TE AHO O TE KURA POUNAMU

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2 Te Aho o Te Kura Pounamu The Correspondence School 11 Portland Crescent, Thorndon, Wellington, New Zealand Private Bag 39992, Wellington Mail Centre, Lower Hutt 5045, New Zealand Telephone:

3 01 KEY POINTS NGĀ KAUPAPA MATUA > > In 2010 we continued to build stronger connections with students, families and communities through the development of partnerships and by locating more staff in our regional offices. One such very successful partnership took place in Gonville with the Whanganui Regional Primary Health Organisation. This greatly improved our ability to offer fully integrated regional teaching and support services to students in that area. Expansion of the Auckland office allowed Te Kura to accommodate additional staff in that region, while recruitment of staff to all three regional offices continued throughout the year. To further develop these local relationships, each of the four regions also laid the groundwork for establishing its own regional reference group, designed to give local stakeholders greater opportunity to have a say about their school. > > The facilitation of authentic learning opportunities has been a key focus for Te Kura in 2010, both regionally and nationally. We adopted a one student at a time, one teacher at a time approach to build a new authentic learning pathway for students and we reached out to develop strong connections with local employers and other education providers in our students own communities. > > Te Kura was selected to take part in He Kākano, a leadership development programme for schools aimed at developing culturally responsive leadership with the overarching goal of improving Māori student achievement. > > As part of our focus on meeting the needs of our Māori students, we reviewed our Māori Learners Success Framework to realign it as our Māori Responsiveness Strategy, reflecting the re-released Ministry of Education strategy Ka Hikitia Managing for Success: The Māori Education Strategy > > As part of our Māori Responsiveness Strategy, a partnership with the Auckland University of Technology (AUT) saw the development of an online te reo Māori course at NCEA level one. > > Implementation of the new National Standards for reading, writing and mathematics saw extensive professional development provided throughout 2010 for staff of students in years 1 to 8. Parents of these students responded favourably to the results for this first year which showed that about two thirds of students are working at or above the standard for their year level except in reading, where their achievement is a little higher. > > In response to the review of NCEA standards by the Ministry of Education and NZQA, Te Kura embarked on an extensive project to revise NCEA level one resources. > > We began trialling alternative delivery options for dual-enrolled students, in preparation for the move to full digital delivery of learning materials for that student group. Meanwhile, our regionally-based relationship coordinators focused on providing targeted additional support where required, in particular to alternative education providers and teen parent units. > > Over the course of 2010 we have continued with the programme of work to replace several ageing computer systems. We completed the implementation of our new online teaching and learning environment (OTLE) and electronic document and records management system (EDRMS) during the year. Good progress was also made on the student management system (SMS) which is due to be implemented in August > > I te tau 2010 ka hangaia tonutia e mātou ngā hononga i waenga i ngā ākonga, ngā whānau me ngā hāpori mā te whakapakari whakahoatanga me te whakatū kaimahi anō ki ō mātou tari ā-rohe. Ko tētahi whakahoatanga momoho ko te mahi tahi me te PHO o te rohe o Whanganui (arā, ko Whanganui Regional Primary Health Organisation) ki Gonville. Nā tēnā i kaha ake ai tā mātou āhei ki te tuku ratonga whakaakoranga ā-rohe kua whakakotahingia katoatia hei tautoko i ngā ākonga o taua takiwā. Nā te whakanui ake i te tari i Tāmaki Makaurau i taea ai e Te Kura ngā kaimahi tāpiri te haumaru ki taua rohe, ā, ka haere tonu te rapu kaimahi ki ngā tari ā-rohe e toru i te tau nei. Hei whakawhanake tonu i ēnei whakahoatanga ā-rohe i riro mā tēnā, mā tēnā o ngā rohe e whā te whakatakoto tūāpapa hei whakatū rōpū aratohu ā-rohe, ko te tikanga kia whai wāhi ai te hunga whai pānga ā-rohe ki te whakaputa whakaaro mō tā rātou kura. > > I te tau 2010 ko te whakahaere mea angitu akoranga motuhenga te aro matua o Te Kura rohe mai, motu mai hoki. I whakapūmautia e mātou te kaupapa kotahi te ākonga, kotahi te kaiako hei whakatū i tētahi ara akoranga motuhenga hou mā ngā ākonga, ā, i toro atu hoki mātou ki ngā kaiwhakawhiwhimahi o te rohe me ētahi atu kaiwhakarato mātauranga i roto i ngā hapori o ā mātou ākonga. > > I kōwhiria a Te Kura kia uru ki roto o He Kākano, he hōtaka whakawhanake amorangi mō ngā kura hei whakawhanake i te ārahitanga whai tikanga me te whāinga matua kia piki ake te whakatutukitanga o te ākonga Māori. > > I arotake mātou i tā mātou pou tarāwaho momoho, arā, ko te Māori Learners Success Framework mō ngā ākonga Māori hei wāhanga o tā mātou aro matua kia tutuki ai ngā hiahia o ā tātou ākonga Māori, kia tau pai ai hoki ki raro i tā mātou Rautaki Māori, arā, ko te Māori Responsiveness Strategy, hei whakaata hoki i te whakarewatanga anō o te rautaki a te Tāhuhu o te Mātauranga, arā, ko Ka Hikitia Managing for Success: The Māori Education Strategy > > Hei wāhanga anō o tā mātou Rautaki Māori i whakahoa mātou me te wānanga aronui o Tāmaki Makaurau, arā, ko te Auckland University of Technology (AUT). Ko te hua i puta mai ko tētahi hōtaka reo Māori ā-ipurangi kei te taumata tuatahi o NCEA. > > Nō te whakakaupapatanga o Ngā Whanaketanga ā-motu hou mō te pānui, te tuhi, me te pāngarau ka kitea te kaha whakangungu pūkenga i ngā kaimahi o ngā ākonga mō ngā tau 1 8 i te tau Ka rata atu ngā mātua o ērā ākonga ki ngā hua o tēnei tau tuatahi e mea ana tokorua o ia takitoru ākonga kei te taumata tika mō tō rātou tau e mahi ana kei runga ake e mahi ana rānei hāunga mō te pānui, me kī, he kaha ake anō te whakatutuki. > > Hei urupare ki te arotakenga o ngā whanaketanga o NCEA nā te Tāhuhu o te Mātauranga me te Mana Tohu Mātauranga o Aotearoa, i whakarahi ake a Te Kura i te mahi arotake i ngā rauemi taumata tuatahi o NCEA. > > I tīmata mātou ki te whakamātau kōwhiringa tuku anō mā ngā ākonga kua rēhita tukuruatia, hei whakarite i te nekehanga ki ngā tuku ā-ipurangi i ngā rawa akoranga mā taua rōpū ākonga. Heoi, ka aro atu ā mātou kaiwhakahaere hononga ā-rohe ki te tuku tautoko ki ngā wāhi e hiahiatia ana te āwhina pērā i ngā kaiwhakarato mātauranga hohoko me ngā whare āhuru mōwai mō ngā taiohi e whai tamariki ana. > > I te tau 2010, ka whakahou tonu mātou i ētahi o ngā pūnaha rorohiko tawhito. Kua tutuki i a mātou te whakaurunga o tā mātou tauwāhi whakaakoranga ā-ipurangi, akoranga ā-ipurangi hoki (arā, ko OTLE) me te pūnaha pārongo hiko, whakahaere pārongo hoki (arā, ko EDRMS) i te tau nei. He tino pai te haere o te pūnaha whakahaere ākonga (arā, ko SMS) ka whakatinanahia ā te marama o Hereturikōkā IV V

4 ANNUAL REPORT CON TENTS 01 CHAIR S REPORT 03 TE KUPU A TE HEAMANA 02 CHIEF EXECUTIVE S REPORT 05 TE KUPU A TE KAIHAUTU 03 GOVERNANCE 07 TE POARI WHAKAHAERE 04 OUR STUDENTS AND COMMUNITY 09 Ā MĀTOU ĀKONGA TŌ MĀTOU HAPORI 05 STRATEGIC CONTEXT 13 TE HOROPAKI RAUTAKI 06 MĀORI RESPONSIVENESS STRATEGY 15 TE RAUTAKI URUPARE KI NGĀ AKONGA MAORI 07 STATEMENT OF SERVICE PERFORMANCE 17 TE TAUAKI WHAKATUTUKITANGA RATONGA 08 ACHIEVEMENTS 21 NGĀ MAHI KUA OTI 09 FINANCIAL STATEMENTS 29 NGĀ PURONGO PUTEA 01 02

5 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 01 CHAIR S REPORT TE KUPU A TE HEAMANA 01 TE KUPU A TE HEAMANA CHAIR S REPORT very pleased to present the 2010 annual report for Te Aho o Te Kura Pounamu was the first year of our strategic plan, which focused on three strategic priorities: fully integrated regional teaching and support services for full-time students, authentic and engaging learning experiences for full-time students, and a distinct service delivery model for dual students targeted at their specific needs. There has been significant progress towards fully integrated regional teaching and support services. The regional offices in Auckland, Hamilton and Christchurch were expanded to accommodate additional staff and recruitment of staff to these offices continued. Each of the four regions laid the ground work for establishing a regional reference group with the aim of giving stakeholders in the regions greater opportunity to have a say about their school. Several regional initiatives were further developed during the year, including a very successful partnership in Gonville with the Whanganui Regional Primary Health Organisation. This partnership has enabled students to access face-to-face support from a learning advisor based in the Gonville community centre, whose encouragement and assistance is helping them to achieve and gain credits towards NCEA. Good progress was made towards creating a new authentic learning pathway for students, building on the Big Picture approach that has been implemented with great success internationally. The Authentic Learning Project began its trialling and development phase during 2010, with small steps and a one student at a time, one teacher at a time approach. A core element of authentic learning is the development of strong connections within students communities to facilitate authentic learning opportunities for students with local employers and other education providers, and this was a key focus at both the regional and national level. Te Kura began trialling alternative delivery options for dual students, with the aim of working collaboratively with schools in preparation for the move to full digital delivery of learning materials for these students. Relationship coordinators in each of the regions focused their efforts on supporting a wide range of dual providers, in particular those providers needing additional support such as alternative education providers and teen parent units. To align with the Board of Trustees electoral cycle, an election was held for Te Kura staff to choose one of their colleagues to sit on the school s Board of Trustees. Staff re-elected Central South Regional Manager John Nisbet, who has provided valuable input to the Board since he was first elected in Extensive development work on the school s main site in Thorndon was completed during This included replacement of the roof, refurbishment of the main entrance and reception areas, and renovation of the main kitchen and adjacent courtyard. Education Minister Hon Anne Tolley visited the school in April to meet with Board and senior leadership team members to discuss the school s strategic direction. PATRICIA MCKELVEY CNZM MBE 03 04

