Conditions – 2016

Conditions – 2016

Last updated 9 February 2017
Last updated 02/09/2017

The information on this page is historical. 

For the 2017 conditions for the Adult Literacy Educator (ALE) Fund, refer to:

Generic conditions that relate to all on-Plan funds

Specific conditions that relate to this fund only


This page outlines the 2016 funding conditions for the Adult Literacy Educator (ALE) Fund.

The funding mechanism for Literacy and numeracy provision (PDF, 456Kb) requires the TEC to impose a number of conditions on funding received by a tertiary education organisation (TEO). The TEC imposes those conditions under Section 159YC(2)(a) of the Education Act 1989 (the Act).

We may also impose other conditions on funding that we consider are necessary to ensure that the specified outcomes in an Investment Plan that relate to the tertiary education programmes and activities for which funding is being given are being achieved or will be achieved. We impose those conditions under Section 159YC(2)(b) of the Act.

A TEO that receives the Adult Literacy Educator (ALE) Fund must comply with the conditions specified in its funding approval letter, and in the Act. Those conditions are also set out below. 

If we are satisfied on reasonable grounds that a TEO has not complied or is not complying with the conditions on funding we may revoke or suspend the funding under Section 159YG of the Act.

Legislative requirements

As specified in section 159YC(1) of the Act, it is a condition of a TEO receiving funding that the TEO will supply to the TEC, from time to time as required, and in the form we specify, any financial, statistical, or other information that a TEO is required to supply.


A TEO that receives the ALE Fund must comply with the conditions specified in its funding approval letter, and in the Act. Those conditions are also set out below.

NOTE: For your reference, you can view the archived Adult Literacy Educator (ALE) conditions (PDF, 189 Kb) that applied to 2015 funding only.

ALE001: TEO to supply information to the TEC

As specified in section 159YC(1) of the Education Act 1989, it is a condition of a Tertiary Education Organisation (TEO) receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that a TEO is required by the TEC to supply.

TEO to submit reports

The TEO must supply a report to the TEC Sector Helpdesk by 15 April, 15 August, and 31 January, and that specifies:

a)    the number of learners who have completed their qualifications within 12 months of commencing their study; and

b)    the number of learners who are on track to complete their qualifications 12 months after commencing their study.

The TEO must use the report template provided by the TEC. 

TEO to supply financial viability information to the TEC

The TEO must supply to the TEC information relating to the financial viability of the TEO if the TEC requests that information. 

TEO to supply information to the TEC in certain situations

The TEO must notify the TEC immediately if:

a)   any record that the TEO is required to keep under the Education Act 1989 has been lost or damaged; or

b)   the TEO is no longer able to comply with a condition of funding.

PTE to supply information to the TEC in certain situations

This condition applies to a private training establishment (PTE). 

The PTE must notify the TEC immediately if:

a)   its New Zealand Qualifications Authority (NZQA) registration or accreditation is cancelled; or

b)  an Insolvency Event (see below) occurs in relation to it; or

c)   it has a Change of Control (see below); or

d)  it transfers (or agrees to transfer) all or a material part of its assets to a third party; or

e)   there is any change to the persons who make up its governing body; or

f)   it merges with or acquires any other entity or business;

g)  it has changed its name; or

h)   the location or locations at which it delivers a course or courses has changed.

Definition of Insolvency Event

"Insolvency Event" means, in relation to a PTE, the occurrence of any of the following events:

a)  that PTE ceases or threatens to cease to carry on all or any material part of its business or operations;

b)  an application is made (which is not withdrawn, stayed or dismissed within 10 Business Days of being made) to a court for an order, or an order is made, or an effective resolution is passed to place the PTE in liquidation or voluntary administration previously approved in writing by the TEC;

c)  that PTE proposes to enter into, any general assignment, arrangement, compromise or composition with or for the benefit of any of its creditors with a view to avoiding insolvency except as previously approved in writing by the TEC;

d)  an encumbrancer takes possession, or a trustee, receiver, receiver and manager, administrator, liquidator, provisional liquidator, inspector under any companies or securities legislation, or similar official, is appointed in respect of that PTE or the whole or any material part of its assets, or the board of directors request that a creditor or any other person appoint a receiver to that PTE);

e)  a distress, attachment or other execution is levied or enforced upon, or commenced against, any assets of that PTE and is not discharged or stayed within 10 Business Days, except, in each case, when the TEC is satisfied that that PTE is contesting the same in good faith by appropriate proceedings;

f)   that PTE is declared or becomes insolvent, is unable to pay its debts when they fall due, or is presumed unable to pay its debts in accordance with any applicable legislation;

g)  that PTE suspends or stops or threatens to suspend or stop payments generally or a moratorium is agreed or declared in respect of or affecting all or any material part of its indebtedness;

h)  that PTE seeks or obtains protection from its creditors under any statute or any other law;

i)   that PTE is declared to be a corporation at risk under the Corporations (Investigation and Management) Act 1989;

j)   a statutory or judicial manager is appointed over all or any of the assets of that person;

k)  any recommendation is made by the Financial Markets Authority to the Minister of the Crown who is responsible for the administration of the Corporations (Investigation and Management) Act 1989 that that PTE or any associated person of that PTE be placed in statutory management under that Act;

l)   all of the directors of that PTE resign, or signal their intention to resign; or

m)  anything analogous or having a substantially similar effect to any of the events specified in paragraphs (a) to (m) above happens under the laws of any applicable jurisdiction in respect of that PTE;

Definition of Change of Control

"Change of Control" means, in relation to a person (the "first person"), when a person acquires Control of the first person or when a person who controls the first person ceases to do so.

