2014 BUILDING PEOPLE HE AHA TE MEA NUI O TE AO? HE TANGATA! HE TANGATA! HE TANGATA! WHAT IS THE MOST IMPORTANT THING IN THE WORLD? IT IS PEOPLE! IT IS PEOPLE! IT IS PEOPLE! 1 2 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE TABLE OF CONTENTS WHAT WE’RE ALL ABOUT .................................. 5 FINANCIALS CLEAR AND SIMPLE.................. 38 OUR CHAIRMAN .................................................... 6 AUDITOR’S LETTER............................................. 40 OUR CHIEF EXECUTIVE......................................... 8 STATEMENT OF COMPREHENSIVE INCOME... 41 WE’RE MOTORING AHEAD................................ 10 STATEMENT OF CHANGES IN EQUITY........... 42 WE LOVE A CHALLENGE.................................... 12 STATEMENT OF FINANCIAL POSITION......... 43 WE ENCOURAGE CAREER SEEKERS.............. 14 STATEMENT OF CASH FLOWS......................... 44 BUILDING LEADERS OF THE FUTURE............ 16 NOTES TO THE FINANCIAL STATEMENTS.... 45 WE RESEARCH...................................................... 18 OPERATING LEASE COMMITMENTS.............. 46 WE’RE CHAMPIONING MĀORI SUCCESS..... 20 RELATED PARTY TRANSACTIONS.................. 47 WE’RE DIVERSE................................................... 22 WE’RE SUPPORTING EMPLOYERS................. 24 WE’RE LEARNING TOO...................................... 26 WE’RE CELEBRATING......................................... 28 WE’RE LINKING WITH SCHOOLS.................... 30 WE’RE CONNECTED............................................ 32 WE’RE RELEVANT............................................... 34 WE’RE MEETING NEW PEOPLE....................... 36 5,977 IN 2014 5,977 PEOPLE JOINED BCITO AND THE CONSTRUCTION INDUSTRY AS APPRENTICES 3 4 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WHAT WE’RE ALL ABOUT BCITO is the largest provider of construction trade apprenticeships in New Zealand. We are champions of people in our industry - career seekers, trainees, employers and stakeholders. We are BCITO and we’re building people. We collaborate with construction people to create meaningful learning experiences, frameworks and outcomes. We create effective relationships and shared goals for education within our industry. WHO DO WE SUPPORT? Appointed by Government, we develop qualifications and arrange training for a broad range of sectors in the construction industry. 9,747 WHAT SETS US APART? LEARNERS ACROSS 15 SECTORS →→APPRENTICE NUMBERS BY INDUSTRY 2014 1.8% ALUMINIUM JOINERY 2.3% BRICK & BLOCKLAYING 71.1% CARPENTRY 1.5% CONCRETE 1.0% TILING CONSTRUCTION MANAGEMENT KITCHEN & BATHROOM DESIGN 4.4% FLOORING 0.6% MASONRY/STONEMASONRY Central to our success are the collaborative, positive working relationships that we have with the industries we represent. In partnership with industry, we continually work to improve our service and to both plan for, and meet each sector’s future needs. With a vision of building professionals for the future today, we’re passionate about leading the construction industry in creating the highly skilled tradespeople required to meet tomorrow’s needs. HOW DO WE MEET OUR INDUSTRY’S NEEDS? 8.4% ABCITO Standards Leadership Group regularly review our qualifications and the way they are delivered, in full consultation with industry. 1.9% 1.6% AOur researchers provide stakeholders with econometric information, monitoring and analysing industry trends and shifts. 1.1% 3.0% 0.3% FRAME & TRUSS GLASS & GLAZING 0.4% 0.5% As one of the most successful educational institutions in the country, we are recognised for best practice learning methods. INTERIOR SYSTEMS PAINTING & DECORATING EXTERIOR PLASTERING TIMBER JOINERY We lead education for the construction industry by setting clear, measurable standards for high-quality outcomes – then we raise the bar. We succeed by meeting our standards and aiming to be the best. In turn, we support our learners to become successful, professional tradespeople. ASkills Brokers work closely with employers, schools and communities, promoting construction trades to young career seekers. Encouraging people into careers in our industry is key to meeting current and future skills shortages. ATraining Advisors regularly visit apprentices and their employers in the workplace – listening, supporting progress, helping set goals and facilitating high-quality training and assessment towards achieving nationally recognised qualifications. ABCITO Board and Executive Leadership Team provide vision and strategic direction for our organisation. With our national office located in Wellington’s CBD and 15 support offices around the country, our nationwide presence makes quality industry training available and accessible to all employers and trainees across New Zealand’s construction sectors. WHAT MOTIVATES US? We are excited and passionate about the people that make our industry great. Our focus on people helps us ensure that the high standards within our industry are maintained. WORKING TOGETHER, BUILDING PEOPLE. 5 6 BCITO ANNUAL REPORT 2014 OUR CHAIRMAN BUILDING PEOPLE KEVIN SCEATS - CHAIR →→SIGN UPS AND RE-SIGNS 2014 was a very successful year for the building and construction industry, for our employers, learners and association members. I applaud everything that improves outcomes for our industry and I believe that our services continue to support achievement of those outcomes. As Chair for the past 6 years, I’m proud to see long-term, positive, and sustainable change happening in the New Zealand building industry owing to the great work we do. In 2014 the Board has seen the BCITO team increase its intensity and drive to do more for the industry. All programmes expanded their reach and impact. Third party research shows that the team’s commitment to excellence has led to very pleasing results, in terms of both quality and quantity. The process of merging and fully integrating joinery, flooring and painting & decorating coverage into BCITO was essentially completed over 2014 and our challenge now is to broaden and enhance the range of services we provide for the betterment of the industry. Our relationships with ITPs and other training providers have improved enormously in 2014 due to the goodwill of all parties and a focus on positive outcomes for our learners and the industry. The New Zealand economy remains very strong with activity in the building sector forecasted to remain at elevated levels for at least the next two years. I endorse our CE and the team as they continue to develop ways to cooperate with other organisations. For example, our carefully cultivated relationships with schools have enabled the BConstructive programme to be adopted by 284 high schools nationwide. We are committed to do what it takes to provide for all those who need our services, no matter what situations they face. Our programmes strive to be sensitive to culture, socio-economic situation, age, community dynamics and degree of vulnerability. All receive the same commitment, excellence and outcome focus, regardless of their situation. Our place is not to judge – our place is to offer hope and practical solutions. As you will note, we are reporting a surplus in the 2014 financial year. This reflects the economic environment as well as the funding regime all ITOs are now operating in. The challenge is to make sure this is a continuing trend. Like any ITO, we have our