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| Kathy Smith | Barbara Arnott |
| Chair | Chair: Audit & Risk Management Committee |
The purpose of the New Zealand Teachers Council is to provide professional leadership in teaching, enhance the professional status of teachers in schools and early childhood education, and contribute to a safe and high quality teaching and learning environment for children and other learners.Section 139AA Education Act 1989 In fulfilling this purpose, the Council promotes the profession of teaching and encourages teachers to strive to attain the highest standards of professional service.
This is achieved by promoting professional learning and ensuring the maintenance of professional standards that attract and retain high calibre teachers to careers in education.
In accomplishing this goal, the Council influences the quality of teaching, and consequently the educational outcomes for children and young people in New Zealand.
The Council is positioned so that it can work interdependently with the Government, the profession and agencies involved in the sector, in the best interests of the teaching profession and learners.
The Council is an autonomous Crown Entity established in 2002 under the provisions of the Education Standards Act 2001 and Education Act 1989.
The Council maintains strong governance to ensure excellence in organisational performance. It does this through:
The New Zealand Teachers Council is governed by a Council of eleven members, consisting of four members appointed by the Minister, including the Council Chair; three nominated respectively by NZEI, NZPPTA, NZSTA; three elected by registered teachers from each of the following sectors, early childhood, primary and secondary; and one representative elected by school principals.
The Council takes cognisance of the State Services guidelines on Board Appointments and Induction, and maintains guiding documentation for its members in the form of a comprehensive governance manual, as well as requiring the accurate and timely maintenance of an Interests Register.
Two committees and two advisory bodies support the work of the Council. They meet on a regular basis.
The Audit and Risk Management Committee monitors all significant expenditure proposals, legislative compliance and financial reports, and financial strategy/budget papers, before these are recommended to the Council for final decisions.
Similarly, the Professional Leadership Committee provides detailed analysis of professional papers and issues, and monitors the development, implementation and evaluation of professional projects, prior to making recommendations to the Council for final decisions.
The Early Childhood Advisory Group (ECEAG), established in 2004, provides the Council with advice regarding any of its responsibilities relating to teachers and others working in early childhood educational settings. The composition of the ECEAG ensures that a range and balance of expertise, knowledge and experience informs the work of the Council.
Similarly, the Māori Medium Advisory Group (MMAG), established in 2005, is an expert panel, which provides the Council with advice regarding any of its responsibilities relating to teachers and others in the field of Māori medium education.
The functions and powers given to the Council, under Part 10 of the Education Act 1989, form the basis of its key strategic initiatives. These are: a) to provide professional leadership to teachers and others involved in schools and early childhood education b) to encourage best teaching practice c) to carry out the functions relating to teacher registration d) to determine standards for teacher registration and the issue of practising certificates e) to establish and maintain standards for qualifications that lead to teacher registration f) to conduct, in conjunction with quality assurance agencies, approvals of teacher education programmes on the basis of the standards referred to above g) to develop a code of ethics for teachers h) to exercise the disciplinary functions relating to teacher misconduct and reports of teacher convictions i) to set the criteria for reporting serious misconduct and for reporting on competence issues j) to exercise the functions relating to teacher competence k) to coordinate a system providing for the vetting by police of all teachers and other people employed in schools and early childhood services l) to identify research priorities and where appropriate, to promote and sponsor research according to those priorities m) to exercise any other functions conferred on it by this Act, or by the Minister. Section 139AE of the Education Act 1989
The Government has identified three themes for the next decade which provide overarching goals for strategic planning. These are:
Given the importance of the compulsory and early childhood sectors of education to the families' young and old theme, the Council will pay particular attention to this theme in its plans.
The Ministers of Education and Tertiary Education have set priorities to achieve the twin goals of building an education system that equips New Zealanders with 21st century skills and reducing underachievement in education. Of these priorities, the Council will emphasise:
The implementation of these priorities should achieve two key outcomes to which the Council will make a significant contribution:
As one of six government education agencies, the Council contributes to building an education system that works for the benefit of New Zealand and New Zealanders and that contributes to New Zealand's social, cultural and economic development. The Council's strategies complement the plans of the other agencies and this is reflected in its operations.
Within the Council's strategic plan the following goals align closely with the specific priorities of the Government for the early childhood, schooling and tertiary sectors:
Achievement will be measured through the setting of clear key performance indicators for each output. In the first instance, monitoring and reporting of these results will be made to the Council's specialist committees (the Audit and Risk Management and the Professional Leadership committees), and then subsequently to the Council and to the Minister through the standard reporting formats.
Indications of achievement will be measured by the uptake and adoption of Council led initiatives and projects, and its growing influence across the sector.
Further discussion on the way in which the Council will measure its achievements against its stated outputs and outcomes is contained in the section Assessment of Contribution to Outcomes.
The major focus of the Council's professional leadership will be:
There are three key stages in a teacher's pathway leading from student teacher status to full registration as a teacher (see Figure 1). Selection into an approved initial teacher education (ITE) programme is the first entry point. The Council has signalled that it will be reviewing and revising the processes and guidelines by which ITE programmes will be approved or reapproved.
The second stage is reached when a student graduates from an approved ITE programme and is granted provisional registration. The provisionally registered teacher is required to undertake a period of induction. The Council is currently researching current practice and identifying exemplars of best practice in early childhood education, school and Māori immersion education settings. The Council will determine processes by which induction programmes and the training of mentors will occur. This work will align closely with the coach/mentor role proposed by NZEI Te Riu Roa and the role of the specialist classroom teacher in secondary schools.
The third stage is the endorsement of a provisionally registered teacher's movement to full registration. The standards and process by which this endorsement is granted are currently under review.
Figure 1: Three Year Plan
Work with professional leaders:
The communications strategy will have a focus on:
The Council assesses the progress of its outputs each quarter through measures, such as the quantity delivered of each element, the quality of the product and the timeliness in the delivery of each output.
It will further refine its measurement tools by the use of surveys, consultation with other education sector agencies, peer review, focus groups, stakeholder feedback and questionnaires.
The Council also monitors and evaluates its practices against similar international authorities. This includes regulatory authorities in each of the Australian states and the United Kingdom. For example, the registration unit liaises with international teaching bodies regarding overseas teachers applying to the Council for registration.
Similarly, in reviewing the effectiveness of its communications, the Council will not only be surveying teachers, schools and centres, but it will also access the publications of international counterparts to benchmark its communications against peer organisations.
The Council also liaises with other comparable professional bodies in New Zealand. For example, in processing overseas applications for registration, the Council recognises the policies of the New Zealand Immigration Service regarding applicants applying for residency. In the area of professional standards, the organisation looks to other professional bodies, such as the Medical Council and the Health and Disability Commission, for the reporting of decisions and processing times for complaints and reports.
The Council will also continue to review its operational processes. In2007-08, the Council will evaluate the cost allocation and related processing times of the registration system based on the time and motion studies, process review and exception reporting completed in 2006-07.
As a relatively young organisation, the Council continues to critically examine its work and refine its measures for reporting purposes.
The teaching profession currently has over 80,000 registered teachers in New Zealand. Over the period from 2005 to 2012, the early childhood sector is being required to increase the proportion of registered teachers. The cumulative effect of compulsory registration in the early childhood sector will result in an increase of registered teachers by 2012.
The Council has continued to review the registration status of around 640 educators in whare kura and kura kaupapa. This should result in an increase in the overall number of registered teachers. However, there are a significant number of kura kaupapa teachers, who registered before 1 January 2006 when it became compulsory.
The Council operates within the broad educational environment. Issues of particular interest to the Council include, but are not limited to:
The Council recognises that developing effective responses to these issues requires a collaborative and integrated approach within the education sector and the Council will play its part by working with key groups.
Section 118 of the Crown Entities Act 2004 requires Crown Entities to be good employers. The Council wishes to ensure a productive, harmonious work environment, in which staff are treated fairly and are able to maintain an appropriate work-life balance. The Council is committed to maintaining good employment practices and meeting legislative requirements concerning the recruitment, training and retention of staff.
The Council has sound recruitment, appointments and induction processes. These have been informed by guidelines provided by the Human Rights Commission and the State Services Commission, and will be a focus for continued operational development. The Council advertises positions in external publications and on the Council's Intranet and Internet sites.
As part of strengthening its Human Resources Framework, the Council has completed formal reviews of all positions and adjusted salaries to appropriately reflect the responsibilities inherent in them, and in comparison to similar roles in the wider public sector.
Sound provision is made to fund staff training and development. The Council allows staff to take on part-time work to complete post-graduate study or gain further qualifications. The Council continues to plan for staff training and development, linked to the needs of the Council, as well as personal career development.
The Council, in its employment practices and leave arrangements, is responsive to staff with family commitments. For example, it reimburses childcare costs, if an employee is travelling away from home on Council business.
Confidential access to an Employment Assistance Programme (SEED) is available to all staff, including ongoing access to attend counselling.
It provides a 10 day sick leave provision, which is double the legislative requirement.
The Rehabilitation Policy outlines the Council's commitment to assist staff back to work after a period of illness or injury. Its Human Resources, Health and Safety policies, and its Legislative Compliance checklists are regularly updated to reflect employment and other legislative changes. All operational policies are available to staff on the Council's Intranet.
The Council has a number of policies and practices in place to minimise health and safety issues. These include an active Health and Safety Committee, regular hazard audits and an Employee Assistance Programme.
As at 31 May 2007, 78% of the Council's work force is female in comparison with the same time, 31 May 2006 when 85% of the Council's work force was female.
Every three years, the Council is affected by a peak in practising certificate renewal. Because of this, staff turnover can appear high, as temporary staff are employed on fixed term contracts to assist with this peak renewal period.
The Council continues to work on a number of initiatives to assist in the recruitment and retention of high quality staff.
Exit interviews were introduced in early 2006 to more formally capture the reasons why staff may leave the Council.
The Council is fully involved in State Services Commission Networks of Public Service Ethics and Integrity, Human Resources and EEO Practitioners Network. This information and interaction is invaluable to a small entity like the Council in maintaining an up-to-date knowledge of developments and changes as well as being able to look at 'best practice' models in place or under development.
The Council has participated in the Government wide pandemic planning exercise and the Council's plans are now linked to the general disaster recovery, business continuity plans already well established at the Council.
| Executive | Director Executive Assistant |
| Corporate Services | Corporate Services Manager ICT Advisor/Analyst ICT Systems Administrator Accountant Senior Administrator Non Teacher Police Vetting Officer x 2 |
| Registration | Manager Registration Team Leader Registration Team Leader Customer Service & Office Administration Registration Officers & Qualifications x 9 Contact Centre x 4 Date Entry x 2 Administration Assistant (0.25) |
| Teacher Practice | Senior Advisor Teacher Practice |
| Advisor Teacher Practice (.5) | |
| Legal Administrators x 2 | |
| Administration Support | |
| Teacher Education | Senior Advisor Teacher Education |
| Advisors Teacher Education x 2 | |
| Administration Support | |
| Policy and Strategic Development | Manager Policy and Strategic Development |
| Policy Analyst | |
| Research Analyst | |
| Policy Advisor Maori | |
| Senior Administrator |
The Council has stabilised and enhanced its ICT infrastructure significantly which has delivered tangible benefits that help the Council increase its business efficiency and reporting capacity. It will extend the system for sector-wide interactions, such as sector authorisation and authentication, data sharing and e-transactions.
The Council has contributed significantly in the growth of the Education Sector's ICT interoperability projects.
In addition, the Council will be undertaking further enhancements to the TCR System in terms of postal code updates and history screen enhancements.
The Council continues to improve its effectiveness in the areas of Registration, Non Teacher Police Vetting and Finance through appropriate systems design. This involves ensuring that, in proportion to the size of the organisation, the work and processes that are needed at present are in place, while safeguarding the systems potential for future enhancements.
A feasibility study, completed in January 2007 investigated the Council's document management requirements. The Council holds a large repository of paper and electronic information and the streamlining of its storage, retrievability and security was the focus of the study. The Council wishes to ensure it has assessed the value, purpose and requirements of its vast information repository. The next stage in this work is an internal reorganisation of internal documentation practices. When this is completed, the Council will evaluate the need for an electronic document and records management system.
The Council is in a sound financial position. It is vigilant in its financial planning, taking into account its three-year practising certificate income cycle. The Council continues to consider possible increases in existing sources of revenue, including fee increases, the escalation of actions to retrieve fees from schools and centres illegally employing non-registered/ non-practising certificated teachers, programme approval costs and generating income from new sources.
Financial reporting to the Council is supported by monthly internal and variance reports. The Council continues to receive encouraging Audit Reports, which show ongoing improvement and that the organisation maintains a good standard of reporting and control over its operational work.
The Council will complete budget re forecasting on a more regular basis and present its findings to the Audit and Risk Management Committee and Council.
Further scrutiny will be undertaken to check the methodology applied to income recognition and the application of fee income to outputs.
The Council will be introducing the International Financial Reporting Standards (IFRS) in the 2007/08 financial year. The significance of these changes has been assessed in liaison with expert advisors, and the Council has prepared for the implementation of the changes.
2007-08 Outputs
| Total Revenue
| $4,690,591 |
| Total Expenditure
| $5,496,541 |
| Surplus (Deficit)
| $(805,950) |
Outputs
1. Teacher Registration
2. Maintenance of Professional Standards
3. Professional Leadership
4. Teacher Education
5. Non Teacher Police Vetting
The Council reviews its position against these outputs on an annual basis, both strategically and operationally.
To ensure an efficient and reliable registration process for the purpose of maintaining and promoting high standards for the teaching profession and building recognition of and respect for the teaching profession.
| Teacher Registration | 2007/08 |
| Revenue | 1,777,351 |
| Expenditure | 1,829,570 |
| Surplus (Deficit) | (52,219) |
The objectives of this output are to ensure:
Quality | |
| The database is maintained with an updated web register | This updating is completed in real time. The register is updated as each approval is signed off and when the registration status changes. |
| All teacher quality assurance activities are made in accordance with the Education Act (1989) and Teachers Council's policies and procedures | All applications processed in accordance with legislation and policy |
Quantity | ||||
| Applications approved by category | Web-assisted application | Hardcopy applications | Total applications | Standard for Quarter |
| Application for Registration | Actual numbers | Actual numbers | Actual numbers | Budget |
| Renewal | Actual numbers | Actual numbers | Actual numbers | Budget |
| Provisional/STC to Full | Actual numbers | Actual numbers | Actual numbers | Budget |
Quantity | ||
| Applications declined by category* | Applications closed by category* | |
| Application for Registration | ||
| Renewal | ||
| Provisional/STC to Full Registration | ||
Quantity | ||
| YTD Actual | Quarterly Actual | |
| Limited Authority to Teach | Actual numbers | Actual numbers |
Timeliness | |||
| Applications approved by category | Weeks | Standard Percentage | Actual |
| Application for Registration | 6 | 80% | |
| Renewal | 6 | 80% | |
| Provisional/STC to Full | 4 | 80% | |
To consider and determine reports and complaints regarding fitness to be a teacher and/or competence of teachers and those authorised to teach for the purpose of maintaining and promoting high standards for the teaching profession.
| Maintenance of Professional Standards | 2007/08 |
| Revenue | 995,046 |
| Expenditure | 1,139,877 |
| Net Surplus (Deficit) | (144,831) |
The objectives of this output are to:
Quality | Standard | Quarterly Actual |
| Web register is accurate and up to date | 100% | |
| All decisions are made in accordance with the requirements of the Education Act 1989 and the New Zealand Teachers Council Rules 2004 | 100% |
Quantity | Standard | YTD Actual | Quarterly Actual |
| Number of complaints and mandatory reports received by CAC | 120 | ||
| Number of complaints and mandatory reports resolved by CAC | 120 | ||
| Number of competency complaints and mandatory reports received | 50 | ||
| Number of competency complaints and mandatory reports resolved | 50 | ||
| Number of referrals from CAC to competence | 15 | ||
| Number of conduct/competence cases determined by the Council | 50 | ||
| Number of cases referred by CAC to DT | 15 |
Timeliness | Standard | Quarterly Actual |
| Percentage of cases resolved by CAC within six months | 80% | |
| Percentage of competency cases resolved within six months | 80% | |
| Percentage of Disciplinary Tribunal cases resolved within six months | 80% |
The development of policy, research and strategic goals for the Council that will provide opportunities to enhance the quality of teaching and the standing of the teaching profession. This work includes facilitation of stakeholder communications in order to ensure that the Council works in cooperation with the profession and that its policies and strategic direction are understood.
| Professional Leadership | 2007/08 |
| Revenue | 1,331,196 |
| Expenditure | 1,664,690 |
| Surplus (Deficit) | (333,494) |
The objectives of this output are to:
| Quality | Standard | YTD Actual | Quarterly Actual |
| Research projects are monitored appropriately and lead to policy advice to Council and stakeholders | 100% | ||
| Research and other projects involve stakeholder representation and consultation as appropriate | 100% | ||
| Research and development projects use appropriate evaluation strategies for planning, implementation and review. | 100% |
| Quantity | Standard | YTD Actual | Quarterly Actual |
| The Satisfactory Teacher Dimensions are reviewed | 100% | ||
| Processes for determining entry to and ongoing membership of the teaching profession are agreed with the profession | 100% | ||
| At least one pilot for a proposed induction & mentoring programme is fully scoped and ready for implementation | 100% | ||
| The procedures and guidelines for the approval/re-approval of ITE programmes are reviewed and revised | 100% | ||
| Initial scoping and planning for a review of the Council's policy for Categories of Registration is completed. | 100% | ||
| Eight workshops on Ngā Tikanga Matatika (Code of Ethics) are run for teachers in Māori immersion settings | 8 | ||
| Phase 1 of a research programme to support te reo proficiency in ITE programmes is completed | 100% |
| Timeliness | Standard | YTD Actual | Quarterly Actual |
| The Satisfactory Teacher Dimensions are reviewed by May 2008 | 100% | ||
| Processes for determining entry to and ongoing membership of the teaching profession are agreed by July 2008 | 100% | ||
| At least one pilot for a proposed induction & mentoring programme is planned for implementation by July 2008 | 100% | ||
| The procedures and guidelines for the approval/re-approval of ITE programmes are reviewed and revised | 100% | ||
| Initial scoping and planning for a review of the Council's policy for Categories of Registration is completed by July 2008. | 100% | ||
| Eight workshops on Ngā Tikanga Matatika (Code of Ethics) will be run for teachers in Māori immersion settings by July 2008 | 8 | ||
| Phase 1 of a research programme to support te reo proficiency in ITE programmes is completed by July 2008 | 100% |
The establishment and maintenance of standards for initial teacher education programmes through approval and re-approval processes and external monitoring, the provision of advice to student teachers, liaison with teacher education providers, the management of workshops on the Code of Ethics and participation in research into teacher education policies, processes and outcomes.
| Teacher Education | 2007/08 |
| Revenue | 426,979 |
| Expenditure | 669,892 |
| Surplus (Deficit) | (242,913) |
The Teachers Council approves initial teacher education programmes for the purposes of teacher registration in conjunction with three quality assurance agencies:
| NZQA | New Zealand Qualifications Authority |
| CUAP | Committee on University Academic Programmes |
| ITPQ | Institutes of Technology & Polytechnics Quality |
The objectives of this output are:
Quality | Standard |
| All decisions are consistent with Teachers Council standards for approvals of teacher education programmes and relevant legislation | 100% |
Quantity | Standard | YTD Actual | Quarterly Actual |
| Number of teacher education programmes considered for approval and reapproval. | 30 | ||
| Number of Code of Ethics workshops delivered to teachers. | 8 |
Timeliness | Standard |
| Percentage of all programme approvals/re-approvals that are negotiated within agreed timeframe between the quality assurance agency and the Council | 100% |
| Percentage of all requests for graduating student seminars that are negotiated within the agreed timeframe between the institution and the Council. | 100% |
The Teachers Council acts as a conduit for obtaining a police check for all those non-teachers and contractors employed regularly in schools, kura kaupapa Māori, kindergartens, kohanga reo and other early childhood settings*.
This is a requirement of the Education Standards Act. The Council is charged with establishing a cost recovery process that ensures that every person employed in a non-teaching capacity undergoes a check.
| Non Teacher Police Vetting | 2007/08 |
| Revenue | 160,020 |
| Expenditure | 192,512 |
| Surplus (Deficit) | (32,492) |
The objective of this output is to:
| Quality | Standard | YTD Actual | Quarterly Actual |
| All non teacher and contractor vet requirements will be consistent with the Education Act and Teachers Council's policies and procedures | 100% |
| Quantity | Standard | YTD Actual | Quarterly Actual |
| Number of non teacher police checks completed | |||
| Number of sensitive/red stamps vet results from NZ Police |
| Timeliness | Standard | YTD Actual | |
| * Percentage | Quarterly Actual | ||
| Turnaround of vet result, from NZ Police, processed within 5 working days. |
Reporting Entity
The New Zealand Teachers Council is a Crown Entity established under the Education Standards Act 2001. It is involved in ensuring that New Zealand schools and early childhood centres are staffed by teachers meeting approved standards of suitability, fitness and qualification.
These prospective financial statements are prepared in accordance with section 41 of the Public Finance Act 1989, the Seventh Schedule of the Education Act 1989, the Crown Entities Act 2004 and FRS 42: Prospective Financial Statements. They outline the New Zealand Teachers Council activities and planned performance and the information contained in these prospective financial statements may not be appropriate for use for any other purpose.
Adoption of New Zealand equivalents to International Financial Reporting Standards
The Accounting Standards Review Board (ASRB) has adopted IFRS for application to reporting periods beginning on or after 1 January 2007. The ASRB have issued New Zealand equivalents to IFRS.Full adoption of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) by the New Zealand Teachers Council occurs for the year ended 30 June 2008. Therefore the prospective financial statements have for the year ended 30 June 2008 been prepared in accordance with NZ IFRS. The comparative figures (years ended 30 June 2006 and 2007) have been reported under generally accepted accounting practice (GAAP).
Entities complying with the New Zealand equivalents to IFRS for the first time will be required to restate their comparative financial statements to amounts reflecting the application of IFRS for that comparative period. Most adjustments required on transition to IFRS will be made, retrospectively, against opening retained earnings as at 1 July 2006.
The Council has assessed the significance of the changes and will prepare for their implementation. The key differences are:
The primary objective of the Council is to provide professional leadership in teaching, enhance the professional status of teachers and contribute to a safe and high quality teaching and learning environment and has therefore elected to report as a public benefit entity for the purposes of NZ IFRS.
Measurement System
These Financial Statements comply with generally accepted accounting practice and NZIFRS.
The measurement base adopted is that of historical cost.
These Prospective Financial Statements are prepared in accordance with GAAP and NZIFRS and on the basis of assumptions as to future events that the New Zealand Teachers Council reasonably expects to occur, associated with the actions that the New Zealand Teachers Council reasonably expects to take, as at the date that this information was prepared.
The actual financial results achieved for the period covered are likely to vary from the information presented in the Prospective Financial Statements and these variations may be material.
The Council maintains the assumption from projected data that 27,794 applications for registration will be received over the following year. This assumption averages at 72% of the Council's income for the same period.
The Council bases the estimates of expenditure on Disciplinary Tribunal Hearings and the assessment of complaints through the Complaints Assessment Committee on historical data, as the functions did not become active until late 2005.
The Council maintains the assumption that all members elected to the Council will hold office for the full three-year term. To mitigate any risk, the Council does budget a proportional amount in the event of a by election of one or more members.
The following accounting policies, which materially affect the measurement of financial position, have been applied.
Budget Figures
The budget figures are those approved by the Council at the beginning of the financial year. The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.
Revenue
The Council derives revenue through the charging of fees for practising certificates, limited authority to teach applications, provisional to full applications, non teacher police vet applications, teacher education programme approval income and income from investments. Practising certificate fees are charged on a three-yearly basis.
The income received in advance, as at 30 June 2004, is amortised to income in equal monthly instalments over three years ceasing 30 June 2007.From 1 July 2004, a portion of the revenue received from practising certificate fees is recognised in the month of receipt. The remainder of the fees are treated as being received in advance and are amortised to income at the first and second year anniversary of the receipt of the application. All other revenue is recognised when earned and is reported in the financial period to which it relates.
Goods & Services Tax
The Financial Statements are prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable, which are inclusive of GST.
Taxation
The Council is a public authority in terms of the Income Tax Act 1994 and consequently is exempt from income tax.
Accounts Receivable
Accounts Receivable is valued at expected realisable value.
Term Deposits
Term Deposits are recorded at the lower of cost and net realisable value.
Property, Plant and Equipment
Property, Plant and Equipment are recorded at their carrying values transferred from the Teachers Registration Board on 1 February 2002. Subsequent additions are recorded at cost. From 1 July 2007 in accordance with NZIFRS computer software will be transferred to intangible assets.
Depreciation
Depreciation is provided on a straight-line basis to reflect the estimated economic life of each asset.
The useful lives and associated depreciation rates of the major classes of assets have been estimated as follows:
| Office Equipment | 5 Years | 20.0% | |||
| Computer Equipment | 3 Years | 33.3% | |||
| Furniture & Fittings | 15 Years 6.7% | ||||
| Office Fit-out | 5 Years | 20.0% | |||
| Intangible (Computer Software) | 3 Years | 33.3% from 1 July 2007 |
Employee Entitlements
Provision is made in respect of the Council liability for annual leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay.
Operating Leases
Operating lease payment, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the Statement of Financial Performance. Operating lease expenses are recognised in a systematic basis over the period of the lease.
Financial Instruments
The Council is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, debtors, term deposits, and creditors. Revenue and expenses in relation to all financial instruments are recognised in the Prospective Income Statement. All financial instruments are recognised in the Prospective Balance Sheet at fair values.
Prospective Cash Flow Statement
Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the Council invests as part of its day-to-day cash management.
Operating activities include cash received from all income sources of the Council and records the cash payments made for the supply of goods and services.
Investing activities are those activities relating to the acquisition and disposal of non-current assets.
Financing activities are those activities relating to changes in equity and debt capital structure of the Council.
Cost Allocation
The Council has five outputs in the Statement of Intent. These are Teacher Registration, Maintenance of Professional Standards, Professional Leadership, Teacher Education and Non-Teacher Police Vetting. The Council has derived the cost of each output using the following system:
Direct costs are charged directly to the outputs. Indirect costs are charges to outputs based on appropriate cost drivers such as actual usages, staff numbers and floor area. (Indirect costs are those costs which cannot be identified in an economically feasible manner with a specific output).
Changes in Accounting Policy
There have been no changes in accounting policy. All policies used for the preparation of the prospective financial statements have been applied on a basis consistent with previous years.
| Actual | Estimated Actual | Projected | |
| Year Ended | Year Ended | Year Ended | |
| Income | 30 June 2006 | 30 June 2007 | 30 June 2008 |
| Fees | 4,000,077 | 3,450,478 | 3,402,912 |
| Non Teacher Police Vetting | 173,902 | 169,310 | 160,020 |
| Revenue Crown | 178,000 | 178,000 | 178,000 |
| ProvSTCFull | 317,884 | 346,094 | 341,816 |
| LAT Fees | 54,904 | 39,939 | 31,952 |
| Interest Income | 490,421 | 547,333 | 527,641 |
| Sundry Income | 7,884 | 5,677 | 4,500 |
| Teacher Education Approvals | 61,935 | 40,729 | 38,750 |
| Complaints/Discipline Recovered Costs | - | 2,391 | 5,000 |
| Total Income | 5,285,007 | 4,779,952 | 4,690,591 |
| Less: Expenditure | |||
| Personnel Costs | 1,912,654 | 2,062,626 | 2,578,845 |
| Council Member Fees | 161,640 | 217,369 | 233,975 |
| Administration Expenses | 774,479 | 930,651 | 1,199,088 |
| Professional/Consultancy Fees | 49,093 | 77,146 | 110,380 |
| Audit Fees | 29,000 | 43,238 | 45,000 |
| Rent | 187,465 | 194,549 | 253,219 |
| Advisory Committees | 21,985 | 18,904 | 52,490 |
| Complaints/Discipline | 131,720 | 141,081 | 232,760 |
| Depreciation | 149,127 | 230,997 | 232,784 |
| Total Operating Expenses | 3,417,163 | 3,916,561 | 4,938,540 |
| NET OPERATING SURPLUS/(DEFICIT) CORE BUSINESS | 1,867,844 | 863,391 | (247,950) |
| Special Projects | 13,908 | 295,802 | 503,000 |
| Council Elections | 240,439 | - | 55,000 |
| NET OPERATING SURPLUS/(DEFICIT) | 1,613,497 | 567,589 | (805,950) |
| Actual | Estimated Actual | Projected | |
| Year Ended | Year Ended | Year Ended | |
| 30 June 2006 | 30 June 2007 | 30 June 2008 | |
| Public Equity as at 1 July | 3,588,750 | 5,202,247 | 5,769,836 |
| Net Suplus/(Deficit) for the period | 1,613,497 | 567,589 | (805,950) |
| Total Recognised Revenues and Expenses for the Period | 1,613,497 | 567,589 | (805,950) |