6 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 02 CHIEF EXECUTIVE S REPORT TE KUPU A TE KAIHAUTU 02 TE KUPU A TE KAIHAUTU CHIEF EXECUTIVE S REPORT saw considerable progress on key activities across Te Kura and towards the achievement of our three enabling strategies: engage, develop and support Māori learners to achieve as Māori; become a leader in e-learning and utilise technology effectively throughout the school; and ensure our people, systems and processes are adaptive, responsive and capable of achieving our goals. Implementation of the new National Standards for reading, writing and mathematics began in 2010, with extensive professional development for staff of students in years 1 to 8 throughout the year. Teachers reported on students achievement and progress against the National Standards at mid and end of year. Feedback from parents after this reporting was very positive. Teachers also worked with students and their supervisors to set goals for students achievement in these areas. Reports analysing students achievement against the National Standards were provided for the Board on mid and end of year results. The Board has set targets for improvement across the school based on this analysis. Results for the first year showed that about two thirds of students are working at or above the standard for their year level, with the exception of reading which is a little higher. The proportion at or above goes down as the year level goes up. The review of NCEA standards by the Ministry of Education and NZQA also got underway in 2010, resulting in an extensive project by Te Kura to revise our NCEA level one resources to align them with the updated standards. The project involved many staff across the school, who were responsible for writing new resources, or amending existing ones; peer-review; editing; layout and design. On behalf of the senior leadership team and Board of Trustees I would like to formally acknowledge the considerable effort of everyone involved to help ensure the availability of the new course materials for students enrolled in these courses in During 2010 our Māori Learners Success Framework was reviewed and realigned as our Māori Responsiveness Strategy, reflecting the re-released Ministry of Education strategy Ka Hikitia Managing for Success: The Māori Education Strategy A key element of the strategy was the development of an online te reo Māori course at NCEA level one, the result of a partnership with the Auckland University of Techology. Te Kura was chosen to be part of He Kākano, a leadership development programme for schools aimed at developing culturally responsive leadership with the overarching goal of improving Māori student achievement. In 2009 Te Kura launched a programme of work to replace several ageing computer systems and introduce an electronic document and records management system (EDRMS). The first phase in implementation of the Desire2Learn online teaching and learning environment (OTLE) was completed during term 1, enabling the development of two fully-online courses designed for delivery through the OTLE NCEA level one digital technology and te reo Māori and the migration of support material for around 30 other courses from the legacy Blackboard system, ready for use in The EDRMS was successfully launched mid-year. Work to implement the new student management system, the most substantial of the three systems projects, continued throughout the year. This multi-million dollar project will put in place a single student management system that brings together the functionality of four systems, rationalises a number of divergent business practices, improves data integrity and provides significantly better management reporting functionality. The earthquake that struck Canterbury in September 2010 impacted on staff and students across the Southern region, but in particular our staff based in the Christchurch central business district. Staff worked hard to ensure our students were not disadvantaged, while our facilities and IT teams did everything they could to get the office back up and running again. Writing this now in March 2011, the events of six months ago were just a preamble to a devastating earthquake that has changed the face of Christchurch and will impact on its residents for many years to come. Our thoughts are with everyone who has been affected by the February earthquake. MIKE HOLLINGS CHIEF EXECUTIVE 05 06

7 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 03 GOVERNANCE TE POARI WHAKAHAERE 03 TE POARI WHAKAHAERE GOVERNANCE is governed by a Board of Trustees, the composition of which is determined by the Minister of Education in accordance with section 95 of the Education Act The Board was appointed by Gazette notice on 30 September 2004, which stated that it was to be constituted by a chairperson and up to six members appointed by the Minister of Education. During 2009 two new members joined the Board and five incumbent members were reappointed. John Nisbet, a Te Kura staff member first elected in June 2009, was reelected in June The Board is supported by the Risk Assurance Committee and the Employers Committee, which between them deal with much of the detailed work prior to consideration by the Board. The following table details the term of office for each current Board member: NAME TERM EXPIRES Patricia McKelvey (Chair) reappointed September 2009 September 2011 Wayne Bainbridge reappointed September 2009 September 2012 Don Blakeney appointed May 2009 September 2012 Roger Drummond reappointed September 2009 September 2011 Carol Moffatt reappointed September 2009 September 2012 John Nisbet (Te Kura staff member) elected June 2010 June 2013 Nori Parata reappointed September 2009 September 2012 Jacky Stafford appointed May 2009 September 2012 Roger Taylor (Deputy Chair) reappointed September 2009 September 2011 The Board is supported by the following two committees: Risk Assurance Committee Roger Taylor (Chair) Roger Drummond Carol Moffatt John Nisbet Patricia McKelvey (ex officio) Employer Committee Roger Drummond (Chair) Wayne Bainbridge Nori Parata Patricia McKelvey (ex officio) 07 08

8 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 04 OUR STUDENTS AND COMMUNITY Ā MĀTOU ĀKONGA TŌ MĀTOU HAPORI 04 Ā MĀTOU ĀKONGA TŌ MĀTOU HAPORI OUR STUDENTS AND COMMUNITY is New Zealand s largest provider of distance education in the early childhood and compulsory education sectors. We also provide education programmes for adult learners returning to qualifications-based learning. Te Kura was established as the Correspondence School in 1922 to provide primary level education for 83 students living in remote areas. Expansion in 1929 allowed the extension of services to secondary students. Since then, the school has grown and developed to meet changing demands as our role in the national education system has evolved over time. The circumstances of Te Kura students are many and varied. This diversity is evident in terms of their age and ethnicity, location, educational need and level of support available to each student. In 2010 Te Kura had a cumulative roll of over 26,000 with around 15,000 students enrolled at any one time. While most are of secondary school age, our students range from pre-schoolers to senior citizens and live in all regions of New Zealand and overseas. Te Kura has a sizeable Māori community, with Māori students comprising approximately 30% of full-time primary and approximately 45% of full-time secondary enrolments. Our Māori Responsiveness Strategy recognises the need to engage, develop and support Māori learners to be successful and to do so in ways that support their identity as Māori. Te Kura must provide for the learning needs of all our students and address the expectations of their learning supervisors and whānau. While a small proportion of the roll still includes those who are geographically isolated, itinerant or living overseas, Te Kura students are increasingly those for whom a face-to-face school is not currently the best option. This includes students who have been alienated or excluded from a face-to-face school, those who have been referred by Group Special Education because they have psychological or psycho-social needs, young parents, and students who have been referred by Child, Youth and Family. Together, these students make up approximately 70% of our roll. Our focus is on working with students, their whānau and community to provide effective teaching and personalised learning. Te Ara Hou, an integrated learning programme for students in years 7 to 10, engages them in learning that is relevant and responsive to their individual needs. Our aim is that Student Education Plans (SEPs) are in place for all full-time students that record their agreed aspirational goals. Each SEP is developed through negotiation between the learning advisor, their student and supervisor. Regular review of a student s SEP measures progress made and provides the opportunity for setting new goals. Regionally-based event days for students are organised by staff who know their students and whānau, and the schools, agencies and community groups that are available to support students learning. These events help Te Kura students develop their practical work, and social and relationship-building skills within a local context. Parallel programmes for learning supervisors augment the skills they use when working with their students. Te Kura also has a substantial number of dual-enrolled students from primary and secondary schools, enrolled for curriculum access, adaptation or extension. Through these enrolments the school has developed solid working partnerships with most of the country s primary and secondary schools. Each of these partnerships is based on a Service Level Agreement (SLA) that formalises each party s responsibilities for the student s education. While early childhood enrolments encompass a diversity of lifestyle and socio-economic backgrounds, they continue to be drawn mainly from rural areas. Most of these students go on to attend their local primary school. Our roll includes a large number of young adult enrolments those aged 16 or over who have left school prior to enrolment with Te Kura. Students enrolled under this gateway may remain enrolled up to and including the end of the year in which they turn 19. In 2010 Te Kura d its support for young adult students by allocating any such students enrolled in two or more subjects to a learning advisor for ongoing pastoral support

9 04 OUR STUDENTS AND COMMUNITY CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS ENROLMENT TYPE 2010 STUDENT CUMULATIVE *ENROLMENTS ENROLMENT CATEGORY Early childhood 949 Full-time Year Full-time 577 Dual 34 Fee payer Year Full-time 3650 Dual 92 Fee payer Year Full-time Adults 8105 Department of Corrections (adults) 7521 Dual 158 Fee payer 942 Total Including 4263 Young Adult enrolments *These figures represent cumulative enrolments throughout 2010, not a count of students. FUNDING AND ENROLMENT Te Kura is funded by way of an annual grant from the Ministry of Education in accordance with section 81A of the Education Act Funding is based on student engagement. The resourcing notice from the Ministry of Education stipulates the funding to be provided to the school. The enrolment of students is governed by sections 7 and 7A of the Education Act The enrolment policy is agreed between the Ministry of Education and the Board of Trustees and is published by Gazette notice. Students who meet the policy criteria may enrol as government-funded students. Other students may enrol as fee-paying students in some enrolment categories. ORGANISATIONAL STRUCTURE Te Kura is organised into three wahanga Learning Delivery, Design and Quality, and Capability Services each led by a Deputy Chief Executive (DCE) reporting to the Chief Executive. Learning Delivery is responsible for the school s teaching and learning and for students in-region pastoral support. This wahanga is organised into four regional, cross-disciplinary teams that are aligned with the Ministry of Education regional offices Northern, Central North, Central South and Southern to promote greater collaboration with the Ministry at a regional level. Teachers work in multidisciplinary teams to promote better understanding and engagement with students, creating an environment conducive to improved student achievement. Learning Delivery s responsibilities also include early childhood teaching and learning. The Design and Quality wahanga supports effective teaching through curriculum leadership and development and has schoolwide responsibility for the assessment of years 1 to 13 students and for leading, developing and coordinating e-learning. It also has responsibility for the distribution of learning materials to Te Kura students. Capability Services provides the school s corporate support structure. Its functions include enrolment services, facilities and procurement, finance, human resources, information resources and organisational performance, planning and reporting. The Chief Executive and the Board are supported by the Chief Advisor in the Chief Executive s office. Together, the Chief Executive, the three DCEs and the Chief Advisor make up the Senior Leadership Team, with individual and collective responsibility for achieving the objectives and outcomes of the annual plan. Each senior manager has accountability for specific areas of activity, management of resources and leadership of people and projects. DEPUTY CHIEF EXECUTIVE, LEARNING DELIVERY CHIEF EXECUTIVE DEPUTY CHIEF EXECUTIVE, DESIGN AND QUALITY DEPUTY CHIEF EXECUTIVE, CAPABILITY SERVICES CHIEF ADVISOR TO CHIEF EXECUTIVE AND BOARD EQUAL EMPLOYMENT OPPORTUNITIES (EEO) PROGRAMME The school reports annually to the Board of Trustees on its EEO programme, providing a snapshot of staffing at Te Kura at the end of each calendar year. This ongoing reporting supports identification of trends and appropriate responses. The format of the Equal Employment Opportunities Trust toolkit guides elements of the report, which includes information on gender, age and ethnicity of Te Kura staff. The report excludes data on teacher aides, relief teachers, temporary employees and contractors. Such staff are generally employed for very short periods of time and including their data would disproportionately affect the information presented. The total number of permanent and fixed term staff at 31 December 2010 is 523. The average age of staff at Te Kura is 50, compared to 48 in 2009, with the median age remaining at 53. The age of the school s workforce is generally older than the New Zealand workforce. This could be attributable to the previous practice of employing teaching staff who have demonstrated significant experience in a classroom environment. As in 2009, there is little difference between the age distribution of male and female employees. The school s employee gender mix is 71% female and 29% male. The general workforce gender mix in New Zealand is more balanced, being 51% female and 49% male. There is little difference in the percentage distribution of permanent job offers at Te Kura made to males or females, with more than 75% of staff employed on a permanent basis. Te Kura does not currently require employees to provide ethnicity information and therefore the data included in the report is based on information relating to 75% of current permanent and fixed term staff. Te Kura aims to have the ethnic profile of its employees match as far as practicable the enrolled student ethnic profile. Where Te Kura staff have reported their ethnicity the report shows 7% of staff recorded as Māori. This is in contrast to the recorded ethnicity of all Te Kura students, where over 30% identify as Māori. The ethnic diversity of Te Kura employees is a reasonable match with the general New Zealand workforce, although all the minority groups are slightly underrepresented. LOCATION AND REGIONAL SERVICES The school s Wellington operations are housed in two separate sites in Thorndon and one in the central city, with a complex inventory, distribution and delivery system for student learning materials managed from the school s warehouse in Petone. Te Kura is also represented in regional offices in Auckland, Christchurch and Hamilton, which provide a base for the region s kaiārahi, local liaison teachers and a number of subject teachers. The regional managers for Northern and Central North are also based in the regional offices. Regional managers and kaiārahi are the key contacts for stakeholders in the regions. To support our fulltime students they work with communities, non-government and government agencies and lead the development of new relationships in the region. Relationship coordinators in each region work with dual-education providers

