Certain Private Training Establishments and Industry Training Organisations and Exemption
for Other Organisations)
Under sections 159X (1) and 159Y (3) (b) of the Education Act 1989, and section 7 of the Education (Tertiary Reform) Amendment Act 2002, the Tertiary Education Commission (TEC) gives the following notice.
N o t i c e
1. Title and commencement-(1) This notice may be cited as the Education (Interim Profiles for Tertiary Education Organisations) Notice 2003.
(2) This notice applies from the date of its publication.
2. Introduction-As this is the first notice of the requirements for profiles as described in section 159W of the Education Act 1989 (as inserted by section 9 of the Education (Tertiary Reform) Amendment Act 2002), TEC believes that it is important to advise stakeholders in the tertiary sector of the context within which profiles fit.
The Government has set a new strategic direction for the tertiary education system to ensure that it is more strategically aligned to the needs of New Zealand and has a greater focus on excellence. This new direction is outlined in the Tertiary Education Strategy 2002-07 (TES).
Derived from this strategy is the Statement of Tertiary Education Priorities (STEP). The role of the STEP is to outline the short-to-medium term priorities that the Government expects government agencies and publicly funded tertiary education organisations (public and private tertiary education providers, industry training organisations, government training organisations and other providers - TEOs) to focus on in order to achieve the goals articulated in the strategy.
Activities to be publicly funded have to be aligned with the TES and the STEP. Charters and profiles are the means by which TEOs demonstrate their alignment and the assessment of strategic relevance criteria within charters and profiles are the means by which alignment is assessed.
The charter is a governance document that provides a broad description of a TEO's mission and distinctive role within the tertiary system. The profile outlines how a TEO will give effect to its charter and what its contribution in terms of the TES and STEP will be. Specifically, profiles serve the following purposes. They:
? demonstrate how an organisation will give effect to its charter;
? provide the basis for monitoring organisational performance, accountability for the use of public funds, and meeting other statutory requirements;
? contribute to a system-wide map of tertiary provision which can inform TEC in its role of giving effect to the TES;
? encourage relevance of educational provision to stakeholders' needs;
? encourage greater co-operation and collaboration; and
? provide information on existing and planned programmes and activities as a basis for allocating public funding.
Requirements and Criteria for Interim Profiles for Tertiary Education Institutions, Certain Private Training Establishments and Industry Training Organisations for 2003
Universities, Colleges of Education, Polytechnics and Wananga
Universities, colleges of education, polytechnics and wananga are required to have a profile approved by TEC by 1 January 2004 in the form and addressing the criteria given in appendix 1. This profile will be referred to as an "interim profile".
The content and criteria may also be found on TEC's web site at www.tec.govt.nz
Certain Private Training Establishments
The following private training establishments are required to have a profile approved by TEC by 1 January 2004:
? Academy Group (New Zealand) Limited;
? Academy of Diving Trust;
? Adventure Education Limited;
? Agriculture New Zealand;
? Avonmore Tertiary Academy;
? Best Training Auckland;
? Bible College of New Zealand;
? Carich Training Centre Limited;
? Community Colleges New Zealand Limited;
? G & H Trade Training Limited;
? The National College of Design and Technology;
? Regent Training Centre Limited;
? Salvation Army Employment Programmes;
? Spherion Education Pty Limited; and
? National Council of YMCAs of New Zealand Incorporated.
This profile will be referred to as an "interim profile" and should be in the form and addressing the criteria outlined in appendix 2. The content and criteria may also be found on TEC's web site at www.tec.govt.nz
Industry Training Organisations
Industry Training Organisations (ITOs) are also required to have a profile approved by TEC by 1 January 2004. This profile will be referred to as an "interim profile". The content and criteria for interim profiles for ITOs are set out in the document entitled Interim Profile and ITF Application Fund Guidelines which was sent to all ITOs on 9 June. This document may also be found on TEC's web site at www.tec.govt.nz
Deadline for Submission of Interim Profiles
The deadline for submission of interim profiles to TEC is 30 September 2003. Profiles and any supporting documents should be sent in electronic form to profiles@tec.govt.nz
Exemption for Other Organisations
All other private training establishments, government training organisations and any other tertiary education provider funded through Vote: Education are exempted from the requirement to prepare and submit to TEC a profile for approval by 1 January 2004.
Dated at Wellington this 17th day of July 2003.
KAYE TURNER, Deputy Chair, Tertiary Education Commission.
_________
Appendix 1
Interim Profile Content and Criteria for Tertiary Education Institutions
Content Assessment criteria
Part A - Strategic direction and key challenges
? The TEI must briefly outline its strategic direction for the next three years (2004-2006).
? The TEI must provide a brief outline of the key challenges it is likely to face over the next three years (2004-2006) and the strategies it will adopt to respond to those challenges.
? The strategic direction is consistent with the TEI's Charter, the Tertiary Education Strategy (TES) and the Statement of Tertiary Education Priorities (STEP).
? The TEI's strategies appear reasonable in terms of responding to its key challenges.
Part B - Objectives, plans and performance targets
Objectives must be specified that outline how the TEI will contribute to the TES, the STEP and give effect to its charter.
? The TEI must specify a list of objectives that adequately cover the activities of the TEI over the next three years (2004-2006) including its:
? education to be offered to learners;
? research (for universities and others who offer degrees);
? equal education opportunities;
? equal employment opportunities; and
? national and international relationships and alliances.
? The objectives must be suitable for the implementation of the TEI's charter and should clearly relate to its mission and goals.
? The TEI's objectives should demonstrate how it will contribute to the TES and the STEP over the next three years (2004-2006).
? The TEI's objectives will give effect over the next three years (2004-2006) to the:
? TEI's charter;
? goals, change messages, strategies and objectives in the TES that the TEI plans to contribute to; and
? TES's objectives prioritised in the STEP that the TEI plans to contribute to.
? To fulfil the above criteria, the Tertiary Education Commission will be looking for the TEI to demonstrate how it is planning to contribute to the TES and STEP across the dimensions of:
? excellence, in terms of raising the quality of its teaching, learning and research;
? relevance, in terms of achieving a better match between its programmes of learning and:
ª local and regional skill and economic needs;
ª where appropriate, national skill and economic needs;
ª the needs of New Zealand communities;
ª responding to the developmental aspirations of Maori communities; and
ª responding to the developmental aspirations of
New Zealand's Pacific peoples' communities.
? access, in terms of ensuring equity of access and opportunity for all learners, including:
ª providing learning environments and delivery methods that meet the needs of learners that the institution seeks to serve; and
ª raising levels of participation, retention and achievement of:
? Maori especially at degree and post graduate level;
? Pacific learners;
? women in non-traditional areas such as science and technology areas;
? learners with disabilities; and
? people from low income situations.
? capability, in terms of:
ª improving its strategic capacity and leadership at governance and management levels; and
ª ensuring that it has the capability or development plans in place to give effect to its charter and profile.
Treaty of Waitangi
? The TEI must have specific objectives relating to its charter goals on the Treaty of Waitangi.
? The TEI demonstrates that it has plans in place that will give effect to its approach to the Treaty of Waitangi as outlined in its charter.
? The TEI has performance indicators and targets to enable measurement of its progress in achieving its Treaty of Waitangi goals.
Funding sought or received from the Tertiary Education Commission
? The TEI must identify all activities for which it seeks or receives funding from the Tertiary Education Commission. This should be submitted through its single data return (SDR) forecasts and in any agreements, or applications, for targeted funds for 2004 e.g. Training Opportunities, Youth Training, and the Innovation Development Fund.

? The TEI has submitted the information required, via the SDR, and any agreements or applications for targeted funding.
Managing growth
? The TEI should outline how it intends to meet the government's annual growth limit. This limit is a 15% annual increase in domestic EFTS numbers (with the initial entitlement being calculated from 2002 actual funded domestic EFTS enrolments) or a 1000 annual EFTS increase, whichever is the greater.
Subcontracting teaching activity to other tertiary providers
? The TEI must provide a list of its existing and future intended subcontracting arrangements with other TEOs where it is, or will be, the principal contractor (this applies to teaching and learning activity only).
? The TEI must attach a written declaration signed by the Chair of Council affirming that the:
? institution's subcontracting arrangements for its teaching activity comply with TEC's requirements specified for the interim profile and the existing requirements given in A Guide to Tertiary Education Funding;
? institution has appropriate processes in place to maintain quality learning outcomes (the minimum standard for these processes is defined below);
? institution has appropriate financial processes in place to provide a transparent audit trail for each contractual arrangement; and
? institution is prepared for a comprehensive audit of any of its subcontracting arrangements within
10 working days notice from TEC.
? The TEI has outlined how it intends to meet the government's annual growth limit.
Subcontracting teaching activity to other tertiary providers
? The TEI has provided a list of its existing and future intended subcontracting arrangements with other TEOs where it is, or will be, the principal contractor.
? The written declaration signed by the TEI's Chair of Council is attached.
Performance indicators and targets
? Where possible, objectives should have associated performance indicators that cover the qualitative dimensions of performance and others that cover the quantitative dimensions. Likewise, there should be indicators that are of a financial nature and some of a non-financial nature.
? All performance indicators should have associated performance targets that relate to the year for which the profile applies (2004) plus, where possible, the following two outyears (2005 and 2006). In order to enable those targets to be readily understood, the past year's actual performance (2002) and the current year's expected performance (2003) must also be stated.
? The performance indicators for the objectives might include indicators for:
? EFTS - at the minimum disaggregated learner numbers by undergraduate/post graduate/ and those areas by domestic and international learners;
? the quality of the TEI's education;
? outcomes for learners;
? outcomes for staff;
? national and international relationships and alliances;
? internal processes that provide critical support for the TEI's capability, especially where implementation of a new system or standard needs to be monitored;
? the costs of producing specific services, particularly where these are central to the achievement of the business plan;
? internal organisation and management priorities and the outcomes sought;
? the achievement of particular initiatives as part of the strategic plan; and
? other non-financial indicators of core TEI direction and capability.
Financial performance indicators
? The financial performance indicators included should project for three out-years and should cover:
? operating surplus (both in total and as a percentage of total income);
? return on income;
? return on assets;
? net operating cash flows;
? liquid assets (as a percentage of cash out);
? working capital; and
? debt ratio.
? Supporting documentation (provided on a commercial-in-confidence basis) for financial performance must include:
? three-year forecasts of financial performance, cash flows and financial position; and
? capital development plans.
? Performance indicators must be specific, measurable, auditable, realistic, time-bound.
? The performance indicators will enable a sound assessment of overall performance of the TEI.
? The performance targets are readily understood.
? The performance targets give the 2002 year's actual performance and the 2003 year's expected performance and where possible forecast performance for 2004 and 2005, and 2006.
Part C - Consultation
The profile must include a report describing the consultations with the institution's staff and learners, and those with the communities the institution serves that it undertook before it submitted the profile.
The profile includes a report describing the consultations
with the institution's staff and learners, and those with the communities the institution serves that it undertook before it submitted the profile.
Appendix 2
Interim Profile Content and Criteria for the 15 Private Training Establishments
Content Assessment criteria
Part A - Strategic direction and highlights of key changes in activities
? The PTE must briefly outline its strategic direction for the next three years (2004-2006).
? The PTE must provide a brief outline of the key challenges it is likely to face over the next three years (2004-2006) and the strategies it will adopt to respond to those challenges.

? The strategic direction is consistent with the PTE's charter, the Tertiary Education Strategy (TES) and the Statement of Tertiary Education Priorities (STEP).
? The PTE's strategies appear reasonable in terms of responding to its key challenges.
Part B - Objectives, plans and performance targets
Objectives must be specified that outline how the PTE will contribute to the TES, the STEP and give effect to its charter.
? The PTE must specify a list of objectives that adequately cover the activities of the PTE over the next three years (2004-2006) for which it seeks funding from the TEC, including its:
? education to be offered to learners (e.g. EFTS, industry training, training opportunities, youth training and skill enhancement);
? research (for those who offer degrees);
? equal education opportunities;
? equal employment opportunities; and
? national and international relationships and alliances.
? The objectives must be suitable for the implementation of the PTE's charter and should clearly relate to its mission and goals.
? The PTE's objectives should demonstrate how it will contribute to the TES and the STEP over the next three years (2004-2006).
? The PTE's objectives will give effect over the next three years (2004-2006) to:
? its charter;
? the goals, change messages, strategies and objectives in the TES; and
? the TES's objectives prioritised in the STEP.
? To fulfil the above criteria, the Tertiary Education Commission will be looking for the PTE to demonstrate how it is planning to contribute to the TES and STEP across the dimensions of:
? excellence, in terms of raising the quality of its teaching, learning and research;
? relevance, in terms of achieving a better match between its programmes of learning and:
ª local, regional skill and economic needs;
ª where appropriate, national skill and economic needs; and
ª the needs of New Zealand communities;
ª responding to the developmental aspirations of Maori communities; and
ª responding to the developmental aspirations of New Zealand's Pacific peoples' communities.
? access, in terms of ensuring equity of access and opportunity for all learners, including:
ª providing learning environments and delivery methods that meet the needs of learners that the PTE seeks to serve; and
ª raising levels of participation, retention and achievement of:
? Maori especially at degree and post graduate level;
? Pacific learners;
? women in non-traditional areas such as science and technology areas;
? learners with disabilities; and
? people from low income situations.
? capability, in terms of:
ª improving its strategic leadership at management levels; and
ª ensuring that it has the capability or development plans in place to give effect to its charter and profile.
Treaty of Waitangi
? The PTE should have specific objectives relating to its charter goals on the Treaty of Waitangi.
? The PTE demonstrates that its plans will give effect to its approach to the Treaty of Waitangi as outlined in its charter.
? The PTE has performance indicators and targets to enable measurement of its progress in achieving its Treaty of Waitangi goals.
Funding sought or received from the Tertiary Education Commission
? The PTE must identify all activities for which it seeks
or receives funding from the Tertiary Education Commission. This should be done through the PTE's SDR forecasts and in any agreements, or applications, for targeted funds e.g. Training Opportunities, Youth Training, Skill Enhancement and the Innovation Development Fund.
Subcontracting of teaching activity to other tertiary providers
? The PTE must provide a list of its existing and
future intended subcontracting arrangements with other providers where it will be the principal contractor (this applies to teaching and learning activity only).
? The PTE must attach a written declaration signed by
the chief executive officer (or equivalent) affirming that the:
? organisation's subcontracting arrangements for its teaching activity comply with TEC's requirements specified for the interim profile and the existing requirements given in A Guide to Tertiary Education Funding;
? organisation has appropriate processes in place to maintain quality learning outcomes (the minimum standard for these processes is defined below);
? organisation has appropriate financial processes in place to provide a transparent audit trail for each contractual arrangement; and
? organisation is prepared for a comprehensive audit
of any of its subcontracting arrangements within
10 working days notice from TEC.

? The PTE has submitted the information required via the SDR and in any agreements, or applications, for targeted funding.
Subcontracting with other tertiary providers
? The PTE has provided a list of its existing and future intended subcontracting arrangements with other providers.
? The written declaration signed by the PTE's chief executive officer (or equivalent) is attached.
Performance indicators and targets
? Where possible, objectives should have associated performance indicators that cover the qualitative dimensions of performance and others that cover the quantitative dimensions. Likewise, there should be some indicators that are of a financial nature and non-financial nature.
? All performance indicators should have associated performance targets that relate to the year for which the profile applies (2004) plus, where possible, the following two outyears (2005 and 2006). In order to enable those targets to be readily understood, the past year's actual performance (2002) and the current year's expected performance (2003) should also be stated.
? For each qualification offered, the PTE must provide performance objectives or outcomes, indicators and targets for:
? participation by learners with a declared disability;
? participation by females (or males) in traditionally under-represented areas;
? participation by Maori learners;
? participation by learners of Pacific origin;
? learners' satisfaction;
? learner completions;
? learner qualification attainment;
? staff with appropriate qualifications to support learning needs of Maori and Pacific learners, and learners with a disability.
? The PTE must have performance objectives and targets for the delivery of targeted training programmes in 2004 e.g. Training Opportunities, Youth Training and Skill Enhancement.
? The performance indicators for the objectives might also include indicators for:
? improving the quality of teaching and learning;
? approach to co-operation and collaboration with other TEOs;
? approach to meeting the needs of Pacific peoples described in the charter;
? equal education opportunities for learners; and
? equal employment opportunities for staff.
Financial performance indicators
? Where the PTE receives EFTS funding, it must provide projected financial statements for the next three years accompanied by an attestation from an independent chartered accountant verifying that these forecasts have been properly compiled.
? Performance indicators are specific, measurable, auditable, realistic, time-bound.
? The performance indicators will enable a sound assessment of overall performance of the PTE.
? The performance targets are readily understood.
? The performance targets give the 2002 year's actual performance and the 2003 year's expected performance and, where possible, forecast performance for 2004 and 2005 and 2006.
? The PTE has submitted via Agreements performance objectives and targets for the delivery of targeted training programmes in 2004 e.g. Training Opportunities, Youth Training and Skill Enhancement.
? The PTE has provided projected financial statements for the next three years, accompanied by an attestation from an independent chartered accountant verifying that these forecasts have been properly compiled.
(PTE's that have already submitted financial forecasts during 2003 as part of regular financial viability reporting requirements do not need to re-submit this information. TEC will refer to the reports the PTE has already provided.)
Part C - Consultation
The profile must include a report describing the consultations with the PTE's staff and learners, and those with the communities the PTE serves that it undertook before it submitted the profile.
The profile includes a report describing the consultations with the PTE's staff and learners, and those with the communities the PTE serves that it undertook before it submitted the profile.