A1038250
Tertiary Education Commi the
ssion
1982
Audit Report
Act
under
Nelson Marlborough Institute of Technology
Te Whare Wānanga o Te Tau Ihu o
Te Waka a Māui
Released
Information
Student Achievement Component, Youth Guarantee, ESOL –
Intensive Literacy and Numeracy, ESOL – Refugee English Fund
and Adult Community Education Funding
Official
Edumis Number: 6011
Audit Dates: 7 – 10 November 2016
Draft Report Release Date: 28 November 2016
Final Report Release Date: 09 December 2016
1 Purpose
The purpose of the audit was to provide assurance that Nelson Marlborough
Institute of Technology Te Whare Wānanga o Te Tau Ihu o Te Waka a Māui
(NMIT) is meeting the Investment Plan Funding Conditions as referred to in the
Tertiary Education Commission (TEC) letter of approval dated 21 December
2015. The funding approved includes Student Achievement Component (SAC),
Youth Guarantee, ESOL – Intensive Literacy and Numeracy, ESOL – Refugee
English Fund and Adult Community Education (ACE) 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
NMIT. The scope was outlined in the audit arrangements the
letter.
The focus areas included:
The reporting through the Single Data Return, including recording enr 1982
olments
and withdrawals.
Compliance with Student Achievement Component fundi
ement (AMFM) policy rel Act
ng conditions.
The Annual Maximum Fee Mov under ating to fees and
course costs.
The refund of fees that have been overcharged.
The financial support for the equipment infrastructure required to deliver the
approved qualifications.
Whether inducements or benefits have been provided to students.
Responsibility for subcontracting arrangements.
Compliance with Youth Guarantee funding conditions.
Compliance with ESOL - ILN funding conditions.
Compliance with the requirements in Part 16 of the Education Act 1989.
Any other matters relating to funding provided by the TEC.
A
Released
n audit is a snapshot of Information
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
T Official
his audit is part of the TEC’s ongoing monitoring of Tertiary Education
Organisations.
NMIT is an Institute of Technology based in Nelson offering qualifications from
foundation to post-graduate programmes that are funded by the TEC.
In addition to the main campus in Nelson, the Institute has campuses in
Blenheim, Woodbourne, Richmond and Auckland.
2
The following eleven qualifications were reviewed during the audit:
NE4955 Certificate in Trades and Primary Industries (Level 2)
OT4960 Certificate in Automotive Engineering (Level 3)
NC1421 National Certificate in Motor Industry (Automotive Electrical and
Mechanical Engineering) (Level 3)
NC1621 National Certificate in Seafood Processing (Level 3)
NE4553 Certificate in Vineyard Practice (Level 3)
NE4340 Diploma in Viticulture and Wine Production (Level 5)
HB3871 Diploma in Beauty Therapy (Level 5)
NE4648 Diploma in Career Guidance (Level 6)
112950 New Zealand Diploma in Engineering (Level 6)
NE4864 Bachelor in Viticulture and Wine Production (Level 7)
NE4507 Bachelor of Information Technology (Level 7).
The table below provides a breakdown of 2016 funding:
Fund
2016
($ GST ex the
clusive)
1982
Investment Plan
SAC Level 3 plus
$ 15,774,631
SAC Levels 1-2 (Competitive)
$ 302,130
SAC Levels 1-2 (Non Competitive)
$ 992,591 Act
Special Ed SSG
under
$ 77,685
Youth Guarantee
$ 1,433,747
ESOL – ILN
$ 273,750
ESOL – Refugee English Fund
$ 76,260
ACE in TEIs
$ 129,869
Equity
$ 81,842
Total
$ 19,142,505
Released
Information
Official
3
4 Key Findings
The key findings were:
Learners enrolled in Intensive Literacy and Numeracy – English for Speakers of
Other Languages (ESOL – ILN) had not been systematically assessed against
two funding conditions,
ESOL004: TEO to ensure that learners are eligible and
ESOL011: TEO only to enrol learner for no more than five years. Implementing
a structured decision-making process prior to acceptance on the programme
wil ensure that all criteria has been considered and documented.
Funding condition
ESOL013: TEO to provide specified amount of provision to
learners specifies that, on average, there is 200 hours of provision per learner.
NMIT could not confirm during the audit that this was 200 hours of contact time
and may have included some non-contact hours.
NMIT has a subcontracting agreement with Skil s Upd the
ate Training Instit 1982
ute to
deliver training in NE4648 Diploma in Career Guidance (Level 6). The
agreement was original y negotiated in 2010 and needs to be reviewed.
NMIT has a subcontracting agreement with Seafood Training Services Limited
to deliver training in NC1621 National Certificate in Seafood
rd achievements to the Act
Processing (Level
3). The contract for provision of services does not specify which party is
responsible for reporting unit standa under New Zealand
Qualifications Authority (NZQA).
NC1421 National Certificate in Motor Industry (Automotive Electrical and
Mechanical Engineering) (Level 3) is a 268 credit qualification. In the open
cube for 2015 the course completion Educational Performance Indicator is
99.1%. NMIT commented that courses are reported through the student
management system after the student has successfully completed the unit
standard.
5 Recommendations
The m Released
ain recommendati Information
ons are:
NMIT reviews the enrolment process for learners enrolled in ESOL – ILN to
ensure there is a structured decision-making process to support the acceptance
decision.
NMIT to review the process for recording contact hours for learners enrolled in
ESOL – ILN.
Official
Subcontracting agreements need to be reviewed and updated to ensure they
reflect the schedule of approved qualifications in the Mix of Provision and
specify the party responsible for reporting unit standard achievements to NZQA.
NMIT to discuss with the ITP Investment Team the TEC’s expectations relating
to the reporting of course completions for NC1421 National Certificate in Motor
Industry (Automotive Electrical and Mechanical Engineering) (Level 3) and how
each enrolment should be reported through the student management system.
4
Part Two
Findings
Detailed findings are summarised in each of the audit focus areas.
Overview
A sample of 60 files was selected for audit. The sample covered enrolments reported in the
December 2015 and August 2016 Single Data Return.
Interviews were held at the NMIT campus in Blenheim and main campus in Nelson. The
audit included a visit to the Richmond campus.
Management interviewed included the Chief Executive, membe the
rs of the manag
Certificate in M 1982
ement team
and personnel from the eleven selected programmes.
There were no concerns with data reported through the Single Data Return, although there is
one matter to follow up with the TEC relating to NC1421 National
Evidence sighted
Act otor Industry
(Automotive Electrical and Mechanical Engineering) (Level 3).
Audit focus areas
Student Management under
1. The reporting
System
through the
Single Data
NMIT uses a commercial database student management system,
Return,
ebs, which is software certified by the Ministry of Education for the
including
Single Data Return.
recording
ebs has a wide range of functions that includes loading enrolments,
enrolments
recording attendance, withdrawals and the reporting of course and
and
qualification completions. The system has an integrated debtors
withdrawals.
function with data imported daily into NMIT’s Finance system.
Released
Information
NMIT has satisfactory controls in place for the entering and updating
of student data.
The student management system was satisfactory.
Enrolments
Al 60 student records in the audit sample were valid enrolments for
funding purposes, domestic student status was confirmed and
Official minimum attendance requirements met.
From the 60 student records sampled, 24 (40%) were confirmed as
enrolments by reference to the student’s National Student Index
number (‘NSI – Active’ record).
Withdrawals
NMIT has policies and procedures in place to monitor attendance and
effect withdrawals in a timely manner. The organisation is complying
with these policies.
5
Single Data Return – declaration sign off
The Single Data Return declaration is signed by the Chief Executive
prior to submission to the Ministry of Education.
This is compliant with the August 2016 requirement that the SDR is
signed by the Chief Executive.
