hito annual report 2015
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t w e n t yf i fteenHITO ANNUAL REPORT
ContentsIndependent Board Chair Report 1
Chief Executive Officer Report 7
National Quality Assurance Manager Report 15
Hair Advisory Group Report 23
Beauty Update Report 27
National Certificates Issued 32
2015 Performance 35
Financial Performance 39
independent board chair report
DR FLORA GILKISON
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DR FLORA GILKISON
Hair and beauty careers are super cool. They make your clients feel great and expand your repertoire in innovative ways. The message to young people is “do what you have a passion for - that is what drives you to be the absolute best you can be”. Sure it’s also about standing on your feet for long hours, having to take several years to master the ‘science and art’ required for this career but, in the end, the results are worth it.
Becoming a HITO trainee means getting paid while you work, not
ending up with a student loan and graduating with a portable life long
career that can take you places. On-job training is a vital aspect of
industry training and HITO is indebted to our business owners who
take on the challenge of training and who do such a fabulous job.
The beauty industry is rapidly growing, and the Board feels strongly
that this is a largely untapped market and so has become a key growth
area for HITO. A registered name change to NZ Hair and Beauty
Industry Training Organisation has underpinned this growth intention.
The Board has also looked very seriously at the Auckland market and
despite added attention and resources, it is still not making the trainee
numbers expected from this growing and diverse market.
The year has been complex with changes to the Tertiary Education
Commission rules around funding and how long a trainee can stay
on the trainee schedule, trying to encourage more trainees in the
metropolis of Auckland, and having a stronger face through Gateway
– our vital schools link. The NZQA External Evaluation and Review
(EER) was time consuming but resulted in good advice for the future
and acknowledgment of our sound systems and processes. HITO
again sent a competitor to the WorldSkills held in Brazil and while she
did not place the challenge was worth her while.
Positive highlights for the year included our participation in
New Zealand Fashion Week, which gave HITO wonderful exposure
and linked our name alongside a strong and international brand.
GOT A TRADE was a week of great exposure for HITO, encouraging
young people to explore the benefit of becoming an apprentice. It
was a big hit for HITO with a lot of media and social media exposure.
The Board made a decision to fund these two initiatives out of
reserves, hence the reported loss on current revenues.
We are determined to grow HITO both in name recognition and
trainees. In light of this, HITO commissioned an external strategic
review and we plan to implement key aspects throughout the next
five years.
Independent Board Chair Report
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So 2016 will be a year of challenge and achievement. The Board
is looking to implement a new strategic plan with a real focus on
financial sustainability and communication. To do this effectively,
we need to encourage more employers to accept the training
challenge and more employees to step up and sign on for a training
agreement. We continue to have a triple focus on barbering, beauty
and hairdressing.
New Zealand has a vibrant hair and beauty industry, and is exciting
and energising to be involved in it. My thanks go to all Board
members for their committed enthusiasm and involvement with
HITO and the industry. My thanks also go to Erica the CEO and her
committed staff for all their efforts this year to help achieve some real
HITO firsts.
Dr Flora Gilkison
HITO CHAIRPERSON
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chief executive officer report
ERICA CUMMING
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ERICA CUMMING
HITO has had many highlights in 2015, including new resources, new events and qualifications.
We do note however, that the number of trainees engaged in on-job
training has not shown the growth being experienced by the sectors.
It’s understandable that some employers may be cautious following
the global crisis. However not training during that time has now
created a skills gap as employers look for high quality, qualified staff.
I would like to continue to encourage employers to recognise the
value and benefits of training on the job to ensure that there are
sufficient numbers of highly skilled people within the industry to
meet business and client demands now and in the future.
Beauty Therapy Apprenticeships
One of the key achievements for 2015 was within the beauty sector.
After many years of consultation and work with the beauty industry,
we finished 2015 with 12 beauty therapy New Zealand Apprentices.
While the new beauty qualifications are in the final stages of review,
HITO decided to work with industry and offer a trial apprenticeship
programme for beauty therapists. This is an enormous change for the
sector as never before has there been an opportunity for employers
to support their staff to gain a national qualification while working
on the job. HITO has worked with a small group of employers and
their selected employees to undertake these trial apprenticeships.
Resources are being developed for the employer and apprentice as
they undertake new roles and tasks on the job.
Qualification Reviews
After a number of years the new barbering and hairdressing
qualifications were registered by NZQA. The review of qualifications
demanded a huge level of commitment from those directly involved in
this process, so I would like to thank all who contributed.
The key outcomes are the reduction in qualifications on the NZQA
framework resulting in New Zealand Certificates in Barbering and
Hairdressing. Those signing into apprenticeships in the future will be
working toward the New Zealand Certificate in Commercial Barbering
(Level 4) and the New Zealand Certificate in Hairdressing (Professional
Stylist) (Level 4) qualifications. These have been highlighted in more
detail in the National Quality Assurance Manager’s Report on page 15.
The Beauty qualifications are also under review, and again a lot
of time spent by those involved in evaluating the industry needs.
The proposed suite of qualifications in beauty have been given
approval to develop and will be submitted to NZQA for approval to
Chief Executive Officer Report
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list in 2016. It is positive to see the development of formal
qualifications in the make-up sector including prosthetics, spa
and extension of specialist qualifications in beauty therapy.
EVENTS
WorldSkills
WorldSkills provides an opportunity for apprentices and those qualified
to represent their country at this prestigious event. The international
event showcases all trades training, recognising the value of young
people competing for their country within their chosen trade.
This year Nadine Gratton represented NZ hairdressing in Brazil.
While not receiving an official place, Nadine certainly represented
NZ well and has returned with a wealth of knowledge that she is
ready to share with others.