10 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 05 STRATEGIC CONTEXT TE HOROPAKI RAUTAKI 05 OUR STRATEGIC DIRECTION The strategic plan for Te Kura outlines our strategic direction over the three year period This annual report is against year one of the strategic plan, as reflected in our 2010 charter and annual plan. The intent of the strategic plan comprises our: potential, talents and strengths, meet their particular mix of requirements and are tailored to ensure they have the opportunity to succeed in their learning and future careers. Our medium-term strategic direction is centred on three overarching and integrated strategic goals, which are the focus of everything we do, within the context of teaching and learning as core delivery for the school: Vision Our students achieve their potential Student Presence Student Engagement Student Achievement TE HOROPAKI RAUTAKI STRATEGIC CONTEXT Purpose Strategic theme We provide our students with anytime, anywhere personalised learning Students first The Students First theme conveys our application of the concepts of teaching one student at a time and one size fits one. The theme also complements the focus on personalised learning encompassed within our purpose. The theme reflects the place of students, their values, context and needs at the centre of all teaching and learning experiences. Students, together with their families, whānau and teachers, are actively involved in creating their own personalised learning pathways and career plans. These recognise their unique Underpinning the three strategic goals are three strategic priorities, which are the key strategic changes we aim to deliver over the term of the strategic plan. The strategic priorities will guide the development of the key initiatives that will be implemented through our annual planning. The plan also includes three significant enabling strategies which highlight the key things we need to do across Te Kura to support the achievement of our strategic goals and priorities, and the core delivery of teaching and learning. These cut across every aspect of the school s work and will be the foundation stones for our future success. Our strategic framework is summarised in the strategy map that follows. STRATEGIC GOALS STRATEGIC PRIORITIES KEY ENABLERS The key thing that we need to deliver in order to achieve our vison. STUDENT ACHIEVEMENT Students achieve their educational and personal goals, enabling them to participate effectively as members of their communites. STUDENT PRESENCE Students are ready and able to learn and have personalised learning progarmmes that reflect their goals, aspirations and context. The key changes we want to make over the term of this plan towards achieving our goals. Fully integrated regional teaching and support services for full-time students. Authentic and engaging learning experiences for full-time students. A distinct service delivery model for dual students targeted at their specific needs. The things we need to do right across the school to support and enable achievement of our goals and priorites. Engage, develop and support Māori learners to succeed as Māori. Become a leader in e-learning and utilise technology effectivly throughout the school. Ensure our people, systems and processes are adaptive, responsive and capable of achieving our goals. STUDENT ENGAGEMENT Students are positively engaged in their learning and feel connected to, and supported by, the school and their own communities

11 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 06 MĀORI RESPONSIVENESS STRATEGY TE RAUTAKI URUPARE KI NGĀ AKONGA MAORI 06 TE RAUTAKI URUPARE KI NGĀ AKONGA MAORI MĀORI RESPONSIVENESS STRATEGY 2010, we aligned our Māori Responsiveness Strategy with Ka Hikitia Managing for Success: the Māori Education Strategy We aligned our work programme so that a significant focus was made to engage, develop and support Māori learners to succeed as Māori. The strategy s key actions and intermediate outcomes concentrate on the four focus areas from Ka Hikitia of: Foundation Years Young People Engaged in Learning Māori Language Education Organisational Success. Māori learners cumulative enrolments 2010: 8,444 Māori learners (representing 32.3% of total cumulative enrolments) 2,627 students were participating in Māori language education. Māori learners as a percentage of each enrolment category: 193 Māori learners participating in early childhood education (20%) 231 Māori learners participating as full-time primary students (26%) 1,496 Māori learners participating as full-time secondary students (47%) 268 Māori learners participating as primary dual students (27%) 3,774 Māori learners participating as secondary dual students (35%) 2,459 Māori learners participating as adult students (27%) > > 23 Māori learners participating as fee-paying students (8%). Te Kura was able to compile comprehensive data on the achievement of Māori students in 2010, including NCEA results, literacy and numeracy achievement and achievement against the National Standards that provided an evidence base for planning. We still see that Māori students continue to achieve at lower levels than non Māori. All teaching staff at Te Kura have used the data in their team plans, where they set specific goals and actions for Māori student achievement. Our regional teams had a focus in 2010 on: implementing the stakeholder management plan to participation in early childhood education through relationships with Iwi monitoring Māori student participation in the Authentic Learning programme building relationships with local Māori and hapu to deliver educational outcomes, such as Mangatawa Trust > > developing relationships and partnerships with agencies with a focus on Māori students, such as Child, Youth and Family and Te Runanga o Te Whānau a Apanui. Significant work has been focused on writing and designing Te Kura learning resources so that they are contextualised for Māori learners. A set of development indicators developed in 2009 was used for developing resources for years Building our staff capability in Mātauranga, Māori language, relationships and partnerships with Iwi, hapū, whānau and Māori education pedagogy was continued through staff participation in a whole school professional development programme. This has provided us with a professional development programme in 2011 that is specifically focused on a one size meets one programme. In 2010, Te Kura was asked to present a submission to Te Paepae Motuhake outlining our contribution to Māori language revitalisation and outcomes. Te Kura provided a comprehensive analysis on participation, engagement and achievement of our Māori students. We also provided some tangible solutions for future focused outcomes for Māori language that were well received by the panel. Our first totally online te reo Māori programme was designed and developed in partnership with Auckland University of Technology to be implemented across Aotearoa in

12 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 07 STATEMENT OF SERVICE PERFORMANCE TE TAUAKI WHAKATUTUKITANGA RATONGA 07 Ministry of Education s Resourcing Notice 2010 defines the resourcing entitlement for Te Kura for the 2010 school year and establishes the processes for the school to access this funding. The resourcing provided is for early childhood and years 1 13 students eligible under the school s gazetted 2010 enrolment policy to receive government funding. The required outputs consist of direct service provision for those students. TE TAUAKI WHAKATUTUKITANGA RATONGA STATEMENT OF SERVICE PERFORMANCE In terms of the 2010 Resourcing Schedule, the services comprise: > > Early childhood education > > Full-time education services to years 1 13 students > > Curriculum services for years 1 13 dual-enrolled students > > Supplementary 0.1/0.2 services for full-time, years 1 13, ORRS-verified students > > On-payment of the supervisors allowance to eligible supervisors of the school s full-time students. The school s report against these targets is presented below. OUTPUTS PERFORMANCE TARGETS SERVICE DELIVERED 1. Early childhood education 2. Years 1 13 full-time education services Deliver early childhood education to pre-school students Deliver full-time education services to years 1 8 students Te Whāriki programmes delivered to: 949 early childhood students, of whom 193 (20%) were Māori Programmes required by the National Education Guidelines, the New Zealand Curriculum Framework and the school curriculum delivered to: 897 full-time primary students, of whom 630 (70%) were access enrolments 263 (29%) were referral enrolments 231 (26%) were Māori 263 (29%) were at risk of not achieving their potential Deliver full-time education services to years 9 13 students Programmes required by the National Education Guidelines, the New Zealand Curriculum Framework and the school curriculum delivered to: 3210 full-time secondary students, of whom 1006 (31%) were access enrolments 2203 (69%) were referral enrolments 1496 (47%) were Māori 2467 (77%) were at risk of not achieving their potential 8105 adult enrolments, of whom 5206 (64%) were young adult enrolments 17 18

13 07 STATEMENT OF SERVICE PERFORMANCE CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS OUTPUTS PERFORMANCE TARGETS SERVICE DELIVERED OUTPUTS PERFORMANCE TARGETS SERVICE DELIVERED 3. Years 1 13 dual enrolment education services Deliver dual enrolment curriculum services to years 1 8 students Deliver dual enrolment curriculum services to years 9 13 students Programmes required by the National Education Guidelines, the New Zealand Curriculum Framework and the school curriculum delivered to: 1000 years 1 8 students enrolled at other primary schools, of whom 268 (27%) were Māori 152 (15%) were gifted and talented 100 (10%) were enrolled at a Health School 7 (1%) were enrolled for technology courses 39 (4%) were enrolled to maintain/gain qualifications in te reo Māori Programmes required by the National Education Guidelines, the New Zealand Curriculum Framework and the school curriculum delivered to: 5. On-payment of the supervisors allowance to eligible supervisors of the school s full-time students Make on-payments and reconciliations that are correct, to time and within agreed criteria. Provide to the Ministry a verified student roll and supervisor eligibility return. The June payment can be against a projected roll and eligibility return. The December return must fully reconcile projected and actual results for that school year. The school paid the supervisors allowance to supervisors on behalf of the Ministry. Payments Costs () Payments Costs () June December Total In addition, four payments (totalling ca $1,300) for 2009 supervision were made in 2010, and 606 payments (totalling ca $218,000) for 2009 supervision were reversed in Forecast and reports provided to the Ministry as required years 9 13 students enrolled at other secondary schools, of whom 3774 (35%) were Māori 1381 (13%) were at risk of not achieving their potential 74 (1%) were gifted 832 (8%) were enrolled at a Health School 4. Years 1 13, 0.1/0.2 ORRS supplement Deliver supplementary 0.1/0.2 services for full-time years 1 13 ORRS-verified students Supplementary services delivered to: 104 ORRS-verified students Breakdown of year levels of students: Years 1 8 = 39 Years 9 13 = 52 Years 14+ = 13 (Years 14 and 15 accommodate students who remain on the special education roll until the age of 21.) Access to additional teacher assistance was provided for 71 of these students: 45 with high needs (0.1) and 26 with very high needs (0.2), while teacher aide support was provided for 65 students

