Tertiary education organisations (TEOs) with an indicative allocation of DQ7+ funding submit a completed Mix of Provision (MoP) template, and an Educational Performance Indicator Commitments (EPICs) template annually to us via Workspace 2. We approve the MoP and EPICs through the Investment Plan (Plan) approval process.

We monitor TEOs’ reported delivery against these commitments, the relevant funding conditions and other requirements and expectations that we set TEOs.

Reporting

All DQ7+ funded TEOs report to us through the Single Data Return (SDR). We use data submitted via the SDR to monitor performance, publish performance information, and report tertiary education statistics.

TEO reporting is carried out through our section of the Services for Tertiary Education Organisations (STEO) website. Each TEO uses this website to:

• submit its SDR
• register and maintain qualifications for funding, and
• update qualification, course and delivery site details.

During the calendar year, each TEO must submit SDRs as per SDR submission dates.

Full details of the data requirements and reporting dates can be found in the SDR manual.

For further information about reporting, please see the DQ7+ funding conditions for the relevant year.

Domestic learners in a programme approved to access DQ7+ must be reported under Source of Funding (SoF) 01

Source of Funding 03 must only be used to report course enrolments in:

• qualifications not approved in STEO as eligible to access DQ7+ funding, and
• doctoral study where the 4 EFTS threshold for SoF 01 has been surpassed.

This is regardless of whether some of the provision will be unfunded.

* All funded or unfunded Mix of Provision (MoP) EFTS.

Monitoring

We monitor TEO performance and practices to understand TEO performance in the sector, and to inform our decisions about future funding a TEO may receive.

For conditions on minimum performance standards see the DQ7+ funding conditions for the relevant year.

Educational Performance Indicators (EPIs)

We monitor the performance of each TEO against the following Educational Performance Indicators (EPIs):

• cohort-based qualification completions
• cohort-based first year retention
• course completions, and
• learner progression from Levels 1-4 to higher level study.

TEOs can view their EPIs, and the EPIs of other DQ7+-funded TEOs, using the My Performance and Tertiary Performance information products in Ngā Kete.

For further information on how EPIs are defined and calculated, please see the Educational performance section of our website.

EPI and Mix of Provision (MoP) commitments

We also monitor the performance of each TEO against its Investment Plan (Plan) Educational Performance Indicator Commitments (EPICs) and Mix of Provision (MoP) commitments.

Notes:

• For 2023 EPICs, refer to Investment Toolkit- Templates
• A TEO is responsible for notifying us of, and discussing with us, significant shifts from the agreed MoP, and the rationale, well before any such shift occurs.

Other monitoring

In addition, we monitor TEOs’:

• achievement against any other performance standards agreed in the Investment Plan, including any minimum achievement levels
• compliance with DQ7+ funding conditions and legislative requirements
• achievement of parity with respect to participation and EPIs for target learner groups set out in the Tertiary Education Strategy, and
• achievement of other expectations that we communicate to TEOs.

Monitoring compliance with funding conditions includes but is not limited to the following:

• Annual Maximum Fee Movement requirements

Benchmarking

TEIs must participate in benchmarking, which contributes to enhancing institutional capability, and performance and sustainability in the sector.

Using the New Zealand Benchmarking Tool, TEIs can measure their performance against various educational and financial performance benchmarks. For conditions on benchmarking see the DQ7+ funding conditions for the relevant year.

Performance consequences framework

We approve DQ7+ funding as a total dollar value (not an EFTS volume). A TEO is expected to manage its enrolments effectively and in accordance with its Investment Plan (Plan).

We have a tolerance band for over-delivery and under-delivery, which is currently set at 99% to 105% of each year’s funding for a TEO (including any flexible funding). This is to acknowledge that the dollar value of enrolments may vary from the dollar value of the allocation approved by us.

For conditions on over-delivery see the DQ7+ funding conditions for the relevant year.

Over-delivery

Even though we can fund over-delivery as set out in the “Flexible funding” section above, our tolerance threshold for over-delivery is 105%.

Delivery above the 105% threshold is calculated using the TEO’s combined:

• approved allocation, and
• dollar value of its Plan-agreed unfunded provision (if any).

Over-delivery is considered a performance issue. It may lead to a reduction of your future funding.

Under-delivery

If a TEO delivers less than 99% of DQ7+ funded provision during the year, we will recover funding. We may also reduce DQ7+ funding to the level of actual delivery within the Plan period by making a significant Plan amendment, or by revoking or suspending some funding.

We will also consider the level of delivery achieved when determining future funding allocations.