A1009700
Tertiary Education Commission
the
1982
Audit Report
Act
under
New Zealand Management Academies Limited
Student Achievement Component and Youth Guarantee Funding
Information
Released
Official
Edumis Number: 8661
Audit Dates: 23-26 August 2016
Draft Report Release Date: 5 September 2016
Final Report Release Date: 9 September 2016
1 Purpose
The purpose of the audit was to provide assurance that New Zealand
Management Academies Limited (NZMA) is meeting the Investment Plan
Funding Conditions as referred to in the Tertiary Education Commission (TEC)
letters of approval dated 6 January and 22 April 2016. The funding approved
includes Student Achievement Component and Youth Guarantee.
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
NZMA. 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.
Compliance with Student Achievement Component funding cond tions.
The Annual Maximum Fee Movement (AMFM) policy relating to fees and
course costs.
The refund of fees that have been overcharged.
The financial support for the equipment infrastructure required to deliver the
under the
approved qualifications.
Whether inducements or benefits have been provided to students.
Responsibility for subcontracting arrangements.
Compliance with the requirements in Part 18 of the Education Act 1989.
Compliance with Youth Guarantee unding conditions.
Any other TEC funding 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.
Released
3 Background
This audit is part of the TEC’s ongoing monitoring of Tertiary Education
Organisations.
NZMA is one of the largest Private Training Establishments with 11 accredited
delivery sites throughout New Zealand. The 2013 domestic and 973 international
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students are enrolled across a wide range of 46 programmes from foundation
studies up to level 7 on the New Zealand Qualifications Framework.
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4 Findings
The findings were:
The August 2016 Single Data Return Authorisation had been signed off by
the Divisional General Manager, ACG Tertiary and Careers Group. Under
guidelines issued by the Ministry of Education for the August 2016 Single
Data Return the Chief Executive is required to sign the authorisation.
TEC funding approval for the delivery in 2016 of NC1327 National Certificate
in Health, Disability and Aged Support (Level 3) was not granted until July
2016 when the programme was added to the Mix of Provision. However; 24
students had commenced studies in March 2016 following NZQA programme
approval. TEC funding approval was backdated in STEO to March 2016. It is
the TEC’s expectation that programmes wil not be delivered until funding has
been approved.
One student1 enrolled in the National Certificate in Health, Disability and Aged
Support (Level 3) had not signed their enrolment form.
The programme approval letter for 113797 Certificate in Early Childhood
Education (Level 3) did not match with the details recorded in STEO. There
were 22 Teaching Weeks recorded, 13 Self-Directed Learning Hours per
week and 38 Total Learning Hours per week. The corrected figures are 21,
15 and 40.
under the
NZMA could not provide a copy of the NZQA programme approval letters for
two local qualifications: PC9462 Diploma of Web Development (Level 6) and
PC9332 Diploma of Computer Graphic Design (Level 6). Both programmes
in 2004 had been approved for funding.
NZMA has a project plan to review and consolidate the Quality Management
System Policies and Procedures and Student information. At the time of this
audit there were three Student Handbooks for NZMA, NZCC and ACG
Yoobee School of Design and variations in the policies for each of the brands.
The contract for the delivery of first aid training related to NZCC was dated
Released
2011. This contract is out of date.
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1 NZMA reference 9(2)(a)
.
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5 Recommendations
The recommendations were:
The Single Data Return is signed off by the Chief Executive.
NZMA and the PTE Investment Team at the TEC to continue discussions on
the funding approval process for newly developed qualifications.
Ensure the student enrolled in the programme National Certificate in Health,
Disability and Aged Support (Level 3) has signed their enrolment form.
Update course details in STEO for 113797 Certificate in Early Childhood
Education (Level 3).
Advise the TEC when the local qualifications are due to expire for: PC9462
Diploma of Web Development (Level 6) and PC9332 Diploma of Computer
Graphic Design (Level 6).
Update the TEC in December 2016 on the progress of the Quality
Management System merge.
Review and update the memorandum of understanding for first aid delivery
including an annual renewal clause The contract should specify the reporting
under the
responsibilities relating to achievement of first aid unit standards.
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Official Information Act 1982
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The merging of data has been closely monitored by NZMA
management given the complexity and size of the new
organisation.
Segregation of Duties
There is appropriate segregation of duties in Take2.
Sales personnel recruit and enter prospective student details in
CRM.
Campus Administrative personnel are responsible for entering
course and qualification completion outcomes, monitoring
attendance and actioning withdrawal events in Take2.
The Registry team creates enrolment patterns, enters enrolment
programmes in the database and actions Administrator requ sts t
change the status of students.
The Registrar and Deputy Registrar a e responsible f r check ng
the Single Data Return until it is error free and the Financial
Control er provides a further check.
The Single Data Return attestation was until April 2016 signed
under delegated authority by the Registrar. This practice has since
been discontinued.
Single Data Return authorisation
under the
The August 2016 Single Data Return Authorisation had been
signed off by the Divisional General Manager, ACG Tertiary and
Careers Group.
Under guidelines issued by the Ministry of Education for the August
2016 Single Data Return the Chief Executive is required to sign the
authorisation
Learner Contract and Agreement
Al students are provided with a Learner Contract and Agreement
that is signed by the student (legal guardian where appropriate) and
NZMA staff.
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There were two student records: NSNs 9(2)(a)
and 9(2)(a) in
the sample of 45 reviewed where there was no copy of the Learner
Contract and Agreement.
Attendance records Attendance records are kept for each student.
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2. Compliance
Course Completions
with Student
Achievement
In the sample of SAC student records reviewed course completions
Component
were accurately reported in the Single Data Return.
funding
conditions.
