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New Zealand Teachers Council Annual Report 2007-2008

Statement of Purpose

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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

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

Functions

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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

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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

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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

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The New Zealand Teachers Council seeks to enhance the professional status of teaching and contribute to a safe and high quality teaching and learning environment, and importantly to provide professional leadership in teaching. To achieve this goal, it needs to work with teachers and other key stakeholders and align its work with each of these groups.

In its Strategic Plan for 2007-08, the Council identified several key areas of focus in its professional leadership role. These included:

The revision of guidelines and processes for the implementation of the recently introduced standards for graduating teachers.

The Graduating Teacher Standards that were developed and promulgated in June 2007 ensured that, for the first time, there is a national standard that teachers graduating from initial teacher education programmes have to meet. In 2007-08, the Council embarked on a review of the processes by which initial teacher education programmes are approved and monitored. The review has provided the feedback and analysis necessary for the Council to revise the processes and guidelines by which these programmes will be approved and monitored in the future. The revised processes will ensure that the Graduating Teacher Standards are embedded in practice and provide further assurance to the education sector that beginning teachers are well qualified to teach.

The Council has also launched a research programme to investigate proficiency in te reo Māori of graduates from initial teacher education programmes that prepare them to teach in Māori medium settings. The first report in a planned series has been completed and provides descriptive evidence of the current te reo requirements for student teachers in these programmes.

The implementation of quality induction programmes for all provisionally registered teachers.

Successful graduates of approved initial teacher education programmes apply for provisional registration and are entitled to receive quality induction once they are employed as a teacher. The Council's three phase research programme on induction practices, Learning to Teach, highlighted the critical importance of ongoing support, advice and guidance for newly qualified teachers to assist them to achieve success in the first few years of teaching. Building on the findings of this research, pilot programmes will be implemented in 2009-10 to enhance the capacity and capability of the profession to support the growth and learning of newly qualified teachers.

The review and implementation of revised standards for granting full registration for provisionally registered teachers and the renewal of practising certificates.

The transition from provisional to full registration marks the admission of an individual as a full member of the teaching profession. In consultation with the profession and key stakeholders, the Council has made considerable progress in its review of The Satisfactory Teacher Dimensions (STDs), which are the benchmark against which fully registered practising teachers are judged. The draft Registered Teacher Criteria (RTC), which will replace the STDs, have been developed for consultation in 2008-09 with the profession and key stakeholders. The current categories of registration of teachers are also being reviewed to determine if they are fit for purpose in an increasingly diverse and complex education system.

Other Developments

The maintenance of a rigorous and efficient registration process that contributes to a safe learning environment for children and young people is a fundamental platform by which the Council promotes the profession. By reviewing the Good Character and Fit to be a Teacher Policy, the Council has provided a clearer and more appropriate set of criteria by which the profession deems teachers to be of good character and fit to teach. It has also built on its successful professional development programme focused on the implementation of the Council's Code of Ethics for Registered Teachers, in which teachers are encouraged to critically examine the ethical dilemmas they encounter in their daily practice and relationships with learners, colleagues and others. A similar series of workshops for teachers (kaiako) in Māori medium settings has focussed on Ngā Tikanga Matatika Mō Ngā Pouako Kua Rēhitatia and has been successfully piloted.

The Limited Authority to Teach (LAT) policy has been revised. It reaffirms the profession's commitment to maintain an appropriately qualified and registered workforce while also providing some reasonable flexibility for employers to employ temporarily an unqualified person on a LAT.

The Council continues to develop relationships with counterpart organisations internationally. It is increasingly benchmarking its practice internationally to promote and maintain the highest professional standards possible. In particular, the Council has successfully established networks with Australian teacher registration and accreditation authorities. This has enabled the movement of teachers between the two countries under the Trans Tasman Mutual Recognition Agreement.

The Council also continues to work closely with the New Zealand Qualifications Authority and the Ministry of Education to enable recognition and smooth transition for suitably qualified international teacher applicants seeking employment in New Zealand schools and early childhood centres.

By continuing to build the Council's ICT infrastructure, it enables business process improvements and more on-line services for teachers. Recent developments have improved access to information so that registered teachers can update their own details on-line and enable the provision of on-line voting for the Council election. These enhancements, among others, have been received positively by teachers and stakeholders.

The manner in which both the Disciplinary Tribunal and the Complaints Assessment Committee discharge their responsibilities has been favourably commented upon by teachers and employers and their representatives. This view has been reinforced by the significant number and quality of applications for membership of these bodies by teachers and other interested parties. The Council plans to operate three Complaints Assessment Committee panels in 2008-09.

Having heard cases since November 2005, the Disciplinary Tribunal has a growing body of case law. The Council, in reviewing the progress of the Disciplinary Tribunal, consulted with the education sector on an amendment to the definition of serious misconduct. Having received submissions, the Council will gazette the amendment in the 2008-09 year.

Both the Early Childhood Education Advisory Group and the Māori Medium Advisory Group have provided valuable advice to the Council particularly on effective communication with teachers, registration matters, the development of new policies, the identification of priorities for research, and pressing issues for teachers in the Māori medium and the early childhood sectors.

Working with management, Council members continue to provide strategic direction and oversight on the effectiveness of the Council's operations, including financial risk management. A review of its current governance structure and composition has begun and the Council will consult with key stakeholders on this review. It is currently developing a plan for the process of consultation with key stakeholders and teachers.

The goodwill and support of teachers and others in the education sector is critical in building a strong professional body and the Council appreciates this support. The Council has endeavoured to increase the depth and breadth of its external interactions, at all levels throughout the education sector.

The governing objective of enhancing the capacity and standing of the teaching profession continues to underpin all Council activities. Through that the Council will 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

29 October 2008	29 October 2008

Strategic Overview

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Currently New Zealand has over 90,000 teachers with a current practising certificate. 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 the Government goals of building an education system that works for the benefit of all New Zealanders and that contributes to New Zealand's social, cultural and economic development. In particular, the following goals of the Council were aligned with the Government's and profession's priorities for the early childhood, schooling and tertiary education sectors. They were:

clarifying expectations and exploring models for the effective induction of provisionally registered teachers
developing and implementing standards and systems that will provide greater assurance of the quality of provisionally registered teachers
developing and implementing guidelines for tertiary providers on the quality expected of teacher education graduates
reviewing and strengthening teaching standards and processes for registration of teachers and the renewal of practising certificates
increased focus on communication to inform the education sector of the Council's work.

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 2007-08 have all aimed to support quality teaching and learning. 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

The completion of the Council's Learning to Teach research programme provided a strong evidence base for developing draft guidelines to strengthen induction processes for beginning teachers and to commission pilots for these.

Reviewing and strengthening teaching standards for entry to the profession and on-going registration

Further progress has been made in partnership with stakeholders to review the registration standards. Revised draft standards have been developed (Registered Teachers Criteria) following consultation with stakeholders and an extensive consultation plan and survey instruments were developed for gaining responses from teachers, stakeholders and centres and schools.

Revising the guidelines and processes for the implementation of the Graduating Teacher Standards

In depth consultation with stakeholders contributed to a wide ranging review of the processes for approving and reapproving initial teacher education programmes. This review led to the development of options for changes to the processes which are now being considered by the Council. New guidelines for approving and reapproving programmes will be developed once processes are consulted and agreed on.

Significant progress has been achieved in many other areas of the Council's work programme and are reported in the following sections of this report.

The Year at a Glance
from 1 July 2007 to 30 June 2008 the Council

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registered 11,371 new applications and reapplications
approved 5,163 provisionally registered and subject to confirmation teachers' movement to full registration
approved the renewal of 15,904 practising certificates for fully registered teachers
completed 18,643 non teacher Police vets
investigated 187 mandatory reports and complaints
referred 13 cases to the Disciplinary Tribunal
approved or re-approved 47 initial teacher education programmes
provided workshops for teachers in both English and Māori medium settings for the Code of Ethics for Registered Teachers Ngā Tikanga Matatika mō ngā Pouako Kua Rēhitatia
completed a 3-phase research project to support the induction of provisionally registered teachers (PRTs)
developed draft guidelines for induction and mentoring programmes for PRTs and for training and support of mentors of PRTs
consulted extensively as part of a review of the Council's processes for approving and reapproving initial teacher education programmes
made significant progress with the review of the Satisfactory Teacher Dimensions
completed the review of two key policies: Good Character and Fit to be a Teacher and Limited Authority to Teach and implemented the policies
supported 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 Ngā}Kaiwhakaako
sent regular electronic Director's messages to early childhood centres, schools and stakeholders
launched a newly designed and developed ICT system
reviewed the Council's website to ensure WC3 compliance

Professional Leadership

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This year significant progress has been made by the Council in promoting and developing effective teaching through a range of initiatives.

