Funding and payments

Funding and payments

Last updated 20 May 2021
Last updated 20 May 2021

This page provides information about how Māori and Pasifika Trades Training (MPTT) funding is set, funding allocation, funding calculation, and funding recovery. 

Funding

The MPTT 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 off-Plan via a funding confirmation letter.

A tertiary education organisation (TEO) that receives MPTT funding is required to:

MPTT funding is set through the Government’s annual budget process. It supports and enables positive outcomes to be achieved by Māori and Pasifika learners who are enrolled in Student Achievement Component (SAC) funded vocational training.

Funding rate

The funding rates (GST exclusive) for MPTT are noted in the tables below

Increase in funding rates

2021 funding rates

Category Measure Funding rate
MPTT Fees Top-Up EFTS $4,064
MPTT Brokerage Monthly Learner number $584
MPTT Brokerage Success Learner number $584

2022 funding rates

Category

Measure

Funding rate

MPTT Fees Top-Up

EFTS

$5,125

MPTT Brokerage Monthly

Learner number

$591

MPTT Brokerage Success

Learner number

$591

Payment

We pay funding for MPTT in accordance with the organisation’s funding confirmation documentation, which specifies the amount of funding payable for consortium activities and/or fees top-ups, and/or brokerage services (as applicable).

Consortium activities funding

Consortium activities funding is paid in 12 instalments, as set out under Payment Schedule in Appendix 1 of the funding confirmation letter for consortium activities funding.

MPTT funding confirmation letter for consortia (PDF, 606 Kb)

Fees top-ups and brokerage services (first 50%)

We pay MPTT fees top-ups and brokerage services in equal monthly instalments from January to June, and in equal monthly instalments from July to December, except for the brokerage incentive payment (second 50%).

Brokerage incentive (second 50%) and tools grants

We pay brokerage incentive (second 50%), and tools grants each month if we have received a correct MPTT Tools Grant and Brokerage Performance Summary report.

MPTT Tools Grant and Brokerage Performance Summary report (PDF, 64 Kb)

Funding allocation

Our approach to calculating your 2019 indicative allocation for MPTT

The purpose of MPTT funding

The purpose of MPTT funding is to increase access for Māori and Pasifika learners to vocational and pre-employment training. This enables these learners to develop skills for sustainable employment and achieve better employment outcomes.

MPTT funding is paid to organisations that are part of an approved consortium.

How we calculated your 2019 allocation for MPTT

Your prior performance information was used to calculate your 2019 allocation.

We have combined the fees top-up, brokerage services, consortium activities, learner support and transitional tools grant funding methodologies into one MPTT allocation methodology for 2019.

We used your 2019 application for funding as the starting point for calculating your 2019 indicative allocation.

We then applied the funding rates for 2019 to this indicative allocation (see table below for funding rates).

Category Measure Funding rate
MPTT Fees Top-Up EFTS $4,000
MPTT Brokerage Learner number $575
MPTT Consortium Per place (average) $1,100
MPTT Learner Support Funding Per learner (average) $730
Transitional Tools Grant Per learner (progressing to apprenticeship or industry training) $1,000

We then considered your 2019 application for funding, previous consortia and TEO performance, and funding available for investment.

Funding wash-ups

Consortium activities

2020 MPTT Consortium Activities Recovery Methodology

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

Exception:

Additional Funding approved since 1 April 2020 will be recovered if there is under-delivery.

Recoveries and write offs are based on:

  • a TEO’s most recent 2020 actual delivery data (actual year-end spend) as submitted through the year-end Progress 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 delivery and 2020 funding.
  • The Recovery will not exceed the value of Additional Funding approved.

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.

Brokerage Recovery

2020 MPTT Brokerage Recovery Methodology

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

Exception:

Additional Funding approved since 1 April 2020 will be recovered if there is under-delivery

Recoveries and write offs are based on:

  • a TEO’s most recent 2020 actual delivery data (eligible learners) (source funding code 28 and 29), submitted in its SDR report; and
  • actual delivery is calculated at a rate of $575 per learner.

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 delivery and 2020 funding.
  • The Recovery will not exceed the value of Additional Funding approved.
  • When determining the actual number of eligible learners we will make adjustments for non-eligible learners (detailed below).

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.

The following learners are not eligible learners:

Early Withdrawal of enrolments

We will not include learners who have not completed 10%, or one month of the MPTT course for which they have enrolled, whichever is the earlier.

Prior Year

We will not include learners for which MPTT Brokerage funding has been paid in a prior year for the same learner to any provider.

Multiple TEO enrolments

We will only pay MPTT Brokerage once per learner. Where we identify that a learner is enrolled with more than one TEO, we will only pay once to the TEO for the learner with the earliest start date.  Therefore, an adjustment will be made to the TEO that has not reported the earliest course start date for the learner.

Learner Support Recovery

2020 MPTT Consortium Learner Support Recovery Methodology

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

Exception:

Additional Funding approved since 1 April 2020 will be recovered if there is under-delivery.

