2011 Annual Report - Wellington Institute of Technology

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Wellington Institute of Technology
2011 annual report
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the needs of industry and

VISION AND MISSION
VISION
Our graduates are global citizens with world-class skills and knowledge.
We also generate value-add through applied knowledge and technology transfer
solutions in partnership with industry, professions and research organisations.
MISSION
Wellington Institute of Technology’s mission is to work in partnership with iwi,
communities, industries, professions and other education organisations to deliver:
1
2
VALUES
ACCOUNTABILITY
AND INTEGRITY
In terms of what we are; what
and how we teach; how we relate
to students, industry and each
other; how we take responsibility
for our actions and our
commitment to critical enquiry
and academic freedom.
Knowledgeable, highly skilled and accountable graduates who:
� Are well informed and able to access, use and adapt knowledge;
� Combine high level technical ability with creative/entrepreneurial thinking
(i.e. “gold collar” workers);
� Are able to learn throughout life; and
� Enhance workplace productivity and community development.
Research and knowledge transfer activities that:
� Address directly the needs of industry and professions (as voiced by
enterprises large and small);
� Support seamless approaches that build critical mass and depth of
expertise regionally, nationally and internationally; and
� Build a community and enterprise culture embodying productivity
and sustainability.
CUSTOMER FOCUS
Being passionate about customers
and students. Looking for improvement
and efficiencies in our service. Being a
place that is inclusive, where diversity is
recognised. Providing a learner-centred
environment marked by relevance, applied
learning and respect.
COMMITMENT TO HIGH
PERFORMANCE AND
PROFESSIONALISM
Each individual, each day, aiming
for excellence.
TEAM WORK
Contributing to an effective and
supportive team environment,
using and fostering creativity
and innovation.
PARTNERSHIP
With business and industry; with
iwi; with students and with fellow
providers.
SUSTAINABILITY
Of the Institution; of ourselves; and
of the environment.

miles Ovia – bachelor of creative
technologies graduate 2011
FiOna Breen – bachelor of hospitality management graduate 2011
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08
10
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16
18
20
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26
28
30
32
34
36
37
38
Overview of 2011
Council Member Profiles
Council Structure
Executive Management Team
Industry Advisory Committee
Chairperson’s Report
Training and qualifications vital to the
Hospitality Industry – RUTH PRETTY
Rebuilding Christchurch
“WelTec – important to the region”
– FRAN WILDE
Chief Executive’s Report
Commitment to industry partnership
– MIKE KERR
Fronde’s vision for graduate possibilities
– IAN CLARKE
Working partnership for youth
– KERRY LEggETT
WelTec Connect Ltd
Technical support for big ideas
– JOSEPH VAN LIEMPT
Our people and Our environment
Showcasing Maori Contemporary Art
– BARRY TE WHATU
Business plan performance
40 Research
42
44
46
48
51
NEC research fellow
– TODD COCHRANE
Creative research
– LORRAINE RASTORFER
Research supports clear and
robust relationship – SUSAN TOWNSHEND
Statement of Objectives and Service
Performance
Financial Statements
76 Responsibilities
77
Independent Auditor’s Report
81 Acronyms

7%
13%
5%
9%
9%
12%
5%
6%
5%
5%
12%
2%
6%
14%
FUNDINg STUDENT STATISTICS
3%
2%
2%
3%
1%
32%
67%
54%
By Source
Student Achievement
Component (SAC) 67%
Industry Training
Organisations (ITO) 13%
International 7%
STAR 6%
Youth guarantee 2%
Full Fee 2%
Trades Academy 2%
Adult and Community
Education (ACE) 1%
By Region
Lower Hutt 32%
Wellington 28%
Central North Island 10%
Upper Hutt 9%
Porirua 5%
Upper North Island 5%
South Island 5%
Kapiti Coast 3%
Wairarapa 3%
By Ethnicity
NZ European/Pakeha 54%
New Zealand Maori 14%
Asian 12%
Pacific Islander 9%
European 5%
Other 6%
560 School of Hospitality
559 School of Engineering
550 School of Automotive Technology
407 School of Health Services
352 School of Information Technology
328 School of Business and Administration
296 STAR
247 School of Social Services and Sector Engagement
238 School of Foundation Studies, Languages and Adult Education
28%
644 School of Construction
225 School of Creative Technologies
184 School of Hair, Beauty and Make-up
Age
Under 21 44%
21 – 24 23%
25 – 35 18%
35+ 15%
Highest Entry Qualification
NCEA Level 2 26%
(6TH FORM CERTIFICATE)
No Record 20%
(NO FORMAL SECONDARY SCHOOL
QUALIFICATION ON RECORD)
NCEA Level 1 17%
(SCHOOL CERTIFICATE)
NCEA Level 3 17%
(BURSARY OR SCHOLARSHIP)
Overseas Qualification 13%
14+ Credits 5%
(14 OR MORE CREDITS AT ANY LEvEL)
Other 2%
gender
Male 64%
Female 36%
77 Trades Academy
EFTs
0 50 100 150 200 250 300 350 400 450 500 550 600 650
15%
18%
13%
36%
17%
5%
2%
44%
64%
26%
17%
23%
20%

2009
8,700
Students
2010
10,600
Students
SATISFACTION RESULTS
90%
Student Satisfaction
ADDINg VALUE
2011
10,385 = 4,669
Students
EFTS
Students aged under 25 studied
96%
Employer Satisfaction
STRONG
FINANCIAL PERFORMANCE
5% Return
The Tertiary Education Commission (TEC) has again awarded
WelTec a low risk rating for its financial performance.
on Total Income
Strong cashflow and
working capital
$1,455,000 Budget $2,765,000 Net Profit
4
CAMPUSES
of total EFTS studied at
Levels 4 – 7
of all the Level 4-7 EFTS
delivered in 2011.
Petone, Wellington,
Christchuch, Auckland
70%
of WelTec graduates
reported they were in
employment or going on
to further study.
(as reported soon after
graduation)
EDUCATIONAL
PERFORMANCE
INDICATORS
76% Course
Completions
Level 1-2 65%
Level 3-4 78%
62%
Level 1-2 60%
Level 3-4 64%
40%
INDUSTRY 65%
16
Industry advisory committees involving
small to large companies across Wellington.
Level 1-2 66%
Level 3-4 58%
Level 5-6 75%
Level 7-8 81%
Qualification
Completions
Level 5-6 72%
Level 7-8 50%
Progression to
Higher Level
Study
Retained in
Study
Level 5-6 64%
Level 7-8 74%

COUNCIL MEMBERS
ROgER SOWRY
ONZM
CHAIRPERSON
Roger Sowry was a Member of
Parliament from 1990 to 2005,
firstly representing the Kapiti
electorate, then as a National
list MP. Roger retired from
Parliament in 2005 moving to
become Chief Executive of
Arthritis New Zealand. He is
a member of the Electricity
Authority.
Roger is also a member of the
Institute of Directors.
06 | WELLINgTON INSTITUTE OF TECHNOLOgY
DR ALAN BARKER
DEPUTY CHAIRPERSON
Dr Alan Barker is a Senior
Consultant with MartinJenkins.
He has extensive international
and domestic experience in
public sector reform, strategic
planning, organisation review
and financial management.
Alan has worked for a number
of education related Institutions
such as the TEC, MOE, NZQA,
and Tairawhiti Polytechnic,
as well as a number of other
public sector entities.
ADvISORY COMMITTEES
(CHAIRS)
Alcohol and Drug – Tim Harding
Automotive Technology – Richard Eyles
Built Environment – Peter Degerholm
Business – Charles gilmore
Community Support Services and
Community vocational Learning Skills
Rosanne Johnston
Counselling and Trauma Studies
David Waters
Creative Technologies – Laurence greig
Engineering – Michael Kerr
Exercise Science – Mike Ryan
Funeral Services
Prof. Mike Markfell-Jones
Hospitality – Ruth Pretty
Information Technology – Peter Ramsey
Pasifika – Linda Sissons
Plumbing – Colleen Upton
Wellington Trades Acdemy – Alan Peck
Youth Development – John Harrington
PETER PRESTON
Peter has an early background
in civil engineering (BE
Degree) followed by
a strong commercial
background including senior
management roles in BP
NZ Ltd and directorships in
related companies. He is a
professional company director
and a Fellow of both the IOD
(Institute of Directors) and
the Institution of Professional
Engineers of New Zealand.
VAUgHAN RENNER
Vaughan has an MBA, and
science and engineering
qualifications. He runs his own
businesses and has strong
commercial, strategic planning
and IT skills. Vaughan has a
background in governance
(currently including; The
Employers Chamber of
Commerce Central, Business
NZ, and Standards New
Zealand). He is a member of
the Institute of Directors.
ACADEMIC BOARD
Alan Cadwallader – Academic Director
Alan Peck – Executive Dean,
Faculty of Trades and Technology
Barbara Kelly – Academic Registrar
Colin Porthouse – Academic Staff
Representative
Diane Langman – Academic Staff
Representative
Hinemoa Priest – Kaiwhakahaere Maori
Julia Hennessy – Executive Dean,
Faculty of Health, Business and Service
Industries
Linda Sissons – Chief Executive
Mick Jays – Academic Staff Representative
Nikita Snedden – Student Association
Representative

DENNIS SHARMAN
Dennis owns and operates
Sharman Consulting Limited
a consultancy company
that delivers comprehensive
technology services to small
and medium sized businesses.
Dennis has just completed
his term as Chair of the board
of New Zealand Institute of
Technologies. Dennis holds
a number of Directorships,
including government
appointments to the Combined
Council of Whitireia and WelTec
and is also a founding member
of the Board of Mana Tiaki.
CHIEF ExECUTIvE’S
REvIEW COMMITTEE
Roger Sowry – Chair
Alan Barker
Peter Preston
SUZANNE SNIVELY
ONZM
Suzanne Snively, formerly a partner at
PricewaterhouseCoopers in Wellington, is the
Managing Director of strategic and economic
advice company, MoreMedia Enterprises.
Suzanne is appointed to the Health Research
Council by the Minister of Health Tony Ryall
and Chairs the Agri-women Development
Trust and Transparency International. She is
Chief Judge of the Electra Business Awards.
Previous directorships included the Reserve
Bank of New Zealand. She is a member of
the Institute of Directors and the New Zealand
Association of Economists. Suzanne was
awarded the Fulbright and Reserve Bank
scholarships and was honoured by the Queen
along with 100 women with a Women’s
Suffrage medal.
RISK AND AUDIT
COMMITTEE
Vaughan Renner – Chair
Dennis Sharman
Peter Steel
PETER STEEL
Peter has an economic and
engineering background
having worked for over 25
years as a Consulting Engineer,
becoming a Principal and
Technical Director for Beca.
He has strong commercial,
governance and management
experience from his work
activities as well as a period
as President of the Wellington
Regional Chamber of
Commerce. He is currently
General Manager - Engineering
& Standards for the
Infrastructure and Engineering
division of KiwiRail.
WELTEC CONNECT
LE CORDON BLEU
NEW zEALAND INSTITUTE
(DIRECTORS)
Linda Sissions
– WelTec Chief Executive
Monsieur Andre Cointreau
– President and CEO
of Le Cordon Bleu International
Paul McElroy
– UCOL Chief Executive
NANCY
MCINTOSH-WARD
Nancy holds an MBA and
is a Chartered Accountant.
She is the Chief Executive
of the Karori Sanctuary Trust
and has extensive financial,
management, commercial,
governance, tertiary education
and marketing experience.
Nancy is a member of the
Institute of Directors.
Peter Steel – Chair
Dennis Sharman
Nancy McIntosh-Ward
Suzanne Snively
2011 ANNUAL REPORT |
07

EXECUTIVE MANAgEMENT TEAM
LINDA SISSONS, CNZM
CHIEF ExECUTIvE
Ph. D. (London)
Diploma in Adult Education
(Edinburgh)
MA (1st class Honours)
Advanced Management
Programme (Harvard)
Linda has been responsible for
the strategic management and
leadership of WelTec since 1999.
Prior to joining WelTec she
held university and Institute of
technology management roles
in New Zealand and the United
Kingdom.
She represents the New
Zealand Government on the
Board of Governors of the
Commonwealth of Learning,
is on the Board of WorldSkills
NZ, and is a Director of ESITO
(Electricity Supply Industry
Training Organisation). She has
been a member of a number
of Government commissions,
including the Tertiary Education
Advisory Commission.
Linda holds a PhD from London
University, is a graduate of
the Harvard Business School
Advanced Management
Programme and is a member of
the Institute of Directors.
08 | WELLINgTON INSTITUTE OF TECHNOLOgY
TIM ALLEN
GENERAL MANAGER,
BUSINESS DEvELOPMENT
BA (Victoria University)
Graduate Diploma in
Marketing (Victoria
University)
Tim leads the development
of new opportunities and
the promotion of WelTec
to meet its objectives. His
areas of responsibility are
marketing, international
and WelTec Connect.
During 2011 he led the
establishment and growth
of WelTec Connect, which
has been highly successful
in its engagement with
industry on R&D and
capability development.
Tim has also led the
further development of
WelTec’s partnerships
with industry for student
work placements notably
cadetships.
Tim has extensive
commercial, marketing and
international experience,
gained through senior
roles in a diverse range
of industries including
education, shipping, sports
and horticulture.
MARK BROADBENT
HUMAN RESOURCES
DIRECTOR
BA (Victoria University)
Diploma of Education
(Guidance)
Diploma (Youth
and Development),
(Commonwealth Youth
Programme, Asia-Pacific)
Centre Ernst & Young
Executive programme
Mark is responsible
for WelTec’s human
resources strategy and
change management as
well as human resources
operations and capability
development.
With more than 25
years’ experience in
human resources, line
management, and
development roles Mark’s
has worked in a wide range
of organisations covering
the not-for-profit sector,
government, state-owned
enterprises, and education.
Mark is a member of the
Human Resources Institute
of New Zealand.
ALAN CADWALLADER
ACADEMIC DIRECTOR
MMgt (Massey University)
MBA (Otago University)
As Academic Director Alan
is responsible for academic
leadership at WelTec.
His role is leading and
managing academic policy
development, including
learning access, student
support services and
resources to ensure highquality
student learning
experience outcomes. His
role also includes leading
the Institute’s research
activities.
Nearly a decade in
the tertiary sector is
complemented by earlier
pursuits in commerce
and business. Alan has
experience as a lecturer in
business studies as well
as head of school. His
background in education
for business management
and his interest in New
Zealand’s small business
sector fit well with WelTec’s
applied research and
technology transfer
contribution to business
and industry.
During 2010 and much of
2011 Alan was a member
of the Artena Society
Board.

JAMES SMITH
CHIEF FINANCIAL
OFFICER
BCA (Victoria University)
CA (New Zealand Institute
of Chartered Accountants)
James became the Chief
Financial Officer in May
2011. In this role he
managed the financial
planning and reporting
systems and services, and
provided quality financial
and strategic advice to
internal and external
stakeholders. During 2011
he was responsible for
the Finance and Facilities
& Procurement business
units.
James has over a decade
of tertiary sector experience
gained both at WelTec and
The Open Polytechnic of
New Zealand.
PETER COWPER
CHIEF OPERATING
OFFICER
In 2011 the COO role
involves managing the
academic records and
administration, information
technology services,
business intelligence and
change management
business areas. As well
as these infrastructure and
capability services, Peter’s
responsibilities also include
business process change
initiatives for core student
management.
Peter brings many years’
experience in leadership,
managing complex
and technical business
operations, third-party
supplier models and
outsourcing, contract
management and leading
change. Peter’s previous
roles include managing
Telecom New Zealand’s
operational and delivery
business areas including
leading large change
projects. He was Head of
Science and Engineering
at BRANZ Ltd, a building
research organisation
and he owns Quorum
Group, a management and
leadership consultancy
practice.
Peter is a Member of the
Maritime New Zealand
Authority, is a founding
trustee of the Porirua Digital
Trust and member of the
New Zealand Institute of
Directors.
MICHAEL HESP
DIRECTOR,
SPECIAL PROjECTS
Master of Applied Finance
(Victoria University)
CA (New Zealand Institute
of Chartered Accountants)
Michael began his new
role, having previously
been WelTec’s General
Manager Corporate and
Finance, in mid-2011.
The role of Director,
Special Projects is to
provide advice on specific
high priority strategy
developments; manage
investment and capital
projects; and develop
WelTec’s long-term campus
plan.
Previous experience for
Michael includes a number
of roles for Fletcher
Construction; being a
member of the team that
privatised Works Property
Services to become Serco
Group NZ, then holding
the roles of Corporate
Services Director and
Finance Director for Serco;
Chief Financial Officer and
Board Secretary for the
New Zealand Wool Board;
a number of consulting
and contracting roles for
organisations including
the Department of Labour,
Healthcare Otago,
Wellington City Council,
and the Correspondence
School.
Michael is a member
New Zealand Institute of
Chartered Accountants.
JULIA HENNESSY
ExECUTIvE DEAN,
FACULTY OF HEALTH,
BUSINESS AND SERvICE
INDUSTRIES
BA (Victoria University)
DipN (Wellington
Polytechnic)
MEd (Victoria University)
MMgt (Massey University)
PG Dip HSM (Massey
University)
Julia has the overall
responsibility for the
management of the Faculty
of Health, Business and
Service Industries, which
includes the schools
of Health and Social
Services; Business and
Administration; Foundation
and Adult Education;
Hair, Beauty and Exercise
Science; Hospitality
and Tourism and the
Childcare Centre. The
Faculty delivers half of the
academic programmes in
WelTec, with delivery from
multiple sites including
Auckland and Christchurch.
Prior to becoming
Executive Dean Julia was
previously Head of Centre
of Health and Wellbeing at
WelTec. She has also been
General Manager, Mental
Health and Addiction
Service for Hutt Valley
DHB and was also a senior
advisor at the Ministry of
Health.
Julia is a Ministerial
appointment on the
Nursing Council of New
Zealand.
ALAN J PECK,
ONZM
ExECUTIvE DEAN,
FACULTY OF TRADES AND
TECHNOLOGY
BA (Auckland)
Diploma in Strategic
Studies (University of
NSW)
Graduate (Royal College of
Defence Studies, London)
Advanced Management
Programme (Harvard)
Alan has been Executive
Dean of the Faculty of
Trades and Technology
since February 2009. He
is responsible for WelTec’s
schools of Information
Technology, Creative
Technology, Construction,
Engineering, and
Automotive Technology.
He is also responsible for
the Trades Academy, which
opened in 2011.
Before joining the tertiary
education sector in 2005,
Alan served 40 years as
an officer in the Royal
New Zealand Navy, with
a variety of appointments
both at sea and ashore;
in New Zealand and
overseas. After leaving
the Navy, Alan worked in
the Ministry of Education,
and the Tertiary Education
Commission before joining
WelTec.
2011 ANNUAL REPORT |
09