14 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 08 ACHIEVEMENTS NGĀ MAHI KUA OTI Te Kura continued to focus its achievement towards improving student presence, engagement and achievement. The report that follows measures our performance against the strategic goals within our Charter and Annual Plan. The activities and measures contributing to these goals are summarised below. STUDENT ACHIEVEMENT NGĀ MAHI KUA OTI ACHIEVEMENTS Unfortunately we are unable to report our student achievement results for 2010 because this information was still being analysed at the time of publication. A full analysis of our achievement results will be published on the school's website as soon as it is available. STUDENT PRESENCE The school s focus on improving student presence during 2010 has ensured that students are enrolled promptly and are able to start their learning as soon as is practicable. Continual refinement to our enrolment processing has resulted in d numbers of students being enrolled according to set targets. We are pleased to report that 90% of students were enrolled within 10 working days, a 6% on results reported in We also included a new performance measure for 2010 to track the time span for dispatching learning resources to students once their enrolment had been processed. We are pleased to report that our Student Resource Centre dispatched 94% of learning resources within five working days of receipt of orders, which is higher than the initial standard set of 93%. We will continue to work on streamlining our processes to ensure that our students are ready and able to commence their learning as quickly as possible. STUDENT ENGAGEMENT We continued with the progression of the school s e-learning strategy and the implementation of our new Online Teaching and Learning Environment (OTLE). To support this, the focus during 2010 was on rewriting teaching and learning resources for online delivery and staff training and testing of the new teaching and learning environment ready for the start of We deferred running the student engagement survey during 2010 to review how we could best measure student engagement levels. In 2011 we plan to have new reports available through the new Student Management System which will provide richer data for tracking engagement levels throughout the year and not just at one point in time. CAPABILITY MANAGEMENT Te Kura met all compliance and audit requirements, and has operated within budget limits for The teacher professional development programme was completed during 2010 with priorities around National Standards (covering literacy and numeracy for years 1 to 8), Information and Communications Technology (ICT), and the Māori Responsiveness Strategy. The engagement levels of staff did not show an in 2010 compared to 2009 as seen in the results from the staff engagement survey. As a result, a greater focus will be given to team action planning during 2011 to improve engagement levels

15 08 ACHIEVEMENTS CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS STRATEGIC GOAL STRATEGIC GOAL Student achievement: Students achieve their educational and personal goals, enabling them to participate effectively as members of their communities. Student presence: Students are ready and able to learn and have personalised learning programmes that reflect their goals, aspirations and context. STANDARD 2010 STANDARD 2010 KEY PERFORMANCE MEASURES FOR 2010 ALL STUDENTS MĀORI NON- MĀORI OUTCOME EXPLANATION KEY PERFORMANCE MEASURES FOR 2010 ALL STUDENTS MĀORI NON- MĀORI OUTCOME EXPLANATION 1. An in the percentage of all full-time students in years 1 to 10 achieving at or above the expected curriculum levels in literacy. 2. An in the percentage of all full-time students in years 1 to 10 achieving at or above the expected curriculum levels in numeracy. 3. Increase in the average number of NCEA credits gained by years 11 to 13 full-time secondary students and young adults enrolled in four or more NCEA courses. 3% 3% 3% Information not available at the time of publication. Information not available at the time of publication. Information not available at the time of publication. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. 8. Enrolments are processed as quickly as possible. 9. Revised student education programme (SEP) policies and procedures are in place. 10. Students learning resources are dispatched within 5 working days of being ordered. 8 of all students are enrolled within 10 working days of receipt of enrolment documents Achieved 90% of all enrolments were approved and processed within 10 working days. In place by the end of Term 2, 2010 Partially achieved Reviews of the Personalising Learning policy and the Student Education Plan policy were extended until July 2011 to allow further alignment with development work underway to implement authentic learning. 93% of orders Achieved 94% of orders were dispatched within 5 working days of receipt. 4. Decrease in the percentage of years 11 to 13 full-time secondary students leaving Te Kura, as their last school, with no qualifications (excluding young adults). 5. Increase in the percentage of year 11 full-time secondary students achieving 8 or more NCEA level 1 numeracy credits. 6. Increase in the percentage of year 11 full-time secondary students achieving 8 or more NCEA level 1 literacy credits. 7. Increase in the percentage of full-time secondary students and young adults achieving NCEA levels 1, 2 and 3 compared to decrease 3% decrease 3% 3% 3% decrease Information not available at the time of publication. Information not available at the time of publication. Information not available at the time of publication. Information not available at the time of publication. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. 11. An improvement in the return rate of asttle tests. 12. The percentage of dualenrolling schools and learning centres reporting confidence in the working relationship established via the SLA signed with Te Kura. 13. The percentage of dualenrolling schools and learning centres reporting confidence that Te Kura has effective and efficient systems and processes for enrolling their students in courses appropriate to the students learning needs. 10% Not achieved At least 70% of responding schools At least 70% of responding schools The percentage has gone down by between 1% and 3%. Achieved 77% of dual-enrolling schools responding to the survey reported confidence in the working relationship with Te Kura. Achieved 80% of dual-enrolling schools responding to the survey reported confidence in the enrolment system and that students were enrolled in courses appropriate to their needs

16 08 ACHIEVEMENTS CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS STRATEGIC GOAL Student engagement: Students are positively engaged in their learning and feel connected to, and supported by, Te Kura and their own communities. STANDARD 2010 KEY PERFORMANCE MEASURES FOR An in the response rate of supervisors to the student engagement survey. 15. An in the engagement levels of supervisors as measured by the student engagement survey. 16. An in the response rate of students to the student engagement survey. 17. An in the engagement levels of students as measured by the student engagement survey. 18. An over baseline in the number of students retained for half a year or longer, other than those who return to a face-to-face school. ALL STUDENTS 4% 4% 4% 3% 3% STANDARD 2010 MĀORI 4% 4% 4% 4% 3% NON- MĀORI 4% 4% 4% 3% 3% OUTCOME Deferred until 2011 Partially achieved 84% of full-time students remained engaged. This was a slight of 0.1% against Nearly 80% of full-time Māori students remained engaged. This was a decrease of 2. against % of full-time non-māori students remained engaged. This was a against EXPLANATION The school has reviewed how it measures student engagement and from 2011, existing data and reports will be used to track levels of student engagement. The student engagement survey was not run in 2010 and is under review. The student engagement survey was not run in 2010 and is under review. The student engagement survey was not run in 2010 and is under review. These calculations include students who enrolled after July but who were still enrolled at the end of the year, and any full-time students who withdrew as fulltime students but reenrolled as young adults. KEY PERFORMANCE MEASURES FOR The percentage of dualenrolling schools and learning centres that report familiarity with and support for the respective responsibilities of the host school and Te Kura, and report satisfaction with the progress of their students Te Kura-provided learning. 20. The percentage of dualenrolling schools and learning centres that initiate contact with the Te Kura teachers of their students to an approved Te Kura level. 21. The percentage of Te Kura teachers of dualenrolled students that report satisfaction with the level of host school-initiated contact about the progress of their students learning. 22. An in the percentage of full-time secondary students eligible to achieve NCEA level 1 at year An in the percentage of full-time secondary students eligible to achieve NCEA level 2 at year An in the percentage of full-time secondary students eligible to achieve NCEA level 3 at year 13. ALL STUDENTS MĀORI NON- MĀORI At least 70% of responding schools At least 70% of responding schools At least 70% of responding teachers 3% 3% 3% OUTCOME Achieved 74% of dual-enrolling schools responding to the survey reported familiarity with the respective responsibilities of Te Kura and the school. 7 of dual-enrolling schools responding to the survey reported satisfaction with their students progress with Te Kura. Achieved 85% of dual-enrolling schools responding to the survey initiate contact to an approved Te Kura level. Largely achieved 69% of Te Kura teachers of dual-enrolled students reported satisfaction with the level of host school-initiated contact about the progress of their students learning. Information not available at the time of publication. Information not available at the time of publication. Information not available at the time of publication. EXPLANATION A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. A full analysis of student achievement for 2010 will be published on the school's website. 25. A greater number of students participate in e-learning, following the implementation of the Online Teaching and Learning Environment (OTLE). An in the number of students participating in online learning is reported during Not applicable The Online Teaching and Learning Environment (OTLE) went live in January

17 08 ACHIEVEMENTS CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS CAPABILITY MANAGEMENT KEY PERFORMANCE MEASURES FOR 2010 STANDARD 2010 PROGRESS STATUS EXPLANATION KEY PERFORMANCE MEASURES FOR 2010 STANDARD 2010 PROGRESS STATUS EXPLANATION 26. A whole of school professional development (PD) plan , targeting teaching and professional development resources to support literacy and numeracy excellence, is finalised. 27. Evaluations of professional development show that staff have found the professional development opportunities to be useful and relevant to improving teaching quality. 28. The coverage and frequency of training of the Navision financial system is widened. 29. An improvement in response rate to the staff engagement survey. Meeting the requirements for reporting literacy and numeracy progress for years 1 to 8 Professional development validation surveys return an average score of 3 (out of 5) or better Evaluation of the training programmes seeking an average score of 3 (out of 5) or better on surveys returned Achieved The teacher professional development programme for reporting literacy and numeracy progress of years 1 to 8 students was conducted throughout Achieved Validation surveys returned an average score range of out of 5. Achieved 3% Not achieved The Navision training was widened to deliver one-on-one training sessions during % of staff responded to the Gallup survey compared with 85% in Due to the ad-hoc nature of the training delivery, surveys were not used to evaluate the training. Although the target was not achieved the response rate remains high. Additional efforts are being made to lift the response rate in Te Kura assets are well-managed and updated according to the replacement cycle. 33. Enrolment Services is sufficiently resourced to answer all calls successfully; with abandonment level no greater than 3%. 34. Te Kura will comply with all statutory, regulatory and audit requirements and the school s policies and procedures. 35. All staff Performance Development and Achievement (PDA) plans will be in place, reviewed and completed in accordance with PDA procedures. The asset replacement policy is adhered to Report on ring time, response time, waiting time, abandonment level and other relevant indicators quarterly to Board Te Kura receives an unqualified opinion from Audit NZ. No incidents of imprudence or non-compliance with legislation arise that may compromise the Board or stakeholders All PDAs completed by the end of the school year Achieved The asset replacement policy was adhered to. Achieved The Board received quarterly reports on response rates to calls; with an abandonment rate of 1% recorded. Achieved Achieved 30. An improvement in engagement levels by Te Kura staff as represented through the staff engagement survey Grand Mean result and percentile rating across other New Zealand state sector organisations. 1.5% in the school s Grand Mean score 6% in the school s percentile ranking against other New Zealand state sector organisations Not achieved The school s Employee Engagement Grand Mean score for 2010 was 3.64 compared with 3.66 in A comparison with Gallup s worldwide educational services database revealed Te Kura ranking in the 25th percentile compared with the 33rd percentile in An education sector database was considered more relevant and comparable to Te Kura. 31. Te Kura achieves its operating and capital budget targets within variance acceptable to the CE and Board. Each wahanga will operate within its approved budget Achieved Te Kura has operated well within its budget limits for