2. Compliance
In the sample of Student Achievement Component funding records
with Student
reviewed al students were eligible to enrol.
Achievement
Component
Al funding conditions were complied with.
funding
conditions.
NC1421 National Certificate in Motor Industry (Automotive Electrical
and Mechanical Engineering) (Level 3)
NC1421 is a 268 credit qualification. In the
the open cube for 2015 the
course completion Educational Performance Indicator is 1982
99.1%.
NMIT commented that courses are reported through the student
management system after the student has successfully completed the
unit standard.
NMIT should further discuss with the ITP Inv
ent system.
Act
estment Team the TEC’s
expectations relating to the reporting of course completions for
NC1421 and how each enrolment should be reported through the
student managem
3. The Annual
NMIT is complying with the Annual Maximum Fee Movement Policy.
Maximum Fee
under
Movement
(AMFM) policy
relating to fees
and course
costs.
4. The refund of
In the sample of records reviewed there was no evidence that
fees that have
students have been overcharged fees.
been
overc Released
harged.
When students withdraw from a programme or change courses within
a p Information
rogramme there may be corresponding adjustments to fees
charged and refunds effected.
5. 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
r Official
equired to
deliver the
approved
qualifications.
6. Whether
From the 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 students.
6
7. Responsibility
Skills Update Training Institute
for
subcontracting
NMIT has a subcontracting agreement with Skil s Update Training
arrangements.
Institute to deliver training.
The agreement was original y negotiated in 2010 and needs to be
reviewed. Students enrolled are NMIT students and SAC funded.
Seaford Training Services Limited
NMIT has a subcontracting agreement with Seafood Training
Services Limited. The contract for provision of services does not
specify which party is responsible for reporting unit standard
achievements to NZQA.
Recommendation
Subcontracting agreements should b
the
e reviewed and up 1982
dated to
ensure they reflect the schedule of approved qualifications in the Mix
of Provision and specify the party responsible for reporting unit
standard achievements to NZQA.
8. Compliance
In the sample of Youth Guarantee funding records reviewed all
with Youth
students were eligible to enrol.
Guarantee
funding
Al funding conditions were complied with. Act
conditions.
9. Compliance
Learners enrolle under
d in Intensive Literacy and Numeracy – English for
with ESOL -
Speakers of Other Languages (ESOL – ILN) had not been fully
ILN funding
assessed against two funding conditions,
ESOL004: TEO to ensure
conditions.
that learners are eligible and
ESOL011: TEO only to enrol learner for
no more than five years.
NMIT should review the enrolment process for learners enrolled in
ESOL – ILN to ensure there is a structured decision-making process
to support the acceptance decision.
Released
F Information
unding condition
ESOL013: TEO to provide specified amount of
provision to learners specifies that, on average, there is 200 hours of
provision per learner. NMIT could not confirm during the audit that
this was 200 hours of contact time and may have included some non-
contact hours.
NMIT should review the process for recording contact hours for
learners enrol ed in ESOL – ILN.
Official
7
10. Compliance
The overal standard of recordkeeping was reviewed as good.
with the
requirements
Part 16 of the Education Act 1989 includes, but is not limited to
in Part 16 of
student programme information and records.
Education Act
NMIT has programme approval from NZQA (or ITP Quality1) for the
1989.
eleven programmes that are funded by the TEC. Copies of
programme approval letters were available for the programmes
selected for review, together with the summary of changes for minor
and significant changes2.
11. Any other TEC
Literacy and Numeracy for Adults Assessment Tool (Assessment
funding
Tool)
matters.
Al students enrolled in programmes up the
to Level 5 (excep
ort of students. 1982
t Te Reo
Māori) are assessed using the Assessment Tool.
Both adaptive and paper-based assessments are completed
according to the requirements of each coh Act
under
Released
Information
Official
1 Institutes of Technology and Polytechnics Quality.
2 Refer to SAC3+011: TEO to meet requirements when making changes to a qualification. Also
referred to as Type 1 and 2 changes.
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