Institutes of technology and polytechnics (ITPs) are key providers of vocational education in New Zealand. The Government expects ITPs to enable students (including students with low literacy, language and numeracy skills) to complete relevant qualifications that meet industry needs and/or lead to higher levels of learning.
In 2012, the Government funded 18 ITPs across New Zealand to deliver technical, vocational and professional education, and to undertake research, particularly applied and technological research.
The Tertiary Education Strategy (TES) defines the core roles and expectations of ITPs as:
In 2012, ITPs received $620.9 million – 23 percent of total government funding for tertiary education organisations
|Core roles||Government expectations|
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In addition to these core roles and expectations, ITPs advance TES priorities according to the needs of their catchment areas. For smaller ITPs, this often involves helping learners to move on to higher levels of learning at other institutions. Others deliver higher levels of learning and undertake applied vocational research.
The Government expects ITPs to respond to the needs of their local catchments first and foremost, with particular focus on the priority groups identified in the TES (Māori, Pasifika and those aged under 25 years). ITPs contribute to TES priorities through:
In 2012, ITP sector highlights included:
In 2012, the trend for increasing enrolments in higher levels of study continued across the ITP sector
The ITP sector received $620.9 million of Tertiary Education Commission (TEC) funding in 2012 (23% of the total). The sector performed strongly in the following measures:
The ITP sector faced several challenges in 2012, including:
Unless otherwise stated, the following section describes SAC-eligible EFTS only.
The ITP sector delivered the largest share (36%) of its SAC-eligible EFTS at Levels 3–4, followed by Levels 7–8 (30%) and Levels 5–6 (20%) (see figure 27). In 2012, the trend for increasing enrolments in higher levels of study continued across the ITP sector, with consistent increases over previous years. Participation at Levels 7–8 increased by 4 percent and Levels 9–10 by 5 percent.
The volume of provision at Levels 1–2 has continued to reduce over the past six years, with a steep drop in provision of 672 EFTS (–8%) in 2012. Some of this reduction may reflect the impact of a competitive tendering process for provision at these levels.
Overall, the distribution of students by field of study changed little compared with 2011 (see figure 28). Across 2012, enrolments in Health (16%) took over from Management and Commerce (15%) as the largest field of study in the ITP sector. Across all enrolments, the largest decrease was in Management and Commerce, which fell by 4 percent (360 EFTS) in 2012, while Health increased by 7 percent (710 EFTS).
Figure 29: ITP enrolments by ethnicity, 2009–12
Total may exceed total EFTS or 100 percent as some students identify with more than one ethnicity.
Overall, the ITP sector continued to improve its performance against all of the EPIs in 2012 (see figure 30). The following section highlights important aspects of performance among the TES priority groups of youth, Māori and Pasifika learners, as well as research and financial performance.
TES Priority: Increasing the number of young people achieving qualifications at Level 4 and above, particularly degrees
In 2012, participation of under-25-year-olds continued to increase (see figure 31). This group grew to 52 percent of all enrolments across the ITP sector, up from 51 percent in 2011, which equated to an increase of 1,527 EFTS. As in the previous year, youth enrolments continued to grow in higher-level study, with an increase of 570 EFTS across Levels 7–10 in 2012.
Performance against the educational performance indicators improved amongst students aged under 25 years, Māori and Pasifika at ITPs
Youth achievement at ITPs improved across all EPIs in 2012. Course completion increased (up from 76% in 2011 to 78% in 2012) as did qualification completion (up from 57% in 2011 to 63% in 2012), student retention (up from 57% in 2011 to 65% in 2012) and student progression for Levels 1–4 (up from 39% in 2011 to 45% in 2012).
In general, youth achievement improved, compared with the previous year, across each level of study for almost all of the EPIs; this was especially the case for higher-level study.
In 2012, youth participation was also evident in targeted programmes, with 1,990 students enrolled in the Youth Guarantee scheme. The educational performance of Youth Guarantee students showed that an average of 73 credits was achieved and 0.60 qualifications were completed in 2012. There were also 597 FFTO placements, of which 33 percent progressed to further education and 31 percent progressed to employment.