"Control" means, in relation to a person (the "first person"), the ability of another person (the "second person") to ensure that the activities and business of the first person are conducted in accordance with the wishes of the second person, whether through ownership of voting shares, contract or otherwise.  Without limitation, the direct or indirect beneficial ownership of more than 50% of the voting rights in a body corporate is deemed to constitute Control.

ALE002: TEO to continue to meet specified criteria

The TEO must, for the length of the funding period, continue to be:

a)    an institute of technology or polytechnic (ITP); or

b)    a private training establishment (PTE); or

c)    a wānanga; or

d)    a university. 

ALE003: TEO to continue to meet quality assurance requirements

The TEO must continue to be quality assured by:

a)    the New Zealand Qualifications Authority, if the TEO is an ITP, PTE, or wānanga; or

b)    the New Zealand Vice-Chancellors’ Committee (Universities NZ), if the TEO is a university. 

ALE004: TEO to ensure that learners meet criteria

The TEO must ensure that each learner in an eligible ALE programme of study or training:

a)    is, and continues to be, a New Zealand citizen, or resident of New Zealand; and

b)    is 18 years of age or over; and

c)    has the academic ability to complete the programme of study that leads to an appropriate qualification. 

ALE005: TEO to ensure programmes meet criteria

The TEO must ensure that a programme of study or training in which an eligible learner is enrolled leads to a literacy and numeracy educator qualification (or qualifications) at level 5 on the NZQF.

ALE006: TEO not to receive other Crown funding

The TEO must:

a)    not (without the TEC’s prior written consent) seek or obtain funding from any Crown source other than the TEC to fund a programme or training scheme that receives ALE funding; and

b)    notify the TEC immediately if it becomes aware of any circumstances that might result in a breach of paragraph a) of this condition.

ALE007: TEO to use funding responsibly

The TEO must use the funding:

a)    lawfully, responsibly, and for the purposes for which it is provided; and

b)    in a manner consistent with the appropriate use of public funds.

ALE008: TEO not to claim funding for recognised prior learning

The TEO must not claim funding for recognised prior learning credited to a learner.

To ensure that the TEO is able to comply with this condition, the TEO must:

a)    ask each learner to specify prior learning he or she has undertaken; and

b)    review the information provided by the learner when admitting the learner into the programme or qualification; and

c)    retain documents that confirm that the learner has demonstrated the required knowledge or skill.

For the avoidance of doubt, recognised prior learning does not include repeated learning or training that the applicable quality assurance body requires learners to repeat periodically.

ALE009: TEO to repay over-funding

If the TEO receives ALE funding that is greater than it should have been, or that it was not entitled to receive, the TEO must treat the amount of the over-funding as a debt due to the Crown that:

a)    is repayable on demand; and

b)    may be set-off against all or any funding or any sum of money payable by the TEC to the TEO.

ALE010: Tertiary Education Institutions to keep enrolment records

This condition applies to a tertiary education institution (TEI) that receives ALE funding via an Investment Plan.

The TEI must keep accurate and up-to-date records of enrolments in accordance with any requirements developed by the TEC.

ALE011: TEO to verify learner identity

The TEO must verify the identity of each learner enrolled in a programme of study or training of more than 0.03 EFTS by doing one or more of the following:

a)  confirming that all data fields match the learner's NSN; or

b)  receiving an assertion through the Department of Internal Affairs’ RealMe® online identity verification service; or

c)  sighting the original or certified copy of a current passport; or

d)  sighting the original or certified copy of one or more of the following documents:

(i)  a birth certificate; or

(ii)  a certificate of identity; or

(iii) a New Zealand certificate of citizenship; or

(iv) an expired passport that has not been cancelled; or

e)  if a student is unable to obtain a birth certificate for the purposes of (d)(i) above, contacting the TEC to confirm that a whakapapa statement signed by both the student and a kaumātua is acceptable evidence of identity.

For the purposes of this condition, a certified copy is a photocopy that has been endorsed as a true copy of the original. To be certified, the document must:

a)  be certified by an official of the issuing authority or a person authorised by law in New Zealand to certify documents, such as a Justice of the Peace, a lawyer or a court official (Court Registrar or Deputy Registrar); and

b)  have the official's signature on each page, with the name and title of the official shown clearly below his or her signature.

ALE012: TEO to make information available to TEC and its appointed representative for the purpose of monitoring

By accepting funding from the TEC the TEO is deemed to have acknowledged that one of the TEC’s statutory functions is to monitor the performance of organisations receiving funding from the TEC and that it is a statutory condition that the TEO must maintain certain records and supply certain information to the TEC.

Accordingly, by accepting funding from the TEC the TEO is deemed to have acknowledged that the TEC needs access to certain information to enable it to undertake its monitoring activities and, as such, the TEO authorises the TEC (and any representative acting on behalf of the TEC) to have reasonable access to information needed by the TEC to undertake its review and monitoring function.

This includes the TEO authorising the TEC and the TEC’s appointed representatives to have reasonable access to the TEO’s premises and any premises where the TEO’s records are kept for the purpose of enabling monitoring and review activities to be undertaken at those premises.