Boot Camp
For the second time HITO ran a boot camp for the regional apprentices
who won the HITO Regional Apprentice of the Year awards in 2015.
The three day event further developed their skills and knowledge.
This group of people are developing ambassadors for apprenticeship
and future leaders within the sector. We look forward to watching their
careers blossom.
Graduation
Also for the second time, HITO held a graduation for those who
gained their national qualification through HITO. While certificates
are awarded when they qualify, this ceremony is a chance to truly
celebrate the achievement with friends and family. We were delighted
to welcome 63 graduates and to see wha-nau and employers value
their accomplishment.
Got a Trade
For the first time a group of Industry Training Organisations (ITOs)
came together to promote the value of trades training /apprenticeship
training. Seven ITOs showcased that gaining a qualification on the
job is valued and that there are many opportunities available. It is
apparent that a career forged through learning while in employment
has not had high profile with key influencers. The focus was on
attracting school leavers to apprenticeships and to better educate
their influencers (including school career advisers, parents or wha-nau)
that there are options beyond university and full-time study. HITO
showcased barbering, beauty and hairdressing sectors on national
television. The success of this event has been widely recognised
and plans are already underway for Got a Trade in 2016.
NZ Fashion Week
Another first for HITO was our partnership with NZ Fashion Week to
sponsor the Hot New Talent competition. The primary focus of HITO
was to raise public awareness of apprenticeship training. It was an
opportunity for HITO to step outside of the usual media channels
and be showcased with the high profile of NZ Fashion Week. Despite
being only the first year of involvement, feedback demonstrated
that the value of apprenticeship training in our sector needs have a
greater profile. The HOT New Talent competition was a wonderful
chance to profile the sector and support a group of emerging
hairdressers, make-up artists, models and stylists to work behind
the scenes at Fashion Week, and to be involved in a photo-shoot.
Congratulations to Hannah Oxley who won the hairdressing award.
She was only eight months into her apprenticeship when she won,
so we look forward to seeing more from her as she progresses in
her apprenticeship.
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ERICA CUMMINGChief Executive Officer Report
Industry Awards
The Industry Awards continue to showcase the best apprentices,
tutors, trainers and employers in HITO training. We again partnered
with NZARH and Kitomba for this event, recognising that training a
workforce is a vital element in a successful business. The Jasmine
McBeth Memorial Scholarship remains a prestigious award. The two
other finalists in 2015 were also recognised as Jasmine’s parents
offered a mini-scholarship for them too.
BarberCraft
In 2015 HITO worked to develop a new event for the New Zealand
barbering industry, which will launch in May 2016. This coincides with
the launch of the New Zealand Certificate in Commercial Barbering,
a new qualification recognising that those obtaining it will have a
qualification at the same level as any trades person. BarberCraft will,
for the first time in New Zealand, nationally recognise the barbering
industry skills and talent, introduce new competitions and technical
demonstrations for barbers.
NEW SUPPORT SYSTEMS
New online resources (VUE)
One of the most exciting achievements for HITO was developing a
new resource called VUE. An online website and mobile application
for apprentices and their employers/trainers, it was developed as a
result of feedback from employers.
The application contains 3 main elements:
1. A video of practical skills with descriptions, quizzes and achievements.
2. An online portfolio creator.
3. Notification system.
We have made this resource available, at no cost, to apprentices
and employers. Hairdressing content is available now. Barbering, nail
technology and beauty therapy content will launch in 2016.
INDUSTRY AWARD WINNERS
HITO Apprentice of the Year
and HITO MidCentral Apprentice of the Year
Courtney Jackson, Be Ba Bo, New Plymouth
HITO Apprentice of the Year Runner-up
and HITO Midland Apprentice of the Year
Jenny Eastwood, Morph Hair, Hamilton
HITO Northern Apprentice of the Year
Jess Ganley, Oscar and Co, Auckland
HITO Auckland Apprentice of the Year
Kelly Manu, Blaze, Auckland
HITO Central Apprentice of the Year
Elana McCarrison, Lifestyle Hair Studio, Paraparaumu
HITO Northern South Apprentice of the Year
Libby Morton, True Grit Hair Spa, Christchurch
HITO Southern South Apprentice of the Year
Hannah Oxley, Do Hair, Invercargill
HITO Trainer of the Year
Cathy Davys, VIVO Hair and Beauty Tory Street, Wellington
HITO Training Salon of the Year
True Grit Hair Spa, Christchurch
HITO Tutor of the Year
Shelley Kelsen-Macdonald, WITT, New Plymouth
Jasmine McBeth Memorial Scholarship
Renee Lee, Creations Hair Design, Napier
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Mentoring
Following research identifying the value of mentoring for those
in training, HITO embarked on training a trial group of mentors to
provide support to apprentices. This support is beyond their usual
HITO apprenticeship support. The trial has seen positive and, as
a result, we plan to continue to develop new mentors around the
country so apprentices, with a need, have access.
PERFORMANCE
The New Zealand Apprenticeship
This continues to be a cornerstone of HITO efforts, where the
apprenticeship journey is recognised as a valuable to trainees and
employers. This programme has predominantly been within the
hairdressing sector, but is also now available as a trial in beauty
therapy.
Qualification by Experience (QbyE)
This year HITO has also focused on supporting people within the
beauty and barbering sectors who have worked for some time but not
attained their national qualification. QbyE gives them that opportunity.
Critical for moving forward, both sectors will need to have a pool of
qualified people to provide training and support to new trainees.
Both sectors are growing, which is a time where training is vital to
ensure there are enough trained staff to meet the needs of clients.
Credit and Programme achievement
Once again I’m proud to announce that in 2015 HITO achieved an
ITO leading percentage of trainees who achieve credits and complete
their programmes. 75% of our learners achieved 10 or more credits
while we achieved 100% programme completion rates in 2015.
Positive EER outcomes
This year the New Zealand Qualifications Authority (NZQA) undertook
an External Evaluation and Review (EER) of HITO. This is a process
where NZQA looks at how HITO ensures that training outcomes
represent quality and value for all parties involved, and how HITO
ensures self-evaluates our performance. The process, while time
consuming, provides focused time to check that needs of the sector
are being met and processes followed.
GOALS FOR 2016
Delivering a successful BarberCraft event is a key focus for us in
recognising and supporting the barbering sector. We expect that
the industry will have an event to showcase the sector and raise the
profile of barbering as a career choice for young people.
Beauty will also continue to be focus for HITO. The qualifications will
be approved and we will develop programmes that will meet the
needs of industry, including apprenticeship were possible. Ensuring
that the beauty qualifications are listed will be essential for HITO to
be sure that there are relevant and valid qualifications for the beauty
sector. Our schools programme (Gateway) in beauty is already raising
the profile of industry training in the beauty sector.
Industry engagement will be critical as unit standards and programmes
are developed.
HITOs primary focus for 2016 is to improve number of learners by
continuing to work with employers from all sectors, identify how
training can add value to those business, and ensuring they have
staff qualified to meet the needs of the business.
I would like to thank the HITO Board and staff for their continued
commitment and support during the year.
Erica Cumming
HITO CHIEF EXECUTIVE OFFICER
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national quality assurance manager report
JASON HARE
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JASON HARE
KNOW WHAT YOU ARE GETTING!
Now that the hairdressing qualifications have been reviewed and listed with NZQA, we will soon have graduates of the new qualifications working or looking for work in the salon. So what do the different qualifications mean? How do I know what skills these new graduates will have? And what’s the difference between these new qualifications and the qualification I have?
Here is a breakdown of what you can expect:
New Zealand Certificate in Salon Skills Level 2
The graduate of this qualification will have a basic understanding
of how a salon operates and how to communicate and present
themselves for work. They may have some limited styling skills but
this is mostly to ensure they can do their own hair and present a
professional image for the salon. You might find this graduate has
some knowledge of beauty therapy and barbering also, as this
qualification can include knowledge of beauty and barbering.
If this graduate is working in your salon you can expect them to be
able to greet and look after clients’ needs but you will need to train
them in all hairdressing skills. Secondary students may complete
some of the unit standards from this qualification through Gateway
and Star programmes.
New Zealand Certificate in Hairdressing (Salon Support) Level 3
This graduate will have completed a one year full time hairdressing
course. They will have some hairdressing skills to be able to support
you with your clients such as applying and rinsing off colours,
applying a few foils and looking after reception stock and displays.
They would also be able to do some basic services in the salon such
as simple blow dry’s and hair ups.
If this graduate is working in your salon you can expect that they
will be able to support you by shampooing, applying and removing
colours, looking after clients and reception during services.
National Quality Assurance Manager Report
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They should also be able to help you with drying off clients and doing
simple hair up work for school formals etc. They would generally be
called a salon assistant.
New Zealand Certificate in Hairdressing (Emerging Stylist) Level 4
A graduate at this level has completed 2 years full time training.
They will be able to do most services with general guidance, they
have learnt skills in all areas of hairdressing but may need assistance
with more complex chemical work such as straightening and full head
bleaching. While the graduate will have a large range of skills they
may need time to come up to commercial speed and expectations.
They will know the 4 basic haircuts but may need help bringing these
together into fashion cuts.
If this graduate is working in your salon you can expect them to start
to run a column but allow them a little more time and support for
services. They will consult and manage their own clients but come
to you for guidance when working with the more difficult chemical
services. They would generally be called an intermediate stylist.
New Zealand Certificate in Hairdressing (Professional Stylist) Level 4
This is the fully qualified senior operator. They will understand and
be able to perform all services in a commercial timeframe. They will
also have proven they can service a sufficient throughput of clients
to be commercially viable. The graduate will have good knowledge
of services, how pricing impacts on salon profitability and how to
manage and grow their clientele. They have the ability to create
fashion work and promote current products and services.
When you sign up an apprentices this is the qualification they will be
working towards.
If this graduate is working in your salon you can expect them to
be working as a senior, operating a full column. They will be able
to promote additional services to clients and meet the commercial
expectations of you and the clients.
So if you are looking for a QUALIFIED SENIOR STYLIST these
certificates are what you will look for:
• New Zealand Certificate in Hairdressing (Professional Stylist)
• National Certificate in Hairdressing (Professional Stylist)
• National Certificate in Hairdressing (Practice) Hairdressing strand
• Trade Certificate in Ladies Hairdressing
Unit standards are industry standards
Unit standards are the currency we have used to identify the skills and
knowledge a hairdressing trainee has gained. These often don’t reflect
what’s happening now in the industry. Questions like ‘why don’t we
update the content?’, and ‘why do we still do perming/ fingerwaves/
cap highlights?’ come up often. I thought I would take the opportunity
to explain a little about how these unit standards come about and
how they work.
The units are created and maintained by the Hair Advisory Group.
This group includes salon owners, senior stylists, hairdressing
trainees, and tutors from both polytechnic and private providers and
a representative from the NZARH along with HITO. This group meets
at least 4 times a year to review content, look at new skills and see
where changes are needed.
Unit standards are building blocks of skills. These building blocks
ensure the learners have a wide range of skills and knowledge.
Once they have completed these building blocks and have these
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skills in their hairdressing kit, they have a good basis to grow and
build into performing the high fashion work expected in the salon.
DON’T BE FOOLED! If someone tells you they have the ‘cutting unit’
this doesn’t mean that you can let them loose of all your clients doing
all sorts of fashion cuts. The scissor cutting unit includes the four basic
cuts and a clipper cut but doesn’t combine these together to create
the work you would expect on your salon floor. This comes later.
So why do we still have units in perming/ finger waving/ cap
highlights. There are a few reasons these are still included and this is
often hotly debated by the Advisory Group. The main reason is that
while these services are not common in the salon now, the skills the
learners gain doing these things are important. For example, finger
waving not only teaches a skill that shows up in competitions and
catwalks but also it teaches movement and wave formation skills.
It also strengthens and assists with the dexterity of the fingers for
skills like braiding. We check the content of the unit standards with
those of other countries through the International Professional
Standards Network (IPSN) to ensure we are not missing important
changes. This has seen the inclusion of units on sustainability
and accounting. We also get feedback from salons that becomes
incorporated in the units and things like understanding different
ways of permanently straightening the hair and following directions
from senior staff have been added.
So how do you have your say?
If you think there are skills missing from our ‘building blocks of skills’,
email Karen in the National Office ([email protected]) and she will
forward your thoughts to the representatives for you.
The unit standards are designed by industry and built to ensure
the industry continues to have a board range of skills in a qualified
operator. They really are the New Zealand Industry Standards. Units
are your guarantee that when a learner has achieved these, you
know they have done this skill a number of times to the standard,
on a range of real people. It’s your guarantee that they can consult
sufficiently and have not been working on mannequins. You can
guarantee what skills have been assessed by checking the NZQA
record of achievement.
There has been some talk regarding having or not having unit
standards within qualification. Apprentices working towards the
New Zealand Certificate in Hairdressing (Professional Stylist) will
continue to gain unit standards as their measure of skills and
knowledge as they have done in the past. These will be registered
on the NZQA directory of assessment standards.
Unit standards are not the only way to assess hairdressing skills.
Be sure you know what you are getting!!
Jason Hare
HITO NATIONAL QUALITY ASSURANCE MANAGER
JASON HARENational Quality Assurance Manager Report
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IND
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hair advisory group report
DEB CLARK
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DEB CLARK
2015 has been an interesting year for the Hair Advisory Group. My role as chair commenced following the resignation of Andrea Bullock. Andrea led the group for many years, doing an outstanding job of keeping everyone on track and moving forward and I would like to thank her for all her hard work.
The Hair Advisory group has representation from Independent Training
Providers, Private Training Providers, salon owners, apprentices, the
HITO Board and Quality Assurance.
The Group seemed to be consumed by the Targeted Review of
Qualifications over the last few years, and it is with a sigh of relief to
all that this is now over and we can go back to business as usual.
We have needed to formally meet just once this year.
The meeting focused mostly on tidying up the wording in the
Consent and Moderation Requirements document that would
meet the needs of NZQA and the results of the TRoQ. This was
attended by industry representatives and NZQA as well as the Hair
Advisory Group.
In March NZQA approved the suite of qualifications that resulted
from the barbering and hairdressing reviews and listed these on their
website. Many providers have now gained their programme approvals
to deliver these.
Interpretation guidelines for the new units included in the qualifications
and new versions of existing standards have also been developed
and made available to providers.
Common assessment tasks for the Level 2 New Zealand Certificate
in Hairdressing (Salon Skills) have also been developed and made
available for providers to use.
I would like to thank the members of the Hair Advisory Group for
all their input over the last few years. Such a lot of time and effort
goes on behind the scenes, gathering feedback to ensure the
voices of all parts of the sector are heard, researching information,
reviewing, developing and moderating standards, answering queries
and attending meetings. Much of this happens in their own time,
squeezed into what are already busy days. Their dedication to
the industry is without question and we are lucky to have such a
proactive group to work with.
Deb Clark
CHAIRPERSON, HAIR ADVISORY GROUP
Hair Advisory Group Report
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GO
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beauty update report
TARGETED REVIEW OF QUALIFICATIONS (TROQ)
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BEA
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TARGETED REVIEW OF QUALIFICATIONS (TROQ)
In 2015 the review of beauty qualifications continued and the initial
suite of qualifications were submitted to NZQA:
• New Zealand Certificate in Makeup and Skin Care (Introduction)
(Level 3)
• New Zealand Certificate in Beauty Therapy (Level 4)
• New Zealand Certificate in Makeup Artistry (Level 4)
• New Zealand Certificate in Nail Technology (Level 4)
• New Zealand Certificate in Prosthetics and Performance
Makeup (Level 5)
• New Zealand Certificate in Spa Therapy (Level 5)
• New Zealand Diploma in Beauty Therapy (Level 5)
• New Zealand Certificate in Specialised Epilation Therapy (Level 6)
• New Zealand Certificate in Specialised Skin Care Therapy (Level 6)
Two of these qualifications were not approved:
• New Zealand Certificate in Prosthetics and Performance Makeup
(Level 5)
• New Zealand Certificate in Specialised Skin Care Therapy
(Level 6).
The governance group requested further consultation and asked
the relevant working groups consulted with industry. From the
initial report and consultation, the governance group resubmitted
the qualifications to NZQA for approval to develop. Pending the
outcome and with ongoing consultation, the goal is to have the
developed qualification suite submitted to NZQA in February 2016.
HITO Beauty Advisory Group
The HITO Beauty Advisory Group began a review of current and
development of new unit standards to reflect industry needs.
