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Annual Report 2007

01 July 2006 to 30 June 2007

Contents

Statement of Purpose
Mission Statement Ū ki te ako, tu tangata ai apōpō
Functions
Values
Core Responsibilities
Chair and Director's Report
Strategic Overview
The Year at a Glance From 1 July 2006 to 30 June 2007 the Council
Professional Leadership
Teacher Education
Maintenance of Professional Standards
Teacher Registration
Non Teacher Police Vetting
Information Communication Technology (ICT)
   New Developments
      Remote Access and Wireless Access
      Scanning Functions
      Council's Growth and Development
      Web site
Governance
   Legal responsibilities
   Structure of the Governance Council
   Governance and Council Member Appraisal
   Council Committees
   Disciplinary Bodies
Members of the New Zealand Teachers Council
Financial
   International Financial Reporting Standards (IFRS)
   Proposed changes in Accounting Policies on Transition to NZ IFRS
      Intangible Assets
      NZ IFRS 1 Exemptions
      Use of fair value or revaluation as deemed cost
Disclosure of Fees 2006 to 2007
   Council
   Disciplinary Tribunal
   Complaints Assessment Committee
   Early Childhood Education Advisory Group
   Māori Medium Advisory Group
New Zealand Teachers Council Staff
The Council's Staffing Profile
Disclosure of Remuneration Information
Good Employer Requirements
   Leadership, Accountability and Culture
   Recruitment Selection and Retention
   Employment Development, Promotion and Exit
   Safe and Healthy Work Environment
   Financial Statements
   Contents
Statement of Responsibility
Statement of Objectives and Service Performance for the Year Ended 30 June 2007
   Output 1 Teacher Registration
      Objectives of Output
      Key Performance Indicators
   Output 2 Maintenance of Professional Standards
      Objectives of Output
      Key Performance Indicators
   Output 3 Professional Leadership
      Objectives of Output
      Key Performance Indicators
   Output 4 Teacher Education
      Objectives of Output
      Key Performance Indicators
   Output 5 Non Teacher Police Vetting
      Objectives of Output
      Key Performance Indicators
New Zealand Teachers Council Statement of Accounting Policies for the Year Ended 30 June 2007
   Reporting Entity
   Measurement System
   Accounting Policies
      Budget Figures:
      Revenue:
      Goods & Services Tax:
      Taxation:
      Accounts Receivable:
      Term Deposits:
      Property, Plant and Equipment:
      Depreciation:
      Employee Entitlements:
      Operating Leases:
      Financial Instruments:
      Statement of Cashflows
      Operating Activities:
      Investing Activities:
      Financing Activities:
      Cost Allocation:
      Direct costs:
      Indirect costs:
      Changes in Accounting Policies:
New Zealand Teachers Council Statement of Commitments as at 30 June 2007
      Capital Commitments
New Zealand Teachers Council Statement of Contingent Liabilities as at 30 June 2007
New Zealand Teachers Council Statement of Financial Performance for the Year Ended 30 June 2007
New Zealand Teachers Council Statement Of Movements In Equity For The Year Ended 30 June 2007
New Zealand Teachers Council Statement of Financial Position as at 30 June 2007
New Zealand Teachers Council Statement of Cash Flows for the Year Ended 30 June 2007
New Zealand Teachers Council Notes to the Financial Statements for the Year Ended 30 June 2007
   Note 1 — Revenue Crown
   Note 2 — Personnel Costs
   Note 3 — Council Member's Fees
   Note 4 — Depreciation
   Note 5 — Cash
   Note 6 — Term Deposits
   Note 7 — Accounts Receivable
   Note 8 — Property, Plant and Equipment
   Note 9 — Provision for Employee Entitlements
   Note 10 — Deferred Lease Liability
   Note 11 — Reconciliation of Net Surplus with Net Cashflow from Operating Activities
   Note 12 — Closing Cash at 30 June
   Note 13 — Financial Instruments
   Note 14 — Related Party Transactions
   Note 15 — Adoption of International Financial Reporting Standards
   Note 16 — Major Budget Variances
   Statement of Financial Performance Revenue
      Expenditure
   Statement of Financial Position
      Current Assets
      Non-Current Assets
      Liabilities
   Statement of Cash Flows
Audit Report
   To the Readers of the New Zealand Teachers Council's Financial Statements and Performance Information for the Year Ended 30 June 2007
   Unqualified Opinion
   Basis of Opinion
   Responsibilities of the Council and the Auditor
   Independence
   Matters relating to the electronic presentation of the audited financial statements
Directory
      New Zealand Teachers Council
      Legal Counsel
      Auditor
      Accountants
      Insurers
      Bankers



Statement of Purpose

The New Zealand Teachers Council provides professional leadership in teaching, enhances the professional status of teachers in schools and early childhood education, and contributes to a safe and high quality teaching and learning environment for children and other learners.

S 139AA Education Act 1989

Mission Statement
Ū ki te ako, tu tangata ai apōpō

To set, maintain and promote standards of excellence in teaching. Excel in teaching so our learners will excel in the future.

Functions

  • To provide professional leadership to teachers and others involved in schools and early childhood education
  • To encourage best teaching practice
  • To carry out the functions relating to teacher registration
  • To determine standards for teacher registration and the issue of practising certificates
  • To establish and maintain standards for qualifications that lead to teacher registration
  • To conduct, in conjunction with quality assurance agencies, approvals of teacher education programmes on the basis of the standards referred to above
  • To develop a code of ethics for teachers
  • To exercise the disciplinary functions relating to teacher misconduct and reports of teacher convictions
  • To set the criteria for reporting serious misconduct and for reporting on competence issues
  • To exercise the functions relating to teacher competence
  • To coordinate a system providing for the vetting by police of all teachers and other people employed in schools and early childhood services
  • To identify research priorities and where appropriate, to promote and sponsor research according to those priorities
  • To exercise any other functions conferred on it by this Act, or by the Minister.

Section 139AE of the Education Act 1989

Values

The core values underpinning the Council are:

  • The organisation supports the values of awhinatanga, respect, manaakitanga, fairness, integrity, honesty and transparency.
  • The values embodied in the Teachers Council Code of Ethics for Registered Teachers (2005) are considered core values for the organisation. They are based in four principles of autonomy, justice, responsible care and truth.
  • As an autonomous Crown Entity, the Council also complies with the Standards of Integrity & Conduct (2007) issued by the State Services Commission. These state that we must be fair, impartial, responsible and trustworthy.

Core Responsibilities

In carrying out its functions the Council will:

  • work with other agencies to promote a quality teaching profession
  • work in ways which acknowledge the Treaty of Waitangi as New Zealand's founding document
  • provide quality advice to the Minister
  • ensure compliance with all relevant legislation and Crown Entity reporting requirements
  • establish a quality professional profile in all activities and communications and look for ways to improve services
  • work with teacher education providers and quality assurance agencies to improve and monitor teacher education programmes.

Chair and Director's Report

Manaakihia te mātauranga, ma te mātauranga koe e manaaki. Ngākaunui ki te mātauranga, ka ngākaunui te mātauranga ki a koe.

Respect and nurture education, in turn it will be good to you and for you. Value education, and you will be appreciated.

In 2006/07, the work of the New Zealand Teachers Council, Te Pouherenga Kaiako o Aotearoa, has proceeded at a steadily increasing rate thanks to the commitment of the Council, its staff and the thousands of teachers who have participated in our national consultations and programmes.

The Council has advanced its professional leadership role by embarking on a number of projects aimed to promote and strengthen the profession. These projects contribute significantly to the Government's priorities of providing effective teaching for all learners and developing quality providers.

Firstly, the Council successfully worked with the education community to develop graduating teacher standards. This achievement is very significant as it marks the first time that the education sector has agreed on a national set of standards. The new standards describe the Council's expectations of what a graduating teacher will know, understand and be able to do at the point of graduation from a teacher education programme.

