A tertiary education organisation (TEO) can only use DQ7+ funding for New Zealand Qualifications and Credentials Framework (NZQCF) qualifications and their associated programmes and courses, as well as for:

• single course enrolments
• approved micro-credentials, and
• certificates of proficiency.

Before the Tertiary Education Commission (TEC) can consider funding a qualification, the TEO must get approval and accreditation for a programme leading to the qualification from the relevant quality-assurance body:

• the Committee on University Academic Programmes (CUAP) for universities, and
• the New Zealand Qualifications Authority (NZQA) for all other TEOs.

Once you have CUAP or NZQA approval, you may seek funding approval from TEC.

If you intend to deliver two programmes concurrently or have one programme leading to two qualifications, get quality assurance approval before seeking funding from TEC.

To find a current list of qualifications and courses approved for DQ7+ funding, use the qualification search or course search on the Services for Tertiary Education Organisations (STEO) website.

Submitting a qualification for access to DQ7+ funding

TEOs submit qualifications for access to funding using the Services for Tertiary Education Organisations (STEO) website.

We approve qualifications and courses through our section of the STEO site.

Through the site each TEO:

• registers and maintains qualifications and courses for funding
• updates qualification, course and delivery site details, and
• submits its Single Data Return (SDR).

For technical information on using STEO to get qualifications approved so you can access funding, see the STEO User Guide.

Considerations and process

When submitting a new qualification for access to funding, consider whether it:

• meets the eligibility criteria for DQ7+ funding, and
• aligns with:
  • the strategic direction in your Investment Plan
  • the Tertiary Education Strategy (TES)
  • the investment priorities in Plan Guidance and Supplementary Plan Guidance.

Once you send us the necessary information, we will decide whether the qualification meets the criteria for DQ7+ funding, and how well it aligns to our investment priorities.

If we approve the qualification as eligible for funding, we will release your Mix of Provision (MoP) so you can revise and submit it to us for approval.

How we determine eligibility

When approving a qualification as eligible for DQ7+ funding, we will:

• check that the details of the programme leading to award of the qualification are consistent with your quality assurance approval for it
• consider whether the EFTS value is correct
• check that the course, programme and/or qualification are eligible in accordance with the funding mechanism and/or funding conditions
• consider whether learners enrolled in the qualification will be able to access a student allowance and/or student loans, and
• consider:
  • whether the qualification aligns with our investment priorities
  • the stakeholder needs, and
  • the extent of existing similar provision.

Resources

• Changing your Plan
• Plan Guidance and Supplementary Plan Guidance and Investment Toolkit
• Our focus areas, including the Tertiary Education Strategy

Information on submitting a qualification for DQ7+ funding

So we can determine whether to approve a qualification as eligible for DQ7+ funding, please give us the following information when you submit the qualification on the STEO website:

• your provider code (EDUMIS number)
• the qualification code used on the New Zealand Qualifications and Credentials Framework (NZQCF)
• the qualification title
• the number of learning hours per week
• the number of full-time teaching weeks per year
• the equivalent full-time learner (EFTS) value of the qualification, calculated using:
  • credits
  • learning hours
  • full-time weeks
• the approval documents from the relevant quality assurance body.

See below for more details on this information.

Further details on information to submit

You will need to give us the following information:

TEO/provider code: your four-digit code assigned by the Ministry of Education. A list of these codes is set out in Appendix 1 of the SDR Manual.

Qualification code: in alphanumeric format, usually two letters followed by four numbers. The two letters are a standard code, for example NZ (New Zealand Certificate or New Zealand Diploma) or PC (Local programme code).

If you intend to offer a New Zealand Certificate or Diploma listed on the NZQCF, use the NZQCF code for the qualification for all references to the qualification.

Title of qualification: note that this is not the title of the programme that NZQA approved, unless the programme title and qualification title are the same.

Duration: information about the duration of the programme, specifically the learning hours and full-time teaching weeks.

Learning hours

NZQA defines “learning hours” as all planned learning activities leading toward the achievement of programme or qualification learning outcomes.

Types of learning activities include but are not limited to:

• lecturer and tutor contact hours, including workshops and tutorials
• tests and assignments
• supervised practical placements
• study time
• self-directed learning activities that you expect the learner to engage with/participate in, and
• examination periods.

There are three fields for types of learning activities on the STEO website.

We realise that these three fields don’t fully cover all possible learning activities. However, please break down your learning activities and enter weekly hours in the fields as accurately as possible.

The three fields are:

• teaching hours – eg, face-to-face classroom/online/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
• work experience hours – eg, time the learner spends practising or learning skills relevant to their study programme in a workplace; this includes a teaching workplace, which may be on-site, so long as it operates as a commercial enterprise, and
• self-directed study hours – TEO-directed study carried out by the learner, eg, time they spend on off-site assignments (such as homework assignments), and TEO-directed reading and study hours, that they must complete in their own time. Note: self-directed study does not include self-directed activities that the learner initiates.

Note: Apply a consistent rationale in terms of which activities relate to each of the three fields.

In relation to the number of learning hours in the qualification, you must give us the: 

• number of teaching hours each week (see above)
• number of work experience hours each week (see above)
• number of self-directed learning hours each week (see above)
• total number of learning hours each week
• total number of learning hours in each year
• number of years it will take to complete the qualification, and
• total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).

Total learning hours in STEO must be the same as the total programme/qualification learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and learning activities approved by NZQA. Each TEO needs to regularly review the delivery of its programmes to ensure they are “right sized” for most learners (recognising that some learners take more or fewer learning hours to achieve a qualification than others).

Note: During audits and investigations, we may check whether a TEO’s delivery reflects our and NZQA’s approvals. To do this we triangulate NZQA approval documentation, STEO data and your information for learners, and compare the information to actual delivery.

Full-time teaching week

A full-time teaching week includes the types of learning hours outlined above.

In relation to the number of teaching weeks in each year of the qualification, you must give us the:

• number of full-time equivalent (FTE) teaching weeks
• number of weeks of recess in each year
• total number of full-time teaching weeks and recess weeks in each year – FTE gross
• number of credits on the NZQCF contained in the qualification, and
• number of credits that a learner must achieve each year to complete the qualification.

We generally will not approve a qualification for funding that is longer than 34 weeks in a year, although we may fund an individual learner’s enrolment for more than 1.0 EFTS in a year. For more detail see “Learners wanting to accelerate their study (undertake additional learning)” under Learner-centred provision.

EFTS value of the qualification

The EFTS value represents the workload in each qualification. We require the EFTS value so we can:

• decide whether a qualification is eligible to access DQ7+ funding, and
• appropriately fund you to deliver the qualification.

Specify the EFTS value of each qualification to no more than four decimal places.

For conditions on assigning EFTS values to qualifications, see the funding conditions for the relevant year.

Determine the EFTS value using the following methods:

• credits
• learning hours, and
• full-time weeks.

Each method should produce the same result. If they do, we can be confident that a learner studying for the qualification has a normal and reasonable workload.

Each method is set out in more detail below.

Credits

A credit measures the average amount of learning that is required to complete the qualification or part of the qualification.

Divide the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study).

Example: If a qualification has 60 credits: 60 divided by 120 = 0.5 EFTS.

Learning hours

Divide the qualification’s total learning hours by 1,200 (the standard number of learning hours that equate to a full-time year of study).

Example: If the total learning hours for one semester in a qualification is 600 hours: 600 divided by 1,200 = 0.5 EFTS.

Full-time weeks

Divide the length of tuition in weeks for the qualification by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year).

Example: If the qualification has a length of 17 weeks: 17 divided by 34 = 0.5 EFTS.

EFTS value for qualifications with strands

A qualification may have a range of options or electives with variable credit combinations. These are called strands. Each strand is likely to have a different total EFTS value.

If a qualification has two or more strands, determine the EFTS value for each strand. We require the EFTS value of the strand that has the highest EFTS value for our calculations.

You must calculate the EFTS factor of each course in the strand to calculate the EFTS value of the strand. To determine the EFTS factor of a course:

• for a qualification that has up to 120 credits, divide the course credits by 120
• for a qualification that has more than 120 credits, where we have agreed to fund more than 1 EFTS per learner per year, divide the course credits by the credit value of the qualification
• for a qualification that has more than 120 credits, where we have not agreed to fund more than 1 EFTS per learner per year, divide the course credits by 120.

For conditions on assigning EFTS values to qualifications with strands, see the funding conditions for the relevant year.

Example: Calculating the EFTS value of a qualification up to 120 credits with strands

In this example, if we approve the qualification for funding, it will be approved as 75 credits as this is the credit value of the longest strand. The EFTS value of the qualification is 0.625 (75 credits/120 = 0.625 EFTS).

Example: Calculating the EFTS value of a qualification over 120 credits with strands

If an approved qualification in STEO has a value of 1.0 EFTS but more than 120 credits, use the credit value of the longest strand to determine the course EFTS factor for each strand. This ensures that courses common to both strands have the same EFTS factor.

In this example, the qualification is 150 credits, so divide the credits by 150 (not 120).

