Tertiary education organisations (TEOs) other than tertiary education institutions (TEIs)

Records

A TEO (other than a TEI) that receives funding under an Investment Plan is required under section 159YD of the Act to keep records in the form specified by the TEC, for the period to which the funding relates, that fully and fairly show:

• transactions, assets, liabilities, and funds that are or were affected by the funding; and
• whether any conditions on which the funding approval was given have been complied with.

The TEO must ensure that the records are available for inspection by the TEC at all reasonable times.

Financial information

Section 159YD of the Act requires certain TEOs to provide the TEC with financial information as soon as practicable after the end of the financial year.

While the TEOs must retain these records in order to supply the information to the TEC, the TEC has exempted TEOs from the requirement to supply the information to the TEC, unless a particular TEO has been advised by the TEC that it is required to comply.

The specific requirements are the TEO’s financial report for that year, including:

• a statement of financial performance
• a statement of financial position
• a statement of movements in equity
• a statement of cash flows
• a statement of service performance that compares its performance with the outcomes agreed with the TEC as measured by the performance indicators agreed with the TEC
• any other financial reports, or statistical or other information that the TEC requires
• any information necessary to demonstrate compliance with any condition attached to funding.

The financial report must be prepared in accordance with generally accepted accounting practice and must be audited by an independent chartered accountant. 

Private Training Establishments (PTEs)

PTEs to make certain information available

The Act specifies information that a PTE must make available to prospective students (section 234B of the Act).  In particular, a PTE must make available the full details of:

• the total fees (applicable only to students over the age of 25 years old) for each programme or training scheme (including for class or lecture materials, books, special clothing, safety equipment, tools, and other items that are or may be provided to students enrolled for that programme);
• any student association membership fees
• the class or lecture materials, books, special equipment, tools, and other items that are or may be required by the PTE to be bought or provided by students enrolled for each programme or scheme.

Before accepting the enrolment of any prospective student, a PTE must give a student a written statement of:

• the total costs of the programme or training scheme and all other financial commitments associated with the programme or training scheme
• the cost of fees charged for student services provided by the PTE
• any material conflicts of interest of any of the governing members of the PTE, and
• any interests that the governing members of the PTE have in organisations in the education or immigration sector that provide goods or services to tertiary students.

PTE to deposit fees with independent trustee

Section 234E of the Act states that a PTE that receives funds from a student must:

• deposit those funds, as soon as practicable, with an independent trustee approved by the NZQA, and
• hold those funds on trust for the student until they are deposited with the independent trustee (as defined in section 234C of the Act).

PTE to refund fees

A PTE must refund a student's fees if he or she meets the requirements specified in section 235 of the Act.  Accordingly, a student is entitled to a refund (without deduction) if:

• he or she is enrolled at a PTE for all or part of the programme or training scheme;
• the duration of the programme or training scheme is more than 3 months;
• he or she withdraws from the programme or training scheme within the refund period (see section 234C: the later of 7 days after the first day of the programme or scheme for which the attendance of the student at the establishment is required, or any other day that the PTE permits the student to begin attendance), and
• the withdrawal from the programme or training scheme constitutes complete withdrawal from the establishment.

If the student is entitled to a refund, a PTE must pay the student any payment, or sum of any payments, made by the student in respect of the programme or scheme that exceeded $500 or 10% of the amount of that payment or sum of those payments, whichever is the lesser.  If a student withdraws after the refund period, a PTE is not required to give a refund.  However, a PTE may decide that it is appropriate in the circumstances to give a refund. 

PTE to keep records

In addition to the legislative requirements specified above, section 236A of the Act states that a PTE must:

• keep accurate enrolment and academic records for each student enrolled in a programme or training scheme provided by the PTE
• comply with any rules issued by NZQA in respect of those records
• ensure that the enrolment records are up to date, and
• ensure that the re-enrolment records are readily available, upon request, to the agencies specified in the section.  

Tertiary education institutions (TEIs)

TEIs to provide information about fees

The Act specifies that a TEI must make available to prospective students information about all fees and course costs (section 228A). 

Record keeping obligations

Under section 225 of the Act, a TEI must ensure that it keeps records that show:

• the progress of each student at the TEI (including the results achieved by the student) in the programme of study or training
• particulars of any allowances, grants, or other payments received by each student at the TEI in respect of the programme of study or training out of public money appropriated by Parliament.

Retention of records

A TEI must also comply with record-keeping obligations as required by the Public Records Act 2005.  For more information about a TEI’s record keeping and record retention requirements, see the Archives New Zealand website.

To comply with these requirements, TEIs should keep student records, including confirmation of eligibility to study, enrolment records, and details of fees and charges made to the student in accordance with a signed agreement with the Chief Archivist (as applicable).

TEIs must also ensure they are aware of, and comply with, the requirements of other government agencies, for example, the Ministry of Education, Studylink or Inland Revenue.

A TEO that receives SAC(NC) must comply with the conditions specified in its Investment Plan funding approval letter.  Those conditions are also set out below.

If the TEC is satisfied on reasonable grounds that a TEO has not complied or is not complying with the conditions on funding the TEC may revoke or suspend the funding under section 159YG  of the Act.

The conditions below apply to funding for 2016.  

NOTE: For your reference, you can view the archived SAC(NC) conditions (PDF 335 KB) (PDF, 334 Kb) that apply to 2015 funding only.

SDR001: TEO to supply information and report to the TEC (for SACNC funding)

Pursuant to section 159YC(1) of the Education Act 1989, it is a condition of a TEO receiving funding under section 159YA or section 159ZC that the TEO will supply to the TEC or the Ministry of Education, from time to time as required by the TEC or the Ministry of Education, and in the form specified by the TEC or the Ministry of Education, any financial, statistical, or other information that the TEC or the Ministry of Education requires the TEO to supply.  

