ANNUAL REPORT
VISION
VALUES
Building professionals for the
Professionalism
Adding value and innovation
future, today.
Leadership
Investing in people
PASSION
Responsiveness
Team Work
Integrity and fairness
Quality Assurance
Leading the construction industry
to create the best skilled people
for tomorrow.
Excellence in customer service
CONTENTS
WHAT WE DO
3
CHAIR REPORT
4
CEO REPORT
5
A FUTURE IN FOCUS
6
A NOD TO THE PAST
7
SUCCESS ON THE RECORD
8
SUCCESS WITHIN THE INDUSTRY
10
STANDARDS LEADERSHIP
12
OUR LEADERS OF TOMORROW
14
MEET THE INDUSTRY
16
PERFORMANCE IN NUMBERS
18
SUMMARY FINANCIAL STATEMENTS
20
AUDITOR’S LETTER
20
STATEMENT OF COMPREHENSIVE INCOME
21
STATEMENT OF CHANGES IN EQUITY
21
STATEMENT OF FINANCIAL POSITION
22
STATEMENT OF CASH FLOWS
22
OPERATING LEASE COMMITMENTS
24
RELATED PARTY TRANSACTIONS
24
25
1
2011
BCITO ANNUAL REPORT
2011 STAFF FORUM
BCITO ANNUAL REPORT
2011
2
WHAT WE DO
CEO
Ruma Karaitiana
Group Manager
Standards
Leadership
Andrew Kear
We support trainees and their employers to ensure the
professional perception of our sector is maintained.
We plan for future skill needs.
The BCITO’s core function is to be the standard-setting body for
the building and construction sector. We are the organisation
appointed by Government to lead skills strategy, arrange
training and develop industry qualifications for the sector.
Specifically, the BCITO sets standards for the following
industries:
• Brick and Blocklaying
• Interior Systems
• Carpentry
• Masonry
• Concrete
• Proprietary Plaster
Cladding Systems
• Tiling
• Frame and Truss
Manufacture
• Architectural
Technology
• Solid Plastering
• Construction
Management
• Quantity Surveying
We work closely with committed industry representatives
by listening, taking advice, continually evolving and improving
Qualifications
Manager
Richard Robyns
HR Manager
Amanda
Herron-Quan
IT & T Manager
Maria Durkin
Northern Area
Manager
Glenn Duncan
Central Area
Manager
Richard Mason
Quality &
Moderation
Manager
Jane Buchanan
Programme
Manager
Derek Cooper
Finance Manager
Yulin Yu
Midlands Area
Manager
Tony Love
Southern Area
Manager
Richard Willis
Training &
Development
Manager
Mike Patchett
Marketing &
Communications
Manager
Andrew Robertson
Business Support
Manager
Claire Glynn
Our organisational structure at a glance
our service. This enduring engagement means we achieve
the objectives set out in the Industry Training Act. We produce
qualifications that are fit for purpose.
Once developed, we implement these qualifications across
our sector. The BCITO supports industry employers and
businesses to ensure their trainees learn valuable skills
on the job, and achieve nationally-recognised qualifications.
Our committed team of 140 people across the country is
passionate about the construction industry and the part it
plays in New Zealand’s future.
The BCITO national office is located in Wellington CBD, and
supports offices in Albany, Auckland, Hamilton, Whangarei,
Tauranga, Whakatane, Napier, New Plymouth, Palmerston
North, Wellington, Lower Hutt, Nelson, Christchurch,
Dunedin, Invercargill and Queenstown.
Our nationwide presence makes it simple for employers
in the construction sector to become involved in industry
training and inspire their staff to become outstanding building
professionals.
We have a long and well-regarded history of working with
industry bodies and employers, schools and career advisors
to promote the building and construction trade and to ensure
young people are encouraged to choose and develop a career
in our industry. Our advocacy role is one we are very proud
of and is made possible through the support we receive from
government and industry.
The BCITO is thrilled to work in partnership with industry to
place skilled and qualified professionals into our workforce,
now and in the future.
3
2011
BCITO ANNUAL REPORT
At the BCITO we strive to deliver skilled professionals
into New Zealand’s building and construction sector.
In partnership with our employers, training providers
and apprentices, we are committed to developing,
promoting and coordinating high quality, relevant
and future-proof training programmes.
Group Manager
Apprenticeship
Training
Bruce Horsley
Group Manager
Support Services
Paul Mitchell
CHAIR REPORT
Kevin Sceats
BCITO Board Chairman
2011 brought many challenges, including terrible
earthquakes, Government reviews and slow industry
demand. But this adversity has presented opportunity,
particularly with respect to how industry, Government
and training establishments have pulled together in
preparation to rebuild Canterbury.
In terms of challenges, the NZ Qualifications Authority
commenced a ‘Targeted Review of Qualifications’ in 2011.
This will continue to place pressure on our resources for
the foreseeable future.
Towards the end of 2011, the Ministry of Education issued
a discussion document titled ‘Review of Industry Training’.
This proposed changes to the skills leadership and standardsetting roles of ITOs which are fundamental roles bestowed by
the Industry Training Act 1992. We recognise that governance
of ITOs needs to be addressed by more involvement by
industry in qualification development, building on our current
model of workplace-based learning.
BCITO ANNUAL REPORT
2011
Despite these challenges, we achieved what I believe is a
fair financial outcome in 2011.
The support of our stakeholders gave us confidence to
respond positively to the demands of the TEC, NZQA and
the Ministry of Education. Such support has also enabled
investment in our ICT Upgrade Project and investment in
social capital, developing our staff, keeping them safe and
assisting our communities.
4
The BCITO performs well when considered against the TEC’s
Education Performance Indicators. Credit achievement was
100% in both 2009 and 2010, against an average across ITOs
of 50% and 53% respectively. Programme completions were
89% in 2009 (all-ITO average 41%) and 100% in 2010 (average
55%). This result reflects the quality of our people, our drive
for excellence and our collaborative approach.
The Christchurch team has endured three major earthquakes
and over 8000 aftershocks since September 2010. Some have
lost their homes, friends and property. We will continue to
support them and also support the recovery efforts for the
Canterbury community.
The earthquakes elicited a strong social response, what we
call manaaki tangata; caring for the people. This reiterates
the need to nurture relationships with our community. Our
contribution to the Canterbury Employment & Skills Board
is one example of this commitment.
BCITO stakeholders are committed to industry training and
have spent two decades developing a system that works.
We are also a major part of the Built Environment Training
Alliance; seven ITOs which provide a powerful vehicle for skills
leadership collaboration.
I am proud to say the BCITO team also made a significant
contribution to the Construction Sector Productivity
Partnership – Skills Strategy document, with implementation
to be launched in 2012.
This year the Board and executive team have regularly
reviewed performance and established the strategic
direction of the BCITO. The Audit committee met regularly
with the senior executives and auditors under the capable
chairmanship of Mike King.