TES Priority: Increasing the number of Māori students enjoying success at higher levels
Māori enrolments increased by 8 percent in 2012 and accounted for 22 percent of total ITP enrolments. Māori enrolments increased across each level of study but predominantly at Levels 3–4 (up by 985 EFTS). Educational achievement by Māori students improved across each of the four EPIs across each level of study compared with 2011 (see figure 32). Overall, course completion increased (up from 70% in 2011 to 73% in 2012) as did qualification completion (up from 54% in 2011 to 61% in 2012), student retention (up from 46% in 2011 to 54% in 2012) and student progression for Levels 1–4 (up from 32% in 2011 to 38% in 2012). Despite these positive increases, Māori achievement in 2012 remained below the averages of all ITP students, including the student groups of Pasifika and youth.
TES Priority: Increasing the number of Pasifika students achieving at higher levels
A 7 percent increase in Pasifika enrolments at ITPs (710 EFTS) meant that, in 2012, Pasifika enrolments accounted for 10 perfect of total ITP enrolments. The majority of Pasifika students studied at Levels 3–4 (42% or 2,937 EFTS), followed by Levels 7–8 (26% or 1,801 EFTS). Pasifika enrolments in degree-level and higher programmes increased 15 percent (279 EFTS) from 2011.
Educational performance by Pasifika students improved, compared with 2011, across each of the four EPIs (see figure 33). The largest increases were for qualification completion (up from 52% in 2011 to 62% in 2012) and student progression (up from 33% in 2011 to 43% in 2012), while course completion also increased (up from 71% in 2011 to 73% in 2012) as did student retention (up from 50% in 2011 to 59% in 2012).
TES Priority: Strengthening research outcomes
ITPs undertake research that supports vocational learning, and work with business and industry to transfer technology to the economy.
The volume of post-graduate enrolments increased at ITPs
Across the ITP sector, the share and volume of post-graduate enrolments has steadily increased over recent years (see figure 34). In 2012, post-graduate enrolments accounted for 1 percent (898 EFTS) of all ITP enrolments.
Funding for the Performance-Based Research Fund (PBRF) is allocated according to three elements: quality evaluation, research degree completion and external research income. ITPs received 2 percent of the indicative PBRF funding in 2012, while accounting for 122 research degree completions and generating $2.4 million in external research income.
Financial performance across the ITP sector met the TEC’s recommended 3 percent surplus target (after unusual and non-recurring items). In 2012, the sector achieved an overall net surplus of 3.5 percent, down on 5.1 percent in 2011. Total operating revenue increased in 2012, with total government funding up $19.6 million due to an increase in targeted student-based educational funding. Total operating expenditure increased by $43.7 million, more than offsetting the increase in revenue resulting in a decrease in profitability across the sector. ITP balance sheets remained strong but with a decline in liquidity levels (see table 5).
|Key performance metrics||2010||2011||2012||TEC minimum |
|Net surplus (after unusual and non-recurring items)||7.1%||5.1%||3.5%||3.0%|
|Net cashflow from operations||117.5%||115.2%||113.2%||111.0%|
|3-Year average return on property, plant, equipment and intangibles||8.4%||8.9%||7.2%||4.5%|
|Summary financial statements |
|2010||2011||2012||% of 2012 |
|Total government revenue||$679,186||$631,373||$650,982||60%|
|Domestic student fees||$233,132||$241,544||$247,928||23%|
|International student fees||$83,538||$90,872||$96,494||9%|
|Other income |
|Property, plant, equipment and intangibles||$1,532,137||$1,574,577||$1,664,872||82%|
|Equity (net assets)||$1,674,101||$1,719,808||$1,760,891|
* This summary is based on data submitted to the TEC by individual ITPs as part of the TEC’s financial monitoring framework.
Almost all TEC-allocated funding for ITPs in 2012 went towards Teaching and Learning ($613.7 million or 99% of the total). The rest was spread across Research ($6.2 million) and Capability ($1.0 million) (see figure 35).
ITPs will continue to focus on four key areas in 2013 and beyond to support the TES priorities: