Southern Institute of Technology posts $2.8m surplus

Monday, 29 April 2019

Southern Institute of Technology chief executive Penny Simmonds.

The Southern Institute of Technology has put together what it says is a positive report card and hopes education minister Chris Hipkins takes notice.

The SIT held its annual general meeting on Monday night where its annual report was tabled confirming a $2.86m surplus for 2018.

It has come at a time when other New Zealand polytechnics' financial struggles have been well documented while the SIT fights to keep its independence.

SIT chief executive Penny Simmonds was unable to attend the AGM. She was stranded in Wellington because of a cancelled flight after she attended Sir Tim Shadbolt's knighthood ceremony.

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However, before the meeting Simmonds said she was encouraged by the SIT's 2018 annual performance.

'Our strong financial performance marks a pattern for the SIT of consecutive surpluses year on year exceeding the Government guideline for a surplus of three per cent of turnover.

'As a result of this financial strength, with $35m in liquid funds and $117m in net assets, SIT is in a good position to withstand any future financial stresses.'

SIT chairperson Peter Heenan echoed Simmonds' thoughts in his chairperson's report.

'It is pleasing to report that SIT has had another successful year despite the uncertainty the sector faces as it undertakes a review of the delivery performance and proposals being put forward by the Minister of Education for reforms of the vocational education sector,' he said.

The annual report also says 97 per cent of its 2018 graduates were in employment or undertaking further study, while an independent survey indicated 92 per cent of graduates were satisfied with their SIT programmes.

Student numbers at SIT were up from 2017 but Simmonds conceded the figures were a little skewed.

The increase in students had come through the integration of the Music and Audio Institute of New Zealand into the SIT, she said.

In fact 200 less school leavers from outside Southland joined SIT in 2018, compared to the previous year.

Simmonds put it down to the Government introducing free fees throughout the country, which nullified the SIT's point of difference in offering free fees.

To try to provide a new point of difference it introduced the Mayor Tim Shadbolt Accommodation Bursary.

The bursary provides students free shared accommodation in one of the SIT's apartments, or $100 per week for private accommodation.

It was accessed by 345 students in Invercargill last year.

The tabling of SIT's 2018 annual report comes in the middle of Minister Hipkins' review of the vocational education sector, and his plan to merge the 16 polytechnics into one centralised institute.

The SIT has submitted on the proposal asking for it to remain independent and sit outside the centralised organisation.

Simmonds said they were yet to receive any feedback on the submission or be given a timeline for the process.

'[The annual report] is very positive, I would like to think [the Minister] looks at it that way, but I'm not sure. We'll have to see,' Simmonds said.