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Kathy Smith |
Barbara Arnott |
| Chair | Chair: Audit & Risk Management Committee |
| Date 30 May 2008 | Date 30 May 2008 |
In fulfilling this purpose, the Council promotes the profession of teaching and encourages teachers to strive to attain the highest standards of professional service.
Through the promotion of professional learning and ensuring the maintenance of professional standards that attract and retain high calibre teachers to careers in education, 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.
To build a world-leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st century.
The mission and overarching purpose of the Council is to lead and support high standards for the teaching profession so that all learners have the opportunities they need to achieve their goals. Through this focus on quality teaching, the Council's strategies and operations complement those of the other agencies.
The following education initiatives help shape and inform the strategic goals and business plan of the Council:
The Council's contribution to these initiatives is to emphasise the importance of effective teaching for all children and young people. Through its professional projects and quality assurance mechanisms, the Council will also seek to influence the capability of teachers to meet the challenges of changes to teaching and learning contexts. There will be a particular focus on interventions to better meet the needs of Māori learners and Pasifika learners.
There are a number of initiatives and challenges facing New Zealand teachers over the next three years. These include:
The Council recognises that developing effective responses to these issues requires a collaborative and integrated approach within the education sector. In particular, the Council has opportunities to influence the nature of teaching, and thereby outcomes for learners, through its regulatory and professional roles at key points of entry to the profession and renewal of practising certificates. These provide the strategic focus for the Council's 2008-11 goals and to its opportunities to contribute to the overarching goal for the education sector.
These key entry points will be the major focus for the Council over the next three years. This will include:
The Council has identified four key goals over the next three years to support its vision of effective teaching to maximise learning opportunities for all children and young people. These are:
In addition, the Council's Strategic Plan 2008-11 identifies the following emphases in support of the key goals:
Selection into an approved initial teacher education programme is the first entry point to the profession. Graduates of these programmes need to demonstrate that they are able to meet the diverse learning needs of children and young people in changing social, cultural and economic contexts. It is from this pool of teachers that the profession will renew itself. Good quality graduates, equipped and supported to become excellent teachers, will in turn raise the status of the profession and so attract good candidates who apply for ITE programmes in the future.
What are we seeking to achieve?
The Council is seeking to achieve consistently well prepared graduates from all initial education programmes, who, with support from experienced colleagues, are able to effectively teach the learners they have responsibility for in their initial employment in their specialist settings. Secondly, such graduates should be equipped to benefit from induction and mentoring programmes and move to full registration as fully competent teachers.
Within this goal, the Council is seeking to ensure that there are graduates who are proficient in Te Reo Māori to meet the needs of learners who choose to be educated in Māori medium settings.
What will we do to achieve this goal?
In 2007, the Council published its Graduating Teacher Standards that were developed in consultation with the profession and which replace the Satisfactory Teacher Dimensions as the standards for initial teacher education graduates. These standards include requirements for graduates to promote learning for all children and young people.
Over the next three years, these standards will be embedded in our guidelines for approvals and re-approvals of ITE programmes, and thus into the programmes themselves and the programme requirements for graduates to demonstrate competence against the standards.
The Council is revising its processes by which it approves and reapproves ITE programmes to ensure that these processes efficiently and effectively assess the quality of ITE programmes.
The Council will also continue its three phased research programme to identify the particular requirements for graduates of Māori medium initial teacher education programmes that will inform the approval/reapproval processes of these tertiary institutions.
How will we demonstrate success in achieving this goal?
The measures for the effectiveness of Council interventions will focus on:
No matter how well prepared graduates are from ITE programmes, it is not until they have full responsibility for a group or groups of learners that they have the opportunity to embed theoretical learning into quality professional practice over a sustained period of time. Research studies have demonstrated that high quality induction and mentoring support in the first two or three years of teaching is critical to the ability of newly qualified teachers to achieve their full professional potential and to their retention in the profession.
In New Zealand, structured support for provisionally registered teachers (PRTs) has been resourced by government for many years. Although many instances of good practice exist, research, including the Council's Learning to Teach investigation, has shown system wide deficiencies in this support. In particular, the critical role of the mentor teacher in supporting in-depth pedagogical development of the PRT has been high-lighted along with the lack of adequate mentor teacher development and support provided for these roles.
Strengthening the quality and consistency of induction support to newly qualified teachers will have a significant effect on the quality of teaching and learning for children and young people in New Zealand.
What are we seeking to achieve?
The goal is to achieve consistently high quality induction and mentoring of all provisionally registered teachers in New Zealand to maximise their potential as teachers and to retain a higher percentage of them in the profession for longer periods of time than at present.
What will we do to achieve this goal?
The Council will trial appropriate guidelines of induction programmes and mentor teacher development and support via a series of pilots in early childhood education settings and schools, including Māori medium. From these, the Council will identify and develop appropriate models of mentor teacher development and support, and disseminate best induction methods and practices for mentoring.
The Council will work with Government and other key stakeholders to build the provision of consistently high quality induction programmes and mentor teacher development and support.
The Council will improve its communications with PRTs and those who support them, particularly through enhancements to its website.
How will we demonstrate success in achieving this goal?
Success will be seen in such indicators as retention of teachers, quality teaching and expressed confidence of PRTs in their induction programmes and teaching experiences. The Council will gather data using such methods as:
Gaining a practising certificate as a fully registered teacher is the final point of entry to the profession. It is important that both the public and the profession have a clear statement of what is involved in being an effective teacher in New Zealand, whether in an early childhood setting, school or kura.
This acts as a beacon for the profession and a guide for the learning and assessment of those becoming or supporting others to become fully fledged members of the profession. Similarly, for experienced teachers, the criteria provide a framework for their on-going professional learning and development, as well as an assurance to the profession and public that teachers have continuing professional competence.
What are we seeking to achieve?
The standards used to gain full registration and maintain a practising certificate need to validly represent the professional knowledge, skills, relationships and values that will meet the needs of all learners and that are valued by the profession.
In addition, the assurance processes used to attest that teachers meet the critieria also need to be robust, fair and valid. These are issues the Council will continue to work through with the profession over the next three years.
The Council is seeking to strengthen and future proof the criteria for quality teaching required for registered teachers and gain the support of the profession for these standards. In reviewing the criteria, the Council will also be seeking to clarify categories of registration for teachers whose work support learning, but may not be directly in a teaching role.
What will we do to achieve this goal?
The Council has reviewed the Satisfactory Teacher Dimensions (STDs) and developed draft Registered Teacher Criteria (RTC) to replace the STDs as benchmarks for the gaining and maintaining of Full Registration. The Council will now consult widely with the profession on the RTC.
In 2009, the Council will pilot the revised RTC and the revised assurance processes in a range of settings. As part of the pilots, it will seek to develop guidelines to help professional leaders make good decisions when assessing teachers against the RTC.
As part of the review of the Satisfactory Teacher Dimensions, it will also review and clarify categories of registration for teachers in a variety of roles by consulting with the profession.
In 2010, the revised RTC and assurance processes will be implemented throughout the profession. To support this implementation, the Council will provide professional development for those involved in supporting and assessing teaching colleagues to achieve or maintain proficiency in the RTC.
How will we demonstrate success in achieving this goal?
The pilots for the RTC will be formally evaluated. This will ascertain if they are seen as a valid representation of the complex role of teaching, and if the assessment and assurance processes are both workable and robust.
Success will also be seen in the degree to which the standards are accepted and used to replace other standards, particularly those currently used in the performance management systems mandated by the Ministry of Education and embedded in collective agreements in some cases.
There is strong evidence that professional leadership focused on learning makes a significant difference to learning outcomes for children and young people. Professional leaders have a particularly important responsibility as leaders of learning, including the professional learning and development of teachers.
What are we seeking to achieve?
The Council is seeking to improve and strengthen the degree to which professional leaders have a shared understanding of the standards and good practices needed for induction and mentoring of PRTs and of the assessment and assurance processes for gaining and maintaining full registration. In the New Zealand context of self-managing schools and centres, it is a challenge to gain such consistency of understanding across so many individual sites.
Through structured professional support to mentors, the Council also seeks to strengthen the leadership capability and capacity within the profession that will promote teaching and learning and lead to greater gains in learners' achievements and life outcomes for all students.
The Council is also seeking to further strengthen professional leadership in Māori medium and early childhood education settings, so that professional practice in those settings is of a high quality and supports good and equitable educational outcomes for learners.
What will we do to achieve this goal?
The Council will
The Council is also working with groups and individuals in the Māori medium and early childhood education sector to explore ways of supporting the development of professional leadership in those sectors. Work programmes arising from that consultation will be progressively implemented in the next three years.
How will we demonstrate success in achieving this goal?
Achievement of this goal will be reflected in the measures of the successful implementation of:
As part of its strategic planning process for the 2007-08 financial year, the Council agreed to review its current structure and composition to determine:
In 2008-09, the Council proposes to consult with the sector to obtain stakeholder views on the current structure and composition of the Council.
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 formal evaluation research methodologies, consultation with other education sector agencies, peer review, and stakeholder feedback.
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.
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 Council focuses on achieving an internal environment that gives staff the support and encouragement to enable them to achieve the Council's goals in an efficient and effective manner.
This requires that the Council has the staffing capacity to achieve these goals.
Staffing Structure
The Council's staffing structure for 2008-09 will include:
|
Executive |
Director
Executive Assistant |
| Corporate Services | Corporate Services Manager
ICT Advisor/Analyst ICT Systems Administrator Accountant Administrative Assistance (0.5) Non Teacher Police Vetting Officer (0.75 x 2) |
| Registration | Manager Registration
Team Leader Registration Team Leader Customer Service & Office Administration Registration Officers & Qualifications Evaluation x 10 Contact Centre x 4 Data Entry x 2 Administrative Assistant (0.25) |
| Teacher Practice | Senior Advisor Teacher Practice
Advisor Teacher Practice (0.5) Legal Administrators x 3 Administrative Assistant |
| Teacher Education | Senior Advisor Teacher Education
Administrative Assistant (0.5) |
| Policy and Strategic Development | Manager Policy and Strategic Development
Policy Analyst Research Analyst Policy Advisor Early Childhood Policy Advisor Māori Senior Administrator |
The Council has completed a survey of the current gender; age and ethnicity of its employees to help inform its recruitment and selection of future employees (see Appendix 3).
Registration activity has increased with the Council assuming a greater role in the processing of overseas applicants. The Council has increased its staffing to deal with this.
The Council has also formed an additional Complaints Assessment Committee (CAC) and an Impairments Committee that will be fully operational in 2008-09. The Council has employed additional staff to service these committees.
The Council currently has the capacity to fulfil its statutory role and functions. However, over the next three years the Council will undertake a significant review of programmes and activities to support the ongoing high standards of the profession. This will require additional expertise in the areas of programme and project management and analysis, and extra resources to implement any changes resulting from these reviews.
Good Employer Requirements
The Council is committed to being a good employer and currently has formal policies and practices that inform each of the elements that comprise a sound employment programme (see Appendix 4).
Staff will continue to be informed of the Council's good employer and associated policies during formal induction, by regular staff training and feedback of policy updates. The Council respects the expertise of its staff and encourages opportunities for input to improving workflow processes and workplace environment by regular team meetings.
The Council will monitor its performance against each of the elements that inform a good employer programme. The analysis of Human Resources data informs this evaluation.
To further evaluate its performance as a good employer, the Council's medium term goals in this area are:
|
Goal |
Outcome |
| To produce and implement a formal EEO programme driven by organisational values | Reporting results to Council in June 2009 |
| To audit impartial selection of suitably qualified candidates for appointment over the next 12 month period | Reporting results to Council in June 2009 |
| To ensure procedural fairness is maintained for all HR strategies, systems and practices over the next 12 month period | Reporting results to Council in June 2009 |
| To measure and report on opportunities for the enhancement of the abilities of individual employees | Reporting results to Council in June 2009 |
| That the employment of Māori and Pasifika is encouraged at all levels of the organisation by maintaining and utilising Māori and Pacific networks and relationships to attract Māori and Pacific applicants | Reporting results to Council in June 2009 |
In addition, the Council will be undertaking further enhancements to its teacher registration system (TCR).