challenges, but the goal is always to be resourceful and prudent with the funds that we have. We have had to balance this prudence while maintaining momentum in delivering our programmes and resources. I have every confidence in our CE that he has the balance right and, as you will read in these pages, there are truly exciting times ahead. It is important for me that I acknowledge our Board of Directors, each of whom is so committed to the vision and mission of BCITO. Accountability and transparency are vitally important and the Board takes this very seriously. This year we were pleased to add Kieren Mallon to our Board. His experience and wisdom will prove invaluable. At the same time we acknowledge the retirement of our longest serving board member, Peter Robson. In this report it’s not possible to fully outline the depth and breadth of the contribution Peter has made to the successes of BCITO since its formation some 22 years ago. His leadership during periods of considerable economic difficulty formed the solid foundation for the organisation we see today. To Peter, we can but extend a sincere expression of thanks, although this just does not seem to do justice for the sacrifices and contributions he’s made to BCITO and the building industry over many years. 2005 3,379 2006 2,863 907 2007 2,849 1,129 2008 2,089 2009 1,187 2010 1,832 2011 1,737 1,639 2012 2,083 947 2013 3,230 2014 4,591 1,156 KEVIN SCEATS (CHAIR), KIEREN MALLON, ROB GAIMSTER, DAVID FABISH, RON ANGEL, MIKE KING, GRANT FLORENCE. 3,770 3,978 3,245 2,379 1,192 New sign ups BOARD MEMBERS (L - R) 4,148 769 1,217 3,049 3,376 3,030 954 4,184 1,386 Re-signs TOTAL 5,977 7 8 BCITO ANNUAL REPORT 2014 OUR CHIEF EXECUTIVE BUILDING PEOPLE RUMA KARAITIANA CHIEF EXECUTIVE →→APPRENTICES WHO COMPLETED THEIR QUALIFICATION 2,572 2,309 2014 represented the second year of strong growth as the construction sector moved swiftly out of recession. We began 2014 with 7,914 people in training with BCITO and ended with 9,747. The Government Apprenticeship Reboot Subsidy added some momentum and was useful in advancing some of the new signings for 2014 before ending in December, adding to the growing demand from industry. 1,975 2014 was also the first year for our newly-merged BCITO. This involved a deliberate integration process with the Joinery ITO, DecorateNZ and FloorNZ throughout 2014. One of the big projects undertaken was the Review of Specialist Trades, which was conducted with stakeholders throughout the first 8 months of the year. The outcome of this was a decision to restructure BCITO and create a new division called the Stakeholder Engagement Group. Within this Group, we have created four new roles called Industry Advocates, with each Advocate having responsibility for the primary interactions with stakeholders within 1,671 1,715 1,699 1,399 1,321 1,048 822 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 a portfolio of trades and industry groups. We ended 2014 with this Group newly in place and look forward to seeing the enhanced results for industry in 2015. digital devices in future BCITO processes. Substantial progress was made in 2014 with decisions due in mid-2015. Another major 2014 project that emerged from the merger and review process has been the refreshment of the BCITO brand. This has been a deliberate process to reflect the brand perception of all stakeholders of the newly-merged BCITO, and to refresh the brand to suit the broader, more inclusive organisation. At the same time, the intention Increased numbers in training, merger integration and review, as well as refreshed branding and digital strategising have all required significant commitment and plain hard work from BCITO people during the year. The continuing work on reviewing qualifications in the second phase of the Targeted Review of Qualifications, is to modernise our look to present the brand better in a digital environment. Having completed much of the work in 2014, BCITO was geared to begin 2015 with a new web presence and a strong new marketing campaign. As it is a refreshment of the brand, some elements of the old branding will continue to live alongside for some time, but 20 newly-branded BCITO vehicles are already making a striking statement out on the roads. along with the consultation on the Review of Specialist Trades has been demanding of the time and goodwill of all National Advisory Group members and our industry partners. It is important to acknowledge that and thank you all, along with the Board of Directors, for the contribution made to BCITO’s ongoing success. Also of note has been the development of a BCITO Digital Engagement Strategy. This is a long-term piece of work which includes mapping out the probable entry into the world of e-learning, as well as greater use of apps and EXECUTIVE LEADERSHIP TEAM (L - R) BRUCE HORSLEY, GREG DURKIN, GLENN DUNCAN, ANDREW KEAR, RUMA KARAITIANA (CE). To all our apprentices, trainees, employers, evaluators, trainers and everyone out there who has supported BCITO in so many ways in 2014 - thank you for helping us to build people within our industry to be the best construction people they can be. 9 10 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE MOTORING AHEAD 2014 was an exciting and productive year for everyone at BCITO. Together as one, we worked to combine the collective talents and strengths of four ITOs and their teams. Our major accomplishment was the creation of the new BCITO; a single, dedicated construction ITO. All together, one canoe, no exception, we maintained momentum and achieved our objectives - preparing for an even busier 2015. 4,378 PEOPLE COMPLETED WORK PROFILES THROUGH BCITO.ORG.NZ TO START AN APPRENTICESHIP 30.6% EXCEEDED TARGETTED SIGN-UP NUMBERS EMPLOYEE ENGAGEMENT SATISFACTION RATING 2012 63% 2013 72% 2014 73% →BCITO’S MAJOR ACHIEVEMENTS OF 2014 →Proactively managed targeted and →Represented our stakeholders through industry ATargeted work with Māori and Pasifika resulting in improved outcomes for apprentices, significantly exceeding Tertiary Education Commission targets. ACompleted (seven month) intensive consultation process with industry and a comprehensive Review of Specialist Trades. AOptimised use of customer management system resulting in 5,977 apprenticeship sign-ups, exceeding our target of 4,575 by more than 30%. AEstablished the Stakeholder Engagement Group and appointed a dedicated team to ensure interaction with stakeholders is mutually beneficial. AIncreased number of schools offering BConstructive programme by 10%, and number of Gateway placements by 15.5%. →Maximised our people and our culture sustainable growth leadership for skills PARTICIPATION AND CREDIT COMPLETION RATES APPRENTICES ENROLLED IN QUALIFICATIONS AT LEVEL 4 AND ABOVE PARTICIPATION AIncreased web work profiles from apprenticeship seekers by 120%. 