INDUSTRY ADVISORY
COMMITTEES 2011
AlcOhOl ANd drug
Tim Harding (Chairperson) – CEO, CareNZ
Anna Nelson – Programme Manager, Matua Raki, National
Addiction Workforce Development
Christine McCarrison – Addictions Professional Leader,
Community Mental Health & Addictions Service, Hutt Valley DHB
Denise Nassenstein – Alcohol and Drug Counsellor Community,
Alcohol and Drug Service (CADS)
Ian MacEwan – Executive Director, DAPAANZ
Jude West – Central Region Practice Leader,
Problem Gambling Foundation of New Zealand
Major Stephen Scott – Director, Wellington Bridge Programme
Mary Anne Cooke – Director,
ABACUS, Counselling, Training & Supervision Ltd
Maynard gilgen – Clinical Director, Ora Toa Mauoriora
Murray Trenberth – CEO, WellTrust
Rhonda Robertson – Consumer Advisor, Matua Raki, National
Addiction Workforce Development
Takurua Tawera – Clinical /Cultural Liaison, Te Hauora Runanga
O Wairarapa Inc.
Trish Chivers – Team Leader, Community Mental Health &
Addictions Service, Hutt Valley DHB
10 | WELLINgTON INSTITUTE OF TECHNOLOgY
AuTOMOTIVE TEchNOlOgY
Richard Eyles (Chairperson) – Workshop Owner,
North City Automotives
Bridie Hewison – Workshop Owner, Lees Auto Bodies (2007) Ltd
Dave Wise – Trade Training Manager,
NZ Army Trade Training School
Dean McMillan – Workshop Owner, D E McMillan Ltd
george Robinson – Sales Representative,
Otbury Refinish Solutions
Hus Kala – Workshop Owner, Hutt City Auto Electrical
Jason Robertson – ITA, NZ MITO
Michael Beattie – Student Representative,
Automotive Technology Year 1 D
Neil Butterfield – Workshop Owner, Porirua Autocrash Repairs
Nick Mcguirr – ITA, NZ MITO
Owen Woodman – Workshop Owner, Woodman Automotive
Ross Wallace – National Training Manager, CablePrice NZ Ltd
Steve Caithness – Workshop Owner, Sovereign Panel & Paint
Steve gaskin – Workshop Owner, Rolrich Panel & Spray 1988 Ltd
Verna Niao – Group Manager - Workforce Development,
NZ MITO
BuIlT ENVIrONMENT
Peter Degerholm (Chairperson) – Director, Calderglen
Dan Mcguinness – Director, McGuinness Building Contractors
John granville – Executive Director, NZIQS
Mike King – Senior Project Manager,
Summerset Management Group
Paul Bunkall – Director, Rawlinsons
Russell Burley – Commercial Manager, Naylor Love
Tony Sutherland – Director, Rider Levett Bucknall

BuSINESS
Charles gilmore (Chairperson) – CEO, IndeServe Ltd
Anne Hare – Financial Sector, NZX
Bill Davies – Business Finance Support Manager,
Central Region and Tyco Fire & Security New Zealand
Brian Cowper – Agent, Hudson Recruitment
Diana garrett – Programmes Manager,
NZIM National Office
Kanwardeep (Kanwar) Bedi – Independent Business Man,
Own Company
Kara Puketapu – Back up Iwi Representative, Te Runanganui o
Taranaki whanui ki Te Upoko o Te Ika a Maui incorporated
Leo Austin – Owner, Austin Associates Limited
Neville Baker – Back up Iwi Representative, Te Runanganui o
Taranaki whanui ki Te Upoko o Te Ika a Maui incorporated
Robyn Horton – Owner, McDonalds Queensgate
Teri Puketapu – Iwi Representative, Te Runanganui o Taranaki
whanui ki Te Upoko o Te Ika a Maui incorporated
cOMMuNITY SuPPOrT SErVIcES
ANd cOMMuNITY VOcATIONAl
lEArNINg SKIllS
Rosanne Johnston (Chairperson) – Operations Manager,
Te Korowai-Whariki/CCDHB
Jo Mason – Service Systems Manager, Community Connections
Linda Fisher – Operations Manager,
Emerge Supported Employment Trust
Mark Pearce – Qualifications Pathway Manager, Careerforce
Maurice Priestley – Programme Coordinator, Inclusion & Disability
Inclusion/Disability Capital Coast Health DHB
Monika Divis – Manager (Learning & Research), Spectrum Care
Rachel Cronin – Community Support/Health Promotion Coordinator
Age Concern / ex student
Vicki Wall – Clinical Manager, Dawn Trust
cOuNSEllINg ANd
TrAuMA STudIES
David Waters (Chairperson) – Chief Executive,
Ambulance New Zealand
Helen Bowbyes – Guidance Counsellor, Naenae College
Jayne O’Neill – Clinical Leader, Relationship Services
Judy McCormack – Counsellor/Supervisor,
The Counselling Group
Linda Karlin – Counselling and Training Manager, Skylight
Luana Murray – Senior Advisor,
Relationship Services Whakawhanaungatanga
Mari Cribb – Guidance Counsellor, Upper Hutt College
crEATIVE TEchNOlOgIES
Laurence greig (Chairperson) – Consultant, Workforce IP
Annette Beattie – Digital Services Manager, Hutt City Libraries
Bill Carden-Horton – Director, Billy Sushi
Christine Doherty-Mcgregor – Assistant Curator,
Expressions Art and Entertainment Centre
Neville Parker – Designer, Designers Institute of NZ
Simon Croft – Technology Teacher, Wainuiomata High School
Steve La Hood – Director, Story Inc.
2011 ANNUAL REPORT |
11

ENgINEErINg
Michael Kerr (Chairperson) – Regional Manager (Wellington),
BECA
Bill Caradus – General Manager, Central Zone & Wellington,
Fulton Hogan Ltd
David Parle – Engineering Manager,
Windsor Engineering Group Ltd
Don Wills – Associate Director,Transmission & Distribution,
AECOM
grant Daniels – Electronics Wing Warrant Officer, NZ Army
John Futter – Support Specialist Nanotechnology,
National Isotope Centre, Institute of Geological and Nuclear
Sciences, Rafter Laboratory
Dr. Peter Davenport – Engineer, Eastern Consulting Ltd
Richard Screech – Engineering Architect – Solutions Group,
Alcatel-Lucent NZ Ltd
Dr. Rod Badcock – Senior Research Engineer,
Industrial Research Limited
Ross Baker – Manager, Horokiwi Quarries
Theo Klok – Locomotive Performance Engineer, Kiwirail
ExErcISE ScIENcE
Mike Ryan (Chairperson) – Regional Development Manager,
Tennis Central
Ben Montague – Club Manager, Lifestyle Gym
David Lomax – Pastoral Care, Te Runanganui o Taranaki whanui
ki Te Upoko o Te Ika a Maui incorporated
Deslea Wrathall – Performance Services Manager,
NZ Academy of Sport North Island
gerry Salmon – Regional General Manager, Les Mills Gym
Jason Hemson – General Manager, Wellington Rugby League
Marcus Sherwood – Leisure Active Manager, Hutt City Council
Mark O’Connor – General Manager Operations, Swim NZ
Tracy Heron – Personal Trainer, Fitness consultant co-ordinator
& Group Exercise instructor, Lifestyle Gym
12 | WELLINgTON INSTITUTE OF TECHNOLOgY
fuNErAl SErVIcES
Prof Mike Marfell-Jones (Chairperson) – Open Polytechnic of NZ
– Representing Education
Anne Mcguire – Self Employed, Gisborne – Representing
Education, Maori
Alistair Ferguson – Marsden House Funeral Directors, Nelson –
Representing New Zealand Embalmers Association Inc.
Danny Langstraat – Harbour City Funeral Home, Lower Hutt –
Representing Funeral Directors Association of New Zealand Inc.
Fiona gillespie – Trust Secretary
John Peryer – Executive Officer, Tong and Peryer Limited,
Havelock North – Independent
John Duncan – Kapiti Coast Funeral Home, Paraparaumu –
Representing Funeral Directors Association of New Zealand Inc.
John Schipper – Vice-Chair, Davis Funeral Home, Auckland
– Representing New Zealand Embalmers Association Inc.
hOSPITAlITY
Ruth Pretty (Chairperson) – Managing Director,
Ruth Pretty Catering
Anthony Dey – General Manager, Brentwood Hotel
Bernd Lippman – Executive Chef,
Museum of New Zealand Te Papa Tongarewa
Eddie Wairau – Manager, Petone Working Men’s Club
Francois Febvré – Proprietor, La Cloche
georgina Noon – H R Manager,
InterContinental Wellington
glen Curphey – Executive Chef, Brentwood Hotel
gregory Keating – General Manager, Duxton Hotel
Joanne Craughwell – Senior H R Manager,
Accor Hospitality
Kaye Paardekooper – Conference Organiser,
Paardekooper and Associates
Mark Angus – Hotel Manager, Bolton Hotel
Mike Egan – Own Manager, Monsoon Poon
Rachel Burt – H R Manager,
City Life Wellington – A Heritage Hotel
Sara Tucker – Regional Manager, Hospitality Association of NZ
Sonia Tiatia – Schools Advisor, Hospitality Standards Institute

INfOrMATION TEchNOlOgY
Peter Ramsey (Chairperson) – Private Contractor
Alisdair McKenzie – Principal Consultant, IS Assurance Services
Brian Rowe – Director, Examine Co. NZ
Dr Donald Koh – BIT Monitor
Dr Elozor Schneider – Information Systems / Technology,
The Open Polytechnic of NZ Limited
Jonathan Fry – Delivery Manager, Fronde Systems Group Ltd
Kevin groves – Student Rep, WelTec
Lester Abbey – Managing Director,
Telemetry & Data Communications – Abbey Systems
Mark Carroll – Ministry of Education
Russell Kean – Engineering Consultancy,
Opus Central Laboratories
Sergius Kramar – Developer / Analyst,
FMG Co. NZ (Advice and Insurance)
PASIfIKA
Linda Sissons (Chairperson) – Chief Executive, WelTec
Aiono Mino Cleverley – Samoan Community
Filipo Lui – Tokelauan Community
Kerese Manueli – Fijian Community
Tupu Araiti – Tongan Community
Vei Lotaki – Tongan Community
PluMBINg
Colleen Upton (Chairperson) – General Manager,
Hutt Gas & Plumbing Systems Ltd
Dave Walker – Project Manager, Aquaheat Industries Ltd
Derek Plimmer – Owner, Plimmer Plumbing Ltd
Fiona gavriel – CEO, Master Plumbers Ltd
Ian Elliott – CEO, Plumbing, Gasfitting, Drainlaying & Roofing ITO
John Leen – Owner / CEO, John Leen Plumbing Ltd
Malcolm Andrew – Manager, Duncan McGregor Ltd
Ross Tait – Plumber & Gasfitter, K J Tait Ltd
Stewart Weddell – Owner, Plumber 1
Tony Wood – Manager, Masterlink Ltd
WEllINgTON TrAdES AcAdEMY
Alan Peck (Chairperson) – Executive Dean, WelTec
Carrie Murdoch – Business NZ
grant Jones – Principal, Newlands College
John Bush – Wairarapa Workforce Development Trust
Kerry Leggett – Vibe Lower Hutt
Martin Isberg – Principal, Wainuiomata High School
Richard Campbell – Principal, Paraparaumu College
Ross Sinclair – Principal, Hutt Valley High School
Sally Haughton – Principal, Wellington East Girls’ College
Sue Roberts – Regional Chair CATE, Aotea College
YOuTh dEVElOPMENT
John Harrington (Chairperson) – National Coordinator,
National Youth Workers Network Aotearoa
Adrienne Bull – Manager Qualifications Development,
Social Services ITO
Andy Pilbrow – National Quality Services Manager,
YMCA NZ National Office
Bill Peace – Social Services Manager, Strive Community Trust
Dawn Badco – AOD Youth Clinician, HVDHB
Elizabeth Kerekere – Rangatahi Maori Consultant,
Tiwhanawhana Trust
Lloyd Martin – Coordinator, Praxis
Maree Tukukino – Consultant, Kapuia Services Ltd
Trish gledhill – Director/Executive Trustee,
Kina Families & Addictions Trust
2011 ANNUAL REPORT |
13

Whakarongo ake au
Ki te tangi a te manu nei
Tuuii, tuuii
Tui, tuia
Tuia I runga
Tuia I raro
Tuia I roto
Tuia I whao
Tihei mauri ora
I listen
To the cry of the bird
The Tui
Bind together, stitch together,
weave together
Those things from above
Those things from below
Those things from within us
Those things from around us
Behold the sacred breath of life
14 | WELLINgTON INSTITUTE OF TECHNOLOgY
CHAIRPERSON’S REPORT
2011: Fulfilling our expectations
Meeting the needs of students is core business for tertiary education
Institutions and is always front-of-mind at WelTec. As a leader in the
tertiary education sector and a key player in industry in the Wellington
region WelTec’s responsibilities also extend broadly into the wider
community.
As I indicated in the last Annual Report, 2011 was a year of building
on the collaborative partnerships we have with other tertiary
providers and business, diversifying our revenue streams and
consolidating our financial position. These things, and more, have
been achieved. The themes this year have been about consolidating
and extending WelTec’s strong links with industry, contributing to
productivity and economic growth in the Wellington region and often
the rest of New Zealand.
Student Body
In 2011 WelTec exceeded its targets for student enrolments. Almost
4,700 EFTS were achieved (Equivalent Full Time Students) equating
to 10,385 students. Two thirds of these students were studying at
level four and above. 77% were part-time. 60% were aged under 25
representing a higher youth cohort studying at WelTec via initiatives
such as WelTec’s Trades Academy, Youth guarantee and Tamaiti
Whangai programmes.
Most students were undertaking some form of work placement or
work experience whilst they studied. 70% of WelTec graduates told
us that they were either in work or undertaking further study soon
after completing their qualification. This tells us, in an economic
sense, that the products WelTec offers are in demand.

Financial performance
Strong financial performance was again achieved in 2011 through
tight fiscal control and new revenue from delivering additional
trades training through the government’s Skills for Canterbury
initiative. WelTec’s Total Return on Income of 5% exceeded
expectations with a Net Profit of $2.765M against a budgeted
figure of $1.455M. As Council Chair I am very proud of this result,
particularly given the current economic environment and I offer my
congratulations to staff for their efforts in this regard.
Views of Stakeholders
WelTec was awarded a “low risk” rating by the Tertiary Education
Commission (TEC) in 2011 based on the prior year’s performance.
Provisional Educational Performance Indicator results, also
assessed by the TEC, showed that WelTec performed well in 2011,
achieving above the ITP sector median for all four indicators. This,
along with NZQA’s External Evaluation and Review grade of “Highly
Confident” awarded to WelTec for its educational performance
indicates that the key funders and policy makers view the Institution
as a high performer.
Progress on the New Zealand Centre for Cuisine
and Hospitality Excellence
In 2010 we announced that WelTec’s award-winning School of
Hospitality would join with the internationally renowned Le Cordon
Bleu New Zealand Institute and UCOL to create a centre for cuisine
and hospitality excellence.
This year construction progressed on the school, which will be
based in the hospitality heart of central Wellington City. This
represents a significant investment in Wellington’s hospitality
industry. The centre will offer world-class training facilities and
attract local and international students to what is, arguably, New
Zealand’s capital of hospitality. The new facilities themselves will
add value and a focus to the area around lower Cuba St and there
will be great benefits to the wider community through the growth in
student numbers and business opportunities.
With a collaborative approach and an international edge, the new
centre will focus on excellence and will deliver WelTec’s unique and
widely-acclaimed programmes including the Bachelor of Hospitality
Management and the graduate Diploma in Event Management.
Training will be offered at all levels of employment across the
hospitality sector.
The new centre will open in September 2012.
Students First
Students First is an innovative collaboration with Whitireia
Community Polytechnic. In 2011 WelTec and Whitireia together
investigated the opportunities to collaborate for the benefit of
students and to improve efficiencies for both Institutes. Four
collaborative options were identified and thoroughly investigated,
including project-based collaboration, shared services, a merger
and a strategic partnership. The strategic partnership model
proved to be the strongest option, one that creates both a strategic
and operational partnership between the two Institutes. It maintains
two separate Institutions, with their own chief executives, but
establishes a single combined council and joint academic board.
When both Institutions took the strategic partnership proposal
to stakeholders for consultation the feedback received was
overwhelmingly one of agreement, giving WelTec and Whitireia the
mandate to proceed.
This approach is a first for the tertiary education sector in New
Zealand. It will draw on the strengths of both Institutes to give
students easier access to a diverse range of programmes; create
distinctive, new centres of excellence that work closely with industry;
provide a single strategic overview of, and stronger voice for,
vocational tertiary education and be a one-stop-shop for industry in
the greater Wellington region.
The new combined council and joint academic board are now in
place and WelTec and Whitireia have begun working together on a
joint strategic plan and a range of initiatives to improve outcomes
for students and industry and achieve efficiencies for both Institutes.
The cultures, identities and practices of both WelTec and Whitireia will
be retained while we work together to share resources, knowledge,
expertise and best practice.
Acknowledgements
WelTec’s relationships with industry and its focus on contributing to
productivity and economic growth remained a key focus for 2011.
This was exemplified through WelTec’s advisory committees who
continued to have a key role across the Institution assisting with the
design of new qualifications and updating existing programmes;
offering work placements and cadetships; and facilitating
employment opportunities for graduates. Advisory Committees had
a major role in the development of Students First and I thank the
members for their time and contribution.
I would like to formally recognise WelTec’s Chief Executive Dr
Linda Sissons. Linda led and maintained the high performing
status of WelTec in a challenging economic environment. In 2011
she set the parameters for the Institution to successfully focus on
student achievement; and to maximise WelTec’s and its graduates’
contribution to the region’s productivity and economic growth. The
Council and WelTec benefitted from Linda’s contribution to tertiary
education at a national and international level through her Deputy
Chairpersonship of the Commonwealth of Learning Board of
governors and her role as Chair of the New Zealand Metro group.
Finally I acknowledge the contribution of fellow Councillors throughout
2011, particularly their involvement in the Students First initiative.
I am pleased to present you with the 2011 Annual Report for the
Wellington Institute of Technology.
Roger Sowry
ONzM
2011 ANNUAL REPORT |
15

