Annual Report 2009

Statement of Purpose
Mission Statement Ū ki te ako, tu tangata ai apōpō
Functions
Values
Core Responsibilities
Chair and Director’s Report
The year at a glance from 1 July 2008 to 30 June 2009
Strategic Overview
Other Professional Leadership Achievements
Teacher Registration
Teacher Education
Maintenance of Professional Standards
Non Teacher Police Vetting
Information Communication Technology
   New Developments
      Developed proposal for data share with the Ministry of Education
      Upgrades of the Registration System (TCR)
      Upgrade of the financial system
Governance
   Legal Responsibilities
   Directions Issued by Ministers
   Structure of the Governance Council
   Governance and Council Member Appraisal
   Council Committees
   Disciplinary Bodies
Members of the New Zealand Teachers Council
Financial
Disclosure of Fees 2008 to 2009
   Council
   Disciplinary Tribunal
   Complaints Assessment Committees
   Early Childhood Education Advisory Group
   Māori Medium Advisory Group
New Zealand Teachers Council Staff
The Council’s Staffing Profile
Disclosure of Remuneration Information
      Staff Profile
      Assessing Organisational Health and Capability
Good Employer Requirements
   Leadership, accountability and culture
   Recruitment selection and retention
   Employment development, promotion and exit
   Financial Statements
Statement of Responsibility
Statement of Objectives and Service Performance
   Output 1 – Teacher Registration
      Objectives of Output
      Key Performance Indicators
   Output 2 – Maintenance of Professional Standards
      Objectives of Output
      Key Performance Indicators
   Output 3 - Professional Leadership
      Objectives of Output
      Key Performance Indicators
   Output 4 - Teacher Education
      Objectives of Output
      Key Performance Indicators
   Output 5 – Non Teacher Police Vetting
      Objectives of output
      Key Performance Indicators
New Zealand Teachers Council Statement of Comprehensive Income
New Zealand Teachers Council Statement of Movements in Equity
New Zealand Teachers Council Statement of Financial Position
New Zealand Teachers Council Statement of Cash Flows
New Zealand Teachers Council Statement of Contingent Liabilities
New Zealand Teachers Council Statement of Commitments
New Zealand Teachers Council Statement of Accounting Policies
Significant Accounting Policies
New Zealand Teachers Council - Notes to the financial statements
Audit Report
Directory
      Legal Counsel
      Auditor
      Accountants
      Insurers
      Bankers

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.

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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Values

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The core values underpinning the Council are:

Core Responsibilities

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In carrying out its functions the Council will:

Chair and Director’s Report

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The objective of enhancing the capacity and standing of the teaching profession underpins all Council activities. By working towards this objective, the Council makes a significant contribution to ensuring a safe and high-quality teaching and learning environment for all children and young people.

In 2008-09 the Council has focused on strengthening the requirements for entry and on-going membership of the teaching profession. We have:

We continue to benchmark our practice internationally to promote and maintain the highest professional standards possible. Besides successfully maintaining networks with Australian teacher registration and accreditation authorities, we attended an international teaching councils' conference hosted by the General Teaching Council of Wales. With 20 registration authorities participating, this conference provided an excellent forum in which to focus on common issues such as building teacher effectiveness and professionalism, regulating in the public interest and international teacher mobility.

New Zealand is an attractive destination for many overseas teachers. We have continued 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.

In supporting teachers to be able to continue to work effectively, the Council has finalised the rules for the work of an Impairment Committee. This committee will focus on helping teachers who have had significant health problems cope with and rehabilitate themselves to the professional demands of teaching. The committee will include experienced early childhood, primary and secondary school teachers and appropriate medical practitioners.

Both the Early Childhood Education Advisory Group and the Māori Medium Advisory Group have provided valuable advice to the Council. They were the catalyst for the development and completion of two key pieces of research that we undertook in 2008-09. The publication of a paper titled, Conceptualising Leadership in Early Childhood Education in Aotearoa New Zealand (Thornton, Wansbrough, Clarkin-Phillips, Aitken and Tamati, 2009) highlights the critical importance of leadership in strengthening the quality of early childhood education. This will provide the platform for further work promoting the development of a leadership strategy for this sector.