As we enter a new financial year, we see economic and
political settings unfolding which will help us achieve our
goal; to develop a robust building and construction industry.
We also recognise that the lingering impacts of the economic
crisis will put pressure on spending in both public and private
sectors.
On behalf of the BCITO Board I wish to thank our partners
in government, industry, and the wider community who give
us their support. We thank our own people whose dedication
and professionalism underpin our value to our industry and
New Zealand.
Kevin Sceats
Chairman
CEO REPORT
Ruma Karaitiana
BCITO CEO
Despite a tremendous effort by BCITO people in 2011, we slid
back further on some critical metrics. The most significant of
these are our total numbers in training. We started 2011 with
5,555 people in training, but we ended the year with 5,035.
However, these numbers hide a weighty achievement. Despite
incredibly difficult conditions where employers were reluctant
to hire new people and put on new apprentices, we achieved
3,445 signups in 2011. In terms of new people entering
training, this is our best achievement since the 2007
calendar year.
Remarkably, we also guided 2,284 people to complete their
qualifications in 2011. This great result also contributes to
the decrease in total training numbers.
These figures illustrate a different sort of achievement with
respect to Government targets. The BCITO achieved 100% on
two important TEC measures; Achievement of Credits, and
Completion of Programmes. We therefore finished 2011 with
no trainees classified as over-duration.
This success is attributable to our three-year educational
quality improvement programme which includes:
• the introduction and implementation of a new
assessment and moderation model;
• the introduction of new improved learning and
assessment resources;
But now we must look forward to the monumental challenges
we’ve to overcome with a yet-to-ignite building industry.
We are ready to face these, and the eventual boom which must
happen. In preparation for this, the Board and the Executive
Leadership Team undertook extensive strategic planning to
re-focus the BCITO’s direction.
• significant up-skilling and retraining of staff;
“Building professionals for the future, today” encapsulates our
new focus.
• the introduction of new learner support mechanisms
including trainee achievement tracking and risk profiling;
We advocate for a more professional, more productive and
more sustainable industry post 2012.
• enhanced literacy, language and numeracy support and
intervention.
With a lean, proactive and skilled team of dedicated
people, I have no doubt the BCITO will continue to
progress our industry.
In light of these results, I would like to acknowledge and thank
all BCITO people; you have persevered and succeeded through
a turbulent period of recession and change.
Special mention must go to our Christchurch-based people
who maintained their contribution in an even more difficult
environment. On top of our Christchurch offices being closed
due to earthquake damage, many have faced damage to
their homes.
Ruma Karaitiana
CEO
5
2011
BCITO ANNUAL REPORT
2011; another year of recession and challenge for
both the construction industry and for industry training.
It was a year fraught with frustration as the whole country
watched Christchurch, waiting to see any significant sign
of activity which would lead the construction sector into
recovery. The reality is that 12 months down the track,
we watch and wait with the same expectations for 2012.
A FUTURE IN FOCUS
Our new strategic direction
In 2011, the Board and Executive Leadership Team undertook a comprehensive planning process to refocus BCITO’s priorities. Below is the outcome of this work, which has introduced a new
vision and seven distinct areas of attention for the BCITO in coming years. This fresh focus reinvigorates our organisation from the inside-out. The new vision sets an auspicious challenge to
re-position both the BCITO and careers under our coverage. Professionalism will be key.
BCITO Vision: Building professionals for the future, today
Shaping Future Demand
Creating Pathways
Achieving Aspirations
Working in partnership with the industry to meet future
demands for skill and labour
Developing the best career pathways to being a building
professional
Industry training is a bloody good experience for both the
employer and the trainee
Customer
Best in the World: Making it really easy for employers in inspiring people to become outstanding building professionals
★★★★★
★★★★
★★
★
Forecasting
Stakeholder
engagement
Capacity
Cost
Alignment to
occupational roles
Offerings
Offerings
Offerings
★★★
Fit for purpose
Consistency
Factors of competition
Factors of Competition
Apprentice
availability &
suitability
Learner
motivation
Learners
on track
Ease to do
business with
Factors of Competition
Process
Sector Leadership
BCITO ANNUAL REPORT
2011
Identify
industry
needs
Engage
industry as
advocates
Standards Development
Influence
government
policy
Learning & Growth
Align qualifications
to career pathways
2. Enhance formal engagement so industry feel informed, listened
to and engaged as advocates
6
Moderate
assessments &
maintain quality
Match trainee,
employer &
qualification
Guide, mentor
& support
Assess
competence of
trainee
Passion: Leading the construction industry to create the best skilled people for tomorrow
1. Strengthen our ability to predict future industry demand and its
effect on BCITO
3. Proactively shape the future of industry training
Develop
standards
& learning
resources
Arranging Training
4. Develop options as to how trainees receive learning and
assessment resources, including self-paced learning for above
level 4 qualifications
5. Improve our capability to match trainees with target employers
including promoting building as a professional career and
advising employers on business development
6. Utilise the field staff to encourage trainees to pursue high
level qualifications
7. Develop “My BCITO” to allow both employers and trainees
to readily access learning and administration details
A NOD TO THE PAST
Our strategic theme – to be the ITO that is easiest to deal with, providing the most
productive training approach and the best service experience in the industry training sector.
2011 Strategic Goals
2011 Outcomes
1 SIGN-UP, PROGRESS
AND COMPLETION
Despite one of the most challenging years for New Zealand construction
ever, the BCITO team produced an amazing result for industry training.
Training Advisors, Skills Brokers and Business Development teams were set
an ambitious task of injecting 4000 people into training over the year,
a number which would have been difficult to achieve even at the height of
New Zealand’s building boom. Although just short of target, 3,445 people
were signed into training agreements, highlighting the success of our
consultative approach towards employers.
Just as important as those commencing training are those completing.
Satisfyingly, 2,246 newly-skilled and qualified people entered the industry
in 2011; substantially more than forecast. This reflects the success of the
BCITO training model and mentoring skills of our Training Advisors.
To ensure a level of new
apprentice/trainees to
meet future industry
needs are signed up and
who achieve a timely
progression through a
chosen programme to
become qualified trades
people
2 REFINING &
IMPROVING
ASSESSMENT
To embed the model
of Training Advisor
as assessor within
an Assessment Team
and continue to build
capacity and capability in
assessment principle and
practice
3 ICT STRATEGY
To provide the organisation
with the ICT tools and
systems that will best
assist us to fulfil our
business strategies and
plans, now and into the
future
BCITO Training Advisors have been the principal assessors in Carpentry
for more than two years. During that time intensive support and training
have produced a team which is highly confident and capable.
The concept of the Assessment Team – in which the employer plays a key
role as evaluator and the trainee is encouraged to take an active role in
the assessment process – is now well developed and producing excellent
outcomes.
During 2011, we gained consent from most of the specialist trades covered
by the BCITO to extend the Assessment Team model to their qualifications.
In the initial stages of implementation, we made use of a register of
specialist assessors as we built capability across the entire group of
assessors.
The mandatory introduction of the Industry Training Register, a system
that directly links all ITO Trainee Management Systems to the Tertiary
Education Commission’s database, absorbed a great deal of our ICT focus
and resources in 2011.
Despite this, we made significant progress in moving to a new Trainee
Management System which will provide greater access to information and
efficiency to our field staff. This project will be completed in 2012.
We continued to roll out new IT tools across the organisation and developed
an intranet to improve communication and give better access to resources
and information.
2011 Outcomes
4 STAKEHOLDERS
In 2011 we worked closely with customers and stakeholders to exceed their
expectations of the sector information provided by the BCITO.
Demand forecasting was identified as a key area of relevance and formed
the basis of a communications programme. Information was sourced and
delivered to industry through a variety of mediums including a national
roadshow, a telemarketing campaign, our Trade Publications Campaign
and media releases.
43 qualification advisory group & working party meetings were also held
across the country specifically for qualifications development and to gain
industry contribution and feedback.
Stakeholder and customer sentiment towards the information and
engagement provided by the BCITO was tested in the annual Customer
Satisfaction Survey, where scores were consistently impressive.
For example, the vast majority of customers felt they were engaged by
the BCITO and trusted the information provided.
Another group of stakeholders which received specific attention was schools’
and their staff. Two key events were held in order to effectively disseminate
important information to teachers, careers advisors and principals. Of note
was the Canterbury Principals Tour, where over 40 local schools staff toured
building sites in the Christchurch area to gain insights into the complexity
and professionalism of the building industry.
To understand our
stakeholders and
customers and deliver the
information and experience
that meets and exceeds
their expectations
5 GOVERNANCE &
STRUCTURES
Establish the portfolio of
strategies and plans which
represent the governance
of an effective ITO
organisation
6 KNOWLEDGE &
RESEARCH
To continue to develop
organisational
understandings of
the industries within
BCITO coverage and the
nature, capabilities and
motivations of BCITO
apprentices/trainees
and employers
The Board has regularly reviewed its performance and undertook a formal
self-review process. The chair initiated a survey of key stakeholders which
will be completed early in 2012.
The Board, in conjunction with the executive team, actively contributed
to establishing the strategic direction through a formal Strategic Plan
for 2012 – 2014.
A full review of all policies began in 2010 and was completed in 2011.
The Board Audit Committee also met regularly with the senior executives
and auditors.
Most research during 2011 was aimed at expanding on the 2010 study
commissioned to examine the effects of economic cycles on training
within the construction trades.
We have concentrated on gathering better information about the
characteristics of the workforce of each of the industries within our
coverage. This work has provided us with a better understanding of the
factors that generate or inhibit the achievement of trainees. It therefore
allows us to forecast more accurately the numbers of trainees required
to fulfil future industry needs and to better target appropriate learning
materials and interventions.
7
2011
BCITO ANNUAL REPORT
Goals and Outcomes in 2011
2011 Strategic Goals
SUCCESS ON THE
RECORD
BCITO in the Media
Throughout 2011 we worked to maintain a presence in
mainstream, predominantly print media. By working
with key journalists and their publications we recorded
over 80 BCITO-driven articles, across 51 publications
throughout the country.
We worked with both local and national newspapers providing
good news stories about the achievements of our trainees and
their employers, and the challenges faced by the industry.
This year we recorded 20 radio mentions – a combination of
quotes, vox pops and interviews on national and local stations
made sure that the BCITO voice was heard across
the country.
Taranaki Daily News
Building
training
popular
07/11/2011
Figures recently issued by BCITO
showed that training within the
Press
construction Theindustry
is gaining
momentum.
NZ Herald
Upturn in
construction
imminent
“We’ve been trying to deliver two
key messages to builders out there,”
05/12/2011
Karaitiana says.
Wait ahead
for building
trainees
“They need to look at ... training their
good people in supervision skills so
they are able to handle new people
when they arrive, and ... consider what
their plan is for staffing for 2012 and
2013. If they leave it till late in 2012
there won’t be any people available.
“What we do know is there won’t
really be jobs available for them at that
particular time ... [judging when they
do get jobs] depends how optimistic
you are. No economists seem to be
able to agree on this and nor do any of
the people trying to solve the thing in
Christchurch,” Karaitiana said.
Across the country 2572 people
gained BCITO qualifications in
building-related trades last year.
BCITO ANNUAL REPORT
2011
Oct 12, 2011
8
Industry Publications
The BCITO works with a number of construction industry
publications, supplying information about training,
statistics and editorial content. In 2011 we had 35 editorial
articles published, which reinforced and integrated our
core messages into the BCITO’s broader communication
strategy.
We achieved significant exposure and are grateful for the
support we received from these publications. We look forward
to continuing our work with:
BUILD (BRANZ)
ITM
Building Today
Progressive Building
CMS
Under Construction (PlaceMakers)
NZ Construction News
Trade Leader (Carters)
In Trade (Mitre 10)
Building Innovations
BCITO activity in the news media is largely aimed at
cementing our organisation as a credible, reliable and
interesting source of industry information. Our research and
forecasting models will continue to be leveraged in this space.
We aim to become a mainstream voice for the building and
construction sector.
Social Media
In 2011, the BCITO launched its formal Social Media
Strategy. In keeping with the times we believe this channel
will be an effective way for us to connect with the youth of
industry, and those looking to enter a career in building.
Over the last few years we have seen the benefits of
using an online presence to build relationships with our
clients, spread the word to prospective clients and share
information with decision influencers and stakeholders.
In July 2011 we re-launched our Facebook page through a
combination of promotions and competitions. Our online
“followers” increased from 80 to 720 over the year as a result
of this focus.
Our Facebook presence has also increased traffic to the
BCITO website averaging over 150 visits per month originating
from our Facebook page.
Our 2011 social media strategy included the set up of a
Twitter account. We have focused on promoting BCITO news,
activities, promotions and to offer customer service. Over
2011 we attracted 70 followers and received 26 @mentions on
Twitter.
Social media will continue to be a focus for BCITO marketing
efforts in the future.
Our Culture and People
Customer Satisfaction
As an employer, we are very passionate about our people.
We try our best to support everyone in all aspects of their
working lives while also placing emphasis on work/life
balance and the flexibility needed in our modern world.
APPRENTICE SATISFACTION
In 2011 we took the opportunity to test the satisfaction of our
trainees towards their BCITO training. With 82 per cent either
“happy” or “very happy” with their training, this demonstrates
the success of our current training model.
The BCITO is all about helping our clients achieve their goals
and potential, so it’s important for our own employees to be
encouraged in this way too. Over the past year we have had a
number of employees complete tertiary study. And we have
focused on the development of our leaders for the future.
How happy are you with your BCITO training
programme so far?
It has been a very turbulent time for our Christchurch based
employees and their courage through the most difficult times
has been uplifting for other BCITO people to witness.
As an organisation, we have aimed to support our people
wherever possible. It is particularly warming to note that
much of this support has come directly from our peers.
Whether it’s words and emails of support, fundraising events,
or our Executive Leadership Team cooking up a storm on the
barbeque for the team in Canterbury, as an organisation we
pull together during the hard times.
The BCITO is made up of very knowledgeable and talented
people. We are dedicated to our work, our colleagues and our
industry, which makes coming to work each day a pleasure.
1 5
BCITO.org.nz
The BCITO website is updated regularly and provides
relevant information in a format which is easily navigated
by site visitors. After some tweaking in early 2011, the site
has enjoyed an increasing number of ‘hits’. This peaked
in August 2011 with over 3000 unique visitors in that
month alone.
The average time spent on the BCITO website in 2011 was
3 minutes 18 seconds. This compares to a global average
of about 30 seconds, and reinforces the value visitors get
from our content.
We will continue to work on enhancing the BCITO website
and provide our clients with more efficient and effective ways
to access information about training and careers within the
construction sector.
0%
12
41
20%
Very unhappy
41
40%
Unhappy
60%
Neutral
80%
Happy
100%
Very happy
EMPLOYER SATISFACTION
We also took steps to measure employers’ satisfaction of
their interactions with the BCITO. This was done across a
range of service points. These results are a tribute to the
professionalism and integrity of BCITO Training Advisors.
Satisfaction with Various Aspects of Training Process
Professional conduct
Personal presentation
Appointments kept
Understanding of needs
Training resources
Advice and direction
Support
Assessment process
Very satisfied
0%
Satisfied
20%
Neutral
40%
60%
Dissatisfied
80%
100%
Very dissatisfied
9
2011
BCITO ANNUAL REPORT
We encourage all our people to take a healthy approach to
their wellness and over the last twelve months, everyone has
had the opportunity to have an onsite health check, including
flu injections. We also try to have some fun with our healthy
activities, such as publishing regular recipes and an inaugural
pedometer challenge.
SUCCESS WITHIN
THE INDUSTRY
CANTERBURY PRINCIPALS’ TOUR
On the 26th of September 2011, the Christchurch BCITO
team, led by Ruma Karaitiana and Richard Willis, hosted
around forty schools’ staff and local journalists on a bus
tour around Christchurch construction sites.
The aim of the day was to demonstrate the complexity of the
building trades, and the new level of professionalism required
to be a builder in today’s environment.
An eventful 2011
In 2011 we made a concerted effort to integrate ourselves
into the communities we serve by attending events,
conferences, road-shows and industry breakfasts.
Feedback from schools’ staff was very positive and the
demonstration of building in practice impressed upon them
the need for motivated and academically-inclined students to
enter our industry.
This was a fantastic event and we aim to hold similar events
throughout the country in the coming years.
By far the BCITO’s most aspiring events undertaken in
2011 were the sponsorship of sixteen builders’ breakfasts
across the country, from Whangarei to Invercargill.
Ruma’s presentation focused on the looming demand the
building industry is facing in the coming years, bolstered
by hard-hitting economic forecasts and statistics. These
messages aligned well with our communication efforts in the
news media, and the face-to-face nature of the presentation
was very well received by over 2,800 people who attended
across the country.
BCITO ANNUAL REPORT
2011
Filling out the BCITO presence at these events was a local
contingent of BCITO Skills Brokers and Training Advisors, who
turned out in force to interact within their communities. This
signified our commitment to industry both at a national and
local level.
Events such as this road-show will continue to be a focus
for the BCITO as we aim to further develop ourselves as an
informed and credible source of wider industry, economic
and skills information.
10
Our Annual Report is a time to celebrate the BCITO’s
success within our industry. There is a lot to be proud
of from 2011 and it is clear from our results that we are
continuing to grow, evolve and build a future with our
stakeholders.
However, just as exciting as celebrating success within
the industry, is celebrating our success within the industry
training field. In 2011, for the second year in a row, the
BCITO outperformed all other ITOs on specific metrics
set by the TEC.
We achieved 100% completion of programmes offered.
This compares to the national average completion score
of 55% for ITOs, and 52% for level 3 and 4 polytechnic
qualifications. This exceptional result is one that our industry
and the BCITO can be justifiably proud of.
We recognise that this success is largely due to the positive
and forward thinking nature of the building industry itself;
and the dedicated employers who are willing to share their
knowledge and pass on their skills to the next generation.
CMS ROADSHOW
Organised by Construction Marketing Services, this road-show
enabled BCITO Chief Executive, Ruma Karaitiana, to directly
engage local building communities throughout New Zealand.
TEC Results
For our part, the BCITO’s dedication to hands-on training and
mentoring within the building industry has played a key role in
this success.
BCITO NATIONAL CAREERS AFTERNOON
Local BCITO teams hosted several hundred people
across the country on the 5th of November 2011 at the
BCITO National Careers Afternoon. From Whangarei to
Dunedin school students, prospective apprentices, careers
advisors, Gateway Coordinators and parents visited BCITO
offices to find out about apprenticeships and how to start a
career in the construction industry.
Guest BCITO apprentices were on standby to speak with those
considering a career in the building sector. School students
enjoyed the chance to hear about the industry first hand.
The afternoon was a great success and gave the BCITO
team an opportunity to meet and talk with a wide range of
people. As our industry recovers from all-time lows, it will
be increasingly important to interact with career seekers,
to ensure employers have a good supply of motivated and
professionally-minded people to train.
A large part of the BCITO’s role is to encourage trainees and
employers to work and strive to be the best they can be.
This recognition of our success is a great example of the
BCITO practising what it preaches.
Everyone at the BCITO knows that industry training is a team
effort, and we acknowledge how incredibly lucky we are to
be working with such a skilled and professional industry.
Our partnership means that the BCITO can continue to aim
higher each year and to set the standard for Industry
Training in New Zealand.
Over 2011 the BCITO introduced a number of educational
grants to encourage the productivity and skill of those
working within the construction sector. This reinforces our
commitment to the sector’s long-term productivity.
BCITO GATEWAY GRADUATE SCHOLARSHIP PROGRAMME
Five scholarships were offered to graduates of the BCITO
Gateway programme in 2011. Successful applicants
have the opportunity to achieve a BCITO qualification so
that they may enhance their career prospects within the
construction sector.
BCITO EMPLOYER DEVELOPMENT GRANTS
Our Employer Development Grants were created to
encourage employers to access study programmes
which would enable them to develop and expand their
businesses.
All current BCITO employers had the opportunity to apply for
one of fifteen grants of $3000, which could be used to pay the
course fees of their intended study programme. Recipients
were not limited in their choice of higher-level study, which
included diplomas in ecological building, construction
management and bachelor-level degrees.
• BCITO
• ETITO
• Building Service
Contractors ITO
• InfraTrain
• Joinery ITO
• Plumbing, Gasfitting,
Drainlaying and Roofing ITO
Through BETA, the BCITO collaborates on a common
platform, focusing on the mutual industry training goals of
ITOs within this wider sector.
PATHWAYS IN CONSTRUCTION
AND INFRASTRUCTURE
ROOFER
TELECOMMUNICATIONS TECHNICIAN
BCITO GRADUATE SCHOLARSHIP PROGRAMME
GLAZIER
WALLPAPER HANGER
PAINTER
PLUMBER
JOINER
ALUMINIUM JOINER
ELECTRICIAN
GASFITTER
CARPENTER
The BCITO Executive Leadership Team was impressed by the
quality of applications and the ambition of recent graduates
looking to advance their careers.
Current ITO members include:
• FloorNZ
The programme has been well-received by schools, Gateway
graduates, Gateway Coordinators and industry employers
across the country.
The application process was rigorous and required applicants
to document successes during their career, give examples of
future aspirations and detail the type of training programme
they wanted to enrol in. Study choices included diplomalevel qualifications in construction management, as well as
national certificates in construction supervision and ecological
building.
The BCITO is proud to have continued its significant
involvement in the BETA group over 2011. BETA is an
acronym for the Built Environment Training Alliance, a
cooperation of seven ITOs that have an interest in the
building, construction and infrastructure industries.
• DecorateNZ
These school leavers will receive funding to cover the entire
industry contribution cost of their chosen BCITO programme
including BCITO resource material.
In November 2011, five recent BCITO graduates were
awarded a $3,000 grant to put towards advanced training
programmes. Applicants needed to have graduated from a
BCITO training programme during 2011.
A BETA BCITO
BRICKLAYER
CLEANER
FLOORING INSTALLER
PEST MANAGEMENT TECHNICIAN
CONCRETE WORKER
DRAINLAYER
ENGINEERING TECHNICIAN
ROAD CONSTRUCTION WORKER
PIPELAYER
This collaboration gives weight to our focus on key
stakeholders, projects and initiatives which support a
productive construction sector and a skilled workforce.
In 2011 our BETA involvement was reinvigorated with a
number of initiatives, including the BConstructive qualification
for schools, developing a Built Environment Skills Strategy,
and the Skills for Christchurch project. Of these, the Skills for
Christchurch project dominated, and resulted in a full-time
coordinator being appointed. Work in these areas will continue
into 2012.
In 2011, the BETA group also took a shared presence at
numerous events. This included the annual CATE conference
for teachers and careers advisors, where newly defined BETA
propositions were presented to the delegates.
We see the relationships built within the BETA group to be
incredibly valuable. The arrangement provides a forum of
support, as well as a sounding-board for our ideas and
ITO-centric initiatives.
The BCITO looks forward to working intently with other
ITOs in the future.
11
2011
BCITO ANNUAL REPORT
Scholarships and Grants
STANDARDS
LEADERSHIP
Industry Research
Late in 2010 we won funding from Ako Aotearoa (the
National Centre for Tertiary Teaching Excellence) to
commission research by the NZ Council for Educational
Research into the effects of the changes made to the
BCITO assessment model.
Qualifications
Significant changes have been made to the philosophy
and style of BCITO learning material.
The establishment of a team of professional assessors
means that materials can concentrate entirely on the needs
of the learner rather than providing a framework for the
assessment of the learning. During 2011 the Qualifications
Team developed new learning materials in this style for the
revised National Certificate in Frame and Truss Manufacture
and almost completed a set for the Floor and Wall Tiling
qualification.
BCITO ANNUAL REPORT
2011
The project to revise resources for the National Certificate in
Carpentry is ongoing. In 2011 a new Work Diary for trainees
was developed and trialled, and from the start of 2012 Training
Advisors and trainees will be able to choose between it
and the more conventional Record of Work. A trainee selfevaluation book is close to completion and a comprehensive
Carpentry Assessment Guide was developed and published
on the BCITO intranet. Meanwhile planning was completed for
the development of a new learner resource for the National
Certificate in Carpentry over 2012.
12
By following the interactions of five carpentry assessment
teams (BCITO assessor, trainer/evaluator, trainee and
moderator) over 15 months, the research team hopes to
identify whether and how the new assessment model has
impacted on learning, motivation and progression.
The key activity for the Qualifications Team was, however,
preparation and planning for the NZQA-directed mandatory
review of qualifications. This project demands that every
qualification be retired or re-developed over the next three
years, even those that have recently been reviewed or newly
registered. Most impact will be felt in 2012.
The project started in May 2011 and will conclude in
September 2012. Ako Aotearoa agreed that the exact
outcomes of the study will not be determined until some way
down the track when we are clearer about the nature of the
findings. We believe one result will be a best practice guide for
workplace evaluation and assessment.
We are involved in another Ako Aotearoa-funded project
entitled Ma-ori Learners in Workplace Settings. This project
is a collaboration across three trades settings: building and
construction, the motor industry, and electro-technology. The
Industry Training Federation is providing project management,
with Ka-hui Tautoko Consulting Ltd conducting the research.
In particular, the project aims to answer three specific
research questions:
• What is distinctive about how Ma-ori workers learn in
workplace settings, specifically in the trades?
• Are there aspects of how Ma-ori workers learn and their
approach to learning that may be harnessed to increase
completions?
• How can training and career pathways be strengthened
for Ma-ori workers?
Much of our in-house research work in 2011 related to
building on the knowledge gained by the 2010 Boom & Bust
study carried out by NZIER. This work relates specifically
to analysing the characteristics of groups of trainees with
the goal of understanding better the factors that impact
on completions. This information assists with our trainee
forecasting, and also as a guide to targeting specific
interventions to address barriers to progress and completion.
Some of this work has coincidentally assisted with the
NZQA review of qualifications, which requires an industryspecific strategic needs analysis to justify the existence and
re-development of each qualification.
During 2011, the Tertiary Education Commission introduced
an online adaptive assessment tool used to evaluate levels
of literacy and numeracy capability. We chose to use the
Snapshot Assessment Tool, which is an adaptive assessment
for numeracy (or reading). All new, as well as many existing,
trainees are being tested by it. The information provided by
the tool is extremely useful in analysing specific aspects of an
individual’s numeracy capability and identifying learning needs
and possible interventions. As we gather more data, we will
also be better placed to identify trends amongst our trainee
groups and, for example, use the information when planning
and developing future learning resources.
Training and
Development
2011 was a year of consolidating the principles and
practice of good assessment amongst BCITO Training
Advisors, and this was the key focus of the Training and
Development Team (TDT).
During 2011, we gained consent from most of the specialist
trades covered by the BCITO to extend the Assessment
Team model to their qualifications. In the initial stages
of implementation, we are making use of a register of
specialist assessors as we build skill in the different trades
and qualifications amongst the whole group of assessors.
TDT members form the core of this register and have been
working closely with individual Training Advisors to widen their
assessment experience and thereby improve our national
assessment coverage in the specialist trades.
The TDT’s other principal duties included training Training
Advisors in the use of the TEC’s Snapshot Assessment Tool.
Quality Assurance and
Moderation (QA)
The external moderation of assessment by providers
(schools, polytechnics, wananga and private training
establishments) again produced a high level of confidence
in the delivery of BCITO-developed standards and
qualifications. Management plans that had been put in
place with two non-compliant tertiary providers during
2010 were successfully completed in 2011.
As in 2010, collaborating with the TDT to provide support to
our Training Advisors in their role as assessors was a major
activity for the QA Team. The model used since late 2009
has been one of ‘buddy moderation’, where face-to-face
interactions and team assessment is used to build capability,
as well as the more conventional role of checking and qualityassuring assessment outcomes.
During 2011 BCITO assessor capability grew to the extent
that the National Moderator proposed that the system we had
used should be modified. The proposal was that, from 2012,
the buddy moderation be left in the hands of the TDT, so that
the QA Team could then interact with BCITO assessors and
moderators as though the BCITO were any other external
provider. This is a highly principled approach which provides
an additional layer of reassurance about the organisation’s
assessment capability and is especially appropriate as we
move towards the assessment of all of the trades within
our coverage.
13
2011
BCITO ANNUAL REPORT
The project aims to capture and share what works, and
what causes problems, as well as making practical
recommendations concerning how ITOs and others can better
serve the needs of Ma-ori workplace learners. The project will
conclude in July 2012.
OUR LEADERS OF
TOMORROW
2 011
RMB Carters
Apprentice of the Year
For the 7th consecutive year, the BCITO, in association
with Registered Master Builders, Carters and the
Department of Building and Housing, supported the
Apprentice of the Year competition; recognising and
celebrating the best young talent in our industry.
Ryan Keogh, employed by Naylor Love Construction Ltd
in Dunedin was named the 2011 Apprentice of the Year
after competing alongside 10 national finalists from across
New Zealand.
The Apprentice of the Year event gives us a unique opportunity
to showcase our industry in an extremely positive light and
proves to those considering entering our industry that there is
a real and tangible career path in one of New Zealand’s most
rewarding sectors.
BCITO ANNUAL REPORT
2011
The support and investment made by the sponsors of this
event is a very public acknowledgment of the value they place
in industry training, and in particular, carpentry apprentices in
New Zealand.
Outward Bound
This year marked the 6th anniversary of the BCITO
Outward Bound Scholarship programme. The scholarship
is both a reward and an acknowledgement of an
employee’s potential, and is aimed at those who want to
bolster their skills, confidence and personal development.
This year we sent a record number of aspiring, specialist
tradespeople to test their physical and mental limits with
Outward Bound.
Our five trainees returned from the course more confident,
with a reinvigorated drive, a determination to succeed and
with new team, leadership and self-management skills.
The BCITO group joined apprentices from other constructionrelated trades across New Zealand in September.
Ben Horn of Wihi, Joshua Inivale of Waitakere, Desmond
Paseta of Manukau, Matthew Buxton of Tauranga and Rameka
Thomas-Dorante of Auckland won the scholarships (valued
at $4,090 each) after being selected from a field of applicants
from across the country.
“The best thing about the programme is knowing you can
always push a little bit harder and expand your limits. I
have much more confidence and self esteem now,”
Ben – Frame and Truss trainee from Mitre 10.
14
Desmond – Specialist cement and concreter
One of the challenges, the ‘solo’ involves a time of reflection,
dropped off, alone, in isolated bush, spending a night with
just your thoughts and the elements. This is a real test of
stamina and mental strength. “Being dropped off at a random
place in the bush and having to work out how to go it on my
own, my only option was to learn to adapt to the situation and
push through. It was a bit of a test, but that’s basically what
life’s about – using your initiative and getting results.” said
Desmond.
Silver Trowel
The 2011 Firth Silver Trowel Awards was once again a
celebration of excellence, hard work and know-how in the
field of Brick and Blocklaying.
Firth Industries, who have an untiring commitment to the
masonry industry, have sponsored this award since its
inception in 1986. Each year an exceptional apprentice, who
is at the point of completing their National Certificate in Brick
and Blocklaying, is awarded the title.
The competition aims to recognise and reward the best of
the best in the Brick and Blocklaying profession. Eligible
apprentices are individually marked and scrutinised. Their
workmanship, practical skills and trade knowledge is
exhaustively tested and team skills, work ethic and work
site safety are all taken into account. To win this award, an
apprentice will be an example of excellence in their field.
Kenneth Webster of Kaine Masonry Ltd Tauranga was named
the New Zealand 2011 Bricklaying Apprentice of the Year at
the annual Brick & Blocklayers Federation of New Zealand
conference, held in Auckland on the 4th to 6th of November.
This is the first year that the BCITO has been part of this
fantastic event, since gaining responsibility for the Brick and
Blocklaying industry in January 2011.
BCITO people were there to congratulate the winner and the
exceptionally talented finalists, along with representatives
from Firth Industries, the head tutor of Weltec Phil Brinkley
and fellow bricklayers from all over the country.
Kenneth’s employer, Kaine Masonry Ltd, has supported
Kenneth throughout his training and extended their thanks
to Firth, the Brick and Block Layers Federation, BCITO and
Weltec for their invaluable contribution.
15
2011
BCITO ANNUAL REPORT
“The things you learn about yourself and your life on the
course are really valuable,”
MEET THE
INDUSTRY
Insights from Within
The BCITO is proud that our industry’s future is in good
hands. Every day we work with apprentices and employers
around the country and see the positive results of on the
job training, combined with excellent industry-relevant
and forward-reaching qualifications. We know that the
people we work with day in, day out, make building and
construction an incredible profession.
Doing It Right
From the Start
‘Earning while you learn’ demands excellent time
management skills, dedication to your employer and
clients, a great work ethic and a commitment to the
industry. Those who have been through the current
apprentice training model know that balancing study and
work can be tough. It’s important to note then that in 2012
our apprentices outperformed all other industries, proving
they are the best of the best. Standing proud among these
success stories is Matt Munro, a 24 year old, recentlyqualified builder who shows us that learning is not a
destination, but a lifelong journey.
From the beginning of his career, Matt worked hard to secure
training and a place in the industry.
“Commencing an apprenticeship four years ago during a
recession was difficult. I cold-called and visited over thirty
sites before I secured a position as a labourer with Maddren
Construction. The economic downturn meant that I had to
personally fund my start-up costs, buy my own tool kit, pay my
apprenticeship fees and take time off to attend courses.
It was difficult, but I saw it as a way of proving to my employer
my commitment and dedication to becoming a qualified
carpenter.
BCITO ANNUAL REPORT
2011
“Four years later and my passion for the construction
industry, motivation to succeed and commitment to on-going
learning have seen me complete my apprenticeship in just
thirty months. This came down to hard work (I had to commit
ten to fifteen hours a week to study), dedication and top
training from highly skilled and experienced carpenters.”