16 | WELLINgTON INSTITUTE OF TECHNOLOgY

TRAININg AND
QUALIFICATIONS VITAL
TO THE HOSPITALITY
INDUSTRY
Renowned Wellington caterer, Ruth Pretty is Chair of WelTec’s
Hospitality Advisory Committee and also holds an Honorary
Bachelor in Hospitality Management from WelTec for her significant
contribution to the Wellington region and the wider New Zealand
food and hospitality sectors.
Through her role on the advisory committee Ms Pretty works closely
with WelTec’s hospitality leadership team, providing guidance and
advice from an employer’s perspective. Her vision for the Wellington
hospitality sector is a vibrant and thriving industry that is an
attractive career option for the region’s young people.
“Cherie Freeman (Head of School of Hospitality) and her team are
very open about the challenges and opportunities they face,” says
Ms Pretty.
We talk about the global issues and
trends happening within our industry
which in turn helps Cherie’s team in
ensuring relevant courses that will
deliver graduates our industry needs.
Ms Pretty says the advisory committee was also a good forum
for the industry to receive updates on WelTec’s new School of
Hospitality currently being built in Wellington. The School will also
house WelTec’s joint venture partner, Le Cordon Bleu.
“The new School of Hospitality will build on Wellington’s profile
as the culinary capital of New Zealand and will showcase the
School and all it offers. It will also be hugely beneficial in forging
relationships with employers in our industry and providing the
skilled hospitality staff required.
Ms Pretty says WelTec’s School of Hospitality is a place that actively
engages with industry leaders and works hard to understand and
respond to what industry is looking for from its graduates.
“The School is very open to ideas and the team has fantastic
relationships with their tutors and students. The result is a very high
standard in hospitality training.”
“Training and qualifications are vital to the hospitality industry in
New Zealand and it is great to see WelTec’s hospitality team build
such a strong and vibrant presence within Wellington’s hospitality
community.
2011 ANNUAL REPORT |
17

REBUILDINg
CHRISTCHURCH
Restoring Christchurch will be a massive task, requiring an army
of skilled tradespeople. So WelTec put its hand up to work with
the government and industry to train the people needed to rebuild
Christchurch.
The TEC invited WelTec to expand our trades delivery to help
meet Christchurch’s future building needs. Of the nine Institutions
that shared the extra $7.5M funding, WelTec received by far the
largest allocation – 25 percent of the total amount.
18 | WELLINgTON INSTITUTE OF TECHNOLOgY
WelTec’s Skills for Canterbury initiative now has
100 extra young people learning trades skills and
becoming ‘work ready’. This approach is getting
ahead of the anticipated high demand for skilled
workers from mid-2012, not just for Christchurch
but also to help remedy the country’s leaky homes
situation and the expected demand for new housing.
As well as delivering these trades programmes from
WelTec’s Petone campus, customised carpentry
training facilities were set up in Wairarapa and Kapiti
in conjunction with agencies in those areas. In Kapiti,
we are working with Whitireia on these initiatives.
This year, WelTec’s trades students also built two
houses as part of their learning and these houses
have been donated to Christchurch.

2011 ANNUAL REPORT |
19

20 | WELLINgTON INSTITUTE OF TECHNOLOgY

WELTEC – IMPORTANT
TO THE REgION
SAYS FRAN WILDE
Renowned Wellingtonian, the Hon Fran Wilde was recently awarded
WelTec’s Technology Medal in recognition of her significant
contribution to the region and community. Fran’s vision of
Wellington is shaped by her experience and hands-on involvement
in the wider region.
“It’s always easy to lapse into clichés but the ideas of prosperity
and resilience spring to mind as fundamental. With our urban
agglomeration (from Wellington City through the Hutt Valley and up
through Porirua to Kapiti) we are already a city-region,” says Fran.
Our city centres and garden suburbs,
the coast that rings us and the easily
accessible Wairarapa countryside give
outstanding opportunities for a balanced
quality of life. However, if we are to
continue to be “the coolest little capital”
we need to do some things differently.
That includes creating the economic environment to generate the sort
of jobs that will attract and hold younger people. “We need to deliver
the interventions necessary to ensure our local communities, social
networks and our large regional infrastructure are all future-proofed,
so they are able to withstand whatever nature or the global economy
might throw at us in the next century,” says Fran.
“For me, this means literally getting our act together. There are many
players - business, local communities, education, research and
local government. Current fragmentation is recognised as a barrier
to success and a number of sectors are moving towards a more
strategic arrangement. The old adage “think global - act local” could
well be adapted to “think regional - act local.”
To achieve that vision, Fran recognises that tertiary education will be a
critical lever for creating prosperity and resilience
- for making Wellington the place people choose to live.
“WelTec is right in the middle of the equation, with its focus on
practical and relevant education.
“WelTec bridges the gap between teaching and research, between
academia and vocational training. It provides hundreds of
Wellingtonians with the boost they need to succeed in the workforce.”
In looking ahead at what workforce requirements will be needed Fran
says the key is to have tertiary delivery that is agile and adaptable.
“WelTec sits exactly on that spot and its responsiveness to the needs
of commerce and industry is a characteristic that must be maintained
and supported.”
2011 ANNUAL REPORT |
21

22 | WELLINgTON INSTITUTE OF TECHNOLOgY

CHIEF EXECUTIVE’S REPORT
Ma wai raa, e tau rima
Te Whare Wananga o te
Awakairangi
Ma te tika
Ma te pono
Ma te aroha e
2011 was a big year at WelTec. Many initiatives, in development
for some time, have come to fruition and are performing well.
Our students continued to achieve great outcomes – both in their
courses of study and by gaining recognition further afield. WelTec’s
walls become ever more permeable as we continue to build on our
relationships within industry, the community and the tertiary sector.
WelTec’s longstanding working relationship with Te Runanganui
O Taranaki Whanui Ki Te Upoko O Te Ika A Maui continued to
strengthen in 2011. A number of initiatives were pursued alongside
the flagship Tamaiti Whangai programme (discussed later in this
report). The Runanga has a well-developed strategic vision for
the Hutt Valley, based on Maori values and practices. This vision
involves key partners working together to actively build cohesive,
strong and vibrant communities. The Runanga views WelTec as a
key contributor to this vision and we view the relationship as critical
to achieving successful outcomes for Maori.
We are very pleased to report that WelTec exceeded the
government’s four key education performance indicator targets
this year. We acknowledge that these are important indicators of
a tertiary Institution’s success so we put considerable work and
focus into these areas in 2010. The evidence of this effort is clear in
2011 and our students are the winners.
Educational Performance Indicator 2011 1
YEAR 2010 2011 (provisional)
COURSE COMPLETION
QUALIFICATION COMPLETION
PROGRESSION TO HIGHER
LEvEL
RETENTION
76% / 13TH
MEDIAN 77%
64% / 3RD
MEDIAN 57%
39% / 4TH
MEDIAN 29%
61% / 2ND
MEDIAN 51%
77% / 9TH
MEDIAN 75%
63% / 4TH
MEDIAN 56%
40% / 4TH
MEDIAN 32%
64% / 3RD
MEDIAN 54%
We also over-achieved on our domestic student number targets in
2011. Other goals were harder to achieve, including international
student numbers and revenue, because of the challenging
economic environment. We report against all our Business Plan
goals later in this document.
1. SAC only as reported on TEC website
Who will care for this place of
learning?
This place called Awakairangi
Integrity will
Truth will
And so too will love
In highlighting some of our major achievements for the year I would
like to acknowledge the many people who have contributed to these
successes. It takes individual effort and commitment, with the support
and collaboration of others, to achieve the results we have. Despite
a year of change and challenge, the Executive Management Team
(EMT) and staff have retained their focus on supporting student
outcomes. I thank them for continuing this effort; the results are
remarkable. I know I speak for our Council and my EMT colleagues
in acknowledging the extraordinary support of our wider community
– employers, industry, community leaders and strategic partners – in
helping us fulfill our purpose.
Positive industry relationships
WelTec links with industry and employers in many ways. This year
these links continued to grow and develop at all levels. From
functions and events; to cadetships and scholarships; to advanced
research and development, WelTec and employers work side-by-side
increasing productivity and contributing to economic growth, with
benefits for our students, the community and businesses.
The 2011 Employer Satisfaction survey results showed that
Wellington employers continue to be very positive about the training
and education provided by WelTec. WelTec’s training continues to
be seen as relevant by employers with 96% saying they were very
satisfied or satisfied with the relevance of our qualifications.
The majority of employers surveyed viewed WelTec’s qualifications
as relevant to their needs with graduates considered work ready.
Employers commented that the strength of the relationship
with staff has a major influence over how they view WelTec and
encourages their involvement in WelTec’s programmes. The
continued uncertainty of both the international and national climate
continues to impact on employers influencing decisions to take
on new graduates and apprentices. Countering this is the view
of employers who consistently endorse the value of having work
experience components in programmes. This has a positive impact
on employment opportunities.
2011 ANNUAL REPORT |
23

WelTec’s Advisory Committees
Driven by industry, these committees give us valuable links into
industry and provide us with important insights that guide our
planning. For example, this year the Creative Technology advisory
committee reported growth in the film and television business in
Wellington. Likewise, the Hospitality and Construction advisory
committees anticipate skill shortages. We responded to these needs
with additional programmes and student places.
The Mayors of both Wellington and Hutt cities announced they are
keen to see the area as a hub for innovation and technology and
recognised that WelTec has an important role in attracting and
supporting business here.
The events we host and attend, as well as working relationships,
contribute to the strength, longevity and creativity of our relationships.
We greatly exceeded our target of significant events over the year
with impressive turnouts and great conversations.
Further afield, staff from the School of Creative Technologies,
supported by WelTec Connect, delivered an intensive two-week
course at Hong Kong Cyberport, a creative digital community
that nurtures start-ups. Cyberport is owned by the Hong Kong
government. The trip cemented a relationship with Cyberport
and introduced its young entrepreneurs to WelTec’s practical,
interdisciplinary industry-based approach to working, taking them
through an entire creative process from concept to presentation. The
relationship has the potential to attract students in the future, as well
as a unique teaching and learning experience for WelTec tutors.
Celebrating student success
It was a good year for industry recognition in the form of awards and
recognition. Hospitality students won the prestigious Toque d’Or
competition and the Fonterra Proud to be a Chef competition; earned
a rare international excellence award from City and guilds as well
as a range of other scholarships and prizes. Creative Technologies
students received accolades at their exhibition, COLLIDEOSCOPE,
at the Academy of Fine Arts in Wellington where many works were
sold to collectors and two students received job offers. Bachelor of
Information Technology students won the 2011 National Netriders
Networking competition.
A Diploma of Beauty Therapy student won the best student award
at the New Zealand Beauty Awards. A WelTec bricklaying apprentice
won the silver trowel award as the top year-three apprentice at the
Bricklayer of the Year awards.
Quiet achievers include those students at levels 1-3 who improved
their literacy and numeracy skills. The Tertiary Education Commission
(TEC) recognised the efficacy of the WelTec approach to embedding
literacy and numeracy at this level. WelTec is the only Institute of
technology or polytechnic (ITP) to meet the TEC target for literacy and
numeracy, resulting in WelTec being profiled in the TEC’s assessment
tool video clip as representing best practice in the sector.
24 | WELLINgTON INSTITUTE OF TECHNOLOgY
A supportive learning environment
This year we again combined forces with Te Ati Awa to mentor
young Maori with our Tamaiti Whangai initiative. The focus for Tamaiti
Whangai is supporting Maori students to complete their studies and
get a qualification that leads to employment. This is achieved by
encouraging students to excel at their studies as well as their sport;
promoting culture and wellness and leadership; removing barriers to
learning and feelings of isolation by taking a team approach to study.
Feedback from students participating in Tamaiti Whangai is that the
programme has developed their sense of personal responsibility, their
confidence in themselves and their concern for others. The NZQA, in
its quality assurance review of WelTec, described Tamaiti Whangai as
‘impressive’ and noted that the programme has led to increases in
students’ educational performance and significant gains in their selfconfidence,
attitudes to learning, and work-readiness.
With a Maori roll of 16 percent of the total student population,
initiatives such as Tamaiti Whangai are increasingly important and
we are looking at ways to expand the programme in response to
demand.
To support the Skills for Canterbury initiative and provide opportunities
for young Maori, Te Puni Kokiri provided 40 scholarships for Maori
students to study trades finishing courses in tiling; bricklaying and
blocklaying; pre-trade painting, landscape construction; plumbing
and gasfitting.
Putting students into business
Integrating work experience with tertiary study is a key feature of
WelTec’s programmes and adds value to student learning and
employment outcomes for both student and employer. During the
year WelTec appointed an Industry Partnerships Coordinator to
increase the range of cadetships and work placements available to
WelTec students.
Achievements in 2011 included the creation of new cadetships
with several organisations including NEC and IRL. Longer-term
relationships continue to grow. This year’s Fronde Cadet Scheme
was the largest yet, with eight first-year students enjoying the benefits
of scholarships and work experience.
WelTec also placed students through grow Wellington’s Summer of
Tech programme and created a number of project-based internships.
Feedback from industry clients has been very positive about the value
that WelTec students on work placement bring to their companies.
Wellington Trades Academy
2011 was the first year of operation of the Wellington Trades
Academy, established to deliver vocational trades and technology,
as well as general educational, qualifications in partnership with
secondary schools. Thirty schools are now working with the Academy
and in 2011 we had 78 students simultaneously enrolled at WelTec
and their secondary school. Seven trades strands were offered –
automotive technology; building construction; creative technologies;
hair and beauty; hospitality; mechanical engineering; and recreation
and sport.

At the end of the year 80 percent of these students achieved NCEA
level 2 (compared to a national average of 69 percent) and over
70 percent achieved a Level 2/3 vocational qualification. The high
retention rate, of a potentially at-risk group of students, showed
high levels of student engagement with the programme, as well as
exceptional staff support and commitment.
External Evaluation and Review
We were pleased with the results of NZQA’s External Evaluation
and Review (EER) of WelTec in 2011. As well as providing a public
statement of confidence in our educational performance and
capability in self-assessment, the EER also helps us build our
quality improvement processes.
The NZQA states that it is Highly Confident in WelTec’s educational
performance. It particularly noted that we had worked proactively
to raise completion measures by focussing on improvement
across all programmes and by paying particular attention to the
most poorly performing programmes and closing, restructuring, or
revamping them.
Our vision and initiatives for working with Maori and Pasifika people
to meet their economic and social development aspirations were
noted, as well as the high regard in which employers hold our
graduates. Our developing research culture, literacy and numeracy
initiatives and supportive learning environment contributed to our
high score.
NZQA is also Confident in our capability in self-assessment.
Aligning our existing annual programme reporting arrangements
with NZQA’s self-assessment methodology no doubt helped
us achieve this level of confidence. Our evaluation workshops,
industry advisory committees, willingness to adapt to industry and
student needs were all evidence of our responsiveness and ability
to self-assess and evolve. The report called the Tamaiti Whangai
initiative an impressive example of self-assessment of an academic
programme and the related learning and pastoral support issues.
Academic programme
The annual review of our programme portfolio has seen the
Academic Board approve a number of programme additions,
redevelopments and closures. This critical assessment ensures
relevance and quality.
We launched the new Bachelor of Youth Development, the first
degree specifically preparing workers in this important emerging
profession in New Zealand. The programme has its own advisory
board, which assisted with its development. The Minister of
Education, Anne Tolley, acknowledged the importance of the
new qualification in supporting young people to overcome the
challenges they face in today’s society and become active and
healthy participants in their communities.
Honorary awards
This year, WelTec made honorary awards to two professionals for their
outstanding contributions to their professions and wider communities.
These people share many goals with WelTec and we are pleased
they felt it an honour to receive awards. For his significant creative
contribution to the craft of photojournalism and the wider New
Zealand photographic community, WelTec awarded the Honorary
Bachelor of Creative Technologies to Peter Bush, a living legend in
New Zealand photojournalism. And, for her significant contribution
to the Wellington region and the wider New Zealand Food and
Hospitality community, Ruth Pretty was awarded the Honorary
Bachelor of Hospitality Management.
New values
The Executive Management Team (EMT) did an important piece of
work to define WelTec’s purpose, identity and values so that we are
aligned and ready to meet the opportunities and challenges ahead.
The model we used takes a whole-of-organisation approach to define
aspirational goals and values, while ensuring they are firmly grounded
in the purpose and identity of WelTec.
We aspire to providing the best learning environment.
Our distinguishing characteristic is that we believe
learning happens together.
Our values are empathy, challenge and growth.
We started work with staff on the best way to embed these goals and
values into daily life at WelTec.
Dr. Linda Sissons
CNzM
2011 ANNUAL REPORT |
25

26 | WELLINgTON INSTITUTE OF TECHNOLOgY

COMMITMENT TO
INDUSTRY PARTNERSHIP
While Beca has grown to be one of the larger employee-owned
engineering and related consultancy services companies in the
Asia-Pacific, it retains strong Wellington connections. These
connections include a well-established relationship with WelTec’s
engineering faculty.
“We recruit graduates from WelTec’s National Diploma in
Engineering and we also contribute to WelTec’s industry Advisory
Committee to provide a strong industry perspective,” says Mike
Kerr, Beca’s regional manager, Wellington and Chair of WelTec’s
Engineering Advisory Committee.
“Being on the advisory committee means we have a say on how
WelTec’s courses can meet our needs, now and in the future.
For example we provide suggestions on the effectiveness of their
course material, to their marketing approach to ensure it attracts
high calibre students,” says Mike.
Mike says that WelTec is very proactive in engaging with industry
and as a result its graduates have better connections to the
engineering industry. “WelTec has relationships with a lot of
employers from within the wider Wellington region and these
employers will come and speak to students and share their
knowledge.”
Mr Kerr said that Beca was also impressed with WelTec’s
engagement progress of developing a more standardised offering,
along with its flexibility in how it runs courses for its students.
“WelTec’s key point of difference as an education provider is that
they are more flexible and accommodating in their approach, and
they have a strong regional focus.
“For example we like to employ part-time students as we find
that they can apply what they learn, while still learning, and
WelTec provides flexibility in its course structure and materials to
accommodate their needs,” he says.
Mike says Beca’s strong relationship with WelTec and its
commitment to industry partnership means the company can be
confident that the skills of WelTec graduates match the needs of this
fast-paced, dynamic business.
“My vision for the New Zealand engineering industry is growing our
profile as a deliverer of exemplary quality in the global market.
To succeed as a small player in this world market we need to
continue to focus on niche and very high quality products and
services,” says Mike.
“WelTec plays a crucial role in this by providing a high calibre of
graduates with strong alignment with our industry’s needs.”
2011 ANNUAL REPORT |
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28 | WELLINgTON INSTITUTE OF TECHNOLOgY
FRONDE’S VISION FOR
gRADUATE POSSIBILITIES
Fronde, a Wellington-based IT company has a long history in
solving complex IT issues using a customised development
approach that has worked successfully with its growing domestic
and international customers. For example, Fronde developed the
Ministry of Social Development’s online Student Loans system
in 1999 and still supports this solution today. It has also had a
significant presence in the wholesale electricity market developing
systems that have stood the test of time. For a company that’s
been in business for 20 years it is not sitting on its laurels.
Fronde’s Chief Executive, Ian Clarke says a real growth area is
in cloud computing where it is working with global brands like
Google and Salesforce to implement ‘apps’ that make sharing and
collaborating on documents much easier for their clients. “It’s about
democratising data, making sure data is easily accessible instead of
being locked up,” says Ian.
Ian’s vision for Wellington in the IT area covers two key elements.
“The IT sector has a pivotal role in transforming government so that
is providing more efficient and effective services. Local players like
Fronde are an important part of supporting government and getting
their IT infrastructure right.”
“The second element is being able to take our services and
products to the world and to do that it’s critical that we have a ready
supply of smart, trained people.
“We employ a lot of WelTec graduates who come through our
intern programme and we notice they tend to have a real vocational
interest in IT as opposed to other graduates who may come out of
general study and then decide to work in IT,” says Ian. In Ian’s view
the advantage of the vocational approach is that WelTec graduates
are work ready to the point they can engage directly with clients.
Fronde is one of the local companies represented on WelTec’s
Information Technology Advisory Committee and provides the
committee with advice on changes in the workplace and industry
trends that need to be reflected in its qualifications.
“Industry engagement is critical for Institutions like WelTec and
we’re very pleased to be part of the small employer group that gives
advice and support on IT trends,” says Ian.
“A key to attracting excellent graduates is being able to create and
demonstrate a vision of what they can become, and our partnership
with WelTec means Fronde is in a position to do exactly that and
show what career possibilities are out there,” says Ian.

