Wider factors affecting performance
This data covers the period 1 January 2016 to 31 December 2022. The Covid-19 pandemic occurred during this period and affected the performance of Te Pukenga:
- New Zealand’s borders closed in the first quarter of 2020 and there was a significant decrease in enrolments (domestic and international) in 2020. Covid-19 directly affected enrolments throughout the tertiary education sector and continues to affect international student numbers. Enrolments have not returned to pre-Covid-19 levels, and when enrolments are down in one academic year it affects subsequent years.
- Fewer international enrolments affected the tertiary sector’s finances.
- Lockdowns due to Covid-19 and the need for remote learning adversely affected not only financial and service performance results but also aspects of the provision of educational services and the well-being of learners.
Funding decisions made in response to Covid-19 have also affected the data presented:
- In March 2020, the Minister of Education announced that tertiary education institutions, including institutes of technology and polytechnics (ITPs) would be funded at the levels set out in their investment plan despite any potential reduction in student numbers.
- The accounting implication of this was that most government revenue was required to be recognised before 31 March 2020, meaning ITP’s disestablishment financial statements showed large surpluses, followed by large deficits reported in the financial statements by the new Te Pūkenga subsidiaries for the 9-month period ended 31 December 2020.
- Te Pūkenga was not required to return $57 million to the Tertiary Education Commission for under-delivered courses in 2020.
The combined deficit reported at the end of 2022 was therefore influenced by the continued effects of Covid-19 and reduced funding due to decreased enrolments.
Page updated: 25 July 2024