18 NGĀ PURONGO PUTEA FINANCIAL STATEMENTS CON TENTS 9a STATEMENT OF RESPONSIBILITY 31 9b STATEMENT OF COMPREHENSIVE INCOME 32 9c STATEMENT OF FINANCIAL POSITION 33 9d STATEMENT OF CHANGES IN EQUITY 34 9e STATEMENT OF CASH FLOWS 35 9f STATEMENT OF COMMITMENTS 36 9g STATEMENT OF CONTINGENT 37 LIABILITIES AND CONTINGENT ASSETS 9h NOTES TO THE FINANCIAL STATEMENTS 38 9i AUDIT REPORT

19 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 9a STATEMENT OF RESPONSIBILITY FOR THE YEAR ENDED 31 DECEMBER b STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2010 are the financial statements of Te Aho o Te Kura Pounamu (Te Kura) for the year ended 31 December These are prepared in accordance with the requirements set out in section 87 of the Education Act 1989 and in section 155 of the Crown Entities Act The Chief Executive Officer and the School's Board of Trustees accept responsibility for the preparation of the annual financial statements and the judgements used. The Board and Management accept responsibility for establishing and maintaining systems of internal control designed to provide reasonable assurance as to the integrity and reliability of the financial reporting of Te Kura. In the opinion of the Board and Management, the annual financial statements for the financial year fairly reflect the financial position and operations of Te Kura. REVENUE NOTES Government Funding 43,629 44,284 41,775 Government Funded Initiatives 3 2,873 2,700 2,778 Tuition Fees Finance Income Donations Miscellaneous The financial statements have been authorised for issue by: TOTAL REVENUE 48,685 48,886 46,855 EXPENDITURE Personnel 5 37,361 37,181 32,927 Operating Costs 6 11,989 12,374 10,992 Finance Costs Depreciation and Amortisation 21, 22 1,733 1,956 1,240 PATRICIA MCKELVEY CHAIR 6 April 2011 (Gain) on Sale of Assets 13 (2) 0 (3) TOTAL EXPENDITURE 51,100 51,541 45,161 NET (DEFICIT)/SURPLUS FOR THE YEAR (2,415) (2,655) 1,694 Other Comprehensive Income TOTAL COMPREHENSIVE INCOME FOR THE YEAR: (2,415) (2,655) 1,694 MIKE HOLLINGS CHIEF EXECUTIVE OFFICER 6 April 2011 The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements

20 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 9c STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER d STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2010 NOTES NOTES Retained Earnings 15,139 15,185 17,554 Other Reserves TOTAL EQUITY 15,199 15,245 17,614 Represented by: CURRENT ASSETS Cash and Cash Equivalents 14 6,639 2,632 1,301 Inventory Held for Distribution 1,250 1,345 1,345 Prepayments GST Receivable 66 (0) 344 Other Financial Assets ,549 EQUITY AT THE START OF THE YEAR Restricted Reserve Asset Revaluation Reserve Retained Earnings 17,554 17,840 15,860 ADD 17,614 17,900 15,920 Total Comprehensive Income for the year (2,415) (2,655) 1,694 EQUITY AT THE END OF THE YEAR 24 15,199 15,245 17,614 Equity includes an asset revaluation reserve of $10,000 (2009: $10,000). This balance is attributable to art works held by Te Kura which were revalued in This did not result in a change to the asset revaluation reserve. Accounts Receivable 16 1, TOTAL CURRENT ASSETS 9,822 5,240 14,812 CURRENT LIABILITIES Creditors and Other Payables 17 3,934 2,612 3,046 Employee Entitlements 19 2,714 1,640 1,786 Revenue in Advance Provisions TOTAL CURRENT LIABILITIES 7,193 4,710 5,290 WORKING CAPITAL 2, ,522 NON-CURRENT ASSETS Fixed Assets and Work in Progress 21 5,810 8,248 5,767 Intangible Assets and Work in Progress 22 7,125 6,873 2,732 TOTAL NON-CURRENT ASSETS 12,935 15,121 8,499 NON-CURRENT LIABILITIES Employee Entitlements Provisions TOTAL NON-CURRENT LIABILITIES NET ASSETS 15,199 15,245 17,614 The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements. The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements

21 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 9e STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER f STATEMENT OF COMMITMENTS AS AT 31 DECEMBER 2010 CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Government Funding 47,988 47,786 46,291 Fees and Charges Miscellaneous Interest Cash was applied to: 49,227 48,964 47,817 Payments to Employees (34,986) (34,152) (31,246) Payments to Suppliers (13,666) (15,412) (11,969) Net GST paid * (260) (48,375) (49,288) (43,475) NET CASH INFLOW FROM OPERATING ACTIVITIES (NOTE 25) 852 (324) 4,342 CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Receipts from Sale of Investments ** 24, ,649 Proceeds from Sale of Assets Cash was applied to: 24, ,691 Purchase of Assets (2,826) (5,253) (2,394) Purchase of Intangible Assets (1,526) 0 (10) Acquisition of Investments ** (13,770) 0 (23,549) Work in Progress (1,715) (3,641) (3,451) (19,837) (8,894) (29,404) NET CASH OUTFLOW FROM INVESTING ACTIVITIES 4,486 (8,894) (8,713) NET INCREASE/(DECREASE) IN CASH HELD 5,338 (9,218) (4,371) Add cash and cash equivalents at the beginning of the year 1,301 11,850 5,672 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 6,639 2,632 1,301 * The Net GST paid component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The net GST paid component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes. ** The Acquisition and Receipts from Sale of Investments reflects the reinvestment of term deposits with trading banks. The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements. Property lease commitments: Not later than one year 957 1,145 Later than two years and not later than five years 742 1,412 Later than five years TOTAL 2,573 2,795 Equipment lease commitments: Not later than one year Later than two years and not later than five years 0 7 Later than five years 0 0 Total The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements

22 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 9g STATEMENT OF CONTINGENT LIABILITIES AS AT 31 DECEMBER h NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Total contingent liabilities 0 0 9g STATEMENT OF CONTINGENT ASSETS AS AT 31 DECEMBER Total contingent assets GENERAL INFORMATION Te Aho o Te Kura Pounamu (Te Kura) is a New Zealand domiciled state school within the meaning ascribed to that term by the Education Act 1989 (the Act). The reporting entity is that entity known as Te Aho o Te Kura Pounamu, identified by the Te Kura School Charter and governed by the Te Kura Board of Trustees, and includes all activities carried out in the name of Te Kura. Te Kura changed its logo and branding of its Māori name to Te Aho o Te Kura Pounamu. The Secretary of Education gave his formal consent to the name change and the Board passed a resolution confirming the name change. The primary objective of Te Kura is to provide services to the community for social benefit rather than making a financial return. Accordingly, Te Kura has designated itself as a public benefit entity for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements of Te Kura are for the year ended 31 December The financial statements were authorised for issue by the Board of Trustees on 6 April SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with NZIFRS and other applicable Financial Reporting Standards as appropriate for public benefit entities. (b) BASIS OF PREPARATION The financial statements have been prepared on the historical cost basis modified by the revaluation of artworks and certain financial instruments. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars (). The functional currency of Te Kura is New Zealand dollars. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in the Statement of Comprehensive Income. (c) REVENUE RECOGNITION Revenue is measured at the fair value of the consideration received or receivable. > > Donations and other gratuities Donations and other gratuities are recognised as revenue at the point when Te Kura formally acknowledges receipt. Revenue is measured at the fair value of consideration received. > > Government funding Te Kura receives Government grants to supply education services to eligible students. Revenue is recognised as the services are delivered to students based on either the number of students on the roll for each funding period or specific service delivery. Revenue is measured at the fair value of consideration received. > > Interest Interest income is accrued using the effective interest rate method. The effective interest rate exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset s net carrying amount. The method applies this rate to the principal outstanding to determine interest income each period. > > Tuition fees Tuition fees are received from students who are ineligible for Government funding for the supply of education services. Revenue is recognised at the point of student enrolment unless the enrolment is for the following year. Revenue is measured at the fair value of consideration received. (d) INCOME TAX The Income Tax Act states that public authorities, including schools, are exempt from income tax. Accordingly, no charge for income tax has been provided for. (e) LEASES All leases held by Te Kura are operating leases. Operating leases, where the lessor substantially retains the risks and rewards of ownership, are recognised in a systematic manner over the term of the lease. Leasehold improvements are capitalised and the cost is amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter. Lease payments under an operating lease are recognised as an expense on a straight line basis over the term of the lease. The Statement of Accounting Policies and Notes to the Financial Statements on pages 38 to 64 form part of and are to be read in conjunction with the Financial Statements