747 apprentices who signed up with BCITO in 2014 had previously registered their interest on BCITO.org.nz. AHelped find apprenticeships for 277 people through our dedicated job matching service. →Reviewed and refined our service delivery models to enhance customer satisfaction and educational excellence ADeveloped new learning and assessment resources for 6 qualifications. ACompleted research of core information and developed Digital Engagement Strategy to be implemented in 2015. as our strengths AAchieved secondary accreditation from ACC Workplace Safety Management Practices (WSMP). ASuccessfully integrated all staff into the new BCITO structure and culture post-merger. AImproved Employee Engagement Satisfaction rating across the organisation. AUndertook formal analysis of our brand, resulting in refreshed brand imagery – ‘Together as one’ became ‘Building People’. ALL APPRENTICES MĀORI PACIFIC UNDER 25 TARGETACTUAL 93% 95% 12%15% 4%5% 56% 62% CREDIT COMPLETION ALL APPRENTICES NON MĀORI & NON PACIFIC MĀORI PACIFIC UNDER 25 TARGETACTUAL 75% 100% 75% 102% 75%93% 75%94% 75% 87% 11 12 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE LOVE A CHALLENGE WE’RE BUILDING PROFESSIONALS FOR THE FUTURE, TODAY. While we celebrate the many achievements of 2014, we are always looking to improve our service and delivery. Our 2015 business plan outlines our key areas of targeted development for the coming year. Having a long-term, strategic approach to everything we do ensures we are all on the same path, with common goals - building professionals for the future, today. →Proactively manage targeted and →Provide our stakeholders industry leadership AUtilise data and research to develop comprehensive/ informed plan to guarantee a sustainable supply of quality apprentices and employers. AProvide regular, relevant information and advice to industry partners. sustainable growth ADevelop and implement a coordinated and cohesive sales plan that reflects the national marketing plan. ATarget career seekers to meet forecasted demand whilst working to lift Māori and Pasifika participation and completion rates. AComplete BCITO brand refresh and implementation across the organisation. →Review and refine our service delivery models to enhance customer satisfaction and educational excellence for skills while preparing for future changes in industry structure AEnhance relationships across industry stakeholders through implementation of our Stakeholder Engagement Plan. →Maximise our people and our culture as our strengths AContinue to place emphasis on recruitment, training and professional development, career progression and retention. ARefine health and safety policies and procedures to meet requirements of new legislation and target high risk areas – ensuring a high level of compliance. AContinue to enhance and develop resources and materials (including e-learning). AImplement new performance management system. AContinue research into advances and developments in technology in the education sector. AReview remuneration policies – ensuring they remain best practice. ADevelop customised and client-driven service delivery offerings to respond to individual trade needs. 13 14 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE ENCOURAGE CAREER SEEKERS Future-proofing our industry is the key driver behind everything we do. Building connections with schools, creating gateways for success and encouraging promising young career seekers into our industry is essential in order to meet our industry’s future needs. What I'd really like is to get a carpentry apprenticeship and become a builder. I was on the team that won the BCITO Build-Ability Challenge in 2014 – I loved it. We went hard out, spending every waking moment on our project. We knew we could achieve something really great if we put in the effort. We were all talented in different ways. I did all the hard yards and the heavy work. When we won the challenge the school held an assembly just for us. It was pretty cool - although we did have to lift our project on to the stage and it weighed a ton! Apart from the Build-Ability project, I also built my own guitar for a building competition for local secondary schools and I have started chainsaw carving – I got a chainsaw for my 18th birthday! WHERE TO NEXT? In 2015 we will continue to invest in promising career seekers like Callum with programmes that target schools and build pathways. A member of the winning 2014 Build-Ability team from Feilding High School, 18-year-old Callum Dicksbourne is an 'apprentice in waiting'. Building his skills 'on the tools', studying towards his restricted licence and registering as a career seeker with BCITO, Callum Dicksbourne can’t wait for his career to start. I wasn’t great at it when I first started out, but Mr Sigglekow saw something in me and encouraged me – got me focused and helped me hone the skills I had. One of the things I love about hands-on work is that there is always something to show for it. I get a real sense of pride looking at what I’ve created. I’m working on making myself job-ready. I've been doing Unit Standards with BCITO through the BCATS programme and getting some work experience with my dad. I really like the idea of an apprenticeship because I’ll be earning while I’m learning and I’ll be working with my hands to create something. For me, job satisfaction means working hard and being proud of what you have done at the end of every day. A bigger, better Build-Ability Challenge with 29 schools entered will engage a new cohort while the work profile on our website will continue to support our job matching service. Our research around BCATS will enable us to build a bridge between school and work and will highlight career pathways through BCITO. →→ NUMBERS OF STUDENTS ENROLLED IN BCITO’S GATEWAY PROGRAMME FOR SCHOOLS 2011 419 2012 483 2013 466 2014 538 “I GET A REAL SENSE OF PRIDE LOOKING AT WHAT I’VE CREATED.” CALLUM DICKSBOURNE. 15 16 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE BUILDING LEADERS OF THE FUTURE He might be newly qualified, but 26-year-old Shane Brunning of Quinn Rees Decorators Ltd in Christchurch has already painted his way to several prestigious industry titles and is well on his way to a colourful career. In 2013 I won the ‘CPIT Apprentice of the Year Award for Painting and Decorating’ and the ‘CPIT Māori and Pasifika Apprentice of the Year across all trades’. In 2014 I won the ‘New Zealand Decorating Apprentice of the Year’ award, sponsored by BCITO, Master Painters and Resene’. I think it’s important to be motivated and ambitious. I’m committed to building a successful career in the industry and I keep pushing myself to be better. Being taught well makes a big difference to how well you do your job. Quinn is a great mentor and a great boss; he makes it easy to learn. He knows what we are capable of and he’s got a way of supporting us to get there, to improve and to up-skill. He has confidence in us and that gives us confidence. If you want to be a successful apprentice you need to be willing to learn and be able to listen; watch what you’re being shown and pay attention - no matter who is showing you; and accept that we all learn from each other. Most of all, you need to be dedicated and be prepared to work hard. I’m currently working with an apprentice and I am really enjoying taking on a mentoring role. For me it is definitely important to pass on my knowledge and to carry on the tradition of training. It’s rewarding working in a job where you get to transform the whole look of a building. You’ve got to be prepared to keep up-skilling all the time; there’s a lot to learn if you want to be good at your job. Quinn’s business benefits from me winning awards - it’s used as a marketing tool. My next goal is to become a member of Master Painters. It’s important to build professional networks. Being a member of an