| PUBLIC EQUITY AS AT 30 JUNE | 5,202,247 | 5,769,836 | 4,963,887 |
| Actual | Estimated Actual | Projected | |
| Year Ended | Year Ended | Year Ended | |
| Equity | 30 June 2006 | 30 June 2007 | 30 June 2008 |
| Retained Earnings | 3,588,750 | 5,202,247 | 5,769,836 |
| Net Operating Surplus/(Deficit) | 1,613,497 | 567,589 | (805,950) |
| TOTAL PUBLIC EQUITY | 5,202,247 | 5,769,836 | 4,963,887 |
| Represented By: | |||
| Assets | |||
| Current Assets | |||
| Cash | 544,608 | 180,000 | 180,000 |
| Term Deposits | 7,151,520 | 7,501,734 | 6,716,675 |
| Accrued Interest | 193,014 | 60,000 | 60,000 |
| Prepayments | 7,700 | 15,000 | 15,000 |
| Accounts Receivable | 11,644 | - | - |
| Total Current Assets | 7,908,486 | 7,756,734 | 6,971,675 |
| Non Current Assets | |||
| Property, Plant and Equipment | 621,606 | 338,329 | 363,405 |
| Intangible | - | 214,670 | 103,346 |
| Total Non Current Assets | 621,606 | 552,998 | 466,751 |
| Total Assets | 8,530,092 | 8,309,732 | 7,438,426 |
| Liabilities | |||
| Current Liabilities | |||
| Accounts Payable | 354,842 | 90,000 | 90,000 |
| GST Due for Payment | 25,081 | - | - |
| Fees Received in Advance | 2,801,318 | 2,315,624 | 2,269,924 |
| Provision for Employee Entitlements | 75,174 | 82,500 | 82,500 |
| Deferred Lease Liability | 71,430 | 51,772 | 32,115 |
| Total Current Liabilities | 3,327,845 | 2,539,896 | 2,474,539 |
| Total Liabilities | 3,327,845 | 2,539,896 | 2,474,539 |
| NET ASSETS | 5,202,247 | 5,769,836 | 4,963,887 |
| Actual | Estimated Actual | Projected | |
| Year Ended | Year Ended | Year Ended | |
| Cash Flow From Operating Activities | 30 June 2006 | 30 June 2007 | 30 June 2008 |
| Cash was Provided from: | |||
| Fees Received | 3,932,798 | 2,962,197 | 3,357,213 |
| LAT Fees | 54,903 | 39,939 | 31,952 |
| Revenue Crown | 178,000 | 178,000 | 178,000 |
| Police Vetting Non Teachers | 173,902 | 169,310 | 160,020 |
| Interest Income | 338,016 | 547,333 | 527,641 |
| ProvSTCFull | 317,884 | 346,094 | 341,816 |
| Teacher Education Approvals | 61,935 | 40,729 | 38,750 |
| Sundry Income | 69,819 | 5,677 | 4,500 |
| Net GST | 2,118 | - | - |
| 5,129,375 | 4,289,281 | 4,639,892 | |
| Cash was Applied to: | |||
| Payments and Employees | (3,418,301) | (4,145,055) | (5,278,414) |
| Net GST | - | - | - |
| Net Cash Flow From/(To) Operating Activities | 1,711,074 | 144,226 | (638,522) |
| Cash Flows From Investing Activities | |||
| Cash Provided from: | |||
| Sale of Property, Plant and Equipment | - | - | - |
| Cash Applied To: | |||
| Net Transfers to Investments | |||
| Purchase or Proprty, Plant and Equipment | (197,684) | (158,620) | (146,537) |
| Net Cash Flow From/(To) Investing Activities | (197,684) | (158,620) | (146,537) |
| Cash Flows From Financing Activities | |||
| Cash Provided From: | |||
| Lease Liabilty | - | (19,657) | (19,657) |
| Cash Applied To: | |||
| Lease Liabiliy | - | 19,657 | 19,657 |
| Net Cash Flows From/(To) Financing Activities | - | - | - |
| Net Increase/(Decrease) in Cash Held | 1,513,390 | (14,394) | (785,059) |
| Plus Opening Cash | 6,182,738 | 7,696,128 | 7,681,734 |
| CLOSING CASH AT 30 JUNE | 7,696,128 | 7,681,734 | 6,896,675 |
The New Zealand Teachers Council is located at 93 The Terrace, Wellington, on Levels 6, 7, 8and 9 of The Genesis Building and has a staff of 40 FTE, including the Director.
The Council is responsible for policy, standards setting, regulatory and core service delivery functions relating to registration, maintenance of professional standards, professional leadership, approval of teacher education programmes and police vetting (teacher and non teacher).
Director: Dr Peter Lind
The Council is structured in teams for service delivery:
Corporate Services
Christine Murcott (Manager)
Non Teacher Police Vetting
Christine Murcott (Manager)
Registration Services
Jenny Thomas (Manager)
Maintenance of Professional Services
Linda Gendall (Senior Advisor)
Teacher Education
Ken Wilson (Senior Advisor)
Policy and Strategic Development
Cynthia Shaw (Manager)
These teams are responsible through the Director to a Council of 11 members.
Reporting
All managers report to the Director. Monthly Council meetings provide governance, strategic direction and make certain key operational decisions, for example, those relating to registration and the maintenance of professional standards and teacher education programmes.
The Council carries out its governance responsibilities through the
| Chair | Kathy Smith |
| Elected representatives: | |
| Early Childhood: | Margaret Wilson |
| Primary: | Jill Page |
| Secondary: | Steve Wood |
| Principals: | Nola Hambleton |
| Nominated by: | |
| New Zealand Educational Institute / Te Riu Roa | Diane Leggett |
| New Zealand Post Primary Teachers Association | Irene Symes |
| New Zealand School Trustees Association | Barbara Arnott |
| Ministerial appointment: | Lyn Brash |
| Ministerial appointment: | Margaret Franken |
| Ministerial appointment: | Toni Waho |
The Council reviews strengths, weaknesses, threats and opportunities when developing its strategic documentation. The Council has established an effective infrastructural development including the efficiency and effectiveness of core operational (e.g. registration), financial, corporate support and governance environments and structures.
The professional leadership initiatives identified by the Council's strategic plan, for particular focus in 2007-10 are:
The Council has an Audit and Risk Management Committee which meets at least quarterly. The committee reviews and provides advice to the Council on:
The following schedule details the key risks that the Council must manage and indicates the associated mitigation strategy.
Risk That the Council is unable to meet the service performance standards agreed with the Minister and described in this Statement of Intent. This risk may arise if key staff were not retained, or extra required staffing of a sufficient calibre could not be recruited. The risk may also arise if resources needed to be diverted from planned projects. In addition, there is a risk that projects involving wide stakeholder buy in may fail to gain support in order to be appropriately completed. These risks could occur across the Council's outputs and the service performance standards agreed for each output.
Mitigation
The Council is satisfied that the current and intended structure and staffing is appropriate for the forecast volume of activity. A sufficient resource has been allocated to contract additional staff where needed to manage projects appropriately. Standard project management processes are used to ensure projects are managed effectively. A coaching approach to staff management is building internal capacity and capability. The Council's communication strategy aims to secure stakeholder support for activities that will enhance the status and quality of the teaching profession.
Risk
That the Council may not generate sufficient revenue to complete the programme of activity described in the Statement of Intent.
Mitigation
The Council is satisfied that the approved fee structure will provide sufficient revenue to achieve the results required under this Statement of Intent for 2007-09. However, the Council notes that the last substantive review of registration fees was implemented in 2002. It is likely that a review and possible adjustment may be required in the 2009-10 financial year in order to maintain the current level of service.
Risk
That the Council's ICT infrastructure is inadequate to meet the projected level of demand.
Mitigation
A key element of this upgrade has been the replacement of the Registration/ Non Teacher Police Vetting/Finance systems. In the 2006-07 financial year, on-line web-assisted registration and streamlining of registration processing will be implemented.
Risk
That the Council loses the goodwill and support of the sector to the detriment of achieving its statutory obligations.
Mitigation
The Council will maintain a programme of regular contact and communication with key stakeholder groups and will endeavour to accept as many opportunities as possible to meet and discuss matters of mutual interest with teachers and related parties. Feedback will provide valuable information to inform current practice.
Risk
That the Council is required to hold a by election for one or more elected member(s) to the Council.
Mitigation
The Council will contract the management of the election process to an appropriately qualified service provider in sufficient time to ensure the associated risks are identified and addresses and will inform the sector through regular communication using multiple media.
Risk
That the Council has underestimated the level of complaints it has and will receive.
Mitigation
The Council has provided a specific contingency provision that has been calculated to be sufficient to accommodate a percentage increase in complaints above those estimated in the assumptions.
Risk
Teachers remain outside the registration system and yet are actively teaching in schools without holding the required registration and a current practising certificate.
Mitigation
The Council is actively working with the Ministry of Education to share data concerning those teachers registered and those teachers being paid. The Council has already planned a 13 step mitigation schedule and consider invoking these to ensure full compliance.
Risk
That the Council is unable to attract or retain skilled staff.
Mitigation
The Council has a growing reputation for delivery and service and this is enabling more potential employees to consider the Council as a place they may like to work. The Council has worked hard to build the basis of a sound HR Framework and begin refining issues such as organisational design, remuneration as benchmarked against the public sector and fair staff training and development opportunities. Introducing exit interviewing allows the Council to look at the reasons affecting retention and actively do something about any emerging trends. The Council has strategies under development or in place to assist in mitigating such a risk such as succession planning, a growing sense of team and teamwork and knowledge of and documentation of processes.
Risk
That the Council is unable to gain acceptance from the teacher education providers for the new Graduating Teacher Standards.
Mitigation
The process by which the Graduating Teacher Standards were developed has gained recognition from sections of the teacher education community in terms of authenticity and genuine consultation. Council staff will work with teacher educators to workshop the new standards and explore in a collegial manner the ways in which they may be implemented. The Council will conduct an extensive external review of the processes of approval, reapproval and monitoring of teacher education programmes. This review will explicitly demonstrate an objective and transparent approach.
Risk
Possible Avian Flu Pandemic that could jeopardise business as usual.
Mitigation
The Council has been communicating with staff through regular documentation, bulletins and advice through a range of internal and external media in preparation for a possible pandemic. The Council has taken part in the May 2007 Cruickshank Exercise and has reviewed its disaster recovery and business continuity plans in light of its findings. Plans are in place to take action at each stage of the possible pandemic spread. The Council is aware that it has legislative and regulatory requirements to maintain its business and service.