23 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS (f) FINANCIAL INSTRUMENTS Financial assets and financial liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through profit or loss in which case the transaction costs are recognised in the Statement of Comprehensive Income. Purchases and sales of investments are recognised on tradedate, the date on which Te Kura commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Te Kura has transferred substantially all the risks and rewards of ownership. All financial assets held by Te Kura have been categorised as Loans and Receivables. At each balance date Te Kura assesses whether there is any (j) INVENTORIES Inventories held for distribution, or consumption in the provision of services, that are not issued on a commercial basis are measured at cost adjusted when applicable for any loss of service potential. Loss of service potential is recognised in the Statement of Comprehensive Income in the period when the write down occurs. (k) PROPERTY, PLANT AND EQUIPMENT Items of property, plant and equipment are initially recorded at cost. This includes the make good provision. Te Kura has estimated the cost of reinstatement of the leased buildings at the time the lease expires and discounted back to the present value. These have been classified as Make Good Leasehold Improvements in Note 21. Classes of property, plant and equipment that are revalued are revalued at least every five years or whenever the carrying amount differs materially to fair value. Revaluation is based on the fair value of the asset, with changes reported by class of asset. Unrealised gains and losses arising from changes in the value of property, plant and equipment are recognised as at balance date. To the extent that a gain reverses a loss previously charged to the Statement of Comprehensive Income for the asset class, the gain is credited to the Statement of Comprehensive Income. Otherwise, gains are credited to an asset revaluation reserve for that class of asset. To the extent that there is a balance in the asset revaluation reserve for the asset class any loss is debited to the reserve. Otherwise losses are reported in the Statement of Comprehensive Income. > > Amortisation Intangible assets are amortised on a straight line basis at rates calculated to allocate the cost or valuation of the asset, less any estimated residual value, over its estimated useful life. Typically, the estimated useful lives of different classes of intangible asset are as follows: Intangible assets (internally generated finite life) Intangible assets (externally acquired finite life) (m) IMPAIRMENT OF NON-FINANCIAL ASSETS 3 10 years 3 5 years Assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is objective evidence that a financial asset or group of financial assets is impaired. Financial assets are impaired where there is objective Any equipment or furniture with a cost value less than $2,000 is treated as expenditure rather than as an item of property, plant and > > Depreciation recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher evidence that as a result of one or more events that occurred after equipment. The value of an individual asset less than $2,000 which is Depreciation is charged on a straight-line basis at rates calculated of an asset s fair value less costs to sell and value in use. the initial recognition of the financial asset the estimated future cash part of a group of similar assets is capitalised. to allocate the cost or valuation of an item of property, plant and Value in use is the depreciated replacement cost for an asset flows of the investment have been impacted. The carrying amount of the financial asset is reduced by the impairment loss directly for > > Additions equipment, less any estimated residual value, over its estimated useful life. Typically, the estimated useful lives of different classes of where the future economic benefits or service potential of the asset are not primarily dependent on the asset s ability to generate net cash all financial assets with the exception of trade receivables where the The cost of an item of property, plant and equipment is recognised as property, plant and equipment are as follows: inflows and where the entity would, if deprived of the asset, replace carrying amount is reduced through the use of an allowance account. (g) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash in hand, cash in transit, bank accounts and deposits held at call with banks with a maturity of no more than three months as at 31 December (h) OTHER FINANCIAL ASSETS an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to Te Kura and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired for nil or nominal cost it is recognised at fair value as at the date of acquisition. > > Disposals Information and Communications Technology Equipment 3 5 years Education resources Library materials Furniture and fittings Leasehold improvements Motor vehicles Plant and equipment 5 years 5 years 5 years 5 years 5 years 10 years its remaining future economic benefits or service potential. The value in use for cash-generating assets is the present value of expected future cash flows. If an asset s carrying amount exceeds its recoverable amount the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, Other financial assets include deposits held at call with banks with a Gains and losses on disposals are determined by comparing the Make Good Leasehold improvements are depreciated over the the balance is recognised in the Statement of Comprehensive Income. maturity longer than three months as at 31 December proceeds with the carrying amount of the asset. Gains and losses on unexpired period of the lease or the estimated remaining useful lives For assets not carried at a revalued amount, the total impairment (i) LOANS AND OTHER RECEIVABLES disposals are included in the Statement of Comprehensive Income. When revalued assets are sold, the amounts included in asset of the improvements, whichever is shorter. The residual value and useful life of an asset is reviewed, and loss is recognised in the Statement of Comprehensive Income. The reversal of an impairment loss on a revalued asset is credited Loans and receivables are non-derivative financial assets with fixed or revaluation reserves in respect of those assets are transferred to adjusted if applicable, at each financial year-end. to the revaluation reserve. However, to the extent that an impairment determinable payments that are not quoted in an active market. Loans retained earnings. Capital work in progress and art works are not depreciated. loss for that class of asset was previously recognised in the Statement and receivables are initially measured at fair value plus transaction costs. They are subsequently measured at amortised cost using the > > Subsequent costs (l) INTANGIBLE ASSETS (SOFTWARE) of Comprehensive Income, a reversal of the impairment loss is also recognised in the Statement of Comprehensive Income. effective interest rate method, less any provision for impairment. Costs incurred subsequent to initial acquisition are capitalised only Intangible assets are initially recorded at cost. The cost of an internally For assets not carried at a revalued amount (other than goodwill) Loans and receivables issued with a duration of less than 12 when it is probable that future economic benefits or service potential generated intangible asset represents direct costs incurred in the the reversal of an impairment loss is recognised in the Statement of months are recognised at their nominal value, unless the effect of associated with the item will flow to Te Kura and the cost of the item development phase of the asset only. The development phase occurs Comprehensive Income. discounting is material. can be measured reliably. after the following can be demonstrated: technical feasibility; ability A provision for estimated irrecoverable amounts is recognised when there is objective evidence that the asset is impaired. The amount > > Revaluation to complete asset; intention and ability to sell or use; and development expenditure can be reliably measured. of the provision is the difference between the asset s carrying amount Art work is recorded at fair value based on the current market. A Acquired computer software licences are capitalised on the basis and the present value of estimated future cash flows, discounted valuation is carried out every five years. The appropriateness of the of the costs incurred to acquire and bring to use the specific software. using the effective interest method. Impairment losses are recognised valuation is assessed on an annual basis. Intangible assets with finite lives are subsequently recorded at in the Statement of Comprehensive Income. All other classes of property, plant and equipment are recorded at cost less any amortisation and impairment losses. Amortisation is cost, less accumulated depreciation and accumulated impairment losses. charged to the Statement of Comprehensive Income on a straight-line basis over the useful life of the asset

24 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS (n) CREDITORS AND OTHER PAYABLES Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. (o) EMPLOYEE ENTITLEMENTS > > Short term employee entitlements Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. These are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, and retiring and long service leave entitlements expected to be settled within 12 months. These benefits are recognised in the Statement of Comprehensive Income when they accrue to employees. > > Long term employee entitlements The liability for long-term employee entitlements such as long service leave and retiring leave is reported as the present value of the estimated future cash outflow. The calculations are based on: likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlements information; and the present value of the estimated future cash flows. (p) SUPERANNUATION SCHEMES > > Defined contribution schemes Obligations for contributions to defined contribution superannuation schemes are recognised as an expense in the Statement of Comprehensive Income. > > Defined benefit schemes Te Kura does not operate any defined benefit superannuation schemes. (q) PROVISIONS Te Kura recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. > > Reinstatement provision Te Kura has entered into lease agreements for various properties which require the school, at the completion of the lease, to return the building to the same condition as when the lease was first signed. The liability for the reinstatement provision is based on reasonable estimates of expenditure required to reinstate the premises. The other side of the provision has created an asset called Make Good Leasehold Improvements refer to 2 (k). > > Merit performance provision Te Kura reviews salaries and performance of all employees at the end of December. Recommendations are put forward to a Moderation panel for consideration. The liability for the merit provision is based on reasonable estimates of likely payments. Other liabilities and provisions are recorded at the best estimate of the expenditure required to settle the obligation. Liabilities and provisions to be settled beyond 12 months are recorded at their present value. (r) GOODS AND SERVICES TAX (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of Financial Position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of Cash Flows. Commitments and contingencies are disclosed exclusive of GST. (s) BUDGET FIGURES The budget figures are those approved by the Board of Trustees at the beginning of the year. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by Te Kura for the preparation of the financial statements. (t) CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS In preparing these financial statements Te Kura has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The following are the judgements and estimates that Te Kura has made in the process of applying the entity s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: > > Lease restatement provision: as described in Note 18 Te Kura has recognised a liability for the reinstatement provision based on reasonable estimates of expenditure required to reinstate the premises. > > Useful lives of property, plant and equipment and intangible assets: As described in Note 2 (k) and 2 (l) Te Kura reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. (u) CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES OF TE KURA Te Kura must exercise judgement when recognising grant income to determine if conditions of the letter of resourcing from the Ministry of Education have been satisfied. This judgement will be based on student enrolment and engagement data from the student management database. (v) CONTINGENT ASSETS AND CONTINGENT LIABILITIES Contingent assets and contingent liabilities are recorded in the Statement of Contingent Assets and Contingent Liabilities at the point at which the contingency is evident. Contingent liabilities are disclosed if the possibility that they will crystallise is not remote. Contingent assets are disclosed if it is probable that the benefits will be realised. (w) NOTIONAL LEASE Te Kura uses the Portland Crescent property which is owned by the Ministry of Education (MoE). MoE have advised that the notional revenue and the notional expense are to be recorded in the financial statements. The fair value assessment has been made by the Ministry of Education. (x) STANDARDS AND INTERPRETATION ISSUED AND NOT YET ADOPTED At the date of authorisation of these financial statements the following Standards and Interpretations, including those Standards or Interpretations issued by the International Accounting Standards Board (IASB) or International Financial Reporting Interpretations Committee (IFRIC) where an equivalent New Zealand Standard or Interpretation has not been approved, were in issue but not yet effective. NAME NZ IFRS 9 Financial Instruments NZ IAS 24 Related Party Disclosures (2009) EFFECTIVE FOR ANNUAL REPORTING PERIODS BEGINNING ON OR AFTER: 1 January January 2011 Te Kura expects to adopt the above Standards and Interpretations in the period in which they become mandatory. Te Kura anticipates that the above Standards and Interpretations will have no material impact on the financial statements of Te Kura in the period of initial application. There are no other standards and interpretations issued but not yet adopted that are expected to have an impact on Te Kura. (y) CHANGES IN ACCOUNTING POLICIES There have been no other changes to accounting policies

25 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 03. GOVERNMENT FUNDED INITIATIVES GOVERNMENT FUNDED INITIATIVES (CONT D) PAYMENTS TO SUPERVISORS Revenue 1,295 1,250 1,403 Expense 1,240 1,200 1, INFORMATION AND COMMUNICATIONS TECHNOLOGY PROFESSIONAL DEVELOPMENT Revenue Expense (99) (115) (141) GATEWAY Revenue Expense (14) (24) (21) KIWISPORT SPECIAL EDUCATION Revenue Expense TOTAL MINISTRY OF EDUCATION INITIATIVES Revenue Grants 1,997 1,998 2,056 Revenue Other ,873 2,700 2,778 Expense Ministry of Education Initiatives** 2,567 2,664 2,559 BALANCE Revenue received under the various Ministry Initiatives is spent in accordance with the rules set by the Ministry of Education for each initiative. **These expenses are part of Note 5 Personnel Costs and Note 6 Operating Costs. Revenue Expense ASSISTIVE TECHNOLOGY Revenue Expense ONGOING AND REVIEWABLE RESOURCING SCHEME (ORRS) Revenue Expense

