A1007174
Tertiary Education Commission
the
1982
Audit Report
Act
under
Wairoa Waikaremoana Māori Trust Board
trading as Whakato te Mātauranga
Youth Guarantee Funding
Released
Information
Official
Edumis Number: 9270
Audit Dates: 2 – 4 August 2016
Draft Report Release Date 9 September 2016
Final Report Release Date: 26 September 2016
1 Purpose
The purpose of the audit was to provide assurance that Wairoa Waikaremoana
Māori Trust Board trading as Whakato te Mātauranga (Whakato) is meeting the
Investment Plan Funding Conditions as referred to in the Tertiary Education
Commission (TEC) letter of approval dated 4 December 2014 and 21 December
2015. The funding approved includes Youth Guarantee funding.
2 Scope
The scope of the audit was aligned to the performance commitments in the TEC
Investment Plan and the associated funding obligations between the TEC and
Whakato. The scope was outlined in the audit arrangements letter.
The focus areas included:
The reporting through the Single Data Return, including recording enrolments
and withdrawals.
The financial support for the equipment infrastructure required to deliver the
approved qualifications.
Whether inducements or benefits have been provided to tudents.
Responsibility for subcontracting arrangements.
Compliance with the requirements in Part 18 of the Education Act 1989.
under the
Any other matters.
An audit is a snapshot of an organisation’s performance at a particular point in
time and may not, as such, provide a view of ongoing compliance. An audit is
based on sampling and issues may remain undetected. The outcome of this audit
wil contribute to decisions made by the TEC relating to current and future
funding.
3 Background
This audit is part of the TEC s ongoing monitoring of Tertiary Education
Released
Organisations.
Whakato is a Private Training Establishment based in Wairoa and Hastings
offering Youth Guarantee programmes that are funded by the TEC.
The organisation receives funding for the following:
NCEAL1 National Certificate in Educational Achievement (Level 1)
NCEP1T Construction and Infrastructure (Level 2)
Official Information Act 1982
NCEP3T Primary Industries Trade (Level 2)
NCEP5N Social and Community Services Non-Trade (Level 2).
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4 Key Findings
The key findings were:
Enrolment forms were signed by the student but not by the provider.
There was no offer of placement letter provided to students.
There were five invalid enrolments for funding purposes where there was no
evidence of domestic student status.
Students returning to complete their programme of study following end of year
statutory holidays were required to complete a second enrolment form. (This is
duplication of information already held and is not necessary unless the student
is commencing a second programme that they have not been enrolled in).
At the Hastings and Wairoa sites all programmes offered are for a period of 40
weeks. This does not match with the programme length detailed in the NZQA
approval letter that provides for 27 teaching and three recess weeks for all
TEC-funded programmes.
The NZQA approval document specifies the teaching hours and self-directed
study required. There was under-delivery of teaching hours at the Hastings
site.
5 Recommendations
under the
The main recommendations are:
Enrolment forms are signed by both the student and the PTE.
Offer of placement letters are provided to all students.
Review and confirm there is evidence of domestic status for all students
reported in the 2016 Single Data Returns.
Discontinue the practice requiring a student to complete a second enrolment
fo m when they are returning from end of year statutory holidays (unless the
student is enrolling in a new programme of study).
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Review current programme delivery and ensure that all programmes are
timetabled in accordance with the programme approval letter from NZQA.
(Refer to the
Definition of Significant Change in funding condition
YG006: TEO
to meet requirements when making changes to a qualification).
Whakato to confirm the management process for monitoring programme
delivery. The TEC should be advised if Whakato is applying to NZQA for a
significant change to any of its funded programmes.
Official Information Act 1982
4
Withdrawal of students
In the sample of Youth Guarantee records reviewed no student
formally withdrew from their programme of study but there were a
number who ceased attending. Whakato records student attendance
and undertakes pastoral care follow up.
Quality Management System
Whakato has a quality management system that at the time of the
audit was in the process of being updated. It is suggested that an
administrative section is added covering policy on:
a. TEC enrolment, withdrawal and funding conditions
b. Controls relating to Single Data Return reporting.
In the sample of student records reviewed there were variations
between the forms that were used at the Hastings and Wairoa sites.
For example:
a. Hastings used four forms incl ding (1) Pathway Plans (2)
Individual Learning Logs, (3) M nthly Goal Setting, and, (4)
Long Term Goals. (Forms (3) and (4) are no longer used).
b. Wairoa use Individual Learning Logs but not Pathway
Plans.
