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.

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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

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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.

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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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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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beauty update report

TARGETED REVIEW OF QUALIFICATIONS (TROQ)

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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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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



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


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



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


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


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.


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


49


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


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


2015 2014

Westpac Term Deposit 01 2,367,779 2,294,082



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


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.


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

Documents

HITO Annual Report 2015