26 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 04. FINANCE INCOME AND FINANCE COSTS 06. OPERATING COSTS NOTES NOTES FINANCE INCOME Interest income: Term deposits Cash at bank and on hand TOTAL FINANCE INCOME FINANCE COSTS Discount unwind on provisions TOTAL FINANCE COSTS Consumables/school costs 7 1,942 1,829 1,761 Inventory related expenditure 8 2,367 2,491 2,010 Rent 1,121 1, Notional rent Other accommodation expenses Administration expenses 10 3,169 3,512 3,322 Student expenses 11 1,466 1,541 1,576 Fees to auditors Provision for doubtful debts expense Board of Trustees fees PERSONNEL COSTS TOTAL OPERATING COSTS 11,989 12,374 10,992 NOTES Employee salary costs 34,548 35,197 30,175 Employee related and contractors 2,813 1,984 2,752 TOTAL PERSONNEL COSTS 37,361 37,181 32, CONSUMABLES/SCHOOL COSTS NOTES Salaries and wages 34,302 34,742 30,955 Personnel related 1,542 2,039 1,843 Movement in employee benefits 1, (134) Employer contributions to defined contribution plans TOTAL PERSONNEL COSTS 37,361 37,181 32,927 Communications 1,705 1,550 1,485 Production materials Textbooks Copyright expenses TOTAL CONSUMABLES/SCHOOL COSTS 1,942 1,829 1,

27 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 08. INVENTORY RELATED EXPENDITURE 10. ADMINISTRATION EXPENSES Sundry Print 1,331 2,055 1,129 Consumables Hardware Video Audio Insurance Legal expenses tax advice Legal expenses other Professional services 1,500 1,384 1,699 Operational supplies 1,509 1,949 1,434 TOTAL ADMINISTRATION EXPENSES 3,169 3,512 3,322 Teaching resources Inventory write off TOTAL INVENTORY RELATED EXPENDITURE 2,367 2,491 2, STUDENT EXPENSES 09. OTHER ACCOMMODATION EXPENSES Parents Association/payment to supervisors 1,240 1,210 1,363 Other student expenses TOTAL STUDENT EXPENSES 1,466 1,541 1,576 Off site storage Office relocation Cleaning Security Car parks Repairs and maintenance (11) Utilities FEES TO AUDITORS Audit fees financial statements Audit fees tax TOTAL FEES TO AUDITORS TOTAL OTHER ACCOMMODATION EXPENSES (GAIN)/LOSS ON SALE OF ASSETS IT Equipment (Gain) on Sale (3) 0 (9) IT Equipment Written Off Furniture and Fitting (Gain)/Loss on Sale 1 0 (2) Motor Vehicles (Gain) on Sale 0 0 (2) Art Written Off TOTAL (GAIN)/LOSS ON SALE OF ASSETS (2) 0 (3) 47 48

28 09 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 14. CASH AND CASH EQUIVALENTS 16. ACCOUNTS RECEIVABLE Petty cash Cheque account 00 a/c Cheque account 25 a/c Cheque account 28 a/c Short term deposit accounts 3, ,247 Term deposits with maturities less than three months 3,000 2,296 0 Multi deposit account ,639 2,632 1,301 Cash at bank and in hand 3, ,251 Short term deposits 3,000 2,296 0 Multi deposit account ,639 2,632 1,301 Receivables Less: provision for doubtful debts 0 (20) (20) Ministry of Education (EFTS) Ministry of Education (Other) , Not past due 1, Past due days Past due days Past due > 91 days , Fair value Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms, therefore the carrying value of debtors and other receivables approximates fair value. 15. OTHER FINANCIAL ASSETS TERM DEPOSITS WITH MATURITIES OF 4 12 MONTHS: Kiwibank 0 0 4,500 National Bank 0 0 3,349 Westpac 0 0 2, , CREDITORS AND OTHER PAYABLES Suppliers 1,174 1,466 2,085 Salary related liabilities Other accruals Ministry of Education (EFTS) 2, Ministry of Education (Other) ,934 2,612 3,

29 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 18. PROVISIONS 19. EMPLOYEE ENTITLEMENTS CURRENT PROVISIONS ARE REPRESENTED BY: Lease make-good Merit performance TOTAL CURRENT PORTION NON-CURRENT PROVISIONS ARE REPRESENTED BY: Lease make-good TOTAL NON-CURRENT PORTION TOTAL PROVISIONS MOVEMENTS FOR EACH CLASS OF PROVISION ARE AS FOLLOWS: 2010 LEASE MAKE-GOOD MERIT PERFORMANCE LEGAL CONTRACTUAL Balance at 1 January Additional provisions made Amounts used 0 (34) 0 0 Discount unwind (note 3) CURRENT PORTION Accrued pay 2,714 1,640 1,786 Redundancy TOTAL CURRENT PORTION 2,714 1,640 1,786 NON-CURRENT PORTION Long service leave Retirement leave TOTAL NON-CURRENT PORTION ,884 1,810 1,956 LONG SERVICE LEAVE 19 Years of Service Over 20 Years of Service RETIREMENT LEAVE 17 Years of Service Years of Service Over 20 Years of Service BALANCE AT 31 DECEMBER Balance at 1 January Additional provisions made Amounts used 0 (171) (10) (49) Discount unwind (note 3) BALANCE AT 31 DECEMBER Reinstatement provision: The School has entered into lease agreements for various properties which require the school, at the completion of the lease, to return the building to the same condition when the lease was first signed. The liability for the reinstatement provision is based on reasonable estimates of expenditure required to reinstate the premises. 20. MOVEMENT IN EMPLOYEE BENEFIT LIABILITIES Annual leave and salary expense 1, (131) Long service leave 0 0 (3) Retirement leave TOTAL EMPLOYEE BENEFIT LIABILITIES 1, (134) COMPRISING: Current 1, (131) Non-current 1 0 (3) TOTAL EMPLOYEE BENEFIT LIABILITIES 1, (134) 51 52

30 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 21. PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT (CONT D) COST 31/12/09 ACCUMULATED DEPRECIATION 31/12/09 CARRYING AMOUNT 31/12/09 CURRENT YEAR ADDITIONS CURRENT YEAR DISPOSALS CURRENT YEAR DEPRECIATION DISPOSAL DEPRECIATION IN PERIOD COST 31/12/10 ACCUMULATED DEPRECIATION 31/12/10 CARRYING AMOUNT 31/12/ IT Equipment 5,242 (3,701) 1, Library Materials 763 (763) 0 0 Furniture and Fittings 3,661 (1,248) 2,413 2,018 Make Good Leasehold Improvements 523 (183) Motor Vehicles 534 (338) Art 35 (2) 33 0 Plant and Equipment 716 (686) ,474 (6,921) 4,553 2,932 Work in progress TOTAL PROPERTY, PLANT AND EQUIPMENT (145) (766) 143 5,785 (4,324) 1, (763) 0 (31) (720) 29 5,648 (1,939) 3,709 0 (119) (302) (93) (431) (2) 33 (4) (11) (893) 26 (180) (1,709) ,225 (8,454) 5, COST 31/12/08 ACCUMULATED DEPRECIATION 31/12/08 CARRYING AMOUNT 31/12/08 CURRENT YEAR ADDITIONS CURRENT YEAR DISPOSALS CURRENT YEAR DEPRECIATION DISPOSAL DEPRECIATION IN PERIOD COST 31/12/09 ACCUMULATED DEPRECIATION 31/12/09 CARRYING AMOUNT 31/12/ IT Equipment 4,208 (3,603) 605 1,521 Library Materials 763 (763) 0 0 Furniture and Fittings 3,126 (1,033) 2, Make Good Leasehold Improvements 487 (170) Motor Vehicles 554 (245) Art 35 (2) 33 0 Plant and Equipment 711 (681) ,884 (6,497) 3,387 2,428 Work in progress TOTAL PROPERTY, PLANT AND EQUIPMENT (487) (576) 478 5,242 (3,701) 1, (763) 0 (323) (516) 301 3,661 (1,248) 2,413 0 (13) (183) 340 (20) (107) (338) (2) 33 (8) (11) (686) 30 (838) (1,223) ,474 (6,921) 4,553 1,214 5,767 The current valuation of artwork has been completed by Christopher Moore Gallery on 16 December The valuer is completely independent and not associated with Te Kura in any way

31 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 22. INTANGIBLE ASSETS INTANGIBLE ASSETS (CONT D) ACQUISITION COST 31/12/09 ACCUMULATED AMORTISATION 31/12/09 CARRYING AMOUNT 31/12/09 CURRENT YEAR ADDITIONS CURRENT YEAR DISPOSALS DISPOSAL AMORTISATION IN PERIOD CURRENT YEAR AMORTISATION COST 31/12/10 ACCUMULATED AMORTISATION 31/12/10 CARRYING AMOUNT 31/12/ Intangibles Acquired 830 (800) 30 0 Intangibles Internally generated 5,115 (5,115) 0 1,526 5,945 (5,915) 30 1,526 Work in progress TOTAL INTANGIBLES 0 0 (17) 830 (817) (7) 6,641 (5,122) 1, (24) 7,471 (5,939) 1,532 5,593 7,125 ACQUISITION COST 31/12/08 ACCUMULATED AMORTISATION 31/12/08 CARRYING AMOUNT 31/12/08 CURRENT YEAR ADDITIONS CURRENT YEAR DISPOSALS DISPOSAL AMORTISATION IN PERIOD CURRENT YEAR AMORTISATION COST 31/12/09 ACCUMULATED AMORTISATION 31/12/09 CARRYING AMOUNT 31/12/ Intangibles Acquired 819 (783) Intangibles Internally generated 5,115 (5,115) 0 0 5,934 (5,898) Work in progress TOTAL INTANGIBLES 0 0 (17) 830 (800) ,115 (5,115) (17) 5,945 (5,915) 30 2,702 2,

32 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 23. MONEY HELD IN TRUST 25. RECONCILIATION OF NET OPERATING SURPLUS WITH OPERATING CASH FLOW RECEIPTS Interest PAYMENTS Prizes EXCESS OF RECEIPTS OVER PAYMENTS 0 0 MOVEMENT SUMMARY Balance 1 January Plus excess of receipts over payments REPRESENTED BY: Deposit at Westpac Bank NET SURPLUS FROM OPERATIONS (2,415) (2,655) 1,694 NON CASH ITEMS Depreciation and amortisation 1,733 1,956 1,240 Discount unwind on provisions Doubtful debt provision expense Inventory write-off/write-back TOTAL (564) (699) 2,956 MOVEMENTS IN WORKING CAPITAL Decrease/(Increase) In Assets Accounts receivable debtors (548) 0 1,464 Prepayments (45) 0 (289) Inventory (4) 0 (256) Increase/(Decrease) In Liabilities GST owing (261) Long service leave and retirement leave 1 0 (3) Creditors and accruals (1,057) EQUITY RETAINED EARNINGS MONEY HELD IN TRUST ASSET REVALUATION TOTAL EQUITY Opening balance 17, ,614 Surplus for the year (2,415) 0 0 (2,415) Trust account revenue TOTAL RECOGNISED REVENUES AND EXPENSES (2,415) 0 0 (2,415) CLOSING BALANCE 15, ,199 Current employee entitlements Current provisions (28) 0 (196) MoE payables 1, Revenue in advance (48) 0 46 TOTAL 1, ,389 ITEMS CLASSIFIED AS INVESTING ACTIVITIES (Gain)/loss on sale of assets (2) 0 (3) NET CASH FROM OPERATING ACTIVITIES 852 (324) 4,

