Institutes of Technology and Polytechnics

Eastern Institute of Technology

Chair: David Pearson
Chief Executive: Chris Collins
Main Campus Key Main Campus
Taradale, Napier, Gisborne
Other Campus Key Other Campus Locations
Hastings, Waipukurau, Flaxmere, Maraenui, Wairoa, Ruatoria, Tokomaru Bay
NZQA EER
Educational Performance: Highly Confident
Self-assessment: Confident
Funding by TEC
86.7% Teaching and Learning
12.7% Capability
0.6% Research
Scholarships/Learners
TEC Funding
Delivery by Level
24.9% Level 1–2
26.4% Level 3–4
13.9% Level 5–6
34.4% Level 7–8
0.3% Level 9–10
Delivery By Level
Delivery by Subject
20.0% Health
15.9% Management and Commerce
11.5% Agriculture, Environmental and Related Studies
11.0% Society and Culture
8.7% Creative Arts
33.1% Other
Delivery By Subject

Eastern Institute of Technology (EIT) continues to strengthen its educational performance overall, and is in a healthy financial position in 2011. This is a particularly good result given the costs and risks of the merger with Tairāwhiti Polytechnic (Tairāwhiti).

EIT’s 2011 group results are not necessarily comparable to previous years, given the merger with Tairāwhiti on 1 January 2011.

Responsiveness

The merger with Tairāwhiti was a significant focus for EIT throughout 2011, and is intended to improve educational provision across the Hawke’s Bay and Tairāwhiti regions. The merger implementation plan has focused on harmonising academic policies, processes and structures, developing an integrated programme portfolio, and a significant investment in building blended delivery of academic capabilities across the multi-campus institution.

Enrolments in 2011 increased by 32 percent (867 EFTS), due largely to the merger. The increase in EFTS was predominantly at Levels 1–4 and 7–8 (increases of 655 and 256 EFTS respectively). The largest section of EIT’s education delivery was at Levels 7–8 in 2011. The largest fields of study were Health (20%), Management and Commerce (16%), Agriculture, Environmental and Related Studies (11%) and Society and Culture (11%). As EIT offers a broad range of subject areas, other fields accounted for 33 percent of total provision in 2011.

The merger with Tairāwhiti drove a significant increase in Māori participation, up from 33 percent of EIT students in 2010 to 42 percent in 2011. This is well above the regional demographic for Māori as well as above the ITP sector average (22%). Participation of under-25-year-olds and Pasifika students increased in EFTS volume and was similar to regional demographics.

The majority of the key performance indicators in EIT’s 2011 Statement of Service Performance were achieved or partially achieved.

Effectiveness

In 2011 the effectiveness of EIT’s education delivery was evidenced in higher course and qualification completions compared with 2010. EIT’s course completions were on par with the ITP sector average, while a drop in qualification completions and student retention was likely attributable to the merger with Tairāwhiti. In 2011, 49 percent of all EIT’s enrolments were at Levels 1–4, and it achieved well above the ITP sector progression rate (29%) with 42 percent of its students progressing to a higher level of study. In 2011, performance of TES priority groups (Māori, Pasifika and under-25-year-olds) improved in both course and qualification completion. Course completions and student progression among all three priority groups were above the ITP sector average.

EIT received 0.09 percent of the 2011 total allocation for the Performance-Based Research Fund (PBRF), an increase from 0.07 percent in 2010. It earned PBRF-eligible external research income of $176,093 in 2011, down 38 percent on 2010.

Capability

In 2011, the EIT council re-assessed its membership following the merger. The assessment resulted in the EIT council deciding to appoint two new members to reflect its expanded geographic region and to include members from the Tairāwhiti council.

In 2011 EIT reported a group net surplus of $4.1 million (7.4%) before unusual and non-recurring items, which in turn took the surplus to $6.6 million. The result is not comparable to the 2010 result because of the merger with Tairāwhiti. The unusual and non-recurring item was government merger funding of $5.0 million recognised on receipt, less merger implementation costs of $2.5 million incurred during the year. EIT’s total revenue, excluding merger funding, increased by $12.1 million, of which $8.9 million was government funding, comprising funding for delivery in Tairāwhiti less government funding reductions.

EIT's capital expenditure is expected to average around $7 million per annum between 2012 and 2021. Capital projects are to replace and refurbish non-residential buildings.

TES Priorities

Participation
2011 Performance EIT ITP sector 
Students under 25 49% 51%
Māori 42% 21%
Pasifika 4% 10%
Course Completion
2011 Performance  EIT ITP sector 
All  78% 78%
Students under 25 77% 76%
Māori 72% 70%
Pasifika 72% 71%
Qualification Completion
2011 Performance  EIT ITP sector 
All 58% 63%
Students under 25 53% 57%
Māori 52% 54%
Pasifika 49% 52%
EIT’s 2011 educational and financial results are not necessarily comparable to previous years, given the merger of EIT with Tairāwhiti on 1 January 2011.

Of the tertiary-aged population in the EIT region, 29% were identified as Māori, 2% as Pasifika and 13% as under the age of 25 years. (Based on Statistics NZ 2011 Population projections). * The 2011 net surplus includes merger revenue of $5.0 million and costs of $2.5 million as abnormal items.  Excluding these, the surplus would be $4.1 million or 7.4%.
Overview of Educational Performance – Formal SAC Funded EFTS only
Enrolments 2009 2010 2011 % of ITP sector
EFTS 2,553 2,729 3,596 6%
Students 5,767 6,152 6,848 5%
Educational Performance Indicators 2009 2010 2011 ITP sector
Successful Course Completion 67% 76% 78% 78%
Qualification Completion 43% 55% 58% 63%
Student Retention 49% 52% 48% 49%
Student Progression L1-4 48% 45% 42% 29%
Overview of Financial Performance*
Key Performance Metrics 2009 2010 2011 TEC Minimum Guidelines
Net surplus (after unusual and non-recurring items) 5.1% 8.2% *10.9% 3.0%
Net cashflow from operations 118.0% 124.4% 122.1% 111.0%
Liquid funds 35.1% 38.2% 39.1% 8.0%
3-yr average return on property, plant equipment and intangibles 5.5% 6.7% 8.4% 4.5%
Summary Financial Statements ($000) 2009 2010 2011 % of 2011 category
Revenue        
Total government revenue $24,382 $27,557 *$41,032 68%
Domestic student fees $8,045 $9,293 $11,524 19%
International student fees $2,778 $2,755 $3,049 5%
Other income (including research) $4,434 $3,976 $5,087 8%
Total revenue $39,640 $43,581 *$60,692 100%
Expenses        
Personnel $23,826 $24,776 *$32,499 60%
Total expenses $37,619 $40,004 *$54,057 100%
Net surplus (after unusual and non-recurring items) $2,021 $3,577 *$6,634  
Assets        
Property, plant equipment and intangibles $79,744 $82,030 $105,236 83%
Total Assets $93,562 $97,462 $127,241 100%
Equity (net assets) $85,955 $89,758 $117,455  
Cashflow        
Net cashflow from operations $6,026 $8,551 $11,066  
Purchase of plant property equipment and intangibles $6,447 $7,238 $6,406  
Other        
Staffing FTE 386 392 523  
Total EFTS to Total staff ratio 8:1 8:1 9:1  
Total EFTS to Teaching Staff ratio (academic & tutorial) 15:1 16:1 15:1