2011 ANNUAL REPORT |
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The Trades Academy is a good example of a working
partnership between school, community, home and
WelTec where we are all focused on getting good results
for young people, ensuring they get their NCEA credits
while studying towards a trade qualification.
KERRY LEggETT

WORKINg PARTNERSHIP
FOR YOUTH
Vibe is a youth one-stop-shop that provides a range of health
and support services to Hutt Valley young people. Six years ago
Vibe established the Youth Transition Service, which supports
young people aged between 15 -19 years transition into training,
further education and employment. Kerry Leggett is Vibe’s Youth
Development Team Leader and as part of her role in engaging with
the community, stakeholders and young people, she works closely
with the Wellington Trades Academy.
“As a member of the Advisory Committee for the Trades Academy
I am part of a team that includes school principals, representatives
from other community organisations, employers and the Ministry of
Education,” says Kerry.
Kerry says the role of the Committee is to provide a strategic
overview to the Academy from an educational perspective, but
also to offer practical advice and guidance in how it supports its
students.
“The Trades Academy is a good example of a working partnership
between school, community, home and WelTec where we are all
focused on getting good results for young people, ensuring they get
their NCEA credits while studying towards a trade qualification.”
Vibe followed up the destination of 37 Trades Academy students.
Ten out of 37 young people Vibe engaged with this year through the
Trades Academy gained full-time employment, a significant increase
on previous years, while others returned to WelTec for more training.
Additionally, Kerry noticed a positive attitude with young people who
were happy to engage and get involved.
“The clear message young people are getting from the Trades
Academy is that they are employable particularly with an NCEA
Level 2 qualification and a pre-trade qualification,” says Kerry. This
view is reflected in Kerry’s discussions with school principals who
have been positive about the role of the Academy as a practical
training option for some students.
“This is an innovative partnership that ultimately is a win for the
students, employers and schools looking to provide a strong
pathway into a range of industries from mechanical engineering,
construction to hairdressing and hospitality.”
2011 ANNUAL REPORT |
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WELTEC CONNECT LTD
2011 was the first full year of operation for WelTec’s subsidiary, WelTec Connect Ltd
(WCL). As both an investment holding company and a commercial services provider,
WCL gives WelTec the opportunity to diversify its revenue. WCL services are primarily
research and development and business capability development services for local
industry.
WelTec Connect already has 82 companies as clients and contract revenue is
growing. Highlights of the year for WelTec Connect included the establishment
of a technology alliance with the New Zealand arm of the global multinational
NEC Corporation for collaboration on technology research and development and
commercial applications. The relationship with NEC includes funding for an applied
research fellowship and a student cadetship.
WCL is actively involved in developing new technologies such as blended fuels
and ultra-high pressure low-volume water jetting. In 2011 it was the research
and development partner for five successful Ministry of Science and Innovation
technology transfer voucher projects.
As well as helping WelTec build even stronger relationships with industry, other
benefits include student research awards, guest lectures by industry technology
specialists, industry-led student projects and new cadetships.
2011 ANNUAL REPORT |
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TECHNICAL SUPPORT
FOR BIg IDEAS
Inspired by a desire to help address climate change, Joseph van
Liempt is working on a product to reuse energy that is usually
wasted. Joseph has been working on his Heatback system with
WelTec since 2007 and is now at the stage of doing comprehensive
trials to prove that his heat exchange product could save a mediumsized
household up to $800 per year.
Retired but missing work, former Lower Hutt resident Joseph
dusted off the book where he had jotted down product ideas he
has had over many years. “At the time, there was a lot of talk about
climate change and I thought I wanted to do something to help with
that,” says Joseph. “I had the idea for a heat recovery system for
household waste water.”
The Heatback is designed to take the heat from water going
down the drain and return it to the hot water cylinder. Heatback
is designed to be mounted under or near showers, baths and
basins. The innovation is to make it small enough for the single
story domestic environment, provide fast response returns for
short- burst-use and simple enough to use limited resources in its
construction.
Joseph did the extensive, global background research necessary
to prove that his idea is viable and unique. “There are many heat
exchange processes for the industrial environment available but my
hope is that Heatback will resolve practical issues of space and cost
in homes, which are reported to produce 50 percent of greenhouse
gas emissions.
“I worked for 30 years in project management for product
development for the engineering and construction industry. So I
had some idea how to approach things. What I didn’t have was a
3D printer to produce a negative for the moulded parts, or the most
up-to-date knowledge of engineering techniques.”
Joseph describes WelTec Connect as his R&D partner – able to
provide the skills and equipment his project was previously lacking.
“People like me, with ideas, but who run on the smell of an oily rag
can’t invest in some of the tools and expertise to get our ideas off
the ground. To find these resources, and the expertise, so close to
home was exciting.”
Joseph has now moved to Taupo but continues to work with
Andrew Rodger and Roger Dunkley at WelTec Connect.
He describes both as patient, as well as extremely knowledgeable.
“I would take my technical issues to them and they would know how
to solve them. The collaborative approach was great. I know a lot
more now than when I started.”
Once the residential Heatback system is proven and working well,
Joseph has plans to work with WelTec Connect to further develop
the technology so that it can go into other places where energy is
wasted.
“I want my grandchildren to breathe pure air and enjoy our planet.
If I can contribute to that in some small way, it will all be worth it.”
2011 ANNUAL REPORT |
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OUR PEOPLE
A number of new initiatives and progress on existing programmes have again
improved working conditions and opportunities for WelTec staff.
New TEU CEA
A focus of the year for the Human Resources team was the successful
negotiation of the Tertiary Education Union Collective Employment Agreement.
Innovative thinking from both parties led to an agreement that will deliver extra
benefits for both parties.
Extended leadership programme
The leadership programme completed by managers in the previous year
was extended to include senior staff who are not managers. This will
increase WelTec’s leadership capability and succession as well as increase
collaboration across different areas of the Institute. Progress has been made
on several collaborative projects that emerged from the programme.
Promoting opportunities and diversity
WelTec implemented a number of initiatives during the year to attract more
Maori and Pacifika applications for positions. Using local networks was one
of the new ways used to advertise positions. Care with the composition of
recruitment panels, a review of interview questions and new mihi whakatau
and powhiri protocols also helped to make WelTec more welcoming and
inclusive for more of the community.
Employer excellence awards
WelTec gained both the Wellington Regional Defence Employer Award and the
National Award for Employer Excellence in the Public Sector for 2011 from the
Territorial Forces Employers Support Council (TFESC). The awards recognise
WelTec as a supportive employer of staff who are also in the territorial forces.
Innovation and research
During 2011 WelTec funded staff to do research; exhibit work; enter or judge
competitions; and attend national and international conferences. grants
totalled $88,600 in 2011.
OUR ENVIRONMENT
WelTec is continuing its journey of environmental sustainability. The Strategic Framework and
Environmental Policy developed in 2009 was updated in 2011. The Enviro-Mark® NZ Gold audit was
completed in June and WelTec’s Gold status was confirmed. Progress was made on implementing the
Environmental Risk Strategy for the Petone campus with developments in the following areas:
Reducing energy use
The new boiler installed in 2010 resulted in a 60 percent reduction in gas consumption by June 2011.
Transport
WelTec continued to implement its Transport Strategy initiatives, including a bus service between
Porirua and Petone. A secure bike shed and additional bike racks on campus were put in place, as
well as upgraded showers. This encouraged staff and students to cycle, walk or run to campus. Let’s
Carpool, a Greater Wellington Regional Council programme was extensively promoted to staff and
students.
36 | WELLINgTON INSTITUTE OF TECHNOLOgY

SHOWCASINg MAORI CONTEMPORARY ART
WelTec was proud to provide funds from the Innovation and
Research fund to support Creative Technology tutor, Barry Te Whatu,
Taranaki (Tuuturu) and Ngapuhi, to showcase his work at the Maori
Art Market in 2011. Works by nearly 250 artists were on show at
Te Rauparaha Arena and Pataka Museum.
Barry creates intriguing spinning tops and taurapa (waka stern
posts) many of which are tailor-made one-off commissions – often
having something to say. His work reflects issues of the day, and
incorporates facets of who, or what occasion, the work has been
created for.
With a particular passion for carving in stone, Barry
has participated in more than 30 symposiums and
exhibitions in Aotearoa, the United States, Japan and
Austria. Elements of other cultures and the need to
adapt to different tools and working environments in
foreign countries, have also informed his work.
As well as tutoring, Barry is also a mentor with Tamaiti
Whangai, the initiative that gets alongside young Maori
to help them succeed in their study at WelTec.
2011 ANNUAL REPORT |
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BUSINESS PLAN PERFORMANCE
WelTec’s Business Plan for 2011 focused on addressing the
key strategic challenges the Institute faces over the three years
from 2011 to 2013. A range of activities was put in place for each
challenge and success has been measured in terms of:
� Successful course and qualification achievement
� Student retention and progression
� Student/graduate destination (into employment or further
study)
� Entrepreneurship, knowledge production, innovation
and technology transfer
� Revenue earned (particularly directly from industry and
from new sources)
� Industry endorsement/status
It was a challenging year for WelTec. We experienced not only the
ongoing effects of the removal of trades/technical capital support
but also, in our goal to maximise trades/technology EFTS and
occupancy of equipment and facilities, an unexpected requirement
to deliver three percent unfunded EFTS in order to earn extra trades
EFTS for the Skills for Canterbury initiative. Delivery of a 3.5 percent
financial surplus in this environment was pleasing.
Challenge 1: growing commercial and
non-government revenue
A total of $871,000 was raised from commercial and nongovernment
revenue. While this was short of the budgeted $1M, it is
74 percent up on 2010.
Challenge 2: growing international students and
revenue
Budgeted revenue and international student targets were not
achieved, with 305 international student EFTS against a budgeted
340. As well as the challenging economic environment, immigration
issues had an impact on enrolments. An external review of our
international operation and resulting new initiatives indicate potential
improvement in numbers for 2012.
Pleasingly, the academic performance of international students well
exceeded targets. Marketing WelTec’s academic quality will be a
priority in the future.
Challenge 3: Developing Campuses to Support
Future Delivery
We made significant progress on campus development initiatives,
including progress on the Centre for Cuisine and Hospitality
Excellence and new facilities in Otaki and Masterton for the delivery
of carpentry training in support of the Skills for Canterbury initiative.
We started work to develop concepts for more flexible, multi-purpose
technology-integrated spaces, particularly in the trades/technical
area on the Petone campus.
38 | WELLINgTON INSTITUTE OF TECHNOLOgY
Challenge 4: Managing financial assets to ensure
sustainability
The over-budget financial performance for the year reflects our
investment plan EFTS exceeding target by two percent and the TEC
SAC portion at 103.8 percent of our SAC dollar value allocation.
The end of year cash balance was higher than budget because
capital expenditure was under-spent as a result of unavoidable
delays in some major building projects.
Challenge 5: Assisting Maori, Pasifika and young
people to achieve in tertiary education
There was a pleasing increase in participation rates of Maori,
Pasifika and young people. Educational performance for the
under-25s exceeded our target, but was under target for Maori and
Pasifika. Extra resources were added to support learners in these
three categories and there will be ongoing emphasis on improving
outcomes for these groups.
Challenge 6: Raising educational performance
Participation and educational performance were largely on target
for the year, with only a small underachievement in performance at
levels four and above. There is a drive across WelTec to improve
outcomes for students and this will continue.
An improved, more-timely reporting process helped us better
analyse the programme portfolio, which is constantly under scrutiny
with an emphasis on addressing under-performing programmes.
Challenge 7: Maintaining a centre of excellence in
trades and technology and ensuring programme
delivery is sustainable
The emphasis in 2011 was on ensuring that the delivery of trades
programmes was financially and academically sustainable. Trades
training was delivered to a very diverse student population, with
delivery of training at Rimutaka Prison, marae-based training in the
Wairarapa and the introduction of the Trades Academy. The Skills for
Canterbury initiative widened the market along with special initiatives
for Maori and Pasifika students through Te Puni Kokiri, the Ministry of
Pacific Island Affairs and Pacific churches.
Also in 2011 the Faculty of Trades and Technology investigated how
it could update teaching methods, improve teaching and learning
resources, introduce new technology and improve the capability of
teaching staff.

Challenge 8: Developing a unique WelTec
delivery style that incorporates face-to-face
and technology-facilitated learning to assist
achievement
In 2011, work continued on increasing our course delivery flexibility.
We gained access to the Moodle learning management system
as a result of a collaborative arrangement with Whitireia. A student
e-portfolio, Pebblepad, was introduced into the Bachelor of Youth
development to help students manage journals and for work to be
assessed.
In November, WelTec held a Teaching and Learning Forum. Teaching
staff gave presentations to their peers on teaching delivery styles
and the use of new technology to help learners.
Staffing
Our emphasis on quality was supported by our decision to offer
the CPIT Diploma in Adult Teaching as the minimum teaching
qualification requirement for teaching staff.
Over 67 staff attended one or more “getting on with Teaching”
sessions. These workshops bring new staff on board with the WelTec
teaching approach and offer a refresher for existing staff.
STAFFING
2010
2011
Target
2011
Q4
Total FTEs (Full time Staff Equivalents) 396.82 395 402
Academic FTEs 201.82 205 205
Administration FTEs 195 190 197
Academic: Administration FTE 1.04:1 1.1:1 1.04:1
EFTS: Academic FTE 21.5:1 22 23:1
EFTS: Administration FTE 22.3:1 23 24:1
Administration Systems
Progress was made on the implementation of the Information
Systems Strategic Plan. The emphasis this year was on ensuring
IT and IS solutions and capability meet business needs. Feedback
has shown a clear improvement in the engagement, approach and
accessibility of IT staff.
The Data Warehouse project was revised to focus on delivering
high-level information for managers and key staff so they can make
crucial business decisions.
Progress was also made on defining the core processes that make
up the end-to-end ‘student lifecycle’ in order to better understand
and improve them. The results process was the first to be addressed
and will provide a consistent framework for tutors to record and
manage student assessment results.
High-quality research, innovation and technology
transfer activities that inform teaching
There was a significant increase in research activity over the year.
This is referred to in the Statement of Objectives and Service
Performance section of this report.
Maintaining an Institutional profile
greater
Wellington
Region
Unprompted
Prompted
Six regional/
national
significant events
held and profiled
2010 2011 Target 2011 Q4
61.4%
(incl. 76% in 18-
24 age group)
98.8%
(100% in 18-24
age group)
70% 68%
100% 99%
3 6 10
We exceeded the number of significant events targeted for the year,
with events such as the annual business breakfast and the Beehive
launch of the Bachelor of Youth Development attracting positive
attention and accolades for WelTec’s responsiveness to industry and
community needs.
2011 ANNUAL REPORT |
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40 | WELLINgTON INSTITUTE OF TECHNOLOgY

RESEARCH
In 2011 we built on the distinctive characteristics of our applied problembased
research approach. Our focus is on working closely with business
and industry, especially small and medium sized businesses, to develop
and deliver creative, technology and knowledge-based solutions that
meet specific needs. This research makes a direct contribution to
smaller businesses, their productivity and their contribution to economic
development.
WelTec’s unique research culture fosters industry partnerships and
an understanding of business needs. This approach is illustrated in
the three WelTec researchers whose work is showcased here. Their
research work also benefits WelTec students and contributes to our
teaching and learning practice. WelTec’s approach to research delivers
benefits for students, contributes to our industry partners and offers
professional and academic development for staff.
For further information on research undertaken by WelTec please refer to
our 2011 Annual Research Report.
2011 ANNUAL REPORT |
41

TODD COCHRANE,
NEC RESEARCH FELLOW
A nine month secondment as WelTec’s first NEC fellow is providing
Todd Cochrane with a great opportunity to undertake research
with NEC, a leading global manufacturer and service provider of
telecommunication, computer and electronic devices.
“The NEC/WelTec fellowship is new and I’m honoured to be its first
recipient,” says Todd. “NEC New Zealand has about 40 current
research projects and I’m working on an exciting technology project
in the area of pervasive interface development for a personal robot.”
Todd’s been at WelTec since 2001, teaching at the School of
Information Technology where his current role is Programme
Coordinator. He holds a BSc Hons specialising in Computer
Science and is currently studying towards a PhD in Education.
“I think it’s important to keep learning and to maintain professional
memberships including working in partnership with industry, both
at a practical and research level.” Todd cites several examples of
this including his recent work with a Portuguese artist and academic
specialising in dance technology. Todd’s role in this project is as
a discipline expert where his involvement enabled many aspects
in the IT domain, for example the transfer of data into a 3D, virtual
world.
“My research gets incorporated into the courses I run at WelTec, for
example in the Human Computer Interaction course our projects are
focused on developing in the virtual world environment.”
Another example is his work with the Hong Kong government
company Incutrain Cyberport, developing an interactive art
sculpture that will be shown at an upcoming international software
conference International Soft China, in Beijing.
“Staff research and proactive work with industry is hugely beneficial
to our students who work at a national and international level, and in
a way that develops their capacity for creative solutions,” says Todd.
It is this sort of approach which ensures WelTec’s students are wellequipped
to contribute to an expanding and dynamic IT industry.
42 | WELLINgTON INSTITUTE OF TECHNOLOgY

My research gets incorporated into the
courses I run at WelTec, for example in the
Human Computer Interaction course our
projects are focused on developing in the
virtual world environment.
TODD COCHRANE
2011 ANNUAL REPORT |
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CREATIVE RESEARCH
According to Lorraine Rastorfer, Senior Visual Arts Lecturer,
WelTec’s Bachelor of Creative Technology offers students a unique
opportunity to gain an interdisciplinary understanding of the arts
across a wide range of subjects.
“The degree is structured so the ‘core’ courses can be shared
across all creative technology disciplines,” says Lorraine.
“We actively encourage students to learn how to collaborate
across the different disciplines on a range of projects, within the
core ‘collaborative projects’ course. For example that could see
visual arts students working with students specialising in animation,
working alongside students studying cultural and interior design all
acting as a team on a ‘real’ industry project.
Lorraine’s area of expertise is visual arts. She holds a Masters
of Fine Arts (Hons) from Auckland University, and has exhibited
in solo and group shows regularly since 1990. Today her work is
represented in many corporate and private collections in Japan,
Australia, USA, Austria and New Zealand.
Lorraine’s hands-on experience in exhibiting her art is a real
advantage for students interested in following a creative career path.
I teach a paper called exhibition
and I’ve been able to give them real
examples of how they work at all levels,
from developing a theme to holding
contract discussions with gallery owners.
says Lorraine.
She adds that she always makes a point of sharing what she
is working on with her students. For example her last two solo
exhibitions occurred three months apart, the first in Dunedin and the
second in Wellington, at Mark Hutchins Gallery.
“The local exhibition at Mark Hutchins Gallery, in Willis Street meant
I was able to bring students along and talk about the art work
on-site and engage the Gallery director in discussions as well as
demonstrate the practical aspects to staging an exhibition.
Lorraine collates and documents all the information from her
exhibitions, as these are representative of ‘research outputs’ for
her School and WelTec. “Being able to conduct creative research,
through my work in the studio and in the exhibitions that follow has
helped fuel my passion for teaching,” says Lorraine. “It brings a
very real experience and practical advice to the table.”
“I am very fortunate that WelTec supports my creative endeavours
which in turn gives our students a hands-on approach to all aspects
of visual and creative arts and builds strong connections with
creative industries, especially in the wider Wellington region.“
2011 ANNUAL REPORT |
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RESEARCH SUPPORTS
CLEAR AND ROBUST
RELATIONSHIP
WelTec students who have Susan Townshend as a lecturer are in
the fortunate position of benefiting from her dual expertise across
two disciplines; hospitality and finance. Susan is both a qualified
chef, having owned her own catering business for many years, and
more recently completing accounting qualifications and becoming
a financial officer at the Inland Revenue in the United Kingdom.
Her combination of skills is perfect for her role as a senior lecturer
on the Bachelor of Hospitality programme focused on financial
management. It has also seen her take an innovative approach to
how she teaches and connects with her students.
“It’s important to keep communication channels open with students
and I like to use all the tools available to do this,” says Susan.
This includes using online channels such as chat rooms, live
audience rooms and video screen casts, which appeal to students
who are completely familiar with these channels.
Susan’s willingness to go the extra mile with students extends to her
engagement with employers in the hospitality industry.
“Understanding the needs of industry is a critical part of my role
and so I regularly undertake research projects aimed at gauging
industry trends and identifying future skills,” says Susan. “This
was particularly relevant as WelTec developed its new degree
programme in hospitality.”
Susan’s more recent research projects included contacting
employers to identify current and future competency and skills
using a database provided by the Hospitality Standards Institute.
Another research project analysed the effects of the recession on
Wellington’s food and beverage outlets.
“The data gathered from these research projects has been very
helpful in understanding the challenges employers’ face, what
they are looking for from employees, and in helping us shape our
courses to suit any emerging trends.
Susan says the research and regular contact with employers
includes contact with past students who are now working in
the industry. “We are very fortunate to be able to show existing
students where some of our graduates are working. It’s a great way
of showing the diverse range of careers in the industry.
For Susan, one of WelTec’s strengths is its “clear and robust
relationship it has with industry” and she is part of a team committed
to maintaining those relationships by researching and listening
to the key businesses and individuals that make up Wellington’s
hospitality industry.
“The clear message from the hospitality industry is it wants an
“industry-ready student” and we know we can deliver exactly that”.
46 | WELLINgTON INSTITUTE OF TECHNOLOgY

2011 ANNUAL REPORT |
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STATEMENT OF OBJECTIVES
AND SERVICE PERFORMANCE
Investment Plan Performance Commitments
WelTec has agreed to use the following Key performance
Indicators and Targets to measure its performance over the three
years of the 2011 to 2013 Investment Plan.
Measures for SAC 1 funded business
Priority Groups – Participation
NOTE: Weighted qualification completions report qualifications awarded
from 2011 to date. Qualifications will continue to be awarded in coming
months as practicum and other experiential requirements are completed.
The 2010 Actuals reflect 2010 qualifications awarded by the mid Year TEC
EPI reporting dates.
Actual 2010 Target 2011 Actual 2011
Proportion Maori 17% 17% 18%
Levels 1 - 3 6% 5% 8%
Levels 4 and above 11% 12% 11%
Proportion Pasifika 10% 9.4% 10.1%
Levels 1 - 3 3% 2.2% 4.5%
Levels 4 and above 6% 7.2% 5.6%
Proportion aged under 25 60% 61% 63%
Levels 1 - 3 19% 17% 21%
Levels 4 and above 41% 44% 42%
Educational Performance
1
Includes Youth guarantees
2
This figure from TEC reporting does not include Youth guarantee students
Actual 2010 Target 2011 Actual 2011
Weighted course completions 74% 76% 76%
Levels 1 - 3 70% 72% 72%
Levels 4 and above 76% 80% 78%
Weighted qualification completions 64% 65% 62%
Levels 1 - 3 66% 62% 63%
Levels 4 and above 64% 68% 62%
Student retention 61% 53% 65%
Student progression (levels 1 – 4) 39% 39% 40% 2
Priority Groups – Maori Learners 60% 61% 63%
Weighted course completions 65% 70% 68%
Levels 1 - 3 58% 65% 66%
Levels 4 and above 69% 75% 70%
Weighted qualification completions 59% 60% 51%
Levels 1 - 3 57% 58% 57%
Levels 4 and above 61% 62% 48%
Priority Groups – Pasifika learners 60% 61% 63%
Weighted course completions 64% 68% 65%
Levels 1 - 3 65% 68% 64%
Levels 4 and above 64% 68% 66%
48 | WELLINgTON INSTITUTE OF TECHNOLOgY

Educational Performance
Actual 2010 Target 2011 Actual 2011
Weighted qualification completions 47% 56% 42%
Levels 1 - 3 63% 58% 52%
Levels 4 and above 40% 54% 35%
Priority Groups – Learners aged under 25 60% 61% 63%
Weighted course completions 72% 74% 75%
Levels 1 - 3 69% 72% 71%
Levels 4 and above 74% 72% 77%
Weighted qualification completions 56% 65% 56%
Levels 1 - 3 66% 62% 60%
Levels 4 and above 52% 68% 55%
Student indicators
Actual 2010 Target 2011 Actual 2011
Student satisfaction 91% 96% 90%
Maori 94% 98% 95%
Pasifika 95% 92% 95%
Under 25s 91% 92% 91%
International Business
Participation
Actual 2010 Target 2011 Actual 2011
Number EFTS achieved 301 340 305
Proportion Pasifika 10% 9.4% 10.1%
Weighted course completions 84% 82% 84%
Weighted qualification completions 94% 65% 87%
Student satisfaction 93% 98% 84%
Whole of organisation indicators
Relevance
Proportion graduates gaining employment or going on to
further study 3
Actual 2010 Target 2011 Actual 2011
66%
(an additional 31%
were looking for
employment)
85%
70%
(an additional 29%
were work ready)
Relevant qualifications 4 88% 100% 90%
Work readiness of WelTec graduates 5 90% 95% 89%
Programme Portfolio 10% 9.4% 10.1%
The proportion of course EFTS at levels 1 to 3 that have
embedded literacy and numeracy
Proportion of programme portfolio in vocationally-related
education and/or training
Proportion of portfolio endorsed by industry
62% 85% 96%
100% 100% 100%
Industry input is a
component for all
Programmes during the
Approval process
100%
Industry input is a
component for all
Programmes during the
Approval process
Proportion of portfolio in programmes that lead to a
qualification on the national qualifications framework 6 N/A 100% 100%
3 As assessed by annual graduate destination survey
4 As assessed by annual Employer Satisfaction Survey
5 As assessed by annual Employer Satisfaction Survey
6 Based on qualifications registered under new criteria established in 2010
2011 ANNUAL REPORT |
49

Research and technology transfer
Actual 2010 Target 2011 Actual 2011
Number of research outputs – Total 182 200 197
Industry related 35 42 59
Quality assured 46 80 68
Weighted points N/A 360 366
Number of technology transfer activities completed 40 55 54
External revenue gained
(Research contracts and PBRF income) ($,000)
Financial performance
$250 $450 $525
Actual 2010 Target 2011 Actual 2011
Proportion of SAC funding achieved 98.4% 100% 104%
Total EFTS achieved 4,350 4,482 4,669
SAC # 3,001 3,028 3,175
International 301 350 305
ITO 607 590 611
Youth *
366
(81 Youth guarantee
285 STAR)
454
(114 Youth guarantee
100 Trades Academy
250 STAR)
481
(108 Youth guarantee
77 Trades Academy
295 STAR)
Full fees 75 50 97
ACE (Adult and Community Education) 93 48 50
Risk rating against Financial Monitoring Framework Low Low Low
Extent of improvements in Attributes as per CAMS
Improvement Plan
# Includes SAC and ACE but not Youth guarantees
* STAR, Trades Academy, Youth guarantees
50 | WELLINgTON INSTITUTE OF TECHNOLOgY
N/A As agreed with TEC
CAMS technical solution
implements. Description
of assets improvement
plan underway and
asset information
improvement is on track

FINANCIAL STATEMENTS
CONTENTS
Statement of Comprehensive Income
Statement of Changes in Equity
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
2011 ANNUAL REPORT |
51

STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2011
Operating Income
Note
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
government Funding 2 28,988 28,095 30,451 28,642 28,095 30,451
Tuition Funding 3 16,392 17,010 15,161 16,392 17,010 15,161
Other Teaching 4 4,126 3,570 3,705 3,744 3,570 3,705
Other Income 5 3,080 2,189 4,028 2,935 1,189 4,028
Total Operating Income 52,586 50,864 53,345 51,713 49,864 53,345
Cost of Services
Personnel 6 29,882 28,341 28,290 29,441 28,114 28,290
Teaching Delivery 3,477 3,493 3,225 3,399 3,373 3,225
Administration 7 7,040 6,473 7,923 6,617 6,042 7,923
Infrastructure 8 5,109 5,029 4,904 5,063 5,007 4,904
Interest, Depreciation & Amortisation 9 5,248 5,834 5,404 5,248 5,834 5,404
Total Cost of Services 50,756 49,170 49,746 49,768 48,370 49,746
Operating Profit 1,830 1,694 3,599 1,945 1,494 3,599
Non Operating Items income/(expense) 10 1,247 331 (395) 1,247 331 (395)
Share of associates profit/(loss) 13 (312) (570) (138) - - -
Profit 2,765 1,455 3,066 3,192 1,825 3,204
Other Comprehensive Income
gain on property revaluation 1,417 - 1,351 1,417 - 1,351
gain on equipment revaluation - - 26 - - 26
Total comprehensive income 4,182 1,455 4,443 4,609 1,825 4,581
The accompanying notes form part of these financial statements
52 | WELLINgTON INSTITUTE OF TECHNOLOgY
GROUP PARENT

STATEMENT OF CHANgES IN EQUITY
For the year ended 31 December 2011
Note
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Balance at 1 January 68,642 67,086 64,099 68,780 67,224 64,099
Comprehensive income
Profit 2,765 1,455 3,066 3,192 1,825 3,204
Other comprehensive income 1,417 - 1,377 1,417 - 1,377
Total comprehensive income 4,182 1,455 4,443 4,609 1,825 4,581
Non-comprehensive income items
Crown equity injection 22 400 - 100 400 - 100
Total non-comprehensive income items 400 - 100 400 - 100
Balance at 31 December 73,224 68,541 68,642 73,789 69,049 68,780
The accompanying notes form part of these financial statements
GROUP PARENT
2011 ANNUAL REPORT |
53

BALANCE SHEET
As at 31 December 2011
Current assets
Note
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Cash and cash equivalents 16,214 7,465 14,468 16,181 7,465 14,468
Trade and other receivables 11 7,215 6,314 6,981 7,318 6,114 6,981
Inventory 12 306 5 32 306 5 32
Prepayments 12 - 16 12 - 16
Other financial assets 15 - - - 3,150 - -
Total current assets 23,747 13,784 21,497 26,967 13,584 21,497
Non current assets
Investment in associate 13 2,700 2,442 3,012 - - -
Other financial assets 15 - - - - 3,150 3,150
Property, plant and equipment 16 60,139 62,854 58,576 60,139 62,854 58,576
Intangible assets 17 1,117 851 1,205 1,106 851 1,205
Total non current assets 63,956 66,147 62,793 61,245 66,855 62,931
Total assets 87,703 79,931 84,290 88,212 80,439 84,428
Current liabilities
Trade and other payables 18 5,314 3,922 5,410 5,284 3,922 5,410
Employee Benefits 20 2,842 2,219 2,767 2,816 2,219 2,767
Income in Advance 19 6,083 5,061 6,298 6,083 5,061 6,298
Total current liabilities 14,239 11,202 14,475 14,183 11,202 14,475
Non current liabilities
Provisions 21 236 184 1,169 236 184 1,169
Other 4 4 4 4 4 4
Total non current liabilities 240 188 1,173 240 188 1,173
Total liabilities 14,479 11,390 15,648 14,423 11,390 15,648
Net assets 73,224 68,541 68,642 73,789 69,049 68,780
Equity
Crown equity 22 39,332 38,932 38,932 39,332 38,932 38,932
Retained earnings 23 9,647 8,158 6,882 10,212 8,666 7,020
Reserves 24 24,245 21,451 22,828 24,245 21,451 22,828
Total equity 73,224 68,541 68,642 73,789 69,049 68,780
The accompanying notes form part of these financial statements
54 | WELLINgTON INSTITUTE OF TECHNOLOgY
GROUP PARENT

CASH FLOW STATEMENT
For the year ended 31 December 2011
Cash flows from operating activities
Note
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Receipts from customers 50,875 49,418 52,066 50,177 49,418 52,066
Interest received 700 373 593 845 373 593
Payments to suppliers and employees (45,390) (43,423) (43,546) (44,888) (43,423) (43,546)
gST (net) (328) (68) 388 (321) (68) 388
Net cash provided by/(used in)
operating activities
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment
Payment for property, plant and
equipment
25 5,857 6,300 9,501 5,813 6,300 9,501
- - 321 - - 321
(4,052) (11,167) (3,314) (4,052) (11,167) (3,314)
Payment for intangible assets (459) (290) (982) (448) (290) (982)
Payment of loan to subsidiary - - (3,150) - - (3,150)
Net cash provided by/(used in)
investing activities
Cash flows from financing activities
(4,511) (11,457) (7,125) (4,500) (11,457) (7,125)
Proceeds from equity injection 400 - 100 400 - 100
Net cash provided by financing
activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents at the
beginning of the financial year
Cash and cash equivalents at the
end of the financial year
Represented by:
400 - 100 400 - 100
1,746 (5,157) 2,476 1,713 (5,157) 2,476
14,468 12,622 11,992 14,468 12,622 11,992
25 16,214 7,465 14,468 16,181 7,465 14,468
Cash at bank and in hand 1,714 465 468 1,681 465 468
Term deposits - ASB Bank 14,500 7,000 11,500 14,500 7,000 11,500
Term deposits - BNZ - - 2,500 - - 2,500
16,214 7,465 14,468 16,181 7,465 14,468
The gST (net) component of operating activities reflects the net gST paid to and received from Inland Revenue. The gST (net) component has been
presented on a net basis as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the
presentation basis of the other primary financial statements.
The accompanying notes form part of these financial statements
GROUP PARENT
2011 ANNUAL REPORT |
55