Secondly, the Council has embarked on a research programme on induction practices. Following graduation, beginning teachers need ongoing support, advice and guidance to reach their full potential. The research programme will identify best practice and inform future induction processes. The first phase has been achieved with the publication of a literature review, Learning to Teach, which summarises key research and findings of effective induction programmes from current national and international literature.

Thirdly, the Council has embarked on a review of the Satisfactory Teacher Dimensions. The transition from provisional registration to full registration marks the admission of an individual to full membership of the teaching profession. Through the Satisfactory Teacher Dimensions review, carried out in consultation with the profession and key stakeholders, the Council has embarked on a review of the Satisfactory Teacher Dimensions to further strengthen the standards required of fully registered practising teachers and the processes by which they are applied in practice.

The Council has also undertaken a major upgrade of the registration database in the past year. A rigorous and efficient teacher registration process that contributes to a safe learning environment for children and young people is a fundamental platform from which the Council promotes the profession. The major upgrade of the registration database has provided a rich source of electronic data to help registration officers with the efficient and accurate processing of applications. A number of revisions and 'fixes' had to be made during the period of implementation to make sure that scheduled tasks could work as planned. The successful resolution of these issues will be reflected in future assessments of the system of processing registration applications.

In the past year the Council has also provided an amnesty period for professional leaders and employers to make sure they were lawfully employing teachers. This resulted in an increase in the number of registration applications. It also highlighted the need for employers to have effective management systems by which they track the registration status of teachers and others authorised to be employed in schools and early childhood settings. In order for the Council to maintain an accurate and current profile of the status of teachers' registration, the Council is working with the Ministry of Education to enable a successful data share between the Ministry's payroll information and the Council's teacher register.

Agreement has been reached between the New Zealand Qualifications Authority, the Ministry of Education and the Council on the process by which immigrant teachers are recognised. This agreement confirms the Council as the primary agent in the process of determining the registration status of these applicants.

In furthering its professional leadership role, the Council has successfully piloted workshops to heighten the understanding of its Council's Code of Ethics in the workplace. It has also launched a Te Reo Maori version of the Code, Nga Tikanga Matatika. The Council plans to pilot similar workshops for the appropriate implementation of Nga Tikanga Matatika in Māori medium settings.

The Council, in partnership with the British Council and the Ministry of Education, has launched scholarships for young teachers showing leadership potential. This initiative provides funding and support for these teachers to work in the United Kingdom for a 10-week period.

The robustness of the Council's governance and operational, financial management and reporting systems has been maintained. This is evidenced by receiving an unqualified opinion from Audit New Zealand. To further build its management of reporting systems, the Council has initiated a review of its electronic and document management systems.

The Council has continued to refine its ability to accurately predict the expenditure required to deal with potential complaints and disciplinary action against teachers. Patterns of demand are emerging and continued budget refinement will be possible over the medium term.

To enhance the ability of the education sector to communicate and exchange appropriate data effectively, the Council has maintained its active participation in the development of the sector's interagency ICT projects.

At the end of January 2007, Joanna Beresford completed her term of appointment as the Council's Chair. Joanna's leadership has been key in establishing a professional body ready to promote the important role of teachers in our communities and helping to establish the benchmarks against which teachers wish the profession to be measured.

Sadly, the Council has also farewelled Debra Marshall-Lobb. As a well respected professional leader, Debra has offered valuable insights and advice in the governance of the Council and has provided particular leadership in issues relating to Māori education.

The contribution of many parties has been critical to the Council's growth. The commitment and efforts of its constituent bodies, advisory groups, working parties, staff and the evident goodwill and support of teachers and others in the education sector, have been essential for our ongoing growth and development.

The governing objective of enhancing the capacity and standing of the teaching profession underpins all Council activities. Through this the Council will continue to maximise its contribution to ensuring a safe and high quality teaching and learning environment for all.

Ngā mihi nui ki a koutou kātoa

Kathy Smith

Peter Lind

Chair

Director

Date 2007

Date 2007

Strategic Overview

The Government's overarching educational goals are to raise achievement and reduce disparity across all parts of the education system for all students. A strong education system is critical for the delivery of each of the Government's three themes which help inform strategic planning:

  • Economic transformation
  • Families - young and old
  • National identity

Given the importance of the early childhood and schooling sectors to the theme of Families - young and old, the Council has paid a particular attention to this theme.

Currently New Zealand has over 80,000 registered teachers. The Council plays a vital role in providing leadership to the profession in the development, establishment and maintenance of high teaching standards across the early childhood and schooling sectors.

The Council has aligned its strategic goals to make a significant contribution towards two key priorities:

  • providing effective teaching for all learners
  • developing quality providers

The achievement of learners is strongly influenced by the quality of the teaching they receive. For this reason, the Council has placed a particular emphasis on:

  • strengthening the induction of provisionally registered teachers
  • reviewing and strengthening teaching standards for entry to the profession and on-going registration
  • building recognition of and respect for the teaching profession through a focused communications strategy
  • providing targeted professional development to support the Council's strategic goals

With its overarching goal of Ū ki te ako, tū tangata ai apōpō, Excel in teaching so our learners will excel in the future, the Council's strategic goals in 2006/07 have all aimed to support quality teaching and learning. This report details the achievements against these goals. In particular, the Council has made significant progress towards the achievement of the following strategic goals:

  • Promoting and developing effective teaching by strengthening the induction of provisionally registered teachers

    Two significant research reports completed in the Council's Learning to Teach research programme provide an evidence base for strengthening induction processes for beginning teachers.
  • Reviewing and strengthening teaching standards for entry to the profession and on-going registration

    Significant progress has been made in the project to review the registration standards, the Satisfactory Teacher Dimensions. This has seen the first stages of intensive consultation with key stakeholders in the education sector to determine future benchmarks for full registration and the on-going renewal of practising certificates.
  • Working with professional leaders to promote leadership practices that support quality teaching and professionalism in learning communities through the sector.

    Through presentations and other communications to professional leaders, union and other professional organisations, the Council has promoted the importance of professional leadership in these learning communities.

A national pilot of workshops was commissioned to educate about the recently published Code of Ethics for Registered Teachers (2005).

The Council has also been a partner with the Ministry of Education in the development of two Best Evidence Syntheses:

a. Educational Leadership

b. Teachers' Professional Learning and Development.

  • Strengthening the quality of teacher education graduates through rigorous reporting and monitoring of initial teacher education programmes

    The Graduating Teacher Standards have been promulgated. This is the first time

New Zealand will have national standards that will apply to all initial teacher education programmes and provide the benchmark for the future approval, reapproval and monitoring of these tertiary programmes.

  • Building recognition of, and respect for, the teaching profession though a focused communications strategy.

The Council strengthened communications with teachers and organisations in the sector through

  • its quarterly newsletter, ForTeachers Mō Ngā Kaiwhakaako,
  • regular electronic messages to professional leaders
  • face to face meetings and presentations at key professional gatherings
  • professional communications on a daily basis through responses to phone, email and other queries.


These communications have all emphasised the Council's key messages for promoting and maintaining high standards for the profession.

The Year at a Glance
From 1 July 2006 to 30 June 2007 the Council

  • registered 10,537 new applications and reapplications with a practising certificate
  • approved 5,077 provisionally registered and subject to confirmation teachers' movement to full registration
  • approved the renewal of16,769 practising certificates for fully registered teachers
  • investigated 205 mandatory reports and complaints
  • recorded that 12 cases were referred to the Disciplinary Tribunal
  • approved or re-approved 41 initial teacher education programmes
  • piloted workshops for the Code of Ethics for Registered Teachers
  • published Ngā Tikanga Matatika mō ngā Pouako Kua Rēhitatia, the Māori translation of the Code of Ethics for Registered Teachers
  • launched a 3-phase research project to support the induction of provisionally registered teachers
  • published the Graduating Teacher Standards: Aotearoa New Zealand
  • launched the review of the Satisfactory Teacher Dimensions
  • contributed to the launch of the British Council/Link Foundation scholarship, Linking Minds, for young teachers showing leadership potential
  • launched a review of its Electronic and Document Records Management System
  • continued to produce a quarterly newsletter ForTeachers Mō NgāKaiwhakaako
  • sent regular electronic Director's messages to early childhood centres, schools and stakeholders
  • commenced the review of two key policies:

Good Character and Fit to be a Teacher and

Limited Authority to Teach

  • launched a newly designed and developed integrated Registration, Non Teacher Police Vetting and Finance ICT system
  • reviewed the Council's website to ensure WC3 compliance
  • signed a joint memorandum of understanding with the New Zealand Qualifications Authority and Ministry of Education to facilitate the immigration of overseas trained teachers whilst maintaining high teaching standards.

