Funding and payments

Funding and payments

Last updated 8 June 2017
Last updated 06/08/2017

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


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).


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.