Following the successful development and dissemination of the Graduating Teacher Standards in 2006-07, the Council launched a thorough review of its processes for approving and reapproving initial teacher education programmes. With consultation completed, the Council is now considering the reports and the options for possible changes that will strengthen the outcomes of its approval and re approval function before consulting further with the sector.

The Council has also launched a research programme to investigate proficiency in te reo of graduates from initial teacher education programmes that prepare teachers to teach in Māori medium settings. The first report in a planned series was completed and is being prepared for publication and dissemination.

The Council's commissioned research programme, Learning to Teach, which has investigated professional learning and induction of provisionally registered teachers (PRTs) was completed and the third report published. A series of forum were hosted by the Council to discuss the findings and the next steps needed to strengthen support to PRTs. Draft guidelines for induction programmes and for professional support to and training of mentor teachers were developed by the Council and discussed with interested groups. These were incorporated in Requests for Expressions of Interest (EOI) for pilot programmes to be commissioned in 2008-09. There was a strong response from the profession to the advertised EOI, a possible indicator that the profession regards this issue as critical for further development.

Further progress has been made in reviewing the standards for full registration, the Satisfactory Teacher Dimensions, and how they will be assessed. A revised draft of the dimensions, now with the working title Registered Teacher Criteria (RTC), was produced following consultation with stakeholders. The Council is now consulting with the sector on the draft criteria. The Council is revising current policies relating to the registration of teachers with the purpose of clarifying expectations and processes for registering teachers in New Zealand.

The Council convened a 'think tank' to support leadership in early childhood education settings and has followed this up with a work programme on the issue endorsed by its Early Childhood Education Advisory Group.

The professional development programme on the Council's Code of Ethics for Registered Teachers Ngā Tikanga Matatika Mō Ngā Pouako Kua Rēhitatia, was followed up in 2007-08 with two programmes. One was delivered by Council staff in seven regional centres for teachers in early childhood, primary and secondary settings and the other was delivered through a contract with Tihi Ltd, for kaiako in Māori medium settings in a series of four workshops in 2008. These workshops have all generated strong discussion on the ethical dilemmas that professionals work through in their daily practice and relationships with learners, colleagues and others. Other opportunities have also been utilised to deliver workshops such as conferences of teachers and professional leaders.

Reviews of the Good Character and Fit to be a Teacher and the Limited Authority to Teach policies were completed. The revised Limited Authority to Teach (LAT) policy (2007) 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 publication of the Good Character and Fit to be a Teacher policy (2007) 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. Both these policies have been smoothly implemented and seem to be working well in practice.

Communications with teachers and the education sector have continued to be supported through distribution of the quarterly newsletter, ^ForTeachers ^MōNgāKaiwhakaako and the electronic messages from the Director that have kept professional leaders in touch with Council issues and key events. Communications planning for all projects ensures timely information and key messages are disseminated to the sector and media.

Teacher Education

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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 2007-08 year, a total of 47 programmes were considered for approval.

Significant trends have been:

the completion of the merger of all colleges of education with universities and the resulting approval of programmes following these mergers
the conversion of diplomas of teaching into teaching degrees
the impact of the tertiary education reforms particularly on the development of investment plans for funding purposes by tertiary providers
the impact of the PBRF on the recruitment, retention and workload of tertiary teacher educators.

The review of the Council's processes for approving and monitoring initial teacher education programmes has been completed and the Council is considering potential options for the revision of its current processes before consulting further with the sector.

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 Graduating Teacher Standards, the Code of Ethics for Registered Teachers and registration processes.

Maintenance of Professional Standards

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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:

187 complaints and mandatory reports relating to the conduct or competence of a teacher from a pool of over 90,000 registered teachers with current practising certificates, of which 178 cases have been satisfactorily resolved.

The Disciplinary Tribunal heard a total of 13 cases of teachers charged with serious misconduct 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 on a proposed amendment to the New Zealand Teachers Council (Making Reports and Complaints) Rules 2004. The proposed amendment seeks an addition to the current criteria for serious misconduct to include "any conduct that brings or is likely to bring discredit to the profession".

Teacher Registration

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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.

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 demonstrate that they continue to meet the STDs.

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. These have included:

enhancements to the database system to increase the level of automation to gain greater efficiency when processing applications
agreements and discussions with other government agencies and international registration bodies about the comparability of overseas qualifications and standards for registration
contributing to the development of legislation for an amendment to the Education Act to allow an information-matching programme between the Ministry of Education and the Council

More than 35,000 registration applications were received and individually processed well within the agreed timeliness measures. In addition, the Council dealt with a very large number of phone calls (over 43,700 calls directly to the Contact Centre) and emails regarding individual registration applications in an efficient and timely manner.

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

The memorandum of understanding between the Council, the NZ Qualifications Authority and the Ministry of Education recognises that the Council is the lead agency in determining the registration status of an overseas applicant. To facilitate the immigration of overseas trained teachers whilst still maintaining high teaching standards, Council staff work cooperatively with staff of these other agencies to deal with the issue of comparability of teaching qualifications, the evaluation of overseas qualifications and the processes for registration.

Non Teacher Police Vetting

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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 Non Teacher Police Vetting Unit exceeded its annual projection for application processing by several hundred. The annual standard of projected applications was set at 18,000 and the final processed total was 18,634.

This Unit is under review and it is proposed that the work of the Unit be transferred to New Zealand Police. In the event of the work of the Unit's work being transferred to NZ Police. New criteria would be issued for the categories of people requiring police vet clearances.

Information Communication Technology (ICT)

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The Council's ICT infrastructure is continually reviewed, maintained and developed to ensure continuous improvements to operations and to business functions as well as factoring in security and business continuity issues.

Desktop hardware platforms were replaced at the end of their useful life, and a server was also replaced as part of this process. The software has remained stable.

New Developments

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Developed proposal for data share with the Ministry of Education

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In conjunction with the Ministry of Education and the Privacy Commission, a proposal was developed to share data with the Ministry for the purposes of clarifying the registration status of employed teachers and enhancing the Council's ability to communicate with teachers particularly if they have moved schools without changing their prior address. A feasibility pilot has been completed.

Document and Records Management

The Council has developed a comprehensive Document and Records Strategy and has completed formal Retention and Disposal Schedules for Archives New Zealand. The organisation has been looking at document management systems informally and has had preliminary discussions with the Ministry of Education to see if the Council could hold a small secure cache area where the Council could store its information.

Remote Access and Wireless Access

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Systems were enhanced so that managers and senior staff could operate and connect from anywhere. This has enabled more effective work processes for key individuals.

Upgrade of the Registration System (TCR)

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This system had several service patches applied, and had a major re-release specified for delivery in July that improved the communication sub-system.

Upgrade of the database system

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The New Zealand Teachers Council database is Microsoft SQL Server. Over the 2007-08 year this was migrated from version 2000 to version 2005 as a necessary preparation for the financial migration.

Upgrade of the financial system

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The Great Plains financial system was migrated from version 8 to Dynamics GP V10 at the end of the financial year.

Stored-procedure Accounting Middleware (SAM) was required to allow the previous Registration system (TCR) interface technology to still interoperate. This was developed and tested prior to installation at year end.

New Postcodes were established for addresses

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Address compliance with NZ Post standards established the need for specialist software and this was deployed to translate 120,000 existing addresses to NZ Post formats. The addresses that existed were translated and replaced where compliance could be established. The bigger tasks of deploying real-time data-entry verification into the registration software have been specified and are due for deployment in the 2008-09 financial year.

Deployed interface between the email system and Registration system

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A system (TCR Control) has been deployed to interface the email system to TCR so that receipt of emails and subsequent actions (such as changes of address) could be streamlined into the database and be compliant with records management requirements.

This coming year will see the Council further enhancing the intranet and website, and the defining of a new Electronic Document and Records Management System.

Governance

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Legal responsibilities

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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

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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

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The Council formally evaluates its own performance on an annual basis.

Council Committees

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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
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

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The Council has one disciplinary body and one investigative body.

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 self report, as does as any district court registrar, 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 the CAC considers 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, and considers submissions made on behalf of the parties to the case being considered.

Members of the New Zealand Teachers Council

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Kathy Smith – Chair

Ministerial appointment, February 2007 to January 2010

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

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
Justice of the Peace
Former Council of Trade Unions representative on the Wellington College of Education's Council
Qualified primary and secondary 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 Behaviour 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 August 2007

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.
Qualified early childhood and primary school teacher.

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
Early childhood education advisory commissioner Dunedin College of Education
Former Chair – Port Chalmers School.
Qualified early childhood and primary school teacher.

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

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The Council continues to maintain a sound financial position and has implemented a quarterly re-forecasting process to further refine its monitoring and performance of results for both internal and external stakeholders.

The Council continues to develop even stronger linkages between its strategic direction and the funding requirements the Council will need to deliver these strategies. A review of the current fee structure is underway to further inform the agency's 2009-12 budgeting programme.

The Council is awaiting the passage of legislation to establish data sharing with the Ministry of Education's payroll section to further enhance the collection of registration revenue and ensure that only registered and practising certificated teachers are employed in teaching positions in schools

The Council contracts the accounting firm Grant Thornton to provide an internal audit function to ensure continuing high quality in the presentation of financial information to the entity and stakeholders.

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

Disclosure of Fees 2007 to 2008

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Council

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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

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

Members receive a daily meeting fee of $415.

Kenneth Johnston: Chair	$18,076
Barbara Arnott	$1,729
Lyn Brash	$2,976
Megan Cassidy	$2,285
Margaret Franken	$2,421
Steve Wood	$1,660
Diane Leggett	$1,923

Complaints Assessment Committee

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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.

Irene Symes: Convenor	$10,169.33
Chris France	$6,974.29
Jain Gaudin	$7,600.38
Graeme Oldershaw	$11,169.06
Jill Page	$9,502.91
Nola Hambleton	$6,742.74
Margaret Smith	$9,496.61

Early Childhood Education Advisory Group

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

Members receive a daily meeting fee of $215.

Helen May: Convenor	$ 870.00
Hellen Puhipuhi	$430.00
Hinerangi Korewha	$573.33
Margaret Barclay	$764.44
Amanda Coulston	$599.08
Jenny Varney	$599.08
Barbara Backshall	$ -

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Māori Medium Advisory Group

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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	$1,901.73
Colleen Morehu	$382.22
Hineihaea Murphy	$ -
Liz Patara	$981.37
Mercia-Dawn Yates	$-
Piripi Blake	$645.00
Robyn Hata	$827.50

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

New Zealand Teachers Council Staff

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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 (retired April 2008)
Compliance	Linda Gendall	Manager Teacher Practice

The Council's Staffing Profile

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As at 30 June 2008, the Council employed 40 staff. The equivalent FTE was 38.5. As at 30 June 2008, 75% of the Council's staff were female (compared to 82.5% at 30 June 2007 and 85% at 30 June 2006 financial year). Total staff numbers were 40. 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) Administrator (.5)
Registration	Manager Registration Team Leader Registration Registration Officers (8) Qualifications Evaluator and Registration Officer (2) Administration Assistant (0.25) Team Leader Customer Service & Office Administration Contact Centre (4) Data Entry (2)
Compliance	Manager Teacher Practice
	Advisor Teacher Practice (.5)
	Legal Administrators (2)
	Administration Support
Teacher Education	Senior Advisor Teacher Education (retired April 2008)
	Advisors Teacher Education (2) (one resigned September 2007; one resigned November 2007)
	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

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There are four staff with annual remuneration of over $100,000. One staff member is in the $160,000 to $169,000 bracket, one staff member is in the $110,000 to $119,000 bracket and two staff members are in the $100,000 to $110,000 bracket.

The average service by staff members at the Council is 2.6 years (1.8 years in the 2006/07 financial year) with five staff being at the Council for more than four years and eleven staff members having been in the Council's service for more than three years.

Workplace Profile Status/Job type	Number of staff	Gender
	40 (FTE)	Gender
Managers	6	2 male, 4 female
Team Leaders	2	2 female
Administrative Assistants	5	2 male, 3 female
Customer Services	4	2 male, 2 female
ICT Specialists	2	2 male
Accountant	1	1 male
Legal Administrators	3	1 male, 2 female
Data entry	2	2 female
Registration Officers	8	8 female
Qualifications Evaluator and Registration Officer	2	2 female
Policy and Research	3	2 male, 1 female
Teacher Practice	2	2 female
Non Teacher Police Vetting Officers	2	2 female

Two fixed-term appointments were confirmed during the 2007-08 financial year. These two appointments were to continue service in the Non Teacher Police Vetting Unit while awaiting legislative change to remove this function from the Council and place it with NZ Police. There were six short term contracts throughout the year where staff were engaged to assist with administrative tasks. These ranged from several weeks to three months in length. There were several contracts which engaged policy analyst assistance until permanent appointments had been made.

There were 11 resignations of permanent full time staff during the 2007-08 financial year. This compares with 13 resignations of permanent full time staff during the 2006-07 financial year.

Assessing Organisational Health and Capability

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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.

Good Employer Requirements

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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 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.

A formal induction programme is administered by managers for all new staff.

All policies are updated annually and placed on the Intranet for staff reference. HR Bulletins and a summary reference index allows staff to become more informed about Council policies and procedures.

A 'family friendly' policy allows staff with children or dependents to negotiate reduced hours or part time work.

A 'study friendly' policy allows staff engaged in training or study to negotiate reduced hours or part time work.

The Rehabilitation Policy assists 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.

The Council is developing a comprehensive EEO Framework to guide future development under the capacity and capability requirements of the Council. It will ensure diversity and encouragement on minorities.

As an active member of the SSC's Public Service Integrity and Ethics Network and HR Forum, best practice is socialised at the Council and initiatives, where possible are explored, developed and adopted. The Council is also able to benchmark its progress against other agencies through staying informed and up-to-date with Government expectations.

Leadership, Accountability and Culture

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As part of the government's five year plan to reduce the gender pay gap, this entity, in partnership with the Department of Labour is conducting a gender based pay and employment equity review.

The Council launched the SSC's Code of Integrity and Conduct in advance of the required date and have continued to work with the Code in sessions with staff which look in more detail at the implications of the principles.

Recruitment Selection and Retention

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The Council has sound recruitment, appointments and induction processes. These have been informed by the Human Rights Commission and the State Services Commission guidelines.

The Council remains concerned about the relatively high staff turnover and it is working to reverse this trend by providing robust selection criteria, a supportive workplace and higher job satisfaction.

The Director conducts exit interviews to gain a better understanding of why members of staff decide to leave.

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's average staff service in years is rising:

2004-05 average was 0.7

2005-06 average was 0.6

2006-07 average was 1.8

2007-08 average was 2.6

Employment Development, Promotion and Exit

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Training and development opportunities go some way to retaining staff, but a range of initiatives including competitive salaries, career opportunities and varied and challenging work are also factors.

It should be noted that the Council is a small entity and that promotion within the organisation is not always an option. However in this financial year the Council has been able to offer promotions to staff within the organisation.

There have been no personal grievances at the Council in this financial year.

Safe and Healthy Work 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 entity's Human Resources, Health and Safety policies, and Legislative Compliance checklists are regularly revised to reflect updates relating to employment and critical organisational accountabilities needed for and delivered to staff.

Hazards audits are conducted on a monthly basis and have been for a number of years. The Council can measure the reduction in identifiable risks and in some months the Council is free of any recorded hazard.

The Council maintains Professional Indemnity Insurance for all staff and Council members. Material damage, business interruption, travel, and liability insurance is also held. There were no claims in the 2007-08 financial year.

More than 10 staff members are Red Cross certificated.

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.

Financial Statements

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Statement of Responsibility

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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 New Zealand 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 2008 fairly reflect the financial position, the results of operations, the cash flows and service performance of the New Zealand Teachers Council.


Kathy Smith	Lyn Brash
Chair	Council member & member of the Audit & Risk Management Committee
29 October 2008	29 October 2008

Statement of Objectives and Service Performance
for the Year Ended 30 June 2008

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Output 1 Teacher Registration

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

Teacher Registration	YTD Actual	YTD Budget	Variance
Revenue	$1,717,767	$1,777,355	($59,588)
Expenditure	$1,708,458	$1,829,570	($121,112)
Surplus (Deficit)	$9,309	($52,215)	$61,524

Objectives of Output

The objectives of this output are to ensure:

that teachers hold an approved teacher education qualification
that teachers are 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 had appropriate supervision and professional development when they are recommended to move to full registration
that teachers with provisional registration undertake a satisfactory advice and guidance programme before applying for full registration
that a web-assisted registration process is available
that relevant information and advice is provided and communicated to members of the profession and the public.

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 the Teachers Council's policies and procedures

All applications processed in accordance with legislation and policy

Quantity
Applications approved by category
Applications for Registration	11,371
Renewal	15,904
Provisional/STC to full	5,163

	Quantity	Quantity
	Applications declined by category*	Applications closed by category*
Application for Registration	88	1,011
Renewal	485	279
Provisional/STC to Full Registration	134	346

*Applications are declined when they do not meet the Council policy. This could be in qualifications, service, language proficiency and /or good character. Applications are closed if the applicant has failed to respond satisfactorily to requests for information. At this point there would have been more than four communications generated.

Quantity

Annual

Actual

Limited Authority to Teach

995**

** approved applications

Timeliness

Applications approved by category

Weeks

Standard Percentage

Annual Actual

Application for Registration

80%

93.15%

Renewal

80%

95.99%

Provisional/STC to Full

80%

98.88%

Output 2 Maintenance of Professional Standards

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To consider and determine reports and complaints regarding fitness to be a teacher and/or competence of teachers and those authorised to teach for the purpose of maintaining and promoting high standards for the teaching profession.

Maintenance of Professional Standards	YTD Actual	YTD Budget	Variance
Revenue	$953,344	$995,046	($41,702)
Expenditure	$1,195,692	$1,139,877	$55,815
Surplus (Deficit)	($242,348)	($144,831)	($97,517)

Objectives of Output

The objectives of this output are to:

promote professional and ethical conduct by teachers
promote effective teaching practice
maintain an effective Complaints Assessment Committee (CAC) and Disciplinary

Tribunal (DT)

maintain an effective process for considering and determining teachers'

competence

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.

Key Performance Indicators

Quality

Standard

Annual Actual

Web register is accurate and up to date

100%

All decisions are made in accordance with the requirements of the Education Act 1989 and the New Zealand Teachers Council Rules 2004

80%

100%

Quantity

Standard

Annual

Actual

Number of complaints and

mandatory reports received

by CAC

120

152

Number of complaints and

mandatory reports resolved

by CAC

120

136

Number of competency

complaints and mandatory

reports received

Number of competency

complaints and mandatory

reports resolved

Number of referrals from CAC to competence

Number of conduct/competence cases determined by the Council

Number of cases referred by

CAC to DT

Timeliness

Standard

Annual

Actual

Percentage of cases resolved by CAC* within six months

80%

42%

Percentage of competency cases* resolved within six months

80%

24%

Percentage of Disciplinary Tribunal cases resolved within six months

80%

58%

* The median time for a competency/CAC consideration is based on when the complaint or mandatory report was first received rather than when the consideration commenced.

Output 3 Professional Leadership

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The development of policy, research and strategic goals for the Council that will provide opportunities to enhance the quality of teaching and the standing of the teaching profession. This work includes facilitation of stakeholder communications in order to ensure that the Council works in cooperation with the profession and that its policies and strategic direction are understood.

Professional Leadership

YTD Actual

YTD Budget

Variance

Revenue

$1,416,839

$1,331,196

$85,643

Expenditure

$1,533,909

$1,664,690

($130,781)

Surplus (Deficit)

($117,070)

($333,494)

$216,424

Objectives of Output

The objectives of this output are to:

enhance the capability 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
strengthen the induction of provisionally registered teachers
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
commission and promote research that contributes to quality teaching and strengthens professional capability
develop policies that strengthen the Council's legislative functions and promote the quality and standing of the teaching profession
provide targeted professional development for teachers and professional leaders to support the Council's strategic goals
provide advice to support the development of the Council's strategic direction and strategic goals.

Key Performance Indicators

Quality

Standard

Annual Actual

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

100%

Research and other projects involve stakeholder representation and consultation as appropriate

100%

Research and development projects use appropriate evaluation strategies for planning, implementation and review.

100%

Quantity	Standard	Annual Actual
The Satisfactory Teacher Dimensions are reviewed *	100%	90%
Processes for determining entry to and ongoing membership of the teaching profession are agreed with the profession	100%	85%
At least one pilot for a proposed induction & mentoring programme is fully scoped and ready for implementation	100%	60%
The procedures and guidelines for the approval/re-approval of ITE programmes are reviewed and revised	100%	60%
Initial scoping and planning for a review of the Council's policy for Categories of Registration is completed.	100%	60%
Four workshops on Ngā Tikanga Matatika (Code of Ethics) are run for teachers in Māori immersion settings.	100%	100%
Phase 1 of a research programme to support te reo proficiency in ITE programmes is completed	100%	100%
At least ten workshops delivered to promote and educate teachers about the Code of Ethics **	100%	80%

Timeliness	Standard	Annual Actual
The Satisfactory Teacher Dimensions are reviewed by May 2008*	100%	90%
Processes for determining entry to and ongoing membership of the teaching profession are agreed by July 2008	100%	85%
At least one pilot for a proposed induction & mentoring programme is planned for implementation by July 2008	100%	60%
The procedures and guidelines for the approval/re-approval of ITE programmes are reviewed and revised	100%	60%
Initial scoping and planning for a review of the Council's policy for Categories of Registration is completed by July 2008.	100%	80%
Four workshops** on Ngā Tikanga Matatika (Code of Ethics) will be run for teachers in Māori immersion settings by July 2008	100%	100%
Phase 1 of a research programme to support te reo proficiency in ITE programmes is completed by July 2008	100%	100%
At least ten workshops*** delivered to promote and educate teachers about the Code of Ethics	100%	80%

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

** A misprint in the SOI stated that 8 workshops would be delivered in Māori medium settings.

***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.

Output 4 Teacher Education

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The establishment and maintenance of standards for initial teacher education programmes through approval and re-approval processes and external monitoring, the provision of advice to student teachers, liaison with teacher education providers, the management of workshops on the Code of Ethics and participation in research into teacher education policies, processes and outcomes.

Teacher Education

YTD Actual

YTD Budget

Variance

Revenue

$438,708

$426,979

$11,730

Expenditure

$516,820

$669,892

($153,071)

Surplus (Deficit)

($78,112)

($242,913)

$164,801

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
promote the Code of Ethics to teachers
to advise, promote and participate in research on initial and continuing teacher education.

Key Performance Indicators

Quality

Standard

Annual Actual

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

100%

Quantity

Standard

Annual Actual

Number of teacher education programmes considered for approval and reapproval.*

Number of Code of Ethics workshops delivered to teachers.

Timeliness

Standard

Annual Actual

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

100%

Percentage of all requests for graduating student seminars that are negotiated within the agreed timeframe between the institution and the Council.

100%

* The Council has no control over the number of applications for the approval of new teacher education programmes.

Output 5 Non Teacher Police Vetting

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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.

Non Teacher Police Vetting

YTD Actual

YTD Budget

Variance

Revenue

$171,044

$160,020

$11,024

Expenditure

$190,952

192,512

($1,560)

Surplus (Deficit)

($19,908)

($32,492)

$12,584

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

Annual

Actual

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

100%

Quality

Standard

Annual

Actual

Number of non teacher police checks completed

18,000

18,634

Number of sensitive/red stamps vet results from NZ Police

TIMELINESS

STANDARD

ANNUAL

ACTUAL

TURNAROUND OF VET RESULT, FROM

NZ POLICE, * PROCESSED WITHIN 5 WORKING DAYS.

70%

69.3%

* The NZ Police Vetting and Validation Unit were not always able to meet agreed processing times.

New Zealand Teachers Council Statement of Financial Performance

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For the year ended 30 June 2008

	Note	2008 Actual	2008 Budget	2007 Actual
Income
Revenue	1	4,056,423	4,158,455	4,163,141
Other operating income	2	9,383	4,500	7,217
Finance income		631,895	527,641	579,942
Total income		4,697,701	4,690,596	4,750,300
Expenses
Employee benefit costs	4	2,470,056	2,578,845	1,983,967
Depreciation and amortisation expense	5,7	201,681	232,784	213,831
Other operating expenses	3	2,007,814	2,126,912	1,638,838
Total expenses		4,679,551	4,938,541	3,836,636

Core Operating Surplus/(Deficit)		18,150	(247,945)	913,664

Special Projects		411,279	503,000	299,541
Council Elections		55,000	55,000	-
Net Surplus/(Deficit)*		(448,129)	(805,945)	614,123

*Budget figures have been altered for rounding.

New Zealand Teachers Council Statement of Movements in Equity

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For the year ended 30 June 2008

	Note	2008 Actual	2008 Budget	2007 Actual

Public Equity as at 1 July 2007		5,736,424	5,769,836	5,122,300
Other changes recognised directly in equity		-	-	-
Surplus/(Deficit) for the period		(448,129)	(805,945)	614,123
Public Equity as at 30 June 2008		5,288,295	4,963,891	5,736,423

New Zealand Teachers Council Statement of Financial Position

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As at 30 June 2008

	Note	2008 Actual	2008 Budget	2007 Actual
Public Equity
Retained earnings/(losses)		5,288,295	4,963,891	5,736,423
Total Public Equity		5,288,295	4,963,891	5,736,423

Represented By:
Assets
Current Assets
Other investments	10	2,045,630	4,030,005	2,905,116
Trade and Other Receivables	8	195,736	75,004	185,478
Cash and cash equivalents	9	5,531,956	2,866,670	5,071,984
Total Current Assets		7,773,322	6,971,679	8,162,578
Non-Current Assets
Property, plant and equipment	5	271,490	363,405	281,968
Intangible assets	7	122,222	103,346	226,211
Total Non-Current Assets		393,712	466,751	508,179

Total Assets		8,167,034	7,438,430	8,670,757

Liabilities
Current Liabilities
Deferred Lease Liability	6	35,172	32,115	51,773
Trade and Other Payables	13	2,625,175	2,359,924	2,739,636
Employee Entitlements	12	218,392	82,500	142,925
Total Current Liabilities		2,878,739	2,474,539	2,934,334

Total Liabilities		2,878,739	2,474,539	2,934,334

NET ASSETS		5,288,295	4,963,891	5,736,423

New Zealand Teachers Council Statement of Cash Flows

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For the year ended 30 June 2008

	Note	2008 Actual	2008 Budget	2007 Actual
Cash flows from operating activities
Fees		3,098,647	3,357,213	2,804,675
Limited Authority to Teach Fees		42,814	31,952	43,765
Revenue - Crown		178,000	178,000	178,000
Non-Teacher Police Vetting		171,044	160,020	172,235
Interest Received		590,221	527,641	639,272
Provisional to Full Registration		387,265	341,816	351,959
Teacher Education Approvals		67,656	38,750	43,936
Sundry Income		9,383	4,500	7,217
Discipline Recovered		100	-	-
Payments to Suppliers & Employees		(4,873,623)	(5,278,414)	(3,839,037)
Net GST refunded/(paid)		16,193	-	(20,646)
Net cash flows from operating activities	11	(312,300)	(638,522)	381,376

Cash flows from investing activities
Purchase of Property, plant and equipment		(69,144)	(146,537)	(100,404)
Purchase of Intangible Assets		(18,070)	-	-
Net Transfer of Investments to Cash and cash equivalents	19	859,486	608,954	2,979,123
Net cash flows from investing activities		772,272	462,417	2,878,719

Net increase in Cash, Cash equivalents and Bank Overdrafts		459,972	(176,105)	3,260,095
Cash and cash equivalents at beginning of year	9	5,071,984	3,189,312	1,811,889
Cash and cash equivalents at end of year	9	5,531,956	2,866,670	5,071,984

The budget numbers have been altered to reflect NZ IFRS changes.

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis.

The net (payments to) receipts from investments component of investing activities reflects the net amount paid and received for term deposits.

These items have been prepared on a net basis, as gross amounts do not provide meaningful information.

New Zealand Teachers Council Statement of Contingent Liabilities

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As at 30 June 2008

Note

2008

Actual

2007

Actual

Legal proceedings against New Zealand Teachers Council

$10,000

$53,400

Personal grievances

The New Zealand Teachers Council has identified above those contingent liabilities which it assesses may give rise to liabilities against the Council in the future.

The legal proceedings against the Council are those cases that are currently in the Complaints/Disciplinary process within the Council as at 30 June 2008.

The Council is not aware of any personal grievances either impending or underway against the Council as at 30 June 2008 (2007, Nil).

The $10,000 is an estimate based on an indicative figure of what a District Court hearing may cost the Council, there are currently two cases likely or have been referred to the District Court by way of appeal.

New Zealand Teachers Council Statement of Commitments

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As at 30 June 2008

	Note	2008 Actual	2007 Actual
Capital commitments

Non-cancellable commitments-operating lease commitments

Not more than one year		329,684	249,623
One to two years		332,313	214,203
Two to five years		154.477	276,160
Over five years		-	-

The non-cancellable operating lease relates to the lease of three and a half floors of an office building. The lease is due to expire on the 8 November 2011 for the 3 and one half floors. The Council has assumed that it will not vacate the lease at the renewal date of 8 November 2011 for each floor. The Council does not have the option to purchase the asset at the end of the lease term.

There are no restrictions placed on the Council by its leasing arrangements.

New Zealand Teachers Council Statement of Accounting Policies

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For the year ended 30 June 2008

SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The New Zealand Teachers Council ("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.

The Council is also a Crown Entity as defined by the Crown Entities Act 2004 and is domiciled in New Zealand. As such, the Council's ultimate parent is the New Zealand Crown.

The Council's primary objective is to provide public services to the NZ Public, as opposed to making a financial return.

Accordingly, the Council has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards ("NZIFRS").

The financial statements of the Council are for the year ended 30 June 2008, and were approved by the Council on 24 September 2008.

Basis of Preparation

STATEMENT OF COMPLIANCE

The financial statements of the Council have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practice ("NZ GAAP").

The Financial statements comply with NZIFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Differential Reporting

The Council qualifies for Differential Reporting under the size criteria of the NZ IFRS Differential Reporting Framework 3.8 due to total gross income being less than $20 million and total assets being less than $10 million.

The Council has applied the following differential reporting exemptions:

NZ IAS 1 - Presentation of financial Statements

Note disclosure on accounting and assumptions.
Note disclosure on the Councils' capital management policy.

NZ IAS 17 – Leases

Note disclosure of future minimum lease payments under non-cancellable operating leases.

NZ IAS 24 – Related party disclosure

Note disclosure key management personnel compensation.

New Zealand Teachers Council Statement of Accounting Policies

For the year ended 30 June 2008

NZ IFRS 7 – Financial Instruments disclosure

Information that enables the users to evaluate the nature and extent or risk arising from financial instruments.
Detail or risk arising from credit, liquidity and market risk and how this risk is managed
Qualitative disclosure of risk arising from financial instruments.
Quantitative disclosure of risk arising from financial instruments
Details of maximum exposure to credit risk
Analysis of the age of financial assets that are past due.
Maturity analysis of financial liabilities.
Sensitivity analysis of market risk and other price risk.

First year of preparation under NZ IFRS

This is the first set of financial statements prepared using NZ IFRS, and comparatives for the year ended 30 June 2007 have been restated to NZ IFRS accordingly. Reconciliations of equity and surplus/(deficit) for the year ended 30 June 2007 under NZ IFRS to the balances reported in the 30 June 2007 financial statements are detailed in note 27.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS statement of financial position as at 1 July 2006 for the purposes of the transition to NZ IFRS.

The preparation of financial statements that conform to NZ IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which forms the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only the period or in the revision and future periods if the revision affects both current and future periods.

Measurement base

The financial statements have been prepared on a historical cost basis, except where modified by the measurement of equity investments and derivative financial instruments at fair value.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Council is New Zealand dollars.

Budget Figures
The budget figures are those approved by New Zealand Teachers Council at the beginning of the financial year. The budget figures have been prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements. They comply with NZ IFRS and other applicable Financial Reporting Standards as appropriate for public benefit entities.

Revenue
The New Zealand Teachers Council derives revenue through the charging of fees for practising certificates, Limited Authority to Teach applications, Provisional to Full applications, non teacher police vet applications, teacher education programme approval income and income from investments. Practising certificate fees are charged on a three-yearly basis.

The income received in advance, as at 30 June 2004, is amortised to income in equal monthly installments over three years and from 1 July 2004, a portion of the revenue received from practising certificate fees is recognised in the month of receipt.

Revenue from fees received after 30 June 2004 is allocated proportionally over the period to which it relates. The unearned portion of fees is shown under current liabilities.

Interest income is recognised using the effective interest method.

All other revenue is recognised when earned and is reported in the financial period to which it relates.

Goods & Services Tax

All items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as an input tax then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of the receivables or payables in the statement of financial position.

The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

Taxation
The New Zealand Teachers Council is a public authority and consequently is exempt from income tax.

Accounts Receivable
Accounts Receivable are measured at their carrying value which approximates their fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

Bad Debts are written off during the period in which they are identified.

Cash and Cash Equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise deposits with banks and bank and cash balances, net of bank overdrafts. Term deposits held for 90 days or less are classified as cash and cash equivalents.

Term Deposits
At each balance date the Council assesses whether there is any objective evidence that a term deposit is impaired.

Investment in term deposits are initially measured at their carrying value which approximates their fair value plus transaction costs if any.

After initial recognition the term deposits are measured at amortised cost using the effective interest method.

For term deposits, impairment is established when there is objective evidence that the Council will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter bankruptcy and default in payments are considered indicators that a deposit is impaired.

Property, Plant and Equipment:
The major classes of Property, Plant and Equipment are as follows:

- Office Equipment
- Computer Equipment
- Furniture & Fittings
- Office Fitout

Items of Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses.

Property, Plant and Equipment vested from the Teacher Registration Board 1 February 2002 were transferred at their net book values. The vested assets will continue to be depreciated over their remaining useful lives.

Additions

The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.

Where an asset is acquired at no cost, or obtained for a nominal cost, it is recognised at fair value when control over the asset is obtained.

Disposals

Where an item of plant and equipment is disposed of, the gain or loss recognised in the statement of financial performance is calculated as the difference between the net sale price and the carrying amount of the asset.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant and equipment are recognised in the statement of financial performance as they are incurred.

Depreciation
Depreciation is charged to the statement of financial performance using the straight-line method. Depreciation is set at rates that will write off the cost or fair value of the assets, less their estimated residual values, over their useful lives.

The estimated useful life and resulting rates are as follows:

Class of Asset

Estimated Life

Depreciation Rate

Office Equipment Computer Equipment

Furniture & Fittings Office Fitout

5 Years

3 Years

15 Years

5 Years

20%

33.3%

6.7%

20%

The residual value of assets is reassessed annually.

Intangible Assets

These are comprised of software acquisition and development including upgrades of existing software.

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and to bring to use the specific software.

Costs that are directly associated with the development of software for internal use by the Council, are recognised as an intangible asset. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads.

Expenses

Staff training costs are recognised as an expense when incurred.

Costs associated with maintaining computer software are recognised as an expense when incurred.

Costs associated with the development and maintenance of the Council website are recognised as an expense when incurred.

Amortisation

Amortisation is charged to the statement of financial performance on a straight-line basis over the useful life.

The estimated useful life is as follows:

Estimated Life

Amortisation Rate

Acquired Software

3 years

33%

Developed Software

3 years

33%

The Intangible assets above are deemed to have finite lives.

Impairment of non-financial assets

Property, Plant and Equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the assets ability to generate net cash inflows and where the Council would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an assets carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount.

The total impairment loss is recognised in the statement of financial performance.

The reversal of an impairment loss is recognised in the statement of financial performance.

Creditors and Other Payables

Creditors and other payables are initially measured at their carrying values, which approximate their fair value and are subsequently measured at amortised cost using the effective interest method.

Employee Entitlements

Short-term employee entitlements

Employee entitlements that Council expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date, and sick leave.

The Council recognises a liability for sick leave, if material, to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date; to the extent the Council anticipates it will be used by staff to cover future absences.

The Council does not have bonus schemes or long service leave available to staff.

Superannuation schemes

Obligations for contributions to KiwiSaver and the Government superannuation fund are accounted for as a defined contribution superannuation scheme and are recognised as an expense in the statement of financial performance as incurred.

Operating Leases

Operating lease payments, where the leasor effectively and substantially retains all the risks and benefits of ownership of the leased items are included in the Statement of Financial Performance. Operating lease expenses are recognised on a straight-line basis over the term of the lease.

Financial Instruments

The Council uses financial instruments as part of its normal operations. These financial instruments include cash and cash equivalents, debtors, term deposits, and creditors. All financial instruments are recognised in the Statement of Financial Position and all revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance. All financial instruments are recognised and stated at fair value.

Cash Flow statement

The Cash Flow Statement is prepared exclusive of GST, which is consistent with the method used in the Statement of Financial Performance.

The following are the definitions of the terms used in the Cash Flow Statement:

Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition, holding and disposal of Property, Plant and Equipment and of investments. Investments can include securities not falling within the definition of cash.
Financing activities are those activities that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash.
For the purposes of the Cash Flow Statement, cash and cash equivalents comprise deposits with banks and bank and cash balances, net of bank overdrafts. Deposits are included when they have a maturity of no more than ninety days from date of acquisition.

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 that cannot be identified in an economically feasible manner with a specific output

Indirect costs are those costs which cannot be identified in an economically feasible manner with a specific output.

Changes in Accounting Policies

There have been no changes in accounting policies. All policies used for the preparation of the financial statements have been applied on a basis consistent with previous years other than those resulting from the transition to NZ IFRS.

New Zealand Teachers Council - Notes to the financial statements

Return to contents

1	Revenue	2008 Actual	2008 Budget	2007 Actual

	Fees	3,209,544	3,402,917	3,373,246
	Limited Authority to Teach Fees	42,814	31,952	43,765
	Non teacher police vetting	171,044	160,020	172,235
	Provisional to full registration	387,265	341,816	351,959
	Crown	178,000	178,000	178,000
	Teacher education approvals	67,656	38,750	43,936
	Discipline Recovered	100	5,000	-
	TOTAL	4,056,423	4,158,455	4,163,141

2	Other operating income	2008 Actual	2008 Budget	2007 Actual

	Sundry Income	9,383	4,500	7,217
	TOTAL	9,383	4,500	7,217

3	Other operating expenses	Note	2008 Actual	2008 Budget	2007 Actual

	Administrative		1,203,813	1,199,088	972,401
	Audit fees to Auditors:
	- External Audit		37,500	37,500	33,700
	- Other Services		7,500	7,500	7,238
	Professional/Consultancy Fees		53,447	110,380	96,061
	Advisory committees		28,088	52,490	21,421
	Council member fees		196,688	233,975	205,764
	Complaints/Discipline		203,146	232,760	107,703
	Rent		277,632	253,219	194,549
	TOTAL		2,007,814	2,126,911	1,638,838

New Zealand Teachers Council - Notes to the financial statements

4	Employee benefit costs	2008 Actual	2008 Budget	2007 Actual

	Wages and salaries	2,317,120	2,375,945	1,897,470
	Staff Professional Development	47,649	118,797	44,466
	Superannuation	33,849	32,950	29,864
	KiwiSaver Employer Contributions	262	-	-
	Temporary Staff	57,977	35,700	6,962
	ACC Levies	8,279	11,167	(42)
	Payroll Fees	4,920	4,286	5,247
	TOTAL	2,470,056	2,578,845	1,983,967

Property, plant and equipment

Computer Equipment

Office Equipment

Office Fitout

Fixtures and fittings

Work in Progress

Total

Cost

Balance at 1 July 2006

257,921

114,179

227,557

124,005

723,662

Additions

40,101

23,811

7,109

17,716

88,737

Disposals

(58,228)

Balance at 30 June 2007

239,794

137,990

234,666

141,721

754,171

Balance at 1 July 2007

239,794

137,990

234,666

141,721

754,171

Additions

6,280

7,645

5,855

49,363

69,143

Disposals

Balance at 30 June 2008

246,074

137,990

242,311

147,576

49,363

823,314

Depreciation and impairment losses

Balance at 1 July 2006

159,805

72,648

109,035

28,182

369,670

Depreciation charge for the year

33,663

21,865

38,296

8,709

102,533

Impairment

Balance at 30 June 2007

193,468

94,513

147,331

36,891

472,203

Depreciation and impairment losses

Balance at 1 July 2007

193,468

94,513

147,331

36,891

472,203

Depreciation charge for the year

22,752

16,049

31,090

9,730

79,621

Impairment

Balance at 30 June 2008

216,220

110,562

178,421

46,621

551,824

Carrying amounts

At 30 June 2007

46,326

43,477

87,335

104,830

281,968

At 30 June 2008

29,854

27,428

63,890

100,955

49,363

271,490

Deferred Lease Liability

This liability reflects the building owner contribution and rent holiday provided to the Council upon taking the lease for its premises at 93 The Terrace, Wellington.

These contributions will be fully amortised by October 2010.

7	Intangible assets
		Acquired Software
	Cost
	Balance at 1 July 2006	333,263
	Balance at 30 June 2007	394,506
	Balance at 30 June 2008	412,576

	Accumulated Amortisation and impairment losses
	Balance at 1 July 2006	56,996
	Amortisation charge for the year	111,299
	Disposals	-
	Balance at 30 June 2007	168,295

	Balance at 1 July 2007	168,295
	Amortisation charge for the year	122,059
	Disposals	-
	Balance at 30 June 2008	290,354

	Carrying Amounts
	At 1 July 2006	276,267
	At 30 June 2007	226,211
	At 30 June 2008	122,222

Intangibles are reviewed for impairment annually. There have been no indications of impairment in 2008 (2007: nil). The intangible assets have a useful life of three years.

8	Trade and other receivables
		Note	2008 Actual	2007 Actual
	Trade receivables		112	27,706
	Accrued interest		175,358	133,684
	Prepayments		20,266	24,088
	TOTAL		195,736	185,478

The carrying value of receivables approximates their fair value. All receivables are deemed collectable and no impairment allowance has been made.

9	Cash and cash equivalents
		2008 Actual	2007 Actual
	Bank balances	419,992	511,700
	Term deposits (less that 90 days)	5,111,964	4,560,284
	Cash and cash equivalents	5,531,956	5,071,984

	Cash and cash equivalents in the statement of cash flows	5,531,956	5,071,984

The carrying value of short-term deposits with maturity dates of ninety days or less approximates their fair value.

The weighted average effective interest rate for term deposits is 8.64% (2007: 7.93%).

10	Term Deposits (as at Balance Date)
		2008 Actual	2007 Actual
	Term Deposits less than 90 days	5,111,964	4,560,284
	Term Deposits greater than 90 days	2,045,630	2,905,116
	Total Value of Term Deposits	7,157,594	7,465,400

The weighted average effective interest rate for term deposits is 8.64% (2007: 7.93%).

11	Cash flow reconciliation from operating activities
	Reconciliation of surplus for the period with net cash flows from operating activities:	Note	2008 Actual	2007 Actual
	Surplus for the period	12	(448,129)	587,870

	Add back non-cash items:
	Depreciation and assets written off		79,622	102,532
	Amortisation		122,059	111,299
	Total non-cash items		201,681	213,831


	Movements in working capital:
	(Increase)/decrease in Accrued Interest		(41,674)	59,330
	(Increase)/decrease in Prepayments		3,822	(16,388)
	(Increase)/decrease in trade and other receivables		27,594	(16,062)
	Increase/(decrease) in trade and other payables		(62,910)	131,548
	Increase/(decrease) in GST Payable		16,193	(20,646)
	Increase/(decrease) in Fees Received in Advance		(138,491)	(552,507)
	Increase/(decrease) in employee benefits		75,467	14,057
	Increase/(decrease) in Deferred Lease Liability		(16,601)	(19,657)
	Increase/(decrease) in Accruals		70,748	-
	Net movement in working capital		(65,852)	(420,325)

	Net cash inflow/(outflow) from operating activities		(312,300)	381,376

12	Employee benefits	2008 Actual	2007 Actual
	Current liabilities
	Liability for annual leave	94,986	89,232
	Accrual for sick leave	123,406	53,693
	TOTAL	218,392	142,925

13	Trade and other payables
		Note	2008 Actual	2007 Actual
	Trade payables		291,460	354,370
	GST payable		20,628	4,435
	Income in advance		2,110,319	2,248,811
	Other non-trade payables and accrued expenses		202,768	132,020
	TOTAL		2,625,176	2,739,636

Trade payables and other payables are non-interest bearing and are normally settled on 30-day terms; therefore the carrying value and other payables approximates their fair value.

14	Council member remuneration
	Total value of remuneration paid or payable to each Council Member during the year was:
		2008 Actual	2007 Actual
	Chair – Joanna Beresford	-	58,233
	Chair – Kathy Smith	49,744	18,506
	Chair (Acting) – Barbara Arnott	3,802	-
	Council – Barbara Arnott	12,608	14,938
	Council – Nola Hambleton	20,036	12,612
	Council – Debra Marshall-Lobb	-	5,522
	Council – Lyn Brash	19,094	13,226
	Council – Margaret Franken	15,473	18,707
	Council – Irene Symes	11,370	12,136
	Council – Diane Leggett	16,345	9,250
	Council – Jill Page	19,549	13,867
	Council – Margaret Smith (formerly Wilson)	17,710	15,490
	Council – Toni Waho	-	3,416
	Council – Steve Wood	10,958	9,860
	TOTAL	196,689	205,764

The Council has had Directors and Officers Liability and Professional Indemnity insurance in place during the financial year in respect of the liability or costs of Council members and employees.

Council members received a daily meeting fee of $385.

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

15	Employee remuneration
	Total remuneration paid or payable
		2008 Actual	2007 Actual
	100,000 – 109,999	2	2
	110,000 – 119,999	1	-
	120,000 – 129,999	-	-
	130,000 – 139,999	-	-
	140,000 – 149,999	-	1
	150,000 – 159,999		-
	160,000 - 169,999	1	-

No employees or Council members received compensation or other benefits in relation to cessation. The Directors total remuneration falls in the 160,000 – 169,999 band.

Subsequent event

There are no significant events subsequent to balance date.

Explanation of financial variances from budget

The following notes explain the significant variances between Budget and Actual Variances (Under)/Over.

STATEMENT OF FINANCIAL PERFORMANCE

Revenue

Total income exceeded budget by $7,109.

Fees ($193,369)

Projected fee income is based on the practising certificate expiry date. The Council experienced a decrease of (19.93%) against budget or the equivalent of 4,138 applications. The budget had factored in the expected increase from the data share from the Ministry of Education payroll which has yet to become legislation (now expected later in 2009). In addition there was an expected increase in renewals towards the end of the financial year as the peak renewal period began but this increase was not as high as expected. On a positive note new registration applications experienced an increase of (12.91%) against budget or the equivalent of 1,383 applications.

Interest $101,254

Lower than expected expenditure and a weighted average interest rate of 8.64% resulted in increased interest income over the financial year.

Limited Authority to Teach $10,861

The Council took a conservative budget position on the basis that its policy was to actively reduce the number of LAT's issued. However evidence from the sector indicates that there will always be a need for a LAT category and that revenue of around $40k per annum is what the Council can expect to earn from this category. The Council introduced the multi-year LAT (2 or 3 yrs) during the financial year and this will be amortised into the revenue streams on the anniversary of the LAT.

Non Teacher Police Vetting Fees $11,024

The NTPV unit exceeded budget by (6.89%) or the equivalent of 1,240 applications which assists the Council in reducing the amount of its subsidy of this function. The NTPV unit remains subject to future proposed legislation that will determine its future within the Council.

Provisional to Full Registration $45,449

This was a positive gain for the Council with more prospective teachers electing to become fully registered teachers. The result being the budget was exceeded by 13.30% or the equivalent of 639 applications.

Teacher Education Approvals $23,906

The Council undertook more approvals/re-approvals of teacher education provider institutions than was originally budgeted.

Expenditure

Employee Benefit Costs ($108,789)

The salaries component of this expenditure line was under budget by $128k due to the resignations of staff in the teacher education and policy areas of the Council. As at 30 June 2008, these positions were still vacant.

Salary expenditure was under budget for the year. This was partially offset by the NZ IFRS adjustment for sick leave of $54k and the use of temporary staff for $22k. The other main influence was $75k not spent on staff professional development. This is equivalent to 5% of salaries for all staff and due to timing of courses, relevance of courses and the capacity of individual business units to enable staff to attend courses remained unspent at year end.

Depreciation and Amortisation expense ($31,103)

This was under budget primarily due to the deferral of the registration system tuning release work to the 2009 financial year.

Other Operating Expenses ($119,097)

The following areas of expenditure were less than expected:

Council member fees ($37,287)
Council/Chair expenses ($39,210)
Conference expenses ($21,542)
COE workshops ($60,684)
Professional/consultancy ($56,933)
Advisory committees ($24,402)
Complaints/discipline ($29,614).

The following items of expenditure were greater than that budgeted:

Advertising/recruitment $28,578
Legal fees $93,814
Stakeholder communication $12,723
Program Approval expenses $19,959.

The Council member fees and expenses were under budget due to the timing of claims received and number of claims made as well as the Council having a ministerial vacancy for the duration of the financial year.

The COE workshops allowed for a number of teacher release days which were not claimed by workshop participants.

The professional consultancy was largely affected by the deferral of the impairment committee consultation and the Review of the Council structure and composition to 2009. This work has been classified as a special project.

Special Projects ($91,721)

Special projects were under budget due to the deferral of one project to the 2009 financial year together with other projects expenditure being lower than expected.

STATEMENT OF FINANCIAL POSITION

Current Assets

Cash $2,665,286

The transition to NZ IFRS has required that all term deposits that mature in 90 days or less of balance date be reclassified as Cash or Cash Equivalents, increasing the cash assets at year end. Higher interest revenue and lower expenditure than budgeted have also contributed to this variance.

Term Deposits ($1,984,375)

The NZ IFRS reclassification of term deposits that mature within 90 days of balance date as Cash or Cash Equivalents has resulted in a reduction in the term deposit balance at year end.

Accrued Interest $115,388

Lower than expected expenditure and an actual weighted average interest rate of 8.64% has resulted in higher interest income.

Non-Current Assets

Property, Plant and Equipment ($91,915)

The transition to NZ IFRS has required that all software be reclassified as intangible assets, these were previously included in fixed assets resulting in a negative variance at year end.

The budget for capital purchases for the year was $146,537. Compared to the actual purchases of $37,851 this budget was not met due to the deferral of the TCR Tuning release, $85,000 being deferred until the 2009 financial year and other items of capital expenditure either delayed or not undertaken as not required.

Liabilities

Accounts Payable $201,460

A higher than projected due to timing of payments and receipt of invoices for services provided to the Council.

Fees Received in Advance ($159,604)

The income earned this financial year was lower than budgeted which led to a decrease in the fees received in advance.

Related parties

Identity of related parties

The Council is an autonomous Crown Entity and receives an annual grant from the Ministry of Education $178,000 (2007: $178,000) and all conditions of the grant have been met in the financial year. This is not a significant portion of the Council's income.

The Council enters into transactions with government departments, State-owned enterprises and other Crown Entities. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect the Council would have adopted if dealing with that entity at arm's length in the same circumstances have not been disclosed as related party transactions.

Explanation of transition to NZIFRS

These are New Zealand Teachers Council's first financial statements prepared in accordance with NZ IFRS.

The accounting policies set out in the notes to the financial statements have been applied in preparing financial statements for the year ended 30 June 2008, the comparative information presented for the year ended 30 June 2007 and in the preparation of the opening NZ IFRS Balance Sheet at 1 July 2006 (New Zealand Teachers Council date of transition)

In preparing its opening NZ IFRS Balance Sheet and restating the 2007 financial statements, New Zealand Teachers Council has adjusted amounts required previously in financial statements prepared in accordance with its old basis of accounting (previous GAAP). An explanation of how the transition from previous GAAP to NZ IFRS has affected the New Zealand Teachers Council's financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.

Intangible assets

Under NZ IFRS computer software is recognised as an intangible asset and amortised over its useful life. Under previous NZ GAAP computer software was recognised as property plant and equipment and depreciated over its useful life.

Cash and Cash Equivalents

NZ IFRS suggest that an investment normally qualifies as a cash and cash equivalent only when it has a short term maturity of, say, three months or less from the date of acquisition. This definition is more descriptive than previous NZ GAAP and results in a reclassification between Investments and Cash and cash equivalents.

Sick leave

NZ IFRS recognises a provision for the sick leave obligation at year end that is expected to be used in the 12 months subsequent to balance. No provision for sick leave was recognised under previous NZ GAAP.

Notes to the financial statements

Explanation of transition to NZIFRS (continued)

Reconciliation of the equity

Note

Transition Balance Sheet

1 July 2006

Comparative Balance Sheet

30 June 2007

Previous

GAAP

Effect of transition to NZ IFRS

NZIFRS

Previous

GAAP

Effect of transition to NZ IFRS

NZIFRS

Property, plant and equipment

621,606

(276,267)

345,339

508,179

(226,211)

281,968

Intangible assets

276,267

226,211

Total non-current assets

621,606

508,179

Accrued Interest

193,014

133,684

Prepayments

7,700

24,088

Trade and other receivables

11,644

27,706

Investments

7,151,520

(3,964,425)

3,187,095

7,465,400

(4,560,284)

2,905,116

Cash and cash equivalents

544,608

3,964,425

4,509,033

511,700

4,560,284

5,071,984

Total current assets

7.908,486

7,908,486

8,162,578

Total assets

8,530,092

8,670,757

Equity

Accumulated Funds

5,202,247

(79,946)

5,122,301

5,790,117

(53,694)

5,736,423

Total equity

5,202,247

(79,946)

5,122,301

5,790,117

(53,694)

5,736,423

Liabilities

Accounts Payable

354,842

486,390

GST Due for Payment

25,081

4,435

Fees Received in Advance

2,801,318

2,248,811

Employee Entitlements

75,174

79,946

155,120

89,231

53,694

142,925

Deferred Lease Liability

71,430

51,773

Total current liabilities

3,327,845

79,946

3,407,791

2,880,640

53,694

2,934,334

Total Liabilities

3,327,845

79,946

3,407,791

2,880,640

53,694

2,934,334

Total Equity and Liabilities

8,530,092

8,670,757

Reconciliation of the surplus for the year ended 30 June 2007

	Note	Previous GAAP	Effect of transition to NZ IFRS	NZIFRS
Revenue		4,163,141	-	4,163,141
Other operating income		7,217	-	7,217
Finance income		579,942	-	579,942
Total Income		4,750,300	-	4,750,300

Employee Benefit costs		2,010,219	(26,252)	1,983,967
Depreciation and amortization expense		213,831	-	213,831
Other operating expenses		1,938,379	-	1,938,379
Total expenses		4,162,429	(26,252)	4,136,177


Net Surplus		587,871	26,252	614,123

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19 Explanation of transition to NZIFRS (continued)

Reconciliation of cash flows for the year ended 30 June 2007

	Note	Previous GAAP	Effect of transition to NZIFRS	NZIFRS
Cash flows from operating activities
Fees		2,804,675	-	2,804,675
Limited Authority to Teach		43,765	-	43,765
Crown Revenue		178,000	-	178,000
Non-Teacher Police Vetting		172,235	-	172,235
Provisional to Full Registration		351,959	-	351,959
Teacher Education Approvals		43,936	-	43,936
Sundry Income		7,217	-	7,217
Cash paid to suppliers		(3,839,037)	-	(3,839,037)
Cash generated from operations		(237,250)	-	(237,250)

Interest received		639,272	-	639,272
Net GST refunded/(paid)		(20,646)	-	(20,646)
Net cash flows from operating activities		381,376	-	381,376

Cash flows from investing activities
Proceeds from sale of property, plant and equipment		-	-	-
Acquisition of property, plant and equipment		(100,404)		(100,404)
Acquisition of Intangible Assets		-
Net Transfer of Investments to Cash & Cash Equivalents		-	2,979,123	2,979,123
Net cash flows from investing activities		(100,404)	2,979,123	2,878,719

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19 Explanation of transition to NZIFRS (continued)

Reconciliation of cash flows for the year ended 30 June 2007 (continued)

	Note	Previous GAAP	Effect of transition to NZIFRS	NZIFRS
Cash flows from financing activities
Proceeds from equity injection		-	-	-
Borrowings raised		-	-	-
Repayment of borrowings		-	-	-
Payment of finance lease liabilities		-	-	-
Net cash flows from financing activities		-	-	-

Net increase in Cash and Cash Equivalents		280,972	2,979,123	3,260,095
Cash and cash equivalents at beginning of year		7,696,128	(5,884,239)	1,811,889
Effect of exchange rate fluctuations on cash held		-	-	-
Cash and cash equivalents at end of year		7,977,100	(2,905,116)	5,071,984

Made up of the following:
Closing Cash and Cash Equivalents		7,977,100	(2,905,116)	5,071,984

AUDIT REPORT

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TO THE READERS OF
NEW ZEALAND TEACHERS COUNCIL'S
FINANCIAL STATEMENTS AND STATEMENT OF SERVICE PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2008

The Auditor-General is the auditor of New Zealand Teachers Council (the Council). The Auditor General has appointed me, Clare Helm, using the staff and resources of Audit New Zealand, to carry out the audit on his behalf. The audit covers the financial statements and statement of service performance included in the annual report of the Council for the year ended 30 June 2008.

Unqualified Opinion

In our opinion:

The financial statements of the Council on pages 42 to 69:

comply with generally accepted accounting practice in New Zealand; and
fairly reflect:

the Council's financial position as at 30 June 2008; and
the results of its operations and cash flows for the year ended on that date.

The statement of service performance of the Council on pages 30 to 41:

complies with generally accepted accounting practice in New Zealand; and
fairly reflects for each class of outputs:

its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the financial year; and
its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the financial year.

The audit was completed on 24 October 2008 and is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence.

Basis of Opinion

We carried out the audit in accordance with the Auditor-General's Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader's overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
verifying samples of transactions and account balances;
performing analyses to identify anomalies in the reported data;
reviewing significant estimates and judgements made by the Council;
confirming year-end balances;
determining whether accounting policies are appropriate and consistently applied; and
determining whether all financial statement and statement of service performance disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Council and the Auditor

The Council is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the Council as at 30 June 2008 and the results of its operations and cash flows for the year ended on that date. The statement of service performance must fairly reflect, for each class of outputs, the Council's standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Council responsibilities arise from the Crown Entities Act 2004.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

Independence

When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.

Other than the audit, we have no relationship with or interests in the Council.

Clare Helm
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand

Matters Relating to the Electronic Presentation of the Audited Financial Statements and Statement of Service Performance

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This audit report relates to the financial statements and statement of service performance of New Zealand Teachers Council for the year ended 30 June 2008 included on the New Zealand Teachers Council's website. The New Zealand Teachers Council is responsible for the maintenance and integrity of the New Zealand Teachers Council's website. We have not been engaged to report on the integrity of the New Zealand Teachers Council's website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website.

The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance and related audit report dated 29 October 2008 to confirm the information included in the audited financial statements and statement of service performance presented on this website.

Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

New Zealand Teachers Council Annual Report 2007-2008

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