Recoveries and write offs are based on:

  • a TEO’s most recent actual 2020 delivery data (dollars delivered/actual spend) as submitted via end- year Progress 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 delivery and 2020 funding.
  • The Recovery will not exceed the value of Additional Funding approved.

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.

Transitional Tools Grant Recovery

2020 MPTT Consortium Tools Grant Recovery Methodology

We will recover any under-delivery of MPTT Consortium – Transitional Tools Grant funding.

Recoveries are based on:

  • delivery data (dollars delivered) as submitted through your year-end Progress Report through Workspace2,
  • the most recent actual delivery data of eligible learners (number of learners and entitlements paid) as submitted through your year-end Progress Report through Workspace2,
  • when learners cease their pre-trades training,
  • Funding rate of $1,000 per learner

How we will recover/pay funding for under/over-delivery

  • We will recover the difference between the dollar value of actual delivery of eligible learners and the allocated MPTT Consortium - Transitional Tools Grant.
  • If a TEO pays-out more than the allocated MPTT Consortium – Transitional Tools Grant allocated funding, we will pay the difference between the allocated MPTT Consortium – Transitional Tools Grant and the amount actually delivered, where a learner is eligible to receive the Transitional Tools Grant.

Eligible Learners:

  • Learners who complete or leave their MPTT pre-trades training on or prior to 31 December 2018, and
  • has not received a tools grant under the Apprenticeships Reboot, and
  • enters one of the following within 18 months of leaving their pre-trades training:
    • a New Zealand Apprenticeship; or
    • an equivalent apprenticeship program at Level 4 or higher on the NZQF, such as a managed apprenticeship, that the TEC has approved; or
    • industry training at Level 3 or Level 4 on the NZQF that the TEC has approved.

Fees Top-up Recovery

2020 MPTT Fees Top-up Recovery Methodology

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

Exception:

Additional Funding approved since 1 April 2020 will be recovered if there is under-delivery.

Recoveries and write offs are based on:

  • a TEO’s most recent 2020 actual delivery data (measured in EFTS at provider-consortium level) submitted in its SDR report;
  • actual delivery at a rate of $4000 per EFTS.

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 delivery, less condition off-sets, and 2020 funding.
  • The Recovery will not exceed the value of Additional Funding approved.

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.

Condition Off-set

Early Withdrawal of enrolments

We will adjust the dollar value of actual delivery where students have not completed 10% or one month of the MPTT course for which they have enrolled.

Consortium activities

Consortium activities funding is paid to support activities that will complement SAC funded provision for Māori and Pasifika learners, and provide the opportunity for learners to gain entry level employment in their chosen trade.

MPTT Consortium and MPTT Learner Support Funding allocations for 2021 have increased to accommodate a 1.6% increase in course funding rates.

The funded activities must support learner pathways into trades training and employment.

We allocate consortium activities funding based on intended learner numbers, and the capacity and performance of the consortium. Other factors, such as the stage of development of the consortium and the potential for economies of scale are also taken into account.

Consortium activities that we may agree to fund include:

  • governance and project management
  • coordinating the contributions of consortium members 
  • employability skills training and fees, such as:
    • driving licenses
    • site safe certificates, that complements SAC-funded programmes 
  • wānanga and fono meetings.

Brokerage services

Brokerage services funding supports connections between employers, consortia and partner/other TEOs in order to support MPTT learner progression.

We expect these activities to supplement existing brokerage and facilitation activities carried out by a consortium. A brokerage services funded TEO may pass on its funding to another organisation to carry out the services. 

The brokerage services specified in the TEO’s funding confirmation letter must be the brokerage services provided. These services may include:

  • providing recruitment support, identifying pre-employment needs of learners, and their employment, training and career pathways 
  • supporting learners and working with employers and key industry stakeholders, and
  • providing employment transition support.

Career guidance

We expect consortium partner organisations to, collectively and individually, support each learner to recognise and develop the skills and competencies they need to manage their career in a trade.

See Consortia, and Project Kamehameha and Project Lumana'i (research commissioned by Careers New Zealand about design and delivery of career resources for Māori and Pasifika respectively).

Funding rate

See Condition: Funding for Brokerage Services.

The brokerage services rate is currently $1,150 once per learner.

We pay 50% ($575 per learner) up front and 50% ($575 per learner) after the learner has progressed to a successful outcome. The second 50% payment is paid to the TEO that undertook the pre-trades training and is payable only once for each learner. For 2021 this rate will be increased by 1.6% to $584 per learner.

For the TEO to receive the incentive payment:

  • the learner must achieve the successful outcome within 18 months of leaving the MPTT programme, and
  • the TEO must report the successful outcome through Workspace 2 using the MPTT Tools Grant and Brokerage Performance Summary template (which we provision to Workspace 2 monthly). Please note, this process may change for 2019.

Tools grant

From 30 June 2020 the MPTT Tools Grant has fully transitioned to MPTT Learner Support Funding. See Learner Support Funding for more information.

 

 

Suspending or revoking funding

If a TEO has its funding approval revoked in accordance with section 159ZF of the Education Act 1989, the unspent portion of funding is repayable to the TEC.

See the following conditions: