2013 Performance

Tertiary enrolments

Measured as equivalent full-time students (EFTS), enrolments in formal, provider-based tertiary study1 decreased by two percent in 2013 and by three percent in terms of the number of students enrolled.
Figure 3: Total student numbers, industry trainees and international students, 2010–13
Figure 3: Total student numbers, industry trainees and international students, 2010–13 Notes:
  1. The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.
  2. FFTO Data relates to trainees with a placement start-date during the year. Individuals who enrolled in more than one programme will be counted in each programme.

Overall, 410,912 students, or 277,604 EFTS (this figure excludes industry training) were enrolled in formal qualifications at TEOs in 2013. Of these, 232,340 EFTS (349,803 students), were Student Achievement Component (SAC) enrolments, 9,202 were Foundation-Focused Training Opportunity (FFTO) funded placements, 28,510 EFTS (41,943 students) were international full-fee paying students, and 7,541 EFTS (9,953 students) were enrolled in the Youth Guarantee programme.

In 2013, there were also 129,307 trainees (42,087 Standard Training Measures) engaged in industry-based training, including 15,810 in Modern Apprenticeships.

Figure 4: Proportion of students and industry trainees in the population and workforce, 2010–13
Figure 4: Proportion of students and industry trainees in the population and workforce, 2010-13 Notes:
  1. Population and workforce based calculations uses figures retrieved from Statistics New Zealand.
  2. The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Of those aged 15 years and over in the New Zealand population, 10.4 percent were engaged in formal provider-based education and 3.8 percent were engaged in industry training (see figure 4). Industry trainees accounted for 5.7 percent of the workforce. Overall, participation rates changed fractionally in 2013, with a 0.6 percent drop in the number of industry trainees in the workforce.

Since 2009 domestic formal provider-based enrolments have shifted towards degree-level courses and above, however, following some significant shifts in 2012, proportions across the New Zealand Qualifications Framework (NZQF) levels remained similar in 2013 compared with the previous year.

Figure 5: Participation by NZQF level, 2010–13
Figure 5: Participation by NZQF level, 2010-13

In 2013 the majority of delivery was at Levels 7–8 (55%), followed by Levels 3–4 (22%), Levels 5–6 (11%), Levels 1–2 (7%) and Levels 9–10 (5%) (see figure 5). The largest proportion of enrolments was in Society and Culture (26%), followed by Management and Commerce (16%), and Health (11%) (see figure 6).

The majority of delivery was at Levels 7–8 (55%)

Figure 6: Enrolments by subject, 2012 and 2013
Figure 6: Enrolments by subject, 2012 and 2013

Attendance across 2013 enrolments was made up of 88 percent intramural (students physically present in scheduled teaching sessions) and 12 percent extramural (where students are not required to regularly attend courses on campus), including students living overseas. This is a one percentage point drop in the proportion of extramural enrolments, compared with 2012.

The enrolment mix across the ethnicities showed the proportion of Māori increased slightly (from 20% in 2012 to 21% in 2013), while the proportion of European students decreased fractionally (from 62% to 61%.) (see figure 7).

Figure 7: Enrolments by ethnicity 2010–13
Figure 7: Enrolments by ethnicity 2010-13 Note:
Total may exceed total EFTS or 100% as some students identify with more than one ethnicity.

Performance against TES priorities

In 2013 the tertiary education sector continued to improve its performance against the priorities set out in the Tertiary Education Strategy (TES).

This section outlines important aspects of the sector’s performance against the seven TES priority areas. Owing to the availability of performance measures, the performance sections for each sector focus on the performance of the TES priorities for the youth, Māori and Pasifika student groups.

TES Priority: Increasing the number of young people achieving qualifications at Level 4 and above, particularly degrees

Overall in 2013 participation and the educational performance of young people (those under 25 years of age) remained at similar levels compared with 2012. The volume of youth enrolments decreased by one percent compared with 2012 (1,216 EFTS) and remained the same percentage (59%) of all formal provider-based enrolments. As a proportion of total industry trainees, under-25-year-olds went up compared with the previous year and accounted for 35 percent (from 33 percent in 2012) (see figure 8).

In 2013, 79 percent of total youth enrolments were in programmes at Level 5 and above and there was a slight increase in the percentage of youth enrolments at Levels 7–8 from 2012 (67% to 68% in 2013).

Figure 8: Participation by students under 25 years, 2010–13
Figure 8: Participation by students under 25 years, 2010-13 Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Overall educational performance of youth continued to improve across all tertiary sectors in 2013

The overall educational performance of youth continued to improve across all tertiary sectors in 2013. Youth educational performance remained the strongest compared with the total student cohort. Across the sectors the average youth course completion rate was the highest at universities and the qualification completion rate was the highest at PTEs, which was also the case in 2012 (see figure 9). These variances across sectors reflect the characteristics of qualifications offered by each sector, for instance, PTE-sector enrolments are generally for qualifications that take a much shorter time to complete than university degrees.

Figure 9: Participation and achievement by students under 25 years, 2013
Figure 9: Participation and achievement by students under 25 years, 2013

Youth accounted for 35 percent of all industry trainees in 2013, of which 48 percent were engaged in training at Levels 4 and above. Achievement by this group was higher than the overall youth cohort in industry training, with 78 percent credit completion and 74 percent qualification completion in Level 4 and above programmes.

In 2013 youth engaged in targeted programmes comprised 7,541 Youth Guarantee EFTS (9,953 students) and 3,687 FFTO trainees aged under 25. For Youth Guarantee students, the course completions rate was 61 percent and the qualification completion rate was 52 percent. For those completing FFTO, 38 percent went on to further education and 42 percent to employment in 2013.

TES Priority: Increasing the number of Māori students enjoying success at higher levels

In 2013 Māori enrolments in formal provider-based education increased by 380 EFTS and accounted for 21 percent of all students (from 20 percent in 2012). Māori also accounted for 18 percent of total industry trainees in 2013 (from 17 percent in 2012) (see figure 10).

Māori educational performance continued to improve across the tertiary sector in 2013

The spread of Māori enrolments continued to dominate across Levels 3–4 (38%) and Levels 7–8 (34%). The continued emphasis across degree-level and above was evidenced with a 155 EFTS increase in Level 7 and above in 2013.

Figure 10: Participation by Māori students, 2010–13
Figure 10: Participation by Māori students, 2010-13 Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

Māori educational performance continued to improve across the tertiary sector in 2013. As in the previous year the course completion rate was the highest at universities and the qualification completion rate the highest at PTEs.

Māori trainees engaged in industry training at Level 4 and above accounted for 32 percent of the total Māori trainees. Achievement for this group was stronger than for all other Māori trainees, with 72 percent credit completion and 77 percent qualification completion (see figure 11).

Figure 11: Participation and achievement by Māori students, 2013
Figure 11: Participation and achievement by Māori students, 2013

TES Priority: Increasing the number of Pasifika students achieving at higher levels

Pasifika enrolments increased in 2013 by 504 EFTS, while the proportion of Pasifika formal provider-based students remained the same as in 2012 (9%). Pasifika students accounted for seven percent of total industry trainees in 2013 (see figure 12).

Pasifika enrolments increased at Levels 7–8 to account for 43 percent of Pasifika enrolments (from 42% in 2012) but maintained a spread similar to 2012 across other levels.

Figure 12: Participation by Pasifika students, 2010–13
Figure 12: Participation by Pasifika students, 2010–13 Note:
The 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and they are not strictly comparable to previous years. More information on the impact of the ITR can be found on the TEC website.

In line with other TES priority groups, the educational performance for Pasifika students generally improved in 2013 across all sectors. The strongest performance was across the wānanga sector, with 81 percent course completion and 76 percent qualification completion.

Pasifika trainees engaged in industry training at Level 4 and above accounted for 24 percent of total Pasifika enrolments but demonstrated strong achievement, with 69 percent credit completion and 74 percent qualification completion across programmes at Level 4 and above (see figure 13).

Figure 13: Participation and achievement by Pasifika students, 2013
Figure 13: Participation and achievement by Pasifika students, 2013

TES Priority: Increasing the number of young people moving successfully from school into tertiary education

Youth Guarantee is a fees-free programme aimed at increasing the educational achievement and qualifications of those 16- and 17-year-olds not engaged in education. In 2013 all former Youth Training TEOs shifted to an EFTS-based funding model using the Single Data Return (SDR), which allows for comparability of performance and participation for all Youth Guarantee providers. In 2013 the number of learners accessing Youth Guarantee-funded programmes increased from 8,901 in 2012 to 9,953 (7,541 EFTS). Māori and Pasifika participation remained high, compared with SAC-funded delivery, at 46 percent and 18 percent respectively. Performance for the Youth Guarantee fund shows course completion by subsector had PTEs at 57 percent, ITPs at 70 percent and wānanga at 72 percent. The qualification completion rate shows PTEs at 49 percent, ITPs at 60 percent and wānanga at 62 percent.

In addition, Trades Academies continued to provide opportunities for senior secondary school students to simultaneously achieve credits towards National Certificate of Educational Achievement (NCEA) Level 2 and one or more tertiary qualifications. In 2013 the TEC continued to administer funding for the 10 TEO-based Trades Academies, as well as Manukau Institute of Technology’s School of Secondary-Tertiary Studies. In 2013 the number of funded places grew to 2,287, from 1,806 in 2012.

TES Priority: Improving literacy, numeracy and skills outcomes from Levels 1–3 study

In 2013 the National Centre of Literacy and Numeracy for Adults/Tukua Kia Rere continued to work with the TEC to support TEOs in improving the literacy and numeracy outcomes of learners. The TEC will continue to ensure the tertiary sector uses the Assessment Tool according to Government requirements for all foundation-level provision.

Youth Guarantee-funded courses had higher usage of the Assessment Tool than SAC-funded courses

Forty-six percent of all foundation-level learners required to take an initial numeracy assessment did so and 25 percent of learners required to take a progress numeracy assessment did so. Fifty-six percent of all learners required to take an initial reading assessment did so and 29 percent of learners required to take a progress reading assessment did so.

Youth Guarantee-funded courses had higher usage of the Assessment Tool than SAC-funded courses and Assessment Tool usage was highest in the PTE sector.

TES Priority: Improving the educational and financial performance of providers2

In 2013 providers continued to focus on lifting educational performance for all learners. In general, performance improved or remained on par with the previous year (see figure 14). Course completion and student progression rates remained steady compared with 2012, while qualification completion and student retention rates increased in 2013.

Figure 14: Participation and achievement, 2012 and 2013
Figure 14: Participation and achievement, 2012 and 2013

Total revenue for TEIs was $4.63 billion in 2013, an increase of $48.6 million (1.6%) since 2012. This was largely due to increases in domestic and international student fees and other revenue.

TEIs recorded a net surplus after unusual and non-recurring items of $231.6 million (or 5.0%) for the financial year ended 31 December 2013 (see table 4). This is an increase of $130.7 million over the 2012 result of $100.9 million3.

Table 4: Overview of financial performance for all TEIs
Key performance metrics 2011 2012 2013 TEC minimum
guidelines
Net surplus (after unusual and non-recurring items) 4.3% 2.2% 5.0% 3.0%
Net cashflow from operations 116.2% 115.1% 114.7% 111.0%
Liquid funds 20.5% 23.1% 18.8% 8.0%
3-Year average return on property, plant equipment and intangibes 6.8% 7.1% 6.9% 4.5%
Summary financial
statements (NZ$000)
2011 2012 2013 % of 2013
​category
Revenue        
Total government revenue $2,202,070 $2,229,525 $2,224,592 48%
Domestic student fees $818,688 $850,807 $861,396 19%
International student fees $379,015 $403,875 $424,489 9%
Other income (including research) $1,077,830 $1,078,209 $1,115,834 24%
Total revenue $4,477,602 $4,562,416 $4,626,311 100%
Assets        
Property plant equipment and intangibles $7,892,976 $8,066,566 $8,398,532 85%
Other assets $1,359,601 $1,412,361 $1,493,722 15%
Total Assets $9,252,577 $9,478,927 $9,892,254 100%
Equity (net assets) $7,816,453 $7,906,183 $8,346,039  

The 2013 measures take into account net unusual income items of $78.1 million. Canterbury-based TEIs contributed $83.5 million of unusual income items to this result, while the ITP sub-sector saw unusual expense items of $6.1 million.

The sector-wide surplus before unusual items was $153.5 million or 3.3%, a reduction of $5.4 million (3.4%) since 2012. The sector-wide result both before and after unusual items remained above the TEC recommended target of three percent of total income.

Total assets increased by $413 million, taking the total asset base of the sector to $9.9 billion. This was driven by an increase in the value of property, plant, equipment and intangibles of $332.0 million.

Figure 15: TEI surplus (after unusual and non-recurring items)
Figure 15: TEI surplus (after unusual and non-recurring items)

TES Priority: Strengthening research outcomes

The number of postgraduate enrolments across the tertiary sector increased

The number of postgraduate enrolments across the tertiary sector increased fractionally by one percentage point compared with 2012 and accounted for 12 percent (27,592 EFTS) of all formal provider-based enrolments.

Under the Performance-Based Research Fund (PBRF), research and degree completions increased from 3,825 in 2012 to 3,974 in 2013 and external research income decreased from $410.2 million to $396.3 million.

The Government’s investment in Centres of Research Excellence (CoREs) continued to strengthen research outcomes in 2013, with CoREs continuing to conduct collaborative strategically focused research, which contributes to national capability development and knowledge transfer.

The Ministry of Education completed its review of CoREs policy in 2013. The review found CoREs policy supports high-quality research in a tertiary context, with positive social and economic benefits to New Zealand. As a result of the review, a new performance monitoring framework is being developed by the Ministry of Education and the TEC to show the contribution CoREs are making.

1Formal, provider-based enrolments are students (excluding industry trainees) enrolled at a tertiary education organisation and undertaking study that contributes towards a qualification. All EFTS and student enrolments refer only to Student Achievement Component (SAC) funding unless otherwise stated.
2The figures are presented at a consolidated group level and reflect submissions received up to July 2013. For a more detailed breakdown of TEI financial performance, please refer to the TEC’s website.
3This figure differs to that reported in 2012 primarily due to a TEI restating its 2012 result.