2012 Performance

Performance against strategic priorities

In 2012, the tertiary sector continued to improve its performance against the priorities set out in the TES.

This section outlines important aspects of the sector’s performance against the seven TES priority areas. The performance sections for each sector focus on the performance of the TES priorities for the youth, Māori and Pasifika student groups.

The tertiary sector continued to improve its performance against TES priorities

TES Priority: Increasing the number of young people achieving qualifications at Level 4 and above, particularly degrees

Overall, participation of young people (those under 25 years of age) and their educational performance remained strong in 2012. The volume of youth enrolments increased by 2 percent compared with 2011 and, as a percentage of all enrolments, increased by 1 percentage point to reach 59 percent of all formal provider-based enrolments and 33 percent of all industry trainees (see figure 8).

In 2012, 79 percent of total youth enrolments were in programmes at Level 5 and above and there was a slight increase in the percentage of youth enrolments at Levels 1–4 and Levels 7–8 over the 2011 year.

Figure 8: Participation by students under 25 years, 2009–12
Figure 8: Participation by students under 25 years, 2009–12 Note:
The 2011 ITO results were the first to be produced using data from the Industry Training Register (ITR). Results from 2011 and 2012 are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

The educational performance of youth continued to improve across all tertiary sectors in 2012. Youth educational performance remained the strongest compared with the total student cohort. Across the sectors, the average youth course completion rate was the highest at universities, and the qualification completion rate was the highest at PTEs (see figure 9). Such variances reflect the different types of enrolments characteristic to each sector, with PTE-sector enrolments being for qualifications that generally take a much shorter time to complete than university degrees.

Figure 9: Participation and achievement by students under 25 years, 2012
Figure 9: Participation and achievement by students under 25 years, 2012

Youth accounted for 33 percent of all industry trainees in 2012, of which 16 percent were engaged in training at Level 4 and above. Achievement by this group was higher than the overall youth cohort in industry training, with 75 percent credit completion and 76 percent qualification completion in programmes at Level 4 and above.

In 2012, youth engaged in targeted programmes consisted of 8,901 Youth Guarantee students and 10,094 FFTO trainees. For the Youth Guarantee students, average credit achievement was 56 and average qualification completion was 0.49. For those completing FFTO, 38 percent went on to further education and 42 percent to employment in 2012.

TES Priority: Increasing the number of Māori students enjoying success at higher levels

Māori enrolments in formal provider-based education increased by 476 EFTS in 2012, while the participation rate remained at 20 percent of total sector enrolments and 17 percent of total industry trainees (see figure 10).

Māori enrolments in formal provider-based education increased

Māori enrolments continued to be strongest across Levels 3–4 (38%) and Levels 7–8 (34%). The continued emphasis at degree level and above was demonstrated by a 536 EFTS increase in Level 7 and above in 2012.

Figure 10: Participation by Māori students, 2009–12
Figure 10: Participation by Māori students, 2009–12 Note:
The 2011 ITO results were the first to be produced using data from the Industry Training Register (ITR). Results from 2011 and 2012 are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Māori educational performance continued to improve across all sectors in 2012. The Māori course completion rate was the highest at universities and the qualification completion rate was the highest at PTEs.

Māori trainees engaged in industry training at Level 4 and above accounted for 5 percent of total trainees. Achievement for this group was stronger than for all other Māori trainees, with 70 percent credit completion and 66 percent qualification completion (see figure 11).

Figure 11: Participation and achievement by Māori students, 2012
Figure 11: Participation and achievement by Māori students, 2012

TES Priority: Increasing the number of Pasifika students achieving at higher levels

Pasifika enrolments increased in 2012 by 1,015 EFTS, with the share of Pasifika formal provider-based students increasing across the sector. Pasifika students accounted for 9 percent of all formal provider-based enrolments and 7 percent of total industry trainees in 2012 (see figure 12).

The educational performance of Pasifika students increased

The distribution of Pasifika enrolments remained largely unchanged in 2012, with participation mainly across programmes at Levels 3–4 (36%) and Levels 7–8 (42%).

Figure 12: Participation by Pasifika students, 2009–12
Figure 12: Participation by Pasifika students, 2009–12 Note:
The 2011 ITO results were the first to be produced using data from the Industry Training Register (ITR). Results from 2011 and 2012 are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

In line with other student cohorts, the educational performance for Pasifika students improved in 2012 across all sectors. The strongest performance was across the PTE sector, with 79 percent course completion and 75 percent qualification completion in 2012.

Pasifika trainees engaged in industry training at Level 4 and above accounted for 2 percent of total enrolments, but demonstrated strong achievement, with 70 percent credit completion and 76 percent qualification completion across programmes at Level 4 and above (see figure 13).

Figure 13: Participation and achievement by Pasifika students, 2012
Figure 13: Participation and achievement by Pasifika students, 2012

TES Priority: Increasing the number of young people moving successfully from school into tertiary education

Further initiatives in 2012 contributed to improving youth transitions into tertiary education.

Merging Youth Training into Youth Guarantee increased the focus on qualification achievements for young people. While the aim of Youth Training was to transition students into work or further study, Youth Guarantee is a fees-free programme aimed at increasing the educational achievement and qualifications of those 16- and 17-year-olds not previously engaged in education.

