Tertiary Education Commission
Te Amorangi Mātauranga Matua
National Office
44 The Terrace
PO Box 27048
Wellington, New Zealand
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Contents
School of Business Limited (Edumis 7826)
4
Part One: Summary of Audit Results
4
Overall recommendation
4
Audit Ratings
4
Key findings and recommendations
4
Part Two: Key findings and recommendations
5
Part Three: Other Audit Findings
15
Financial Viability Assessment
15
Minimum Prudential Financial Standards
15
Part Four: Audit Process Overview
17
Purpose of the audit
17
Scope of the audit
17
Overview of School of Business Limited
18
Audit process overview
18
Part Five: TEO Corrective Actions
19
Corrective Actions
19
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Part Three: Other Audit Findings
Further findings of the audit are set out below.
Financial Viability Assessment
7577-School of Business Limited
Minimum
Prudential
Financial
Standards
Risk assessment
(Based on your financial statements for the years shown)
s9(2)(b)(ii)
The PTE’s financial year end is 31 December. The 2020 financial reports and 2021 forecast were due on
31 May 2021. On 16 June their auditors requested an extension to 15 July 2021 s9(2)(a)
within its
firm. We agreed to this extension. The reports are now outstanding on 21 July 2021.
s9(2)(b)(ii)
s9(2)(b)(ii)
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The PTE receives Fees-free Payments and Student Achievement Component – Provision at Level 3 and
above funding.
Excluding Fees-free payments, the TEC funded $238,128 in 2018, $241,260 in 2019, and $245,113 in 2020
(including a Debt Write-off of $216,245). It is funded $249,035 in 2021.
It delivered 38.4 TEC-funded EFTS in 2018 (100.5% delivery), 38.3 EFTS in 2019 (100.2% delivery), and 4.1
EFTS in 2020. It is funded for 40 EFTS in 2021.
The April SDRs show continuously declining delivery. In April 2019 there was 16.5 EFTS, in April 2020 there
was 4.3 EFTS and April 2021 shows 1.2 EFTS (although this is overstated due to one invalid enrolment and a
second enrolment where the commencement date was incorrectly reported).
Actual delivery in the April 2021 SDR was 0.1683 EFTS for $1,096 (GST exclusive). s9(2)(g)i)
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Part Four: Audit Process Overview
Purpose of the audit
The purpose of the audit was to provide assurance that your organisation is complying with the
Education and Training Act 2020 and conditions imposed on your funding. This audit is part of our ongoing
monitoring of tertiary education organisations (TEOs).
This audit used a sample-based approach and reviewed a limited scope of the applicable funding conditions
and other requirements. As such, despite our best efforts, some non-compliance may remain undetected
and the audit does not provide complete assurance of historical, current or future compliance.
Non-detection of non-compliance does not make that practice compliant, and will not restrict the TEC from
taking action under the Education and Training Act 2020 or from recovering funding in the future if
non-compliance is later detected. Please refer to the audit guidelines for more information on the inherent
limitations of an audit.
Our audit focus wil be on assisting TEOs in achieving their objectives through wel -reasoned audits,
evaluations and analyses of the business viability and education outcomes for students.
Scope of the audit
TEC’s monitoring function is set out in section 409(1)(h) of the Education and Training Act 2020, which
provides that the TEC's functions are to "
monitor the performance of organisations that receive funding
from the Commission including by measuring performance against specified outcomes”.
The scope of the audit was aligned to the performance commitments in the Investment Plan and the
associated funding obligations between the TEC and your organisation. The scope was outlined in the audit
arrangements letter. TEC Audit Guidelines were also provided to help you understand how TEC undertakes
audits and what to expect during the audit.
The scope of the audit was outlined in the audit arrangements letter. This included the fol owing:
> Your current registration and accreditation status for funding eligibility
> Your organisation’s systems and processes for reporting student data through the Single Data Return,
including reporting enrolments, student achievement and withdrawals
> Compliance with your funding conditions for each fund:
- Student Achievement Component – Provision at Level 3 and above
- Fees-free funding
> Compliance with the Annual Maximum Fee Movement policy relating to fees and course costs
> The refund of any fees that have been overcharged (if applicable)
> Compliance with the Compulsory Student Services Fee (if applicable)
> Whether your organisation has offered any inducements or benefits to students
> Responsibility for any subcontracting requirements
> Your programmes and qualifications
> Your organisation’s process for maintaining student records as required by clause 13(1) of Schedule 18
of the Education and Training Act 2020 (for on-plan funding under section 425), and 25(1) of Schedule
18 (for off-plan funding under section 428).
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