Whitireia Community Polytechnic is distancing itself from a scandal that has erupted over funds and assets missing from the polytech’s student association.

In a press release sent to the Dominion Post – which broke the story on Saturday – and to staff, CEO Don Campbell (right) points out that the students’ association is an independent body over which the polytech has no direct control.

The polytech collects the association’s student fees for it, but stopped handing over the money earlier this year when it became concerned about accountability.

Police are now investigating the matter after new association officers were alerted to problems by the association’s auditor.

In his statement, Mr Campbell said:

The Whitireia Independent Students Association (WISA) last Friday met with their auditor, Imran Kamal at his instigation.

He advised some potentially serious actions relating to expenditure which have been referred to the Police for further investigation.

The Polytechnic, despite having no legal control over the association which is an independent Incorporated Society, will support the Police in their investigation and those remaining at the association who are seeking to resolve these matters.

WISA, membership of which  is compulsory for all students, unless exempt,  under the current legislation, is an autonomous organisation with its own constitution, its own election of officers according to its constitution, and separate accounting, management and audit processes from the polytechnic.

WISA sets an annual levy, currently $135 up from $90 in 2008, for which the polytechnic is the collection agent, collecting the levy from students and paying to the association who spend it according to their own plans and priorities without requiring Polytechnic approval.

In 2009 approximately $345k was paid to the association but so far there has been no advice to the polytechnic about how much was actually spent in 2009 as we have not been provided with a set of accounts.

I understand expenditure was significantly more than income.

I became aware of a potential issue with the audit in June this year and advised the then President of WISA, Loretta Ryder, that payment of levies would cease until audited accounts had been provided.

Council and senior management were advised of potential issues at the same time.

Recently, the President was stood down and Tim Manu assumed the role of Acting President.  Last week I wrote to him reiterating the need for audited accounts.

The polytechnic is currently holding approximately $70k in levies collected but not paid to WISA for 2010.  This demonstrates a prudent approach under the current circumstances.

It is important to note that WISA, as with all student associations is independent from and separate to the institution whose students it represents.

We have no say over how they manage their business however there are large sums of money involved and accountability back to students can be tenuous and fraught depending on the approach taken by executives of the association.

We will be looking at a range of options in conjunction with WISA to strengthen their accountability and provide whatever assistance we can to improve the way they manage student funds.

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