Professional Leadership

This year significant progress has been made by the Council in promoting and developing effective teaching by:

  • strengthening the induction of provisionally registered teachers
  • reviewing and strengthening teaching standards for entry to the profession and on-going registration
  • building recognition of and respect for the teaching profession through a focused communications strategy
  • providing targeted professional development to support the Council's strategic goals.

The profession and public welcomed the launch of the Council's Graduating Teacher Standards as a significant step towards clarifying expectations of the knowledge, skills and attributes of all teacher education graduates who apply for provisional registration as a teacher. These standards will be implemented progressively in initial teacher education programmes from 2008, as tertiary providers are required to provide evidence that graduates are able to meet the Graduating Teacher Standards.

Improving the quality of induction provided for early career teachers is critical in retaining them in the profession. The first two phases of a commissioned research programme, Learning to Teach, to investigate professional learning and induction of provisionally registered teachers (PRTs) were completed and reports published. These generated much interest in the profession and are being followed up with forums to discuss next steps to strengthen support to PRTs in New Zealand. A third phase of the research programme also commenced in the financial year and is due to report by December 2007.

Teachers were given the opportunity to deepen their knowledge and understanding of how to implement the Council's Code of Ethics for Registered Teachers Ngā Tikanga Matatika Mō Ngā Pouako Kua Rēhitatia. A professional development programme was developed and delivered in a series of eight workshops by a team from Massey University. These were well received and follow-up evaluations indicated that those who attended would be seeking to pass on the insights of ethical decision making to their own colleagues. Similar workshops are planned for Māori medium settings in the next financial year.

Significant progress has been made in the project to review the standards for full registration, the Satisfactory Teacher Dimensions, and how they will be assessed. The review has involved an iterative process using a writing group as well as a reference group. Through this process a first draft set of revised dimensions was prepared for stakeholder consultation, along with a draft strategy paper that sets out a framework for the revised standards and their positioning in the professional landscape.

Reviews of the Good Character and Fit to be a Teacher and the Limited Authority to Teach policies have been initiated. The Limited Authority to Teach (LAT) draft policy maintains the Council's and the profession's commitment to maintaining an appropriately qualified and registered workforce but it also provides some flexibility for employers to apply for LATs for longer periods in specific circumstances.

The Good Character and Fit to be a Teacher draft policy provides a clearer and more appropriate set of criteria for 'fit to be a teacher' criteria, replacing those written more than ten years ago prior to the development of the Satisfactory Teacher Dimensions.

Communications with teachers and the education sector have been strengthened with the distribution of two issues of the quarterly newsletter, ForTeachers MōNgāKaiwhakaako to all teachers with a current practising certificate as well as to the usual distribution list, including all schools, centres and stakeholders. Electronic messages from the Director have also kept professional leaders in touch with Council issues and key events. An overarching communications strategy has been developed to guide Council communications with the sector.

Teacher Education

The Council is responsible for the approval, reapproval and monitoring of teacher education programmes throughout New Zealand. All teacher education programmes that lead to registration must be approved by the Council at least every five years. In addition every programme is monitored by an external monitor approved by the Council. In this, the Council works in partnership with other quality assurance agencies - in particular, the Committee on University Academic Programmes and the New Zealand Qualifications Authority.

During the 2006/07 year, a total of 41 programmes were considered for approval. Sixteen new programmes were approved and 25 others were reapproved.

Significant trends have been:

  • the extension of existing programmes to new teaching sites
  • the approval of programmes following mergers between colleges of education and universities
  • the conversion of diplomas of teaching into teaching degrees
  • the development of Pasifika programmes in the Auckland region
  • the continued reduction in the number of teacher education programmes.

The Council reinforced the importance of the Graduating Teacher Standards with a series of meetings held with tertiary providers. A total of 181 teacher educators from the 25 providers of teacher education attended the seminars. Feedback from these meetings indicated significant support of these benchmarks and will inform future guidelines for the approval, reapproval and monitoring of teacher education programmes throughout New Zealand

The Council also met with student teachers who were at the point of graduation and applying for provisional registration. Topics covered during these visits included the Council's professional leadership role, the new Graduating Teacher Standards, the Code of Ethics for Registered Teachers and registration processes.

Maintenance of Professional Standards

The Council is required to consider and make determinations on complaints and mandatory reports related to teacher competency and on the fitness of an individual to be a teacher. It ensures that it has an efficient, fair and transparent process for dealing with these complaints and mandatory reports, and that the principles of natural justice are observed.

The majority of teachers in early childhood education and primary and secondary schools act professionally and with a strong sense of public service. This is evidenced by the fact that, during this period, the Council has received only :

  • 205 complaints and mandatory reports relating to the conduct or competence of a teacher from a pool of over 80,000 registered teachers with current practising certificates.
  • 181 cases have been satisfactorily resolved.

The median time for a Complaints Assessment Committee consideration is based on when the complaint or mandatory report was first received rather than when the consideration commenced. This is not necessarily the date when the consideration commenced. Some cases referred to the Complaints Assessment Committee process were originally received prior to

1 September 2004 when the New Zealand Teachers Council (Conduct) Rules 2004 were established.

The Complaints Assessment Committee has referred ten teachers charged with serious misconduct to the Disciplinary Tribunal. The Disciplinary Tribunal heard a total of 12 cases in the financial year. The finalised decisions have been published in an anonymised form on the New Zealand Teachers Council website.

The Council has consulted with the education sector in reviewing the New Zealand Teachers Council (Conduct) Rules 2004 and the New Zealand Teachers Council (Competence) Rules 2004 and is currently working with Parliamentary Counsel to prepare proposed amendments to these rules. The amendments will alter the composition of the Disciplinary Tribunal and the Complaints Assessment Committee.

Teacher Registration

Teacher registration certifies that a teacher is satisfactorily trained, qualified and suitable to be a teacher. The issue and renewal of the practising certificate ensures that teachers meet, and continue to demonstrate that they meet, the standards required.

By setting and maintaining standards that promote excellence in teaching, the Council assists employing bodies in making appointments, reassures parents, the public and other members of the profession that national standards for the teaching profession are maintained and encourages professional pride in teachers.

Efficient and transparent processes have continued to be developed to reflect the diversity of the education sector and to maintain fair and consistent decision-making. This has included:

  • a major upgrade of the database system;
  • agreements and discussions with other government agencies and international registration bodies about the comparability of overseas qualifications and standards for registration; and
  • a project with the Ministry of Education and the Privacy Commissioner's Office to enable regular sharing of data share to ensure that those employed in teaching positions in schools have a current practising certificate.

As a result of a combination of teething issues in the implementation and development of the new registration database system (TCR) and significant delays at the Police Vetting and Validation Unit the timeliness measures were not met. The TCR issues have now been remedied.

The Council has communicated extensively to increase the awareness of employers and professional leaders of their legal requirements to maintain an accurate school/centre employment database of all staff employed in teaching positions.

This communication, in combination with a 3-month amnesty from prosecution for teaching without a current practising certificate and the continued growth in registrations of early childhood teachers, has contributed to a significant increase in applications for full registration.

The size of the registration function is well illustrated by the fact that 47,333 phone calls were received. These were responded to within the response times set by the Council and more than 32,000 registration applications were individually assessed and approved.