EFTS value of a doctoral programme

Ideally, the EFTS value of a doctoral programme should be no more than four EFTS. This is because we will only fund up to a maximum of four EFTS for a learner’s doctoral programme (reported using Source of Funding (SoF) 01).

For conditions on doctoral study see the funding conditions for the relevant year.

Integrated programmes/concurrent qualifications

An integrated programme of study may lead to two qualifications, such as a double degree, when two or more programmes are being delivered to a learner at the same time.

For an integrated programme of study, the EFTS value is based on the total credits, less any overlap between the two qualifications. If there are a variety of approaches, you need to negotiate the EFTS value with us.

They qualifications need to be submitted as a concurrent qualification in STEO. After each programme has been separately approved and accredited by NZQA and entered in STEO as eligible to access TEC funding, contact the Customer Contact Group to request that they be made concurrent in STEO.

If you need guidance on concurrent qualifications, discuss this with the Customer Contact Group, phone 0800 601 301, email customerservice@tec.govt.nz.

If two qualifications are being included in a single programme, please contact NZQA for approval and accreditation.

Extra courses within a qualification

If a course within a qualification is optional, it will usually be eligible for DQ7+ funding. In these circumstances, a learner’s enrolment may generate more than 1 EFTS in a 12-month period.

For example, if a learner takes an:

• additional course in an academic year towards a qualification that requires more than one year of study, or
• optional summer school course towards the qualification.

If an extra course becomes the norm for all learners undertaking a qualification, we will consider the change to be a significant change to a qualification, which requires approval from the relevant quality assurance body and the TEC (see below).

Quality assurance requirements

To be eligible for DQ7+ funding, a course must be part of a programme that has been quality assured. For universities, the quality assurance body is the Committee on University Academic Programmes (CUAP). For all other TEOs that use DQ7+ funding, it is the New Zealand Qualifications Authority (NZQA).

To determine whether to approve a qualification for DQ7+ funding as part of your Mix of Provision (MoP) in your Investment Plan we require evidence that the appropriate quality assurance body has approved the programme leading to the award of the qualification.

Defining a qualification

You must give us the following information that defines the qualification:

• the qualification award category (recognised qualifications have an award category code – refer to Appendix 9 of the SDR Manual)
• the International Standard Classification of Education (ISCED) level of the qualification (refer to Appendix 9 of the SDR Manual)
• the level of the qualification on the NZQCF (refer to Appendix 9 of the SDR Manual)
• the outcome of completing the qualification (for example, whether the qualification is designed to lead the learner directly into the labour market), and
• the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual).

Making a change to a programme leading to the qualification

To make a change to a programme leading to a qualification, you must first check with the relevant quality assurance body if their approval is required for the change. For universities the quality assurance body is CUAP, while NZQA quality-assures all other providers and their programmes.

Once you have the required approval, you need to reflect the changes in STEO. In doing that, you must meet the requirements of any conditions on making changes to qualifications.

For conditions on making changes to qualifications, see the funding conditions for the relevant year.

Course component disaggregation

Before an external quality assurance body approves a programme leading to a qualification, and before we will approve a qualification as eligible to access DQ7+ funding, you must disaggregate the qualification into component courses.

You must give us all the following information about each component course in the qualification:

• provider code
• course code
• course title
• qualification code
• course classification
• NZSCED field of study
• level of the course on the NZQCF
• number of credits of the course
• funding category of the course
• EFTS factor of the course
• if the course is part of a pre-service teacher education qualification, the stage of the course
• course tuition fee (if any), including compulsory course costs
• whether the course has an internet-based learning component
• whether the course is eligible for Performance-Based Research Fund (PBRF) Funding
• tuition fee that will be paid by international fee-paying learners who are enrolled in the course
• whether the course has embedded literacy and numeracy skill development in the provision.

Resources

• A full list of NZSCED classifications is provided in the SDR Manual Appendices.
• For more information on NZSCED classifications, see New Zealand Standard Classification of Education – Education Counts.
• For more information on the NZQCF see Background to the New Zealand Qualifications Framework – NZQA.
• For alphabetic codes and numeric codes see the Delivery Classification Guide.
• For more information on conditions on setting course fees and costs, see Funding conditions by year.

EFTS factor of courses (FACTOR)

The EFTS factor of a course is the course size as a portion of the total EFTS value of the programme leading to award of the qualification of which the course is part. In STEO, the field name is “Qualification”, which means programme leading to award of the qualification.

We recommend that the smallest course should not have an EFTS factor of less than 0.1.

Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1, you do not need to further disaggregate the course in STEO.

You may report delivery for one qualification as one course. However, that means that a learner can only enrol in the one course (ie, the whole programme) leading to award of the qualification.

