Tertiary Education Commission
Te Amorangi Mātauranga Matua
National Office
44 The Terrace
PO Box 27048
Wellington, New Zealand
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Contents
International Aviation Academy of New Zealand Limited (Edumis 8589)
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Part One: Summary of Audit Results
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Overall recommendation
4
Audit Ratings
4
Key findings and recommendations
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Part Two: Key findings and recommendations
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Part Three: Other Audit Findings
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Financial Viability Assessment
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Minimum Prudential Financial Standards
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Part Four: Audit Process Overview
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Purpose of the audit
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Scope of the audit
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Overview of International Aviation Academy of New Zealand Limited
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Audit process overview
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Part Five: TEO Corrective Actions
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Part Three: Other Audit Findings
Further findings of the audit are set out below.
Financial Viability Assessment
8589-International Aviation Academy of NZ Ltd
Minimum
Prudential
Risk assessment
Financial
(Based on your financial statements for the years shown)
Standards s9(2)(b)(ii)
The PTE’s financial year end is 31 March. The 2020 financial reports and 2021 forecast were due on
31 August 2020. Because of the COVID-19 impacts many financial reports arrived late. The PTE requested
an extension to 30 September, then a further extension until 9 October. The reports were received by the
TEC on 7 October 2020.
s9(2)(b)(ii)
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The PTE receives Equity funding, Fees-free Payments, and Student Achievement Component Level 3 and
above funding from the TEC.
Excluding Fees-free funding the TEC funded $580,611 in 2018, $590,557 in 2019, and $651,445 in 2020
(including $26,534 under the Funding Guarantee). It is funded $610,414 in 2021 (excluding Fees-free).
IAANZ delivered 100% in 2018 and in each successive year.
IAANZ provided 47.9 TEC-funded EFTS in 2018, 48.0 in 2019 and 58.28 in 2020. It is funded for 48.3 EFTS in
2021.
The August 2021 SDR shows SAC3+ delivery is down from 55.2 in 2020 to 44.9 in 2021. Delivery to
international students is also down from 82.8 in 2020 to 37.8 in 2021.
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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 following:
> 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 arrangements
> 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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Part Five: TEO Corrective Actions
There are no key findings or corrective actions required.
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