% of totalincome.Work with governmentThroughout 2009, WelTec worked proactively with the Ministryof Education, the Minister for Tertiary Education and the TECto comment on the implications of and solutions for proposedchanges to funding and policy. We also engaged withthese Government representatives in regard to our campusdevelopment plans in Wellington City.AcknowledgementsI wish to thank my Council colleagues for their professionalsupport during yet another demanding year. Despite theuncertainties arising from the pending governance changes tothe composition of polytechnic councils, our members remainedfocused on the job in hand.Our Chief Executive, Dr Linda Sissons, demonstrated a very highlevel of leadership and commitment which has been reflectedin WelTec’s excellent performance in 2009. Linda’s abilitiesare also reflected in her election as the first chair of the MetroGroup. I have supported Linda taking up director-level positionsin both New Zealand and overseas and this has enhanced thevery material contribution she makes to WelTec and the widereducation community.WelTec staff worked with dedication and good teamwork tomeet the challenges in 2009, following significant organisationalchanges at the end of 2008.OutlookThe new Tertiary Education Strategy (TES) 2010-2015, releasedin December, outlines the Government’s strategy and prioritiesfor the next three yearly investment cycle starting in 2011. Thetertiary education system will play a key role in ensuring NewZealand has the skills it needs to improve economic performanceand support more sustainable growth in the future. WelTec’sresponse to the TES will be a major focus of work in 2010.The Education (Polytechnics) Amendment Act 2009 cameinto effect on 1 March 2010 and the reconstituted ITP councilstake office from 1 May 2010. I am sure the Act will significantlyimprove governance and, in turn, performance across the sectorand also bring new skills to the reconstituted councils to meet arapidly changing domestic and international environment.Our overall objective is to develop an institution that performs toa very high level both educationally and financially, is sustainableover the long term, thereby meeting the high expectations of theGovernment shareholder and all our stakeholders, particularly ourstudents.I am confident of WelTec’s capability to meet future challengesand take advantage of the opportunities.CHAIRPERSON’S REPORTPeter PrestonBE Civil (Cant.) FIPENZ, F Inst. DWelTec Council ChairpersonWELLINGTON INSTITUTE OF TECHNOLOGY | 2009 ANNUAL REPORT07
CHIEF EXECUTIVE’S REPORTWelTec has had a successful year in 2009, both financially andeducationally. One theme that comes across strongly from theyear’s performance is collaboration, both with business and withother education providers.At WelTec, a strong focus on industry collaboration is a wayby which we create courses better targeted to the needs ofemployers.Our achievements through a tough year are many, but what weare most proud of is the contribution we have made to business.As we are beginning to see, growth through recession wasreserved for the small percentage of organisations that thought ofinnovative ways to utilise their resources.Chief Executive’sReportA ground-breaking new degree, the Bachelor of EngineeringTechnology, is the product of collaboration between WelTec, theInstitute of Professional Engineers New Zealand and five otherNew Zealand Polytechnics: Wintec, Unitec, Manukau Institute ofTechnology, Christchurch Polytechnic Institute of Technology, andOtago Polytechnic.The structure of the degree plays to the strength of individualinstitutions in the civil, mechanical, and electrical majors andsub majors, rather than every polytechnic replicating every majorwithin their own institution. This new qualification forms the basisfor a career as an Engineering Technologist – an area in demandacross the country and around the world.Industry directed projects numbered 59 in 2009, up from 34 onlya year earlier.WELTEC 2009 AT A GLANCE:Net surplus $3.7m against budget of $1.5mGovernment loan convertedInternational EFTS same as 2008, but a $700K increase in international fee revenueOperating cost/EFTS down $600 on last yearAll key financial ratios for WelTec improved46.5% students enrolled in advanced trade/technical/professional qualifications72% (vs. 71%) now in Levels 4-71216 EFTS were under 25 and enrolled in Level 4 and up (vs. 1003 in 2008)Industry directed projects went from 34 (2008) to 5908WELLINGTON INSTITUTE OF TECHNOLOGY | 2009 ANNUAL REPORT
Page 4 and 5: New Strategic Alliance with Metro G
Page 10 and 11: STUDENT SUCCESSThe Tertiary Educati
Page 13 and 14: Advisory Committees 2009ADVISORY CO
Page 15 and 16: STATEMENT OF OBJECTIVES AND SERVICE
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Page 29 and 30: Impairment of AssetsAt each reporti
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Page 33 and 34: Income StatementFor the year ended
Page 35 and 36: Balance SheetAs at 31 December 2009
Page 37 and 38: Notes to the Financial Statements20
Page 39 and 40: 2009 2009 2008Actual Budget Actual$
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Annual Report 2009 (PDF 2 MB) - Wellington Institute of Technology

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