Statement of Intent 2009-2012

Foreword
Part One: Strategic Overview
   Purpose of the Council
   Functions of the Council
   Strategic Alignment
Part Two: Outcomes Framework 2009-2012
   Outcome 1
   Outcome 2
   Outcome 3
Part Three: Forecast Statement
   3.1 Forecast Statement of Service Performance
   Output 1 Teacher Registration
   Output 2 Maintenance of Professional Standards
   Output 3 Professional Leadership
   Output 4 Teacher Education
   3.2 Summary of Significant Accounting Policies, assumptions and any other relevant information underlying Prospective Financial Statements
   3.3 Prospective Financial Statements
Part Four: Internal Environment
   The Staff
   Equal Employment Opportunities
   Strategic Information Technology Development
   Financial Strategy
Part Five: Supporting Information
   The Organisation
   The Council
   Risk Management
   Appendix 1
   Appendix 2

Foreword

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Teachers play a key role in promoting learning for children and young people in early childhood settings and schools. Through setting and maintaining standards for entry to the profession, the Council can significantly influence the quality of the teaching profession.

There are a number of key steps in progressing to being a fully registered New Zealand teacher. Clearly, the first key step is enrolling and graduating from an approved initial teacher education (ITE) programme. For this reason, the Council is reviewing and revising its requirements for approving and monitoring of ITE programmes with an emphasis on the quality of graduates and their ability to meet the Graduating Teacher Standards. This revision will be completed by the first quarter of 2010.

Once teachers have successfully graduated from an approved ITE programme, they are entitled to a two-year induction programme. Building the provision of consistently high-quality induction programmes for provisionally-registered teachers and providing mentor teacher development and support, is the second key initiative the Council is undertaking to build the capacity and capability of New Zealand teachers.

Thirdly, the Council will pilot revised criteria for registering teachers as full members of the profession. The final version of these criteria (the Registered Teacher Criteria) will be gazetted in early 2010 to replace the current Satisfactory Teacher Dimensions. In supporting this work, the Council will review the policies relating to the registration of teachers.

Finally, the Council is planning to review its current governance arrangements and functions. The Council has existed in its current form for seven years and has just been through its third election process for board members. It is at a good stage in its development and growth as a professional body for such a review.

Kathy Smith, Chair Peter Lind, Director

30 May 2009

Part One: Strategic Overview

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Purpose of the Council

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The purpose of the New Zealand Teachers Council is to provide professional leadership in teaching, enhance the professional status of teachers in schools and early childhood education, and contribute to a safe and high-quality teaching and learning environment for children and other learners.

In fulfilling this purpose, the Council promotes the profession of teaching and encourages teachers to strive to attain the highest standards of professional service. Through this, the Council influences the quality of teaching, and consequently the educational outcomes for children and young people in New Zealand.

The Council is positioned so that it can work interdependently with the Government, the profession and agencies involved in the sector, in the best interests of the teaching profession and learners.

Functions of the Council

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The Council has both regulatory functions and professional leadership functions. The most significant of these are to: ¹

Strategic Alignment

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The Council in the education sector

Since the Council’s focus is to lead and support high standards for the teaching profession, its strategies and operations contribute particularly to these Government education priorities:

The following education initiatives help shape and inform the strategic goals and business plan of the Council:

The Council’s contribution to these initiatives is to emphasise the importance of effective teaching for all children and young people. Through its professional leadership projects and regulatory requirements, the Council will also seek to influence the capability of teachers to meet the challenges of changes to teaching and to learning contexts.

Strategic focus – entry points to the profession

The Council’s Strategic Plan has a focus on the entry points to the teaching profession. There are three key stages in a teacher’s pathway leading from student teacher status to full registration as a teacher (see Figure 1). Selection into an approved ITE programme is the first entry point. The second stage is reached when a student graduates from an approved ITE programme and is granted provisional registration. The provisionally-registered teacher is required to undertake a period of induction. The third stage is the endorsement of a provisionally-registered teacher’s movement to full registration.

These key entry points will continue to be the major focus for the Council over the next three years. In particular, interventions will include:

Figure 1 Strategic focus of the Council on entry points to the profession

Figure 2 Outcomes Framework 2009-2012

Part Two: Outcomes Framework 2009-2012

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The interventions the Council intends to invest in during 2009-2012 are shown in the outcomes framework shown in Figure 2 and described in detail below. This framework shows how the Council’s strategic focus and intended outcomes contribute to the goals for the education sector. The framework includes the priority outputs for 2009-2010 that will have an impact on the longer-term outcomes.

Outcome 1

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All graduates of ITE programmes are effectively prepared to begin to teach.

Why is this important?

The effectiveness of individual teachers is one of the most significant factors in learning outcomes for children and young people. It is therefore critical to be able to renew and strengthen the teaching profession to meet the needs of learners now and in the future.

Selection into an approved ITE programme is the first entry point to the profession. Graduates of these programmes need to demonstrate that they are able to meet the diverse learning needs of children and young people in changing social, cultural and economic contexts. It is from this pool of teachers that the profession will renew itself. Good-quality graduates, equipped and supported to become excellent teachers, will in turn raise the status of the profession and so attract good applicants for ITE programmes in the future.

What are we seeking to achieve?

The Council is seeking to achieve consistently well-prepared graduates from all ITE programmes. These newly-qualified teachers, with support from experienced colleagues, will be able to effectively teach the learners they have responsibility for in their initial employment in their specialist settings. Such graduates should be equipped to benefit from induction and mentoring programmes and move to full registration as fully competent teachers.

The Council is also seeking to ensure that there are sufficient graduates proficient in te reo Māori to meet the needs of learners in Māori medium settings.

What will we do towards achieving this outcome?

In 2007, the Council published its Graduating Teacher Standards (GTS). These were developed in consultation with the profession and replace the Satisfactory Teacher Dimensions as the standards for ITE graduates. The standards include requirements for graduates to promote learning for all children and young people.

Over the next three years, these standards will be embedded in our revised requirements for approval and monitoring of ITE programmes. In future, providers will need to show how their graduates will demonstrate competence against the standards.

The Council is also revising the processes by which it approves and monitors ITE programmes to ensure that these efficiently and effectively evaluate the quality of ITE programmes. These will be supported by professional development opportunities for programme development and documentation requirements for ITE providers.

Continuing the Whakamanahia te Reo Māori research programme will enable the Council to identify the reo proficiency requirements for graduates of Māori medium ITE programmes and this will inform the approval processes and on-going monitoring of these programmes.

The Council is committed to working alongside other agencies which also have committed resources towards this outcome, particularly the Ministry of Education and Te Puni Kōkiri. We are seeking, for example, to develop an inter-agency research strategy to support this work stream.

How will we demonstrate success?

The Council expects that its revised requirements for programme approvals for ITE will result in greater assurance that graduates from those programmes are effectively prepared to begin to teach. Furthermore, requirements are likely to include that providers seek evidence from graduates and their employers that they are considered to be effectively prepared for teaching.

In the short term, the Council will measure the level of agreement and compliance with the revised requirements and gather evidence of the perceptions about whether graduates are well prepared to teach. Measures will include:

Over time, the Council may also seek independent evidence that the revised requirements are impacting on programmes and graduates through such sources as:

Outcome 2

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All provisionally-registered teachers are supported with effective induction and mentoring programmes as they move towards full registration.

Why is this important?

No matter how well prepared graduates are from ITE programmes, it is not until they have full responsibility for a group or groups of learners that they have the opportunity to embed theoretical learning into quality professional practice over a sustained period of time. Research studies have demonstrated that high-quality induction and mentoring support in the first few years of teaching is critical to the ability of newly-qualified teachers to achieve their full professional potential and for their retention in the profession. This will impact on good learning outcomes for children and young people in New Zealand.

In New Zealand, structured support for provisionally-registered teachers (PRTs) has been resourced by Government for many years. Although many instances of good practice exist, research, including the Council’s Learning to Teach investigation, has shown system-wide deficiencies in this support. In particular, the lack of adequate training and support provided for the critically important role of mentor teacher has been highlighted.

What are we seeking to achieve?

The goal is to achieve consistently high-quality induction and mentoring of all provisionally-registered teachers in New Zealand to maximise their potential as teachers, and to retain a higher percentage of them in the profession for longer periods of time.

What will we do towards achieving this outcome?

The Council will continue to trial guidelines for induction programmes and mentor training via a range of different pilot programmes in early childhood education settings and schools, including Māori medium. These pilots are being evaluated to provide findings and recommendations from each individual pilot and across the whole programme.

From the research and evaluation data, the Council will identify and develop appropriate policy and models of support for mentor teacher development and support, and disseminate best induction methods and practices for mentoring.

The Council will work with Government and other key stakeholders to build an appropriate policy environment for the provision of consistently high-quality induction programmes.

Communications with PRTs, and those who support them will also be improved, particularly through enhancements to the Council’s website.

How will we demonstrate success?

Measures will focus on the impact of the Council’s pilot programmes and subsequent policy support for induction and mentoring of PRTs and will include:

Data for these measures will be collected through surveys and other feedback from the profession.

Progressively, the Council will measure progress towards achieving the intended outcome that all PRTs are supported with effective induction and mentoring programmes through such indicators as data on retention of teachers, quality teaching and expressed confidence of PRTs in their induction programmes and teaching experiences.

The Council will gather data by:

Outcome 3

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All children and young people are effectively taught by teachers who meet and maintain the standards and professional commitments set for the profession.

Why is this important?

Teacher registration plays a significant part in assuring learners, parents, employers and the public that teachers are equipped to be effective in their role. It is unlawful to teach or employ a teacher in schools if that person is not registered with a current practising certificate, or otherwise authorised. By 2012 all regulated staff in teacher-led ECE services are to be fully or provisionally registered teachers.

At the heart of the registration processes are the criteria describing effective teaching, which a teacher must demonstrate in order to gain full registration (the third and final entry point to the profession) and to renew a practising certificate as an experienced teacher.

The criteria not only describe the competencies of teaching, but act as a beacon for what the profession stands for and as a guide for the learning and assessment of both provisionally-registered and experienced teachers. For parents, employers and the public, the criteria should provide assurance that teachers who meet them are both competent and effective. There need to be effective processes for dealing with teachers who do not meet these criteria.

What are we seeking to achieve?

To strengthen the assurances provided by registration of teachers, the Council is seeking

The draft Registered Teacher Criteria (RTC) are designed to validly represent the professional knowledge, skills, relationships and values that will meet the needs of all learners and that are valued by the profession. They will set out what is needed to demonstrate “satisfactory recent teaching experience” as required in the Education Act. The Council also intends that the criteria will serve as a basis to extend teachers’ professional capability to be highly effective for all learners.

The RTC will apply to all teachers moving from provisional to full registration and to experienced teachers renewing a practising certificate.

In New Zealand’s self-managing system, teachers and professional leaders need to be clear about and have a common understanding of what the standards are for recommending teachers for gaining or maintaining full registration.

What will we do towards achieving this outcome?

Rigorous and efficient registration processes

To ensure that all teachers are registered and meet the requirements of registration, including the good character and fit to be a teacher requirements, the Council will maintain efficient and rigorous processing of registration applications.

Revised teaching standards for registration

The draft Registered Teacher Criteria, have been developed in consultation with the profession to replace the current Satisfactory Teacher Dimensions. Findings from the pilot will inform finalisation of the draft document so that it can be gazetted for introduction from 2010 onwards. A communications plan will be developed to ensure that teachers know about, understand how to use and value the RTC as they are progressively implemented.

Part of the 2009 pilot for the RTC is seeking to develop guidelines to help professional leaders make good decisions when assessing teachers against the RTC. These will be communicated as part of the implementation of the RTC and

eventually incorporated into the overarching registration policy.

Policy to clarify registration requirements

An overarching registration policy is under development to clarify for the profession the purposes of and requirements for teacher registration in New Zealand. The Council will clarify criteria to define a teaching position and identify appropriate categories of registration for teachers in different roles and circumstances. This policy will also set out requirements for gathering and assessing evidence that teachers meet registration standards and subsequently for making recommendations to the Council. The Council will continue to consult with the profession to ensure that these requirements are robust, fair and valid.

Effective processes for dealing with competence and conduct

The Council will continue to strengthen its processes to effectively consider the competence or conduct of teachers referred to the Council. In particular, a new process for dealing with issues that may impair the ability of teachers to perform their professional roles competently will be put in place. The Council’s responsibility to maintain professional standards through its competence and discipline functions is extremely important in assuring parents of the safety of learners and that all teachers are competent to practice.

How will we demonstrate success?

Of the four key outputs described above, two provide assurance that the profession’s standards are upheld and two are developments to improve standards and keep abreast of the changing world of teaching and learning. Measures for the short to medium term impact of these interventions will include:

The extent to which improvements in the effectiveness of the teaching workforce are attributable to Council interventions cannot be directly measured, but we will monitor system-wide indicators of learner achievement and confidence in the profession, including such measures as:

Part Three: Forecast Statement

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3.1 Forecast Statement of Service Performance

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Summary of outputs to be produced by the New Zealand Teachers Council

2009-2010 Outputs

The Council provides the following outputs:

Quarterly reports will be provided to the Minister of Education that contain:

More detailed reporting (financial reporting and performance reporting against our output measures) will be provided separately to the Ministry of Education.

Reports will be provided to the Minister on:

Output 1 Teacher Registration

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Efficient processing of registration applications is maintained to achieve the outcome that all children and young people are effectively taught by registered teachers who meet and maintain the standards and professional commitments set for the profession.

Objectives

The objectives are:

Key Performance Indicators

Quantity

*Applications are declined when they do not meet the Council policy requirements. This could be in the areas of qualifications, sufficient recent teaching 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 requests generated.

Timeliness

Quality

Output 2 Maintenance of Professional Standards

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Effective processes for considering competence and conduct of teachers are maintained to achieve the outcome that all children and young people are effectively taught by registered teachers who meet and maintain the standards and professional commitments set for the profession.

Objectives

The objectives of this output are to:

Key Performance Indicators

Quality

Quantity and Timeliness ²

Output 3 Professional Leadership

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Effective policy advice and research will be maintained to achieve the outcomes that all provisionally registered teachers are supported with effective induction and mentoring programmes as they move towards full registration and that all children and young people are effectively taught by teachers who meet and maintain the standards and professional commitments set for the profession.

Objectives of Output

Priorities in 2009-2010 for this output are to:

Ongoing objectives for this output are to:

Key Performance Indicators

Quality

Quantity and Timeliness

Output 3.1: Consult with the profession to develop an overarching registration policy

Output 3.2: Finalise and phase in implementation of revised Registered Teacher Criteria (RTC)

Output 3.3: Monitor and evaluate programmes to pilot induction for provisionally-registered teachers and training and support for their mentor teachers

Output 3.4: Further investigate the nature of reo proficiency required for graduates of Māori medium ITE programmes

Output 3.5: Review of the Governance arrangements and functions of the Council

Output 4 Teacher Education

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Effective processes for the evaluation, approval and monitoring of ITE programmes will be maintained to achieve the outcome that all graduates of ITE programmes are effectively prepared to begin to teach. In consultation with the education sector, a new approval and monitoring system, with clear requirements for ITE programmes will be developed in 2009.

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

Objectives of Output

The objectives of this output are to:

Key Performance Indicators

Quality

Quantity and Timeliness

Output 4.1 Approval of new initial teacher education programmes*

Quantity and timeliness*

Output 4.2 Re-approval of existing initial teacher education programmes*

*The Council has no control over the timeliness of approval and reapproval of programmes where panels are conducted jointly with another quality assurance body; NZQA or ITPQ.

Quantity and Timeliness

Output 4.3 Development of new approval and monitoring system for ITE programmes

3.2 Summary of Significant Accounting Policies, assumptions and any other relevant information underlying Prospective Financial Statements

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Reporting Entity

The Council is an Autonomous Crown Entity established under the Education Standards Act 2001. It is involved in ensuring that New Zealand schools and early childhood centres are staffed by teachers meeting approved standards of suitability, fitness and qualification.

The Council is domiciled in New Zealand.

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

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

The prospective financial statements of the Council are for the year ended 30 June 2010, and were approved by the Council on 20 May 2009.

These prospective financial statements are prepared in accordance with section 41 of the Public Finance Act 1989, the Seventh Schedule of the Education Act 1989, the Crown Entities Act 2004 and FRS 42: Prospective Financial Statements. They outline the Council activities and planned performance, and the information contained in these prospective financial statements may not be appropriate for use for any other purpose.

Statement of Responsibility

We accept responsibility for the preparation of the statements of account and the judgements used therein. The financial statements have been prepared on the basis of generally accepted accounting practice and in accordance with section 41 of the Public Finance Act 1989, the Seventh Schedule of the Education Act 1989, the Crown Entities Act 2004 and FRS 42: Prospective Financial Statements.

We acknowledge the establishment and maintenance of internal control procedures and those internal control procedures are considered to be sufficient to provide a reasonable assurance as to the integrity and reliability of financial and non-financial reporting.

Kathy Smith Barbara Arnott

Chair Chair Audit and Risk Management Committee

30 May 2009

Adoption of New Zealand equivalents to International Financial Reporting Standards

The prospective financial statements for the year ended 30 June 2010 have been prepared in accordance with NZ IFRS. The comparative figures (years ended 30 June 2008 and 2009) have been reported under NZ IFRS.

The primary objective of the Council is to provide professional leadership in teaching, enhance the professional status of teachers and contribute to a safe and high-quality teaching and learning environment. It has therefore elected to report as a public benefit entity for the purposes of NZ IFRS.

Measurement System

The Council’s Financial Statements comply with generally accepted accounting practice and NZ IFRS.

The measurement base adopted is that of historical cost.

3.3 Prospective Financial Statements

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The Prospective Financial Statements are prepared in accordance with NZ IFRS on the basis of assumptions as to future events that the Council reasonably expects to occur, associated with the actions that the Council reasonably expects to take, as at the date that this information was prepared.

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 NZ IFRS, 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.

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.

The actual financial results achieved for the period covered are likely to vary from the information presented in the Prospective Financial Statements and these variations may be material.

Measurement base

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

Functional and presentation currency

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

Revenue

The 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.

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

Interest income is recognised using the effective interest method.

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

Goods and services tax

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

The net amount of GST paid to, or received from, 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 in terms of the Income Tax Act 2004 and consequently is exempt from income tax.

Accounts receivable

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

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

Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise deposits with banks, and bank and cash balances, net of bank overdrafts. Deposits are included when they have a maturity of no more than three months from the date of acquisition.

Term deposits

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

Investments 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 on 1 February 2002 were transferred at their net book values. The vested assets will continue to be depreciated over their remaining useful lives.

Additions

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

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

Disposals

Where an item of plant and equipment is disposed of, the gain or loss recognised in the statement of financial performance is calculated as the difference between the net 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:

The residual value of assets is reassessed annually.

Intangible Assets

Software acquisition and development

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.

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:

The intangible assets above are deemed to have finite lives.

Impairment of non-financial assets

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

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

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

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

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

The Council does not own land and buildings and consequently does not do asset revaluations.

Creditors and other payables

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

Employee entitlements

The Council has short-term employee entitlements which are expected to be settled within 12 months of balance date. These entitlements are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.

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

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

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

Superannuation schemes

Obligations for contributions to KiwiSaver and Government Superannuation Fund are accounted for as defined contribution superannuation schemes and are recognised as an expense in the statement of performance as incurred.

Operating leases

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

Financial instruments

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

recognised and stated at fair value.

Cash Flow Statement

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

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

(a) Operating activities include all transactions and other events that are not investing or financing activities.

(b) Investing activities are those activities relating to the acquisition, holding and disposal of Property, Plant and Equipment and of investments. Investments can include securities not falling within the definition of cash.

(c) Financing activities are those activities that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash.

(d) For the purposes of the Cash Flow Statement, cash and cash equivalents comprise deposits with banks and bank and cash balances, net of bank overdrafts. Deposits are included when they have a maturity of no more than three months from date of acquisition.

Cost allocation

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

Direct costs are charged directly to the outputs. Indirect costs are charged to outputs based on appropriate cost drivers such as actual usage, staff numbers and

floor area.

