2011 Performance

Performance against strategic priorities

In 2011 the tertiary sector continued to improve its performance against the priorities set out in the TES.

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

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

Enrolments and educational performance remained strong

Overall, enrolments and the educational performance of young people (those under 25 years of age) remained strong in 2011. While the volume of youth enrolments dropped by four percent compared with 2010, the proportion of youth enrolled grew by two percentage points to reach 58 percent of all formal provider-based enrolments.

Figure 8: Participation by students and trainees under 25 years, 2008–2011
Figure 8: Participation by students and trainees under 25 years, 2008–2011
Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Overall, the educational performance of under-25-year-olds continued to improve in 2011. Across the tertiary sectors, youth course completion rates were highest at universities and qualification completions rates were highest at PTEs. Such variances reflect different types of enrolments: PTE-sector enrolments tend to be in lower-level qualifications that take a shorter time to complete than university qualifications.

Figure 9: Participation and achievement by students under 25 years, 2011
Figure 9: Participation and achievement by students under 25 years, 2011

The proportion of youth enrolled at Level 4 and above rose by two percentage points to reach 51 percent of all youth enrolments in formal provider-based education. Participation rose by 298 EFTS (up 12%) in Master’s and doctoral programmes (Levels 9–10), while enrolments fell at Levels 4–6 (down by 4% or 1,026 EFTS). Youth achievement at Levels 4 and above improved compared with 2010 and was higher than the overall youth cohort: the course completion rate by youth at Levels 4 and above increased from 82 percent in 2010 to 84 percent in 2011, and their qualification completion rate increased from 61 percent to 66 percent over the same period.

Fifteen percent of youth in industry training were at Levels 4 and above (21,627 trainees). Achievement by this group was higher than the overall youth cohort in industry training, with youth achievement at Levels 4 and above at 86 percent for credit achievement and 83 percent for programme completions.

2011 also saw significant youth participation in targeted programmes such as Youth Guarantee and Youth Training. The tertiary sector had 2,608 Youth Guarantee EFTS and 9,477 Youth Training placements in 2011. Sixty-five percent of Youth Guarantee students successfully completed their courses and 54 percent completed their qualifications in 2011. Among Youth Training students, 39 percent went on to further education and 35 percent progressed to employment in 2011. There were also 9,476 FFTO placements, of whom 24 percent advanced to further education and 41 percent went on to employment.

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

As for other groups, the volume of Māori students enrolled in tertiary education dropped in 2011; however, the share of Māori has remained steady at 20 percent of all enrolments since 2008.

Figure 10: Participation by Māori, 2008–2011
Figure 10: Participation by Māori, 2008–2011
Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Māori educational achievement continued to improve

Māori enrolments in tertiary education increasingly focus at degree level and above. In 2011 Māori enrolments in formal provider-based education were mainly at Levels 3–4 (37% of total Māori EFTS) and Levels 7–10 (36%). Māori educational achievement continued to improve across all sectors, with higher rates of both course and qualification completions.

Figure 11: Participation and achievement by Māori students, 2011
Figure 11: Participation and achievement by Māori students, 2011

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

Pasifika enrolments increased slightly in 2011, with the share of Pasifika students also increasing in formal provider-based study across the sector. Pasifika enrolments in 2011 accounted for nine percent of provider-based enrolments (up from 8% in 2010) and seven percent of total industry trainees.

Figure 12: Participation by Pasifika students, 2008–2011
Figure 12: Participation by Pasifika students, 2008–2011
Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

In 2011 Pasifika students were mainly studying at Levels 7–8 (41% of total Pasifika EFTS) and Levels 3–4 (36%). This represents a continued increase in participation at higher levels among Pasifika students, with a one percentage point (248 EFTS) increase in share at Levels 7–8 and a decrease of two percentage points (411 EFTS) at Levels 3–4 compared with 2010.

The educational performance of Pasifika students improved in 2011. Course and qualification completions by Pasifika students overall increased by four and five percentage points respectively compared with 2010.

Pasifika enrolments at higher levels of study continued to increase, as did Pasifika educational achievement

Figure 13: Participation and achievement by Pasifika students, 2011
Figure 13: Participation and achievement by Pasifika students, 2011

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

The Government has introduced targeted initiatives to attract more youth into tertiary study. This included the 2010 roll-out of Youth Guarantee, a fees-free programme aimed at increasing the educational achievement of 16- and 17-year-olds who are not currently engaged in education, and to improve transitions between school, tertiary education and work. Other progress in this area included opening the first secondary/tertiary high school at Manukau Institute of Technology, as well as five TEO-based trades academies.

Participation in the Youth Guarantee programme increased strongly in 2011. By ethnicity, 52 percent of the students identified as European, 29 percent Māori and 14 percent Pasifika in 2011. Youth Guarantee enrolments increased by volume across all ethnicities, though the share accounted for by Māori increased in 2011 and decreased for Pasifika students.

