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 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
• 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 of the Act). 

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 funding for SAC3+ funding 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 SAC3+ conditions  (PDF 363 KB)(PDF, 362 Kb) that applied to 2015 funding only.

SDR001: TEO to supply information and report to the TEC (for SAC3+ 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).

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 SAC3+ funding

1.   The TEO must ensure that SAC3+ funding is only used for the relevant programmes and activities at level 3 and above on the NZQF which are specified in a TEO’s proposed investment plan (unless exempt).  For the purposes of calculating the amount of SAC3+ 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 SAC3+ 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.

SAC3+ 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; or

(iii)   an international student involved in postgraduate research as described in paragraph 2 below; and

b)   is either:

(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 3 below; and

c)   is studying in New Zealand or the student meets the criteria established by the TEC as described in paragraph 4 below; and

d)   has paid or committed to pay his or her fees (if fees apply), or, if the student has not paid fees, the student meets the criteria established by the TEC as described in paragraph 5 below.

An international student involved in postgraduate research

2.   An international student involved in post graduate research is a valid domestic enrolment if the programme of study in which he or she are enrolled is:

a)   level 9 or higher on the NZQF (Masters level or higher); and

b)   wholly research (for example, 120 point thesis).

Students aged under 16 years

3.   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

4. 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.

Students who have not paid fees

5.   A student who has not paid his or her fees (if fees apply) is a valid domestic enrolment if the TEO pays for a student's fees through a scholarship.

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

6.   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.

7.   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.

SDR001 (PTE): TEO to supply information and report to the TEC (for SAC3+ 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).

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 SAC3+ funding

1.   The TEO must ensure that SAC3+ funding is only used for the relevant programmes and activities at level 3 and above on the NZQF which are specified in a TEO’s proposed investment plan (unless exempt).  For the purposes of calculating the amount of SAC3+ funding to be allocated to the TEO, the TEC uses a metric comprising:

a)  the number of valid domestic enrolments (as described 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 SAC3+ 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.

SAC3+ 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; or

(iii)   an international student involved in postgraduate research as described in paragraph 2 below; and

b)   is either:

(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 3 below; and

c)   is studying in New Zealand or the student meets the criteria established by the TEC as described in paragraph 4 below; and

d)   has paid or committed to pay his or her fees (if fees apply), or, if the student has not paid fees, the student meets the criteria established by the TEC as described in paragraph 5 below.

An international student involved in postgraduate research

2.   An international student involved in post graduate research is a valid domestic enrolment if the programme of study in which he or she are enrolled is:

a)   level 9 or higher on the NZQF (Masters level or higher); and

b)   wholly research (for example, 120 point thesis).

Students aged under 16 years

3.   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

4.   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.

Students who have not paid fees

5.   A student who has not paid his or her fees (if fees apply) is a valid domestic enrolment if the TEO pays for a student's fees through a scholarship.

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

6.   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.

7.   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.

SAC3+001: 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 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 forecast of EFTS

The TEO must supply to the TEC a forecast of its likely SAC EFTS at levels 3 and above on the NZQF in accordance with the SDR Manual.

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 required)

For the purposes of determining the fee to be used in calculating the Annual Maximum Fee Movement (AMFM), the TEO must provide the TEC with information about:

a)      the highest fee charged to a student;

b)      the usual fee charged to a student; and

c)      any discounted fees charged to a student.

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)      it is no longer able to comply with a condition of funding.

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.

SAC3+002: TEO to be eligible to receive SAC funding

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

a)  a university; or

b)  an institute of technology or polytechnic (ITP); or

c)  a wānanga; or

d)  a PTE; or

e)  a rural education activities programme (REAP) provider.

SAC3+003: TEO to be quality assured

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, wānanga, PTE or a REAP provider; or

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

SAC3+004: 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.

SAC3+005: TEO to use funding for approved qualifications and courses

The TEO must use SAC funding to deliver only 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.

SAC3+006: TEO to ensure SAC programmes and qualifications are eligible

The TEO must ensure that a SAC-funded course in which a student is enrolled is and continues to be:

a)  part of a programme that:

       (i)   leads to the award of a qualification at levels 3 to 10 on the NZQF; and

       (ii)  if offered by a PTE, comprises 40 or more credits; and

       (iii) has been quality assured by the applicable quality assurance body; or

b)  part of a training scheme that:

       (i)   leads to an award that is not a qualification listed on the NZQF;

       (ii)  has been quality assured by either the NZQA or the  New Zealand Vice-Chancellor’s Committee on University Academic Programmes (CUAP) as appropriate.