The advisory group members included:
• Annabelle Taylor – PTE Representative
• Diane Codd – Polytechnic Representative
• Lorna Mercer – Distributor Representative
• Judy West – Beauty Therapy Association
• Jaye Clark– HITO Board Representative
• Marianna Glucina – Industry Representative
During the process, subject-matter specialists evaluated the
requirements for various skill areas. E.g. Leah Light and Maxim
Titter for Nail Technology. The advisory group also consulted with
the national counter manager from Farmers, among others, when
reviewing the Level 3 Makeup unit standards. These units were
reviewed and submitted to NZQA.
At the end of 2015, the advisory group began reviewing the unit
standards for the NZ Certificate in Beauty Therapy, inviting industry
experts to ensure that the units reflected current industry standards.
This will continue into 2016 across the remainder of the proposed
qualifications and is a significant undertaking for the advisory group,
requiring regular meetings, conferences and consultation.
HITO is aware that training providers, who undertake assessment of
the new unit standards, may require extra support to help interpret
them. The HITO moderation team continue to support these assessors
through the moderation process.
Beauty Update
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BA
RBER
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SEE YO
UR W
ORK IN
Josh Angell DHARMA
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HAIRDRESSING (L4) Professional Stylist & Hairdressing Practice
Abigail Harvey
Alesha Phipps
Alexandra Hawij
Alison Barnaby
Alysha-Leigh Nolan
Amber Goble
Amber McKenzie
Amber Petrie-Taylor
Amelia Jordan
Amelia London
Amy George
Amy Robinson
Angela Thomson
Ashleigh Barclay
Ashleigh Cole
Ashley Bacon
Bonnie Underwood
Bree Lacy
Caitlin Parrant
Carew Paki
Casey Donald
Chiara Whitmore
Chloe Emms
Chloe Law
Claire McFarlane
Coral-Mae Jacobsen
Courtney Jackson
Dang Le
Danielle Sickels
Demelza Law
Denby Edwards
Dianna Aitken
Elisha Pennington
Elizabeth Painter
Eloise Blakelock
Elyse Bowyer
Emilee Blunden
Emily Gudopp
Emma Hazelwood
Ewelina Popielarska
Fiona Crowley
Frana Evans
Gabrial Dickinson
Gabrielle Hislop
Gemma Fogarty
Genevieve Lawson
Giordyn Garrick
Gynelle Rogers
Hallie Freeman
Hannah Kelly
Hannah Wallace
Hannah Williams
Harley Inia-Paora
Hilary Davis
Hine-Huia Te Awhe
Hollie Cranston
Holly Ransley
Holly Riordan
Hope Howchow
Jade Freestone
Jaene Louw
Jamie-Leigh Campbell-Powell
Janaya Te Tomo
Jazz Woonton
Jean Adams
Jennifer Bannan
Jenny Eastwood
Jessica De Jonge
Jessica Purcell
Jessica Thomson
Jessica Vedder
Jessie Guthrie-Biggs
Jodie Waite
John Walker
Judith Punshon
Julia Connell
Justine Linton
Justine Van Zyl
Kaitlin Hoare
Kane Morris
Kanwarbir Singh
Kara Kentell
Kara Miller
Kate Burt
Katie Grigg
Katie Robinson
Katrina Dodge
Kayla Austin
Kayla Fisher
Kayla Pope
Kayley Thomsen
Kelly Clark
Kendall Thompson
Kevin Price
Krista-Lee Haslam
Kristy Rogers
Krystal Trowbridge
Kylee Brown
Kylie Arthur
Kylie Booth
Kylie McGregor
Lauren Hendry
Leanne Hannay
Leone Oldfield
Levi Wall
Liam Northcott
Liane Pedersen
Liarnee Allan
Lisa Gill
Lisa Noble
Lisa Simpson
Lucia Hutton
Madison Plaskett
Marche Khan
Marque Morehu
Megan Roberts
Megan White
Melinda Holmes
National Certificates Issued WHERE CONSENT HAS BEEN GIVEN TO PUBLISH NAMES
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Melissa Joyce
Melissa Naylor
Melissa Teller
Mitchell Wilson
Molika Mao
Natalie Henderson
Natasha Boot
Natasha McLean
Ngareta Copeland
Olivia Davies
Olivia Hynes
Olivia Lewis
Olivia Wilson
Paige Churchill
Paul Fitch
Poppy Hayward
Rachel Forscutt
Rebecca Brewin
Rebecca Sime
Rebekah Hayden
Renee Lee
Rowena Sanders
Roxanne Abrahams
Roxanne Threadgold
Samantha Cowie
Samantha Ferris
Samantha Hopkins
Samantha Norris
Samantha Tree
Samantha Virtue
Samantha Wilden
Sara Galloway
Sarah Lewis
Sarah Ransfield
Sarah Smith
Sasha Zamani
Sharnah Herlihy
Sherrie-Lee Moleta
Siope Tuungafasi
Skye Hedley
Sophie Baty
Soraja Meade
Stacey Martin
Stefanie Hack
Stephanie Hunt
Stephanie Jackson
Stevie Cox
Stevie Lewis
Sydney Hyde
Tania Hayes
Taryn Nicholls
Tayla Rowland-Brunton
Terrele Fleming
Tessa Hill
Trent Fleet
Uella Watson
Valerie Adams
Vianca Henning
Victoria Carling
Viliame Koroi
Wha-nau Paniora
HAIRDRESSING (L5) Advanced Cutting
Aimee Stuart
Dylan Quinn
Jacqui Malcolm
BARBERING (L3)
Anna Browne
Christina Makhmetova
Christopher Terry
Craig Drummond
Dempsey Alipia
Jacqueline Gallichan
Jodie Boland
Julian Maloney
Kerry-Ann Glover
Lisa Salter
Michelle MacFarlane
Samuel Monaghan
Sharon Small
Sue Phelan
BEAUTY SERVICES (L3) Nail Technology
Amanda Bryant
D’Arna Lauder
Emily Gudopp
Michelle Sanders
Sara Jackson
Sara Pigott
Teena Cooke
Vanessa Adlam
BEAUTY SERVICES (L3) Cosmetology
Pepito Silverio
BUSINESS (L3)
Amanda White
Cara Healy
Mikayla Narbey
Paula McFlynn
Renee Spicer
MANAGEMENT (L5)
Assessment
of Hairdressing
Charlotte Dawn
Colthurst
Teresa Colthurst
MANAGEMENT (L5)
Salon Management
Charlotte Dawn
Colthurst
Teresa Colthurst
MANAGEMENT (L5)
Tutoring
in Hairdressing
Charlotte Dawn
Colthurst
Teresa Colthurst
34
Katrina Chunn OTTO
SEE
YO
UR
WO
RK IN
PRI
NT
2o15 performance35
36
Female 94%
Male 6%
GENDER COMPARISON
NZA IT MA NF Total
Hairdressing 642 55 179 32 908
Advanced Cutting 2 1 3
Salon Management 1 1 2
Barbering 30 3 3 36
Beautician 3 3 6
Nail Technology 15 10 25
Cosmetology 2 2
Business 17 3 20
Beauty Therapy 11 11
TOTAL 1013
CONTINUING TRAINING PROGRAMMES as at December 2015
IT: TEC part-funded Industry Trainee or Apprentice
MA: TEC part-funded Modern Apprentice
NZA: TEC part-funded New Zealand Apprentice
NF: TEC non-funded training
2015 Performance
37
Hairdressing (Professional Stylist) 213
Barbering 26
Beauty Services (Nail Technology) 8
Hairdressing (Hairdressing Practice) 3
Hairdressing (Advanced Cutting) 3
Business 3
Beauty Services (Cosmetology) 1
FINAL ASSESSMENTS COMPLETED LEARNER AGE RANGE
LEARNER ETHNICITY QUALIFIATION COMPLETED
Unit Standard 2759 249
Unit Standard 10650 25
Unit Standard 2757 217
15-19 years 334
20-24 years 400
25-29 years 141
30-34 years 50
35-39 years 32
40-44 years 17
45-49 years 22
50-54 years 10
55+ years 7
European 76.7%
Maori 15.0%
Other 7.5%
Pacific Islander 0.8%
38
GATEWAY PARTICIPATION NUMBERS
81Schools
142Students
GATEWAY SCHOOL PARTICIPATION NUMBERS GATEWAY STUDENT NUMBERS
65
212 3
Year 1Hairdressing
Year 2Hairdressing
Beauty Barbering Year 1Hairdressing
Year 2Hairdressing
Beauty Barbering
102
34
2 3
39
financials statements
FOR THE 12 MONTHS ENDING 31 DECEMBER 2015
40
FOR THE 12 MONTHS ENDED 31 DECEMBER 2015
Financial Statements
ContentsAuditors’ Report 41
Statement of Financial Performance 42
Statements of Movements in Equity 45
Statement of Financial Position 46
Notes to the Financial Statements 47
41
Independent Auditor’s Report
To the Members of New Zealand Hair and Beauty Industry Training Organisation Incorporated
Report on the Financial Statements
New Zealand Hair and Beauty Industry Training Organisation Incorporated on pages 42 to 51, which comprise the statement of financial position as at 31 December 2015 and the statement of movements in equity, and statement of financial performance for the year then ended, and a summary of significant accounting policies and other explanatory information.
This report is made solely to the Members as a body, in accordance with the Constitution of New Zealand Hair and Beauty Industry Training Organisation Incorporated. Our audit has been undertaken so that we might state to the Members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Members, as a body, for our audit work, for this report, or for the opinions we have formed.
Board’s Responsibility for the Financial Statements
The Board are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, New Zealand Hair and Beauty Industry Training Organisation Incorporated.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of New Zealand Hair and Beauty Industry Training
Organisation Incorporated as at 31 December 2015 and its financial performance for the year then ended in accordance with generally accepted
accounting practice in New Zealand.
BDO WELLINGTON 13 April 2016 Wellington, New Zealand
BDO WELLINGTON
42
REVENUE NOTE 2015 2014
Regional Apprentice Fees 116,343 135,876
HITO Annual Employer Fees 254,211 266,389
NZARH – Association Levy 35,337 39,956
Membership Fees 3,844 3,270
Nail Qualification 6,890 11,861
Appeal on Assessment 765 696
Barbering Fees 15,815 2,622
Assessment Fees 100,928 145,452
Workshops – Assessor Training 3,210 3,912
Employer/Apprentice Workshops 3,280 717
National Certificate Income 4,800 7,321
Industry Development Recovery 50,920 87,139
Credit Fees 29,911 38,147
Moderation Recovery 142,382 175,506
Project Funding 30,000 30,000
Tertiary Education Commission Funding (2) 2,692,884 2,809,747
3,491,520 3,758,611PUBLICATION SALES
Publication Sales 33,045 42,494
Less Cost of Sales -29,329 -34,520
3,716 7,974GATEWAY INCOME
Gateway Income 21,630 34,863
Less Gateway Expenses -4,289 -9,278
17,341 25,585OTHER INCOME
Interest – National & Regional Offices 417,175 422,771
Management, Business & Advanced Qualifications 18,629 20,321
Sundry Income 3,582 1,522
439,386 444,614TOTAL REVENUE 3,951,963 4,236,784
FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015Statement of Financial Performance
These Statements are to be read in conjunction with the notes on pages 47 to 51.
43These Statements are to be read in conjunction with the notes on pages 47 to 51.
EXPENDITURE NOTE 2015 2014
Seminar Expenses 19,284 20,836
Advertising/Marketing 447,530 390,960
Surveys/Reviews/Projects 170,442 44,182
Membership Expenses 368 574
Nail Qualification Expenses 3,768 10,609
Assessment Expenses 2759/2757 83,739 98,407
Barbering Fees 4,568 1,366
Off Job Training Paid (11) 767,774 875,567
Board & Travel Subsidy 28,700 29,109
National Certificate Costs 2,170 3,435
Accreditation/Credit Fees 32,883 41,051
Moderation Expenses 45,873 38,891
Literacy Project 41,776 18,327
Industry Development 238,500 186,874
Programme/Beauty Development 7,521 36,000
Qualification Adv Committee 9,273 8,375
Workshops 17,654 7,103
Movement in Provision for Bad Debts 9,310 7,809
Bad Debts Written Off 2,460 1,623
Management, Business & Advanced Qualifications 19,772 27,627
HITO Apprentice & Employer Incentive 0 7,000
1,953,365 1,855,725
FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015Statement of Financial Performance
44
GENERAL OVERHEADS NOTE 2015 2014
ACC Earner/Employer Premiums 6,405 5,538
Accommodation 16,822 16,859
Accounting & Legal Expenses 8,918 20,231
Advertising White Pages 4,705 4,770
Audit Fees 13,886 19,280
Amortisation and Depreciation (5) & (6) 88,944 81,575
General Expenses (4) 332,069 268,632
Insurance 14,554 14,534
Board Meetings & Honoraria 60,165 54,604
Printing & Stationery 16,997 16,299
Office Rent 117,990 113,649
Lease Expenses 12,715 12,549
Salaries & Wages 1,491,035 1,438,931
Staff Recruitment 14,392 13,689
Staff Training 6,703 3,311
Targeted Review Of Qualification (TROQ) Expenses 37,769 27,809
Telephone & Internet 51,748 55,420
Vehicle Leases 68,956 62,496
Vehicle Running Expenses 55,599 38,451
2,420,372 2,268,627TOTAL EXPENDITURE 4,373,737 4,124,352
OPERATING SURPLUS BEFORE TAX -421,774 112,432
Provision for Taxation 0 0
NET OPERATING SURPLUS AFTER TAX -421,774 112,432
FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015Statement of Financial Performance
These Statements are to be read in conjunction with the notes on pages 47 to 51.
45
NOTE 2015 2014
EQUITY AT START OF PERIOD 9,509,608 9,397,176
NET OPERATING SURPLUS AFTER TAX -421,774 112,432
EQUITY AT END OF PERIOD 9,087,834 9,509,608
FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015Statement of Movements in Equity
These Statements are to be read in conjunction with the notes on pages 47 to 51.
46
EQUITY NOTE 2015 2014
EQUITY 9,087,834 9,509,608
CURRENT ASSETS
Accounts Receivable & Accrued Income 244,268 250,987
Stock on Hand 23,341 22,971
Prepayments 55,392 34,273
GST Refund 163,461 0
Bank Accounts – Current 35,557 65,026
Bank Accounts – Call Deposits 40,274 786,459
Term Deposits (7) 8,695,659 9,590,398
9,257,951 10,750,114NON CURRENT ASSETS
Fixed Assets (5) 127,183 164,521
Intangible Assets (6) 398,760 47,634
525,943 212,155TOTAL ASSETS 9,783,894 10,962,269
CURRENT LIABILITIES
Apprentice Fee received in Advance 58,841 80,138
Accounts Payable and Accruals 555,961 445,081
GST Payable 0 15,989
TEC Liability (2) 81,259 911,453
696,061 1,452,661TOTAL LIABILITIES 696,061 1,452,661
NET ASSETS 9,087,834 9,509,608
AS AT 31 DECEMBER 2015Statement of Financial Position
For and on behalf of the Executive Board
Flora Gilkison, Chairperson Erica Cumming, Chief Executive Officer
13 April 2016 13 April 2016
These Statements are to be read in conjunction with the notes on pages 47 to 51.
47
FOR THE 12 MONTHS ENDED 31 DECEMBER 2015Notes to the Financial Statements
1. STATEMENT OF ACCOUNTING POLICIES
These statements have been prepared in accordance with the Incorporated Societies Act 1908 and the Financial Reporting Act 1993.
A. GENERAL ACCOUNTING POLICIES
The measurement base adopted is that of historic cost.
Differential Reporting
The NZ Hair and Beauty Industry Training Organisation Inc (“HITO”) is a qualifying entity within the New Zealand Institute of Chartered
Accountants Differential Reporting Framework. The Organisation is not publicly accountable and qualifies under the size criteria. The Organisation
has taken advantage of all differential reporting concessions available to it except for GST, the statements are presented exclusive of GST.
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in New Zealand (NZ GAAP)
applying the old NZ Financial Reporting Standards.
B. PARTICULAR ACCOUNTING POLICIES
Accounts Receivable
Accounts receivable are valued at expected realisable value. HITO has a policy of provisioning for bad debt. All debts over 90 days that do not
have a repayment plan are lodged with a debt collector. All debtors that have been lodged, or are about to be lodged have a provision of 50%.
Stock
Stocks are valued at the lower cost on a FIFO basis or net realisable after due allowance for damaged or obsolete stock.