The Council signed a joint memorandum of understanding with the New Zealand Qualifications Authority and the Ministry of Education to facilitate the immigration of overseas trained teachers whilst still maintaining high teaching standards. This memorandum recognises that the Council is the lead agency in determining the registration status of an overseas applicant.

Non Teacher Police Vetting

The Council is responsible for co-ordinating a system providing for the vetting by police of non teachers and contractors from schools and early childhood services.

The Council receives and records applications for police vets from schools and early childhood services for non teachers and contractors and passes them on to the New Zealand Police Vetting Service and then returns the results to the applicant and the school or centre.

The Council found during investigations that a significant number of schools and centres had not vetted staff and contractors, or that they had only completed one or two vets since 2002 when the vetting process became mandatory and also required vets to be renewed every three years. The Council has highlighted the need for compliance via the website, the For Teachers Mō Ngā Kaiwhakaako quarterly publication and Director e-blasts. This increased communication has resulted in a substantial increase in enquiries from schools and centres about the vetting process. It is evident that a number of schools and centres have not maintained accurate records in this area.

As a result of this communication drive, the Non Teacher Police Vetting Unit exceeded its annual projection for application processing by several thousand. The annual standard of projected applications was set at 18,000 and the final processed total was 20,071.

Information Communication Technology (ICT)

The Council continues to report accurately, and utilise the information it is collecting in meaningful and accessible ways. It seeks to continually provide faster service to teachers through a range of different media.

The Council ensures that it has the capability for sector-wide interactions, such as sector authorisation and authentication, data sharing and e-transactions. As well a number of projects have delivered tangible benefits enabling an increase in its business efficiency and reporting capacity.

New Developments

Remote Access and Wireless Access

Security systems and remote access policies and methods have been designed and tested to allow remote access by staff into the Council site.

Scanning Functions

Methods to allow staff to directly scan and store documents by using the photocopiers have been installed. This has been especially useful in the compliance area where documents are often only provided only in paper form.

Council's Growth and Development

The Council has expanded its staff by 10% and its floor area by 15% in the 2006-2007 year. In order to provide support for this growth, the ICT function has been expanded. This has included the expansion of networks, storage, resources and business continuity systems.

Office software and hardware systems have been upgraded in a phased and planned way for desktops, franking machine, printers, Microsoft Office software, anti-virus and Server Software.

Web site

The website has undergone a technical transformation to E-GIF compliance providing access to documents-of-record in ways that has simply been unavailable before.

A tool has been developed to transform documents to E-GIF compliant HTML.

Governance

Legal responsibilities

The New Zealand Teachers Council is responsible for administering Part X (and some aspects of Part 10A) of the Education Act 1989 (and Education Standards Amendments 2006), including the Seventh Schedule to the Act. The Council is bound by the requirements of the Crown Entities Act 2004.

Structure of the Governance Council

The Council comprises 11 members.

  • Four are appointed by the Minister of Education, one of whom the Minister appoints as a Chair.
  • One is appointed by the Minister on the nomination of the New Zealand Educational Institute Te Riu Roa (NZEI).
  • One is appointed by the Minister on the nomination of the Post Primary Teachers' Association (PPTA).
  • One is appointed by the Minister on the nomination of the School Trustees' Association (STA).
  • There are four elected members (each of whom must be a registered teacher holding a current practising certificate). One represents the early childhood sector, and is elected by teachers from that sector; one represents the primary sector, and is elected by teachers from that sector; one represents the secondary sector, and is elected by secondary teachers and one is a principal and elected by principals.

The term of elected members is three years.

Ministerial appointments allow for terms from 18 months to three years and extensions beyond that period. As a consequence, and to give effect to succession planning, there have been variations in the time frames of these appointments.

Governance and Council Member Appraisal

The Council has resolved to formally evaluate its own performance on an annual basis.

Council Committees

The Council has established four bodies to support its work as required by legislation.

It has two standing committees:

  • The Audit and Risk Management Committee which monitors the Council's processes and controls resulting from the Council policies and has a particular focus on the effectiveness of the Council's governance processes and the auditing of financial performance; and
  • The Professional Leadership Committee which provides the Council with advice on the development of its professional leadership role and strategic planning.

Besides these two standing committees, there are two advisory bodies to the Council:

  • the Māori Medium Advisory Group which provides advice in respect of any of the Council's responsibilities relating to teachers and others in the field of Māori-medium education and whose members provide a range and balance of expertise, knowledge and experience and
  • The Early Childhood Education Advisory Group which is made up of members representing the diverse range of early childhood settings and early childhood teacher education providers and provides advice to the Council on issues relating to teachers working in the early childhood sector, particularly with reference to teacher registration.

These groups meet four times a year to provide advice to the Council on key initiatives and projects.

Disciplinary Bodies

The Council has two disciplinary bodies.

  • The Complaints Assessment Committee (CAC) deals with complaints and mandatory reports about teachers' conduct made after 1 September 2004. The CAC may also deal with complaints and mandatory reports made before 1 September 2004, if the teacher consents. Teachers must report any criminal convictions where the offence carries a maximum penalty of three months or more to the Council. These mandatory reports are initially investigated by the CAC. Each mandatory report or complaint is considered by a minimum of three CAC members. The CAC attempts to resolve cases by agreement between the parties unless serious misconduct is involved.
  • The Disciplinary Tribunal (DT) deals with cases referred to it and charges brought by the CAC. These include serious misconduct and serious convictions. The DT is a quasi-judicial body. When a charge is laid, five members of the DT are selected to sit on that particular tribunal hearing. One member is the Chair. Under the Education Amendment Act 2006 the majority of members must be registered teachers. The DT hears evidence from witnesses, as well as considering submissions made on behalf of the parties to the case being considered.

Members of the New Zealand Teachers Council

Kathy Smith — Chair

Ministerial appointment, February 2007 to January 2010

  • Retired.
  • Formerly Group Manager, Ministry of Education
  • General Manager, Ministry of Commerce
  • Qualified Barrister and Solicitor.

Joanna Beresford - Chair

Ministerial appointment, July 2003 to February 2007

  • Deputy Chair, Learning Media Limited.
  • Associate of Martin, Jenkins and Associates Limited, public sector and management consultants.
  • Previously National Secretary, New Zealand Educational Institute: Te Riu Roa.

Barbara Arnott

Appointed School Trustees Association representative, February 2005 to February 2008

  • Mayor of Napier and Trustee Environment Conservation and Outdoor Education Trust,

Hawkes Bay.

  • Education Consultant, East Coast Region.
  • Past Chair, Napier Boys High School, and Napier Community High School.
  • Former Council Member, Eastern Institute of Technology.

Lyn Brash

Ministerial appointment, August 2004 to August 2007

  • Education Consultant.
  • Previously Deputy CEO of Christchurch Polytechnic Institute of Technology.
  • Former member of New Zealand Qualifications Authority Board.
  • Former Chair, Cashmere High School Board
  • Former National Deputy President of NZ SSBA
  • Qualified secondary school teacher.

Margaret Franken

Ministerial appointment, August 2004 to August 2007

  • PhD in Applied Linguistics.
  • Postgraduate teacher and supervisor in the University of Waikato's Postgraduate Language and Literacy Education programme.
  • Research and teacher development consultant.
  • Qualified primary school teacher.

Nola Hambleton

Elected principals' representative, October 2005 to October 2008

  • Member New Zealand Order of Merit
  • Principal of Manurewa South School.
  • Former President, International Confederation of Principals.
  • Former President, New Zealand Principals' Federation.
  • Qualified primary school teacher.

Diane Leggett

Appointed New Zealand Educational Institute Te Riu Roa nominee, November 2005 to November 2008

  • Principal, Karori Normal School.
  • Previously a mathematics adviser, education consultant and curriculum adviser.
  • Qualified primary and secondary school teacher.
  • Justice of the Peace.
  • Former Council of Trade Unions representative on the Wellington College of Education's Council.