16
Matt Munro
Since completing his apprenticeship, Matt has found some
amazing ways to share his skills and gain more knowledge.
“I began with ‘Habitat for Humanity’ in March 2011 as a
carpentry team leader. This programme is dedicated to
helping less fortunate people help themselves and I have
really enjoyed being part of it. Also in March I started a
Diploma of Construction Management at Unitec. It was really
difficult going back to formal study after seven years away
from school, but I have worked hard and achieved results in
the top fifteen percent of my class.”
In 2011 Matt competed in the RMB Carters Apprentice of the
Year competition and came second in the Northern Region. He
was also awarded a BCITO Graduate Scholarship to help fund
his Diploma in Construction Management.
Builders like Matt, with a tireless thirst for knowledge and
training and a clear dedication to the industry, are an example
of what can be achieved, even during this difficult time.
Though Matt puts it more simply “I believe that if you are lucky
enough to love what you are doing, success comes naturally”.
Part of the reason why we are so committed to our role in the
industry, and the positive changes we initiate, are the many
people who have experienced BCITO qualifications and our
associated support first hand.
BCITO Group Manager (Support Services), Paul Mitchell
is one of those people. With a career that began with an
apprenticeship in carpentry, then as an employer and BCITO
staffer, Paul has seen the industry from every angle and
knows just how important great training and support is.
“When I started with the BCITO I felt that our assessment
process could be improved. At that time the employer
generally became the assessor for their apprentices.
This not only required the employer to do a lot of extra
work, it also meant that we had a large number of assessors,
which created major consistency challenges.
“Around two years ago we changed our model to one where
the Training Advisor is the assessor; and while the employer
is still very much involved in the process, their workload has
been reduced. This also means we have a much smaller team
of assessors who we can train to a much higher standard.
“This has been a fundamental change for the organisation and
I am really proud of the part I played in bringing this change
about.
“BCITO has developed a range of qualifications following
considerable consultation with industry so that we have
relevant qualifications for a wide range of industry participants.
These are based on the skills that our industry values.
“The resources we offer have given people far greater access
to formal training. Our flexible approach and individual
attention have allowed a far greater range of people to
become qualified and therefore helped raised the standard
of the industry.
It’s Never Too Late
to Learn
Gaining formal qualifications may seem like an impossible
juggling act when you are working full time and running
a business, but after 27 years in the industry, builder,
business owner and employer Peter Bennett decided
it was time to make the leap. He took advantage of the
BCITO’s customised service, which credits those with
relevant skills and experience towards the National
Certificate in Carpentry.
Paul is well aware that the building and construction industry
is constantly changing and evolving and, as such, it is
important to look to the future with a nod to the past.
“In some way the industry changes a lot with new material,
tools, techniques and legislation constantly being developed,
and as a builder you need to always be working to keep up
to date.
“In another sense the industry is as old as time, providing
the structures that communities need in order to live, work
and play.
“The fortune of the construction industry is very much tied
to the overall economy, so in that respect it will always be
somewhat cyclical in nature. The foreseeable future for the
industry looks very positive with the imperative to rebuild
Christchurch, repair our leaky homes and catch up on recent
years of under investment in our building stock coming at the
same time as general economic activity is increasing.”
Paul’s contribution to the BCITO and the building industry
symbolises BCITO passion. His experiences prove that
dedication within the industry can make a real difference, and
hence increase not just industry professionalism, but also
the breadth and depth of career pathways open to qualified
builders across New Zealand.
“When I started building some 27 years ago, the plan was
to earn a bit of cash while I waited to reach the minimum
age for joining the police – I enjoyed the work so much I never
left. I couldn’t secure an apprenticeship, but at that time you
didn’t need formal qualifications. I concentrated on building
and learning on the tools and after a few years, assumed
I had missed the opportunity to get qualified.
“After ‘completing’ my first two apprentices through my
company Selva Residential (a third employee will ‘complete’
in 2012), I was at a Master Builders meeting where I bumped
into a BCITO Training Advisor. I was told about a programme
designed for builders just like me. People who have a wealth
of practical experience, are too busy to go ‘back to school’,
but who see real value in gaining a National Certificate.
“The programme allowed me to gain a National Certificate
in Carpentry, recognising my past work experience as a
demonstration of skills. A BCITO Training Advisor visited me
on site and checked my portfolio for any knowledge gaps and
I was away”.
Peter Bennett
“The bottom line is, with the Licensed Building Practitioner
scheme coming into effect from March 2012 there will be
more focus on qualifications across the whole industry, and
by 2015, it will become impossible to get a license without a
qualification.
“This experience has been nothing but positive for me.
I gained a nationally-recognised qualification that has given
me the opportunity to future-proof my business and my
career.”
Peter Bennett is director of Auckland-based Selva Residential.
He completed his National Certificate in Carpentry in March
2011.
“If there are gaps in your knowledge or experience, you’re
given a set of books – the same ones you might have seen
your own apprentices using to work through at your own
pace; six weeks, six months or longer if your life demands it.
The books start out pretty easy, but they cover some pretty
complicated techniques, proving you can keep on learning
until the day you hang up your tools.