Fixed Assets
Fixed Assets are recorded at cost less depreciation to date.
All fixed assets are depreciated over their expected useful lives using the straight line method of depreciation, using the maximum rates
allowed by the Inland Revenue Department. The Depreciation Rates used are as follow:
Furniture & Fixtures 8 – 30% Hardware-Computer 30 – 48%
Office Equipment 10.2 – 48% Leasehold 7.8%
These notes are to be read in conjunction with the statements on pages 42 to 46.
48
Intangible Assets
Intangible assets are measured at cost less accumulated amortisation. Amortisation is recognised in the profit and loss on a straight line
basis. The amortisation rate used is as follows:
Goods and Service Tax
The Financial Statements are stated exclusive of Goods and Service tax except for Accounts Receivable and Accounts Payable which have
been stated inclusive of Goods and Services tax.
These notes are to be read in conjunction with the statements on pages 42 to 46.
Government Grants
All grant monies have been recognised as income when earned and any unearned amounts have been recognised as income in advance.
C. CHANGES IN ACCOUNTING POLICIES
There has been no change in accounting policy for the HITO.
A new accounting Standards Framework (incorporating a tier strategy) developed by the External reporting Board (XRB) will be effective for
reporting period ending 31 December 2016. HITO will be able to report under Tier 2 of the Framework.
2. TERTIARY EDUCATION COMMISSION
The TEC funding recovery has been accrued in line with the information available from TEC.
3. TAXATION
HITO registered as a Charitable Trust in June 2008, Taxation Provision was only provided up to this period. There is no tax provision for the
2015 year.
Training Resources 15 – 20% Software-Computer 48%
2015 2014
Funding Received 2,774,143 3,721,200
Overpaid Funding to be returned (Included as Balance Sheet Liability) (81,259) (911,453)
2,692,884 2,809,747
These notes are to be read in conjunction with the statements on pages 42 to 46.
49
These notes are to be read in conjunction with the statements on pages 42 to 46.
5. FIXED ASSETS
2015 2014
Bank Charges 2,415 2,216
Cleaning 3,024 2,992
Computer Maintenance 119,255 82,918
Electricity 7,228 7,692
Freight, Courier & Postage 33,188 35,829
General Expenses 7,134 4,525
General Meeting Costs 64,160 44,967
ITO Federation Subscription 25,625 25,625
National Office Expenses 20,163 18,362
Repairs and Maintenance 0 926
Travel Expenses 49,877 42,580
332,069 268,632
2015
COST ACCUMULATED DEPRECIATION
DEPRECIATION BOOK VALUE
Furniture & Fixtures 108,112 75,674 12,502 32,438
Hardware – Computer 186,221 167,101 28,776 19,120
Leasehold Improvements 103,959 39,988 8,109 63,971
Office Equipment 56,012 44,358 6,166 11,654
454,304 327,121 55,553 127,183
4. GENERAL EXPENSES
These notes are to be read in conjunction with the statements on pages 42 to 46.
50
2014
COST ACCUMULATED DEPRECIATION
DEPRECIATION BOOK VALUE
Furniture & Fixtures 108,112 63,170 13,113 44,942
Hardware – Computer 169,315 138,326 27,232 30,989
Leasehold Improvements 103,959 31,879 8,109 72,080
Office Equipment 54,702 38,192 9,954 16,510
436,088 271,567 58,408 164,521
2015
COST ACCUMULATED AMORTISATION
AMORTISATION BOOK VALUE
Software – Computer 334,397 316,151 29,388 18,246
Training Resources 384,517 4,003 4,003 380,514
718,914 320,154 33,391 398,760
2014
COST ACCUMULATED AMORTISATION
AMORTISATION BOOK VALUE
Software – Computer 334,397 286,763 23,167 47,634
334,397 286,763 23,167 47,634
6. INTANGIBLE ASSETS
7. TERM DEPOSITS
These notes are to be read in conjunction with the statements on pages 42 to 46.
2015 2014
Westpac Term Deposit 01 2,367,779 2,294,082
Westpac Term Deposit 06 2,253,289 2,157,452
Westpac Term Deposit 08 2,260,759 2,636,828
ASB Term Deposit 0074 1,003,532 1,247,426
ASB Term Deposit 0073 810,300 1,254,610
8,695,659 9,590,398
These notes are to be read in conjunction with the statements on pages 42 to 46.
51
8. OPERATING LEASE COMMITMENTS
The operating lease commitments as at 31 December 2015 are:
9. OTHER COMMITMENTS
As at balance date, HITO had no other committed payments (2014: NIL).
10. CONTINGENT LIABILITY
Except as noted in Note 2 there are no contingent liabilities for HITO at this time (2014: NIL).
11. OFF JOB TRAINING
2015 2014
Current 148,942 196,557
Non Current 98,600 244,695
247,542 441,252
2015 2014
HITO Payments 767,774 875,567
Apprentice Contributions 371,349 435,802
1,139,123 1,311,369
HITO Payments are course fees paid on behalf of apprentices to providers. Apprentice Contributions are course fees and related costs that
are paid directly to the providers.
12. SUBSEQUENT EVENTS
No events subsequent to balance date have materially impacted the accuracy of these financial statements.
13. RELATED PARTIES
A Millar (Board member) is also an Industry Assessor and M Gibbons (Board member) is contracted to deliver Employer Seminars through
Shock Consulting Limited.
These notes are to be read in conjunction with the statements on pages 42 to 46.
HITO NATIONAL OFFICELevel 1, 95 Thorndon Quay
Wellington 6011
PO Box 11 764, Manners Street Wellington 6142
T: (04) 499 1180 | F: (04) 499 3950
www.hito.org.nz