Payments and reporting

Payments and reporting

Last updated 7 December 2021
Last updated 7 December 2021

We make bulk payments to TEOs to cover the estimated cost of Fees Free enrolments for each calendar year.

Funding allocation

How we calculated your 2022 allocation for the Fees Free Funding

This is a summary of how your indicative allocation was calculated. For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

The information below details how we calculate the indicative allocations for Fees Free Funding. Your final 2022 Fees Free allocation will be available on Ngā Kete at the time we provide you with a 2022 Fees Free agreement.

Your 2022 indicative allocation is the greater of your 2020 actual delivery or your 2021 allocation.

It is important to note the 2021 allocation:

  • includes any in-year additional funding approved up to 1 May 2021, and agreed to be baselined; and
  • excludes any one off funding approved in-year up to 1 May 2021 (for the 2021 calendar year only); and
  • includes if a TEO delivered the fund for the first time in 2021; and
  • includes 2022 funding rate increases.

Mergers for 2021 delivery, and 2022 indicative allocations will be as follows

  • Te Pukenga modelling will show an indicative allocation for a single entity.
  • All other mergers will have delivery and 2021 allocations, transferred to the parent provider for 2022.

Funding wash-ups

2020 Fees Free Wash-Up Methodology

We will write off and not be recovering any under-delivery of 2020 Fees Free funding approved prior to 1 April 2020 from Tertiary Education Organisations (TEOs).

Exceptions that will be recovered:

  • Additional Funding approved since 1 April 2020 if there is under-delivery.
  • Fees Free funding paid to Transitional Industry Training Organisations (TITOs) prior to 1 July 2020, for the delivery of Targeted Training and Apprenticeships Funding (TTAF) after 1 July 2020.

Payments, recoveries, and write offs are based on:

  • A TEO’s December 2020 ‘All Enrolments and Costs’ Report as at the date the data is captured (20 January 2021), after TEC validation and allocation rules have been applied.
  • TTAF learners fees paid by Fees Free based on fees reported in the FF06 and the Fees Free Refund Report.

How we will calculate any Recovery of Additional Funding

We will recover under-delivered Additional Funding approved since 1 April 2020, at the fund level.

  • We will calculate the difference between the dollar value of actual delivery and Fees Free funding.
  • Recovery will be not exceed the amount of Additional Funding approved.

How we will calculate any Recovery for TITO funding

We will:

  • determine the dollar value of Fees Free paid before 1 July 2020, in relation to delivery to trainees eligible for industry training based TTAF funding after 1 July 2020,
  • notify you of these values on Workspace 2,
  • remove the value from your 2020 actual Fees Free delivery, resulting in a Fees Free Recovery, and
  • set-off the Fees Free recovery value against your final TTAF wash-up.

The TTAF funding agreement states that we are not liable to pay fees on behalf of a student to the extent that their fees have been paid through the fees free tertiary education initiative. This means that where a learners fees had been paid by Fees Free based on fees reported in the FF06 prior to the introduction of TTAF, these fees are considered to have already been paid, and no further payment will be made by TTAF.

We will determine the amount of Fees Free already paid and notify you of these amounts via Workspace 2. This amount will then be deducted from your 2020 actual Fees Free Delivery, resulting in a Fees Free Recovery. We will set-off this Fees Free recovery against your Final TTAF wash-up.

How we will calculate any payment for over-delivery

We will pay if a TEO over-delivers:

  • If actual delivery is more than the TEO’s full-year Fees Free allocation, we will pay the difference.
  • The balance paid may be recoverable at a later date if further wash-ups are performed as additional data becomes available.

How we will calculate any Recovery, for write off purposes

  • We will write off the dollar value of any Recovery that exceeds the value of Additional Funding approved since 1 April 2020.
  • Any write off excludes 2020 funding paid to TITOs prior to 1 July for learners subsequently funded by TTAF.