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.

Significant assumptions

The Council maintains the assumption from projected data that 29,880 applications for registration will be received over the following year. This assumption averages at 75% of the Council’s income for the same period.

The Council bases the estimates of expenditure on Disciplinary Tribunal Hearings and the assessment of complaints through the Complaints Assessment Committee on historical data, as the functions did not become fully active until late 2005.

The Council has elected to have as contingent expenses some items that have previously been included in past budgets. These contingent items are $50,000 for a Council by-election and $10,000 for potential costs being awarded against the Council from the Disciplinary Tribunal or the Courts. The risk to the Council is seen as medium/low for these items based on historical precedence.

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

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

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

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

Part Four: Internal Environment

The Staff

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The Council focuses on achieving an internal environment that gives staff the support and encouragement to enable them to achieve the Council’s goals in an efficient and effective manner.

This requires that the Council has the staffing capacity and capability to achieve these goals.

Staffing Structure

The Council’s staffing structure for 2009 -2010 will include:

Registration activity has increased with the Council assuming a greater role in the processing of overseas applicants. The Council has developed specialisation within its staffing to deal with this.

The Council has also formed an additional Complaints Assessment Committee (CAC) and an Impairment Committee will be fully operational in 2009 -2010.

The Council currently has the capacity to fulfil its statutory role and functions. However, over the next three years the Council will undertake a significant review of programmes and activities to support the ongoing high standards of the profession. This will require additional expertise in the areas of programme and project management and analysis as well as liaison with the sector, communicating the Council's research and embedding practical guidance as a result of this work.

Good Employer Requirements

The Council is committed to being a good employer and currently has formal policies and practices that inform each of the elements that comprise a sound employment programme.

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

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

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

Equal Employment Opportunities

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Equality and diversity

In line with the New Zealand Public Service Equal Employment Opportunities Policy, the Council will:

The Council recognises that integrating equality and diversity is a key ingredient for organisational success. It helps to improve services to the Government and people of New Zealand, and to attract and retain talented staff. Therefore the Council is committed to integrating this focus on equality and diversity into all aspects of its business and will reflect this in its ongoing work.

Organisational Health and Capability

To fulfil its legislated functions, the Council requires skilled managers with sound education sector experience and knowledge, and support staff, working to a common end, supported by a sound infrastructure. The Council has put initiatives in place so that it can maintain its capability levels and respond to the demand for current services.

Through these initiatives, the Council will integrate the Development Goals for the State Services into its ongoing work, and contribute to the Government’s goal of “a system of world class professional state services serving the government of the day and meeting the needs of New Zealanders”.

On going initiatives for the Council are to:

Strategic Information Technology Development

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The Council has increased its business efficiency and reporting capacity by stabilising and enhancing its ICT infrastructure significantly.   It will extend the system for sector-wide interactions, such as data sharing, e-transactions and enhanced web services for teaching communities.

In addition, the Council will be undertaking further enhancements to its teacher registration system (TCR).

Document Management Project

The Council holds large repositories of paper records, information and electronic data that require streamlining in terms of their storage, retrieval and security.  The Council has completed a formal Retention and Disposal Schedule and has lodged this with Archives New Zealand.

The next stage in this work is an internal reorganisation of the Council’s documentation practices and the installation of an electronic document and records

management system.

On-line Registration

Once the further enhancements of the Council Register (TCR) system have been made, the Council will begin to make the technical and legislative changes required to provide fully on-line registration. The Council is working closely with other agencies on issues related to on line authentication and authorisation.

Financial Strategy

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The Council is in a sound financial position.  Financial reporting to the Council is supported by monthly internal and variance reports.  Re-forecasting has been introduced each quarter to determine the progress of organisational and project expenditure and to refocus against annual approved budget outputs.

The Council will utilise present reserves to deliver the key strategic projects over the next two years. The bulk of expenditure for the special projects will be completed in the 2009-2010 financial year with a further $450,000 being required for the 2010-2011 financial year.  From that point, the Council will be limiting its strategic project funding to approximately $200,000 per annum and will maintain a working capital ratio of no less than 1.25 over the next three years.

