Annual report 2012
(b) Contingencies
Personal grievances
As at 31 December 2012, there were no outstanding personal grievances claims against Te Wānanga o Aotearoa
(2011 - one).
Contingent Liabilities
Litigation
Te Wānanga o Aotearoa has one contingent liabilities as at balance date (2011 - NIL).
If successful, the estimated settlement costs would be approximately $4,200.
Open Wānanga Limited has one contingent liability as at balance date (2011 - NIL).
If successful, the estimated settlement costs would be approximately $15,000.
Government funding
Te Wānanga o Aotearoa has a contingent liability of $692,533 (2011 - $692,533) related to the creation of a new
early learning centre in Manukau. In order to fulfill the conditions of funding the centre must remain open for
ten years. The centre opened in 2008 and must remain open until 2018. Failure to achieve this will result in the
repayment of funding.
Financial guarantee
Te Wānanga o Aotearoa entered an arrangement in 2008 with the Bank of New Zealand to provide a guarantee for
Open Wānanga Limited.
Contingent Assets
Te Wānanga o Aotearoa has no contingent assets as at balance date (2011 - NIL).
18 Related party disclosure
The consolidated financial statements include the financial statements of Te Wānanga o Aotearoa and its subsidiaries
Open Wānanga Limited and the Aotearoa Scholarship Trust.
Country of
Equity Interest
Investment
Incorporation 2012 2011 2012
2011
% % $’000 $’000
Open Wānanga Limited
New Zealand
100
100
1
1
Papatoa Forestry Limited
New Zealand
100
100
-
-
Aotearoa Scholarship Trust
New Zealand
100
100
-
-
18.1 Open Wānanga Limited (including subsidiary Open English Limited)
Open Wānanga Limited is a wholly owned subsidiary of Te Wānanga o Aotearoa. The board of Open Wānanga
Limited is appointed by the Te Mana Whakahaere of Te Wānanga o Aotearoa. Open Wānanga Limited provides
educational services for Te Wānanga o Aotearoa and Te Wānanga o Aotearoa is part of the Open Wānanga Limited
provider network.
In May 2011, Open Wānanga Limited established a subsidiary company, Open English Limited. The subsidiary took
over the English language delivery that was previsouly delivered by Open Wānanga Limited. In July 2011, Open
English Limited purchased the assets of Dynaspeak English Limited, being the Dynaspeak English programme
designed for delivery to international tauira. Dynaspeak English Limited continued to hold the accreditation for
delivery to international tauira until September when Te Wānanga o Aotearoa was accreditated and purchased the
Dynaspeak programme.
2012
2011
$’000 $’000
Sales to Open Wānanga Limited and Open English Limited
1,348
1,481
Purchases from Open Wānanga Limited and Open English Limited
25,419
24,543
Donations from Open Wānanga Limited
5,413
6,468
109