association gives our clients an assurance and confidence in us as professionals. In 10 years’ time, I’d like to think I’ll be running my own business - maybe even taking over from Quinn!. I’d like to be part of the future of the industry. You’ll still find me on the tools though, I just really like what I do – but I’ll be the one doing the training! WHERE TO NEXT? BCITO will continue to support leadership and excellence in the field through our involvement in industry awards, our Outward Bound Scholarships, our Employer Development Grants and through the ongoing positive, supportive, relationships we have with our employers, trainees and industry groups. →→BCITO TRAINEE NUMBERS BY REGION 2010 2011 2012 2013 2014 1,091 1,057 929 1,058 1,384 SOUTH AUCKLAND 443 480 575 851 1,153 MIDLANDS 948 831 707 835 1,143 1,248 1,013 855 1,012 1,293 381 502 793 1,215 1,571 1,069 1,014 937 1,133 1,248 - - - - 1,955 5,180 4,897 4,796 6,104 9,747 NORTHERN CENTRAL CANTERBURY TASMAN SOUTHERN SPECIALIST TRADES GRAND TOTAL “BEING TAUGHT WELL MAKES A BIG DIFFERENCE TO HOW WELL YOU DO YOUR JOB” SHANE BRUNNING, QUINN REES DECORATORS LTD. 17 18 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE RESEARCH We undertook research about the journey to an apprenticeship in 2014. We wanted to find out more about where our apprentices came from, who they were, what they did before they signed up and to find the best way to reach more people like them using the most appropriate channels. WHERE DO BCITO APPRENTICES COME FROM? WHAT DO APPRENTICES PLAN TO DO NEXT AFTER THEY GET QUALIFIED? 22% JOBS OUTSIDE CONSTRUCTION INDUSTRY 66% CONTINUE IN THEIR CURRENT JOB 45% JOBS IN CONSTRUCTION INDUSTRY 32% PROGRESS TO SUPERVISION/MANAGEMENT 10% STUDY, TRAVEL, OR NOT IN PAID WORK 27% START THEIR OWN BUSINESS IN THEIR TRADE 14% SCHOOL 14% GO OVERSEAS TO WORK 9% PRE-TRADE COURSES 17% DO MORE ADVANCED STUDY 5% CHANGE TO A DIFFERENT CAREER 2% OTHER 3% DON’T KNOW WHAT DID BCITO APPRENTICES DO AS SOON AS THEY LEFT SCHOOL? 32% JOBS OUTSIDE CONSTRUCTION INDUSTRY 18% JOBS IN CONSTRUCTION INDUSTRY 10% TRAVEL, OTHER STUDY, OR NOT WORKING 9% ATTENDED UNIVERSITY 6% ATTENDED A POLYTECHNIC COURSE +44 COMBINED 14% STARTED THEIR BCITO APPRENTICESHIP +60 COMPLETERS +45 EMPLOYERS +26 THOSE WHO LEFT BEFORE COMPLETING 31% OF APPRENTICES TOLD US THAT THE MOST AWESOME THING ABOUT BEING A TRADIE IS SEEING THE FINISHED JOB AND KNOWING “I DID THAT”. 80% OF APPRENTICES SEE THEMSELVES TRAINING THEIR OWN APPRENTICE ONE DAY. We also regularly survey our apprentices and employers to see if we’re meeting their needs and they’re happy with our service. NET PROMOTER SCORES IN 2014 89% OF COMPLETED APPRENTICES AGREE “BEING A BCITO-QUALIFIED APPRENTICE MAKES ME FEEL QUITE PROUD”. 90% OF COMPLETED APPRENTICES BELONG TO A TRADE ASSOCIATION. “ACTIVE WORK THAT BEATS SITTING BEHIND A DESK AND A GOOD PAY RATE … WHAT’S BETTER?” SCOTT FINDLAY, SLAB SPECIALISTS. 19 20 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE CHAMPIONING MĀORI SUCCESS He kai kei aku ringa (There is food at the end of my hands) – we can use our skills/trades to provide for our whanau and in turn contribute to the industry and national economic growth – nowhere is this whakataukī more relevant or important than in our commitment to Māori success. During 2014, BCITO’s Māori Strategy Team worked with a number of Iwi Runanga; developing the structures needed to provide training programmes targeted specifically at Māori learners. AMore than 10% of Te Puni Kōkiri/BCITO cadets have signed up for higher-level/supervisor qualifications. These initiatives aim to support Iwi Authorities in training and investing in school leavers and career seekers; promoting social and economic development for all Māori. WHAT HAVE WE ACHIEVED? We worked collaboratively with a variety of Government agencies including TEC, Ako Aotearoa and the Ministry of Education to promote BCITO’s Māori Strategy. We were also invited to attend the Collaboration of Māori Investors for the Future Hui. We also worked alongside different Iwi Runanga (Ngati Te Roro o te Rangio Hapu, Trust/Rotorua, Anamata ki Whakatane Iwi, Marae Restoration & Papakainga Housing Projects) to support and implement learning pathways, promoting qualifications to Māori rangatahi/youth. Through the Te Puni Kōkiri/BCITO Cadetship Programme we continued our commitment to increasing both the participation and success of Māori in our industry. We closed 2014 with 95 Māori cadets from this programme placed with employers. AThe cadetship programme has supported us in building Iwi affiliations with Ngapuhi, Ngati-Porou, Ngai-Tuhoe, Tuwharetoa and Ngai-Tahu. AWe’ve continued strengthening relationships with Te Whare Wananga o Aotearoa, Ngati Whatua (Orakei – Auckland), Ngati Porou (Gisborne – East Coast), Ngati Whakaue (Rotorua). AWe’ve engaged with Māori-based Schools – Nga Taiatea Wharekura, Ngata College, Ruatoria. WHERE TO NEXT? In 2015 we are working towards: AFurther developing BCITO’s Tikanga Māori intranet page. AOngoing relationship building with external providers of training for Māori. AContinuing the up-skilling of our field staff and area managers in Tikanga and Te Reo. OUR HIGHLIGHTS IN 2014: AAligning more closely with relevant Government agencies. AOver 50% of cadets from the Te Puni Kōkiri/ BCITO Cadetship Programme have gone into full apprenticeships. AContinuing to investigate all avenues for funding to support Māori Scholarship programmes. AIncreasing participation in various working groups targeting Māori achievement. →→APPRENTICE ETHNICITY 2014 7,085 PAKEHA / EUROPEAN 1,575 MĀORI 477 PACIFIC ISLAND 234 ASIAN 376 OTHER 16% OF APPRENTICES IN THE CONSTRUCTION INDUSTRY ARE OF MĀORI DESCENT. 21 22 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE DIVERSE While the building and construction industry has historically been a male-centric one, BCITO always encourages and advocates for women in our sectors. If we have any chance of addressing the projected skills shortage in building and construction, then we need to continue to be inclusive. With a role model like Pippi Longstocking – the fearless, adventurous, assertive and fiercely strong girl who is hero of the much loved children’s book series - it’s easy to see why carpentry apprentice, Georgie Young, has thrown herself head first into what some might say is a man’s world. I guess I’m a lot like my mum, strongwilled. I used to see her working alongside Dad when they renovated, on the tools – Mum and Dad were always doing up houses. I guess that is why Mum is such a role model for me; she essentially had three jobs – working, renovating and raising a family. So my family were really supportive of me going into building – my dad said he couldn’t believe his luck! What I’ve learned is that I can’t be precious. If something is too heavy for me – I ask for help – but then if something is too heavy for one of the guys they do the same. I guess I don’t act any differently to the guys on the team – so there’s no reason for anyone to treat me any differently. My BCITO Training Advisor (Peter Thomasen) has been really supportive too. He has a lot of industry knowledge and I know I can always call him when I need anything. He also helps me maintain perspective. When he signed me up, he told me my gender wouldn’t be a problem. I really appreciate the confidence he has in me to do well. Before I started my apprenticeship, I was worried about taking on such a physically demanding job and that I wouldn’t be able to handle it. My idea of what a building site would be like was nothing like it actually was. Once I started, I loved it! I don’t know why there aren’t more women in the industry. I think that perhaps women just don’t know that it’s a possibility; but building is a great career for women and I think women make great apprentices. I’m also really grateful for all the support I get from Dale (my boss) and the huge scope of work he has allowed me to do. He really pushes me to do better and try new things to use my common sense and problem-solving skills. We’re able to admit when we don’t understand something which saves money and time and I think that we’re easier to teach; we’re less ‘proud’. Girls also have better communication skills, are tidier and girls look after the gear well. Gender doesn’t come into it, I’m just one of the team – and the guys I work with are amazing. Going into a trade you can’t lose. You get a qualification while you are earning a living and you are creating a future for yourself. “GOING INTO A TRADE YOU CAN’T LOSE. ONCE I STARTED, I LOVED IT!” →→TRAINEES BY AGE – ALL TRADES 2014 UNDER 18 341 18-24 4,917 25 - 39 40+ 3,695 792 GEORGIE YOUNG, SHEFFIELD CONSTRUCTION. 23 24 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE SUPPORTING EMPLOYERS Auckland builder and business owner, Ross Faulkner has been building people since he formed his company, Faulkner Construction, in 1981. With 4 current BCITO apprentices on his books, The bottom line for me is that good training leads to skilled staff. It makes good business sense and we also see it as a marketing tool and a selling point for our company. If an apprentice learns their trade well, it follows that they will end up highly skilled and will go on to consistently produce work to a high standard. A well-trained apprentice is an asset to your business. Seeing our apprentices complete their training gives us a real sense of personal satisfaction. They are gaining skills that will stay with them for the rest of their lives and help them earn a living – and we’re a part of that. BCITO’s training methods are a key part of that training. The training delivered through BCITO is very relevant - it covers all the bases. The resources are up-to-date and up with current trends and building standards. and 15 more completed and qualified over the years, Ross is an example of what can be achieved with a passion for the industry, a commitment to training and a partnership with BCITO. Working alongside BCITO has helped me grow my business and my networks. BCITO is about more than just training apprentices. As part of BCITO’s National Advisory Group I am meeting with other people who, like me, are passionate about our industry and invested in its future. Critically and strategically thinking about what’s important for our industry actually helps you to up-skill yourself. Sometimes it’s not you doing the learning, sometimes it’s you passing on some information to someone else – it goes both ways. Just meeting with other people who are in the same position as you, you always learn something. It’s good for me personally as well as for my business. Ross is currently serving on the Board of Auckland Master Builders, heads the Eastern branch of the Auckland Master Builders and is a member of BCITO’s National Advisory Group. The mentoring role of BCITO Training Advisors means that there is someone motivating, checking and monitoring my apprentices as a secondary line to me. WHERE TO NEXT? BCITO will continue to support employers throughout 2015 both in the field and beyond, with: AHelp finding an apprentice. AWorkplace Evaluator Training. AOn-site support for current apprentices. ASupervisor qualifications. AEmployer Development Grants. AExperience recognition. AIndustry updates (including compliance and Government initiatives). 52% of employers currently active in training plan to take on more apprentices in the next six months “BCITO’S ABOUT MORE THAN JUST TRAINING APPRENTICES. THEY’VE HELPED ME GROW MY BUSINESS AND MY NETWORKS.” ROSS FAULKNER, FAULKNER CONSTRUCTION. 25 26 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE LEARNING TOO LEARNING IS A JOURNEY THAT WE ALL TAKE TOGETHER. As an employer, a commitment to continued learning is a commitment to our own success. In 2014, BCITO teams supported 9,747 apprentices in their training. Like the people and the industry we support, our own people have spent 2014 learning, growing and gaining qualifications. Lily Xu is Assistant Accountant at BCITO’s national office. While working full-time balancing our books, Lily has studied for and passed her NZ Chartered Accountant exam. TRAINING ACTIVITIES UNDERTAKEN BY BCITO PEOPLE DURING 2014 I've been with BCITO for three and a half years, since I started my career in finance. I originally completed a Bachelor of Commerce and Accounting through Victoria University in 2008 and in 2010 I went back to uni' to complete my Graduate Diploma in Professional Accounting. Since I started with BCITO, I studied for and passed the NZ Chartered Accountant exam – I became fully qualified in October 2014. BCITO have been incredibly supportive on my journey to becoming qualified. I have been able to take advantage of their study assistance package which includes financial assistance and study leave. I would recommend continued study to anyone who wants to broaden their career prospects. It’s not always easy balancing full-time work with study but I definitely found that study helped me understand my work better and made me better at my job. It also gave me a huge sense of satisfaction when I reached my goal. WHERE TO NEXT? EFFECTIVE SPEAKING COURSES TIME MANAGEMENT TRAINING ST JOHN’S FIRST AID TRAINING FIRE WARDENS’ TRAINING ADVANCED DRIVER TRAINING SITE SAFE HEALTH AND SAFETY REPRESENTATIVE TRAINING VARIOUS IT COURSES It’s been really helpful to have so much information at my fingertips. When we were preparing the 2013 annual accounts, I had my study notes and research close at hand to help me work through some of the questions that came up. I have been able to apply everything that I learned during my study to my work at BCITO. One of the areas of study that really impacted me was ethics. Being ethical is obviously very important for an accountant but it’s also very important for me as an individual. I always keep my personal and work ethics front of mind when I’m working. PROFESSIONAL DEVELOPMENT →→NUMBER OF BCITO PEOPLE We are looking forward to continuing to support our staff as they work towards their career goals. Whether we are supporting IT skills or relationship management, first aid or advanced driving, National Certificate or personal development; learning is a journey that we all take together. All together, one canoe, no exception. Completing further study has definitely improved my practice and my productivity. It also helped to build my confidence and my skills in time management. I have learned new skills and techniques and because of that, we are investigating new accounting systems to make us even more efficient. 2010 2005 71 161 UNDERTAKEN BY BCITO PEOPLE IN 2014 2014 190 NATIONAL CERTIFICATE IN NATIONAL CERTIFICATE IN ADULT EDUCATION BUSINESS ADMINISTRATION UNIVERSITY PAPERS QUALITY ASSURANCE STUDIES 27 28 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE CELEBRATING An industry is only as good as the people who work in it. If 2014 is anything to go by, our industry is simply amazing. We love to celebrate success in our industry and to highlight the achievements of the people who make it great. BCITO works alongside our partners to celebrate our most talented apprentices. Congratulations to: ALUMINIUM JOINERY AND GLASS APPRENTICE AWARDS AWCI APPRENTICE CHALLENGE (INTERIOR SYSTEMS) → Mase Finau → Jeremy Boyles → Cody Blackford → Nathan Finlayson FLOORING APPRENTICE OF THE YEAR MASTER JOINER APPRENTICE AWARDS → Nathan Fell → Craig Hendry → Ethan Coles → James Coutts → Grant Bannister → Jack Robinson → Shane Pilkinton → Mohamed Valibhai → Brenda McKee → Andrew Duncan MASTER PAINTERS NEW ZEALAND APPRENTICE OF THE YEAR AWARD REGISTERED MASTER BUILDERS CARTERS’ APPRENTICE OF THE YEAR → Shane Brunning → Tom Southen → Michael Sims → Aaron Forrest → Kyran Vaniperen → Ryan Smith-Pilling Behind every great apprentice is a supportive employer. These successes are shared by our incredible employers who work hard each day to help each of our apprentices reach their full potential. WHERE TO NEXT? 2015 will see our apprentices continue to shine across our trades. They’ll compete with the best of the best and we’ll be there to cheer them on. By celebrating the individual successes of our outstanding trainees, we collectively raise the standards in our industries as we reaffirm our commitment to training and the future of our trades. “APPRENTICES WHO ARE WILLING TO STAND UP AND STRIVE TO BE THE BEST DEMONSTRATE THE EXCELLENT TALENT COMING THROUGH OUR INDUSTRY.” BRENDON WARD, CHIEF EXECUTIVE, REGISTERED MASTER BUILDERS. 29 30 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE LINKING WITH SCHOOLS →→BUILD-ABILITY 2014 MILESTONES Relaunched in 2014, the BCITO Build-Ability Challenge was a huge success, meaningfully connecting us with 8 schools from across New Zealand, their teaching staff and the career The BCITO Build-Ability Challenge is a nationwide, school -based competition, open to secondary school students. The Challenge, which originally ran from 2004-2009, is aimed at showcasing the achievements of students with skills in technology. For students, Build-Ability is all about having an opportunity to hone their building skills and get an insight into what it’s like to work in the construction industry. For BCITO, the competition is an opportunity to connect face-to-face with future career seekers and the mentors who influence their career decisions. As participation introduces career seekers to some of the trade skills they will need if they want to succeed in a construction career, it also helps to make participants ‘work ready’. “We were blown away by all the projects created,” said BCITO’s Bruce Horsley, part of the national judging panel. “The quality of workmanship and creative thinking that has gone into the work submitted for this year’s Build-Ability Challenge is great to see.” In 2014, Manawatu’s Feilding High School was announced the Supreme Winner with Manurewa High School taking out the ‘Best Video Entry’ award. All schools received certificates and a ‘team shout’ hosted by their BCITO Skills Broker. seekers they support. Their communities watched as the action played out online, in real time as teams planned, costed, designed and built a bespoke building project to BCITO’s brief. WE’RE MAKING AN IMPACT The Build-Ability Challenge was well publicised and featured in national newspapers as well as online. The largest amount of press coverage was generated through regional publications that feature local interest stories. Coverage was generated through BCITO’s own PR releases and participating schools own promotion of their projects. 102 BCITO BUILD-ABILITY FACEBOOK ‘LIKES’ FROM MAY – SEPTEMBER 2014. 569 LIKES, SHARES OR COMMENTS ON THE BUILD-ABILITY COMPETITION POSTS EACH WEEK. 13,636 PEOPLE VIEWED CONTENT ASSOCIATED WITH THE COMPETITION EACH WEEK. The competition’s social media element and ‘people’s choice award’ opened a dialogue between BCITO and the schools and their wider communities as the teams documented their progress and learning, blogging on the newly created BuildAbility website. Build-Ability also provided students with a chance to be the heroes of their school campus and local community with a focus on giving back. Creating projects to raise money for local community groups, students developed self-confidence, self-esteem and a sense of ambassadorship for their school. Each team, and their mentoring teacher, was supported by a BCITO Skills Brokers which made Build-Ability a great opportunity to see BCITO people at work in the community - building relationships and brand awareness and creating stronger links between secondary education and training for a future career. WHERE TO NEXT? We are delighted to announce that BCITO will be hosting the Build-Ability Challenge again in 2015 - this time on a much larger scale - with 29 schools already selected and raring to go. BCITO’s Build-Ability Challenge is back and here to stay! “WE WERE BLOWN AWAY BY ALL THE PROJECTS CREATED.” BRUCE HORSLEY, BUILD-ABILITY JUDGING PANEL. 31 32 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE CONNECTED +77% 140 WEB REGISTRATIONS OF BCITO’S LOOKING FOR WORK FORM - GENERATED DIRECTLY FROM SOCIAL MEDIA CHANNELS TWITTER FOLLOWERS Our stakeholders are as varied and diverse as the industry itself; so the ways in which we connect with them, need to be just as diverse. We used emails, websites, social media and traditional print media to share industry news, celebrate success and promote our industry to potential career seekers, employers and apprentices. NEWSLETTERS WEBSITES HIGH VIZ is BCITO’s e-newsletter targeted at our industry’s professionals. It’s intended to bring industry news and updates direct to your inbox. High Viz was both a cost-effective and direct way of communicating with our wider industry in 2014. Published 4 times in 2014, the e-communication was read by over 57% of our targeted stakeholders. BCITO.org.nz and GETREAL.co.nz are primarily focused on showcasing BCITO’s professional trade careers. 2014 marks the year for the most online activity for BCITO ever, up 30% on 2013. Just about everything we did had digital roots, and it was effective. In 2015 HIGH VIZ will be replaced by a new, targeted e-newsletter for each of our different sectors. These will contain information and updates that are both industryspecific and relevant industry-wide. Our social platforms continue to be an essential tool in our engagement tool-belt. In 2014, the BCITO Apprentice Facebook page reached over 8,000 people – one of the largest online construction communities in New Zealand. BCITO’s primary printed newsletter, BC News went out to all BCITO employers, apprentices, affiliated industry associations, merchant partners and schools, 3 times in 2014. This provided us an opportunity to profile successful apprentices, promote scholarships, grants and incentives, deliver industry news and celebrate completions. Facebook, YouTube, Twitter and Instagram continue to be powerful engagement tools, especially with career seekers and apprentices in the youth market. Used as an avenue to promote events, share industry news, run competitions, or just share a joke, these channels help us to widen our client base and build connections. YOUTUBE SUBSCRIBERS SOCIAL all sectors. It will be published bi-annually. →→WEBSITE TOTALS – ALL WEBSITES WEBSITE SESSIONS WORK PROFILES/ 125,104 4,378 REGISTRATIONS 81,415 1,719 55,329 2012 2013 2014 FACEBOOK LIKES +96% In 2015 BC News will continue to profile success across (TOTAL VISITS) +15% 2012 1,986 2013 2014 +18.7% MONTHLY REFERRALS FROM ALL SOCIAL CHANNELS TO BCITO.ORG.NZ 81% EMPLOYERS READ BC NEWS 77% APPRENTICES READ BC NEWS 33 34 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE RELEVANT In 2014, our qualifications team collaborated with and advocated for our industry people. We continued to work for our stakeholders to provide up-to-date, relevant and compliant qualifications. This helps to create meaningful learning experiences and outcomes; to build professional people. In 2014, we pressed on with phase two of NZQA’s targeted review of qualifications (TRoQ), resulting in the development and refinement of specifications aligned to qualifications in: We carried out reviews for other sectors based on Unit Standards, and made submissions to NZQA for: ACarpentry. AGlass and Glazing. AStonemasonry (including construction stonemasonry, monumental masonry and natural stone fixtures and fitting). AArchitectural Aluminium Joinery. ATrowel Trades (including brick and block laying, tiling, solid plastering, proprietary plaster cladding systems, ferro cement tank manufacture, and refractory installation). AInterior Linings (including fixing and finishing plaster board, fibre cement linings and fibrous plaster). AInterior Proprietary Systems (including suspended ceilings and proprietary partitions). AFibrous Plaster Manufacture. We consulted diligently in both the Carpentry and Stonemasonry sectors before submitting new ‘New Zealand Certificate’ documentation to NZQA for their analysis and consideration prior to inclusion on the qualifications framework. AJoinery. APainting and Decorating. We also rolled out improved manuals for a number of qualifications across concrete trades, a supervisor qualification, and frame and truss detailing. WHERE TO NEXT? 2015 is going to be another busy year for qualification review and development work, including associated materials and resources. We’ll be consulting with industry groups from trowel trades, interior linings, interior proprietary systems and fibrous plaster, prior to submissions being made. We have an exciting year ahead and we look forward to a number of significant projects coming to fruition. “B CITO HAVE THE FORMAT AND THE STRUCTURE RIGHT, THE CONTENT IS GOOD AND ALWAYS IMPROVING.” VINCE TROAKE, TROAKE GROUP LIMITED. 35 36 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE WE’RE MEETING NEW PEOPLE Engaging with industry and promoting the benefits of training is an important part of what we do at BCITO and is one of the most satisfying parts of the job. Our Training Advisors are on the road, visiting Our teams have also worked together to host breakfast meetings and morning teas, and have been active behind the podium – giving keynote speeches and facilitating conference workshops. people at building sites, workshops and factories every single day across every part of New Zealand. We attended, supported, facilitated, sponsored and initiated over 75 events during 2014 and employed a dedicated event support person to ensure that they all ran smoothly. INDUSTRY CONFERENCES A Master Painters New Zealand Conference – Dunedin A Registered Master Builders Conference – Taupo ROADSHOWS A AWCI Conference – Queenstown A Brick and Block – 15 locations nationwide A NZ Concrete Industry Conference – Taupo A Resene Roadshow – 16 locations nationwide A BSM Roadshows – 34 locations nationwide TRADESHOWS A BuildNZ DesigneX – Christchurch CAREERS EXPOS AND CONFERENCES AMore than 50 regional careers expos in schools and community hubs AGot a Trade? Got it Made! Expo – Auckland, Hamilton, Wellington, Christchurch ACATE (Careers Advisors and Transition Educators) Conference – Tauranga WHERE TO NEXT? In 2015 we will increase our participation and engagement at tradeshows, conferences, expos and roadshows – raising brand awareness and establishing relationships as we promote the benefits of training to people in our industry and those we want to encourage to join. To date we have over 100 events scheduled throughout 2015 and this number will rise as the year progresses. ENGAGING WITH INDUSTRY IS THE MOST IMPORTANT PART OF WHAT WE DO AT BCITO. 37 38 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE FINANCIALS CLEAR AND SIMPLE TOTAL OPERATING INCOME →→ 2014 $000 5000 $32,908,000 OPERATING SURPLUS 2013 $000 2012 $000 2011 $000 TOTAL EXPENDITURE $27,843,000 OPERATING SURPLUS $ 5,065,000 2010 $000 →→ MONEY IN 5,065 4000 3000 SUBSCRIPTIONS AND FEES 2000 1000 GOVERNMENT GRANTS 696 -1000 INTEREST -2000 (3,044) -3000 (2,768) SUNDRY INCOME TOTAL OPERATING INCOME -5000 HOW WE USED OUR RESERVES →→ SCHOLARSHIP AND EMPLOYER DEVELOPMENT FUND ICT AND E-LEARNING DEVELOPMENT FUND CONTINGENCY RESERVE FUND $1,095,000 $32,908,000 $2,435,000 $14,690,000 $2,582,000 OPERATING EXPENSES $9,330,000 ADMINISTRATION EXPENSES $3,823,000 $3,000,000 $7,811,000 TOTAL EXPENDITURE TOTAL SPECIAL AND RESERVE FUNDS $544,000 MONEY OUT PERSONNEL EXPENSES LEARNING SUPPORT FUND $23,994,000 (3,429) -4000 →→ $7,276,000 $ 15,828,000 $27,843,000 39 40 BCITO ANNUAL REPORT 2014 AUDITOR’S LETTER BUILDING PEOPLE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2014 2014 $000 2013 $000 Operating Income Subscriptions and Fees Government Grants Interest Sundry Income TOTAL OPERATING INCOME 7,276 5,745 23,994 13,458 544381 1,095 589 32,908 20,173 Expenditure Personnel Expenses 14,690 10,490 Operating Expenses 9,330 5,960 Administration Expenses 3,801 3,007 22 20 27,843 19,477 5,065 696 Other Expenses TOTAL EXPENDITURE OPERATING SURPLUS Interest from Special and Reserve Funds 272 151 (175) (316) 97 (165) 5,162 531 OTHER COMPREHENSIVE INCOME 33 - TOTAL COMPREHENSIVE INCOME 5,195 531 Expenses from Special and Reserve Funds SPECIAL AND RESERVE FUNDS SURPLUS FOR YEAR 41 42 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE STATEMENT OF CHANGES IN EQUITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2014 AS AT 31 DECEMBER 2014 2014 $000 2013 Surplus for the Year Other Comprehensive Income Transfer to Special and Reserve Funds CLOSING RETAINED EARNINGS - - 5,162 531 33 - (5,195) (531) - - Special and Reserve Funds Opening Special and Reserve Funds Interest on Special and Reserve Funds Special and Reserve Funds Expenditure Transfer from Retained Earnings 10,633 2013 $000 $000 ASSETS Retained Earnings Opening Retained Earnings 2014 $000 10,102 272 151 (175) (316) 5,098 696 Current Assets Cash and Cash Equivalents Term Deposits 1,037 3,622 20,500 10,500 1,804 1,486 Trade Debtors and Other Receivables Prepayments 288 187 Resource Production Inventory 140 378 Interest Receivable 320 90 24,089 16,263 TOTAL CURRENT ASSETS Non-Current Assets Property, Plant and Equipment TOTAL TRANSFER FROM RETAINED EARNINGS 15,828 10,633 Intangible Assets CLOSING SPECIAL AND RESERVE FUNDS 15,828 10,633 TOTAL NON-CURRENT ASSETS TOTAL MEMBERS' EQUITY 15,828 10,633 TOTAL ASSETS 733 184 94 201 827 385 24,916 16,648 LIABILITIES Current Liabilities Trade Creditors and Other Payables 8,059 5,387 Employee Entitlements 1,029 595 Joint Venture - Qualifications - TOTAL CURRENT LIABILITIES NET ASSETS 33 9,088 6,015 15,828 10,633 MEMBERS' EQUITY Retained Earnings - Special and Reserve Funds TOTAL MEMBERS' EQUITY CHAIRMAN OF BOARD OF DIRECTORS CHIEF EXECUTIVE 7 APRIL 2015 7 APRIL 2015 - 15,828 10,633 15,828 10,633 These summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial statements which are available on request from BCITO. 