Write off adjustment for SAC funded TTAF learners

We will:

  • determine the dollar value of Fees Free paid prior to 1 July 2020, in relation to learners eligible for provider-based TTAF funding after 1 July 2020,
  • notify TEO’s of these values on Workspace 2,
  • remove the value from any Fees Free write off, and
  • remove the value from TEO’s 2020 actual TTAF delivery, resulting in a TTAF Recovery.

The TTAF funding agreement states that we are not liable to pay you fees on behalf of a student to the extent that their fees have been paid through the Fees Free tertiary education initiative. This means that where a learners fees had been paid by Fees Free based on fees reported in the FF06 prior to the introduction of TTAF, these fees are considered to have already been paid, and no further payment will be made by TTAF.

Fees Free payments reported in FF07 after validations for SAC funded TEOs

Validations and allocation rules are processed as follows:

  • TEOs submit Fees Free All Enrolment and Cost Report (FF06).
  • Validation of the FF06 report against validation checks, detailed in the validation guide, including:
    • eligible NSN
    • eligible Course
    • eligible Qualification
    • eligible Source of Funding
    • GST checks x 3
    • course EFTS factor check
    • CSSF check
    • eligible Date
    • STEO check
  • Validation report submitted to TEOs (FF42) detailing the validations against the FF06.
  • Reconciliation against the December 2020 SDR for valid enrolments.

Allocation report submitted to TEOs (Multi-enrol and Cap Limit Report, FF07) detailing by NSN the reported Fees, Allocated fees and messaging for any variance.

Reporting

How to check learners’ eligibility

On the Notices section of your Workspace 2 Home page, you'll find a notice called Lists of NSNs eligible for Fees Free study. This page lists the following three files which we use to tell you about the eligibility of learners:

  1. Fees Free eligibility
  2. Fees Free eligibility changes, and
  3. Checking the eligibility of specific NSNs. 

Currently (for the 2022 calendar year), there are seven status options: Y (yes), N (no), U (unknown), 8 (2018 Starter), 9 (2019 Starter), 0 (2020 Starter) and 1 (2021 Starter). A Starter status indicates learners who have started to consume their Fees Free entitlement. This is considered an eligible status, because the learner may have some entitlement remaining.

Please note each National Student Number (NSN) may have multiple records.

Reporting provider-based study

Each month, we will provide you with a blank ‘Fees Free All Enrolments and Costs’ template on Workspace 2, which you will use to report all of your eligible Fees Free enrolments to us to date for the calendar year.

An email will be sent to the lead contact and the data return contacts for each organisation at the beginning of each reporting round.

When you submit your returns to us, we will validate the information and provide you with a couple of reports in return. These reports inform you of any errors we have found in your return (‘Fees Free All Enrolments and Costs Data Validation report’) and tell you how much we intend to allocate to you for each learner you have reported to us (‘Fees Free Multiple Providers and Cap Limit report’).

We will provide you with guides each month to help you fill in and read these reports. If you have any questions, please contact your Relationship Manager or Advisor, or the Customer Contact Group for assistance.

Reporting industry training

Each month, we will provide you with a blank ‘Fees Free Programmes and Fees’ template on Workspace 2, which you will use to report the fees you are charging for eligible learner in that month. You will also receive a ‘Fees Free Schedule of Fees’ which you need to fill in the first time you report to us, and then only when changes need to be made. The Schedule of Fees is a complete list of fees that you charge to learners enrolled in eligible programmes, and is used to help us validate the information you submit in your Programmes and Fees return.

When you submit your returns to us, we will validate the information and provide you with a Remittance. This will inform you of any errors we have found in your return, and tell you how much we intend to allocate to you for each learner you have reported to us.

You can find a guide to help you fill in your reports on the Fees Free Guidance page. If you have any questions, please contact your Relationship Manager or Advisor, or the Customer Contact Group for assistance.

Reporting dates

See our business calendar for Fees Free reporting dates.