Debra Marshall-Lobb

Ministerial appointment, February 2004 to February 2007

  • Principal of Te Kura Kaupapa Māori o Manawatū.
  • Mentor on the First-time Principals' Programme.
  • Former Lecturer in Professional Studies at Massey University College of Education. Former Former President Te Akatea Māori Principals Association.
  • Qualified primary school teacher.

Jill Page

Elected primary school representative, October 2005 to October 2008

  • Resource Teacher of Learning and Behaviour in the Birkenhead school cluster
  • Ex-Chair of Wairau Intermediate School Board of Trustees
  • Former executive member of the Resource Teachers: Learning and Behaviours Association.
  • Qualified primary school teacher.

Irene Symes

Appointed Post Primary Teachers Association nominee, August 2004 to August 2007

  • Deputy Principal, Otahuhu College
  • Former PPTA representative Auckland College of Education Council.
  • Qualified secondary school teacher.

Toni Waho

Ministerial appointment, February 2007 to January 2010

  • Ngāti Rangi, Te Ati Hau-nui-a-Pāpārangi, Ngāti Apa, Ngāti Kahungunu and Waikato
  • Trained in Early Childhood as a kōhanga reo kaiako and became a pouako and then the Tumuaki at Te Kura Kaupapa Māori o Mana Tamariki
  • Member Te Rūnanga Whāiti o Te Rūnanganui o nā Kura Kaupapa Māori
  • Trustee National Te Kōhanga Reo Trust.

Margaret Wilson

Elected early childhood representative, October 2005 to October 2008

  • Manager of two Early Childhood centres based at the Dunedin Hospital.
  • Former member professional development team for early childhood services, Dunedin College of Education.
  • Qualified early childhood and primary school teacher.
  • Early childhood education advisory commissioner Dunedin College of Education.
  • Former Chair — Port Chalmers School.

Steve Wood

Elected secondary school representative, October 2005 to October 2008

  • HOD Science Saint Johns College Hillcrest, Hamilton; senior teacher of Chemistry at Foundation Studies, University of Waikato.
  • Justice of the Peace.
  • Qualified secondary school teacher.

Financial

The Council is in a sound financial position. It oversees its financial planning and monitoring, taking into account its 3-year practising certificate income cycle. It continues to consider possible increases in revenue, including fee increases and generating income from new sources.

Over the period, the Council has planned to escalate actions to retrieve fees from schools and early childhood centres illegally employing personnel in teaching positions who are not registered or do not hold a current practising certificate.

In April 2006, the Council introduced an integrated financial package. This package integrates the Registration and Non Teacher Police Vetting systems and gives a real time view of the Council's fee intake and expenditure. System refinements have taken place throughout the year supported by auditable financial statements and variance reports presented to the Council on a monthly basis. The Audit and Risk Management Committee has closely monitored trend reports and comparative historical data is now available after five years of Council operation.

The Council continues to receive encouraging external audit reports, which show that the organisation maintains a good standard of reporting and control over its operational work and that it is engaged in continuous improvement.

International Financial Reporting Standards (IFRS)

The Council will be adopting New Zealand equivalents to the International Financial Reporting Standards (IFRS) in the 2007-08 financial year. In preparing for this, the Council has assessed, in liaison with expert advisors, the significance of the impact this is likely to have on the organisation.

The impacts for the Council will be:

Treatment under NZIFRS

Impact on the Council

Revenue

NZIFRS has a standard specifically devoted to revenue recognition. In essence, the timing of when revenue is recognised is more specific. This will likely lead to less revenue being treated as income in advance.

Limited impact. Current methodology appears adequate

Government Grant

Public Benefit Entities only need apply some of the disclosures required in

NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. Income is recognised over the period necessary to match then with related expenses.

Operating Grant recognised in the year received. No change required.

Property, Plant and Equipment

Public Benefit Entities are permitted to revalue assets on a class by class basis.

Public Benefit Entities are exempted from disclosing historic cost information for revalued assets.

Public Benefit Entities are permitted to use depreciated replacement are evident, cost at fair value.

Where physical asset is acquired for nil or nominal consideration, the fair value of the asset is recognised as revenue in the Statement of Financial Performance.

No significant change but must test for impairment if indications of impairment.

Intangible Assets (specifically software)

Other intangible assets comprise costs incurred in acquiring software. Software is amortised using the straight-line method over its expected useful life.

At year end the software is reviewed for impairment against impairment indicators. If any indication of impairment exists, the recoverable amount of the software is estimated and compared against the existing carrying value. Where the existing carrying value exceeds the recoverable amount, the difference is charged to the income statement. Costs incurred in maintaining systems after implementation are not capitalised.

The Council will need to reclassify software. It will need to be moved from Property, Plant and Equipment to Intangible Assets and tested for impairment annually.

The fixed asset register can be used to record software but the Council will need to ensure it is clearly marked Other Tangible Assets and not included within the classes of assets held under Property, Plant and Equipment.

The Council will also need to ensure the correct amortisation rate is set up.

Impairment of Assets

Assets are assessed annually for indications of impairment. If any indicators of impairment exist assets are written down to their recoverable amount.

Impairment testing methodology includes the identification of cash generating units.

Impairment testing for Public Benefit Entities is not to be applied to non-income generation units.

Impairment losses are recorded in the Profit and Loss Statement.

Reversals of impairment losses are permitted.

Process is required to be documented.

Leases

Operating leases; where the lessor substantially retains the risks and rewards of ownership, the lessee (the Council) recognises the expense in a systematic manner over the term of the lease.

No change required.

Related Parties

Required to disclose the name of the related party, nature and type of the transactions.

Key management personnel compensation is not required to be disclosed separately but must be accounted for.

Greater disclosure due to wider definition.

Careful recording required by Corporate Services.

Financial Instruments

Financial Instruments applicable to the Council are assets held to maturity and loans and receivables.

Additional disclosure is required about the exposure and risk relating to the financial instruments and the objectives and processes for managing the risks.

Likely additional disclosure required, especially for Term Deposits.

Employee Compensated Leave

This is an accumulating entitlement to paid leave, such as sick and annual leave. A liability is recognised when the employee has provided services that increase their entitlement to future paid leave.

Accumulated leave is measured at the additional amount that is expected to be paid as a result of unused entitlement carried forward at balance date. Expected amounts are based on historical payroll payments.

A liability is recorded on the balance sheet.

Careful management required by the Council.

Employee Defined Contribution Plans

The employer should recognise the contribution payable at the end of each period based on employee services rendered during that period, reduced by any payments made during the period.

A liability may arise if there is a shortfall in payments.

Careful management required by Corporate Services.

The main impacts of the conversions to NZ IFRS are signalled below.

The table details the estimated impact on transition to NZ IFRS as at the date of transition.

Transition Balance Sheet as at

1 July 2006

Note

Previous GAAP

Effect of Transition to NZ IFRS

NZ IFRS

Assets

Property, Plant & Equipment

621,606

(309,472)

312,134

Intangible

-

309,472

309,472

Total non-current assets

621,606

-

621,606

Accrued Interest

193,014

-

193,014

Prepayments

7,700

-

7,700

Trade and other receivables

11,644

-

11,644

Investments

7,151,520

(1,267,281)

5,884,239

Cash and cash equivalents

544,608

1,267,281

1,811,889

Total current assets

7,908,486

-

7,908,486

Total assets

8,530,092

-

8,530,092

Equity

Accumulated Funds

5,202,247

(79,946)

5,122,301

Total equity

5,202,247

(79,946)

5,122,301

Liabilities

Accounts Payable

354,842

-

354,842

GST Due for Payment

25,081

-

25,081

Fees received in advance

2,801,318

-

2,801,318

Employee Entitlements

75,174

79,946

155,120

Deferred Lease Liability

71,430

-

71,430

Total current liabilities

3,327,845

79,946

3,407,791

Total liabilities

3,327,845

79,946

3,407,791

Total equity and liabilities

8,530,092

-

8,530,092

Proposed changes in Accounting Policies on Transition to NZ IFRS

Intangible Assets

The costs of acquiring and bringing computer software licences into use are capitalised. Computer software licences are held at cost and amortised over their expected useful economic life.