NOTES TO THE FINANCIAL STATEMENTS
1 STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR
ENDED 31 DECEMBER 2011
Reporting Entity
Wellington Institute of Technology (WelTec) is a Crown Entity
governed by the Crown Entities Act 2004 and the Education Act
1989. It provides full-time and part-time tertiary education in New
Zealand. WelTec and group consists of Wellington Institute of
Technology and its subsidiary WelTec Connect Limited (100%
owned). WelTec Connect Limited has a 43.15% interest in Le
Cordon Bleu New Zealand Institute Limited Partnership which is
equity accounted. WelTec also has a 50% interest in Cybus an
unincorporated joint venture which is equity accounted into the
group financial statements. The financial statements of Wellington
Institute of Technology (WelTec) and group for the year ended 31
December 2011 were authorised for issue in accordance with a
resolution of the Council on 24 April 2012.
Statement of Compliance
The financial statements comply with New Zealand generally
Accepted Accounting Practice (NZ gAAP), which includes New
Zealand equivalents to International Financial Reporting Standards
(‘NZ IFRS’) and other applicable financial reporting standards as
appropriate for public benefit entities.
Basis of Preparation
The financial statements have been prepared in accordance with
NZ gAAP in New Zealand, and the requirements of the Crown
Entities Act 2004 and the Education Act 1989. Wellington Institute of
Technology and group is a public benefit entity for the purpose of
complying with NZ gAAP in New Zealand. The financial statements
have been prepared on a historical cost basis, except for land,
buildings and equipment, which have been measured at fair value.
The financial statements are presented in New Zealand dollars
and all values are rounded to the nearest thousand dollars ($’000),
except where indicated. Nil values are reflected as a ‘-‘ within these
financial statements.
Significant Accounting Policies
Basis of consolidation
The group financial statements are prepared by adding together
the 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.
Subsidiaries
WelTec 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. Investments in subsidiaries are carried at cost
in the WelTec parent entity financial statements.
56 | WELLINgTON INSTITUTE OF TECHNOLOgY
Associate
WelTec associate investment is accounted for in the group financial
statements using the equity method. An associate is an entity
over which WelTec has significant influence and that is neither a
subsidiary nor an interest in a joint venture. The investment in an
associate is initially recognised at cost and the carrying amount is
increased or decreased to recognise the group’s share of the profit
or loss of the associate after the date of acquisition. The group’s
share of the profit or loss is recognised in the group profit or loss.
Distributions received from an associate reduce the carrying amount
of the investment in the group financial statements.
If the share of losses of an associate equals or exceeds an interest in
the associate, the group discontinues recognising its share of further
losses. After the group’s interest is reduced to zero, additional
losses are proved 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 profits, the group will resume recognising its share of those
profits only after its share of the profits equals the share of losses not
recognised.
Where the group transacts with an associate, profit or losses
are eliminated to the extent of the group’s interest in the relevant
associate. Investments in associates are carried at cost in the WelTec
parent entity financial statements.
Joint Venture
WelTec’s jointly controlled entity interest is accounted for using the
equity method. Investments in jointly controlled entities are carried at
cost in the WelTec parent entity financial statements.
Budget Figures
The budget figures are those approved by the Council at the
beginning of the financial year. The budget figures have been
prepared in accordance with NZ gAAP and are consistent with the
accounting policies adopted by the Council for the preparation of the
financial statements.
Cost of Services
WelTec and group has presented an analysis of its cost of services
on the face of the Statement of Comprehensive Income and within
the notes to the accounts utilising a classification based on the
underlying nature of the expenses.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, cash in
banks and investments in money market instruments, net of any
outstanding bank overdrafts.
Comparative Figures
When the presentation or classification of items in the financial
statements has been amended, comparative amounts have been
reclassified.
Employee Benefits
Employee benefits that are due to be settled within 12 months
after the end of the period in which the employee renders the
related service are measured at nominal values based on accrued
entitlements at current rates of pay. These include salaries and

wages accrued up to balance date, annual leave earned but not yet
taken at balance date and sick leave.
A liability for sick leave is recognised to the extent that 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 historical average amount of additional days used by
staff to cover those future absences.
A liability and an expense is recognised for bonuses, where there is a
contractual obligation.
Goods and Services Tax
All items in the financial statements are stated exclusive of goods
and services tax (gST), except for trade and other receivables
and trade and other payables, which are presented on a gSTinclusive
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 Inland
Revenue is included as part of receivables or payables in the
Balance Sheet.
Long term employee entitlements
The net gST paid to, or received from Inland Revenue, including the
Employee benefits that are due to be settled beyond 12 months
after the end of the period in which the employee renders the related
gST relating to investing and financing activities, is classified as a
net operating cash flow in the statement of cash flows.
service, such as long service leave and retirement leave have been
Commitments and contingencies are disclosed exclusive of gST.
calculated on an actuarial basis. The calculations are based on:
Impairment of Assets
� 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 entitlement
information; and
At each reporting date, WelTec and group reviews the carrying
amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment
loss.
� The present value of the estimated future cash flows.
Loans and receivables
Expected future payments are discounted using the official cash
rate. The inflation factor is based on the expected long-term increase
in remuneration for employees.
Impairment of a loan or a receivable is established when there is
objective evidence that WelTec and group will not be able to collect
amounts due. Significant financial difficulties of the debtor, probability
Presentation of employee entitlements
that the debtor will enter into liquidation or default on payments are
Sick leave, annual leave, long service leave and retirement leave
considered indicators that the asset is impaired.
expected to be settled within 12 months of balance date are
For debtors and other receivables the carrying amount of the asset is
classified as a current liability. All other employee entitlements are
reduced through the use of an allowance account, and the amount
classified as a non-current liability.
of the loss is recognised in the profit or loss. When the receivable is
Equity
uncollectable, it is written off against the allowance account. Overdue
receivables that have been renegotiated are reclassified as current
Equity, being the difference between total assets and total liabilities
(that is, not past due).
reflects the Crown’s interest in WelTec and group. This public equity
is disaggregated and classified into a number of reserves to enable
Other Financial Assets, Property, Plant and Equipment
clearer identification of the specific uses/sources of accumulated
If any indication of impairment exists, the recoverable amount of the
funds. The components of equity are:
asset is estimated in order to determine the extent of the impairment
� Notional equity
� Retained earnings
� Reserves
loss (if any). Where the asset does not generate cash flows that are
independent from other assets, the recoverable amount from the
cash-generating unit to which the asset belongs is estimated.
Financial Instruments
Recoverable amount is the higher of fair value less costs to sell and
value in use. In assessing value in use, the estimated future cash
Financial instruments arise as a result of the daily operation of
flows are discounted to their present value, using a discount rate that
WelTec and group and include: cash and cash equivalents,
reflects current market assessments of the time value of money.
receivables, payables, investments and non-current liabilities, all
recognised in the Balance Sheet using the concepts of accrual
accounting. Revenues and expenses in relation to all financial
instruments are recognised in the Statement of Comprehensive
Income.
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. For revalued assets the impairment loss
is recognised in other comprehensive income to the extent the
impairment loss does not exceed the amount in the appropriate
Foreign Currency Translation
revaluation reserve. Where that results in a debit balance in the
Both the functional and presentational currency of WelTec and group
revaluation reserve, the balance is recognised in the profit or loss.
is in New Zealand dollars ($).
For assets not carried at a revalued amount, the total impairment
All foreign exchange currency transactions during the financial year
are brought to account using the exchange rate in effect at the day
of the transaction. Exchange rate differences are recognised in the
Statement of Comprehensive Income in the period in which they
loss is recognised in the profit or loss.
arise.
2011 ANNUAL REPORT |
57

The reversal of an impairment loss on a revalued asset is credited
to other comprehensive income and increases the applicable
revaluation reserve, unless an impairment loss was previously
recognised in the profit or loss, in which case the reversal of the
impairment loss is also recognised in the profit or loss.
For assets not carried at revalued amount the reversal of an
impairment loss is recognised in the profit or loss.
Intangible Assets
Intellectual property costs
Development costs for new intellectual property internally developed
or acquired which have a benefit of more than 1 year have been
capitalised. Such costs are expected to be recovered, and are
amortised on a straight-line basis over the period of their expected
useful lives, being 3 years.
Software
All software purchased or created by WelTec and group which have
a benefit of more than 1 year have been capitalised. Such costs are
expected to be recovered, and are amortised on a straight-line basis
over the period of their expected useful lives, being 3 years.
Assets under construction
Course development and software assets under construction are
treated as an intangible asset until completion. Upon completion of a
project, the total cost is transferred to the appropriate asset class, at
which point amortisation begins.
Inventories
Inventories available for resale are valued at the lower of cost and net
realisable value. Consumables are recorded at cost.
Investments
Investments are initially recognised at cost, being the fair value of
the consideration given. After the initial recognition, investments
which are classified as available-for-sale are measured at fair
value. Investments that are intended to be held-to-maturity are
subsequently measured at amortised cost using the effective interest
method. Amortised cost is calculated by taking into account any
discount or premium on acquisition, over the period to maturity.
Any changes in fair value through out the term of the investment are
recognised within the Statement of Comprehensive Income.
Leased Assets
Operating lease payments, where the lessor effectively retains
substantially all the risks and rewards of ownership of the leased
items, are recognised as an expense on a straight-line basis over the
lease term.
Payables
Trade payables and other accounts payable are recognised when
WelTec and group becomes obliged to make future payments
resulting from the purchase of goods and services.
Other Financial Assets
Financial assets are initially recognised at historical cost. Financial
assets are derecognised when the rights to receive cash flows
from the financial assets have expired or have been transferred and
WelTec and the group has transferred substantially all the risks and
rewards of ownership.
58 | WELLINgTON INSTITUTE OF TECHNOLOgY
Financial assets are classified into the following categories for the
purposes of measurement:
� Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. Related party receivables that are repayable on demand
are classified as a non-current asset because repayment of the
receivable is not expected within 12 months of balance date.
Property, Plant and Equipment
Land and buildings
Land and buildings are measured at fair value. Fair value is
determined on the basis of an annual independent valuation
prepared by registered valuers. Land values are based on
discounted cash flows or capitalisation of net income (as
appropriate). Buildings are valued based on depreciated
replacement cost. This methodology is an acceptable estimate of
fair value due to the lack of market-based evidence for education
delivery purposes.
Any revaluation increase arising on the revaluation of land and
buildings is credited to the appropriate revaluation reserve, except
to the extent that it reverses a revaluation decrease for the same
asset previously recorded as an expense in the Statement of
Comprehensive Income, in which case the increase is credited to the
Statement of Comprehensive Income to the extent of the decrease
previously charged. A decrease in carrying amount arising on the
revaluation of land and buildings is charged as an expense in the
Statement of Comprehensive Income to the extent that it exceeds the
balance, if any, held in the asset revaluation reserve.
Equipment
Equipment is measured at fair value. Fair value is determined on the
basis of a 3 yearly independent valuation prepared by registered
valuers based on discounted cash flows every three years.
Any revaluation increase arising on the revaluation of equipment is
credited to the appropriate revaluation reserve, except to the extent
that it reverses a revaluation decrease for the same asset previously
recorded as an expense in the Statement of Comprehensive
Income, in which case the increase is credited to the Statement of
Comprehensive Income to the extent of the decrease previously
charged. A decrease in carrying amount arising on the revaluation
of equipment is charged as an expense in the Statement of
Comprehensive Income to the extent that it exceeds the balance, if
any, held in the asset revaluation reserve.
Other property, plant and equipment
All other 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 WelTec and group and
the cost of the item can be measured reliably.
An item of property, plant and equipment is stated at cost less
accumulated depreciation and impairment. Cost includes
expenditure that is directly attributable to the acquisition of the
item. In the event that settlement of all or part of the purchase
consideration is deferred, cost is determined by discounting the
amounts payable in the future to their present value as at the date of
the acquisition.

Assets under construction
Assets under construction are disclosed separately. Upon
completion, the asset’s total cost is transferred to the appropriate
asset class, at which point depreciation begins. Disposals gains
and losses on disposals are determined by comparing the disposal
proceeds with the carrying amount of the asset. gains and losses on
disposals are reported net in the profit or loss. When revalued assets
are sold, the amounts included in revaluation reserves in respect of
those assets are transferred to general funds.
Depreciation
Depreciation has been provided on all property, plant and
equipment, excluding land. Depreciation is calculated on a straightline
basis, at rates that expense the assets’ cost (or valuation) to their
estimated residual values over their useful life.
The useful life of each class of asset is as follows:
Buildings
– Shell 10 - 50 years
– Services 10 - 25 years
– Fit-out 10 - 15 years
Leasehold improvements 2 - 15 years,
based on lease renewal dates
Equipment 3 - 30 years
Motor vehicles 5 years
Furniture and fittings 5 years
Library collection 5 years
Hardware 3 years
Provisions
Provisions are recognised when: a present obligation (legal or
constructive) arises as a result of a past event; it is probable that an
outflow of resources embodying economic benefits will be required
to settle the obligation; and a reliable estimate can be made of the
amount of the obligation.
If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money and, where appropriate, the risks specific to the
liability.
Provisions are reviewed at each balance date, and adjusted to reflect
the current best estimate. When it is no longer probable that an
outflow of resources embodying economic benefits will be required
to settle the obligation, the provision shall be reversed.
Where discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Receivables
Trade receivables, student receivables and other receivables are
recorded at cost less provision made for uncollectible balances.
Reserves
WelTec and group has an asset revaluation reserve which has been
generated by the revaluation of equipment, land and buildings, as
outlined in Property, Plant and Equipment above.
Revenue
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to WelTec and group and the revenue
can be reliably measured. The following specific criteria must also be
met before revenue is recognised:
Government grants
government grants are recognised when eligibility to receive the
grant has been established. For Student Component Funding,
entitlement is established upon the withdrawal period for an
individual’s course of study having passed. For project-based
grants, entitlement is established upon the completion of agreed
milestones. Where funds have been received but not earned at
balance date, an Income in Advance liability is recognised.
Student tuition fees
Revenue from student tuition fees is recognised in the Statement of
Comprehensive Income on entitlement.
Rendering of services
Revenue from a contract to provide services is recognised by
reference to the stage of completion of the contract at the Balance
Sheet date.
Interest revenue
Interest revenue is recognised on a time-proportionate basis that
takes into account the effective yield on the financial asset.
Taxation
Tertiary institutions are exempt from payment of income tax, as
they are treated by the Inland Revenue Department as charitable
organisations. Accordingly, no income tax is provided for.
Critical accounting estimates and assumptions
In preparing these financial statements, WelTec and group 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:
Land and buildings valuation
Note 16 provides information about the estimates and assumptions
exercised in the measurement of revalued land, buildings and
equipment.
Retirement leave
Note 20 provides information about the estimates and assumptions
exercised in the measurement of retirement leave.
2011 ANNUAL REPORT |
59

Critical judgements in applying accounting
policies
Management has exercised the following critical judgements in
applying accounting policies for the year ended 31 December 2011:
Crown-owned land and buildings
Crown-owned land and buildings are included as part of WelTec
and group’s property, plant and equipment. Although legal title has
not been transferred, the Crown has vested all the normal risks and
rewards of ownership to WelTec and group. Restrictions on disposal
of these Crown owned land and buildings are in place, as per
section 192 of the Education Act 1989.
Distinction between revenue and capital contributions
Most Crown funding received is operational in nature and is provided
by the Crown under the authority of an expense appropriation and is
recognised as revenue. Where funding is received from the Crown
under the authority of a capital appropriation, WelTec and group
accounts for the funding as an equity injection directly in equity.
Information about equity injections recognised in equity is disclosed
in note 22.
Changes in Accounting Policies
There have been no changes in accounting policies from the prior
financial year.
Adoption of the revised NZ IAS 24 Related Party Disclosures
The revised NZ IAS 24 Related Party Disclosures (revised 2009) has
been adopted for the year ended 31 December 2011. The effect of
adopting the revised NZ IAS 24 is:
� More information is required to be disclosed about
transactions between the Institute and government-related
entities; and
� Commitments with related parties now require disclosure.
Standards, amendments and interpretations issued that are
not yet effective and have not been early adopted
� NZ IFRS 9 Financial Instruments will eventually replace NZ IAS
39 Financial Instruments: Recognition and Measurement.
NZ IAS 39 is being replaced in three phases:
1. Classification and Measurement
2. Impairment Methodology
3. Hedge Accounting
Phase 1 has been completed and has been published in the
new financial standard NZ IFRS 9. NZ IFRS 9 uses a single
approach to determine whether a financial asset is measured
at amortised cost or fair value, replacing the many different
rules in NZ IAS 39. The new approach is based on how
an entity manages its financial assets and the contractual
cash flow characteristics of the financial asset. The financial
liability requirements are the same as those in NZ IAS 39,
except for when an entity elects to designate a financial liability
at fair value through the profit or loss. The new Standard is
required to be adopted for the year ended 30 June 2014.
WelTec has not yet assessed the effect of the new standard
and expects it will not be adopted early.
60 | WELLINgTON INSTITUTE OF TECHNOLOgY
� FRS-44 New Zealand Additional Disclosures and Amendments
to NZ IFRS to harmonise with IFRS and Australian Accounting
Standards (Harmonisation Amendments) – These were issued
in May 2011 with the purpose of harmonising Australia and
New Zealand’s accounting standards with source IFRS
and to eliminate many of the differences between the
accounting standards in each jurisdiction. The amendments
must first be adopted for the year ended 31 December
2012. WelTec has yet to assess the effects of FRS-44 and
the Harmonisation Amendments.
As the External Reporting Board is consulting on a new accounting
standards framework for public benefit entities, it is expected that all
new NZ IFRS and amendments to existing NZ IFRS with a mandatory
effective date for annual reporting periods commencing on or after
1 January 2012 will not be applicable to public benefit entities. This
means that the financial reporting requirements for public benefit
entities are expected to be effectively frozen in the short term.
Accordingly, no disclosure has been made about new or amended
NZ IFRS that exclude public benefits entities from their scope.

NOTES TO THE FINANCIAL STATEMENTS
2 GOvERNMENT GRANTS
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Student Achievement Component 26,306 25,486 19,077 26,306 25,486 19,077
Adult & Community Education 222 222 412 222 222 412
Youth guarantee 1,017 893 544 1,017 893 544
Trades Academy 789 1,000 - 789 1,000 -
Equity funding 141 141 218 141 141 218
Other funding 513 353 10,200 167 353 10,200
3 TERTIARY FEES
28,988 28,095 30,451 28,642 28,095 30,451
Domestic students 10,704 10,946 9,491 10,704 10,946 9,491
International students 3,775 4,430 3,963 3,775 4,430 3,963
Other fees 1,913 1,634 1,707 1,913 1,634 1,707
4 OTHER TEACHING
16,392 17,010 15,161 16,392 17,010 15,161
Contract students 3,290 2,900 3,131 3,290 2,900 3,131
Contract income 836 670 574 454 670 574
5 OTHER INCOME
4,126 3,570 3,705 3,744 3,570 3,705
Trading income 974 1,736 1,454 999 736 1,454
Other income 1,261 23 1,681 1,091 23 1,681
Profit on disposal of assets - - 155 - - 155
Finance income 845 430 738 845 430 738
6 PERSONNEL
3,080 2,189 4,028 2,935 1,189 4,028
Key Management Compensation:
Short term employee benefits 1,529 1,374 1,372 1,483 1,374 1,372
Council fees
Staff Compensation:
141 121 113 141 121 113
Short term employee benefits 27,243 26,108 25,996 26,850 25,882 25,996
Defined contribution plan employer contributions 281 - 224 281 - 224
Associated Personnel Expenses 688 738 585 686 737 585
7 ADMINISTRATION
GROUP PARENT
29,882 28,341 28,290 29,441 28,114 28,290
Administrative expenditure 6,327 6,177 7,675 5,904 5,746 7,675
Non personnel research expense 74 106 43 74 106 43
Bad debts expense 98 100 72 98 100 72
Doubtful debts expense 454 - 52 454 - 52
Remuneration of external auditors 87 90 81 87 90 81
7,040 6,473 7,923 6,617 6,042 7,923
2011 ANNUAL REPORT |
61

NOTES TO THE FINANCIAL STATEMENTS
8 INFRASTRUCTURE
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Information & computer technology 971 912 998 955 912 998
Insurance 334 338 312 334 336 312
Loss on disposal of assets 1 - - 1 - -
Operating leases 1,616 1,606 1,602 1,605 1,586 1,602
Occupancy 2,187 2,173 1,992 2,168 2,173 1,992
5,109 5,029 4,904 5,063 5,007 4,904
9 INTEREST, DEPRECIATION
& AMORTISATION
Interest - - - - - -
Depreciation 4,741 5,527 4,954 4,741 5,527 4,954
Amortisation 507 307 450 507 307 450
10 NON OPERATING ITEMS
5,248 5,834 5,404 5,248 5,834 5,404
Restructuring - (150) (581) - (150) (581)
gain on revaluation 262 - 186 262 - 186
Lease fitout reinstatement write back 985 985 - 985 985 -
Campus development - (504) - - (504) -
1,247 331 (395) 1,247 331 (395)
11 TRADE AND OTHER RECEIvABLES
Trade receivables 2,132 410 1,082 1,741 410 1,082
Student receivables 5,744 5,649 5,913 5,744 5,649 5,913
Related party receivables (note 33)
Provision for doubtful debt:
8 470 201 502 270 201
Opening balance (215) (215) (163) (215) (215) (163)
Bad debts written off against provision during
the year
- - - - - -
Additional provision made during the year (454) - (52) (454) - (52)
Closing balance (669) (215) (215) (669) (215) (215)
7,215 6,314 6,981 7,318 6,114 6,981
Student fees are due before a course commences or upon enrolment if the course has already begun. Student fee receivables are non-interest bearing
and are generally paid in full by course commencement date. Therefore, their carrying value approximates their fair value.
Other receivables are non-interest bearing and are generally settled on 30-day terms. Therefore the carrying value of other receivables approximates
their fair value.
The ageing profile of student receivables
Not past due 4,827 5,495 4,827 5,495
Past due 1 – 30 days 6 4 6 4
Past due 31 – 60 days 302 199 302 199
Past due 61 – 90 days 30 6 30 6
Past due over 90 days 579 209 579 209
62 | WELLINgTON INSTITUTE OF TECHNOLOgY
GROUP PARENT
5,744 5,913 5,744 5,913

NOTES TO THE FINANCIAL STATEMENTS
All receivables greater than 30 days in age are considered to be past due.
A provision has been made for estimated irrecoverable amounts based on the status of individual receivable balances as at 31 December 2011.
Bad debts are written off when identified.
GROUP PARENT
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
12 INvENTORY
Work in progress - at cost 290 0 0 290 0 0
Finished goods - at cost 16 5 32 16 5 32
306 5 32 306 5 32
13 INvESTMENT IN ASSOCIATE
MotorTrain Limited - - - - - -
Le Cordon Bleu New Zealand Institute Limited
Partnership
2,700 2,442 3,012 - - -
Movements in the carrying amount of investments in associates
2,700 2,442 3,012 - - -
Balance at 1 January 3,012 3,012 - - - -
New investments during the year - - 3,150 - - -
Share of total comprehensive income (312) (570) (138) - - -
Balance at 31 December 2,700 2,442 3,012 - - -
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Summarised financial information of WelTec Connect Limited presented on a net basis
Assets 3,047 2,917 3,242
Liabilities (347) (388) (230)
Revenues 120 89 62
Profit/(Loss) (312) (570) (138)
WelTec’s interest 43.15% 43.15% 43.15%
Share of associates contingent
liabilities
Share of associates
commitments
14 INvESTMENT IN jOINTLY CONTROLLED ENTITY
WelTec and Universal College of Learning (UCOL) have a
50% interest in a joint venture, Cybus, which undertakes
academic and support services on contract to the
Le Cordon Bleu New Zealand Institue Limited Partnership.
The following amounts represent the group’s share of the
assets, liabilities, income and expenses of the joint venture:
GROUP
- - -
1,921 1,895 2,589
MotorTrain Limited is a shell company in which WelTec
holds a 25% interest. No transactions were incurred
during the year.
WelTec Connect Limited holds the group’s investment in
Le Cordon Bleu New Zealand Institute (LCBNZI), being a
43.15% investment in the Le Cordon Bleu New Zealand
Institute Limited Partnership and a 33.3% shareholding in
LCB Management NZ Limited, the general Partner of the
Limited Partnership.
WelTec and LCBNZI are jointly developing premises in
the Regent Centre, lower Cuba Street in Wellington City.
WelTec’s School of Hospitality and the LCBNZI Cuisine
School will co-locate in this facility. Academic delivery will
commence in 2012.
GROUP
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Assets 100 16 -
Liabilities (100) (18) -
Income 363 513 -
Expenses (363) (515) -
Profit/(Loss) - (2) -
Share of joint venture’s
contingent liabilities
Share of joint venture’s
commitments
- - -
- - -
2011 ANNUAL REPORT |
63

NOTES TO THE FINANCIAL STATEMENTS
15 OTHER FINANCIAL ASSETS
WelTec Connect Limited is 100% owned by WelTec
and provides research and development services,
consultancy, contract research and workplace
learning delivery.
Loans to related parties are unsecured, non-interest
bearing, and are repayable on demand. On 24 April
2012 the Council agreed to convert the $3.15m loan
to WelTec Connect Limited to capital.
As a consequence the loan has been re-classified as
a current asset for these accounts.
Current
Loans to subsidiary
- WelTec Connect Limited
(refer note 33)
Non current
Investment in subsidiary
- WelTec Connect Limited
Loans to subsidiary
- WelTec Connect Limited
16 PROPERTY, PLANT AND EQUIPMENT FOR THE GROUP AND PARENT
2011 Actual $000
Gross Carrying Amount
Land &
Buildings
Leasehold
Improvement
Equipment Hardware
Furniture
& Fittings
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
3,150 - -
- - -
- 3,150 3,150
3,150 3,150 3,150
Library
Collection
Assets under
Construction
Balance as at 1 January 49,894 3,282 5,073 7,426 2,012 1,526 482 69,695
Additions 369 4 425 1,503 105 198 1,982 4,586
Disposals - - (1) (23) - - - (24)
Reclassifications - - 87 437 - - (482) 42
Net revaluation increments/
decrements
254 - - - - - - 254
Balance as at 31 December 50,517 3,286 5,584 9,343 2,117 1,724 1,982 74,553
Accumulated Depreciation
Balance as at 1 January - 2,735 1,173 4,722 1,511 978 - 11,119
Depreciation Expense 1,424 539 787 1,581 199 211 - 4,741
Disposals - - - (22) - - - (22)
Reclassifications - - - - - - - -
Net revaluation increments/
decrements
(1,424) - - - - - - (1,424)
Balance as at 31 December - 3,274 1,960 6,281 1,710 1,189 - 14,414
Net Book value 50,517 12 3,624 3,062 407 535 1,982 60,139
64 | WELLINgTON INSTITUTE OF TECHNOLOgY
PARENT
Total

NOTES TO THE FINANCIAL STATEMENTS
2010 Actual $000
Gross Carrying Amount
Land &
Buildings
Leasehold
Improvement
Equipment Hardware
Furniture
& Fittings
Library
Collection
Assets under
Construction
Balance as at 1 January 49,696 3,251 7,224 5,731 1,957 1,334 256 69,449
Additions 74 31 249 2,230 55 192 482 3,313
Disposals - - (8) (784) - - - (792)
Reclassifications - - 7 249 - - (256) -
Net revaluation increments/
decrements
124 - (2,399) - - - - (2,275)
Balance as at 31 December 49,894 3,282 5,073 7,426 2,012 1,526 482 69,695
Accumulated Depreciation
Balance as at 1 January - 2,058 2,622 3,857 1,326 767 - 10,629
Depreciation Expense 1,414 677 982 1,485 185 211 - 4,954
Disposals - - (6) (620) - - - (626)
Reclassifications - - - - - - - -
Net revaluation increments/
decrements
(1,414) - (2,425) - - - - (3,839)
Balance as at 31 December - 2,735 1,173 4,722 1,511 978 - 11,119
Net Book value 49,894 547 3,900 2,705 500 548 482 58,576
Land and buildings carried at fair value
An independent valuation of the land and buildings was performed by Darroch Limited, registered independent valuers as at 31 December 2011. Land
fair value is determined by reference to an open market basis, being the amount for which the assets could be exchanged between a knowledgeable
willing buyer and seller in an arm’s length transaction.
Specialist buildings are valued at fair value using depreciation replacement cost methodology. This methodology is an acceptable estimate of fair value
due to the lack of market-based evidence for education delivery purposes.
Restrictions on title
Under the Education Act 1989, WelTec and group is required to obtain the consent from the Ministry of Education to dispose or sell of property where the
value of the property exceeds an amount determined by the Minister. There are also various restrictions in the form of historic designations, reserve, and
endowment encumbrances attached to the land. WelTec and group does not consider it practical to disclose in detail the value of land subject to these
restrictions.
Total
2011 ANNUAL REPORT |
65

NOTES TO THE FINANCIAL STATEMENTS
17 INTANGIBLE ASSETS
GROUP $000 Software
Intellectual
Property
2011 2010
Assets under
construction
Total Software
Intellectual
Property
Assets under
Construction
Gross Carrying Amount
Balance as at 1 January 1,580 1,100 982 3,662 1,580 973 127 2,680
Additions 14 301 146 461 - - 982 982
Disposals - - - - - - - -
Reclassifications 514 426 (982) (42) - 127 (127) -
Net revaluation increments/ - - - - - - - -
decrements - - - - - - - -
Balance as at 31 December 2,108 1,827 146 4,081 1,580 1,100 982 3,662
Accumulated Depreciation
Balance as at 1 January 1,523 934 - 2,457 1,430 577 - 2,007
Amortisation Expense 230 277 - 507 93 357 - 450
Disposals - - - - - - - -
Reclassifications - - - - - - - -
Net revaluation increments/ - - - - - - - -
decrements - - - - - - - -
Balance as at 31 December 1,753 1,211 - 2,964 1,523 934 - 2,457
Net Book value 355 616 146 1,117 57 166 982 1,205
PARENT $000 Software
Intellectual
Property
2011 2010
Assets under
construction
Total Software
Intellectual
Property
Assets under
Construction
Gross Carrying Amount
Balance as at 1 January 1,580 1,100 982 3,662 1,580 973 127 2,680
Additions 14 301 135 450 - - 982 982
Disposals - - - - - - - -
Reclassifications 514 426 (982) (42) - 127 (127) -
Net revaluation increments/ - - - - - - - -
decrements - - - - - - - -
Balance as at 31 December 2,108 1,827 135 4,070 1,580 1,100 982 3,662
Accumulated Depreciation
Balance as at 1 January 1,523 934 - 2,457 1,430 577 - 2,007
Amortisation Expense 230 277 - 507 93 357 - 450
Disposals - - - - - - - -
Reclassifications - - - - - - - -
Net revaluation increments/ - - - - - - - -
decrements - - - - - - - -
Balance as at 31 December 1,753 1,211 - 2,964 1,523 934 - 2,457
Net Book value 355 616 135 1,106 57 166 982 1,205
There are no restrictions over the title of WelTec or group’s intangible assets, nor are any intangible assets pledged as security for liabilities.
66 | WELLINgTON INSTITUTE OF TECHNOLOgY
Total
Total

NOTES TO THE FINANCIAL STATEMENTS
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
18 TRADE AND OTHER PAYABLES
Trade payables 4,242 2,536 4,024 4,229 2,536 4,024
goods and services tax (gST) payable 1,072 1,386 1,386 1,055 1,386 1,386
5,314 3,922 5,410 5,284 3,922 5,410
Trade payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of payables approximates their fair
value.
19 INCOME IN ADvANCE
Student income in advance 5,565 4,962 6,179 5,565 4,962 6,179
Other income in advance 518 99 119 518 99 119
6,083 5,061 6,298 6,083 5,061 6,298
20 EMPLOYEE BENEFITS
Accrued employee payments 512 177 725 508 177 725
Annual and discretionary leave 2,101 1,840 1,840 2,079 1,840 1,840
Sick leave 229 202 202 229 202 202
2,842 2,219 2,767 2,816 2,219 2,767
A provision is recognised for post employment benefits payable to employees. Employees are entitled to annual leave pay, long service leave and
retirement leave pay. Annual leave and sick leave entitlements expected to be settled within 12 months of the balance date are measured at the
current rates of pay and classified as current liabilities.
Entitlements related to long service leave and retirement leave have been calculated at the present value of future cash flows determined on an
actuarial basis and classified as non-current liabilities.
21 NON CURRENT PROvISION
Employee benefits
Long Service leave 129 97 97 129 97 97
Retirement leave 107 87 87 107 87 87
236 184 184 236 184 184
Leased premises fitout reinstatement:
Opening balance 985 985 985 985 985 985
Expensed during the period (985) (985) - (985) (985) -
Leased premises fitout reinstatement
closing balance
Lease make-good provision
GROUP PARENT
- - 985 - - 985
236 184 1,169 236 184 1,169
During 2011 WelTec renewed a lease which previously had a make-good clause within it (which required any damage caused to the premises to
be remedied and for WelTec to return the premises to their original configuration). During negotiations the landlord agreed to remove the makegood
clause from the new lease agreement, thereby removing the need to maintain this provision. Information about WelTec and group leasing
arrangements are disclosed in note 29.
2011 ANNUAL REPORT |
67

NOTES TO THE FINANCIAL STATEMENTS
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
22 CROWN EQUITY
Opening balance 38,932 38,932 38,832 38,932 38,932 38,832
Equity Injection 400 - 100 400 - 100
Closing balance 39,332 38,932 38,932 39,332 38,932 38,932
Crown Equity represents the total investment the Crown has in WelTec. It is comprised of two components, Notional Equity - the carrying value of Crownowned
land and buildings at the date the Crown vested all the normal risks and rewards of ownership to WelTec, and Received Equity - actual cash
payments received.
In 2011 WelTec received an equity injection of $400,000 as a contribution from the Crown for the establishment of our Trades Academy. In 2010 WelTec
received $100,000 in recognition of the investment that had been made in our document management solution and video conference capabilities.
Capital Management
GROUP PARENT
WelTec and group’s capital is its equity, which comprises its Crown equity noted above, Retained Earnings (note 23) and Reserves (note 24). Equity is
represented by net assets.
WelTec is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to:
disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or
parts of buildings, and borrowing.
WelTec manages its revenues, expenses, assets, liabilities and general financial dealings prudently and in a manner that promotes the current and future
interests of the community. WelTec’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial
dealings.
The objective of managing WelTec’s equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been
established, while remaining a going concern.
23 RETAINED EARNINGS
Opening balance 6,882 6,703 3,816 7,020 6,841 3,816
Profit 2,765 1,455 3,066 3,192 1,825 3,204
Balance at end of financial year 9,647 8,158 6,882 10,212 8,666 7,020
24 RESERvES
Opening balance 22,828 21,451 21,451 22,828 21,451 21,451
Revaluation increase 1,417 - 1,377 1,417 - 1,377
Balance at end of financial year 24,245 21,451 22,828 24,245 21,451 22,828
These reserves have been generated by the revaluation of land and buildings undertaken by Darroch Limited on an annual basis, and the revaluation of
equipment on a 3 yearly basis undertaken by Ewan Forbes, registered Plant and Machinery Valuer (see note 16).
68 | WELLINgTON INSTITUTE OF TECHNOLOgY

NOTES TO THE FINANCIAL STATEMENTS
25 NOTES TO THE CASH FLOW STATEMENT
(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and term investments in money market
instruments, net of outstanding bank overdrafts. The carrying value of cash at bank, call deposits and term deposits approximates their fair value.
Cash and cash equivalents at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the Balance Sheet as
follows:
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
Cash and cash equivalents:
Operating Funds
Designated Funds:
722 1,165 754 689 1,165 3,343
Campus Development 15,492 6,300 12,589 15,492 6,300 10,000
Fit-out Reinstatement - - 1,125 - - 1,125
(b) Reconciliation of profit for the period to net cash flows from operating activities
16,214 7,465 14,468 16,181 7,465 14,468
Profit for the period 2,765 1,455 3,066 3,192 1,825 3,204
Add/(less) non-cash items:
Depreciation and amortisation of non current
assets
5,249 5,835 5,404 5,249 5,835 5,404
Doubtful debts expense 454 - 52 454 - 52
gain on sale or disposal of non current assets 1 1,075 (155) 1 1,075 (155)
gain on revaluation of non current assets (262) - (186) (262) - (186)
gain on provision write-back (985) - - (985) - -
Share of associate loss 312 570 138 - - -
Add/(less) movements in working capital items:
(Increase)/decrease in receivables (662) (538) (2,270) (792) (538) (2,270)
(Increase)/decrease in inventories (274) 26 146 (274) 26 146
(Increase)/decrease in prepayments 4 16 (5) 4 16 (5)
Increase/(decrease) in payables (711) (1,020) 1,630 (660) (1,020) 1,630
Increase/(decrease) in provisions 158 (548) 721 101 (548) 721
Increase/(decrease) in other current liabilities (192) (571) 960 (215) (371) 960
Net cash from operating activities 5,857 6,300 9,501 5,813 6,300 9,501
26 ExPLANATION OF MAjOR vARIANCES AGAINST BUDGET
Explanations for major variances against the Council approved budget are as follows:
Income statement
GROUP PARENT
WelTec has delivered an Operating Profit return on Operating Income of 3.5% in 2011 which is in line with the budgeted 3.3%. This was a commendable
effort given the extra-ordinary financial pressures we were asked to operate under during the year. WelTec answered the government’s call to provide
additional trades training during 2011 which resulted in additional government grants funding being received. However to earn this income WelTec was
required by the Tertiary Education Commission to deliver over 103% of Investment Plan funding. WelTec achieved this through delivering a higher number
of Trimester 2 and 3 programmes, which in turn required additional staff and resources to be incurred - the net effect of which had a negative impact on
the final result.
2011 ANNUAL REPORT |
69