TEO to supply enrolment information to the TEC

The following conditions are imposed to ensure that the TEC and the Ministry of Education obtain information about all confirmed students, whether or not fees are charged, and regardless of the funding source.  Your SDR return must include students who have withdrawn, unless they withdrew before becoming a confirmed student. If you have any doubts as to whether a student should be included in the SDR, please contact your Investment Manager or the Sector Helpdesk.

1.    The TEO must supply the following information to the TEC and/or the Ministry about each “confirmed student enrolment”, meaning:

a)    if fees apply:

      (i)   a student and a TEO have entered into an enrolment or tuition contract or arrangement and the student has paid or committed to pay his or her fees; and

      (ii)   the period during which the student is entitled to withdraw from a course, programme or training scheme and receive a full refund of fees (less any applicable administration fee) has passed; or

b)    if fees do not apply:

      (i)   a student and a TEO have entered into an enrolment or tuition contract or arrangement; and

      (ii)   the student has not withdrawn from a course, programme or training scheme by the withdrawal date (as specified in Withdrawal of enrolments below).

Withdrawal of enrolments

1.    A “withdrawal” means the withdrawal of a confirmed student enrolment from a course, programme or training scheme, by notice from the student to the TEO or as a result of non-attendance or non-participation by a student at the TEO for any reason, and whether or not the student has been refunded any fees.

2.    A TEO may set a withdrawal date, being the specified period during which a student can withdraw and receive a full refund of fees and course costs, provided that date is not earlier than the withdrawal date in paragraph 3.

3.    If a TEO does not set a withdrawal date, the withdrawal date will be the date on which 10% or one month of the course for which a student is enrolled has passed, whichever is the smaller.

4.    Completing the SDR does not discharge TEOs’ other obligations to report withdrawals.  These obligations include reporting (where applicable) to: Immigration New Zealand (for international students), Ministry of Social Development (for Student Loan and Student Allowance recipients) and Trustees administering fee protection mechanisms (for International students and all PTE students).

5.    If fees are to be refunded to a student, the TEO must, as soon as reasonably practicable, pay the refund: 

       a) to the Ministry of Social Development, if the student paid the fees using the Student Loan Scheme; or

       b) directly to the student.

Use of SACNC funding

1.    The TEO must ensure that SACNC funding is only used for the relevant programmes and activities at levels 1 and 2 on the NZQF which are specified in a TEO’s proposed investment plan (unless exempt).  For the purposes of calculating the amount of SACNC funding to be allocated to the TEO, the TEC uses a metric comprising:

       a)   the number of valid domestic enrolments (as described in below), measured in equivalent full-time students (EFTS); and

       b)   the qualifications, and their component courses, in which students are enrolled, and the assigned course classifications, funding categories, and funding rates of those qualifications.

2.    The TEO may only claim funding for a student who is:

       a)   a confirmed student enrolment; and

       b)   a valid domestic enrolment (as described in SACNC Valid domestic enrolment below); and

       c)   the student has completed 10% or one month of the course for which they have enrolled, whichever is the earlier.

SACNC Valid domestic enrolment

1.    A “valid domestic enrolment” is the enrolment of a student who:

       a)    is one of the following:

             (i)    a domestic student ; or

             (ii)    an Australian citizen or Australian permanent resident currently residing in New Zealand;

        b)   is one of the following:

             (i)    aged 16 years and over; or

             (ii)    aged under 16 years if the student meets the criteria established by the TEC as described in paragraph 2 below; and

             (iii)    is studying in New Zealand or the student meets the criteria established by the TEC as described in paragraph 3 below; and

        c)   does not already hold a qualification at level 2 or higher on the NZQF unless:

             (i)    the student is participating in a qualification in ESOL or Te Reo Māori; or

             (ii)    the TEO at which the student has enrolled has not reached the thresholds specified in Condition SACNC021.

Students aged under 16 years

2.    A student aged under 16 years is a valid domestic enrolment if:

      a) at the commencement of the programme of study or training in which the student is enrolled, the student was aged under 16 years; and

      b) the TEO is satisfied that the student is capable of completing the academic requirements of the programme in which the student is enrolled; and

      c) the TEO has ensured that the student has a school exemption certificate from the Ministry of Education; and

      d) if the student is, or will be, enrolled in secondary school at the time the programme of study or training starts, the TEO has ensured that the student's principal has signed a letter that approves the programme of study or training, and that either specifies that:

            (i) the student is not required to be absent from school during school hours; or

            (ii) if the student is required to be absent from school during school hours for more than five hours per week, the school will seek reduced funding for the student; and

      e) if the student is, or will be, home schooled at the time that the programme of study or training starts, the TEO has ensured that the parent of the student who is primarily responsible for the student's home schooling has signed a letter that approves the study or training.

Students studying outside New Zealand

3.    A student studying outside New Zealand is a valid domestic enrolment if:

      a)    the student is:

            (i) enrolled in a course(s) leading to the award of a recognised qualification offered by a New Zealand TEO; and

            (ii) enrolled at a New Zealand campus of a New Zealand TEO; and

      b)    the student is not:

            (i) resident overseas and enrolled at an overseas campus established by a New Zealand TEO; or

            (ii) a domestic student  who is travelling overseas and enrolled with an overseas tertiary education provider; or

            (iii) resident overseas and receiving tuition primarily through an overseas site of a TEO, regardless of the site at which the student is enrolled.