Additionally, an increase in the number of TEO-based trades academies from five in 2011 to 11 in 2012, reflected the continuing efforts to engage young New Zealanders in education and equip them with the skills to successfully enter the workforce. This increase extended the opportunities for young people to undertake trades-related learning and access tertiary qualifications not available in the schooling sector. Trades academies target secondary school students, with the aim that students achieve National Certificate of Educational Achievement Level 2 and credits toward, or the completion of, a Level 1 or Level 2 tertiary (trades-related) qualification.

TES Priority: Improving literacy, numeracy and skills outcomes from Levels 1–3 study

Providers continued to increase the number of qualifications with an embedded literacy and numeracy component in 2012, and the National Centre of Literacy and Numeracy for Adults/Tukua Kia Rere continued to work with the TEC to support TEOs in improving the literacy and numeracy outcomes of learners. This included provision of the Literacy and Numeracy for Adults Assessment Tool to gauge the reading, writing and numeracy skills of adults enrolled in Levels 1–3 qualifications. Implemented in 2011, the tool has enabled the sector to better respond to the needs of these learners and has contributed to an increase in educational achievement.

TES Priority: Improving the educational and financial performance of providers2

The 2012 year saw a continued focus by providers on lifting educational performance for all learners. This was evident in improved educational performance across the overall sector as well as for most sub-sectors (see figure 14). Stronger course completion, student retention and progression rates all contributed towards higher qualification completion over the 2012 year.

Figure 14: Participation and achievement, 2011 and 2012
Figure 14: Participation and achievement, 2011 and 2012 Note:
The 2011 ITO results were the first to be produced using data from the Industry Training Register (ITR). Results from 2011 and 2012 are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Total revenue of the TEIs was $4.58 billion in 2012, an increase of $112.2 million (2.3%) since 2011 and an increase of $664.1 million (16.8%) since 2008. Total net assets were $7.91 billion at the end of 2012, an increase of $68.3 million since 2011 and of $694.6 million since 2008 (9.6%). An overall increase in government revenue and in domestic and international student fees contributed to the increase.

TEIs recorded a net surplus after unusual and non-recurring items of $99.0 million (or 2.2%) for the financial year ended 31 December 2012 (see table 3). This is a decrease from the 2011 aggregate surplus of $196.3 million (4.4%).

Table 3: Financial performance for all TEIs
Key financial performance metrics 2010 2011 2012 TEC minimum
guidelines
  Net surplus (after unusual and non-recurring items) 5.0% 4.4% 2.2% 3.0%
  Net cash-flow from operations 117.0% 115.7% 115.0% 111.0%
  Liquid funds 27.9% 28.7% 23.0% 8.0%
  3-year average return on property, plant, equipment and intangibles 6.7% 7.1% 6.8% 4.5%

The 2012 result takes into account total unusual items across the sector of $65.4 million, of which $58.2 million was attributed to the Canterbury-based TEIs’ write down of assets affected by the Canterbury earthquake events. Another factor was merger activity in the sector, which included the merger in January 2012 of Telford Rural Polytechnic with Lincoln University and the merger of Tairawhiti Polytechnic with the Eastern Institute of Technology.

The 2012 sector-wide surplus before unusual and non-recurring items was $164.4 million (or 3.6%), which is broadly comparable to same figure for 2011 ($175.9 million or 3.9%) and above the TEC’s recommended target of 3 percent total income (see figure 15).

Figure 15: TEI surplus (after unusual and non-recurring items)
Figure 15: TEI surplus (after unusual and non-recurring items)

TES Priority: Strengthening research outcomes

The number of post-graduate enrolments across the tertiary sector fell nominally in 2012 and remained steady as a percentage of all formal provider-based enrolments.

Under the Performance-Based Research Fund, research and degree completions increased

Under the Performance-Based Research Fund (PBRF), research and degree completions increased from 3,543 in 2011 to 3,825 in 2012, and external research income decreased slightly from $410.5 million in 2011 to $410.2 million in 2012.

The university sector’s research degree completions rose from 3,452 (97%) of the national total in 2011 to 3,678 out of a total 3,825 (96%) in 2012. The sector generated $406.9 million in external research income in 2012, more than 99 percent of the total but a slight decrease compared with 2011. Universities received 97 percent of indicative PBRF funding in 2012.3

ITPs accounted for 122 research degree completions in 2012 and generated $2.4 million in external research income. Wānanga accounted for 17 research degree completions in 2012 and generated over $780,000 in external research income. ITPs received 2 percent of indicative PBRF funding in 2012 and wānanga received 0.2 percent of indicative PBRF funding in 2012.

The Government’s investment in Centres of Research Excellence (CoREs) continued to strengthen research outcomes in 2012, with CoREs continuing to conduct collaborative strategically focused research that contributes to national capability development and knowledge transfer.

The Ministry of Education commenced its review of CoREs policy in March 2012, which aimed to identify policy improvements that would further strengthen the performance of CoREs. This review will lead to government decisions in 2013 about future CoRE policy settings that, in turn, will inform the next CoRE selection round commencing in late 2013.

2Financial information presented is based on the summary template returns of audited financial results provided to the TEC. The figures are presented at a consolidated group level and reflect submissions received up to July 2013. For a more detailed breakdown of TEI financial performance, please refer to the TEC’s website www.tec.govt.nz/Tertiary-Sector/Performance-information/TEI-financial-performance/2012-financial-performance-information
3PBRF funding allocation has two annual processes. First, indicative funding for TEOs is approved before the beginning of the funded year. Second, in the year following the funded year, a wash-up is made to confirm the final funding TEOs will receive.