Document Management Project
The Council holds large repositories of paper records, information and electronic data that require streamlining in terms of its storage, retrieval and security. Based on the feasibility study and information mapping project completed in 2007, a comprehensive understanding of the types of information and records kept by the Council was reached.
The next stage in this work is an internal reorganisation of the Council's documentation practices and the installation of an electronic document and records
management system.
On-line Registration
Once the further enhancements of the TCR system have been made, the Council will begin to make the technical and legislative changes required to provide fully on-line registration.
The Council is vigilant in its financial planning, taking into account its three-year practising certificate income cycle. It continues to check the methodology applied to income recognition and the application of fee income to outputs and, in 2008-09, the Council will again review the costs of processing registration applications. The Council is inherently cash rich, mainly due to the timing of the fee income and the ability of the Council to deliver its core business. As it has a small fixed asset base and is unable to raise external debt, it is totally reliant on the fee income to conduct its core legislative activities and policy projects.
In considering possible increases in existing sources of revenue, (including retrieving fees from teachers who are unlawfully employed, programme approval costs, and generating income from new sources), the Council is mindful of the balance between delivery of projects to the education sector and ensuring prudent expenditure of fees received.
The Council has not raised registration fees since 2003. It is forecasting the need for such an increase in the medium term. The Council will ensure that the sector is well informed prior to any increase in the fee and will also provide justification for the level of any proposed fee increase. This would take into account increases in actual organisational and service costs.
The Council has introduced the New Zealand International Financial Reporting Standards (NZIFRS) in preparation for reporting against these new standards in 2008-09.
2008-09 Outputs
|
Total Revenue |
$4,895,316 |
| Total Expenditure | $6,856,672 |
| Surplus (Deficit) | $(1,961,356) |
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.
| Teacher Registration | 2008/09 |
| Revenue | $2,039,197 |
| Expenditure | $1,937,282 |
| Surplus (Deficit) | $101,915 |
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 | Applications | Standard for Quarter |
| Application for Registration | Actual numbers | Budget |
| Renewal | Actual numbers | Budget |
| Provisional/STC to Full | Actual numbers | Budget |
| Quantity | Applications declined by category* | Applications closed by category* |
| Application for Registration | ||
| Renewal | ||
| Provisional/STC to Full Registration |
*Applications are declined when they do not meet the Council policy. This could be in qualifications, service, language proficiency and /or good character. Applications are closed if the applicant has failed to respond satisfactorily to requests for information. At this point there would have been more than four communications generated.
| 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% | |
| Maintenance of Professional Standards | 2008/09 |
| Revenue | $990,108 |
| Expenditure | $1,403,307 |
| Net Surplus (Deficit) | $(413,199) |
The objectives of this output are to:
acceptable teacher competence and professional behaviour.
|
Quality |
Standard | Quarterly Actual |
| Web register is accurate and up to date within 2 working days of a decision | 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 referrals from CAC to competence | 15 | ||
| Number of competency complaints and mandatory reports received | 50 | ||
| Number of competency complaints and mandatory reports resolved* | 50 | ||
| Number of conduct/competence cases determined by the Council | 50 | ||
| Number of cases referred by CAC to DT | 15 | ||
| Number of cases resolved* by DT | 15 |
*Resolved means that the CAC has completed its investigation.
|
Timeliness |
Standard | Quarterly Actual |
| Percentage of cases presented to CAC for first consideration within three months | 95%* | |
| Percentage of CAC cases resolved within 2 years | 70% | |
| Percentage of competency cases resolved within a period of three years (term of a practising certificate) | 90% | |
| Percentage of Disciplinary Tribunal cases determined within nine months | 75% |
* Some CAC cases cannot be considered until all parties have agreed to the process.
| Professional Leadership | 2008/09 |
| Revenue | $1,279,224 |
| Expenditure | $3,010,560 |
| Surplus (Deficit) | $(1,731,336) |
The objectives of this output are to:
|
Quality |
Standard | YTD Actual | Quarterly Actual |
| 1. Research projects are monitored appropriately and lead to policy advice to Council and stakeholders | 100% | ||
| 2. Research and other projects involve stakeholder representation as appropriate | 100% | ||
| 3. Research and other projects involve consultation with stakeholders as appropriate | 100% | ||
| 4. Research and development projects use appropriate evaluation strategies for planning, implementation and review | 100% | ||
| 5. Policies and policy advice are developed in accordance with the Council's requirements for quality policy development | 100% |
|
Quantity & Timeliness |
YTD Actual * | Quarterly Actual * |
|
Review of Satisfactory Teacher Dimensions | ||
|
1. Consult with the profession on the draft revised Satisfactory Teacher Dimensions (Registered Teacher Criteria) by December 2008 |
||
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2. Engage five clusters of teachers in the pilot for the draft Registered Teacher Criteria from February 2009 to December 2009 |
||
| Quantity & Timeliness | YTD Actual * | Quarterly Actual * |
|
Induction and Mentoring Project | ||
|
3. Establish five programmes to pilot draft guidelines for induction programmes & mentor teacher development and support from February 2009 to December 2009 |
||
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Review of policy and guidelines for approvals / reapprovals of ITE programmes | ||
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4. Revise the procedures and guidelines for the approval/reapproval of ITE programmes by June 2009 |
||
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5. Publish the revised procedures and guidelines for the approval/reapproval of ITE programmes by June 2009 |
||
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Development of Registration Policy | ||
|
6. Consult with key stakeholders on the Council's Registration Policy by June 2009 |
||
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Code of Ethics Workshops | ||
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7. Complete 4 workshops on Ngā Tikanga Matatika (Code of Ethics) by June 2009 |
||
|
Reo Proficiency Research Project | ||
|
8. Let contract for Phase 2 of a research programme to support te reo Māori proficiency in ITE programmes by February 2009 |
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9. Receive the first milestone report for the field research stage of Phase 2 of the research programme to support te reo Māori proficiency in ITE programmes by June 2009 |
||
| Teacher Education | 2008/09 |
| Revenue | $426,767 |
| Expenditure | $339,912 |
| Surplus (Deficit) | $86,855 |
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 and revised guidelines 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 | 37 |
| Timeliness | Standard |
| Percentage of all programme approvals/reapprovals 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 Council has no control over the number of applications for the approval of new teacher education programmes.
| Non Teacher Police Vetting | 2008/09 |
| Revenue | $160,020 |
| Expenditure | $165,611 |
| Surplus (Deficit) | $(5,591) |
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 | 18,000 |
* 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.
|
Timeliness |
Standard | YTD Actual | Quarterly Actual |
| * Percentage | |||
| Turnaround of vet result, from New Zealand Police, processed within 5 working days | 80% |
The New Zealand Teachers Council is an Autonomous 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.
The Council is also an Autonomous Crown Entity as defined by the Crown Entities Act 2004 and is domiciled in New Zealand.
The Council's primary objective is to provide public services to the New Zealand Public, as opposed to making a financial return.
Accordingly, the Council has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZIFRS).
The prospective financial statements of the Council are for the year ended 30 June 2009, and were approved by the Council on 28 May 2008.
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.
Statement of Responsibility
We accept responsibility for the preparation of the statements of account and the judgements used therein. The financial statements have been prepared on the basis of generally accepted accounting practice and 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.
We acknowledge the establishment and maintenance of internal control procedures and that internal control procedures are considered to be sufficient to provide a reasonable assurance as to the integrity and reliability of financial and non-financial reporting.
|
Kathy Smith |
Barbara Arnott |
| Chair | Chair: Audit & Risk Management Committee |
| Date 30 May 2008 | Date 30 May 2008 |
Adoption of New Zealand equivalents to International Financial Reporting Standards
The Accounting Standards Review Board (ASRB) 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 will occur for the year ended 30 June 2008. The prospective financial statements for the year ended 30 June 2008 have been prepared in accordance with NZ IFRS. The comparative figures (years ended 30 June 2007 and 2008) have been reported under NZ IFRS.
Entities complying with the New Zealand equivalents to IFRS for the first time are 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. It has therefore elected to report as a public benefit entity for the purposes of NZ IFRS.
Measurement System
The Council's Financial Statements comply with generally accepted accounting practice and NZ IFRS.
The measurement base adopted is that of historical cost.
Basis of Preparation
Statement of Compliance
The financial statements of the Council have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZGAAP).
The Financial statements comply with NZIFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.
First year of preparation under NZIFRS
This is the first set of financial statements prepared using NZIFRS, and comparatives for the year ended 30 June 2007 have been restated to NZIFRS accordingly.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZIFRS statement of financial position as at 1 July 2006 for the purposes of the transition to NZIFRS.
The preparation of financial statements that conform to NZIFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which forms the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
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.
Measurement base
The financial statements have been prepared on a historical cost basis, except where modified by the measurement of equity investments and derivative financial instruments at fair value.
Functional and presentation currency
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Council is New Zealand dollars.
Revenue
New Zealand Teachers 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 installments over three years and from 1 July 2004. A portion of the revenue received from practising certificate fees is recognised in the month of receipt.
Revenue from fees received after 30 June 2004 is allocated proportionally over the period to which it relates. The unearned portion of fees is shown under current liabilities.
Interest income is recognised using the effective interest method.
All other revenue is recognised when earned and is reported in the financial period to which it relates.
Goods and Services Tax
All items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as an 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 the 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.
Taxation
The New Zealand Teachers Council is a public authority in terms of the Income Tax Act 2004 and consequently is exempt from income tax.
Accounts Receivable
Accounts receivable are measured at their carrying value which approximates their fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.
Bad Debts are written off during the period in which they are identified.
Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise deposits with banks and bank and cash balances, net of bank overdrafts. Deposits are included when they have a maturity of no more than three months from the date of acquisition.
Term Deposits
At each balance date the Council assesses whether there is any objective evidence that a term deposit is impaired.
Investment in term deposits are initially measured at their carrying value which approximates their fair value plus transaction costs if any.
After initial recognition the term deposits are measured at amortised cost using the effective interest method.
For term deposits, impairment is established when there is objective evidence that the Council will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter bankruptcy, and default in payments are considered indicators that a deposit is impaired.
Property, Plant and Equipment
The major classes of Property, Plant and Equipment are as follows:
Office Equipment
Computer Equipment
Furniture & Fittings
Office Fitout
Items of Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses.
Property, Plant and Equipment vested from the Teacher Registration Board on 1 February 2002 were transferred at their net book values. The vested assets will continue to be depreciated over their remaining useful lives.
Additions
The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.
Where an asset is acquired at no cost, or obtained for a nominal cost, it is recognised at fair value when control over the asset is obtained.
Disposals
Where an item of plant and equipment is disposed of, the gain or loss recognised in the statement of financial performance is calculated as the difference between the net sales price and the carrying amount of the asset.
Subsequent costs
Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.
The costs of day-to-day servicing of property, plant and equipment are recognised in the statement of financial performance as they are incurred.
Depreciation
Depreciation is charged to the statement of financial performance using the straight-line method. Depreciation is set at rates that will write off the cost or fair value of the assets, less their estimated residual values, over their useful lives. The estimated useful life and resulting rates are as follows:
| Class of Asset | Estimated Life | Depreciation Rate |
| Office Equipment Computer Equipment
Furniture & Fittings Office Fitout |
5 Years
3 Years 15 Years 5 Years |
20%
33.3% 6.7% 20% |
The residual value of assets is reassessed annually.
Intangible Assets
Software acquisition and development
Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and to bring to use the specific software.
Costs that are directly associated with the development of software for internal use by the Council, are recognised as an intangible asset. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads.
Staff training costs are recognised as an expense when incurred.
Costs associated with maintaining computer software are recognised as an expense when incurred.
Costs associated with the development and maintenance of the Council website are recognised as an expense when incurred.
Amortisation
Amortisation is charged to the statement of financial performance on a straight-line basis over the useful life.
The estimated useful life is as follows:
| Estimated Life | Amortisation Rate | |
| Acquired Software | 3 years | 33% |
| Developed Software | 3 years | 33% |
The Intangible assets above are deemed to have finite lives.
Impairment of non-financial assets
Property, Plant and Equipment and intangible 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 recognised for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the assets ability to generate net cash inflows and where the Council would, if deprived of the asset, replace its remaining future economic benefits or service potential.
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.
The total impairment loss is recognised in the statement of financial performance.
The reversal of an impairment loss is recognised in the statement of financial performance.
The Council does not own land and buildings and consequently does not do asset revaluations.
Creditors and Other payables
Creditors and other payables are initially measured at their carrying values which approximate their fair value and subsequently measured at amortised cost using the effective interest method.
Employee Entitlements
Short-term employee entitlements - employee entitlements that Council expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.
These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date and sick leave.
The Council recognises a liability for sick leave, if material, to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date; to the extent the Council anticipates it will be used by staff to cover those future absences.
The Council does not have bonus schemes or long service leave available to staff.
Superannuation schemes
Obligations for contributions to KiwiSaver and Government Superannuation Fund are accounted for as defined contribution superannuation schemes and are recognised as an expense in the statement of performance as incurred.
Operating Leases
Operating lease payments, 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 on a straight-line basis over the term of the lease.
Financial Instruments
The Council uses financial instruments as part of its normal operations. These financial instruments include cash and cash equivalents, debtors, term deposits, and creditors. All financial instruments are recognised in the Statement of Financial Position and all revenues and expenses in relation to financial instruments are recognised in the statement of financial performance. All financial instruments are
recognised and stated at fair value.
Cash flow statement
The Cash Flow Statement is prepared exclusive of GST, which is consistent with the method used in the Statement of Financial Performance.
The following are the definitions of the terms used in the Cash Flow Statement:
(a) Operating activities include all transactions and other events that are not investing or financing activities.
(b) Investing activities are those activities relating to the acquisition, holding and disposal of Property, Plant and Equipment and of investments. Investments can include securities not falling within the definition of cash.
(c) Financing activities are those activities that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash.
(d) For the purposes of the Cash Flow Statement, cash and cash equivalents comprise deposits with banks and bank and cash balances, net of bank overdrafts. Deposits are included when they have a maturity of no more than three months from date of acquisition.
Cost Allocation
New Zealand Teachers Council has five outputs outlined in the Statement of Intent. These are Teacher Registration, Maintenance of Professional Standards, Teacher Education, Professional Leadership and Non Teacher Police Vetting. The Council has derived the cost of each output using the system outlined below.
Direct costs are charged directly to the outputs. Indirect costs are charged to outputs based on appropriate cost drivers such as actual usage, staff numbers and
floor area.
Direct costs are those costs directly attributable to an output. Indirect costs are those that cannot be identified in an economically feasible manner with a specific output.
Indirect costs are those costs which cannot be identified in an economically feasible manner with a specific output.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies used for the preparation of the financial statements have been applied on a basis consistent with previous years other than those resulting from the transition to NZIFRS.
The Council maintains the assumption from projected data that 38,717 applications for registration will be received over the following year. This assumption averages at 73% 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.
Accompanying accounting policies and notes form an integral part of these prospective financial statements.
Accompanying accounting policies and notes form an integral part of these prospective financial statements.
Accompanying accounting policies and notes form an integral part of these prospective financial statements.
Accompanying accounting policies and notes form an integral part of these prospective financial statements.
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 Standards
Linda Gendall (Manager)
Teacher Education
Awaiting appointment (Manager)
Approval and reapproval of Initial Teacher Education programmes for each of the sectors:
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 | Awaiting Appointment |
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.
Mitigation
The Council is satisfied that the current and intended structure and staffing is appropriate for the forecast volume of activity. Sufficient resource has been allocated to contract additional staff where needed to manage projects, such as the Review of the Satisfactory Teacher Dimensions 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.
Likelihood of the risk
Medium
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 2008-09. However, the Council notes that the last substantive review of registration fees was implemented in 2002. A review and adjustment will be required by the 2010-11 financial year in order to maintain the current level of service.
Likelihood of the risk
Medium
Risk
That the Council loses the goodwill and