When a confirmed student enrolment is not a valid domestic enrolment for tertiary tuition calculations

4.    A confirmed student enrolment is not a valid domestic enrolment if the enrolment has, or continuation of study has been, secured by way of an inducement.

5.    To avoid doubt, a student remains a valid domestic enrolment if a student withdraws from a course after the withdrawal date and does not receive a full refund of fees and course costs (if fees and course costs apply). 

SDR001 (PTE):TEO to supply information and report to the TEC (for SACNC funding for TEIs)

Pursuant to section 159YC(1) of the Education Act 1989, it is a condition of a TEO receiving funding under section 159YA or section 159ZC that the TEO will supply to the TEC or the Ministry of Education, from time to time as required by the TEC or the Ministry of Education, and in the form specified by the TEC or the Ministry of Education, any financial, statistical, or other information that the TEC or the Ministry of Education requires the TEO to supply.  

TEO to supply enrolment information to the TEC

The following conditions are imposed to ensure that the TEC and the Ministry of Education obtain information about all confirmed students, whether or not fees are charged, and regardless of the funding source.  Your SDR return must include students who have withdrawn, unless they withdrew before becoming a confirmed student. If you have any doubts as to whether a student should be included in the SDR, please contact your Investment Manager or the Sector Helpdesk.

1.    The TEO must supply the following information to the TEC and/or the Ministry about each “confirmed student enrolment”, meaning:

      a) if fees apply:

            (i) a student and a TEO have entered into an enrolment or tuition contract or arrangement and the student has paid or committed to pay his or her fees; and

            (ii) the period during which the student is entitled to withdraw from a course, programme or training scheme and receive a full refund of fees (less any applicable administration fee) has passed; or

     b) if fees do not apply:

            (i) a student and a TEO have entered into an enrolment or tuition contract or arrangement; and

            (ii) the student has not withdrawn from a course, programme or training scheme by the withdrawal date (as specified in Withdrawal of enrolments below).

2.   The TEO must not alter the data submitted in the SDR based on any subjective assessment of a student's performance, participation or attendance.

Withdrawal of enrolments

1.    A “withdrawal” means the withdrawal of a confirmed student enrolment from a course, programme or training scheme, by notice from the student to the TEO or as a result of non-attendance or non-participation by a student at the TEO for any reason, and whether or not the student has been refunded any fees.

2.    If a student is enrolled for all or part of a programme or training scheme that is of more than three months duration, the withdrawal date and refund period entitlements are set out in sections 234C to 235D of the Education Act 1989.

3.    If a programme or training scheme is less than three months duration, the TEO must set a withdrawal date for each course in the programme or training scheme, up to and including which a student is entitled to a full refund of fees and course costs.  The withdrawal date for each course must be no earlier than the date at which 10% of the course for which a student is enrolled has passed.

4.    Completing the SDR does not discharge TEOs’ other obligations to report withdrawals.  These obligations include reporting (where applicable) to: Immigration New Zealand (for international students), Ministry of Social Development (for Student Loan and Student Allowance recipients) and Trustees administering fee protection mechanisms (for International students and all PTE students).

5.    If fees are to be refunded to a student, the TEO must, as soon as reasonably practicable, pay the refund: 

      a) to the Ministry of Social Development, if the student paid the fees using the Student Loan Scheme; or

      b) directly to the student.

Use of SACNC funding

1.    The TEO must ensure that SACNC funding is only used for the relevant programmes and activities at levels 1 and 2 on the NZQF which are specified in a TEO’s proposed investment plan (unless exempt).  For the purposes of calculating the amount of SACNC funding to be allocated to the TEO, the TEC uses a metric comprising:

      a)    the number of valid domestic enrolments (as described in below), measured in equivalent full-time students (EFTS); and

      b)    the qualifications, and their component courses, in which students are enrolled, and the assigned course classifications, funding categories, and funding rates of those qualifications.

2.   The TEO may only claim funding for a student who is:

      a)    a confirmed student enrolment; and

      b)    a valid domestic enrolment (as described in SACNC Valid domestic enrolment below); and

      c)    the student has completed 10% or one month of the course for which they have enrolled, whichever is the earlier.

SACNC Valid domestic enrolment

1.    A “valid domestic enrolment” is the enrolment of a student who:

      a)   is one of the following:

            (i) a domestic student ; or

           (ii) an Australian citizen or Australian permanent resident currently residing in New Zealand;

      b)   is one of the following:

            (i) aged 16 years and over; or

            (ii) aged under 16 years if the student meets the criteria established by the TEC as described in paragraph 2 below; and

            (iii) is studying in New Zealand or the student meets the criteria established by the TEC as described in paragraph 3 below; and

      d)   does not already hold a qualification at level 2 or higher on the NZQF unless: 
            (i) the student is participating in a qualification in ESOL or Te Reo Māori; or

           (ii) the TEO at which the student has enrolled has not reached the thresholds specified in Condition SACNC021.

Students aged under 16 years

2.    A student aged under 16 years is a valid domestic enrolment if:

      a)   at the commencement of the programme of study or training in which the student is enrolled, the student was aged under 16 years; and

      b)   the TEO is satisfied that the student is capable of completing the academic requirements of the programme in which the student is enrolled; and

      c)   the TEO has ensured that the student has a school exemption certificate from the Ministry of Education; and

      d)   if the student is, or will be, enrolled in secondary school at the time the programme of study or training starts, the TEO has ensured that the student's principal has signed a letter that approves the programme of study or training, and that either specifies that:

            (i)   the student is not required to be absent from school during school hours; or

            (ii)   if the student is required to be absent from school during school hours for more than five hours per week, the school will seek reduced funding for the student; and

      e)   if the student is, or will be, home schooled at the time that the programme of study or training starts, the TEO has ensured that the parent of the student who is primarily responsible for the student's home schooling has signed a letter that approves the study or training.

Students studying outside New Zealand

3.    A student studying outside New Zealand is a valid domestic enrolment if:
      a)   the student is:

            (i)   enrolled in a course(s) leading to the award of a recognised qualification offered by a New Zealand TEO; and

            (ii)   enrolled at a New Zealand campus of a New Zealand TEO; and

      b)   the student is not:

            (i)   resident overseas and enrolled at an overseas campus established by a New Zealand TEO; or

            (ii)   a domestic student  who is travelling overseas and enrolled with an overseas tertiary education provider; or

            (iii)   resident overseas and receiving tuition primarily through an overseas site of a TEO, regardless of the site at which the student is enrolled.

When a confirmed student enrolment is not a valid domestic enrolment for tertiary tuition calculations

4.    A confirmed student enrolment is not a valid domestic enrolment if the enrolment has, or continuation of study has been, secured by way of an inducement.

5.    To avoid doubt, a student remains a valid domestic enrolment if a student withdraws from a course after the withdrawal date and does not receive a full refund of fees and course costs (if fees and course costs apply).

SACNC001: TEO to supply information and report to the TEC

As specified in section 159YC(1) of the Education Act, it is a condition of a tertiary education organisation (TEO) receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that the TEC requires the TEO to supply.  

TEO to supply financial viability information to the TEC

The TEO must supply to the TEC information relating to the financial viability of the TEO, if the TEC notifies the TEO that the TEC requires that information. 

TEO to supply subcontracting information to the TEC

The TEO must supply to the TEC information about the TEO's subcontracting arrangements when the TEC requests that information.

TEO to supply fee information to the TEC (if requested)

For the purposes of determining whether the TEO has complied with Condition SACNC029, the TEO must provide the TEC with information about:

a)    the fees charged to students enrolled in a course that receives SAC (levels 1 and 2 non-competitive allocation) funding, who are aged under 25 years old at the time that the course commences; and

b)    the fees charged to students for each course that receives SAC (levels 1 and 2 non-competitive allocation) funding; and

c)     the fees that were charged for each course that receives SAC (levels 1 and 2 non-competitive allocation) funding the last time that the course was offered.

If the TEO discounts its course fees for a calendar year, the TEO must supply to the TEC information about each discount.

TEO to supply information to the TEC in certain situations

The TEO must notify the TEC immediately if:

a)    any record required to be kept under section 159YD(1) of the Education Act has been lost or damaged; or

b)    the TEO is no longer able to comply with a condition of funding.

ITP to supply information to the TEC

This condition applies to an institute of technology and polytechnic (ITP) that receives Special Supplementary Grant Funding.

At the end of each year, the ITP must supply to the TEC information about Special Education Special Supplementary Grant (SSG) funding provided for additional tutor support for special education using the reporting template specified by the TEC. 

PTE to supply information to the TEC in certain situations

This condition applies to a private training establishment (PTE). 

The PTE must notify the TEC immediately if:

a)    its New Zealand Qualifications Authority (NZQA) registration or accreditation is cancelled; or

b)    an Insolvency Event (see below) occurs in relation to it; or

c)    it has a Change of Control (see below); or

d)    it transfers (or agrees to transfer) all or a material part of its assets to a third party; or

e)    there is any change to the persons who make up its governing body; or

f)    it merges with or acquires any other entity or business;

g)    it has changed its name; or

h)    the location or locations at which it delivers a course or courses has changed.

Definition of Insolvency Event

"Insolvency Event" means, in relation to a PTE, the occurrence of any of the following events:

a)    that PTE ceases or threatens to cease to carry on all or any material part of its business or operations;

b)    an application is made (which is not withdrawn, stayed or dismissed within 10 Business Days of being made) to a court for an order, or an order is made, or an effective resolution is passed to place the PTE in liquidation or voluntary administration previously approved in writing by the TEC;

c)    that PTE proposes to enter into, any general assignment, arrangement, compromise or composition with or for the benefit of any of its creditors with a view to avoiding insolvency except as previously approved in writing by the TEC;

d)    an encumbrancer takes possession, or a trustee, receiver, receiver and manager, administrator, liquidator, provisional liquidator, inspector under any companies or securities legislation, or similar official, is appointed in respect of that PTE or the whole or any material part of its assets, or the board of directors request that a creditor or any other person appoint a receiver to that PTE);

e)    a distress, attachment or other execution is levied or enforced upon, or commenced against, any assets of that PTE and is not discharged or stayed within 10 Business Days, except, in each case, when the TEC is satisfied that that PTE is contesting the same in good faith by appropriate proceedings;

f)    that PTE is declared or becomes insolvent, is unable to pay its debts when they fall due, or is presumed unable to pay its debts in accordance with any applicable legislation;

g)   that PTE suspends or stops or threatens to suspend or stop payments generally or a moratorium is agreed or declared in respect of or affecting all or any material part of its indebtedness;

h)   that PTE seeks or obtains protection from its creditors under any statute or any other law;

i)    that PTE is declared to be a corporation at risk under the Corporations (Investigation and Management) Act 1989;

j)    a statutory or judicial manager is appointed over all or any of the assets of that person;

k)    any recommendation is made by the Financial Markets Authority to the Minister of the Crown who is responsible for administration of the Corporations (Investigation and Management) Act 1989 that that PTE or any associated person of that PTE be placed in statutory management under that Act;

l)    all of the directors of that PTE resign, or signal their intention to resign; or

m)   anything analogous or having a substantially similar effect to any of the events specified in paragraphs (a) to (m) above happens under the laws of any applicable jurisdiction in respect of that PTE;

Definition of Change of Control

"Change of Control" means, in relation to a person (the "first person"), when a person acquires Control of the first person or when a person who controls the first person ceases to do so.

"Control" means, in relation to a person (the "first person"), the ability of another person (the "second person") to ensure that the activities and business of the first person are conducted in accordance with the wishes of the second person, whether through ownership of voting shares, contract or otherwise.  Without limitation, the direct or indirect beneficial ownership of more than 50% of the voting rights in a body corporate is deemed to constitute Control. 

SACNC002: TEO to be eligible to receive SACNC funding

The TEO must meet, and for the period of funding approval, continue to be:

a)    an institute of technology and polytechnic (ITP); or

b)    a wānanga; or

c)    a university; or

d)    a PTE. 

SACNC003: TEO to continue to meet quality assurance requirements

The TEO must, for the period of funding approval, continue to be quality assured by the applicable quality assurance body, being:

a)    the NZQA, if the TEO is an ITP, a wānanga, or a PTE; or

b)    the New Zealand Vice-Chancellors’ Committee, if the TEO is a university.

SACNC004: TEO to meet minimum performance standards

The TEO must meet any minimum performance standards specified by the TEC, including any minimum performance standards specified in the TEO’s Investment Plan.

SACNC005: TEO to use funding for approved qualifications and courses

The TEO must use SACNC funding only to deliver qualifications and courses that have been approved by the TEC.

To receive approval for a qualification, the TEO must submit the relevant documents to the TEC in accordance with the information on the TEC's website.

SACNC006: TEO to ensure programmes and qualifications are eligible

The TEO must ensure that, throughout the period of funding approval, a programme of study or qualification in which an eligible student is enrolled and that receives SACNC funding:

a)     meets the objectives of foundation level tertiary education, which are to:

       (i)     provide people who do not already have essential foundation skills with access to a low cost way to gain those skills; and

       (ii)    provide progression to higher level study and skilled employment; and

       (iii)   build the literacy and numeracy skills of eligible students; and

       (iv)   enable beginning students to learn English or te reo Māori; and

       (v)    encourage those TEOs that are best able to meet the needs of foundation education students.

b)    is, and continues to be, one of the following:

       (i)     a course or courses leading to the award of a qualification at level 1 or 2 on the NZQF that has a credit value of 20 credits or more; or

       (ii)    a training scheme or short award with a credit value greater than 20 credits; or

       (iii)   National Certificate of Educational Achievement (NCEA) at level 2 that is aligned with one or more of the Vocational Pathways; and

c)     includes embedded literacy and numeracy provision (except for qualifications in ESOL or Te Reo Māori); and

d)    includes an assessment process, under which students are assessed using the Literacy and Numeracy for Adults Assessment Tool unless the qualification is in ESOL or Te Reo Māori; and

e)     if the qualification is in ESOL or Te Reo Māori, includes an assessment process under which students are assessed using the Literacy and Numeracy for Adults Assessment Tool (as required by the TEC); and

f)     is provided by tutors who hold an appropriate qualification (such as the National Certificate in Adult Literacy Education (Vocational)); and

g)    is fees-free to students who are under the age of 25 years at the time the course commences; and

h)     does not require a fee to be paid (by students aged 25 years or over) that is higher than the last time the TEO offered that course and charged a fee.  

The TEO must not use SACNC funding for programmes of study or training where the TEC considers on reasonable grounds that:

a)     a majority of the programme of study or training relates to health and safety or regulatory compliance learning; or

b)    students enrolled in the programme of study or training will only complete the health and safety or regulatory compliance learning components of that programme of study or training. 

SACNC007: TEO to use Literacy and Numeracy for Adults Assessment Tool

When the TEO delivers a course that leads to the award of a qualification (other than a qualification in ESOL or Te Reo Māori), the TEO must use the Literacy and Numeracy for Adults Assessment Tool to assess the literacy and numeracy needs of each student, and measure his or her progress.

For a course that leads to the award of a qualification in ESOL, from the date that the Starting Points options(s) within the Literacy and Numeracy for Adults Assessment Tool becomes available, the TEC requires the TEO to use the Starting Points option(s) to assess the literacy and numeracy needs of each student, and measure his or her progress.

TEOs are not required to use the Literacy and Numeracy for Adults Assessment Tool for a student enrolled in a course that leads to the award of a qualification in Te Reo Māori.

SACNC008: Funding not to be sought twice for courses leading to two (or more) qualifications

The TEO may only seek SACNC funding for the EFTS factor of a course once in cases where a student's enrolment in the course can lead to the award of two (or more) qualifications for the student, unless the TEO can demonstrate that additional EFTS value sought for the student's enrolment in the course adequately reflects additional teaching input or assessment that the student would not receive if his or her enrolment in the course could only lead to the award of one qualification.

SACNC009:  Funding not to be sought for students enrolled in courses that lead to students exceeding total EFTS value of qualification for that year

The TEO must not seek SACNC funding, in respect of a student enrolled in a course that leads to the award of a qualification, if the result of enrolling the student in the course is that the total EFTS factors for all of the courses in which the student is enrolled in that year exceed the total annual EFTS value of the qualification, unless:

a)    the student, in an exceptional circumstance (such as repeating a course that he or she previously has not passed), has elected to exceed total EFTS value of the qualification in that year; and

b)    the TEO can demonstrate that the EFTS factor sought for the course adequately reflects additional teaching input, rather than additional directed study.

SACNC010: TEO to ensure course assigned accurate course classification

The TEO must accurately assign each SAC-funded course to a course classification listed in the “Course Classification Prescription” as set out in Appendix 1 of the determination of design of funding mechanism entitled Student Achievement Component - Provision at levels 1 and 2 on the New Zealand Qualifications Framework (non-competitive allocation) and dated 19 August 2014.

The TEO must determine the assignment of each SAC-funded course by the content of the course, and not the course's name.

SACNC011: TEO to ensure qualifications are accurately designated

The TEO must accurately designate each SACNC funded qualification as “trades” or “non-trades”. 

SACNC012: TEO to meet requirements when making changes to a qualification

Before making a minor change to a qualification, the TEO must:

a)     obtain approval for the minor change from the relevant quality assurance body (if required), that is:

       (i)     NZQA, if the TEO is a PTE; or

       (ii)    NZQA or the TEO’s Academic Board, if the TEO is an ITP or a wānanga; or

       (iii)   the New Zealand Vice-Chancellor’s Committee on University Academic Programmes (CUAP), if the TEO is a university; and

b)     notify the TEC of the change and provide the relevant information; and

c)     obtain approval from the TEC to update the course or qualification register.

Before making a significant change to a qualification, the TEO must:

a)     obtain approval from the relevant quality assurance body; and

b)     provide the relevant information to the TEC (including evidence of approval from the quality assurance body) to enable the TEC to determine whether or not to approve the change; and

c)     obtain approval from the TEC to make the significant change.

Definition of minor change

For the purposes of this condition, a "minor change" to a qualification is a change that does not change the size, level, core content, or EFTS value of the qualification.

Definition of significant change

For the purposes of this condition, a "significant change" to a qualification is a change to:

a)    the EFTS value of the qualification; or

b)    the total number of credits in the qualification; or

c)    the timeframe to complete the qualification; or

d)    the level of the qualification in the New Zealand Qualification Framework; or

e)    the location or locations at which the qualification is delivered;

f)     or a change to the delivery mode of the qualification; or

g)     the number of courses that each student is expected to undertake to achieve the qualification; or

h)    pre-requisite requirements.

SACNC013: EFTS value of qualifications not to be more than 1 EFTS per year without TEC approval

The TEO must not assign an EFTS value of more than 1 EFTS per year, to a qualification, for which the TEO seeks approval of more than one EFTS of SACNC funding, unless the TEO has received approval from the TEC.

In approving an exception to this condition, the TEC will consider additional criteria, including whether the TEO:

a)    will inform each student accurately about his or her higher than normal expected study commitments; and

b)    has support mechanisms in place for each student who has difficulty coping with the intensity of the course

SACNC014: TEO must determine an appropriate EFTS value for each qualification and course

The TEO must:

a)    use the following three methods to determine the EFTS value of a qualification:

       (i)     credits or points; and

       (ii)    learning hours; and

       (iii)   full-time teaching weeks; and

b)    ensure that a qualification designed to be delivered within a year (being any 12 month period) is limited to a maximum of 1 EFTS, even if obtaining the qualification requires more than 120 credits, 1,200 hours of learning, or 34 full-time teaching weeks, unless the TEC has approved an exception to this limit; and

c)    provide the TEC with information on the three methods of calculating EFTS values (being credits or points, learning hours, and full-time teaching weeks) when the TEO enters qualification details on the TEC STEO website. 

EFTS values

For the purposes of this condition, one (1) EFTS equates to a programme of study or training that is 1,200 learning hours or 120 credits delivered over 34 teaching weeks.

If a TEO submits for approval for SACNC funding a qualification that has two or more strands, it must propose an EFTS value for the qualification that is based on the strand that contains the highest number of credits that the TEO is approved to deliver for the qualification. A strand is a combination of courses that leads to the award of a qualification.

Definition of learning hours and teaching weeks

For the purposes of this condition, learning hours and teaching weeks means:

a)    lecturer and tutor contact hours, including workshops and tutorials; and

b)    completion of tests and assignments; and

c)    supervised practical placements; and

d)    study time; and

e)    self-directed learning with tutorial support available; and

f)     examination periods.

SACNC015: TEO not to include overseas travel as part of a course

The TEO must not use SACNC funding to meet the costs of overseas travel for students, or require students to meet the cost of the travel by accessing the Student Loan Scheme, unless the overseas travel is academically essential.  

To determine whether overseas travel is academically essential, the TEO must:

a)    submit an application to the TEC:

       (i)    at least two months before the TEO advertises or publishes any information about the course or accepts enrolments; and

       (ii)   include a letter from the applicable quality assurance body, endorsing the essential nature of the travel component of the course; and

b)    receive approval from the TEC to include overseas travel as part of a course.

Definition of appropriate body

For the purposes of this condition, the appropriate quality assurance body is the NZQA if the TEO is an ITP, wānanga, or PTE, and the New Zealand Vice-Chancellors’ Committee, if the TEO is a university.

TEC considerations

When determining whether or not overseas travel is academically essential, the TEC will consider whether:

a)    the overseas travel is integrally linked to the stated outcomes of a course; and

b)    the course is a compulsory requirement of a qualification and/or major; and

c)    the academic outcomes for the course cannot be achieved in any other manner in New Zealand; and

d)    the course or qualification is aligned to the Tertiary Education Strategy.

SACNC016: TEO to provide necessary equipment, infrastructure, and hardware

The TEO must pay for the necessary equipment, infrastructure, and hardware required to deliver a particular course or qualification.

When providing essential equipment (including computers, diving hardware, and chainsaws), the TEO must not:

a)    include the costs in any fee, compulsory course cost, or compulsory student service fee, charged to a student; or

b)    require a student to meet the costs through the "course-related costs" component of the Student Loan Scheme as a condition of the student's enrolment.

Definition of equipment, infrastructure, and hardware

For the purposes of this condition, "equipment, infrastructure, and hardware":

a)    means items that can be used by successive intakes of students; and

b)    does not include personal items that are provided for individual students' use and that the TEO does not retain for the next intake of students.

SACNC017: TEO to keep enrolment records

The TEO must keep accurate and up-to-date records of each valid domestic enrolment of a student enrolled in a programme or programmes of study or training of more than 0.03 EFTS funded by the TEC, that specify:

a)    the programme or programmes of study or training (including qualification(s) and course(s)) in which the student has been admitted or readmitted; and

b)    the student’s identity details, including the student's name, date of birth, citizenship, domestic or international student status, and residency status (if relevant); and

c)     if the student is enrolled in a programme of study or training leading to a qualification with an EFTS value of greater than 0.03 EFTS, whether the TEO has verified the student's identity; and

d)    whether the TEO has verified that the student is a valid domestic enrolment; and

e)    the student's National Student Number (NSN); and

f)     the student’s previous academic achievement (if relevant); and

g)    the receipt verifying that the student has paid or has arranged to pay his or her fees (if applicable); and

h)    changes (if any) made to an enrolment; and

i)     whether the student has withdrawn from part of his or her programme of study or training, and the date of the withdrawal; and

j)      whether a student has been expelled from part of his or her programme of study or training by the TEO due to a breach of the TEO's Code of Conduct; and

k)    whether a student is on a discretionary leave of absence greater than leave normally granted under the TEO's standard minimum attendance requirements; and

l)     that the student is attending the programme of study in which he or she is enrolled, or is actively involved in the programme or course; and

m)   the period for which the student is enrolled.

SACNC018: TEO to verify student identity

The TEO must verify the identity of each student enrolled in a programme or programmes of study or training of more than 0.03 EFTS by doing one or more of the following:

a)    confirming that all data fields match the student’s NSN; or

b)    receiving an assertion through the Department of Internal Affairs’ RealMe® online identity verification service; or

c)    sighting the original or certified copy of a current passport; or

d)    sighting the original or certified copy of one or more of the following documents:

       (i)     a birth certificate; or

       (ii)    a certificate of identity; or

       (iii)   a New Zealand certificate of citizenship; or

       (iv)  an expired passport that has not been cancelled; or

e)     if a student is unable to obtain a birth certificate for the purposes of (d)(i) above, contacting the TEC to confirm that a whakapapa statement signed by both the student and a kaumātua is acceptable evidence of identity.

For the purposes of this condition a certified copy is a photocopy that has been endorsed as a true copy of the original. To be certified, the document must:

a)    be certified by an official of the issuing authority or a person authorised by law in New Zealand to certify documents, such as a Justice of the Peace, a lawyer or a court official (Court Registrar or Deputy Registrar); and

b)    have the official's signature on each page, with the name and title of the official shown clearly below his or her signature.

SACNC019: TEO to confirm that each student is a valid domestic enrolment

The TEO must verify a student's eligibility for enrolment as a valid domestic enrolment.

The TEO must use one of the following verification methods:

For the purposes of this condition, a certified copy is a photocopy that has been endorsed as a true copy of the original. To be certified, the document must:

a)     be certified by an official of the issuing authority or a person authorised by law in New Zealand to certify documents, such as a Justice of the Peace, a lawyer, or a court official (Court Registrar or Deputy Registrar); and

b)    have the official's signature on each page, with the name and title of the official shown clearly below his or her signature.

SACNC020: TEO not to induce enrolment

The TEO must not secure or seek to secure a valid domestic enrolment through offering an inducement.

Definition of inducement

For the purposes of this condition, an inducement includes any of the following, where they induce a student to enrol:

a)    a financial benefit to the student; or

b)    a personal advantage to the student; or

c)    a physical item that a student retains possession of after the course of study or training has ended. 

For the purposes of this condition, an inducement does not include:

a)    a scholarship, as defined below; or

b)    a physical item that:

       (i)     is essential for a student to complete the compulsory requirements of his or her programme of study (including printed course notes, an e-reader for course notes, course-related textbooks); and

       (ii)    cannot be returned and reused for students in subsequent intakes (for example, due to health and safety reasons; time-limited materials or materials that will be updated; or if it is not financially feasible); or

c)    an item or arrangement that has been approved by the TEC (for example, the TEC may approve an item that has minimal residual value or useful life in the general marketplace, or items that are needed for a student’s pathway into the vocation for which study or training has been undertaken); or

d)    the guarantee of a job placement on the successful completion of a programme of study, backed by a partial or total money-back guarantee; or

e)    a conditional offer of a partial refund (such as a refund for a timely or electronic enrolment).

Definition of scholarship

For the purposes of this condition, a scholarship means: 

a)    a merit scholarship (or prize) that comprises financial aid given to a student as a result of high academic achievement exceeding that of his or her fellow students or cohort; and/or

b)    a needs scholarship that comprises financial aid given to a student who would otherwise be significantly disadvantaged in accessing education, where the need of the student has been demonstrated through a robust application and assessment process; and/or  

c)    any scholarship that:

       (i)     has a clear, focused rationale for its existence; and

       (ii)    has a clearly identified philanthropic aim, or supports study in a particular area of importance to the donor.