33 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 26. BOARD OF TRUSTEES REMUNERATION The total value of the remuneration (other than reimbursement of expenses) paid or payable to trustees in their capacity as Trustees from the Board during this financial year. TOTAL VALUE THE FOLLOWING FEES WERE EARNED BY MEMBERS OF THE BOARD DURING THE YEAR. P McKelvey (chairperson, appointed 10 April 2006) R Ballard (resigned Sept 09) R Taylor (appointed April 05) R Drummond (appointed April 06) N Parata (appointed April 08) W Bainbridge (appointed April 08) KEY MANAGEMENT PERSONNEL SALARIES AND OTHER SHORT-TERM EMPLOYEE BENEFITS $967 $953 Key management personnel include the Chief Executive, the four other members of the Senior Leadership Team, and the Board. PRINCIPAL S REMUNERATION (CEO) Year 2010 SALARY BENEFITS ACTUAL SEVERANCE Principal Year 2009 Principal C Moffatt (appointed April 08) J Stafford (appointed May 09) D Blakeney (appointed May 09) J Nisbet (appointed July 10) EMPLOYEES OVER $100,000 REMUNERATION Excluding Principal s remuneration Number of employees in $100,000 $110, Number of employees in $110,000 $120, Number of employees in $120,000 $130, Number of employees in $130,000 $140, Number of employees in $160,000 $170, Number of employees in $170,000 $180, TOTAL VALUE OF REMUNERATION $1,810,000 $1,990,

34 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 29. EXIT COSTS COMPENSATION AND OTHER BENEFITS UPON LEAVING 2010 NUMBER OF EMPLOYEES 2009 NUMBER OF EMPLOYEES RELATED PARTY TRANSACTIONS CROWN/GOVERNMENT > > Te Aho o Te Kura Pounamu (Te Kura) is a New Zealand domiciled state school within the meaning ascribed to that term by the Education Act The Government significantly influences the roles of Te Kura as well as being its major source of revenue. > > Te Kura may enter into transactions with Government Departments, Crown Entities and State Owned Enterprises on an arms length basis. These transactions are not separately disclosed because they are conducted on an arms length basis and in the normal course of business. 30. EXPLANATION OF MAJOR VARIANCES Explanations for major variances from Te Kura s budgeted figures for 2010 are as follows: STATEMENT OF COMPREHENSIVE INCOME > > Government funding was lower than budget for the year due to a lower than expected number of students. Total EFTS for 2010 were 8,167, Budget 8,345 a decrease of 2.1%. Actual $43.630m, Budget $44.284m. > > Miscellaneous income was higher than budget for the year due to unbudgeted donations from parents $0.076m. > > Operating costs were lower than budget due to lower maintenance costs arising from the delay in commencement of capital projects and tight financial controls put in place as student numbers began tracking less than budget throughout the year. Actual $11.931m, Budget $12.374m. > > Depreciation was lower than budget due to delays in the asset replacement programme, in particular the replacement of key student management and learning management systems. Actual $1.733m, Budget $1.956m. STATEMENT OF FINANCIAL POSITION > > There was a higher than expected cash balance due to delays in planned asset replacement and the better than expected deficit. Actual $6.639m, Budget $2.632m. > > Creditors and other payables are higher than budget due to reduced EFTS creating a debt owing to the MoE. Actual $3.934m, Budget $2.612m. > > Employee entitlements are higher than budget due to higher than budgeted staff resources in Learning Delivery creating higher annual leave provisions than budgeted. Actual $2.714m, Budget $1.640m. > > Non-current assets are lower than budget due to delays in the asset replacement programme, in particular the replacement of key student management and learning management systems. Actual $12.935m, Budget $15.121m. STATEMENT OF CHANGES IN EQUITY > > The major variation occurred due to the reduced deficit for the year. MEMBERS OF BOARD AND KEY MANAGEMENT > > During the year Te Kura purchased services from CORE Education Limited, a provider of education courses and teaching resource material, of which Board of Trustees member Carol Moffatt is a director. These services were supplied on normal commercial terms at a cost of $15,380 with a nil outstanding balance at year end. (2009: cost $39,184; balance outstanding at year end nil.) > > During the year Te Kura purchased services from Cognition Education Limited, a provider of education courses and teaching resource material, of which Board of Trustees member Carol Moffatt is a director. These services were supplied on normal commercial terms at a cost of $195 with a nil outstanding balance at year end. (2009: cost nil; balance outstanding at year end nil.) > > During the year Te Kura purchased services from Victoria University, a provider of education courses and teaching resource material, of which Board of Trustees Chair Patricia McKelvey is a council member. These services were supplied on normal commercial terms at a cost of $18,548 with an outstanding balance at year end of nil. (2009: cost $10,423; balance outstanding at year end nil.) > > During the year Te Kura purchased services from Kete Pumawa Solutions, a provider of recruitment services, in which the CEO s son is an employee. These services were supplied on normal commercial terms at a cost of $9,996, with a nil outstanding balance at year end. (2009: cost $5,357; balance outstanding at year end nil.) > > During the year Te Kura subscribed to membership of Rural Women New Zealand, a provider of support to farming communities, of which Board of Trustees member Jacky Stafford is on the National Council. This subscription was provided on normal commercial terms at a cost of $89 with a nil outstanding balance at year end. (2009: cost nil; balance outstanding at year end nil.) > > During the year Te Kura subscribed to membership of NZSTA and attended a conference organised by them, of which Board of Trustees member Jacky Stafford is a National Board member. The services were provided on normal commercial terms at a cost of $1,170, with a nil outstanding balance at year end. (2009: cost $1,067; balance oustanding at year end nil.) 61 62

35 08 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 32. FINANCIAL INSTRUMENTS RISK The carrying value of cash and cash equivalents, accounts receivable, investments and amounts owing by Te Kura are all considered to be equivalent to fair value. Amounts owing to Te Kura by the Ministry of Education are considered to be risk-free. CURRENCY RISK > > Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Te Kura holds no financial instruments with any currency risk and, accordingly has no exposure to currency risk. Te Kura has no currency exposure in terms of overseas revenue as all fees are stated as payable in local currency. INTEREST RATE RISK > > Interest rate risk is the risk that the fair value of a financial instrument will fluctuate or, the cash flows from a financial instrument will fluctuate, due to changes in market interest rates. The primary imperatives underlying cash management policies of Te Kura are to: > > (a) ensure sufficient liquidity to enable operational and capital expenditure commitments to be met, and FINANCIAL INSTRUMENTS RISK (CONT D) LIQUIDITY RISK MANAGEMENT > > Ultimate responsibility for liquidity risk management rests with the Board of Trustees, which has built an appropriate liquidity risk management framework for the management of short, medium and long term funding and liquidity management requirements of Te Kura. > > Te Kura manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. CAPITAL MANAGEMENT > > Te Kura assesses the availability of accumulated surplus and the funding provided by the Ministry of Education in the calculation of capital available. There are no externally imposed restrictions on capital. > > There has been no change during the year to the exposure to market risks or the manner in which the risk is managed by Te Kura. > > (b) invest in risk-free or near risk free investments. > > However, subject to these constraints the Board seeks to minimise exposure to interest rate risk on investments due to fluctuating interest rates by acquiring investments with a range of short-term maturity dates. All investments are for less than 12 months. 33. EVENTS AFTER THE BALANCE DATE There have been no significant events after the balance date requiring disclosure in the financial statements. CREDIT RISK > > Credit risk is the risk that a third party will default on its obligations to Te Kura, causing Te Kura to incur a loss. In the normal course of its business, credit risk arises from debtors, deposits with banks and derivative financial assets. Maximum credit risks are disclosed in the Statement of Financial Position. The concentration of credit risk in respect of cash and cash equivalents is mitigated by investing with high credit rating registered banks (in accordance with section 73 of the Education Act 1989). THE FOLLOWING CASH AT BANK REPRESENTS A CONCENTRATION OF CREDIT RISK: Westpac Bank Limited 5,639 4,000 National Bank of New Zealand 1,000 3,350 Kiwibank 0 4,500 6,639 11,

36 CHAIR S REPORT CHIEF EXECUTIVE S REPORT GOVERNANCE OUR STUDENTS & COMMUNITY STRATEGIC CONTEXT MĀORI RESPONSIVENESS STRATEGY STATEMENT OF SERVICE PERFORMANCE ACHIEVEMENTS FINANCIAL STATEMENTS 9i AUDITOR REPORT TO THE READERS OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 The Auditor-General is the auditor of Te Aho o Te Kura Pounamu ( Te Kura ). The Auditor-General has appointed me, Jacqueline Robertson using the staff and resources of Deloitte to carry out an audit of the financial statements of Te Kura on her behalf. We have audited the financial statements of Te Kura on pages 32 to 64, that comprise the statement of financial position as at 31 December 2010, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, and the notes to the financial statements that include accounting policies and other explanatory information. OPINION In our opinion the financial statements of Te Kura on pages 32 to 64: > > comply with generally accepted accounting practice in New Zealand; and > > fairly reflect Te Kura s: > > financial position as at 31 December 2010; and > > financial performance and cash flows for the year ended on that date. Our audit was completed on 6 April This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board of Trustees and our responsibilities, and we explain our independence. RESPONSIBILITIES OF THE BOARD OF TRUSTEES The Board of Trustees is responsible for preparing financial statements that: > > comply with generally accepted accounting practice in New Zealand; and > > fairly reflect Te Kura s financial position, financial performance and cash flows. The Board of Trustees is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Trustees responsibilities arise from the Education Act RESPONSIBILITIES OF THE AUDITOR We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Education Act INDEPENDENCE When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants. Other than the audit, we have no relationship with or interests in Te Kura. BASIS OF OPINION We carried out our audit in accordance with the Auditor-General s Auditing Standards, and the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader s overall understanding of the financial statements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to Te Kura s preparation of financial statements that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Te Kura s internal control. JACQUELINE ROBERTSON DELOITTE On behalf of the Auditor-General Wellington, New Zealand An audit also involves evaluating: > > the appropriateness of accounting policies used and whether they have been consistently applied; > > the reasonableness of the significant accounting estimates and judgements made by the Board of Trustees; > > the adequacy of all disclosures in the financial statements; and > > the overall presentation of the financial statements. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. Matters relating to the electronic presentation of the audited financial statements This audit report relates to the financial statements of Te Aho o Te Kura Pounamu (Te Kura) for the year ended 31 December 2010 included on Te Kura s website. The Board of Trustees is responsible for the maintenance and integrity of Te Kura s website. We have not been engaged to report on the integrity of Te Kura s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/ from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 6 April 2011 to confirm the information included in the audited financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions