NZVCC Financial Statements and Audit Opinion 30.6.2020.pdf

NEW ZEALAND
VICE-CHANCELLORS’ COMMITTEE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2020

1

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

2

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

4

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

BACKGROUND

Establishment of the Committee

The Committee is a statutory body established under section 240 of the Education Act 1989 (the same body established under the Universities Act 1961).  The
Vice-Chancellors of the eight universities make up the membership of the Committee.  They are assisted in the administration of the Committee’s affairs by a
range of committees and working groups and a secretariat based in Wellington. The New Zealand Vice-Chancellors’ Committee (NZVCC) adopted the name
Universities New Zealand – Te Pōkai Tara in August 2010.

Sources of Funds

Grants of $2,755,000 from the universities were the main source of funding received by the Committee. $2,345,000 was for the Committee and $410,000 for the
Academic Quality Agency for New Zealand Universities (AQA).

Interest revenue and scholarship administration fees supplement this revenue.

Further Information about Universities New Zealand – Te Pōkai Tara (Universities NZ)

The Universities NZ website, www.universitiesnz.ac.nz provides a wide range of information and publications.

The Universities NZ offices are located at Level 9, 142 Lambton Quay, Wellington.

Further information about the Academic Quality Agency for New Zealand Universities

The Academic Quality Agency for New Zealand Universities was established by the New Zealand Vice-Chancellors’ Committee. It is funded by the
universities and its Board is appointed by the NZVCC. However its operations, including academic audits, are independent of the NZVCC and of the
individual universities. The accounts of the AQA have been included in the consolidated accounts of the NZVCC. This in no way  compromises the
operational independence of the AQA in carrying out its activities.

The office of the AQA is located at Level 9, 142 Lambton Quay, Wellington.

Further information about the AQA can be found at www.aqa.ac.nz.

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

5

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

6

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

STATEMENT OF RESPONSIBILITY

We acknowledge that:

(a)  The preparation of financial statements of the New Zealand Vice-Chancellors’ Committee and judgements used herein are our
responsibility.

(b)  The establishment and maintenance of an internal control system designed to give reasonable assurance as to the integrity and
reliability of the financial and non-financial reports for the year ended 30 June 2020 are our responsibility; and

In our opinion the financial statements for the year under review fairly reflect the financial position and operations of the
New Zealand Vice-Chancellors’ Committee.

Mr Derek McCormack
Professor Jan Thomas
Chair

Deputy Chair
New Zealand Vice-Chancellors’ Committee

New Zealand Vice-Chancellors’ Committee

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

7

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

8

INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF NEW ZEALAND VICE CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS AND STATEMENT OF SERVICE PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2020

The Auditor-General is the auditor of New Zealand Vice Chancellors’ Committee (the
“Committee”) and group. The Auditor-General has appointed me, Henry McClintock, using the
staff and resources of BDO Wellington Audit Limited, to carry out the audit of the financial
statements and statement of service performance of the Committee on his behalf.
Opinion
We have audited:
•
the financial statements of the Committee on pages 28 to 46, that comprise the
statement of financial position as at 30 June 2020, the statement of comprehensive
revenue and expense, statement of changes in equity and statement of cash flows for
the year ended on that date and the notes to the financial statements that include
accounting policies and other explanatory information; and
•
the statement of service performance of the Committee is on pages 15 to 27.
In our opinion:
•
the financial statements of the Committee on pages 28 to 46:
o
present fairly, in all material respects:
-
its financial position as at 30 June 2020; and
-
its financial performance and cash flows for the year then ended; and
o
comply with generally accepted accounting practice in New Zealand in
accordance with Public Sector Public Benefit Entity Standards Reduced
Disclosure Regime; and
•
the statement of service performance of the Committee on pages 15 to 27 presents
fairly, in all material respects, the Committee’s service performance achievements
easured against the proposed outcomes for the year ended 30 June 2020.
Our audit was completed on 28 September 2020. This is the date at which our opinion is
expressed.
The basis for our opinion is explained below. In addition, we outline the responsibilities of the
Council and our responsibilities relating to the financial statements and the statement of
service performance, we comment on other information, and we explain our independence.
Impact of Covid-19
Without modifying our opinion, we draw attention to the disclosures about the impact of
Covid-19 on the Committee as set out in note 26 to the financial statements.
Basis for our opinion
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which
incorporate the Professional and Ethical Standards and the International Standards on
Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board.
Our responsibilities under those standards are further described in the Responsibilities of the
auditor section of our report.
We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing
Standards.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.

Responsibilities of the Council for the financial statements and the statement of service
performance
The Council is responsible on behalf of the Committee for preparing financial statements that
are fairly presented and that comply with generally accepted accounting practice in New
Zealand.
The Council is also responsible on behalf of the Committee for preparing a statement of
service performance that is fairly presented.
The Council is responsible for such internal control as it determines is necessary to enable it
to prepare financial statements and a statement of service performance that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements and the statement of service performance, the Council
is responsible on behalf of the Committee for assessing the Committee’s ability to continue as
a going concern. The Council is also responsible for disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting, unless the Council intends
to liquidate The Committee or to cease operations, or has no realistic alternative but to do
so.
The Council’s responsibilities arise from the Crown Entities Act 2004 and the Education Act
1989.
Responsibilities of the auditor for the audit of the financial statements and the statement
of service performance
Our objectives are to obtain reasonable assurance about whether the financial statements
and the statement of service performance, as a whole, are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried
out in accordance with the Auditor-General’s Auditing Standards will always detect a material
misstatement when it exists. Misstatements are differences or omissions of amounts or
disclosures, and can arise from fraud or error. Misstatements are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the decisions
of readers taken on the basis of these financial statements and statement of service
performance.
For the budget information reported in the financial statements and the statement of service
performance, our procedures were limited to checking that the information agreed to the
Committee’s statement of performance expectations.
We did not evaluate the security and controls over the electronic publication of the financial
statements and the statement of service performance.
As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. Also:
•
We identify and assess the risks of material misstatement of the financial statements
and the statement of service performance, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
•
We obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Committee’s internal
control.

•
We evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Council.
•
We conclude on the appropriateness of the use of the going concern basis of
accounting by the Council and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Committee’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements and the statement of
service performance or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Committee to cease to
continue as a going concern.
•
We evaluate the overall presentation, structure and content of the financial
statements and the statement of service performance, including the disclosures, and
whether the financial statements and the statement of service performance represent
the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Council regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Our responsibilities arise from the Public Audit Act 2001.
Other information
The Council is responsible for the other information. The other information comprises the
information included on pages 5, 7 and 13, but does not include the financial statements or
the statement of service performance, and our auditor’s report thereon.
Our opinion on the financial statements and the statement of service performance does not
cover the other information and we do not express any form of audit opinion or assurance
conclusion thereon.
In connection with our audit of the financial statements and the statement of service
performance, our responsibility is to read the other information. In doing so, we consider
whether the other information is materially inconsistent with the financial statements and
the statement of service performance or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on our work, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Independence
We are independent of the Committee in accordance with the independence requirements of
the Auditor-General’s Auditing Standards, which incorporate the independence requirements
of Professional and Ethical Standard 1 (Revised): Code of Ethics for Assurance Practitioners
issued by the New Zealand Auditing and Assurance Standards Board.
Other than the audit, we have no relationship with or interests in the Committee.

Henry McClintock
BDO WELLINGTON AUDIT LIMITED
On behalf of the Auditor-General
Wellington, New Zealand

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
STATEMENT OF OBJECTIVES
FOR THE YEAR ENDED 30 JUNE 2020

Roles

Universities NZ has three roles:

1.
A statutory role in quality assuring all NZ university academic programmes, advising on university entrance standards and managing a range of
scholarship schemes.

2.
A coordination role in bringing together different parts of the university system to share best practice and to collaborate on matters of common
interest.

3.
A role working with key Government agencies and ministers to ensure that there is good understanding regarding the university sector and to
contribute to the development of Government policy.

Outcomes

Universities New Zealand – Te Pōkai Tara seeks to achieve the following outcomes:

1.
Enhanced quality assurance in the New Zealand university system

2.
Enhanced efficiency and effectiveness across the New Zealand university system

3.
Policies and an operating environment that ensure New Zealand universities are optimally able to contribute to economic growth and social well-being.

Functions

1.
To exercise approval and moderation procedures for new academic programmes in universities and to develop and support processes for auditing quality
assurance.

2.
To administer current scholarship schemes and to develop that function further.

3.
To provide policy advice and co-ordinating services to the universities, government and any other bodies on inter-university policy issues including representing
the New Zealand university system nationally and internationally.

13

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
STATEMENT OF PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2020

Output 1 – Academic Quality Assurance

Outcomes
This output contributes to the achievement of Outcomes 1 and 3  - enhanced quality assurance in the New Zealand university system, and
policies and activities that strengthen the universities’ contribution to economic growth and social well-being.

The Academic Quality Agency for New Zealand Universities also contributes to Outcome 1, and their Statement of Performance is provided
separately.

Service Provided

To exercise approval and moderation procedures for new academic programmes in universities, develop and support processes for monitoring
quality assurance, and provide advice on matters of academic policy.

Quality and Timeliness

The quality and timeliness of the work of the Committee on University Academic Programmes (CUAP) is ensured by CUAP carrying out its functions
and procedures in accordance with the criteria and timetable set out in its handbook, and by periodic independent audits of its procedures.

(a)
Objective

To complete the two annual rounds of approvals for new university academic programmes.

Achievements
CUAP approved 57 new qualifications in 2019 to be offered in 2020.

(b)
Objective

To develop and improve quality assurance arrangements in New Zealand universities.

Achievements
•
CUAP agreed amendments to the CUAP Handbook, specifically the Graduating Year Review template.
•
The  Universities  NZ  Portfolio  Manager  –  Academic  Programmes  facilitated  a  workshop  for  universities  academic  office  staff  to
discuss CUAP and institutional policies and processes, and to share good practice. The focus of the 2019 workshop was on technical
aspects of the CUAP process and online system.
•
The  Universities  NZ  Portfolio  Manager  –  Academic  Programmes  met  with  representatives  from  the  Teaching  Council,  Nursing
Council and Social Workers Registration Board.
•
The Universities NZ Portfolio Manager – Academic Programmes attended AQA Quality Forum, the Enhancement Theme Symposium
and, the Australian Tertiary Education Quality and Standards Authority (TEQSA) annual conference.

(c)
Objective

To  work  effectively  with  the  New  Zealand  Qualifications  Authority  (NZQA)  to  fulfil  statutory  responsibilities  and  promote  quality
assurance.

Achievements
The Joint Consultative Group, a body made up of Universities NZ, NZQA and AQA met twice.

CUAP made a submission on NZQA’s Review of the New Zealand Qualifications Framework.

Universities NZ continued to liaise closely with NZQA regarding the operation of the New Zealand Qualifications Framework.

(d)
Objective

To consider matters relating to university entrance, and to contribute to the process of curriculum development and examination in the
senior secondary school.

Achievements
CUAP’s Subcommittee on University Entrance met five times (via Zoom).

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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CUAP’s Subcommittee on University Entrance met with NZQA’s Assessment Division regarding changes to the UE Award in response to
COVID-19 disruptions and provided advice to the NZVCC.

The Subcommittee made a submission on the Ministry of Education’s Provisional NCEA Level 1 Subject List.

The Universities NZ Portfolio Manager – Academic Programmes attended meetings of the following cross-sector groups:
•
Secondary Qualifications Advisory Group (NZQA).
•
Māori-medium Secondary Qualifications Advisory Group.
•
Pathways Advisory Group (Ministry of Education).

(e)
Objective
To work effectively with the Academic Quality Agency for New Zealand Universities to fulfil Universities NZ’s responsibilities for quality
assurance in the universities.

Achievements
•
The Joint Consultative Group, a body made up of Universities NZ, NZQA and AQA met twice.
•
Universities NZ participated with AQA on presentations on university quality assurance policies to an international delegation from
Vietnam.
•
Universities NZ Portfolio Manager - Academic Programmes attended AQA’s Quality Forum and Enhancement Theme Symposium.
•
NZQA, AQA and Universities NZ co-hosted two TEQSA Academic Integrity workshops in New Zealand.

Total budget for academic services:

$252,873
Total cost for academic services:

$254,236

Output 2 - Scholarships

Outcomes
This output contributes to the achievement of Outcome 3 - policies and activities that strengthen the universities’ contribution to economic
growth and social well-being.

Service Provided

To administer current scholarship schemes and to further develop the provision of scholarships.

Quality and Timeliness

The  quality  and  timeliness  of  scholarship  administration  is  ensured  by  the  supervision  of  the  Scholarships  Committee  and  adherence  to  the
timetable and rules for the award of each scholarship scheme.

Achievements
During the reporting period management and administration services were provided for 37 scholarship programmes.
For the programmes Universities NZ:
•
made 53 scholarship or fellowship awards on behalf of sponsors and donors.
•
made 34 nominations of NZ applicants to overseas decision-making bodies.
•
made the selection of 13 scholars where the awards were then managed by the donor.

Total budget for scholarship services:

$379,310
Total cost for scholarship services:

$381,354

Output 3 - Policy Advice and Coordinating Services

Outcomes
This output contributes to the achievement of Outcomes 2 and 3 – enhanced efficiency in the New Zealand university system, and policies and
activities that strengthen the universities’ contribution to economic growth and social well-being.

Service Provided
To provide policy advice and coordinating services to Government and the universities, particularly through the government agencies of the Tertiary
Education  Commission  (TEC),  Ministry  of  Business,  Innovation  and  Employment  (MBIE),  New  Zealand  Qualifications  Authority  and  Ministry  of
Education, including participating in working parties.

Quality and Timeliness
The quality and timeliness of advice is ensured by approval of policy advice and submissions by Universities NZ as well as its committees.

(a)
Governance

Objective
To assist Chancellors in holding meetings, and joint meetings with Vice-Chancellors.

Achievements
Chancellors met as a group by themselves, and then with the Vice-Chancellors, twice in 2019/20 – in August 2019 and February 2020.

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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(b)
Ministers and Government Agencies

Objective

To initiate and respond to policy initiatives on behalf of the universities.

Achievements
Submissions were made to the Government during 2019/20 on the following subjects;
•
Submission on Student Voice (October 2019)
•
Submission on the Government’s Tertiary Education Strategy (October 2019)
•
Submission on the Ministry of Foreign Affairs and Trade’s Export Controls (November 2019)
•
Submission on the Education (Pastoral Care) Amendment Bill (November 2019)
•
Submission on Functional Disposal for the Health Sector (December 2019)
•
Submission on the Education and Training Bill (February 2020)

Universities New Zealand continued an active programme of engagement with officials and ministers, and contributed to the following;
•
Response to Covid-19, including
o
Advice on operations at different alert levels
o
Restarting international education
o
The financial impact of Covid on the university sector and options for mitigation.
o
Supporting learner success of students unable to adequately study online.
•
Longer term strategies for international education.
•
Advice around reform of higher education funding policies.
•
Improving the success of learners through use of business analytics.
•
Government policy around asbestos.

Responding appropriately to other smaller scale Government initiatives including;
•
The Ministry of Business, Innovation, and Employment’s New Zealand Research Information System project.
•
Improving student wellbeing and resilience.
•
The Reform of Vocational Education and the Unified Funding System Review.
•
The new Centres of Research Excellence funding round.
•
The Tertiary Education Commission Data 2020 project.

(c)
The Public and Non-Government Stakeholders

Objective

To ensure there is understanding and support for the university sector across New Zealand society.

Achievements
•
A new Universities New Zealand website (learnmore.nz) was created to highlight the role and contribution of universities in New
Zealand, particularly during the period of COVID19.
•
During the year, the Chief Executive of  Universities NZ presented twice  at conferences,  and  held  15 meetings with stakeholder
groups such as Business NZ, the New Zealand Union of Students’ Associations, and Science New Zealand.  He also made a large
number of media statements, both proactive and reactive.

(d)
Research

Objectives

To promote the funding of university research in New Zealand.

To facilitate the development of relationships with the Ministry of Business, Innovation and Employment, other research funding bodies
such as the Health Research Council and the Royal Society of New Zealand, and the Tertiary Education Commission.

To co-ordinate consideration of research issues amongst the universities.

To foster the universities’ relationship with the Crown Research Institutes (CRIs) and Science New Zealand.

To support the care of animals in research.

Achievements
•
Initiated work with 10 government agencies to manage the impact of COVID-19 on research funding. Agencies included the Tertiary
Education Commission (TEC), Ministry of Business, Innovation & Employment (MBIE), Ministry for Primary Industries (MPI), Ministry
of  Education  (MoE),  Callaghan  Innovation,  Ministry  of  Social  Development  (MSD),  Ministry  of  Health  (MoH),  Health  Research
Council (HRC), The Royal Society of NZ and the Ministry of Justice.
•
Worked with government to advise on what research looks like at different alert levels during COVID-19 pandemic.
•
Assist in the fight against COVID-19 by establishing key databases such as a publicly available national database of all COVID-19
related research underway to enable connections and collaborations wherever possible, to package and distribute appropriately
all offers of assistance made to the Department of the Chief Science Advisor to the Prime Minister to help government during COVID-
19 pandemic, and to source all available COVID-19 testing equipment and volunteer expertise from all NZ research laboratories
including veterinarian labs.
•
Made a formal submission in November 2019 to MBIE on their draft Research, Science and Innovation Strategy
•
Advised on wording regarding the New Zealand Research Information System (NZRIS) in research contracts with HRC
The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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•
Prepared information on ‘research intensity in universities’ to MBIE
•
Commenced a programme to strengthen the relationships between universities and the Chief Science Advisor to the Prime Minister
(and relevant departmental Chief Science Advisors)
•
Made a formal submission to MoE in Oct 2019 regarding the review of the Performance based research funding (PBRF)
•
Fostered discussions on ‘openness and transparency’ of the use of animals in research and teaching
•
Made  a  formal  submission  to  the  Ministry  of  Foreign  Affairs  and  Trade  (MFAT)  on  the  proposed  changes  to  export  control
regulations.
•
Worked with the Royal Society on the drafting of their Research Charter for New Zealand.
•
Co-sponsored the Speaker’s Science Forum series at Parliament; worked with the  Royal Society on selecting suitable topics and
speakers, and preparing the speakers for potential questions from Members of Parliament.
•
Reviewed and advised on the proposed programme of work on open access and the future of research publications with the Council
of NZ University Librarians (CONZUL)
•
Commenced a project via a draft terms of reference with Department of Prime Minister and Cabinet (DPMC) on Evidence-based
policy development and evaluation through knowledge-sharing between university academics and policy makers.

(e)
Te Kāhui Amokura

Objectives
To provide advice to the Vice-Chancellors, the universities and government on strategies, policies and structures relating to Māori and
the universities, in areas of priority to Māori and Māori scholarship.

To instigate initiatives specifically in areas of priority to Māori and Māori scholarship.

Achievements
Universities New Zealand – Te Pōkai Tara and Te Kāhui Amokura continue to be represented on the following advisory and working
groups:
•
Enhancement Theme Steering Group (Cycle 6 – AQA)
•
Secondary Qualifications Advisory Group (NZQA)
•
Māori-Medium Secondary Qualifications Advisory Group (NZQA)

Te Kāhui Amokura have established formal relationships with the following government agencies who regularly attend committee
meetings:
•
Associate Minister Education (Māori) – Kelvin Davis
•
Tertiary Education Commission (TEC)
•
Ministry of Education (MoE)
•
New Zealand Qualifications Authority (NZQA)
•
Royal Society of New Zealand
•
Ngā Pae o te Māramatanga
•
Education New Zealand
Other achievements included:
•
Formalised relationship with Minister Davis – Associate Education Minister, Māori
•
Leading government agency workshops (MoE, TEC) regarding Māori achievement – Budget Bid Submission (2020)
•
Delivery of the NZ Summit – Language Revitalisation and Indigenous Development at the University of Brasilia, Brazil.
•
Establishment of Ngā Here Mātauranga – Global Indigenous Network
•
Development of the Te Kei – Māori Academic Development Programme across the eight universities for delivery in 2021
(delayed due to COVID-19)
•
Formalised relationship with the PVC Indigenous Group Australia
•
Participating in the Māori Peak Bodies Hui for Education
•
Successful delivery of the Enhancement Theme Symposium 2019 at Massey University
(f)
Komiti Pasifika

Objectives
To provide advice to the Vice-Chancellors, the universities and government on strategies, policies and structures relating to Pacific and
the universities, in areas of Pacific achievement, research and development.

Achievements
Universities New Zealand – Te Pōkai Tara and Komiti Pasifika are represented on the following advisory and working groups:
•
Enhancement Theme Steering Group (Cycle 6 – AQA)
•
Secondary Qualifications Advisory Group (NZQA)
Komiti Pasifika have established formal relationships with the following government agencies who regularly attend committee
meetings:

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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•
Tertiary Education Commission (TEC)
•
Ministry of Education (MoE)
•
New Zealand Qualifications Authority (NZQA)
•
Ministry of Pacific Peoples (MPP)
Other achievements included:
•
National Education Conversations – Attendance at Pacific Regional Fono
•
Developed a paper for the International Office Managers regarding Scholarships in the Pacific – concerns and opportunities
with MFAT
•
Performance Based Research System (PBRF) Review – Pasifika Perspective
•
Successful delivery of the Enhancement Theme Symposium 2019 at Massey University

(g)
DVC Academics

Objectives

To provide advice to the Vice-Chancellors on the wider education sector priorities or issues that may concern the universities. To provide
leadership to the sector on the future developments of education.

Achievements
The DVC Academics have the following working groups reporting to them:
•
Work Integrated Learning Group (WiL)

The DVC Academic Committee have established formal relationships with the following government agencies who attend committee
meetings:
•
Tertiary Education Commission (TEC)
•
Ministry of Education (MoE)
•
New Zealand Qualifications Authority (NZQA)

Other achievements included:
•
Formal establishment of Committee and Terms of Reference
•
National Education Conversations – Tertiary Education Strategy
•
Development of a national stock-take and report on Online Examinations across the universities
•
Enhancement Theme Steering Group
•
Reskilling and Upskilling Options paper developed for the Ministry of Education (COVID-19 response)

(h)
Human Resources

Objectives

To  monitor  university  human  resources  issues  at  the  national  level  with  particular  regard  to  the  international  competitiveness  of
remuneration, staff recruitment and retention.

To advise the Vice-Chancellors on human resources matters.

Achievements
•
Human Resources Directors (HR Directors) held seven meetings in 2019/2020
•
HR Directors are monitoring impacts related to changes in employment legislation, developments in health, safety and wellbeing
including an increase in hate speech, harassment and discrimination, increased working from home or remote working, and related
longer term possibilities and logistics presented by changed university circumstances and employee expectations.

(i)
Copyright Licensing

Objectives

To negotiate on behalf of universities for licenses with copyright licensing agencies, and to keep new developments in copyright including
legislative change under review.

Achievements
•
The Copyright Expert Working Group (CEWG) communicated via email, teleconferences and met once in person in 2019/20. Specific
subjects of discussion included: e-reporting and preparations of the annual reporting to Copyright Licensing NZ, changes to licensing
agreements, ongoing discussions on review of the Copyright Act, PMCA licence and coverage of MMO copying. Since COVID 19 the
CEWG has met weekly by Zoom.
•
Face to face meeting at Auckland University of Technology with presentations by Liz Stanton from Universities Australia, the CEOs
of  OneMusic  and  CLNZ  and  a  video  link  to  the  MBIE  team  managing  the  Copyright  Act  Review,  workshops  on  best  practice  in
managing e-reporting, communicating using social media, presentation of data on copying of copyright content in universities and
future licensing needs.
•
Clarified with OneMusic that the licence should be interpreted broadly and the communication of music in public university events
covered by the licence. Negotiated renewal of licence with no increase in the fee.
The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

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•
Achieved extended rights under the CLNZ licence to copy 50% of print materials for semester 1 2020, when universities moved to
teaching remotely.
•
Informal discussions with MBIE on changes needed to the Copyright Act post COVID 19.
•
Submission on the Marrakesh Treaty to the Select Committee, which resulted in the Committee recommending the removal of the
“commercial availability” test.
•
Ongoing discussions with CLNZ to include MMO copying under the licence.
•
CEWG shared a list of readings they had digitised and were able to share digitised readings to meet the needs of lecturers in other
universities.

(j)
Communications

Objectives

To  promote  increased  public  support  for  the  New  Zealand  university  system  by  raising  awareness  of  universities’  multifaceted
contribution to individual advancement and New Zealand’s economic, social, cultural and environmental goals.

To  raise  awareness  of  university  education,  research  and  internationalisation  activities,  and  how  these  add  value  to  New  Zealand’s
economic and social development.

Achievements
•
Maintained and updated website
•
Updated Key Facts & Stats publication for the university sector.
•
Published updated student directory: Thinking about university? A guide for students, parent and whanau.
•
Developed 16 media releases and news stories, coordinated comments and quotes, facilitated interviews with the Chief Executive
and Chair.
•
Developed opinion pieces on key sector issues.
•
Published regular newsletter on sector issues.
•
Supported planning for and organisation of University Communications Managers’ Annual event.
•
Held half-yearly event for University Communication Managers.
•
Other support work for Vice-Chancellors and Universities New Zealand.

(k)
International

Objectives

To facilitate internationalisation in the NZ universities.

To co-ordinate the consideration of international policy and strategy amongst the universities.

To develop and maintain relationships with foreign higher education providers, governments and peak bodies.

To  foster  the  universities’  relationship  with  Education  NZ,  the  Ministry  of  Education,  Immigration  and  other  relevant  government
agencies.

To provide advice to the Vice-Chancellors and government on matters relevant to internationalisation in the New Zealand universities.

Achievements
•
The International Policy Committee held 3 meetings during the year
•
International Collaboration in higher education was promoted through:
o
Academic forums in Brazil in India
o
Hosting a delegation from Brazil
o
Implementing  an  outbound  mobility  project  in  entrepreneurship  at  the  University  of  Sao  Paulo,  and  delivering  an
indigenous language revitalisation, education and development conference in Brasilia
o
Establishing a New Zealand Centre in India at IIT Delhi
•
Strengthened relationships with government agencies and advocated for favourable policy settings:
o
Universities NZ sits on the peak-body working group which has representatives from Immigration New Zealand (INZ),
Education New Zealand (ENZ), and the Ministry of Education.
o
Have quarterly meetings with INZ and ENZ
o
Secured funding support for strategy implementation and bespoke projects from ENZ
o
Developed a joint work plan with ENZ
•
Completed pan-university initiatives:
o
Continued Implementation of the India market development strategy
o
Implemented the second phase of the Latin America Strategy; and associated Agent Strategy
o
Developed a university sector Innovation Plan

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

20

(l)
Information and Communications Technology

Objective
To provide leadership in the use of information and communications technology in the universities, and to  advance the efficient and
effective  use  of  this  technology  in  the  support  of  teaching,  learning,  research  and  administration  by  the  staff  and  students  of  NZ
universities.

Achievements
•
The Information Communication Technology Committee held eight meetings in 2019/2020
•
Ensuring universities’ operation during COVID has been the primary focus of the group.
•
Negotiations are underway for Microsoft licensing.

(m)
Libraries

Objective
To improve access for students and staff of NZ universities to the  information resources required to advance teaching, learning and
research.

Achievements
•
The Council of NZ University Librarians (CONZUL) held six meetings in 2019/20
•
Progressing the understanding and move toward Open Access in universities’ publishing processes

(n)
Facilities Management

Objective
To  provide  leadership  in  the  management  of  resources  for  the  maintenance,  compliance  and  sustainability  of  the  New  Zealand
universities’ property and related infrastructure assets.

Achievements
•
Facilities managers’ met once face to face in 2019/20 and five times online in 2020.
•
Publication of the sector-wide Understanding of Asbestos regulations
•
Request to review regulatory gaps and ambiguous areas in the current Asbestos legislation submitted to the regulator MBIE.
•
Establishment of a relationship with the new Infrastructure Commission.
•
Development of a construction procurement best practice framework and contract schedule templates for university application.
•
Establishment of an Asset Managers community of practice in the sector.

(o)
Planning

Objective
To  provide  advice  on  issues  concerning  the  universities’  planning,  funding  and  reporting  functions,  especially  those  related  to  the
proposals and requirements of the Tertiary Education Commission and the Ministry of Education.

Achievements
•
Formal submission made in July 2019 to the Tertiary Education Commission (TEC) on The Tertiary Education (Conditions Setting
Limits on Fees for New Courses) Notice – the 2020 Annual Maximum Fee Movement Notice
•
Worked with the TEC to resolve persisting issues surrounding the implementation of the government’s fees-free policy.
•
Engaged with the TEC on:
o
the impact of COVID-19 on university operations and the Investment Plan Round,
o
TEC’s Data2020 project and
o
TEC’s programme for students with disabilities
•
Informal  advice  was  provided  to  the  Ministry  of  Education  (MOE)  on  their  consultation  process  with  universities  regarding  the
pending National Certificate of Educational Achievement (NCEA) changes.
•
Engaged with MoE on:
o
the impact of COVID-19 on international students and
o
a replacement for their Tertiary Data Warehouse which MOE decided to decommission.
•
Undertook a stocktake of university graduate student surveys with the aim of setting up a working group in July 2020 to design a
common set of 5-6 questions to be included in all university graduate surveys from 2021.

(p)
Student Administration and Academic Services

Objectives
To provide advice and make recommendations to the Vice-Chancellors on matters relating to the provision of student administration
and academic services, and to be the principal contact on behalf of the universities with appropriate government agencies.

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

21

Achievements
•
CSAAS continued to liaise closely with StudyLink and NZQA.
•
CSAAS led discussion on My eQuals with CSAAS representatives on the Australasian governance and steering committees.
•
CSAAS  members  supported  Massey  and  Victoria  universities  in  co-hosting  the  Australasian  Heads  of  Student  Administration
conference in Wellington.

(q)
Administrative Support

Objective
To provide administrative support to inter-university initiatives.

Achievements
Administrative  support  was  provided  to  all  formal  Universities  NZ  committees  during  the  year  and  to  the  NZ  Universities  Women  in
Leadership Programme, the NZ Universities Women in Leadership POD Fund, the Council of Deans of Education and to the Tertiary ICT
Conference.

The ‘Total budget for policy advice and coordinating services’ figure reflects the Universities NZ budget as it was set at the start of the financial year. The
budget figure is not revised as the year proceeds, however the eight universities do occasionally commit to additional one-off projects after the budget is set
and provide additional funding for them.  In this year, an additional $414,208 was provided for one-off projects.  This additional amount can be added to the
budget figure to more accurately understand the difference between Universities NZ’s costs and budget.

Total budget for policy advice and co-ordinating services:

$1,896,547
Total cost of policy advice and co-ordinating services:

$2,320,981

Total budget for all outputs:

$2,528,730
Total cost for all outputs:

$2,956,571



Mr Derek McCormack
Professor Jan Thomas

Chair

Deputy Chair
NZ Vice-Chancellors’ Committee
NZ Vice-Chancellors’ Committee

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

22

ACADEMIC QUALITY AGENCY FOR NEW ZEALAND UNIVERSITIES

STATEMENT OF PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2020

Objective 1: Quality Assurance
Quality assurance activities are timely and produce reports which are authoritative, fair and perceptive, are of
assistance to universities, and support confidence in the academic quality of New Zealand universities.
Description: AQA undertakes regular academic audits of all New Zealand universities using a framework
developed by AQA in consultation with the sector and other stakeholders. Academic audits are conducted to a
schedule approved by the Board and with the agreement of the universities. From time to time, AQA may be
contracted to undertake other forms of audit or review including academic audits of international universities.
The quality and timeliness of the work of AQA are overseen by a Board, comprised of a Vice-Chancellor and
academic, student and lay members who are appointed by the NZVCC but operate independently of them and of
the universities.
The emphasis in 2019/20 for this objective is on receiving mid-cycle reports from universities and delivering
workshops and other training materials to prepared universities and auditors for the audit component of Cycle 6.
Measure
2019/20
2019/20
2018/19
2018/19
Delivered
Planned
Delivered
Planned
1.1 Receive mid-cycle reports as per
1
2
4
4
indicative timeline
(Lincoln,
(Lincoln, Otago)
(Auckland,
(Auckland,
Otago
Victoria,
Victoria,
delayed due
Canterbury,
Canterbury,
to COVID-19)
Waikato)
Waikato)
1.2 Publish report on the impact of
0
1
Cycle 5
(summary
published in
September
AQA
New measures in 2019 - 20
newsletter,

full report or
paper still
needs to be
completed)
The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

23

Measure
2019/20
2019/20
2018/19
2018/19
Delivered
Planned
Delivered
Planned
1.3 Enhancement theme guideline
2
2
statements confirmed
(published in
2nd Edition
Guides)
1.4 Deliver Workshop series on self-review
3 workshops
3 workshops plus
Defer to
1
and evidence for universities
held
online materials
2019/20
(Wellington,

Auckland,

Dunedin,
online
workshop
released 26
May 2020)
1.5 Pilot auditor training and develop
Defer to 2020-
1 pilot plus 1
online materials
21
workshop
delivered, online
materials
developed
New measures in 2019 - 20
1.6 Recruit auditors for Cycle 6
37 auditors
20 auditors
appointed to
recruited
the Cycle 6
Register
1.7 Student Voice Summit held
1
1
1
1
(14 November

2019)

Objective 2: Quality Enhancement - Universities
To contribute to the development, dissemination and implementation of new policies and good practices in
quality assurance and quality enhancement of New Zealand universities.
Description: AQA's mission includes assisting universities to facilitate excellent student experience and learning
outcomes. AQA undertakes this quality enhancement role in a variety of ways, including by identifying and
disseminating national and international good practice in regard to academic quality assurance and quality
enhancement, and by facilitating dialogue on quality enhancement initiatives.
In 2017/18 New Zealand universities commenced an ‘enhancement theme’ as part of Cycle 6 academic audit.
This continued in 2019/20 and guided much of AQA’s activity over this period.

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

24

Measure

2019/20
2019/20
2018/19
2018/19
Delivered
Planned
Delivered
Planned
2.1 Meetings of enhancement steering group
3
3
(19 July
3
held
(18 July 2019;
2018, 19
17 Oct. 2019;
Sep. 2018;
12 March
15 Nov.
2020)
2018; 14
Mar.
2019).
2.2 Enhancement theme evaluation undertaken
0
1
1
1
No external

review to be
commissioned.
2.3 Enhancement theme symposium held
1
1
1
1
(subject to support from ETSG)
(1 November

2019)
2.4 Dissemination of enhancement theme
3
3
4
3
activities and progress (conference
(response to

presentations, media reports)
review of

theme
published;
dedicated
website,
Symposium
report)
2.5 Publication of AQA newsletter
4
4
4
4

2.6 Workshops and/or meetings held with New
1
1
4
1
Zealand universities on matters pertaining to
(Quality Forum

(QM
university quality
held 31

meeting,)
October 2019)

Objective 3: Quality Enhancement - AQA
To improve the quality of AQA activities, including audit practice, by interaction with other education and
academic quality assurance agencies, both nationally and internationally, and by seeking feedback and
reflecting on its own practices.
Description: AQA’s work is benchmarked internationally: the agency is independently audited every five years
(last audited in June 2015) and has been assessed as meeting the Guidelines of Good Practice in Quality
Assurance of the International Network for Quality Assurance Agencies in Higher Education (recognition of
alignment current to 1 December 2020). Interaction and engagement with national and international peer
The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

25

agencies are important components of AQA’s continued commitment to its own development and to the
professional development of its staff and activities.
Measure
2019/20
2019/20
2018/19
2018/19
Delivered
Planned
Delivered
Planned
3.1 Membership of related national boards,
2
2
2
2
committees and working groups
(JCG, NZQF
(JCG, NZQF
(JCG; NZQA
Review
Review
Qualifications
Advisory
Advisory
Framework
and Expert
Group, NZQF
review)
Working
Expert Group)
groups)
3.2 Gain or add value from international
3
2
engagement, demonstrated through practice
(TEQSA

change, invitations to undertake work
workshops,

internationally, provide advice or contribute to
FNU
conferences.
Review,
Changed measure for

Student
2019 - 20
Voice
Australia 11
October
2019)
3.3 Biennial QE/communications survey of
Will not be
Biennial
1
1
stakeholders
undertaken
(Reported in
in 2019-20
June 2019
newsletter)
3.4 Self-review for external review of AQA
1
1
submitted

New measure in 2019 - 20

Objective 4: Quality Support
To ensure effective processes and adequate resourcing to achieve the above objectives at a high level of
satisfaction for universities and other stakeholders.
Description: AQA’s annual operating grant is funded by the universities collectively. The Board of AQA prepares
and recommends a budget to the NZVCC prior to the commencement of each financial year. In doing do, the
Board seeks to ensure that the annual grant provides for an adequate level of resources to enable the
organisation to achieve its stated objectives for that year, and that the organisation’s net asset levels and cash
flow are sufficient to sustain its continued operation.

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

26

Measure
2019/20
2019/20
2018/19
2018/19
Planned
Delivered
Delivered
Planned
4.1 Review of annual service lease
Review
Review
Review
Review
agreement with Universities New
completed and
completed and
completed and
completed and
Zealand
lease re-signed
lease re-signed
lease re-signed
lease re-signed
(26 June 2019)
26 June 2020
4.2 Review of budget and staffing
Review
Review
Review
Review
requirements alongside ongoing
undertaken
undertaken
undertaken
undertaken
monitoring of AQA Strategic Plan
4.3 Approval of requested annual grant
Annual grant
Annual grant
Annual grant
Annual grant
by Vice-Chancellors
approved
to ensure
approved as
approved as
financial
sought
sought
sustainability
of AQA
approved as
sought

Total budget for Academic Quality Agency for NZ Universities

$420,217
Total cost for Academic Quality Agency for NZ Universities

$431,679

For and on behalf of the board

Emeritus Professor Pat Walsh

Emeritus Professor Sheelagh Matear

Chair of the Board

Executive Director

Academic Quality Agency for New Zealand Universities

Academic Quality Agency for New Zealand Universities

Date:
19 August 2020

Date:
19 August 2020

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

27

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
FOR THE YEAR ENDED 30 JUNE 2020

Group
Group
Group
NZVCC
NZVCC
NZVCC
Note
Actual
Budget
Actual
Actual
Budget
Actual


2020
2020
2019
2020
2020
2019





Revenue









University Annual Grants

2,755,000
2,755,004
2,672,700
2,345,000
2,345,000
2,272,700
University Cost-splitting Income

200,885
0
140,264
200,885
0
140,264
University GLSNZ Contributions

0
0
65,000
0
0
65,000
Audit Fees

34,500
0
0
0
0
0
Administration Fees

51,465
54,300
53,856
51,465
54,300
53,856
Interest Revenue - Bank Term
Deposits

23,664
21,200
22,266
16,681
18,700
16,731
Rent & other services revenue

35,775
0
0
77,784
38,900
61,813
Sundry Revenue

225,980
6,000
129,237
213,323
0
121,975
Total Revenue

3,327,269
2,836,504
3,083,323
2,905,138
2,456,900
2,732,339





Less Expenditure
6
3,341,241
2,910,047
3,093,586
2,956,571
2,528,730
2,774,429





Surplus/(Deficit) for the year

($13,972)
($73,543)
($10,263)
($51,433)
($71,830)
($42,090)





Other Comprehensive Revenue and
Expense

0
0
0
0
0
0
Total comprehensive revenue and
expense for the year

($13,972)
($73,543)
($10,263)
($51,433)
($71,830)
($42,090)

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

28

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020

Group
Group
Group
NZVCC
NZVCC
NZVCC

Actual
Budget
Actual
Actual
Budget
Actual

2020
2020
2019
2020
2020
2019

$
$
$
$
$
$









Equity at start of the year
829,363
829,363
839,626
526,774
526,774
568,864





Total Comprehensive Revenue and
Expense for the year
(13,972)
(73,543)
(10,263)
(51,433)
(71,830)
(42,090)







Equity at end of the year
$815,391
$755,820
$829,363
$475,341
$454,944
$526,774

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

29

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020

Group
Group
Group
NZVCC
NZVCC
NZVCC

Actual
Budget
Actual
Actual
Budget
Actual

2020
2020
2019
2020
2020
2019
Note
$
$
$
$
$
$
Assets









Current Assets





Cash and cash equivalents
7
1,056,907
986,139
904,601
925,946
886,371
815,134
Bank Investments
8
3,453,341
3,395,532
3,394,609
3,213,440
3,161,532
3,161,532
Receivables (from exchange
transactions)
9
115,562
79,000
76,931
112,921
75,000
75,379
Recoverables (from non-exchange
transactions)
10
60,401
5,500
3,000
60,401
5,500
3,000

4,686,211
4,466,171
4,379,141
4,312,708
4,128,403
4,055,045
Non-Current Assets





Property, Plant & Equipment
11
77,617
84,971
71,071
77,617
84,971
71,071
Intangible Assets
12
31,552
18,484
63,104
30,102
17,034
60,204
JM Wealth Investment Portfolio
8
1,255,247
1,292,015
1,292,015
1,255,247
1,292,015
1,292,015

1,364,416
1,395,470
1,426,190
1,362,966
1,394,020
1,423,290





Total Assets

6,050,627
5,861,641
5,805,331
5,675,674
5,522,423
5,478,335





Liabilities









Current Liabilities





Payables (from exchange
transactions)
13
115,235
185,000
182,808
94,111
155,000
158,425
Non-exchange liabilities





Scholarship Commitments
14
17,225
0
0
17,225
0
0
Employee benefit liability
15
262,239
237,774
141,328
245,457
232,774
135,774
Income in Advance
17
382,482
150,000
161,367
382,482
150,000
161,367
GST Payment/(Refund)

4,281
42,366
2,784
7,284
39,024
8,314
CONZUL
18
19,595
36,311
36,311
19,595
36,311
36,311
Māori Staff Development
18
98,000
0
0
98,000
0
0
NZ Council of Deans of Education
18
187,468
183,553
183,553
187,468
183,553
183,553
NZ Universities Women in
Leadership
18
17,832
170,856
170,856
17,832
170,856
170,856
NZUWiL - POD Fund
18
5,897
3,811
3,811
5,897
3,811
3,811
Tertiary ICT Fund
18
118,766
118,767
118,767
118,766
118,767
118,767

1,229,020
1,128,438
1,001,585
1,194,117
1,090,096
977,178
Non-Current Liabilities





Employee benefit liability
15
5,976
11,105
8,105
5,976
11,105
8,105
Non-exchange liabilities





Scholarship Commitments
16
4,000,240
3,966,278
3,966,278
4,000,240
3,966,278
3,966,278

4,006,216
3,977,383
3,974,383
4,006,216
3,977,383
3,974,383





Total Liabilities

5,235,236
5,105,821
4,975,968
5,200,333
5,067,479
4,951,561

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

30

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION cont.
AS AT 30 JUNE 2020

Group
Group
Group
NZVCC
NZVCC
NZVCC

Actual
Budget
Actual
Actual
Budget
Actual

2020
2020
2019
2020
2020
2019
Note
$
$
$
$
$
$
Net Assets/Equity









Accumulated revenue and expense

815,391
755,820
829,363
475,341
454,944
526,774





Net assets/equity attributable to
the owners of the controlling entity

815,391
755,820
829,363
475,341
454,944
526,774





Total Net Assets/Equity

$815,391
$755,820
$829,363
$475,341
$454,944
$526,774





Total net Assets/Equity and
Liabilities

$815,391
$755,820
$829,363
$475,341
$454,944
$526,774

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

31

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS
STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 JUNE 2020

Group
Group
Group
NZVCC
NZVCC
NZVCC
Note
Actual
Budget
Actual
Actual
Budget
Actual

2020
2020
2019
2020
2020
2019


$
$
$
$
$
$
Cash Flows From Operating Activities




Interest Received

26,970
21,155
21,005
19,501
18,700
15,950
Annual Grants from Universities

2,755,000
2,755,004
2,672,700
2,345,000
2,345,000
2,272,700
Administration Fees

25,425
54,300
63,045
25,425
54,300
63,045
Audit Fees

34,500
0
2,164
0
0
0
Accumulation of Scholarship Funds

78,486
8,892
206,891
78,486
8,892
206,891
Goods and Services Tax

(11,139)
35,767
33,403
(12,410)
28,060
35,380
Other Receipts

519,798
(35,400)
334,895
550,041
(2,500)
390,444
Payments to Suppliers

(1,272,084)
(929,211)
(1,121,319)
(1,126,673)
(790,215)
(1,030,959)
Payments to Employees

(1,879,469)
(1,787,092)
(1,955,847)
(1,650,686)
(1,551,000)
(1,735,117)
Net Cash Flows from Operating Activities

277,487
123,415
256,937
228,684
111,237
218,334





Cash Flows From Investing Activities




Decrease/(Increase) in Term Deposits &
Portfolio

(82,310)
0
(46,198)
(75,000)
0
23,895
Purchase of intangible assets

0
0
(45,220)
0
0
(45,220)
Purchase of Property, Plant & Equipment

(42,872)
(40,000)
(61,498)
(42,872)
(40,000)
(61,498)
Net Cash Flows From Investing Activities
(125,182)
(40,000)
(152,916)
(117,872)
(40,000)
(82,823)





Net Increase (Decrease) In cash and cash
equivalents
152,306
83,415
104,021
110,812
71,237
135,511





Opening Cash at Beginning of Year

904,601
904,601
800,580
815,134
815,134
679,623





Closing Cash at 30 June 2020

$1,056,907
$988,016
$904,601
$925,946
$886,371
$815,134





Represented by:





Petty Cash

773

740
578

539
Bank of New Zealand Current accounts

1,056,134

903,861
925,368

814,595

7
$1,056,907

$904,601
$925,946

$815,134

The accompanying accounting policies and notes form part of and should be read in conjunction with this statement.

32

NEW ZEALAND VICE-CHANCELLORS’ COMMITTEE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTES TO THE FINANCIAL STATEMENTS

1
Reporting Entity

The reporting entity is NZVCC (the “Parent”) a public benefit entity and was established under the Education Act 1989.  NZVCC is required to prepare financial
statements in accordance with Section 153-156 of the Crown Entities Act 2004.

The consolidated financial statement for the year ended 30 June 2020 comprise of NZVCC and AQA together referred to as the ‘Group’.

2
Basis of Preparation

(a)
Statement of Compliance

The financial statements of NZVCC and the Group have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
(NZ GAAP). They comply with Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) and other applicable Financial
Reporting Standards as appropriate for Tier 2 Public Sector Public Benefit Entity (PBE) Standards, for which all reduced disclosure regime
exemptions have been adopted.

The NZVCC and the Group has elected to report in accordance with Tier 2 Public Sector PBE Standards as for the two most recent reporting
periods it has had between $2m and $30m operating expenditure.

These financial statements were authorised for issue by Mr Derek McCormack, Chair of NZVCC on 28 September 2020.

(b)
Measurement basis

The consolidated financial statements have been prepared on the historical cost basis except as indicated below:

•
Financial instruments
•
Long-term employee benefits

(c)
Functional and presentation currency

These financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar.

There has been no change in the functional currency of the Group or any significant foreign operations of the Group during the year.

3
Use of Judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimates
are revised and in any future periods affected.

(a)
Judgements
Judgements made in applying accounting policies that have had the most significant effects on the amounts recognised in the NZVCC and Group
financial statements include the following:
•
Revenue recognition non-exchange revenue
•
Intangible assets having indefinite useful lives

(b)
Assumptions and estimation uncertainties
Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 30 June 2020 include
the following:

•
Key assumptions underlying determining the recoverable amounts for impairment testing
•
Useful life, recoverable amount, depreciation method and rate
•
Likelihood and magnitude of outflows in determining recognition and measurement of provisions.

(c)
Changes in accounting estimates
There have been no changes in accounting estimates during the period.

4
Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently
by the Group, except as explained in note 5 which addresses changes in accounting policies.

33

(a)
Basis of consolidation
The Group financial statements consolidate the financial statements of the NZVCC and all entities over which the NZVCC has the power to govern
the financial and operating policies so as to obtain benefits from their activities (defined as “subsidiaries”).  The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control commences until the date that control ceases.

All subsidiaries have a 30 June reporting date and consistent accounting policies are applied.

The purchase method is used to prepare the  consolidated financial statements,  which involves adding together like terms  of  assets, liabilities,
revenue  and  expenses  on  a  line-by-line  basis.    All  transactions  and  balances  between  the  Group  are  eliminated  on  consolidation,  including
unrealised  gains  and  losses  on  transactions  between  NZVCC  and  AQA.    Where  unrealised  losses  on  intra-group  asset  sales  are  reversed  on
consolidation, the underlying asset is also tested for impairment from the Groups perspective.  Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

In the NZVCC financial statements investments in subsidiaries are stated at cost less any impairment losses.

Loss of control of a controlled entity
A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity transaction.

(b)
Foreign currency
Transactions in foreign currencies are recorded at the New Zealand rate of exchange ruling at the date of transaction.  At balance date foreign
monetary assets and liabilities are translated at appropriate closing exchange rates, and gains or losses due to currency fluctuations on these items
are included in the Financial Statements.

(c)
Revenue

Revenue from exchange transactions
Revenue  from  exchange  transactions  are  those  were  the  Group  receives  assets  or  services,  or  has  liabilities  extinguished,  and  directly  gives
approximately equal value to another entity.

Revenue from exchange transactions are recognised when the amount of revenue is earned and is reported in the financial period to which it
relates.

Grant Revenue
Grant revenue is received from the eight universities on a six monthly basis, and applied on a straight-line basis over the financial year in which it
relates.

Rendering of services
Revenue from services rendered is recognised in surplus or deficit in proportion to the stage-of-completion of the transaction at the reporting date.

Revenue from non-exchange transactions
Non-exchange transactions are those where the Group receives an inflow of resources but provides no (or nominal) direct consideration in return.

Scholarships Revenue
Scholarship  emolument  commitments  are  recognised  as  available  when  the  Committee  has  received  funding  for  the  obligation.  Scholarship
emolument commitments are recognised when invoices are paid from the universities or scholarship entitlement is confirmed by the Scholarships
Manager.  Universities receive payments from NZVCC to reimburse them for scholarship emoluments paid to scholars, who receive a scholarship,
which the university has paid to the scholar.

NZVCC Scholarship Funds Management Guidelines were introduced in October 2011 to manage scholarship cash flow requirements during the
selection  process.  Both  the  funding  received  and  the  scholarships  paid  are  excluded  from  the  Statement  of  Comprehensive  Revenue  and
Expenditure.

(d)
Employee Benefits

Short-term employee benefits
Short-term employee benefit liabilities, wages and salaries, including non-monetary benefits and annual leave are recognised when the Group has
a legal or constructive obligation to remunerate employees for services provided within 12 months of reporting date, and are  measured at the
amounts expected to be paid when the liabilities are settled on an undiscounted basis.

Retirement Leave
NZVCC’s obligation in respect of Retirement Leave is the amount of future benefits that employees have earned in return for their service in the
current and prior periods.  The obligation is calculated on an actuarial basis based on the probability of each entitled staff member remaining in
service until retirement, length of service and current age and salary.

Long Service Leave
NZVCC’s obligation in respect of long service leave is the amount of future benefits that employees have earned in return for their service in the
current and prior  periods. The  obligation is calculated on an actuarial basis based on the  probability of each staff member attaining a specific
number of years of service.  Current entitlements to long service leave are recognised at the amounts expected to be paid when liabilities are
settled on an undiscounted basis.

Long-term employee benefits
Long-term employee benefit obligations are recognised when the Group have a legal or constructive obligation to reimburse employees for services
provided beyond 12 months of reporting date.

34

Defined Contribution Plans
Obligations for contributions to defined contribution pension plans (including KiwiSaver) are recognised as an expense in surplus or deficit when
they are due.

Termination Benefits
Termination benefits are recognised as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a
formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer
made to encourage voluntary redundancy.  Termination benefits for voluntary redundancies are recognised as an expense if the Group has made
an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.  If benefits
are payable more than 12 months after the reporting date, then they are discounted to their present value.