43 44 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2014 FOR THE YEAR ENDED 31 DECEMBER 2014 2014 $000 Net Cash Flows from Operating Activities Net Cash Flows from Investing Activities Net Cash Flows from Financing Activities NET (DECREASE) / INCREASE IN CASH HELD 2013 $000 8,285 862 (10,870) 935 - - (2,585) 1,797 Add Cash at start of year 3,622 1,825 CASH BALANCE AT END OF YEAR 1,037 3,622 Cash and Cash Equivalents include: Cash and Bank Short Term Deposits Less Short Term Deposits held for more than 90 Days TOTAL CASH BALANCE REPORTING ENTITY These financial statements are for the Building and Construction Industry Training Organisation (BCITO) (previously known as the New Zealand Federated Builders and Contractors Industry Association of Employers (Inc)). training for trainees within the trades of carpentry, interior systems, solid plastering, floor and wall tiling, cement and concrete work, brick and block, monumental masons, proprietary plaster cladding systems, architectural BCITO is registered as a charitable entity under the Charities Act 2005 on 13 March 2008 and is exempt from paying income tax. aluminium joinery, flooring, glass and glazing, timber joinery, kitchen and bathroom design, and painting and decorating. In addition the BCITO places great emphasis on safety within the industry through a range of nationally recognised health, safety and injury prevention qualification. The BCITO is recognised by the New Zealand Qualifications Authority as the standard setting body for the carpentry and associated trades within the building and construction sector. Rather than making a financial return, it operates to promote and facilitate industry training within the building and construction industry and provides nationally recognised The financial statements of BCITO are for the period ended 31 December 2014. The financial statements were authorised for issue by the Board on 7 April 2015. BASIS OF PREPARATION 1,022 3,607 20,515 10,515 (20,500) (10,500) 1,037 3,622 (a) Statement of Compliance and liabilities that have been measured at fair value. The summary financial statements have been prepared in accordance with FRS 43 – Summary Financial Statements and have been extracted from the full financial statements. The full financial statements have been prepared in accordance with the New Zealand equivalent to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for a Tier 1 public benefit entity as defined by the External Reporting Board in its Accounting Standards Framework (XRB-A1). Accrual accounting is used to recognise revenue and expenses. BCITO is defined as a Public Benefit entity as its primary objective is to provide services for community or social benefit and the entity has been established with a view to supporting that primary objective rather than for financial return. The balances in the full financial statements have been audited and an unqualified opinion has been issued. These summary financial statements do not include all the disclosures provided in the full financial statements and cannot be expected to provide as complete an understanding as provided by the full financial statements which are available on request from BCITO. (b) Basis of measurement The Financial Statements have been prepared on a historical cost basis, except for financial assets The Financial Statements have been prepared on a going concern basis. (c) Presentation currency The Financial Statements are presented in New Zealand dollars ($), which is BCITO’s functional currency. All financial information presented has been rounded to the nearest thousand. (d) Accounting policies The accounting policies adopted in the financial statements for the year ended 31 December 2014 are consistent with those of the previous financial year, except that the BCITO has adopted new and amended New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations since 1 January 2012. The accounting policies applied in preparation of the financial statements have been disclosed in the full financial statements. To ensure consistency with the current year certain comparative information has been restated or reclassified as appropriate. 45 46 BCITO ANNUAL REPORT 2014 BUILDING PEOPLE OPERATING LEASE COMMITMENTS RELATED PARTY TRANSACTIONS FOR THE YEAR ENDED 31 DECEMBER 2014 FOR THE YEAR ENDED 31 DECEMBER 2014 Terms of the accommodation leases are different at each location. Costs shown are GST exclusive. Related parties arise when an entity or person(s) has the ability to significantly influence the financial and operating policies of the group. 2014 $000 2013 $000 Not later than one year 717 625 One year and not later than two years 618 526 Two years and not later than five years 724 1,078 Over five years TOTAL ACCOMMODATION LEASE COMMITMENTS - 2,059 PARENT AND ULTIMATE CONTROLLING PARTY The Building and Construction Industry Training Organisation is the ultimate controlling party of the BCITO. 47 KEY MANAGEMENT PERSONNEL Key management personnel include members of the Board, executive officers and other key management personnel. RELATED PARTIES BCITO has a related party relationship with its board members, key management personnel and association members. Other than transactions with key management personnel (disclosed below) there have been no other transactions with related parties in the year (2013: $Nil). - 2,229 2014 $000 2013 $000 Operating leases in respect of leased equipment and motor vehicles for regional training staff are as follows: 2014 $000 Not later than one year 2013 $000 1,249 1,118 One year and not later than two years 959 985 Two years and not later than five years 188 730 2,396 2,832 TOTAL EQUIPMENT AND VEHICLE LEASE COMMITMENTS Board Member Fees Salaries and other Short-term Employee Benefits Total remuneration paid to key management personnel is made up of short-term employee benefits and no other post-employment benefits, termination benefits or longterm benefits arrangements have been expensed in the years reported. 44 23 946 751 OTHER RELATED PARTY TRANSACTIONS Except as stated above there are no other related party transactions. SUBSEQUENT EVENTS There were no significant events after balance date requiring reporting or adjustment in these financial statements (2013: $Nil). MERGER On 1 January 2014, BCITO merged with the Joinery Industry Training Organisation and the NZ Flooring Industry Training Organisation. Both ITOs transferred their industry training business, assets and liabilities to BCITO. Funds introduced as a result of the merger totalled $33,035 (2013:$Nil). 2014 $000 2013 $000 Accounts receivable 250 - Other current assets 110 - 20 - Plant and equipment Liabilities FUNDS INTRODUCED (347) - 33 - 48 BCITO ANNUAL REPORT 2014 HE AHA TE MEA NUI O TE AO? HE TANGATA! HE TANGATA! HE TANGATA! WHAT IS THE MOST IMPORTANT THING IN THE WORLD? IT IS PEOPLE! IT IS PEOPLE! IT IS PEOPLE!
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