SACNC021: TEO not to claim SACNC funding for students already holding qualifications at level 2 or higher

A TEO that receives SACNC funding must not seek funding for students who already hold a qualification at level 2 or higher on the NZQF if the TEO has already reached the following thresholds:

For qualifications other than ESOL or Te Reo Māori:

a)     for all enrolments in provision at levels 1 and 2 at any TEO, except for enrolments in mātauranga Māori qualifications at wānanga, students who already hold a qualification at level 2 or higher on the NZQF (or equivalent) comprise more than 10% of enrolments at each TEO; and

b)    for enrolments in mātauranga Māori qualifications at wānanga, students who already hold a qualification at level 2 or higher on the NZQF (or equivalent) comprise more than 10% of enrolments at each wānanga.

SACNC022: TEO not to restrict enrolment on the basis of private advantage

The TEO must not restrict enrolment in a SAC-funded programme or training scheme on the basis of private advantage (for example, restricting enrolment to the TEO’s employees only).

SACNC023: TEO not to claim SACNC funding for recognised prior learning

The TEO must not seek SACNC funding for recognised prior learning credited to a student.

To ensure that the TEO is able to comply with this condition, the TEO must:

a)    ask a student to specify prior learning he or she has undertaken; and 

b)    review the information provided by the student when admitting a student into a programme or qualification; and

c)    retain documents that confirm that the student has demonstrated the required knowledge or skill.

Recognised prior learning does not include repeated learning that the applicable quality assurance body requires students to repeat periodically.

SACNC024: TEO providing programmes leading to qualifications at levels 1 and 2 on the NZQF to limit fees

The TEO must not:

a)    charge a fee to a student enrolled in a course that receives SACNC funding if that student is aged under 25 years old at the time that the course commences; or

b)    charge a higher fee for any course that receives SACNC funding than what the TEO charged for the same course, the last time that the TEO offered that course and charged a fee.  

A fee associated with a particular course is subject to this condition if:

a)    the TEO is the sole source of the item to which the fee relates; and

b)    all students who are valid domestic enrolments for the course are required to pay the fees.

For the purposes of this condition, the term “fees” includes tuition fees, compulsory course costs, examination fees, material charges, costs of field trips, costs associated with the compulsory purchase of equipment or books through the TEO, and other charges associated with a course.

However, the term “fee” does not include compulsory student service fees or fees for student identification cards.

SACNC025: TEO that subcontracts delivery to comply with requirements

The TEO must not subcontract delivery of any programme, training scheme, component course or part of a course unless the TEO:

a)    has prior written consent from the TEC; and

b)    complies with any conditions imposed by the TEC on a consent to subcontract; and

c)    ensures that a subcontracted party does not further subcontract any functions; and

d)    remains accountable for the use of the SAC funding.

SACNC026: TEO not to receive other Crown funding

The TEO must:

a)    not (without the TEC's prior written consent) seek or obtain any funding from any Crown source other than the TEC to fund a programme or training scheme that is delivered using SACNC funding (including SSG funding); and

b)    notify the TEC immediately if it becomes aware of any circumstances that might result in a breach of subparagraph (a) of this condition.

SACNC027: TEO to use funding responsibly

The TEO must only use SAC funding (including SSG funding):

a)    lawfully, responsibly, and for the purposes for which the funding is provided; and

b)    in a manner consistent with the appropriate use of public funds.

SACNC028: TEO to repay funding following revocation of funding approval

If a TEC revokes some or all of a TEO's SACNC funding (including SSG funding) under section 159YG or 159ZF of the Education Act before some or all of that funding has been used or contractually committed towards the purposes for which it was provided, the TEO must treat the unexpended or uncommitted portion of funding as a debt due to the Crown that:

a)    is repayable on demand by the TEC; and

b)    may be set-off against all or any funding, or any sum of money payable by the TEC to the TEO.

SACNC029: TEO to repay over-funding

If the TEO receives funding (including SSG funding) that was greater than it should have been, or that the TEO was not entitled to receive, then the TEO must treat the amount of the over-funding as a debt due to the Crown that:

a)    is repayable on demand by the TEC; and

b)    may be set-off against all or any funding, or any sum of money payable by the TEC to the TEO.

For the purposes of this condition, in relation to SACNC funding that is not SSG funding, a TEO will have received funding that was “greater than it should have been” if the total dollar value of the SAC-funded provision at levels 1 and 2 that was delivered by the TEO within the funding year is less than 99% of the total dollar value of the SACNC provision paid to the TEO from SAC.

In that situation, the percentage of funding that is repayable is equal to the difference between the bottom of the tolerance band (99%) and the percentage value of the provision that was delivered.

SACNC030: TEI to meet benchmarks

This condition applies to a TEI that receives SACNC funding.

The TEI must participate as appropriate in benchmarking, including:

a)    providing the vendor with financial and performance information as requested, in a timely manner; and

b)    engaging the vendor over follow-up questions and related quality assurance processes, in a timely manner. 

For the purposes of this condition, ‘benchmarking’ is defined as the New Zealand Benchmarking Tool.

SACNC031: TEO to make information available to TEC and its appointed representative for the purpose of monitoring

By accepting funding from the TEC the TEO is deemed to have acknowledged that one of the TEC’s statutory functions is to monitor the performance of organisations receiving funding from the TEC, and that it is a statutory condition that the TEO must maintain certain records and supply certain information to the TEC.

Accordingly, by accepting funding from the TEC the TEO is deemed to have acknowledged that the TEC needs access to certain information to enable it to undertake its monitoring activities and, as such, the TEO authorises the TEC (and any representative acting on behalf of the TEC) to have reasonable access to information needed by the TEC to undertake its review and monitoring function.

This includes the TEO authorising the TEC and the TEC’s appointed representatives to have reasonable access to the TEO’s premises and any premises where the TEO’s records are kept for the purpose of enabling monitoring and review activities to be undertaken at those premises.