It is suggested that Whakato eview the forms that are used,
rationalise existing forms and standardise p ocesses.
under the
2. The financial
Students were not required to individually purchase any item of
support for the
hardware or equipment necessary to gain the approved qualification.
equipment
infrastructure
required to
deliver the
approved
qualifications.
3. Whether
From t e sample of records reviewed there was no evidence of any
inducements or
student being provided with an inducement or benefit to study.
benefits have
been provided
to stud nts.
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4. Responsibility
There is no subcontracting of education provision. First aid training is
for
delivered by Whakato tutors at both sites.
subcontract ng
arrang ments.
5. Compliance
The overal standard of recordkeeping was satisfactory.
with t e
requirements
Part 18 of the Education Act 1989 includes, but is not limited to
Official Information Act 1982
in Part 18 of
student programme information and records.
Education Act
Whakato has one approval letter from NZQA for the programmes that
1989.
are funded by the TEC. A copy of the front page of the NZQA
approval letter dated 28 March 2013 was sighted but not the course
details.
6
Retention of birth certificates
At the Hastings site there were less than 10 original birth certificates
that had been applied for and paid by Whakato to confirm the
domestic status of former students. The birth certificates have not
been claimed.
It is recommended that the organisation develop a policy for scanning
and disposing of these birth certificates following a reasonable
attempt to contact the former student.
6. Any other
The provider has provided a written response in Appendix 1 to this
matters.
section. The response is included in full.
High 1.5087 EFTS value recorded against students enrolled in
Ministry of Social Development Training For Work programme
Reported in the December 2014 and Ap il 2016 Single Data Returns
was a Training for Work programme that is funded by the Ministry of
Social Development.
Students were reported enrolled in up to 65 courses (unit standards)
over a 13 week period.
Discussions with the PTE ha e confirmed that the enrolment pattern
reflected al courses that were potential y available rather than a
specific enrolment pattern per student.
9(2)(a)
n Act 1982
One example is student NSN
with a start date of 23 April
under the
2015 and a end date of 23 July 2015. The student was enrolled in a
total of 65 courses (unit standa ds). A check of the NZQA Record of
Achievement confirms the student was successfully reported
completing one unit standard on 6 July 2015. (Training for Work
programmes place an emphasis on employment outcomes rather unit
standard achievements).
While there is no TEC funding consequence for this enrolment pattern
it neve th less does not reflect what an average student could
realistically enrol in and achieve over a 13 week period.
The enr lment information already reported in April 2016 wil also be
reported in the August and December 2016 Single Data Returns.
The 1.5 EFTS value wil continue to trigger TEC pattern recognition
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software.
The Ministry of Social Development ceased funding the programme in
June 2016.
Official Informati
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APPENDIX 1 – Provider response to Section 6: Any other matters.
22 August 2016
9(2)(a)
Senior Auditor –Tertiary Education organisations
Finance Directorate
Tertiary Education Commission
Level 11, 44 The Terrace
P.O. Box 27048
Wellington 6141
Dear 9(2)(a)
Thank you for the draft Audit Report which we received on the 15th of August 2016.
The report itself contains no surprises and the key findings and recommendations were
discussed with myself and the Site Managers during the Audit visit
The process was an opportunity for us to review our own processes so we can function better
for the benefit of our students.
The only query that I have is the inclusion of Point 6 in the focus areas. While I understand
that the high EFTS value recorded against students enrolled on the Ministry of Social
Development Training for Work programme had drawn attention because it threw up an
anomaly in the data, I believe there was clarific tion given around why it happened.
under the
1. The enrolment pattern was for ll the courses each student could potentially access
2. Students follow individual programmes even though they are enrolled in a single
programme
3. The programme is a hangover from a previous funding regime – Training for Work -
and does not fit into the SDR reporting framework
4. Work & Income measure employmen outcomes not qualifications and that is the
basis of their funding
5. There is no funding consequence of this enrolment pattern to the funder i.e. to MSD
or any relev nce to TEC.
6. There is no financial benefit to us as the Provider
7. The only beneficiary of the enrolment pattern is the student who has access to our
entire accreditation rather than a proscribed part of it.
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I am concerned that this paragraph in the report will be viewed negatively by future funders
when it has no relevance to the funding agency that contracted it.
The Ministry of Social Development no longer funds this programme. We had a discussion
about the impac an anomaly in the data can have in terms of auditing, I believe in all
fairness th point you made has been well learned.
Apart from this one point I am happy to sign off this report as factually correct and work
Official Information Act 1982
through the key findings and recommendations to ensure they are all put in place.
Thank you for the time you took. I look forward to hearing from you in the future.
Naku noa,
Na, 9(2)(a)
General Manager
Whakato te Maatauranga
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