A974744
Tertiary Education Commi the
ssion
1982
Audit Report
Act
under
MITO New Zealand Incorporated
Industry Training, Apprenticeship and Strategic Leadership
Funding
Released
Information
Official
Edumis Number: 9013
Audit Dates: 27-29 April 2016
Draft Report Release Date: 26 May 2016
Final Report Release Date: 27 May 2016
Purpose
The purpose of the audit was to review compliance with the legislative requirements
and conditions defined in the MITO New Zealand Incorporated (MITO) and the
Tertiary Education Commission (TEC) funding letters. The funding includes the
Industry Training Fund, Apprenticeship Fund and Strategic Leadership Fund.
The TEC monitors ITOs in accordance with its responsibilities under the Education
Act 1989 and the Industry Training and Apprenticeships Act 1992. The information
from these audits informs investment plan decisions.
Scope
The scope of the audit was aligned to the performance commitments in the
Investment Plan and the conditions defined in the 4 December 2014, 21 August, 17
September and 13 October 2015 TEC funding letters.
The main objectives of the audit were to review:
Eligibility of programmes and trainees
the 1982
Data integrity
Financial arrangements with industry
Systems and monitoring
Governance and management
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Any other TEC funding matters.
An audit is a snapshot of an ITO’s perfor under
mance at a particular point in time. It does
not provide a guarantee of current or on-going compliance with its obligations as the
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.
Background
The audi Released
t was undertake
Information
n as part of the TEC’s monitoring of an ITO.
MITO has been granted re-recognition for industry coverage to October 2018 by the
Minister for Tertiary Education, Skil s and Employment.
MITO is the industry training organisation for the motor, transport, logistics,
industrial textile fabrication and extractive industry sectors. A full list of the
industries covered is contained in Appendix 1 – Gazetted Coverage.
Official
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The table below provides a breakdown of 2016 funding:
Funded
2016
Programmes
(GST exclusive)
Industry Training Fund
$ 1,142,400
Apprenticeship Fund
$ 9,652,459
Strategic Leadership Fund
$ 110,000
Total Funding
$ 10,904,859
the
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Key Findings
Act
There were no key findings.
under
Recommendations
There were no recommendations.
Released
Information
Official
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Part Two
Findings
Detailed findings are summarised in each of the audit focus areas.
Overview
A sample of 50 files was selected for review from the Industry Training Register (ITR).
The selected files consisted of trainees and apprentices enrolled from 2012 through to
2016. This included: Industry Trainees, Modern Apprentices and New Zealand
Apprentices.
During the audit, interviews were held with the Chief Executive, the
Group Manager
Corporate Services, Group Manager Workforce Development, Group Manager
Qualifications, Manager Business Systems, Manager Strategic Communications 1982
and
Principal Advisor.
The overal standard of recordkeeping was exemplary with trainees and apprentices
accurately reported in the Trainee Management System, ITOMIC.
The Chief Executive of MITO has developed a strong culture withi
achievement and this per Act
n the organisation of
valuing individual trainee and apprentice under meates all levels of the
organisation and underpins the ITO’s success.
Audit focus areas
Evidence sighted
1. Eligibility of programmes
Trainee Management System
and trainees.
MITO uses the ITO Management Information Centre
(ITOMIC) system for gathering and processing trainee
and apprentice data. ITOMIC is based on Microsoft CRM
2011 (Customer Relationship Management) and has
been developed to meet the requirements of the Industry
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Information
Training Register (ITR).
ITOMIC provides a system for monitoring trainee and
apprentice activity and can produce a range of reports
that management and staff can use for tracking,
monitoring and reporting purposes to trainees and
apprentices, employers, the Board, staff and
management.
Eligibility of trainees and apprentices
Official In the sample of 50 industry trainee, modern apprentice
and New Zealand apprentice files reviewed all learners
were eligible to enrol.
For each trainee or apprentice a copy is retained of their
New Zealand birth certificate, New Zealand passport,
New Zealand citizenship certificate or foreign passport
with an appropriate visa from Immigration New Zealand.
Each new trainee or apprentice receives a welcome letter
from the Chief Executive who describes the programme
commencement date and introduces the key MITO
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contact person.
As at 28/04/2016 there was a small number of 34
trainees enrol ed with valid work visas. MITO has
systems in place to ensure there are no trainees with
expired visas.
Completeness of training agreements
Each training agreement reviewed was complete and
signed by three parties; the trainee or apprentice,
employer and a MITO representative.
Industry Training Advisors
The 28 Industry Training Advisors cover al regions and
are responsible for setting up training plans, monitoring
progress and communicating with assessors and
moderators.