NOTES TO THE FINANCIAL STATEMENTS
Tuition Funding income received during 2011 was $0.6m unfavourable to budget. This reflected lower international student numbers being achieved for
the year than budgeted, with the final EFTS number similar to that achieved in 2010. WelTec undertook an external review of its international operation
and has implemented a number of recommendations to improve our ability to grow this revenue stream in future years.
Other Teaching Income finished 2011 with a favourable variance to budget of $0.2m (parent) and $0.6m (group). The parent result reflects higher than
budgeted activity with ITOs, with a significant amount of unplanned delivery occurring within plumbing and hospitality programme disciplines.
The group result reflects the nature of services provided by WelTec Connect, with more contract based delivery as opposed to simple trading sales
activity.
Other Income generated a favourable variance of $1.7m (parent) and $0.8m (group) to budget. Interest income contributed $0.4m of this favourable
variance, with higher cash holdings being maintained throughout the year due to campus development activities not progressing as planned. The
remainder of the variance was achieved across a number of business units and in the main reflected one-off business activity.
Cost of Services at $50.8m for the group was an unfavourable variance to budget of $1.6m. The key expense category that generated this variance
was Personnel, with a higher number of academic staffing required to meet Trimester 2 and 3 programme delivery demand, as noted above.
Non Operating Items in 2011 reflects non cash revenue generated through the write-back of a lease re-instatement provision and the reversal of $262k
of a previously expensed revaluation loss associated with our Cuba Street, Petone premise. The 2011 budget provided for the write-off of prefabricated
buildings and specialist fitout and services located at Petone on the basis that new premises at Petone and Wellington would be completed within the
calendar year. Unfortunately the timing of these developments tracked behind original expectations, with this expenditure now likely to be recognised in
2012.
Balance Sheet
WelTec group’s Current Assets have finished 2011 $10m higher than budget. This is principally due to higher cash holdings ($8.7m). Trade and other
receivables has finished the year $0.9m ahead of budget. This reflects a change in debt profile within our student debt with student loans becoming
harder to obtain. It also reflects a change in our contract terms with two key customers which has inflated the Trade Receivables balance at year end.
Inventory in 2011 reflects the development of 6 relocatable houses within Work in Progress. The actual number of houses being constructed in 2011
was substantially higher than budget, which had assumed 4 houses would be completed and sold within the year.
Current liabilities have finished 2011 below 2010 actual levels, but up compared to budget. This reflects the timing of capital expenditure, with large
development costs still being incurred when the budget had assumed these would be completed by December. Employee benefits are higher than
budget principally due to the higher staff costs that have been utilised in 2011 to deliver the higher domestic EFTS numbers.
Statement of cash flows
Cash holdings in 2011 remained higher than budget throughout the year, which meant WelTec was able to generate a favourable interest income
variance for the year. The key reason for this was the timing of campus development, with the Hospitality School development in Cuba Street,
Wellington progressing behind the original timeline, and no progress having been made on Petone development due to appeals being made against
the Resource Consent for a new building next to N Block in Cuba Street, Petone.
27 TE WHARE AKO FINANCIAL SUMMARY
Te Whare Ako is a Business Unit within WelTec
providing early childhood education services.
WelTec holds a separate license from the Ministry
of Education for the provision of these services.
The accounts presented opposite do not reflect
occupancy costs or depreciation on buildings and
equipment used by the unit.
70 | WELLINgTON INSTITUTE OF TECHNOLOgY
Income
2011 Actual
$000
2011 Budget
$000
2010 Actual
$000
government grants 455 355 464
ISS subsidy 93 77 82
Childcare fees 93 83 78
Other fees 1 3
Expenses
GROUP AND PARENT
642 515 627
Employee benefits 503 452 469
Other direct costs 22 33 22
525 485 491
Trading contribution 117 30 136

NOTES TO THE FINANCIAL STATEMENTS
28 COMMITMENTS
2011 Actual
$000
GROUP AND PARENT
2011 Budget
$000
2010 Actual
$000
(a) Capital expenditure commitments (b) Lease commitments
Buildings 5,804 32
Non cancellable operating lease commitments are
Equipment 85 16
disclosed in note 29 to the financial statements.
Hardware 35 188
Furniture & fittings 64 58
29 LEASES
(a) Leasing arrangements
WelTec enters into operating leases for buildings and
vehicles:
5,988 294
- Building premises are leased for our satellite delivery
offices in Auckland and Christchurch, and for our Wellington
Campus at Church Street. A number of premises are also
leased around the central Petone campus. The length of
terms of these leases vary from under 12 months, to 5
years, with rights to renewal on a number of contracts.
- Vehicles are also leased over 3 - 5 year terms depending
on the type of vehicle concerned.
30 CONTINGENT LIABILITIES
2011 Actual
$000
(b) Non-cancellable operating lease payments
GROUP AND PARENT
2011 Budget
$000
2010 Actual
$000
Not longer than 1 year 1,640 1,476
Between 1 and 5 years 3,412 3,530
Longer than 5 years 2,043 2,976
7,095 7,982
As disclosed in Note 13 WelTec is a partner in the Le Cordon Bleu New Zealand New Zealand Institute Limited Partnership. The Partnership has
negotiated a $3m loan facility with the Bank of New Zealand. The purpose of the loan is to complete the fit-out of the facility and provide working
capital. The Council has resolved to jointly and severally guarantee the loan with the other New Zealand based partner, Universal College of Learning.
Accordingly, WelTec has a contingent liability of $3m at balance date. (2010, $0).
31 CONTINGENT ASSETS
WelTec has a contingent asset of $378,000 at balance date (2010, $0). This asset relates to on-going negotiations with the Tertiary Education
Commission (TEC) in relation to Embedded Literacy and Numeracy delivery that was completed in 2011. WelTec has utilised information contained
within the January SDR and the advised funding rate of $785 per student to calculate this figure.
32 FINANCIAL INSTRUMENTS
32A Financial instrument categories
Accounting policies for financial instruments
have been applied to each class of financial
asset and financial liability outlined below.
The book value of each equals their fair value:
GROUP
2011 Actual
$000
GROUP
2010 Actual
$000
PARENT
2011 Actual
$000
PARENT
2010 Actual
$000
Financial Assets
Cash and cash equivalents 16,214 14,468 16,181 14,468
Trade and other receivables 7,215 6,981 7,318 7,888
Loans to related parties - - 3,150 3,150
Total financial assets 23,429 21,449 26,649 25,506
Financial liabilities
Trade & other payables 4,243 4,024 4,230 4,024
Total financial assets 4,243 4,024 4,230 4,024
2011 ANNUAL REPORT |
71

NOTES TO THE FINANCIAL STATEMENTS
32B Financial instrument risks
Risk management
Strategic risk management is undertaken by Council through the monitoring of regular risk reports provided by management. These reports highlight
potential areas of risk, and the steps that are being following to ensure the risks are appropriately managed.
The Finance department provides treasury management services for WelTec, co-ordinating the access to domestic and international financial markets and
management of the financial risks relating to the operations of the business.
WelTec does not enter into, or trade financial instruments for speculative purposes.
Details of significant accounting policies and methods adopted, including the criteria for recognition, and the basis of measurement applied in respect of
each class of financial asset, financial liability and equity instrument are disclosed in the Significant Accounting Policies section (refer to note 1) of these
financial statements.
Currency risk
WelTec has no material exposure to movements in foreign exchange rates. Income sourced from overseas is received in New Zealand dollar equivalents,
while trading supplies sourced from international providers are not a material portion of WelTec’s annual expenditure. Council Policy on foreign exchange
states that should an international purchase of $20,000 or more be required, investigation is made into forward cover. At balance date no forward
contracts or any other form of hedging exist.
Credit risk
Credit risk exposure for WelTec exists principally within cash and cash equivalents, and trade and other receivables balances.
Credit risk in respect of cash holdings is managed by spreading short term investment deposits with the major trading banks within New Zealand, while
ensuring WelTec receives the best return on the funds invested, as specified by Council Policy. Receivable balances are unsecured. They are stated at
their estimated realisable value after providing for amounts not considered recoverable.
The maximum credit exposure for each class of financial instrument is as follows:
GROUP 2011 Actual
$000
GROUP 2010 Actual
$000
PARENT 2011 Actual
$000
PARENT 2010 Actual
$000
Cash and cash equivalents 16,214 14,468 16,181 14,468
Trade and other receivables 7,215 6,981 7,318 7,888
Loans to related parties - - 3,150 3,150
Total credit risk 23,429 21,449 26,649 25,506
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if
available) or to historical information about counterparty default rates:
GROUP 2011 Actual
$000
GROUP 2010 Actual
$000
PARENT 2011 Actual
$000
PARENT 2010 Actual
$000
Counterparties with credit ratings
Cash and cash equivalents AA- rating 16,214 14,468 16,181 14,468
Counterparties without credit ratings
Trade and other receivables with no
defaults in the past
Loans to related parties with no
defaults in the past
7,215 6,981 7,318 7,888
- - 3,150 3,150
Total credit risk 7,215 6,981 10,468 11,038
72 | WELLINgTON INSTITUTE OF TECHNOLOgY

NOTES TO THE FINANCIAL STATEMENTS
Liquidity risk
WelTec manages liquidity risk by maintaining adequate reserves to ensure the provision of educational services for the forseeable future. This
is completed by continuously monitoring and forecasting cash flows for the medium term. The maximisation of operational inflows and efficient
management of operational and investing outflows ensures sufficient cash reserves are maintained.
Contractual maturity analysis of financial liabilities
The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual
maturity date.
Carrying amount Contractual cash Less than 6 6 - 12 Months
1 - 2 years $000
$000
flow $000 Months $000
$000
Group 2011
Trade and other payables 4,243 4,243 4,243 - -
Total 4,243 4,243 4,243 - -
Institute 2011
Trade and other payables 4,230 4,230 4,230 - -
Total 4,230 4,230 4,230 - -
Group and Institute 2010
Trade and other payables 4,024 4,024 4,024 - -
Total 4,024 4,024 4,024 - -
Contractual maturity analysis of financial liabilities
The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual
maturity date.
Carrying amount Contractual cash Less than 6 6 - 12 Months
1 - 2 years $000
$000
flow $000 Months $000
$000
Group 2011
Cash and cash equivalents 1,714 1,714 1,714 - -
Trade and other receivables 7,215 7,215 7,215 - -
Term deposits 14,500 14,655 14,655 - -
Total
Institute 2011
23,429 23,584 23,584 - -
Cash and cash equivalents 1,681 1,681 1,681 - -
Trade and other receivables 7,318 7,318 7,318 - -
Term deposits 14,500 14,655 14,655 - -
Other financial assets 3,150 3,150 - - 3,150
Total
Group 2010
26,649 26,804 23,654 - 3,150
Cash and cash equivalents 468 468 468 - -
Trade and other receivables 7,888 7,888 7,888 - -
Term deposits 14,000 14,306 14,306 - -
Total
Institute 2010
22,356 22,662 22,662 - -
Cash and cash equivalents 468 468 468 - -
Trade and other receivables 7,888 7,888 7,888 - -
Term deposits 14,000 14,306 14,306 - -
Other financial assets 3,150 3,150 - - 3,150
Total 25,506 25,812 22,662 - 3,150
2011 ANNUAL REPORT |
73

NOTES TO THE FINANCIAL STATEMENTS
Interest rate risk
WelTec has exposure to interest rate risk to the extent that it has outstanding investments at fixed rates. The interest rates risk on investments is
managed through the use of short term investments, in accordance with Council policy. No significant exposure to interest rate risk exists on the
remaining financial assets and liabilities.
Sensitivity analysis
The table below illustrates the potential profit or loss and equity impact for reasonably possible market movements, with all other variables held
constant, based on financial instrument exposures at the balance date.
2011 Profit -50bps
$000
2011 Profit +50bps
$000
2010 Profit -50bps
$000
2010 Profit +50bps
$000
Group and Institute Interest rate risk
Financial Assets
Cash and cash equivalents (18) 18 (30) 30
Total credit risk (18) 18 (30) 30
Explanation of interest rate risk sensitivity
The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured on a basis
points (bps) movement. For example, a decrease in 50 bps is equivalent to a decrease in interest rates of 0.5%
Interest on financial instruments classified as floating rate is re-priced at intervals of less than one year. Interest on financial instruments classified as fixed
rate until maturity of the instrument.
The other financial instruments of WelTec that are not included in the above tables are non-interest bearing.
33 RELATED PARTY DISCLOSURES
Significant transactions with government related entities
The government influences the roles of WelTec as well as being a major source of revenue.
WelTec has received funding and grants from the Tertiary Education Commission totalling $28.6m (2010, $30.4m) to provide education services for the
year ended 31 December 2011. WelTec also utilises land and buildings legally owned by the Crown.
Collectively, but not individually, significant transactions with government related entities
In conducting its activities, WelTec is required to pay various taxes and levies (such as gST, PAYE, ACC levies) to the Crown and entities related to the
Crown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. WelTec is exempt from
paying income tax and FBT.
WelTec purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown. The purchase
and provision of goods and services to government-related entities for the year ended 31 December 2011 are small when compared to WelTec’s total
expenditure and revenue and have all been conducted on an arm’s length basis. The purchase of goods and services included the purchase of electricity
from genesis and Meridian Energy, air travel from Air New Zealand, and postal services from New Zealand Post. The provision of services to governmentrelated
entities mainly related to the provision of educational courses.
Transactions with key management personnel
Details of key management personnel remuneration are disclosed in note 6 to the financial statements.
Key management personnel include the Chairperson, Councillors, Chief Executive and the Executive Management Team.
During the year, the Metro group of Institutes of Technology and Polytechnics purchased consulting services from Saunders Unsworth, a Wellington
based consulting company. The Council Chairperson Roger Sowry is a partner in this company. WelTec’s share of these costs were $47,330 (2010,
$32,695) and were supplied on normal commercial terms.
74 | WELLINgTON INSTITUTE OF TECHNOLOgY

NOTES TO THE FINANCIAL STATEMENTS
2011 Actual $000 2010 Actual $000
Council remuneration paid during the year
Roger Sowry (Chairperson) 29 19
Alan Barker (Deputy Chairperson) 26 12
Dennis Sharman 14 10
Nancy Ward 14 15
Peter Preston 14 17
Peter Steel 14 12
Suzanne Snively 14 10
Vaughan Renner 14 12
Alex Malahoff - 1
Anne Hare - 2
Cathrine Love - -
Francis Small - 1
Peggy Luke-Ngaheke - 1
Therese Keil - 1
Related party transactions with
subsidiary, associate, and jointly
controlled entity
During the reporting period WelTec
entered into transactions with
LCBNZI Limited Partnership, a
partnership in which WelTec holds
an equity interest through WelTec
Connect Limited (refer note 13).
These transactions occurred within
a normal supplier relationship on
terms and conditions no more or
less favourable than those which
it is reasonable to expect WelTec
would have adopted if dealing with
the partnership at arm’s length.
34 CHANGES IN ACCOUNTING ESTIMATES
There have been no changes in accounting estimates during the period.
35 EvENTS AFTER BALANCE DATE
GROUP AND PARENT
GROUP AND PARENT
2011 Actual $000 2010 Actual $000
Council remuneration paid during the year
WelTec Connect Limited
Unsecured loans payable to WelTec (refer note 35) 3,150 3,150
Debtor for services provided by WelTec 494 -
Associate
MotorTrain Limited
No related party transactions were entered into during the year
LCBNZI Limited Partnership
- -
Services provided by WelTec 30 201
Debtor for services provided by WelTec
LCB Management Limited
6 201
No related party transactions were entered into during the year - -
jointly Controlled Entity
Cybus
Services provided by WelTec 63 -
Debtor for services provided by WelTec 28 -
On 8 March 2012 WelTec was advised in writing from the Tertiary Education Commission that a wash-up payment in excess of that accrued would be
provided for Priority Trades Training. As a consequence WelTec has amended its financial results to incorporate the actual 2011 funding to be received.
WelTec continues to engage with the Tertiary Education Commission with regards to a possible wash-up payment in relation to 2011 Embedded Literacy
and Numeracy provision. A contingent asset has been calculated utilising January SDR actual student numbers, and the prescribed funding formula of
$785 per student. Please refer to note 31.
On 24 April 2012 the Council agreed to convert the on demand loan to WelTec Connect Limited to a capital injection in the form of an increase in the
issued share’s value.
2011 ANNUAL REPORT |
75

RESPONSIBILITIES
In the financial year ended 31 December 2011, the Council and Management of Wellington Institute of Technology
were responsible for:
� The preparation of the Financial Statements, Statement of Objectives and Service Performance and the
judgements used therein.
� Establishing and maintaining a system of internal control designed to provide reasonable assurance, as to
the integrity and reliability of financial reporting.
In the opinion of Council and management of Wellington Institute of Technology, the Financial Statements and
Statement of Objectives and Service Performance for the year ended 31 December 2011 fairly reflect the financial
position and operations of Wellington Institute of Technology and group.
ROgER SOWRY
CHAIRPERSON
27 APRIL 2012
LINDA SISSONS (DR)
CHIEF EXECUTIVE
27 APRIL 2012
76 | WELLINgTON INSTITUTE OF TECHNOLOgY

2011 ANNUAL REPORT |
77

78 | WELLINgTON INSTITUTE OF TECHNOLOgY

2011 ANNUAL REPORT |
79

80 | WELLINgTON INSTITUTE OF TECHNOLOgY

ACRONYMS
AOD Alcohol & Other Drugs
ACE Adult and Community Education
BE Bachelor of Engineering
BPS Basis Points
BSC Bachelor of Science
CATE Career and Technology Education
CCDHB Capital & Coast District Health Board
DAPAANZ Drug & Alcohol Practitioners’ Association Aoteroa New Zealand
DHB District Health Board
EFTS Equivalent Full-Time Student
EMT Executive Management Team
EPIS Educational Performance Indicators
FTE Full-Time Equivalent
HVDHB Hutt Valley District Health Board
IAS International Accounting Standard
IOD Institute of Directors
IRL Industrial Research Limited
IS Information Systems
ISS Income Support Services
IT Information Technology
ITO Industry Training Organisation
ITP Institutes of Technology & Polytechnics
LCBNZI Le Cordon Bleu New Zealand Institute
MBA Master of Business Administration
MITO Motor Industry Training Organisation
MoU Memorandum of Understanding
NZQA New Zealand Qualifications Authority
NZIFRS New Zealand International Financial Reporting Standards
NZTE New Zealand Trade and Enterprise
PBRF Performance-Based Research Fund
R&D Research and Development
SAC Student Achievement Component
SAEER Self Assessment, and External Evaluation and Review
SDR Single Data Return
SME Small and Medium Enterprises
STAR Secondary/Tertiary Alignment Resources
TEC Tertiary Education Commission
TES Tertiary Education Strategy
TFESC Territorial Forces Employers Support Council
UCOL Universal College of Learning
WCL WelTec Connect Limited
2011 ANNUAL REPORT |
81

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Private Bag 39803
Wellington Mail Centre
Lower Hutt 5045, New Zealand
Freephone: 0800 935 832
Telephone: +64 4 9202 400
Facsimile: +64 4 9202 401
www.weltec.ac.nz
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