Funding and payments

Funding and payments

Last updated 7 May 2018
Last updated 05/07/2018

This page provides information about how Intensive Literacy and Numeracy (ILN) funding is set, funding allocation, funding rate, funding calculation, payment and funding recovery.

Funding

The Literacy and Numeracy funding mechanism is issued by the Minister responsible for tertiary education. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for us to allocate the funding and what the funding can be used for, and details how we administer the fund. 

Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan (Plan).

A TEO that receives ILN funding is required to:

Funding for ILN is set through the Government’s annual budget process. We determine the appropriate amount of ILN funding for a TEO.

Through each TEO’s Plan, we agree the mix of provision (MoP). This includes the:

  • programmes that the funding can be used for
  • allocation of funding towards each programme, and
  • volume of delivery expected from each programme.

Funding allocation

Funding for ILN is approved through the Investment Plan process.

When allocating funding, we consider:

  • whether the TEO is eligible for ILN funding
  • the nature of the ILN programmes offered by the TEO
  • the region of delivery of the TEO
  • the TEO’s use of the Literacy and Numeracy for Adults Assessment Tool with learners
  • the TEO’s historical delivery volumes compared to delivery commitments
  • pastoral care arrangements for students made by the TEO, and
  • the TEO’s performance, including against ILN policy settings.

Funding rate

ILN provision is funded at a fixed rate of $25 per hour of face-to-face literacy, numeracy, or literacy and numeracy, tuition, i.e. each hour of provision not attended by the learner is not to be reported and is not funded.

Note: Delivery to learners receiving less than 80, and more than 300, hours (if eligible) is also funded, not just delivery to learners receiving 80 to 300 hours. See Eligibility (Programme eligibility).

Payment

ILN funding is paid in monthly instalments. The payment amounts are in equal instalments from January to June, and in equal instalments from July to December.

Funding recoveries

We are required to recover funding where the results of an audit, reporting or statistical return show a TEO has under-delivered against expected performance targets as described in their agreed Investment Plan. See Condition: Repayment of ILN Fund Funding.

Recovery of ILN funding is based on aggregate hours of actual, face-to-face delivery (actual attendance). This means the number of funded hours in the TEO’s approved allocation less the total number of hours delivered in the calendar year, multiplied by the funding rate. For example:

Hours funded - Total hours delivered = under/over-delivery or recoverable amount.

5,000 hours approved

4,683 hours delivered

Therefore 5,000 – 4,683 = 317 hours under-delivered

317 hours x $25 = $7,925

$7,925 to be recovered

In addition, funding is recovered for reported delivery that is ineligible for funding.

Recoveries are based on the end of year report and occur in the following year.

Principles for 2019 funding allocation

Purpose of the fund

The Intensive Literacy and Numeracy (ILN) Fund supports the intensive provision of high quality, fees-free literacy and numeracy learning opportunities for learners with low-level literacy and numeracy skills.

We will calculate your indicative allocation using prior performance data

This will include:

  • actual delivery volume (by learner hours), and
  • percentage of learners that received learning hours between 80 – 300 hours.

Your previous performance against these measures will determine your indicative allocation.

Your eligibility to receive funding is subject to criteria outlined in the funding mechanism.

Please note, your indicative funding allocation is no guarantee of your final funding allocation.

Your final allocation will be based on your Investment Plan, performance and other strategic considerations

We will consider your performance information alongside strategic priorities as outlined in Plan Guidance, the Tertiary Education Strategy (TES), the Focus Area Briefs and Investment Briefs.

We will also consider your use of the Literacy and Numeracy for Adults Assessment Tool. 

Based on these considerations your allocation may stay the same or decrease. Alternatively, you may receive a nil allocation.

We will only consider an increase to funding where the TEO has requested it and they are high-performing. We will address requests for funding increases as part of our engagement process following the submission of draft Investment Plans or proposal if you are Plan exempt.

We may take into account any other measure that we determine to be appropriate when allocating funding.

We will recover for under-delivery or for funding you weren’t entitled to receive

We will recover the difference between the total dollar amount approved in your funding agreement and the total dollar amount actually delivered.

We may make other recoveries where these are required and are provided for in your funding conditions.

We may revoke or suspend your funding if you do not provide us with timely or adequate reporting information.