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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
|Key performance metrics||2009||2010||2011|| TEC minimum |
|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%|
|3-Year average return on property, plant equipment and intangibles||6.4%||6.7%||7.1%||4.5%|
| Summary financial statements |
|2009||2010||2011|| % of 2011 |
|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%|
|Property, plant equipment and intangibles||$7,549,971||$7,754,612||$7,921,389||85%|
|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.