86 TE PŪRONGO 2013
22. Explanation of major group variances against budget
Statement of comprehensive income
Government funding
Government funding is below budget by $0.5m with the main contributor being a reduction in Youth Guarantee enrolments.
Actual enrolments were 318 against budgeted enrolments 340 representing reduced income of $0.25m.
Tauira fees
Tauira fee income is below budget by $2.0m as a result of not achieving budgeted enrolments in our fee paying programmes.
This then impacted on the programmes that were delivered compared to that planned.
Other income
Other income is above budget by $0.7m due to an increase in subcontracting revenue.
In particular, major contracts with the Ministry of Social Development and Southern Institute of Technology were extended
to deliver additional services.
Kaimahi costs
Kaimahi costs are above budget by $0.9m as a result of the following factors:
• a change to the type and number of programmes delivered
• kaiako to tauira ratio’s varying from plan
• an increase in overall student numbers of approximately 300 EFTS.
Other expenses
Other expenses are below budget by $1.1m due to a reduction in tauira resources, satellite payments and consultancy
expenditure. A plan was initiated during the year to reduce overall controllable spend as a result of the factors noted under
tauria fees and kaimahi costs.
Statement of financial position
Property, plant and equipment
Property, plant and equipment is below budget by $5.2m as a result of building projects being delayed or placed on hold.
The main projects budgeted that did not occur in 2013 included a building fit out of $1m, an office block refurbishment of
$1.3m and seismic strengthening of our distribution centre of $1m.
Revaluation reserve
The revaluation reserve is below budget by $2.9m as a result of the opening budget being higher than actual.