Monitoring of trainees and appr
the
entices
Whenever trainees and apprentices are falling b 1982
ehind in
their studies intervention strategies are actively deployed.
One of the interventions may include the Chief Executive
visiting the trainee/apprentice in thei
tes all levels of the organis Act
r workplace and
therefore re-enforcing that individual achievement is
valued. This culture of valuing individual achievement
permea under ation and underpins
the ITO’s success.
Code of Good Practice for New Zealand Apprenticeships
MITO is complying with the Code of Practice for
apprenticeship training with assessment visits scheduled
to meet apprentice needs and in accordance with an
apprentice’s training plan.
2. Data integrity.
There were no issues identified during the audit relating
to the integrity of data reported through the ITR.
MITO has satisfactory internal controls in place for
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Information
checking data prior to upload to the ITR. This includes
Recognition of Prior Learning (RPL) and ensuring that
trainees/apprentices are not enrol ed in unit standards
that they have already achieved.
3. Financial arrangements
MITO has a process in place to identify financial
with industry.
contributions towards the total cost of training.
Official Training fees are reviewed annually. MITO’s policy refers
to affordable fees that are fair and equitable to
employers, trainees and apprentices.
4. Systems and monitoring.
A wide range of reports are generated from ITOMIC and
used at all levels of the organisation and by the Board.
Staff and management commented that they were
satisfied with the dashboards and standard reports
available and the ability to examine data.
The organisation monitors its key performance indicators
and analyses performance variations so that it can
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perform corrective actions.
5. Governance and
The governance of MITO is covered in the Constitution
management.
dated May 2015 and published on the MITO website.
The MITO Board is a skil s-based board and meets
regularly. Board minutes were made available for review
and cover a wide range of issues. The minutes were
succinct and well-written.
6. Any other TEC funding
Targeted Review of Qualifications (TRoQ)
matters.
The NZQA Targeted Review of Qualifications (TRoQ) is
assessed as having the greatest impact on the
organisation’s performance as existing qualifications
expire; new qualifications are d the
eveloped and New
Zealand qualifications become available.
MITO has processes and controls in place f
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or the
approval and development of new qualifications. A
master spreadsheet was sighted on 29/04/2016 detailing
current programmes subject to T
Act
RoQ, replacement
qualification(s) and their status of development.
under
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Information
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Appendix 1 – Gazetted Coverage
New Zealand Motor Industry Training
Organisation Incorporated
NZ Motor Industry Training Organisation (Incorporated) Pursuant to section 5 of the Industry Training Act 1992, the NZ Motor Industry
Training Organisation (Incorporated) has been granted re-recognition for a period of
five years, with effect from 21 October 2013 to 20 October 2018, to set standards at
Levels 1 - 8 on the New Zealand Qualifications Framework for the following
industries:
Motor industry;
Industrial textile fabrication industry;
Commercial road transport industry;
State Sector and New Zealand Defence Force for road tran the
sport-related
operations;
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Stevedoring and port industry (including the New Zealand Def
ering warehousing but n Act
ence Force) -
covering port cargo handling, ship loading and unloading, and port marine
services;
Road transport logistics industry - cov under ot wholesaling;
Freight forwarding and distribution - specifically related to the receipt, transhipment
and breakdown of bulk, and packaging for re-consignment;
Extractive industry - with respect to coal mining (opencast and underground),
alluvial pit (gravel, sand and opencast), quarry and aggregates (hardrock and
opencast), dredging for minerals (civil works excluded), tunnel ing;
Dril ing industry - including hydrocarbon and non-hydrocarbon;
Gas industry: including gas engineering, pipeline mechanical inspection, gas
metering, governor fitting, gas measuring, appliance servicing, mains and service
laying, leakage surveying, specialist meter reading, distribution, reticulation, sales,
repair Released
and maintenance;
Petrochemical, energy an Information
d chemical plant industries - with respect to plant/process
operations in exploration/production, hydrocarbon refining and petrochemical
processing sectors; and petrochemical industry specific skil s, geoscience,
engineering (chemical, civil, electrical, mechanical and process), mechanical
instrumentation and electrical tradespersons, metering and telemetry technicians,
cathodic technicians;
Protective coating industry - including abrasive blasting, and blasting coating
op Official
erations; and
Resource recovery - including areas of scrap metal recovery, waste management
(excluding water), recycling and zero waste.
Dated at Wel ington this 10th day of October 2013.
HON STEVEN JOYCE, Minister for Tertiary Education, Skil s and Employment.
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