|
MonitoringReport2005 TEO Capability ← Quality in Tertiary Education | Home Page | System Capability → Leadership and management in TEIsFinancial management provides one indicator of the overall management of organisations. In 2004, there was a drop in the operating surplus across TEIs following a peak in 2003. TEI 2005 budgets indicate a continued drop in operating surplus. At the same time, debt as a proportion of total assets started to increase, after a period of stability, and is forecast to continue to increase.  Financial performance of TEIs 1997–2005 Note: Figures for 2005 are budget, rather than actual. Over the last three years, the ITP sector has relied heavily on community education and short courses to cross-subsidise core provision. The restrictions on provision in these areas have affected the financial performance of these insitutions. The government has embarked on a programme of reinvesting in the core provision of ITPs to develop a more sustainable sector. The downturn in international students has also had an impact on TEIs, particularly universities. International students have been a significant source of additional funding. Not only have international student numbers decreased in 2005, but the cost and effort of recruitment have increased. The analysis of profiles found that in 2005/07 and 2006/08 profiles, around a third of TEIs had objectives relating to improving leadership. These mostly focused on governance, including guidance on practice, training for new council members and strengthening links between council and the institution. Several also had a focus on senior management development and organisational leadership. More than two-thirds of TEIs in both years had change-focused objectives focused improving their capability. The main areas of focus for ITPs were staff development, increasing and diversifying income, and developing new management systems. In 2006/08 there was more focus on effective and efficient use of existing resources and less on increasing overall income. In 2005/07, universities were mostly focused on developing management systems and increasing and diversifying their income. In 2006/08 the main focus was on financial viability and staff development. In the financial area, the focus was on increasing income, rather than more efficient use of existing resources. The wānanga had a focus on financial viability, as well as staff development and overall capability. Leadership and management in ITOsThe analysis of profiles found that in 2005/07 many ITOs had a focus on improving their governance in order to exercise their leadership role. This was a lesser focus in 2006/08 as developmental issues were addressed and bedded into ‘business as usual’. A number of ITOs also had a focus on developing their capability. In 2005/07, the general focus was on ensuring that their organisational systems and processes were appropriate to the growing size of their operations. In 2006/08, the focus of change covered staff development, finance and funding, and general organisational structure, capability and sustainability. Management in PTEsAnalysis of PTE financial data for 2004 shows that the financial position of PTEs is stable or improving. This is allied with a trend towards fewer small PTEs and concentration of revenue into larger providers. An indicator of general confidence in the management of PTEs is the length of the NZQA audit cycle. This varies from less than a year for PTEs with significant audit concerns to three years for well-performing and established PTEs. The general trend is towards more PTEs being on a two- or three-year cycle and fewer on less than one year, showing the maturing sector and overall development of management capability.  Percentage of PTEs by length of NZQA audit cycle 2001–2004 ← Quality in Tertiary Education | Home Page | System Capability → Page last modified on 26 November 2006, at 06:29 PM |
Inform:
Contribute:Participate:$CopyrightPolicy
 |