2010 financial performance information

The following provides financial information about the 31 tertiary education institutions that operated during 2010¹ based on the summaries of audited financial results provided by the TEIs to the Tertiary Education Commission (TEC) in a standard financial template format.

The figures are presented at a TEI consolidated group level and reflect submissions received up to July, 2011.

Surpluses

TEI financial performance improved markedly in 2010 with an overall surplus before abnormal items² of $231 million or 5.2% from a revenue base of about $4.4 billion ($2.2 billion of which is government funding³).

Table One: Net surplus (before unusual and non recurring items)

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Total ITP sector	24.7	70.6	90.4
Total University sector	74.8	98.0	125.8
Total Wānanga sector	11.0	14.2	14.9
Total TEI sector	110.5	182.8	231.0

All sub-sectors’ surpluses were well above the 3% TEC guideline, with ITPs reporting a surplus of 8.3%, universities a surplus of 4.0% and wānanga a surplus of 7.3%.  The 2010 results were higher than those reported in 2009 across all sub-sectors.

The graph below shows an overall continuing improvement in surplus levels from 2006 to 2010 and across all sub-sectors.

¹ On 1 January 2011 Tairawhiti Polytechnic and Telford Rural Polytechnic were disestablished.  Both institutions filed 2010 annual reports and their results are incorporated in the sector and sub sector (ITP) summary information as at 31 December 2010.

² The surplus before abnormal items excludes items of a one-off or unusual nature as disclosed by the TEI in its annual financial template return provided to the TEC in May 2011.

³ Government funding includes funding provided by the Government from all sources.  Also includes Industry Training Organisation (ITO) funding.

 

These improvements in financial performance are principally due to an overall increase in student enrolments and government funding, and improved management by TEIs of their financial performance.

Total revenue

TEIs’ total revenue (including non-government funding and government funding) increased 13.0% from $3,910 million in 2008 to $4,417 million in 2010, with government funding amounting to 49.7% of total 2010 revenue.  The increase in total revenue has been steady across all sub-sectors.

Table Two: Total revenue

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Total ITP sector	942	1,021	1,089
Total University sector	2,795	2,961	3,125
Total Wānanga sector	172	195	204
Total TEI sector	3,910	4,177	4,417

Government funding

TEIs’ government funding (all sources) increased 11.4% from $1,971 million in 2008 to $2,195 million in 2010.

Table Three: Government Funding

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Total ITP sector	589	648	676
Total University sector	1,229	1,297	1,345
Total Wānanga sector	153	169	174
Total TEI sector	1,971	2,114	2,195

Student component funding (Student Achievement Component (SAC) and Tertiary Education Organisation Component (TEOC)), the largest source of government funding at 80.7% of total government funding, increased 14.7% from $1,545 million in 2008 to $1,772 million in 2010.

Performance Based Research Fund (PBRF) and other TEC research contracts increased 7.8% from 2008 ($232 million) to 2010 ($250 million), and now constitute 11.4% of total government funding to TEIs.

Other government funding⁴ decreased 10.6% from $194 million in 2008 to $174 million in 2010.

Over the same period, other sources of government funding (e.g. funding for ITO provision) decreased 11.5% from $24.6 million in 2008 to $21.8 million in 2010.

⁴ ‘Other government funding’ includes other TEC-allocated on and off Investment Plan funding (not included above), EFTS Vote Heath funding, and ITO funding.

Non-government revenue

Between 2008 and 2010 there was a 14.6% increase (from $1,939 million to $2,222 million) in non-government revenue.

Table Four: Non-government Revenue

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Total ITP sector	353	373	413
Total University sector	1,566	1,663	1,780
Total Wānanga sector	20	27	30
Total TEI sector	1,939	2,063	2,222

Components of non-government revenue were domestic student fees ($834 million in 2010); international student fees ($362 million in 2010); non-government research income ($491 million in 2010); and other sources ($536 million in 2010).

Table Five: Non-government Revenue by Type

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Domestic Fees	662	746	834**
International Fees	313	331	362
Research Income*	446	478	491
Other	518	508	536
Total TEI sector	1,939	2,063	2,222**

* Excludes PBRF and any other TEC funding recorded under Government research revenue in TEI financial monitoring returns.

** Domestic fees include student “other charges”.

TEI net assets

The value of TEI net assets also increased between 2008 and 2010 by 8.1% (from $7,212 million to $7,799 million). This increase has been due to growth in surplus and asset revaluations.

Table Six: Net Assets

TEI	2008 Audited ($m)	2009 Audited ($m)	2010 Audited ($m)
Total ITP sector	1,442	1,584	1,657
Total University sector	5,623	5,738	5,886
Total Wānanga sector	147	218	256
Total TEI sector	7,212	7,540	7,799

Universities

Universities’ surpluses (before abnormals) increased from $74.8 million in 2008 to $98.0 million in 2009, and increased to $125.8 million in 2010. From 2008 to 2010, universities’ government funding increased 9.4% (from $1,229 million to $1,345 million), non-government revenue 13.6% (from $1,566 million to $1,780 million), and universities’ net assets 4.7% (from $5,623 million to $5,886 million). Further details and tables on each university.

Institutes of technology and polytechnics

Overall, between 2008 and 2010 ITPs’ surpluses (before abnormals) increased from $24.7 million to $90.4 million. From 2008 to 2010 government funding to ITPs increased 14.7% (from $589 million to $676 million), non-government revenue increased 16.9% (from $353 million to $413 million), and ITPs’ net assets 14.9% (from $1,442 million to $1,657 million). Further details and tables on each ITP.

Wānanga

From 2008 to 2010 the surpluses generated in the wānanga sector (before abnormals) increased from $11.0 million to $14.9 million. From 2008 to 2010 government funding to the wānanga sector increased 14.3% (from $153 million to $174 million), non-government revenue increased 49.5% (from $20 million to $30 million), and net assets 74.3% (from $147 million to $256 million).  The latter was due largely to Treaty of Waitangi settlements. Further details and tables on each wānanga.
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