(e)
Finance income
Interest revenue is recognised using the effective interest method as it accrues.

(f)
Financial instruments
All assets and liabilities of NZVCC and the Group, with the exception of GST, Income in advance, Prepayments, Property, Plant & Equipment and
intangible assets are financial instruments and are recognised in the Statement of Financial Position. No other financial instruments exist other
than those recognised in the Statement of Financial Position.  Revenues and expenses in relation to these financial instruments are recognised in
the Statement of Comprehensive Revenue and Expenditure.

Financial instruments are measured in accordance with the accounting policies disclosed in relation to each type of asset and liability. Unless stated,
the carrying amounts reflected in the financial statements equate to the estimated fair value of the Committee’s assets and liabilities at 30 June
2020 for each financial instrument.

Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any of the above
categories of financial assets.

Available-for-sale financial assets comprise of the JMIS Investment Portfolio.

Available-for-sale financial assets are subsequently measured at fair value with gains or losses recognised in other comprehensive revenue  and
expense.  These gains and losses, along with revenue, are then allocated to the 4 related scholarships in proportion with their investment in the
fund.

Creditors and other payables
Creditors and other payables are initially measured at fair value plus any directly attributable transaction costs and subsequently measured at
amortised cost using the effective interest method

Trade and Other Receivables
Trade and Other Receivables are recognized initially at fair value plus any directly attributable transaction costs. Subsequently, trade and other
receivables are measured at amortised cost using the effective interest method less any impairment losses.

Cash and cash equivalents
Cash includes cash on hand and funds on deposit with banks and is measured at its face value.

Deposits with a bank that have maturities of 90 days or more at acquisition are deemed to be investments.

Investments
Investments in shares classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes
therein, other than impairment loses are recognised directly in other comprehensive revenue. When an investment is derecognised, the cumulative
gain or loss previously recognised in other comprehensive revenue is transferred to surplus or deficit.

Investments held and administered on behalf of Scholarship Funds are measured and carried at market value and changes therein together with
revenue from interest and dividends are recognized directly in the Scholarship Commitments liability.

Premium (discount) on Investment
Premium or discount on investment is amortised on a straight line basis over the remaining periods before the maturity date. This policy is not
significantly different to applying the yield to maturity basis of revenue recognition.

(g)
Impairment of non-derivative financial assets
NZVCC assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.   A
financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated
future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis.  The remaining financial
assets are assessed collectively in groups that share similar characteristics. All impairment losses are recognised in surplus or deficit and reflected
in an allowance account against receivables. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. Impairment losses directly reduce the carrying amount of assets and are recognised in surplus or deficit.

(h)
Property, plant and equipment

Recognition and measurement
Property, plant and equipment are initially recognised at cost. Property, plant and equipment are recorded at cost less accumulated depreciation.
Subsequent costs are added to the carrying amount of an item of property, plant and equipment when the cost is incurred if it is probable that the

35

future economic benefits embodied with the item will flow to the entity and the cost of the item can be measured reliably. All other costs are
recognised in surplus or deficit as an expense when incurred.

Depreciation
Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic
lives. It is provided at the following rates:

Computers and Printers
33.3%SL
Office equipment, furniture and fittings
20%SL

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(i)
Intangible assets

Recognition and measurement
IT Software Development has a finite useful life. It is recorded at cost less accumulated amortisation and accumulated impairment losses. Software
is  capitalised  and  amortised  at  50%  per  annum  on  the  diminishing  value.  Costs  associated  with  developing  or  maintaining  computer  software
programs are recognised as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software
products controlled by the entity, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible
assets. Direct costs include the costs of software development employees and an appropriate portion or relevant overheads.

(j)
Impairment of non-financial assets
Property,  plant,  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 asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

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  deficit  is  recognised  in  the  surplus  and  deficit.    The  reversal  of  an  impairment  deficit  is  also  recognised  in  the
Statement of Comprehensive Revenue and Expense.

(k)
Leases
Leases where the NZVCC and the Group assume substantially all the risks and rewards incidental to ownership of the leased assets, are classified
as finance leases. All other leases are classified as operating leases.

Upon initial recognition finance leased assets are measured at an amount equal to the lower of its fair value and the present value of minimum
leased payments and a matching liability is recognized for minimum lease payment obligations excluding the effective interest expense.  Subsequent
to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to the asset.

Payments made under operating leases are recognised in surplus or deficit on a straight-line basis over the term of the lease. Lease incentives are
recognised as an integral part of the total lease expense, over the term of the lease.  Associated costs, such as maintenance and insurance, are
expensed as incurred.

(l)
Cost Accounting
The Committee reviewed and adopted the following Cost Allocation policy on 1 June 2019.  The income and expenditure has been allocated across
three cost centres utilising the following rules:

(i)
A Full Time Equivalent’s (FTE’s) Staff Cost Allocation calculation will be used in this policy. “FTE’s Staff cost allocation percentage
distribution of Office Support or other FTE’s Staff working across cost centres plus the FTE’s Staff working in each cost centre as at 1
July each financial year “

(ii)
All income or expenditure will be allocated utilising the following rules-

a)
All project costs with offsetting income, or specific budget requests to Vice-Chancellors will be attributed directly to the cost centre
responsible.
b)
All  baseline  expenditure  will  be  allocated  to  Policy  and  using  the  FTE’s  Staff  Cost  Allocation  Percentages  will  be  calculated  for
presentation in the year-end accounts into the respective cost centres.

(iii)
Allocation of the income from Universities Annual Grants will be allocated each year based on the FTE’s Staff Cost Allocation
Percentages.

(iv)
All directly attributable income for projects or specific budget requests to Vice-Chancellors will be allocated to the cost centre
responsible.

(m)
Budget
The budget figures for NZVCC and AQA are those approved by the NZVCC Committee at their June 2019 meeting.

The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies
adopted by the Committee for the preparation of the financial statements.

(n)
Goods and Services Tax
The financial statements are exclusive of GST except for Trade Payables and Trade Receivables which are GST inclusive.

36

(o)
Taxation
The NZVCC and the Group is a statutory body and is registered with the Charities Commission under the Charities Act 2005 and consequently is
exempt from income tax.

(p)
Statement of Cash Flows
The statement of cash flows has been prepared using the direct approach method.

Cash includes cash on hand and deposits held at call with banks.

Operating activities includes cash received from all revenue sources of the NZVCC and the Group including annual grants, interest, accumulation of
scholarship funds and administration fees.

Investing activities are those activities relating to the acquisition and disposal of non-current assets.

Financing activities comprise the change in equity and debt structure of the NZVCC and the Group.

5
Changes in accounting policy

The accounting policies applied in these financial statements are the same as those applied to NZVCC and the Group’s financial statements as at the year
ended 30 June 2019.

6
Expenses

Group
Group
Group
NZVCC
NZVCC
NZVCC

Actual
Budget
Actual
Actual
Budget
Actual

2020
2020
2019
2020
2020
2019

Note
$
$
$
$
$
$





ACC Levy

3,290
4,650
2,665
3,099
4,000
2,665
ANZCCART-Contribution

40,000
40,000
40,000
40,000
40,000
40,000
Audit Fee
22
26,903
26,525
26,230
16,810
16,760
16,340
Accountancy

18,493
11,500
10,625
9,468
4,500
3,800
Advertising

113
9,000
9,623
0
8,000
5,155
Amortisation Intangible Assets

31,552
44,620
42,659
30,102
43,170
39,759
AQA Chairman & Board Honoraria

32,652
31,610
23,305
0
0
0
Bank Fees

2,074
1,848
1,578
1,651
1,500
1,463
Computer Maintenance and Training

120,020
92,404
81,118
119,674
91,400
79,305
Conference and Committee
Expenses

94,939
59,250
65,575
81,481
47,000
53,772
Consultancy Fees

317,468
136,200
279,037
293,047
113,200
264,666
Depreciation Computer Equipment

26,427
25,000
20,380
26,427
25,000
20,380
Depreciation Office Equipment,
Furniture & Fittings

9,899
1,100
9,895
9,899
1,100
9,895
GLSNZ

0
0
65,000
0
0
65,000
Insurance

10,379
11,300
8,024
4,816
5,000
3,079
Interest

141
0
1
72
0
0
IRD Penalties

3
0
64
0
0
0
Legal Advisory Costs

0
48,000
3,018
0
48,000
3,018
Legal Costs

28,670
2,000
6,000
28,670
2,000
6,000
Occupancy Costs

18,918
20,000
21,256
18,918
20,000
21,256
Office Expenses and Administration

73,401
91,092
93,633
60,010
75,900
80,975
Occupancy Rent

156,479
165,000
162,623
156,479
161,800
162,623
Photocopier Lease

10,382
11,400
11,400
10,382
11,400
11,400
Publications and Reports

5,598
29,000
31,321
5,598
29,000
31,321
Salaries

1,966,336
1,793,272
1,821,248
1,735,842
1,570,000
1,627,189
Superannuation Contributions
(including KiwiSaver)

88,751
85,796
86,477
79,596
77,000
78,733
Staff Training

8,573
19,000
13,748
8,573
18,000
13,118
Telephone, Tolls and Faxes

17,772
11,480
16,580
17,373
11,000
16,189
Travel and Accommodation

232,008
139,000
140,503
198,584
104,000
117,328

$3,341,241
$2,910,047
$3,093,586
$2,956,571
$2,528,730
$2,774,429

The Universities NZ budget was set at the start of the financial year. The budget figure is not revised as the year proceeds, however the eight universities do
occasionally commit to additional one-off projects after the budget is set and provide additional funding for them.  In this year, an additional $414,208 was
provided for one-off projects This additional amount can be added to the budget figure to more accurately understand the difference between Universities
NZ’s costs and budget.

37

7
Cash & Cash Equivalents

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Bank of New Zealand



  Current Account (0.10%)
105,256
87,851
89,841
71,147

Autocall Account (0.10%)
950,878
816,010
835,527
743,448

1,056,134
903,861
925,368
814,595
Petty
Cash

773
740
578
539

$1,056,907
$904,601
$925,946
$815,134

8
Investments

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$
Current Investments



  Deposits with trading banks



  ASB Bank (Average Interest Rate 2.65%)
900,000
900,000
900,000
900,000
BNZ Bank (Average Interest Rate the Group 2.68%,

NZVCC 2.75%)
2,514,432
2,432,123
2,275,000
2,200,000

Interest Accrued
38,909
62,486
38,440
61,532

$3,453,341
$3,394,609
$3,213,440
$3,161,532




Term Investments



  JMIS Portfolio



  Financial assets held for sale:



  Investments in listed companies
903,218
862,328
903,218
862,328

Investments in capital notes
70,447
143,591
70,447
143,591

Investments in bonds
281,582
211,096
281,582
211,096

Investments in New Zealand fixed interest
0
75,000
0
75,000

$1,255,247
$1,292,015
$1,255,247
$1,292,015




Total Investments
$4,708,588
$4,686,624
$4,468,687
$4,453,547

The JMIS investment portfolio and deposits placed in banks have been classified as investment held and administered on behalf of Scholarship Funds. Changes
in market value and revenue from interest and dividends are recognised directly in Scholarship Commitments liability as disclosed in Note 16.

9
Receivables –exchange transactions

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Scholarships - exchange transactions
0
0
0
0
Sundry and miscellaneous exchange revenue
101,030
37,801
101,575
38,386
Prepayments

14,532
39,130
11,346
36,993

$115,562
$76,931
$112,921
$75,379

10
Receivables – non-exchange transactions

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Scholarships - non-exchange transactions
60,401
3,000
60,401
3,000

$60,401
$3,000
$60,401
$3,000

38

11
Property, Plant & Equipment

Group
NZVCC
Group
Office
NZVCC
Office

Group
NZVCC
Computer
Equipment
Computer
Equipment
Total
Total
Equipment
and
Equipment
and
Furniture
Furniture

$
$
$
$
$
$
Cost or valuation




Balance at 1 July 2018
84,300
22,062
106,362
84,300
22,062
106,362
Additions
20,570
40,928
61,498
20,570
40,928
61,498
Disposals
(7,121)
(5,494)
(12,615)
(7,121)
(5,494)
(12,615)
Balance at 30 June 2019
97,749
57,496
155,245
97,749
57,496
155,245





Balance at 1 July 2019
97,749
57,496
155,245
97,749
57,496
155,245
Additions
42,872
0
42,872
42,872
0
42,872
Disposals
(58,382)
0
(58,382)
(58,382)
0
(58,382)
Balance at 30 June 2020
82,239
57,496
139,735
82,239
57,496
139,735





Accumulated depreciation and impairment




losses
Balance 1 July 2018
58,923
7,591
66,514
58,923
7,591
66,514
Depreciation expense
20,380
9,895
30,275
20,380
9,895
30,275
Elimination on disposal
(7,121)
(5,494)
(12,615)
(7,121)
(5,494)
(12,615)
Balance at 30 June 2019
72,182
11,992
84,174
72,182
11,992
84,174





Accumulated depreciation and impairment




losses
Balance 1 July 2019
72,182
11,992
84,174
72,182
11,992
84,174
Depreciation expense
26,427
9,899
36,326
26,427
9,899
36,326
Elimination on disposal
(58,382)
0
(58,382)
(58,382)

(58,382)
Balance at 30 June 2020
40,227
21,891
62,118
40,227
21,891
62,118





Carrying amounts




At 1 July 2018
25,377
14,471
39,848
25,377
14,471
39,848
At 30 June / 1 July 2019
25,567
45,504
71,071
25,567
45,504
71,071
At 30 June 2020
42,012
35,605
77,617
42,012
35,605
77,617

The additions were to Computer Equipment $42,872 (2019, $25,270). Costs have reduced by items that had fully depreciated during the financial year on 1
July 2019.

The related depreciation expense for each category has been disclosed separately in note 6.

39

12
Intangible Assets

Group
NZVCC

Group
NZVCC
IT Software
IT Software
Total
Total
Development
Development

$
$
$
$
Cost or valuation



Balance at 1 July 2018
190,112
190,112
176,192
176,192
Additions-Developed
45,220
45,220
45,220
45,220
Disposals
0
0
0
0
Balance at 30 June 2019
235,332
235,332
221,412
221,412




Balance at 1 July 2019
235,332
235,332
221,412
221,412
Additions-Developed
0
0
0
0
Disposals
0
0
0
0
Balance at 30 June 2020
235,332
235,332
221,412
221,412




Accumulated Amortisation and impairment losses



Balance 1 July 2018
129,569
129,569
121,449
121,449
Amortisation expense
42,659
42,659
39,759
39,759
Elimination on disposal
0
0
0
0
Balance at 30 June 2019
172,228
172,228
161,208
161,208




Accumulated Amortisation and impairment losses



Balance 1 July 2019
172,228
172,228
161,208
161,208
Amortisation expense
31,552
31,552
30,102
30,102
Elimination on disposal
0
0
0
0
Balance at 30 June 2020
203,780
203,780
191,310
191,310




Carrying amounts



At 1 July 2018
60,543
60,543
54,743
54,743
At 30 June / 1 July 2019
63,104
63,104
60,204
60,204
At 30 June 2020
31,552
31,552
30,102
30,102

There were no additions to the IT Software during this financial year (2019, $45,20).

The related amortisation expense has been disclosed separately in note 6.


40

13
Payable – exchange transactions

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Exchange payments from scholarship funds
0
0
0
0
Sundry trade other payables
115,235
182,808
94,111
158,425

$115,235
$182,808
$94,111
$158,425

14
Payable – non-exchange transactions

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Non-exchange payments from scholarship funds
17,225
0
17,225
0

$17,225
$0
$17,225
$0

15
Employee benefit Liability

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$
Long Term Employee entitlements



Retirement Leave
0
0
0
0
Long Service Leave
5,976
8,105
5,976
8,105
Total Long Term Employee entitlements
5,976
8,105
5,976
8,105




Short Term Employee entitlements



Salary Accrual
130,489
64,063
120,246
55,706
Employer Superannuation Contribution on Salary Accrual
7,786
2,802
7,376
2,504
Annual Leave
87,329
42,418
81,435
45,400
Employer Superannuation Contribution on Annual Leave
3,250
1,362
3,015
1,481
Long Service Leave
14,052
12,912
14,052
12,912
Retirement Leave
19,333
17,771
19,333
17,771
Total Short Term Employee entitlements
262,239
141,328
245,457
135,774




Total Employee Entitlements
$268,215
$149,433
$251,433
$143,879

16
Scholarship Commitments

2020
2019


$
$

Balance at beginning of the year
3,966,278
3,756,387

Plus:
Interest and Dividend Revenue
145,340
141,510

Funding
877,101
1,139,307

1,022,441
1,280,817


4,988,719
5,037,204

Less:
Scholarships Allocated
946,117
1,095,069


4,042,602
3,942,135

Allocation of fair value change
(42,362)
24,143

Balance at end of the year
$4,000,240
$3,966,278

41

For the Group and NZVCC
2020
Fair Value
Funds
Funds
2019
Represented by:
$
Change
Received
Allocated
$
Non-Interest Bearing Scholarships



Asia 2000
238

0
0
238
Commonwealth Scholarship
23,212

0
0
23,212
Freyberg
116,501

70,000
68,500
115,001
Kitchener
0

500
500
0
Miscellaneous Scholarship Fund
2,971

0
0
2,971
NZ University Scholarship
743

0
0
743
The Hydrological Sciences Fellowship
3,289

0
0
3,289
Unicare Fund
2,672

0
0
2,672
Interest Bearing Scholarships



Auckland Council Economics
25

3,008
3,000
17
Auckland Medical Aid Trust Scholarship
9,582

8,060
7,835
9,357
AUS Crozier Scholarship
2,517

76
0
2,441
Bank of New Zealand Scholarship
65,385

1,975
0
63,410
Bing's Scholarship
5,225

198
2,300
7,327
Bruce Cronin Scholarship
5,362

10,107
10,000
5,255
Buddle Findlay Centennial Scholarship
7,780

235
0
7,545
Children's Health Camps Scholarship
2,774

84
0
2,690
Claude McCarthy Fellowship
222,381

115,907
25,568
132,042
Dick & Mary Earle Scholarship
12,056

4,955
34,270
41,371
Douglas Myers
(5,955)

0
5,927
(28)
Edward & Isobel Kidson Scholarship
1,193,295
(13,980)
55,121
36,513
1,188,667
E W File Scholarship
20

2,005
2,000
15
Edna Waddell Scholarship
16,451

20,523
22,500
18,428
Electoral Commission Scholarship
105

3
0
102
Georgetti Scholarship
216,262

311,645
239,682
144,299
Girdlers
(6,374)

247
6,649
28
Gordon Watson Scholarship
782,696
(13,755)
35,953
41,193
801,691
Henry Kelsey Scholarship
3,205

30,097
30,000
3,108
J H Aspinall Scholarship
8

0
0
8
Judith Clark Fellowship
395

7,138
11,126
4,383
Kia Ora Foundation
43,031

72,052
85,856
56,835
Kiwi Music Scholarship
711

70,105
70,000
606
Kiwirail Group Ltd
9,233

8,222
13,000
14,011
L B Wood Traveling Scholarship
2,256

6,075
6,000
2,181
Mervyn Sterling Memorial Scholarship
7,787

2,216
1,000
6,571
NZ Association of Economists
136

4
0
132
NZFPA Alice Bush Scholarship
4,217

128
0
4,089
NZLF Ethel Benjamin
1,262

15,258
40,000
26,004
Sullivan Scholarship
34,540

1,103
3,260
36,697
PEANZ
845

26
0
819
Peter Windle Scholarship
23

0
0
23
Pukehou Pouto Scholarship
551,200
(5,761)
21,766
17,200
552,395
Resource Management Law Assn
5,674

172
0
5,502
Reynolds Scholarship
541

100
10,000
10,441
Rhodes Scholarship
3,545

16,008
12,463
0
Road Safety Research Scholarship
7,337

221
0
7,116
Robertson
(9,381)

0
9,376
(5)
Seafarers Union Scholarship
3,792

5,067
5,000
3,725
Shirtcliffe Fellowship
535,124
(8,866)
24,051
16,083
536,022
Spark Scholarship
616

65,175
65,000
441
Te Putea Awhina Akonga Māori A Te Manatu Waka
56,131

28,182
0
27,949
Todd Foundation Awards for Excellence
19,753

2,489
39,625
56,889
Tower Undergraduate Scholarship
19,295

583
0
18,712
Transit NZ Post Graduate Scholarships
19,428

587
0
18,841
Woolf Fisher
323

5,014
4,691
0

$4,000,240
($42,362)
$1,022,441
$946,117
$3,966,278

Interest earned on the investments held as non-interest bearing scholarships has been credited to the NZVCC in lieu of charging administration fees.
Interest totalling $76,366 (2019, $76,307) was earned on investments represented by interest-bearing scholarship funds.  This interest has been apportioned
to each respective Scholarship Fund by applying an average interest rate earned for each month to the closing balance of the Scholarship Fund for that month.

42

Revenue, expenditure and fair value change on investments in the JMIS Portfolio are allocated to the 4 related scholarships in proportion with their investment
in the fund.  (Gordon Watson 32.47%, Edward & Isobel Kidson 33%, Pukehou Pouto 13.6% and Shirtcliffe Fellowship 20.93%).   Interest & Dividends earned
totalled $68,974 (2019, $65,204) and -$42,362 (2019, $24,143) represented the fair value change.

Administration fees are charged to all interest-bearing scholarship funds by the Committee for annual services rendered.

The  Committee  has  assumed  the  obligation  for  paying  out  the  above  scholarships.    The  period  of  payment  will  depend  on  the  timing  of  approval  of  the
applications.

All scholarship commitments are non-current liabilities until all restrictions or stipulations of the scholarship award are met.  See note 14 for current non-
exchange payments from scholarship funds.

17
Income in Advance

The Committee received funding for the Universities NZ Work Programme, AQA Review and Future Focus Programme in the 2019/20 year that is ongoing as
at 30 June 2020 and that the Committee has an obligation to continue in the 2020/21 year.

The liability held in income in advance is unspent income as at 30 June 2020 and will have matching expenditure in the 2020/21 year.

18
Specialised Funds

Council of New Zealand University Librarians (CONZUL)
NZVCC administers the CONZUL funds on behalf of CONZUL. Funds are received from the eight universities to fund collaborative projects.

Māori Staff Development
NZVCC has undertaken to provide financial administration services on behalf of the Māori Staff Development Fund.

NZ Council of Deans of Education
The NZ Council of Deans of Education received funds as a result of the winding up of the ACENZ and NZVCC has agreed to administer the funds on their behalf.

NZ Universities Women in Leadership Programme (NZUWiL)
NZVCC has undertaken to provide financial administration services on behalf of the NZ Universities Women in Leadership programme.

New Zealand Universities Women in Leadership Discipline Pod Programme (NZUWiL Pod funds)
NZVCC has undertaken to provide financial administration services on behalf of the NZUWiL Discipline Pod programme.

Tertiary ICT Conference Fund
NZVCC has undertaken to provide financial administration services on behalf of the Tertiary ICT Conference Fund.

19
Separate Funds

The Rhodes Scholarship Fund operates a separate bank/investment account, and the Fund balance is not included in the NZVCC’s  Statement of Financial
Position $0 (2019 $441).  The Rhodes Scholarship separate funds account was closed in June 2020 and this scholarship will be accounted for in the same way
as all other NZVCC scholarships from 1 July 2020.  The balance of the Rhodes Scholarship separate funds account was transferred to NZVCC account and shows
as a scholarship liability as at 30 June 2020.

20
Financial Instruments

The carrying amounts of financial assets and financial liabilities in each of the NZ IAS 39 categories are as follows:

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$
Financial Assets



Loans and receivables



Cash and cash equivalents
1,056,907
904,601
925,946
815,134

Bank Term Investments
3,453,341
3,394,609
3,213,440
3,161,532

Receivables - exchange transactions
115,562
76,931
112,921
75,379

Recoverables - non-exchange transactions
60,401
3,000
60,401
3,000
Available for Sale



  JMIS Investment Portfolio
1,255,247
1,292,015
1,255,247
1,292,015




Financial Liabilities



Financial liabilities measured at amortised cost



  Trade and Other payables
115,235
182,808
94,111
158,425

Fair Value Hierarchy Disclosures

43

For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy:

Quoted market price (level 1) - Financial instruments with quoted prices for identical instruments in active markets.

Valuation technique using observable inputs (level 2) - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for
identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Valuation techniques with significant non-observable inputs (level 3) - Financial instruments valued using models where one or more significant inputs are not
observable.

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statement of financial position.

For NZVCC and the Group


Valuation technique
Significant
non-
Quoted
Observable
observable

Total
market Price
inputs
inputs

$
$
$
$



30 June 2019


Financial Assets


JMIS Investment Portfolio
1,292,015
1,292,015
0
0



30 June 2020


Financial Assets


JMIS Investment Portfolio
1,255,247
1,255,247
0
0

There are no transfers between the different levels of the fair value hierarchy.

Credit Risk
Financial instruments which potentially subject NZVCC and the Group to credit risk principally consist of Cash and Cash Equivalents and Trade and Other
Receivables.

The maximum exposures to credit risk at balance date were:

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Cash on
Hand

773
740
578
539
Bank
Balances

1,056,134
903,861
925,368
814,595
Receivables - exchange transactions
115,562
76,931
112,921
75,379
Recoverables - non-exchange transactions
60,401
3,000
60,401
3,000
Investments

1,255,247
1,292,015
1,255,247
1,292,015
Bank
Deposits

3,453,341
3,394,609
3,213,440
3,161,532
BNZ Credit Cards
52,500
57,500
44,500
49,500

The above maximum exposures are net of any recognised provision for losses on these financial instruments. No collateral is held on the above amounts.

Counterparty risk is minimized by spreading investments over registered New Zealand banks.

Concentrations of Credit Risk
The NZVCC and the Group is not exposed to any concentration of credit risk.

Interest Rate Risk
The NZVCC and the Group is primarily a short term investor in on-call funds and term deposits not exceeding one year.  The interest rate risk exposure on
deposits pertains to fluctuations in market rates of interest.

The NZVCC and the Group seeks to manage movements in investment interest rates by maintaining a balanced portfolio.

44

Foreign Exchange Risk
Transactions in foreign currencies are recorded at the New Zealand rate of exchange ruling at the date of transaction.  At balance date foreign monetary assets
and liabilities are translated at appropriate closing exchange rates, and gains or losses due to currency fluctuations on these items are included in the Financial
Statements.

21
Operating leases

The NZVCC entered into a non-cancellable lease for Level 9, 142 Lambton Quay from Zircon Properties Ltd with effect from 1 August 2009 the lease has been
renewed for a further 6 year term from 1 August 2018. The NZVCC entered into a photocopier lease with Konica Minolta in December 2019. The total lease
commitments are as follows:

Group      2020
Group      2019
NZVCC    2020
NZVCC    2019

$
$
$
$




Not later than one year
168,788
168,922
168,788
168,922
Later than one year but not later than five years
525,124
640,536
525,124
640,536
Later than five years
0
13,127
0
13,127
Total lease commitments
$693,912
$822,585
$693,912
$822,585

The total expense for the year relating to the payment of leases was $162,036 (2019, $169,539).

22
Auditors’ Remuneration

The auditor of NZVCC and AQA is BDO Wellington on behalf of the Auditor-General.

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




Audit of the Financial Statements
25,553
24,880
15,960
15,490
Office Audit General overhead charge
1,350
1,350
850
850
Total

$26,903
$26,230
$16,810
$16,340

23
Related Party

The AQA is a related party by virtue of the fact that the NZVCC has the capacity to appoint all members of the Governing body of the AQA.

During the year NZVCC applied for and received $410,000 (2019, $400,000) of University Annual Grants on behalf of the AQA. These funds were then paid to
the AQA upon receipt of an invoice.

NZVCC provided serviced offices and provided other administrative services to AQA during the year and received $42,009 (2019, $61,813) revenue for these
services.

The Universities are a related party by virtue of the fact that they provide the majority of the funding for the NZVCC. During the year NZVCC applied for and
received from the universities the following in University Annual Grants.

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




The University of Auckland
595,894
577,403
507,213
490,988
Auckland University of Technology
330,316
325,915
281,159
277,138
The University of Waikato
220,621
237,402
187,788
201,872
Massey University
337,497
327,994
287,270
278,906
Victoria University of Wellington
351,581
312,104
299,258
265,394
University of Canterbury
307,628
301,144
261,847
256,074
Lincoln University
149,818
146,156
127,522
124,282
University of Otago
461,645
444,582
392,943
378,046
Total

$2,755,000
$2,672,700
$2,345,000
$2,272,700

45

The Universities provided funding for the Graduate Longitudinal Study New Zealand (GLSNZ).  The University of Otago is undertaking this study.  These funds
are paid to the University of Otago upon receipt of an invoice.

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




The University of Auckland
0
14,042
0
14,042
Auckland University of Technology
0
7,926
0
7,926
The University of Waikato
0
5,774
0
5,774
Massey University
0
7,977
0
7,977
Victoria University of Wellington
0
7,590
0
7,590
University of Canterbury
0
7,324
0
7,324
Lincoln University
0
3,555
0
3,555
University of Otago
0
10,812
0
10,812
Total

$0
$65,000
$0
$65,000

The  Universities  Cost-splitting  income  provides  funding  for  specific  projects.    In  2020  calendar  year  $170,000  additional  funding  was  received  from  the
Universities for the Universities NZ Enhanced Work Programme for the 2020 calendar year.

Group
Group
NZVCC
NZVCC

2020
2019
2020
2019


$
$
$
$




The University of Auckland
47,973
36,726
47,973
36,726
Auckland University of Technology
26,965
20,730
26,965
20,730
The University of Waikato
19,264
15,100
19,264
15,100
Massey University
27,233
20,863
27,233
20,863
Victoria University of Wellington
26,488
19,852
26,488
19,852
University of Canterbury
24,961
19,155
24,961
19,155
Lincoln University
12,124
9,296
12,124
9,296
University of Otago
36,991
28,278
36,991
28,278
Total

$221,999
$170,000
$221,999
$170,000

The University of  Auckland provides assistance with Copyright issues and NZVCC pays for  these services upon receipt of an invoice  2020,  $27,750  (2019,
$37,000).

Key Management employees received the following forms of compensation during the course of the year.

Group
FTE's
Group
FTE's
NZVCC
FTE's
NZVCC
FTE's

2020
2020
2019
2019
2020
2020
2019
2019


$

$

$

$







Key Management Personnel
765,413
4
721,235
4
546,827

520,971
3

7
    7
3
0
AQA Board Honoraria
0
0
32,652
People
23,305
People
People
People

798,065

744,540

546,827

520,971


24
Commitments and contingencies

Commitments
There are no capital commitments at 30 June 2020. (2019 Nil)

Contingent liabilities
There are no contingent liabilities at 30 June 2020. (2019 Nil)

25
Events after reporting date

There were no significant events after the balance date.

26
COVID-19

The COVID-19 pandemic has not had a significant impact on the 2020 financial year, as staff were able to continue their work remotely. COVID-19 is not
expected to impact NZVCC operationally going forward, however there will be a shift in focus towards mitigating the effects of COVID-19 on international
education revenue and on other related areas that have reduced the ability of New Zealand universities to be part of an international research system.

46