Tertiary Education in New Zealand: Radical changes to Funding and Accountability

Abstract

This paper summarises the main provisions of new requirements for financial reporting by tertiary institutions and a new EFTS based funding system. The new arrangements were published in January 1991 by the Ministry of Education. The paper indicates that financial reporting by the NZ universities, with one or two exceptions, has been poor and that the new requirements will improve accountability to stakeholders. Some weaknesses are identified in the area of timeliness, accessibility, asset valuations and the allocation of indirect costs.