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Domestic Student Status In the audit sample of 45 student records reviewed 43 were valid
enrolments for funding purposes and domestic student status
confirmed.
Audit trails could not confirm on what basis two SAC students:
NSNs 9(2)(a)
and 9(2)(a) met the domestic student status
criteria.
In both cases a statutory declaration was provided; however, this
does not meet the verification standards of either funding condition:
SAC3+017: TEO to verify student’s identity or
SAC3+018: TEO to
confirm that each student is a valid domestic enrolment.
NZMA should review the above funding conditions and how it
records the student’s citizenship status using the student’s NSN
Expired New Zealand passport that has not been cancelled
Student NSN 9(2)(a)
presented an expired New Zealand
passport upon enrolment but was requested to provide a New
Zealand birth certificate. The second form of evidence was not
necessary.
In this case the expired New Zealand passport is acceptable as it
had not been cancel ed The right to New Zealand citizenship does
not expire although the life of a passport is limited to the expiry
date.
under the
NZMA should review section g) of funding condition:
SAC3+017:
TEO to verify student’s identity
9(2)(a) ation Act 1982
Assessment of good cha acter requirements prior to enrolment
For student NSN
there was no assessment undertaken
whether the prospective student was suitable for enrolment in an
early childhood programme.
NZM should review enrolment policies for prospective early
childhood students when risk factors are presented during the
enrolment process. Any decision to accept a student presenting
high risk factors should be documented and signed by
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management.
3. The Annual
NZMA was complying with the Annual Maximum Fee Movement
Maximum Fee
policy. Copies of fees information was provided for 2014, 2015 and
Movement
2016.
(AMFM) p licy
relati g to fees
In 2016 Student Services Levy was introduced based on $ 10 per
and course
week. The levy ranges from $ 150 to $440 per student per year.
costs.
Official Infor
4. The refund of
In the sample of records reviewed there was no evidence that fees
fees that have
have been overcharged.
been
overcharged.
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5. The financial
Students were not required to individually purchase any item of
support for the
hardware or equipment necessary to gain the approved
equipment
qualification.
infrastructure
required to
NZMA has capital expenditure budgets for each of the three
deliver the
brands: NZMA, NZCC and ACG Yoobee School of Design.
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
‘Refer a Friend’ promotional material did not contain a ‘valid til ’
to students.
limitation clause. The promotional material is not an inducement for
funding purposes and the 2016 referral amount varies from $ 200 o
$ 300.
7. Responsibility
The only subcontracting of education provision was fo first aid
for
training. The agreement with First Aid (NZ) Limited was dated
subcontracting
January 2011 and referred to NZCC. The agreement is out of date
arrangements.
and needs to be renewed for NZMA.
8. Compliance
The overal standard of recordkeeping f r enrolment and academic
with the
records was reviewed as satisfactory. A l records selected for
requirements
review were available
in Part 18 of
the Education
Part 18 of the Education Act 1989 includes, but is not limited to
Act 1989.
student programme information and records.
under the
There were six programmes that were selected for review of
programme approval documentation. The programmes were:
a NC1257 National Certificate in Hospitality (Entry Skil s)
(Level 2)
b. PC9451 NZMA Certificate in Hospitality and Employment
Skil s (Level 3)
c. 113797 Certificate in Early Childhood Education
(Level 3)
d. PC4016 Certificate in Digital Media (iCreate) (Level 3)
e. PC9462 Diploma of Web Development (Level 6)
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f. PC9332 Diploma of Computer Graphic Design (Level 6).
The programme approval letter for 113797 Certificate in Early
Childhood Education (Level 3) did not match with the details
recorded in STEO. There were 22 Teaching Weeks recorded, 13
Self-Directed Learning Hours per week and 38 Total Learning
Hours per week. The corrected figures are 21, 15 and 40.
NZMA could not provide a copy of the NZQA programme approval
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letters for two local qualifications: PC9462 Diploma of Web
Development (Level 6) and PC9332 Diploma of Computer Graphic
Design (Level 6). Both programmes in 2004 had been approved for
funding.
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Archiving
The organisation has an archiving policy for both electronic and
hard copy student records. Physical records are held securely at
the Otahuhu Campus.
9. Compliance
Youth Guarantee
with Youth
Guarantee
In the sample of Youth Guarantee records selected for audit
funding
domestic student status was confirmed and funding conditions met.
conditions.
Youth Guarantee Secondary-Tertiary Partnerships Pilot Programme
NZMA receives funding of $ 66,960 to deliver the Secondary-
Tertiary Partnerships Pilot Programme.
Eligible students attend one day per week with six hours of face to-
face delivery. Attendance is monitored and pastoral care
undertaken.
Student achievements are reported by the secondary school where
they are enrol ed.
10. Any other TEC
NC1327 National Certificate in Health, Disability, and Aged Support
funding
(Foundation Skills) (Leve 2)
matters.
There were 24 students enrolled from 7 March 2016 in this
programme. The 24 students are due to complete by November
2016.
under the
Five student records were sel cted and attendance records
confirmed the 7 March 2016 start date.
For student NZMA reference 845865025 the enrolment form had
not been signed by the student. NZMA must ensure the student
has signed the enrolment form as the TEC could seek recovery of
any funding claimed for an invalid enrolment.
NZMA contact d the TEC in July 2016 to have the qualification
added t the Mix of Provision. This was approved on 21 July 2016.
The date the qualification was approved in STEO is recorded as 3
March 2016. The First Taught Date is recorded as 11 April 2016.
The date the qualification was created in STEO was 20 July 2016.
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The PTE Investment Team wil contact NZMA separately to discuss
the programme approval process for funded qualifications.
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