The Council is vigilant in its financial planning, taking into account its three-year practising certificate income cycle.  It continues to check the methodology applied to income recognition and the application of fee income to outputs and, in 2009-2010, the Council will again review the costs of processing registration applications.  The Council is inherently cash rich, mainly due to the timing of the fee income and the ability of the Council to deliver its core business.  It is largely reliant on fee income to conduct its core legislative activities and policy projects.

Taking into account its tight financial management in previous years the Council has completed a line by line review of expenditure and has made adjustment where possible.  For example, the Council has reviewed its meeting and travel arrangements to ensure value for money.   The Council will continue to maintain a focus on controlling operational costs, while delivering a high-quality service to the teaching profession.

In considering possible increases in existing sources of revenue (including retrieving fees from teachers who are unlawfully employed, programme approval costs and generating income from new sources), the Council is mindful of the balance between delivery of projects to the education sector and ensuring prudent expenditure of fees received. It is currently reviewing its fee structure as part of its overall revenue strategy, and has determined that its public equity will be at least $500,000.  It should be noted that the Council has not increased its fees since 2003 that since then operating expenses have grown significantly as the Council has increasingly grown its capacity to implement its legislated functions.  To date, the Council has absorbed the growing costs without passing these on to teachers. The Council intends to report to the Minister of Education on its future financial strategy in early 2009-2010.

Part Five: Supporting Information

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The Organisation

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The Council is located at 93 The Terrace, Wellington, on Levels 6, 7, 8 and 9 of The Genesis Building and has a staff of 43 (equivalent to 41.9 FTEs), including the Director.

The Council is responsible for policy, standards setting, and regulatory and core service delivery functions relating to registration, maintenance of professional standards, professional leadership, approval of teacher education programmes and police vetting (teacher and non teacher).

The following teams are responsible through the Director to a Council of 11 members.

Reporting

All managers report to the Director. Monthly Council meetings provide governance and strategic direction, and make certain key operational decisions, for example, those relating to registration, maintenance of professional standards and teacher education programmes.

The Council carries out its governance responsibilities through:

The Council

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Risk Management

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The Council has established effective and efficiency core operational (e.g. registration processes) financial, corporate support and governance environments and structures. The Council uses AS/NZS 4360:2008 as the basis of its Risk Management Framework.

Risk Management and Mitigation Strategies

The Council has an Audit and Risk Management Committee which meets at least quarterly. The committee reviews and provides advice to the Council on:

The following schedule details the key risks that the Council must manage and indicates the associated mitigation strategy.

Capability and capacity

Risk

That the Council is unable to meet the service performance standards agreed with the Minister and described in this Statement of Intent. This risk might arise if key staff members are not retained or if extra required staffing of a sufficient calibre cannot be recruited. The risk might also arise if resources needed to be diverted from planned projects.

Mitigation

The Council is satisfied that the current and intended structure and staffing is appropriate for the forecast volume of activity. Standard project management processes are used to ensure projects are managed effectively. A coaching approach to staff management is building internal capacity and capability.

Likelihood of the risk

Medium.

Funding adequacy

Risk

That the Council may not generate sufficient revenue to complete the programme of activity described in the Statement of Intent.

Mitigation

The Council notes that the last substantive review of registration fees was implemented in 2003. A review has been undertaken and an adjustment will be required by 1 July 2010 in order to maintain the current level of service.

Likelihood of the risk

Medium.

Communication and relationships with teachers and education agencies

Risk

That the Council loses the goodwill and support of the sector to the detriment of achieving its statutory obligations. It may fail to gain support for initiatives that need buy in from teacher or education sector agencies and teacher unions.

Mitigation

The Council’s Communication Strategy is designed to secure and maintain support from the profession for activities that enhance the status of teachers and teaching. Communication plans for each project and the involvement of stakeholders in reference groups and working groups help ensure the Council works in cooperation with the profession and gains support for its initiatives.

The Council maintains a programme of regular contact and communication with key stakeholder groups and will continue to create and accept as many opportunities as possible to meet and discuss matters of mutual interest with teachers and related parties. Feedback will provide valuable information to inform practices and strategic direction.

The Council publishes a quarterly newsletter, ^forTeachers Mō Ngā Kaiwhakaako, and communicates regularly with teachers and professional leaders though meetings, e-blasts from the Director and the Council’s website content.

The Council works hard to ensure efficient processing of registration applications and a very professional service with phone, email and other written contact. For all teachers, the time of getting a new practising certificate is their most sustained personalised contact with the Council and it needs to be positive and constructive.

By ensuring staff have the expertise and knowledge to maintain appropriate external and interagency links that give confidence to teachers and those in the profession, it is able to be proactive on issues.

Likelihood of the risk

Medium.

Information and Communication Technology systems upgrade

Risk

That the Council’s Information and Communication Technology (ICT) infrastructure is inadequate to meet the projected level of demand.

Mitigation

Monitoring, maintenance and enhancement of the stable infrastructure are now well established at the Council. The Council uses systems reporting tools to ensure ICT media are working and there is a high standard of procedure for business continuity/disaster recovery.

Likelihood of the risk

Low.

By Election

Risk

That the Council is required to hold a by-election for one or more elected member(s) to the Council.

Mitigation

The Council will contract the management of the election process to an appropriately qualified service provider in sufficient time to ensure the associated risks are identified and addressed, and will inform the sector through regular communication using multiple media.

Likelihood of the risk

Low.

Unexpected increase in complaints about competency and fitness to teach

Risk

That the Council has underestimated the level of complaints it will receive.

Mitigation

The Council has provided a specific contingency provision that has been calculated to be sufficient to accommodate a percentage increase in complaints above those estimated in the assumptions.

Likelihood of the risk

Low.

Teachers remain outside the registration system

Risk

That teachers remain outside the registration system and yet are actively teaching in schools without holding the required registration and a current practising certificate.

Mitigation

The Council will be actively sharing data from the Ministry of Education’s payroll to ensure those teachers who are employed in a teaching position are also registered and hold a current practising certificate. Legislative change allows a sound legal basis for the Council to safely and accurately identify and communicate with those schools, centres and individual teachers concerning the need to ensure regulatory compliance.

Likelihood of the risk

High.

Disaster Response

Risk

Natural disaster and/or systems failure.

Mitigation

The Council has been communicating with staff through regular documentation, bulletins and advice through a range of internal and external media in preparation for a possible disaster. The Council has a comprehensive disaster recovery/business continuity plan, extended to include the scenario of a pandemic and/or epidemic. The Council is aware that it has legislative and regulatory requirements to maintain its business and service.

Likelihood of the risk

Low.

Appendix 1

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Legislative Framework and Governance

The Council is an autonomous Crown Entity established in 2002 under the provisions of the Education Standards Act 2001 and Education Act 1989, plus amendments.

The Council is governed by a Council of eleven members, consisting of four members appointed by the Minister, including the Council Chair; three nominated respectively by NZEI, NZPPTA, NZSTA; three elected by registered teachers from each of the early childhood, primary and secondary sectors and one representative elected by school principals.

The Council takes cognisance of the State Services guidelines on Board Appointments and Induction, and maintains guiding documentation for its members in the form of a comprehensive governance manual, as well as requiring the accurate and timely maintenance of an Interests Register.

Two committees and two advisory bodies support the governance work of the Council:

Besides the governance role, the Council has processes by which it considers issues of teacher competence and conduct.

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.  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 Council (Impairment Process) Rules came into force. Under these rules the Council, the Complaints Assessment Committee or the Disciplinary Tribunal can refer a teacher to an impairment committee.  The Impairment Committee will be comprised of a health practitioner, a registered teacher and a member of the Council.

Appendix 2

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Functions of the Council

The functions and powers given to the Council, under Part 10 of the Education Act 1989, form the basis of its key strategic initiatives. These are:

1 See Appendix 2 for the full list of statutory functions.

2 Variables that impact on quantity and timeliness could include the willingness of parties to engage in the process, the extent of investigation required, (dependent on the complexity of the case, and the ‘seriousness’ of allegations made in the complaint or mandatory report), response times to requests for information, and external processes such as police investigations and court hearings.

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