17
2011
BCITO ANNUAL REPORT
Paul Mitchell
PERFORMANCE IN NUMBERS
Trainees by Industry Sector
Completions
3000
Exterior Plaster
2572
2500
2284
Masonry
2000
Interior Systems
Frame & Truss 1%
2008
2009
1321
Tiling
Carpentry 87%
1048
1000
Concrete757
Tiling 2%
1699
Frame & Truss
1500
Concrete 4%
1671
554
500
513
822
533
415
Carpentry
BCITO ANNUAL REPORT
2011
Interior Systems 2%
Masonry 0%
Exterior Plaster 2%
Brick and Blocklaying 2%
18
Brick and Blocklaying
0
2000
2001
2002
2003
2004
2005
2006
2007
2010
2011
Northern Area
18.3%
29.5%
Midlands Area
Northern
Area Numbers
Central Area
Midlands
Central
Southern Area
Southern
24.4%
27.8%
Total Trainees
Total Training Agreements Signed
4500
10000
8780
9000
8939
8149
4000
769
8079
8000
3500
907
7000
6696
6604
6000
1,129
3000
5555
5035
5000
1,073
1,156
2500
1,217
2000
1,192
3379
1500
3000
2000
1000
1000
500
0
2004
2005
2006
2007
2008
2009
2010
2011
2863
2849
2372
2089
1832
1187
0
2005
2006
2007
2008
2009
2010
2011
19
2011
BCITO ANNUAL REPORT
4000
BCITO ANNUAL REPORT
2011
SUMMARY FINANCIAL
STATEMENTS
20
AUDITOR’S LETTER
STATEMENT OF
COMPREHENSIVE INCOME
STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2011
2011
2010
$ 000
$ 000
2,976
3,006
Opening Retained Earnings
12,053
14,086
(Deficit)/Surplus for the Year
Interest
572
812
Other Comprehensive Income
Sundry Income
705
505
Transfer from/(to) Special and Reserve Funds
16,306
18,408
Operating Income
Subscriptions and Fees
Government Grants
Total Operating Income
For the year ended 31 December 2011
2011
2010
$ 000
$ 000
Retained Earnings
Trading Income
Closing Retained Earnings
–
1,841
(3,432)
(3,424)
–
–
3,432
1,582
–
–
17,218
18,800
Special and Reserve Funds
Sale of Goods
1,197
887
Cost of Sales
(977)
(737)
Interest on Special and Reserve Funds
301
304
Gross Profit
220
150
Special and Reserve Funds Expenditure
(965)
(299)
Expenditure
Personnel Expenses
10,552
11,284
Operating Expenses
5,397
6,482
Administration Expenses
3,331
3,911
14
15
–
295
Total Expenditure
19,294
21,986
Operating Deficit
(2,768)
(3,429)
301
304
Expenses from Special and Reserve Funds
(965)
(299)
Special and Reserve Funds
(664)
5
(3,432)
(3,423)
–
–
(3,432)
(3,423)
Other Expenses
Restructuring
Interest from Special and Reserve Funds
Surplus/(Deficit) for Year
Other Comprehensive Income
Total Comprehensive Income
Opening Special and Reserve Funds
Transfers from/(to) Retained Earnings
(2,768)
(1,587)
Total Transfer from/(to) Retained Earnings
13,786
17,218
Closing Special and Reserve Funds
13,786
17,218
Total Members’ Equity
13,786
17,218
21
2011
BCITO ANNUAL REPORT
For the year ended 31 December 2011
FOR THE YEAR ENDED 31 DECEMBER 2011
STATEMENT OF
FINANCIAL POSITION
STATEMENT OF
CASH FLOWS
AS AT 31 DECEMBER 2011
For the year ended 31 December 2011
FOR THE YEAR ENDED 31 DECEMBER 2011
2011
2010
$ 000
$ 000
Assets
Current Assets
Cash and Cash Equivalents
13,469
11,135
Term Deposits
3,650
9,665
Trade Debtors and Other Receivables
1,322
1,733
Prepayments
93
121
Interest Receivable
199
465
Inventory
297
488
19,030
23,607
597
878
12
230
609
1,108
19,639
24,715
5,315
6,921
502
554
36
22
5,853
7,497
13,786
17,218
–
–
Special and Reserve Funds
13,786
17,218
Total Members’ Equity
13,786
17,218
Total Current Assets
Non-Current Assets
Property, Plant and Equipment
Intangible Assets
Total Non-Current Assets
Total Assets
For the year ended 31 December 2011
2011
2010
$ 000
$ 000
Net Cash Flows from Operating Activities
(3,411)
(2,294)
Net Cash Flows from Investing Activities
5,745
(830)
Net (decrease) / increase in cash held
2,334
(3,124)
Add Cash at start of year
11,135
14,259
Cash Balance at End of Year
13,469
11,135
Cash and Cash Equivalents include:
Cash and Bank
3,369
525
Short Term Deposits
13,750
20,275
Less Short Term Deposits held for more than 90 Days
(3,650)
(9,665)
Total Cash Balance
13,469
11,135
Liabilities
Current Liabilities
Trade Creditors and Other Payables
Employee Entitlements
Joint Venture – Qualifications
Total Current Liabilities
Net Assets
BCITO ANNUAL REPORT
2011
Members’ Equity
Retained Earnings
22
Chairman of Board of Directors
Chief Executive
Date: 27 February 2012
Date: 27 February 2012
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.
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)). BCITO is registered as a charitable
entity under the Charities Act 2005 on 13 March 2008.
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 training
for trainees within the trades of carpentry, interior systems, solid plastering, floor and wall
tiling, cement and concrete, brick and blocklaying, masonry, frame and truss and proprietary
plaster cladding systems.
The financial statements of BCITO are for the year ended 31 December 2011.
The financial statements were authorised for issue by the Board on 27 February 2012.
BASIS OF PREPARATION
(a)
Statement of Compliance
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 Public Benefit Entities.
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.
(b)
Basis of measurement
The financial statements have been prepared on a historical cost basis, except for financial
assets and liabilities that have been measured at fair value.
Accrual accounting is used to recognise revenue and expenses. 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 applied in preparation of the financial statements have been disclosed
in the full financial statements. Accounting policies applied in the year are consistent with the
previous years.
23
2011
BCITO ANNUAL REPORT
REPORTING ENTITY
OPERATING LEASE COMMITMENTS
RELATED PARTY TRANSACTIONS
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.
2011
2010
$ 000
$ 000
Not later than one year
644
682
One year and not later than two years
440
503
Two years and not later than five years
769
66
Over five years
118
–
1,971
1,251
Total Accommodation Lease Commitments
Operating leases in respect of leased equipment and motor vehicles for regional training staff are as follows:
Not later than one year
One year and not later than two years
Two years and not later than five years
Total Equipment and Vehicle Lease Commitments
2011
2010
$ 000
$ 000
1,051
947
523
782
130
218
1,704
1,947
PARENT AND ULTIMATE CONTROLLING PARTY
The Building and Construction Industry Training Organisation is the ultimate controlling party
of the BCITO.
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 (2010:
$Nil).
KEY MANAGEMENT PERSONNEL
Key management personnel include members of the Board, executive officers and other key
management personnel.
Total remuneration paid to key management personnel is made up of short-term employee
benefits and no other post-employment benefits, termination benefits or long-term benefits
arrangements have been expensed in the years reported.
2011
2010
$ 000
$ 000
Key Management Personnel Compensation
Board Member Fees
Salaries and other Short-term Employee Benefits
22
25
631
825
OTHER RELATED PARTY TRANSACTIONS
Except as stated above there are no other related party transactions.
BCITO ANNUAL REPORT
2011
SUBSEQUENT EVENTS
There were no significant events after balance date requiring reporting or adjustment in these
financial statements (2010: $Nil).
24
2011 STAFF FORUM
On the 16th of February, all BCITO people from
throughout the country united for a day of ideas,
information sharing and team-building at Westpac
Stadium in Wellington. It was an excellent opportunity
for us to re-focus ourselves after a period of change,
and for the challenges that lay ahead.
The highlight of the day involved a managed team exercise,
which resulted in a massive four-by-two metre painting
which now hangs in the BCITO National Office in Wellington.
The exercise, and resulting picture, is a symbol of the
unity, teamwork and collaboration of the people who
make up the BCITO.
Each pane was separately and simultaneously hand-painted
by the entire organisation, grouped into small teams who
had limited time and contact with each other to complete
the exercise.
Team BCITO, February 2011
25
2011
BCITO ANNUAL REPORT
The ultimate goal was for all panels to align to make the
‘big picture’, just as our individual skills align to lead the
building and construction industry in New Zealand.