The achievement of Youth Guarantee students improved in 2011 across Levels 1–3. By ethnicity, achievement was higher among European and Māori students in 2011, but decreased among Pasifika and Asian students.4

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

In 2011 the National Centre of Literacy and Numeracy for Adults continued to provide TEOs with professional development on literacy and numeracy.

During 2011 TEOs were required to use the Literacy and Numeracy for Adults Assessment Tool with all learners enrolled in Levels 1–3 provision. The tool helps record an individual’s progress in order to improve teaching and learning in Levels 1–3 programmes. Indicators to measure literacy and numeracy gain based on Assessment Tool data are currently being developed.

TES Priority: Improving the educational and financial performance of providers5

In 2011, educational performance improved across the tertiary sector as a whole as well as among all types of TEOs. Higher course completion rates contributed to better qualification completion in all sectors.

Figure 14: Participation and achievement, 2010 and 2011
Figure 14: Participation and achievement, 2010 and 2011
Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

TEIs achieved an overall surplus (after unusual and non-recurring items) on revenue of 4.4 percent (compared to 5.0% in 2010). Total revenues increased by 1.3 percent ($56.5 million) to $4.5 billion in 2011, with the main increases from domestic and international student tuition fees. Total operating expenses increased by 2.5 percent ($104.6 million) with personnel costs comprising over 80 percent of that increase.

Figure 15: TEI surplus as a percentage of total revenue (after unusual and non-recurring items)
Figure 15: TEI surplus as a percentage of total revenue (after unusual and non-recurring items)

TEI balance sheets strengthened between 2010 and 2011, with improved liquidity levels and increased investment in campus facilities. As at 31 December 2011 the value of total assets managed by the TEIs was $9.3 billion, with $7.9 billion in long-term fixed assets. Of the sector’s total fixed assets, 79 percent ($6.2 billion) were managed by the universities.

Total equity (net assets) in the TEI sector was $7.8 billion, unchanged from 2010. The lack of growth in net assets was due to revaluation write-downs of $155 million largely offsetting the sector’s $196 million net surplus.

Table 3: Overview of financial performance of TEIs
Key performance metrics 2009 2010 2011 TEC minimum
guidelines
Net surplus (after unusual and non-recurring items) 4.3% 5.0% 4.4% 3.0%
Net cashflow from operations 117.1% 117.0% 115.7% 111.0%
Liquid funds 26.0% 27.9% 28.7% 8.0%
3-Year average return on property, plant equipment and intangibles 6.4% 6.7% 7.1% 4.5%
Summary financial statements 
(NZ$000)
2009 2010 2011 % of 2011
category
Revenue:        
Total government revenue $2,119,867 $2,198,918 $2,204,822 49%
Domestic student fees $740,374 $806,450 $820,434 18%
International student fees $330,677 $361,489 $379,015 8%
Other income (including research) $986,946 $1,057,654 $1,076,771 24%
Total revenue $4,177,865 $4,424,510 $4,481,041 100%
Assets:        
Property, plant equipment and intangibles $7,549,971 $7,754,612 $7,921,389 85%
Other assets $1,332,413 $1,450,680 $1,426,261 15%
Total Assets $8,882,385 $9,205,292 $9,347,650 100%
Equity (net assets) $7,521,979 $7,797,397 $7,838,344  

TES Priority: Strengthening research outcomes

The number of postgraduate enrolments across the tertiary sector fell nominally in 2011, but since other enrolments decreased at a larger rate, postgraduate enrolments as a proportion of the total rose by one percentage point.

Under the Performance-Based Research Fund (PBRF), research and degree completions increased from 3,145 in 2010 to 3,543 in 2011 and external research income rose from $404.0 million in 2010 to $410.5 million in 2011.

The government’s investment in Centres of Research Excellence (CoREs) continued to strengthen research outcomes in 2011. The mid-term review of CoREs conducted in 2010 confirmed that they are following coherent research agendas, carrying out research that is of benefit to New Zealand, and delivering research that is at the top of its class in New Zealand and in many instances internationally.

In 2011 the Ministry of Education announced a review of CoRE policy before current contracts end in June 2014. This review will lead to Government decisions in late 2012 about future CoRE policy settings and inform the next selection round, scheduled for 2013 and 2014.

4More information on the performance of Youth Guarantee can be found on the TEC website: http://www.tec.govt.nz/Funding/Fund-finder/Youth-Guarantee/Performance/
5Financial information presented is based on the summary template returns of audited financial results provided to TEC. The figures are presented at a consolidated group level and reflect submissions received up to July 2011. For a more detailed breakdown of TEI financial performance, please refer to the TEC’s website: http://www.tec.govt.nz/Tertiary-Sector/Performance-information/TEI-financial-performance/2011-financial-performance-information/