NZ IFRS 1 Exemptions

NZ IFRS 1: First time adoption of New Zealand Equivalents to International Financial Reporting Standards allows a number of exemptions to retrospective application when adopting NZ IFRS for the first time. The Council has elected to apply the following:

Use of fair value or revaluation as deemed cost

The Council has elected to continue to use original cost for property, plant and equipment, rather than treat current valuations as deemed cost.

Disclosure of Fees 2006 to 2007

Council

The Council Chair receives a daily meeting fee of up to $700.

Council members receive a daily meeting fee of $385 plus a preparatory fee of $192.50.

Additional payment is made for preparation and related Council work, including on the Disciplinary Tribunal and the Complaints Assessment Committee.

Remuneration through fees to Council members is all inclusive and no other consultancy or ex gratia payments or benefits are provided.

Disciplinary Tribunal

The Disciplinary Tribunal Chair receives a daily meeting fee of $900.

Members receive a daily meeting fee of $415.

Kenneth Johnston: Chair

$16,015

Barbara Arnott

$3,181

Sandy Barry

$ -

Lyn Brash

$1,620

Megan Cassidy

$830

Margaret Franken

$553

Debra Marshall-Lobb

$369

Neil Shroff

$830

Lorraine Skiffington

$ -

Steve Wood

$1,937

Diane Leggett

$854

Complaints Assessment Committee

The Complaints Assessment Convenor receives a daily meeting fee of $475.

The Deputy Convenor receives a daily meeting fee of $385.

Members receive a daily meeting fee of $340.

Nola Hambleton:

Convenor (to Dec 06)

$6,147

Chris France

$4,963

Jain Gaudin

$2,720

Graeme Oldershaw

Deputy Convenor

$5,390

Jill Page

$5,251

Irene Symes:

Convenor (from Jan 07)

$5,389

Margaret Wilson

$4,575

Early Childhood Education Advisory Group

The Early Childhood Education Convenor receives a daily meeting fee of $290.

Members receive a daily meeting fee of $215.

Nancy Bell: Convenor

$ 258

Sue Cherrington

$ -

Tere Gilbert

$1,302

Penelope Janes

$323

Hellen Puhipuhi

$ -

Arapera Royal-Tangaere

$ -

Hayley Whitaker

$215

Wendy Ure

$ -

Amanda Coulston

$ -

Jenny Rose Varney

$ -

Karen Skett

$ -

Māori Medium Advisory Group

The Māori Medium Advisory Group Convenor receives a daily meeting fee of $290.

Members receive a daily meeting fee of $215.

Mere Skerrett-White: Convenor

$3,190

Colleen Morehu

$573

Hineihaea Murphy

$1,075

Liz Patara

$573

Mercia-Dawn Yates

$1,935

Note: $ - Signifies not all members sought reimbursement of fees.

New Zealand Teachers Council Staff

Executive

Peter Lind

Director

Corporate Services

Christine Murcott

Corporate Services Manager

Policy and Professional Leadership

Cynthia Shaw

Manager Policy and Strategic Development

Registration

Jenny Thomas

Manager Registration

Teacher Education

Ken Wilson

Senior Advisor Teacher Education

Compliance

Linda Gendall

Senior Advisor Teacher Practice

The Council's Staffing Profile

As at 30 June 2007, 82.5% of the Council's staff were female (compared to 85% in the 2005/06 financial year). Total staff numbers were 40 FTE with a 4.7 to 1 female to male ratio.

The Council has a range of ethnicity with 4% identifying themselves formally as Māori or Pasifika.

The staffing structure is represented below.

Executive

Director

Executive Assistant

Corporate Services

Corporate Services Manager

Accountant

ICT Systems Administrator

ICT Advisor/Analyst

Non Teacher Police Vetting (2)

Senior Administrator

Registration

Manager Registration

Team Leader Registration

Registration Officers (9)

Administration Assistant (0.25)

Team Leader Customer Service & Office Administration

Contact Centre (4)

Data Entry (2)

Compliance

Senior Advisor Teacher Practice

Advisor Teacher Practice (.5)

Legal Administrators (2)

Administration Support

Teacher Education

Senior Advisor Teacher Education

Advisors Teacher Education (2)

Administration Support (0.5)

Policy and Professional Leadership

Manager Policy and Strategy Development

Policy Analyst

Research Analyst

Policy Advisor Māori

Senior Administrator

Disclosure of Remuneration Information

There are three staff with annual remuneration of over $100,000. One staff member is in the $130,000 to $140,000 bracket and other two staff members are in the $100,000 to $110,000 bracket.

The average service by staff members at the Council is 1.8 years with five staff being at the Council for more than four years.

Three fixed-term appointments were made during the 2006/07 financial year. These ranged in length from several weeks to a maximum of 4 months. There were a small number of casual contracts throughout the year to help with administrative tasks.

There were 13 resignations of permanent full time, staff during the 2006/07 financial year. There were 4 permanent fulltime staff resignations during the 2005/06 financial year, compared with 10 for the 2004-05 financial year.

Good Employer Requirements

The Council has endeavoured to ensure a productive and harmonious work environment in which staff are treated fairly and are able to maintain an appropriate work-life balance. The Council's policies and practices meet the requirement of Section 118 of the Crown Entities Act 2004 for Crown Entities to be good employers.

The Council ensures that staff are aware of its good employer and associated policies during a formal induction programme administered by their managers, and by ongoing training that focuses on relevant, appropriate policies. All policies are updated annually and placed on the Intranet for staff reference. The Council also actively displays its good employer intentions through actions and policies, such as its 'family friendly' policy which allows staff with children or dependants to negotiate reduced hours or part time work. The Council also has a Rehabilitation Policy to assist staff who may have been ill or have had accidents to return to work on a part time basis until they are fully fit again.

Leadership, Accountability and Culture

The Council makes efforts to include staff, as well as managers, in functional and project work that will have an effect on the processes in which they are involved. The Council respects the expertise of its staff and encourages opportunities for input to improving workflow processes and culture.

Recruitment Selection and Retention

The Council has sound recruitment, appointments and induction processes. These have been informed by the Human Rights Commission and the State Services Commission guidelines. In the past year the Council has negotiated a variety of more flexible working options for staff to ensure that they can work effectively for the Council and that it can attract and retain skilled staff. The Council advertises positions in external publications and on its Intranet and Internet sites. Over the past year, Council staff numbers have increased by 10% to improve responsiveness in registration related functions and in providing professional leadership.

Employment Development, Promotion and Exit

Good provision (5% of gross salary per employee) is made to fund staff training and development.

Records are kept of the courses and conferences attended, and staff are expected to share insights and information they gained from them, via the Council's Intranet. Staff have attended a range of training courses and conferences in the past year, from technical training focused on their areas of business to professional education that improves their ability to work as a staff member. International travel has been limited. The emphasis has been on exchanging ideas and knowledge with the Council's international regulatory counterparts, particularly those in Australia.

The Council is aware that it has had a high turnover of staff this year. The nature of the work of some positions, staff members' career advancement potential and the competitive nature of the job market has meant that a number of people have left for career choice and higher salaries. The Director conducts exit interviews to gain a better understanding of why members of staff decide to leave. It should be noted that the Council is a small entity and that promotion within the organisation is not always an option. The Council has provided career counselling to staff and support staff moving on to more challenging positions in the public or private sector.

The Council has an annual performance appraisal cycle for all staff linked to the anniversary of their start date.

Safe and Healthy Work Environment

The Council maintains a safe and healthy working environment.