After a programme has been disaggregated into courses and we have approved these as eligible for access to DQ7+ funding, you cannot disaggregate the programme further.

Calculation

If a qualification is measured in credits, we require the EFTS factor of a course to be calculated by:

• dividing the number of credits in the course by the total number of credits in the qualification, and
• multiplying that number by the EFTS value of the qualification.

EFTS factor = course credits/qualification credits x EFTS value of the qualification

However, if you propose delivering a qualification in one year for which the credits exceed 120, you will need to calculate the EFTS factor for that course using the total number of credits, not 120.

Express the EFTS factor to four decimal places.

Example: If a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as:

Stage of pre-service teacher education qualification (STAGE)

If the course is part of a pre-service teacher education qualification, you must also give us the stage. It contains a value to indicate the stage of the qualification to which the course contributes.

Course tuition fee (FEE)

For conditions on setting course fees and costs see the funding conditions for the relevant year.

The course tuition fee (inclusive of GST) is the standard fee that domestic learners normally pay for tuition and costs associated with enrolment in the course. Importantly, the course tuition fee is not the following:

• compulsory course costs (for example, administration charges, examination fees, material charges), and
• fees exempt from the Annual Maximum Fee Movement (for example, learner services levies, learner association fees, health fees, recognition of prior learning fees).

You can only charge a learner for compulsory course costs (below) and/or the course tuition fee and/or the student services fee.

Restrictions on the use of DQ7+ funding

There are restrictions on the use of DQ7+ for some types of funding. For restrictions on the use of funding see the funding conditions for the relevant year.

Any additional restrictions will be in your funding confirmation letter as an organisation-specific condition.

High-cost provision delivery volume is agreed with each TEO

A TEO that receives DQ7+ funding for high-cost provision must not exceed the number of EFTS approved through its Investment Plan for that type of provision.

This is to ensure that delivery volume nationally does not exceed the following annual caps for certain high-cost provision types:

• Aviation (qualifications that include an in-flight training component)
• Dentistry (intermediate) year 1 intake
• Medical undergraduate year 1 intake
• Specialist large animal science total across all year levels
• Veterinary science year 1 intake
• Secondary Initial Teacher Education.

Details on any restrictions will be in your funding confirmation letter as an organisation-specific condition.

Programme-specific restrictions

Aviation

If you receive DQ7+ for aviation provision that includes an in-flight training component (pilot training), you must supply StudyLink with correct learner enrolment information through the Verification of Study (VoS) system.

You must also ensure that:

• annual Student Loan Scheme borrowing for course fees by any pilot training learner studying full-time does not exceed:
  • $35,000 per EFTS, if the learner is not eligible for Fees Free tertiary education, or
  • $35,000 per EFTS, less up to the maximum payment of $12,000 paid by us on behalf of the learner for Fees Frees, and
• where a pilot training learner is studying part-time, their annual Student Loan Scheme borrowing for course fees does not exceed the proportion of $35,000 represented by the learner’s EFTS course load. For example, if the learner is studying a 0.4 EFTS course load in the year, their student loan borrowing limit for the year is $14,000 (0.4 x $35,000).

Dentistry

• If you receive DQ7+ funding that, in your Investment Plan, is specified for Dentistry learners you must not deliver more than 60 EFTS for Dentistry (intermediate) year 1 intake provision.
• Of the 60 EFTS cap for Dentistry (intermediate) year 1 intake, 10 of these must be EFTS for learners who are of rural origin.

Doctoral study

There is a maximum for DQ7+ funding payable with respect to learners completing doctorates.

For learner eligibility requirements see funding conditions for the relevant year.

Micro-credentials and certificates

Micro-credentials

Quality assured micro-credentials at Level 7 or above are eligible for DQ7+ funding if they meet the TEC funding criteria.

For more information on how to apply for micro-credentials funding, see the micro-credential approval criteria and process for funding.

Certificate of Proficiency

Certificate of Proficiency (COP) means a certificate awarded to a learner in recognition of achievement through assessment in one or more courses from approved qualification(s). COPs at any level of the NZQCF are eligible for DQ7+ funding. Please note that irrespective of the NZQCF level of the COP, it can only be funded out of DQ7+.

Certificate of Personal Interest

Certificate of Personal Interest (CPI) means a certificate awarded to a learner in recognition of attendance of course(s) from approved qualification(s) where no assessment has taken place.

As there is no assessment and credit achievement, CPIs are not eligible for DQ7+ funding.

Removing a qualification

You can remove a qualification that you no longer offer from your MoP and from STEO. This removes the qualification from the NZQA Register of Quality Assured Qualifications and your list of active qualifications from STEO.

For more information see the Single Data Return user guide.