The second research initiative has focused on strengthening proficiency in te reo Māori of graduates from Māori medium initial teacher education programmes. We contracted the Haemata group to complete a descriptive study of the current provision of initial teacher education for teachers in Māori medium settings (Murphy, McKinley and Bright, 2008). On the basis of this report, we have planned further work to build the evidence base for sound initial teacher education programmes that will strengthen proficiency in te reo Māori of graduates.

Finally, 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. We have endeavoured to increase the depth and breadth of our external interactions at all levels throughout the education sector and will continue our capacity and capability to engage effectively with the profession.

Ngā mihi nui ki a koutou kātoa

The year at a glance from 1 July 2008 to 30 June 2009

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Strategic Overview

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Currently New Zealand has over 90,000 teachers with current practising certificates. 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.

In contributing towards a high-quality teaching workforce for New Zealand, the Council focuses on strengthening the standards for the progressive entry points to the profession and on-going membership of it. These strategic points of influence are shown in Figure 1.

Key Strategic Goals 2008-11 - What has been achieved?

In 2008-09, the Council made significant progress towards achieving the goals set out in the Statement of Intent for 2008-11:

Goal 1: Strengthen the quality of teacher education graduates

Goal 2: Strengthen the induction of provisionally registered teachers

Goal 3: Review and strengthen teaching standards for entry to the profession and for on-going registration

Goal 4: Promote effective leadership for learning

Other Professional Leadership Achievements

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The Council has delivered seven workshops in Māori medium settings on the Council’s Code of Ethics for Registered Teachers Ngā Tikanga Matatika Mō Ngā Pouako Kua Rēhitatia, as part of its professional development programme.

Communication with teachers and the education sector of these strategic initiatives has continued to be supported through distribution of the quarterly newsletter, ^ForTeachers ^MōNgāKaiwhakaako. Electronic messages from the Director have kept professional leaders in touch with Council issues and key events.

Figure 1 Strategic focus of the Council on entry points 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 Satisfactory Teacher Dimensions.

A teacher must have a satisfactory police vet every three years. This gives another level of assurance to parents and the public of the provision of a safe teaching and learning environment for children and young people. This year there have been significant delays (over 30 working days) in the return of police vets from the Police Vetting and Validation unit. The Council has been working with New Zealand Police to develop a more efficient transfer of information between the two organisations and on the possibility of being able to exchange this information electronically safely and securely.

The Council has communicated extensively with employers and professional leaders to increase awareness of the legal requirements to maintain an accurate school/centre employment database of all staff employed in teaching positions. From 1 July 2009, the Council introduced a fee for those teachers applying late for a practising certificate who are already employed in a teaching position.

The Education Amendment Bill (2009) currently before Parliament will allow for a data-sharing programme between the Ministry of Education and the Council, to identify unregistered teachers who are currently on the Ministry’s payroll. This will enable easier identification of teachers being employed unlawfully.

In 2008-09, the Council processed almost 45,000 registration applications within the agreed timeliness measures. In addition, the Council communicated with a large number of individuals by email (over 15,000 emails usually responded to within two working days) and phone calls (over 41,000 calls with over 90% answered within 30 seconds).

Overseas teachers have completed a diverse range of initial teacher education qualifications and training programmes. The processing of their applications often requires the Council to work closely with other agencies to deal with the issue of comparability of teaching qualifications, the evaluation of overseas qualifications and the processes for registration. From 1 July 2009, a fee was introduced for applicants who have not previously been registered in New Zealand and who have either completed their initial teacher education programme overseas, or who are applying through the Council's discretionary pathway.  The Council is the lead agency in determining the registration status of an overseas applicant.

Teacher Education

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The Council is responsible for the approval, reapproval and monitoring of initial teacher education (ITE) programmes throughout New Zealand. All ITE 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 conjunction with other quality assurance agencies - in particular, the Committee on University Academic Programmes, the New Zealand Qualifications Authority and the Institutes of Technology and Polytechnics Quality.