  • Confidential access to an Employment Assistance Programme is available to all staff, including ongoing access to attend counselling sessions. Over the past year, the service has been accessed by staff on a number of occasions.
  • New staff are provided with workplace assessments to ensure that their workstations and local environment are suited to their working needs.
  • The Rehabilitation Policy outlines the Council's commitment to assisting staff back to work after a period of illness or injury. Its Human Resources, Health and Safety policies, and Legislative Compliance checklists are regularly updated to reflect legislative changes relating to employment and other matters.
  • The Council maintains Professional Indemnity Insurance for all staff and Council members. Material damage, business interruption, travel, and liability insurance is also held. There have been no claims in the 2006/07 financial year.
  • More than 10 staff members are Red Cross certificated. Regular monthly hazard audits and monthly HR Bulletins are sent to staff to keep them informed of recent issues and developments. There have been no serious workplace accidents during the year.
  • The Council has a comprehensive Pandemic Plan and a fully compliant Disaster Recovery — Business Continuity Plan. Both have been tested — the first during the Education Sector Exercise Cruickshank training and the second on a weekly basis with restores on site and from offsite recall of information and disks.

Financial Statements

Contents

  • Statement of Responsibility
  • Statement of Objectives and Service Performance

  • Output 1: Teacher Registration
  • Output 2: Maintenance of Professional Standards
  • Output 3: Professional Leadership
  • Output 4: Teacher Education
  • Output 5: Non Teacher Police Vetting

  • Financial Statements

  • Statement of Accounting Policies
  • Statement of Commitments
  • Statement of Statement of Contigent Liabilities
  • Statement of Financial Performance
  • Statement of Movements In Equity
  • Statement of Financial Position
  • Statement of Cash Flows
  • Notes to the Financial Statements
  • Note 1 — Revenue Crown
  • Note 2 — Personnel Costs
  • Note 3 — Council Member's Fees
  • Note 4 — Depreciation
  • Note 5 — Cash
  • Note 6 — Term Deposits
  • Note 7 — Accounts Receivable
  • Note 8 — Property, Plant and Equipment
  • Note 9 — Provision for Employee Entitlements
  • Note 10 — Deferred Lease Liability
  • Note 11 — Reconciliation of Net Surplus with Net Cash flow from Operating Activities
  • Note 12 — Closing Cash at 30 June
  • Note 13 — Financial Instruments
  • Note 14 — Related Party Transactions
  • Note 15 — Adoption of International Financial Reporting Standards
  • Note 16 — Major Budget Variances

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Statement of Responsibility

The New Zealand Teachers Council was established as a Crown Entity on

1 February 2002. These financial statements are prepared on the basis that the assets and liabilities of the Teacher Registration Board were vested in the Teachers Council.

We accept responsibility for the preparation of the attached statements of account and the judgments used herein. The attached financial statements have been prepared on the basis of generally accepted accounting practice and in accordance with the Crown Entities Act 2004 and the Seventh Schedule of the Education Act 1989.

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.

In our opinion, the financial statements for the twelve months ended 30 June 2007 fairly reflect the financial position, the results of operations, the cash flows and service performance of the New Zealand Teachers Council.

Kathy Smith

Barbara Arnott

Chair

Chair

Audit and Risk Management Committee

Date 2007

Date 2007

Statement of Objectives and Service Performance
for the Year Ended 30 June 2007

Output 1
Teacher Registration

To ensure an efficient and reliable registration process for the purpose of maintaining and promoting high standards for the teaching profession.

2006/07

Total Revenue

Actual

Total Expenditure

Actual

Surplus (Deficit)

Actual

Teacher Registration

$ 1,746,674

$ 1,501,436

$ 245,238

Total Revenue

Budget

Total Expenditure

Budget

Surplus (Deficit)

Budget

$ 1,738,312

$ 1,605,185

$ 133,127

Objectives of Output

This output is the mechanism by which it can be assured that teachers meet and maintain agreed standards for qualifications, professional practice and professional development. These include:

  • that teachers hold an approved teacher education qualification
  • that teachers are attested to be of good character and fit to be a teacher
  • that teachers have completed satisfactory teaching experience when applying for renewal of their practising certificate. This includes having met the satisfactory teacher dimensions, undertaken professional development and having been recently appraised
  • that teachers have a satisfactory police vet
  • that overseas qualified teachers have the required level of proficiency in the English language and appropriate teacher education to be registered to teach in New Zealand settings
  • that those teachers registered subject to confirmation have appropriate supervision and professional development
  • that teachers with provisional registration undertake a satisfactory advice and guidance programme within the school or centre in which they are employed
  • that a web-assisted registration process is available.

Key Performance Indicators

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

Application for Registration

109

10,428

Renewal

163

16,606

Provisional/STC to Full

13

5,064

Quantity

Annual

Actual

Limited Authority to Teach (LAT)

900

857

Timeliness *

Category

Weeks

Percentage

Actual

Application for Registration

6

80%

63%

Renewal

6

80%

61%

Provisional/STC to Full

4

80%

76%

Output 2
Maintenance of Professional Standards

Consideration and determination of complaints regarding the competence or fitness to teach of teachers and those authorised to teach.

2006/07

Total Revenue

Actual

Total Expenditure

Actual

Surplus (Deficit)

Actual

Maintenance of Professional Standards

$ 1,002,752

$ 845,407

$ 157,345

Total Revenue

Budget

Total Expenditure

Budget

Surplus (Deficit)

Budget

$ 1,014,405

$ 957,515

$ 56,890

Objectives of Output

The objectives of this output are to:

  • provide information relating to the investigation and decision making processes to assist teachers and others to identify the dimensions of acceptable teacher competence and professional behaviour
  • maintain an effective Complaints Assessment Committee (CAC), Disciplinary Tribunal (DT) and associated support.

Key Performance Indicators

Quality

Standard

Actual

Web register updated as required after each Council meeting and tribunal hearing

100%

100%

Percentage of CAC and DT members surveyed that rated support services as "meets expectations" or better

80%

80%

Quantity

Standard

Actual

Number of complaints and mandatory reports received by CAC

120

164

Number of complaints and mandatory reports resolved by CAC

120

142

Number of competency complaints and mandatory reports received

50

41

Number of competency complaints and mandatory reports resolved

50

39

Timeliness

Standard

Actual

Median time for a case to be completed by CAC from the time a complaint is received

to final notification

15 weeks

Refer to Maintainance of Professional Standards on page 14

Output 3
Professional Leadership

Addressing issues and opportunities that contribute to the capacity and standing of the teaching profession. By enhancing this capacity and standing, the various strategic goals for education, from the early childhood sector to the tertiary sector, are advanced.

2006/07

Total Revenue

Actual

Total Expenditure

Actual

Surplus (Deficit)

Actual

Professional Leadership

$ 1,393,211

$ 1,169,172

$ 224,039

Total Revenue

Budget

Total Expenditure

Budget

Surplus (Deficit)

Budget

$ 1,327,794

$ 1,335,813

($ 8,019)

Objectives of Output

The objectives of this output are to:

  • enhance the capacity and standing of the teaching profession
  • safeguard the public interest and strengthen the standing of the teaching profession by establishing and reviewing standards for entry into and on-going practice as a teacher
  • promote the Code of Ethics / Ngā Tikanga Matatika for teachers
  • maintain effective communications networks with educators and other key stakeholders to support the core responsibilities of the Council
  • promote research that contributes to quality teaching and strengthens professional capacity
  • develop policies that strengthen the legislative functions of the Council and promote the professional growth of teachers
  • provide targeted professional development for teachers and professional leaders to support the Council's strategic goals

Key Performance Indicators

Quality

Standard

Actual

Research projects are monitored appropriately and lead to policy advice to Council and stakeholders

100%

100%

Research and other projects involve stakeholder representation and consultation as appropriate

100%

100%

Quantity

Standard

Actual

At least ten workshops delivered to promote and educate teachers about the Code of Ethics

100%

80%

8 workshops were approved by Council and 8 were delivered

The Satisfactory Teacher Dimensions are reviewed

100%

100%

Timeliness

Standard

Actual

Ten workshops about the Code of Ethics delivered by June 2007

100%

80%

8 workshops were approved by Council and 8 were delivered

The Satisfactory Teacher Dimensions are reviewed by December 2007

100%**

100%

* Once the project was scoped for the delivery of workshops and the contractor chosen via a contestable process the Council approved 8 workshops rather than 10, due to project cost restraints.

** The Satisfactory Teacher Dimensions are measured for quantity and timeliness against project milestone completion.

Output 4
Teacher Education

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, and participation in research into teacher education policies, processes and outcomes.

2006/07

Total Revenue

Actual

Total Expenditure

Actual

Surplus (Deficit)

Actual

Teacher Education

$ 435,429

$ 471,350

($ 35,921)

Total Revenue

Budget

Total Expenditure

Budget

Surplus (Deficit)

Budget

$ 440,569

$ 559,020

($ 118,451)

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

Objectives of Output

The objectives of this output are:

  • to set and maintain standards of initial teacher education programmes that lead to registration as a teacher
  • to conduct approvals of new and existing initial teacher education programmes
  • to publicise the work of the Council to graduating student teachers and to provide advice to them on pathways to registration
  • to advise, promote and participate in research on initial and continuing teacher education.

Key Performance Indicators

Quality

Standard

Actual

All decisions are consistent with Teachers Council standards for approvals of teacher education programmes and relevant legislation

100%

100%

Quantity

Standard

Actual

Number of teacher education programmes approved or re-approved

35-40

41

Timeliness

Standard

Actual

Percentage of all programme approvals/re-approvals are negotiated within agreed timeframe between the quality assurance agency and the Council

100%

100%

Output 5
Non Teacher Police Vetting

The Teachers Council acts as a conduit for obtaining a police check for all those non-teachers and contractors 1 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.

¹ Non teachers and contractors: non teaching support staff in schools and early childhood services who do not hold a Limited Authority to Teach; teachers in early childhood who are not registered; contractors who work on school or early childhood grounds regularly, employees of contractors.

2006/07

Total Revenue

Actual

Total Expenditure

Actual

Surplus (Deficit)

Actual

Non Teacher Police Vetting

$ 172,234

$ 175,065

($ 2,831)

Total Revenue

Budget

Total Expenditure

Budget

Surplus (Deficit)

Budget

$ 160,020

$ 194,353

($ 34,333)

Objectives of Output

The objective of this output is to:

  • contribute, alongside other agencies, to ensure that those working in regular contact with infants, children and young people are of good character and do not pose a threat to the well being or safety of any individual.

Key Performance Indicators

Quality

Standard

Actual

All non teacher and contractor vet requirements will be consistent with the Education Act and Teachers Council's policies and procedures

100%

100%

Quantity

Standard

Actual

Number of non teacher police checks completed

18,000

20,071

Number of sensitive/red stamps vet results from NZ Police

6

2

Timeliness

Standard

Actual

Turnaround of vet result, from NZ Police, processed within 5 working days.

70%

77%

New Zealand Teachers Council
Statement of Accounting Policies
for the Year Ended 30 June 2007

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 training.

These financial statements are prepared in accordance with the Seventh Schedule of the Education Act 1989 and the requirements of the Crown Entities Act 2004.

Measurement System

These Financial Statements comply with generally accepted accounting practice. The measurement base adopted is that of historical cost.

Accounting Policies

The following accounting policies which materially affect the measurement of financial performance and financial position have been applied:

Budget Figures:

The budget figures are those approved by the New Zealand Teachers 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 New Zealand Teachers Council derives revenue through the charging of fees for practising certificates, limited authority to teach applications, provisional registration to full registration 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 and 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 on the first and second 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 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 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.

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

Computer Equipment

Furniture & Fittings

Office Fitout

5 Years

3 Years

15 Years

5 Years

20.0%

33.3%

6.7%

20.0%

Employee Entitlements:

Provision is made in respect of the New Zealand Teachers Council liability for annual leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay.

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 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. 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 shown at their estimated fair value.

Statement of Cashflows

Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the New Zealand Teachers Council invests as part of its day-to-day cash management.

Operating Activities:

Include cash received from all income sources of the New Zealand Teachers 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 New Zealand Teachers Council.

Cost Allocation:

The 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 charges 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 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.

New Zealand Teachers Council
Statement of Commitments
as at 30 June 2007

Operating Lease Commitments are in respect of the leased accommodation. Minimum rental commitments as at 30 June for the non-cancellable lease are:

Actual

2007

Actual

2006

Non Cancellable Lease

(i)

Not later than 1 year

249,623

207,120

(ii)

Later than 1 year & not later than 2 years

214,203

207,120

(iii)

Later than 2 years & not later 5 years

276,160

483,280

(iv)

Later than 5 years

-

-

$739,986

$897,520

Capital Commitments

There are no capital commitments as at 30 June 2007. (2006: $Nil)

New Zealand Teachers Council
Statement of Contingent Liabilities
as at 30 June 2007

There are legal cases and costs outstanding against the Council which have a possible exposure up to $53,400 as at 30 June 2007. (2006:$24,000).

Quantifiable contingent liabilities are as follows:

Actual

2007

Actual

2006

Legal Proceedings

$53,400

$24,000

The Council has a letter of credit facility with the Bank of New Zealand for payroll processing of $88,000 as at 30 June 2007.

NEW ZEALAND TEACHERS COUNCIL
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2007

2007

2007

2006

Note

Actual

Budget

Actual

REVENUE

Fees

3,373,246

3,344,173

4,000,077

Interest

579,942

501,130

490,421

Limited Authority to Teach Fees

43,765

42,672

54,904

Non Teacher Police Vetting

172,235

160,020

173,902

Provisional to Full Registration

351,959

391,105

317,884

Revenue Crown

1

178,000

178,000

178,000

Sundry Income

7,217

17,000

7,884

Teacher Education Approvals

43,936

47,000

61,935

TOTAL REVENUE

4,750,300

4,681,100

5,285,007

LESS: EXPENDITURE

Administrative Expenses

972,401

999,253

774,179

Audit Fees to auditors

- external audit

33,700

33,700

29,000

- other services

7,238

-

3,700

Advisory Committees

21,421

52,386

21,985

Council Members' Fees

3

205,763

219,800

161,640

Complaints/Discipline

107,704

185,884

131,720

Depreciation

4

213,831

229,887

149,127

Election Expenses

-

50,000

240,439

Loss on Disposal of Assets

-

-

300

Personnel Costs

2

2,010,219

2,266,171

1,912,654

Professional/Consulting Fees

96,063

69,840

45,393

Rent

194,549

187,466

187,465

Special Projects

299,541

357,500

13,908

TOTAL EXPENDITURE

4,162,430

4,651,886

3,671,510

NET SURPLUS/(DEFICIT)

$587,870

$29,214

$1,613,497

Accompanying accounting policies and notes form an integral part of these financial statements.

NEW ZEALAND TEACHERS COUNCIL
STATEMENT OF MOVEMENTS IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2007

2007

2007

2006

Actual

Budget

Actual

Public Equity as at 1 July 2006

5,202,247

5,227,651

3,588,750

Net Surplus for the Period

587,870

29,214

1,613,497

Total Recognised Revenues and Expenses for the period

587,870

29,214

1,613,497

Public Equity as at 30 June 2007

$5,790,117

$5,256,865

$5,202,247

Accompanying accounting policies and notes form an integral part of these financial statements.

NEW ZEALAND TEACHERS COUNCIL
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2007

Note

2007

2007

2006

Actual

Budget

Actual

Public Equity

Accumulated Funds

5,790,117

5,256,865

5,202,247

TOTAL PUBLIC EQUITY

$5,790,117

$5,256,865

$5,202,247

Represented by;

Assets

Current Assets

Cash

5

511,700

180,000

544,608

Term Deposit

6

7,465,400

6,964,050

7,151,520

Accrued Interest

133,684

60,000

193,014

Prepayments

24,088

15,000

7,700

Accounts Receivable

7

27,706

-

11,644

Total Current Assets

8,162,578

7,219,050

7,908,486

Non-Current Assets

Property, Plant and Equipment

8

508,179

483,637

621,606

Total-Current Assets

508,179

483,637

621,606

TOTAL ASSETS

8,670,757

7,702,687

8,530,092

Liabilities

Current Liabilities

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