5 FEBRUARY

NEW ZEALAND GAZETTE

265

Compliance with borrowing covenants

| 25. | During the last or current financial year (as at the time of assessment), an institution breached any financial covenants under any loan agreement or other financing facility. | | ● | |
| 26. | An institution has carried out a material activity which requires a consent from the Secretary for Education pursuant to section 192 of the Education Act 1989 and has not obtained such a consent. | ● | | |
| 27. | An institution has not complied with all material conditions of any consent received from the Secretary for Education under section 192 of the Education Act 1989 in the last completed or current financial year of the institution (as at the time of assessment). | ● | | |

Operations

| 28. | An institution has not developed and/or does not maintain internal financial and performance reporting of a nature reasonably to be expected of such an institution. | | ● | |
| 29. | An institution has failed, in a material respect, to provide in a timely manner any information required to be provided pursuant to section 195B of the Education Act 1989 or section 45B of the Public Finance Act 1989. | | ● | |
| 30. | There are grounds on which it can reasonably be concluded that an institution has acted, is acting, or is likely to act recklessly in a material respect. | | ● | |
| 31. | There are grounds on which it can reasonably be concluded that an institution or its council has acted, is acting, or is likely to act contrary to any applicable law, regulation, order or bylaw in a material respect. | | ● | |
| 32. | An institution has lost or failed to renew within the period of 18 months immediately prior to the time of assessment, or is likely to lose or fail to renew, accreditation with New Zealand Qualifications Authority or any body to which New Zealand Qualifications Authority has delegated its approval or accreditation powers (such as the Polytechnic Programmes Committee or the Colleges of Education Academic Committee), or with The New Zealand Vice Chancellors Committee for Accreditation for any qualification (other than a qualification which the institution no longer intends to offer). | | ● | |
| 33. | Within the period of 18 months immediately prior to the time of assessment, an institution has not developed, and/or updated at least annually, a business plan of the nature reasonably expected of such an institution, including financial projections for the following three years. | | ● | |
| 34. | Within the period of 18 months immediately prior to the time of assessment, an event has occurred or circumstance arisen which is likely, in the near future, to result in a material reduction in income, a material increase in outgoings, a material liability or a material increase in risk for an institution (having regard, in each case, to the likely impact of any mitigating actions taken or likely to be taken by the institution). | | ● | |

Assessment of budget and financial projections

| 35. | On the basis of the most recent (as at the time of assessment) annual budget approved by the council and any other relevant financial forecasts or projections provided by the institution to the Secretary, there are reasonable grounds to believe that the institution is not, or is likely in the near future to not be, able to pay some or all of its debts as they become due in the ordinary course of business. | | ● | |