During the 2008-09 year, a total of 20 programmes were considered for approval.

Significant trends have been:

The review of the Council’s processes for approving and monitoring ITE programmes has now moved to its second stage, with the establishment of a reference group of representatives of 21 education groups across the sector. The review is focused on setting requirements for ITE programmes and the establishment of a new approvals process.

The Council developed a policy for academic entry requirements for graduate diploma in teaching programmes across all three education sectors.

The Council also met with student teachers who were at the point of graduation and applying for provisional registration. The focus of these visits included the Council’s professional leadership role, the Graduating Teacher Standards, the Code of Ethics for Registered Teachers, registration processes and induction and mentoring programmes for beginning teachers.

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 231 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 this number 214 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.

In 2004, as a relatively young organisation, the Council decided to have two
Complaints Assessment Committee (CAC) panels operating to consider reports and complaints regarding a teacher’s conduct. By 2008, the workload for each panel was growing considerably and it was decided to increase the number of panels to three. As the two former panels completed their caseload, the three new panels began their work in the 2008-09 financial year.

The Council also made the decision to form a Competency Advisory Group to assist and advise the Manager: Teacher Practice in matters related to the competency process. This group will begin meeting in August 2009.

On 1 May 2009, the New Zealand Teachers Council (Impairment Process) Rules came into force. The Council is currently establishing an Impairment Committee which will begin considering teachers in September 2009. This committee will consider teachers who are referred to it by the Council or one of its disciplinary bodies. A referral will be made if there is a possibility that a teacher has an impairment that may adversely affect his/her ability to perform the functions required as a teacher. The Impairment Committee will seek to ascertain whether the teacher has an impairment, the nature of the impairment and, what the adverse impacts of the impairment are, or might be on the teacher’s ability to function as a teacher. It will establish whether the teacher is already dealing with, or is proposing to deal with, the impairment. The Impairment Committee will then ascertain precautions or assistance that may be required to enable the teacher to practise competently and safely. The teacher is kept fully informed throughout this process.

As a result of the professional judgements made by these panels, the Council is frequently required to monitor teachers who have agreed to a variety of conditions on their on-going teaching practice. The Council is currently carefully monitoring over 260 teachers.

Besides these five panels, each month the Council itself considers cases in which applicants are applying for registration as teachers and there are questions about their fitness to teach and whether they are of good character.

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, passes them on to the New Zealand Police Vetting Service and then returns the results to the applicant and the school or centre.

The Council exceeded its annual projection of 18,000 applications with the final processed total being 20,255. The provision of this information from New Zealand Police, via the Council, has led to more informed employing authorities.

Non teacher police vetting has been one step, alongside other agency’s processes and procedures, 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 and safety of any individual. The final decision to employ or not has always been with the employing authority, however the Council has contributed to the information available to these parties to make sound and careful decisions surrounding the employment of non teachers and contractors in schools and centres.

Convictions are listed but the New Zealand Police are also able to identify and indicate to employers through a red stamp on the vet result the heightened warning:

The number of red stamps added to vet results are as follows:

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Although the figures above show a decline in red stamps from 2006-07, there will always be individuals who are unsuitable to be employed.

The Education Amendment Bill (2009) currently before the House proposes that schools and early childhood services are able to approach the New Zealand Police directly for vetting of non teachers and contractors rather than via the Council. Amendments are presently with the House and it is projected that the change will be approved by the end of 2009. New criteria would be issued for the categories of people requiring police vet clearances. The employer will be able to work directly with New Zealand Police after legislative change is approved.

Information Communication Technology

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The Council's Information Communication Technology (ICT) infrastructure is continually reviewed, maintained and developed to ensure that 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 two servers were also replaced as part of this process during the 2008-09 year.  The system software has remained stable.

Application software has also stabilised to the point where new releases are in the nature of fine-tuning rather than major changes.

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 to clarify the registration status of employed teachers and enhance the Council’s ability to communicate with teachers, particularly those who have moved schools or centres without changing their prior address.  A feasibility pilot has been completed.  Legislation required to progress this project is expected to be passed by the end of 2009.

Upgrades of the Registration System (TCR)

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This system had several service patches applied, and has had changes made to handle

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 start of the financial year.

Stored-procedure Accounting Middleware (SAM) was installed to allow the previous Registration system (TCR) interface technology to still interoperate.  This was developed and tested prior to installation and has run successfully since.

New financial year

In the coming year, the Council will further enhance the intranet and website. The website has been audited and reviewed for compliance with Government Web standards, and changes made as required.  A project was begun to review the look-and-feel of the site and rewrite some areas of content.  This is still in development.

The defining of a new Electronic Document and Records Management System will be undertaken in the next financial year. Work has already begun with New Zealand Police to develop a system of speedier vet application and results transfer between the two organisations.

Governance

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Legal Responsibilities

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The Council is responsible for administering Part 10 (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.

Directions Issued by Ministers

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The Council received a Whole of Government Direction from the Minister of State Services Commission and Minister of Finance on 21 July 2008 issued under section 107 of the Crown Entities Act 2004. The direction was regarding all-of-government shared authentication services. The Council did not undertake any project in relation to authentication services during the financial year.

The Council is a party to sector wide discussions around authentication and is a member of various working groups associated with authentication services.

Structure of the Governance Council

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The Council is comprised of 11 members.

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 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:

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

These groups have met four times during the year to provide advice to the Council on key initiatives and projects.

Disciplinary Bodies

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There are two bodies to which conduct issues are referred:

Issues of teacher competence are referred to a competency assessor, the Manager: Teacher Practice, who carries out an investigation in consultation with the newly established Competency Advisory Group.  On completion of the investigation, a report with recommendations is made to the full Council, which makes a final decision on the disposal of the competence matter.

On 1 May 2009 the New Zealand Teachers Council (Impairment Process) Rules came into force. Under these Rules the Council, the CAC or the DT can refer a teacher to the Impairment Committee, if they consider the teacher’s conduct or competence is influenced by health issues.  The Impairment Committee will be comprised of a health practitioner, a registered teacher and a member of the Council.

Members of the New Zealand Teachers Council

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Kathy Smith – Chair

Ministerial appointment, Feb 2007 to Jan 2010

Barbara Arnott

Appointed School Trustees Association representative, Feb 2008 to Jan 2011

Lyn Brash

Ministerial appointment, Sep 2007 to Aug 2009

Margaret Franken

Ministerial appointment, Sep 2007 to Jun 2009

One Ministerial Appointment yet to be made

Elected members: Oct 2008 – Oct 2011

Early Childhood
Jenny Varney

Elected early childhood teacher representative

Primary
Ken Wilson

Elected primary school teacher representative

Secondary
Megan Cassidy

Elected secondary school teacher representative

Principals
Pat Newman

Elected principal representative

The nominees from the unions:

The New Zealand Educational Institute (NZEI)

Louise Green

Appointed Jan 2009 to Dec 2011.

The Post Primary Teachers’ Association (PPTA)

Diane Wills

Appointed Jan 2009 to Dec 2011.

Financial

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The Council continues to maintain a sound financial position through monitoring its financial performance on a monthly basis and conducting quarterly re-forecasts which has encouraged more transparency and accountability in its business functions.

The Council has continued to develop strong linkages between its strategic direction and the funding requirements it will need to deliver the strategies. A review of the current fee structure has been completed and risk assessed. As a result of the fee review a new late fee and an overseas fee for applications were introduced, and the Limited Authority to Teach fee was increased to $55.00 from 1 July 2009.

The Council is awaiting the passage of legislation, expected late 2009, to establish data sharing with the Ministry of Education’s payroll section. This will add to the Council’s revenue base 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 conduct monthly reviews of the management accounts to ensure the continuing high-quality 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 2008 to 2009

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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 time, including for those on the Disciplinary Tribunal or one of the panels of the Complaints Assessment Committees.

Remuneration through fees to Council members is all inclusive and no other consultancy or ex gratia payments or benefits are provided. There are a number of members whose daily fee is paid directly to their school, centre or organisation. These Council members are being paid by their institutions and appropriately do not accept a payment for services to the Council.

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.

Complaints Assessment Committees

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The Complaints Assessment Convenor and Chairs receive a daily meeting fee of $475.

Members receive a daily meeting fee of $385.

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.

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.

Note: $- signifies members who did not seek reimbursement of fees.

New Zealand Teachers Council Staff

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The Council’s Staffing Profile

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As at 30 June 2009, the Council employed 46 staff. The equivalent FTE was 43.92.

As at 30 June 2009, 76% of the Council’s staff were female compared with 75% as at

30 June 2008, 82.5% at 30 June 2007 and 85% at 30 June 2006. Total staff numbers had been 40 during these financial years.

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

The staffing structure is represented below.

Disclosure of Remuneration Information

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

Staff Profile

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Seven fixed-term appointments were made during the 2008-09 financial year. 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 New Zealand Police. There were five fixed-term contracts where staff were engaged to assist with administrative tasks. These contracts ranged from two weeks to six months in length.

There were seven resignations in the 2008-09 financial year. This is an annualised staff turnover (by percentage) of 16.00%.

Previously there were 11 resignations 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.

Staff members are informed of the Council’s good employer and associated policies during formal induction, by regular staff training and feedback on policy updates. The Council respects the expertise of its staff and encourages opportunities for input on improving workflow processes and the workplace environment for example by regular team meetings.

The Council will monitor its performance against each of the elements that inform a good employer programme. The analysis of Human Resources data informs this evaluation.

A number of Council policies require Council approval when changes are made and others are approved by the Director. These are publicised to staff using the Intranet and to Council members via hard copy and CD ROM updates. All policies are updated annually and placed on the Intranet for staff reference. HR Bulletins and a summary reference index allow staff to become more informed about Council policies and procedures.

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

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.

As an active member of the State Services Commission (SSC) Public Service Integrity and Ethics Network and HR Forum, best practice is socialised at the Council and where possible initiatives, 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, the Council, in partnership with the Department of Labour, has conducted a gender based pay and employment equity review. The results have been presented to the Director in August 2009.

Recruitment selection and retention

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

The Council has audited its recruitment and appointments process, and all appointments fall in line with the prescribed policies and good practice.

The Council is working to reduce staff turnover by providing robust selection criteria, a supportive workplace and higher job satisfaction.

In the past year the Council has negotiated a variety of more flexible working options for staff so that they can work effectively for the Council and so that it can attract and retain skilled staff.

There are eight staff who have been with the Council more than 5 years and 19 staff that have been with the Council more than 3 years. This compares with five staff with 5 years service in the 2007/08 financial year and 11 with more than 4 years service.

The Council’s average staff service in years is rising:

Employment development, promotion and exit

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Training and development opportunities help to retain staff, but a range of initiatives including career opportunities and varied and challenging work are also factors.

The Council is a small entity and promotion within the organisation is not always an option. However in this financial year the Council has been able to offer promotion to staff within the organisation.

Staff leave to pursue promotion and/or other career opportunities or to travel.

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 used 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 Council’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. 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 was one claim in the 2008-09 financial year under the Council’s travel cover.

Seven staff members are Red Cross or St John’s certificated and suitably qualified to perform first aid.

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.

To further evaluate its performance as a good employer, the Council’s medium term goals in this area were:

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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 following statements of account and the judgments used herein. The 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 these 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 2009 fairly reflect the financial position, the results of operations, the cash flows and service performance of the New Zealand Teachers Council.

Statement of Objectives and Service Performance

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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.

Objectives of Output

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The objectives of this output are to ensure:

Key Performance Indicators

*Applications are declined when they do not meet 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.

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.

Objectives of Output

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The objectives of this output are to:

Key Performance Indicators

*Resolved means that the investigation has been completed.

** Some CAC cases cannot be considered until all parties have agreed to the process.

Output 3 - Professional Leadership

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To develop policy, research and strategic goals to enhance the quality of teaching and the standing of the teaching profession, and to communicate with stakeholders to ensure that the Council works in co-operation with the profession and that its policies and strategic direction are understood.

Objectives of Output

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The objectives of this output are to:

Key Performance Indicators

Output 4 - Teacher Education

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To establish and maintain standards for ITE programmes through approval and reapproval 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.

The Teachers Council approves initial teacher education programmes for the purposes of teacher registration in conjunction with three quality assurance agencies:

Objectives of Output

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The objectives of this output are:

Key Performance Indicators

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*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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To act as a conduit for obtaining a police check for all those non-teachers and contractors employed regularly in schools, kura kaupapa Māori, kindergartens, kohanga reo and other early childhood settings.

Objectives of output

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The objective of this output is to:

This is a requirement of the Education Standards Act 2001. The Council is charged with establishing a cost recovery process that ensures that every person employed in a non-teaching capacity undergoes a police check.

Key Performance Indicators

Reconciliation of Outputs to the Statement of Comprehensive Income

New Zealand Teachers Council Statement of Comprehensive Income

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For the year ended 30 June 2009

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

New Zealand Teachers Council Statement of Movements in Equity

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For the year ended 30 June 2009

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

New Zealand Teachers Council Statement of Financial Position

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As at 30 June 2009

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

New Zealand Teachers Council Statement of Cash Flows

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For the year ended 30 June 2009

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

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 2009

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 Council is not aware of any personal grievances either impending or underway against the Council as at 30 June 2009 (2008, Nil).

The legal proceedings against the Council are for those cases currently in the Complaints/Disciplinary process within the Council as at 30 June 2009. The Council has four possible cases that may be referred to the District and/or High Court in 2010. These are estimated to have legal costs of $20,000. (As at 30 June 2008, there were two cases).

New Zealand Teachers Council Statement of Commitments

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As at 30 June 2009

The non-cancellable operating lease relates to the lease of three and a half floors of an office building. The lease on levels 6, 7 and 9 was renegotiated in November 2007 and the lease for the half floor of level 8 was renegotiated in August 2008. The lease is due to expire on the 8 November 2010 for levels 6, 7 and 9 and 1 September 2011 for the 8 floor half level. The Council has assumed that it will not vacate the lease at the renewal date of 8 November 2010 and 1 September 2011 for each floor for the purposes of this report. 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 2009

Significant Accounting Policies

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Reporting Entity

The 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 New Zealand public, as opposed to making a financial return.

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

The financial statements of the Council are for the year ended 30 June 2009, and were approved by the Council on 28 October 2009.

Basis of preparation

STATEMENT OF COMPLIANCE

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

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

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Judgments and estimations

The preparation of financial statements in conformity to NZIFRS requires judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Where material, information on the major assumptions is provided in the relevant accounting policy or in the relevant note.

The estimate and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Subsequent 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 when the revision affects only that period. If the revision affects both current and future periods, it is reflected in the respective period to which it relates.

Differential Reporting

The Council qualifies for Differential Reporting under the NZIFRS Differential Reporting Framework (3.8) with the size criteria exemption (3.9) as total gross income is less than $20 million and total assets are less than $10 million.

The Council has applied the following differential reporting exemptions:

NZ IAS 1 - Presentation of financial statements

NZ IAS 17 – Leases

NZ IAS 24 – Related party disclosure

NZ IFRS 7 – Financial instruments disclosure

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 the 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 NZIFRS and other applicable Financial Reporting Standards as appropriate for public benefit entities.

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

Interest income is recognised using the effective interest method.

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

Goods and Services Tax

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

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

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

Commitments and contingencies are disclosed exclusive of GST.

Taxation
The 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 with terms of 93 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:

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 Comprehensive Income 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 Comprehensive Income as they are incurred.

Depreciation
Depreciation is charged to the Statement of Comprehensive Income 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:

Intangible assets

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

Acquired computer software licences 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 Comprehensive Income on a straight-line basis over the useful life.

The estimated useful life is as follows:

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 Comprehensive Income.

The reversal of an impairment loss is recognised in the Statement of Comprehensive Income.

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 the 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 Comprehensive Income 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 Comprehensive Income. 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 Comprehensive Income. 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 Comprehensive Income.

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

Cost allocation

The Council has five outputs outlined in the Statement of Intent. These are Teacher Registration, Maintenance of Professional Standards, Professional Leadership, Teacher Education and Non Teacher Police Vetting. The Council has derived the cost of each output using the system outlined below:

Direct costs are directly attributable to an output and are charged directly to the outputs.

Indirect costs are those that cannot be identified in an economically feasible manner with a specific output. Charges to outputs are based on appropriate cost drivers such as actual usage, staff numbers and floor area.

Impact of changes to prior period opening balances

For the year ended 30 June 2009, the Council has clarified its accounting policy on cash and cash equivalents. As a result of this reclassification, term investments with a term of 93 days or less are now classified as cash equivalents. Previously term investments maturing within 93 days of balance date were considered cash equivalents.

The correction of this prior period approach has been applied retrospectively. The impact at the beginning of the comparative year (as at 1 July 2007) has been to reduce cash equivalents and increase other investments by $1,882,672. At the end of the comparative year (30 June 2008) cash equivalents were reduced and other investments increased by $2,031,956 after including the adjustment at the beginning of the comparative period.

Changes in accounting policies

There have been no changes in accounting policies. All policies used for the preparation of the financial statements have been applied on a basis consistent with previous years

New Zealand Teachers Council - Notes to the financial statements

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New Zealand Teachers Council - Notes to the financial statements

Intangibles are reviewed for impairment annually. There have been no indications of impairment in 2009 (2008: Nil). The intangible assets have a useful life of three years.

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

The carrying value of short-term deposits with maturity dates of 93 days or less approximates their fair value.

The weighted average effective interest rate for term deposits is 4.61% (2008: 8.64%).

The weighted average effective interest rate for term deposits is 4.61% (2008: 8.64%).

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.

There are a number of members whose daily fee is paid directly to their school or centre or organisation. These members of the Council are being paid by their institutions and appropriately do not accept a payment for services to the Council.

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.

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

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

The Directors total remuneration falls in the 160,000 – 169,999 band.

During the year ended 30 June 2009, three employees received compensation and other benefits in relation to cessation totalling $4,776 (2008, Nil).

Audit Report

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The Auditor—General is the auditor of the New Zealand Teachers Council (the Council). The Auditor—General has appointed me, Phil Kennerley, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance included in the annual report of the Council for the year ended 30 June 2009.

Unqualified Opinion

In our opinion:

• The financial statements of the New Zealand Teachers Council comprising the Statement of Comprehensive Income, Statement of Movements in Equity, Statement of Financial Position, Statement of Cash Flows, Statement of Contingent Liabilities, Statement of Commitments, Statement of Accounting Policies and Notes 1 to 16 to the Financial Statements.
• comply with generally accepted accounting practice in New Zealand; and
• fairly reflect:
• the Council’s financial position as at 30 June 2009; and
• the results of its operations and cash flows for the year ended on that date.

• The Statement of Service Performance
• 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 28 October 2009, 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 2009 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’s 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.

Phil Kennerley

Audit New Zealand

On behalf of the Auditor—General

Wellington, New Zealand

Directory

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New Zealand Teachers Council

Te Pouherenga Kaiako o Aotearoa

P O Box 5326

Level 7

93 The Terrace

Wellington

Telephone: (04) 471 0852

Facsimile: (04) 471 0870

Email: inquiries@teacherscouncil.govt.nz

Website: www.teacherscouncil.govt.nz

Legal Counsel

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Harbour Chambers

111 The Terrace

Wellington

Auditor

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Audit New Zealand

Level 8

St Paul’s Square

45 Pipitea Street

Wellington

Accountants

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Grant Thornton

Level 13

AXA Building

80 The Terrace

Wellington

Insurers

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Marsh Insurance Limited

P O Box 699

Wellington

Bankers

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Bank of New Zealand

North End Branch

100 Lambton Quay

Wellington

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