TEO not to use SAC funding for certain post-entry health-related professional qualifications

The TEO must not use SAC funding for a course that is part of a programme that leads to the award of a post-entry health-related professional qualification that has:

a)  a clinical component of more than 30% within the total qualification; or

b)  a requirement for clinical education and training or an emphasis on specialist clinical professional skills.

TEO not to use SAC funding for pre-service teacher training

Unless the TEC provides an exemption to the TEO, the TEO must not use SAC funding for pre-service teacher training:

a)  at a new TEO; or

b)  at an established TEO, if the pre-service teacher training is significantly different in scope or level from existing training.

The TEC may only provide an exemption if Ministry of Education (Education Workforce Policy unit) advises that the Minister of Education has granted an exemption to the moratorium on pre-service teacher training.

TEO not to use SAC funding for health and safety regulatory compliance learning

The TEO must not use SAC funding to fund a programme of study or training where the TEC considers on reasonable grounds that a majority of the programme of study or training relates to health and safety or regulatory compliance learning.

For the purposes of this condition, health and safety or regulatory compliance learning that the TEC will not fund includes:

a)   a training scheme or workplace training that is designed primarily to equip a participant with the skills and knowledge that he or she needs to carry out a given task or function in a manner that complies with a specific health and safety and/or regulatory compliance requirement; or

b)  learning that displaces the responsibility of an employer to provide the necessary training for the mitigation of health and safety, and regulatory compliance risks; or

c)  a qualification that contains learning about health and safety and/or regulatory compliance that it will only lead to the completion of health and safety and/or regulatory compliance learning, rather than a whole qualification.

SAC3+007:  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 SAC 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.

SAC3+008: Funding not to be sought twice for courses leading to two (or more) qualifications

The TEO may only seek SAC 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 the 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.

SAC3+009: 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 Two of the Supplementary Determination of Design of Funding Mechanism for Student Achievement Component - Provision at level 3 and above on the New Zealand Qualifications Framework dated 13 October 2015.

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

SAC3+010: Certificates of proficiency and short awards

The TEO must:

a)   set up a Certificate of Proficiency (COP) or a Certificate of Personal Interest (CPI) as a generic qualification under which to record individual programmes of study that consist of courses or unit standards selected from approved qualifications; and

b)  ensure the applicable quality assurance body approves a COP and/or a CPI as generic qualifications and seek the TEC's approval to add them to the TEC Qualifications Register; and

c)   claim no more than 5% of its EFTS units as a COP, CPI, or short award.

SAC3+011: 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 REAP provider; or

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

      iii)  CUAP or the TEO’s Academic Board, 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;

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 NZQF; or

e)   the location or locations at which the qualification is delivered; or a change to the delivery mode of the qualification; or

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

g)   pre-requisite requirements.

SAC3+012: 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 SAC 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.

SAC3+013: 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 Qualifications Register.

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 SAC 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.

SAC3+014: TEO not to include overseas travel as part of a course

The TEO must not use SAC 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, PTE or REAP provider, and CUAP 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.

SAC3+015: 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.

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.

SAC3+016: 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/or has the appropriate student visa; 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, the date of the withdrawal, and whether the withdrawal was within the withdrawal period; 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.

SAC3+017: TEO to verify student’s 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.

SAC3+018: 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.

For the following types of student who are a valid domestic enrolment under condition SAC3+/016: TEO to ensure student enrolled in SAC course is eligible, 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.

SAC3+019: 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.

SAC3+020: 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).

SAC3+021: TEO not to seek SAC funding for recognised prior learning

The TEO must not seek SAC 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;

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 or training that the applicable quality assurance body requires students to repeat periodically.

SAC3+022: TEO not to exceed Annual Maximum Fee Movement

Applicability of this condition

This condition applies to fees and course costs (together referred to as “fees”) charged by the TEO for the following courses:

a)   a SAC-funded course that is part of a programme that leads to a qualification at level 3 or above on the NZQF (that is, part of a short award, certificate, diploma, degree, or postgraduate qualification, including professional masters programmes); or

b)   any new SAC-funded courses established by the TEO in substitution for an existing course dealing with the same or similar subject matter, at the same or similar level on the NZQF, provided that, in relation to the fees associated with a particular course:

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

b)   all domestic students validly enrolled in the course are required to pay the fees.

Annual Maximum Fee Movement

The annual maximum fee movement (AMFM) for 2016 is a 3% increase on the fees (GST exclusive) that a TEO charged in 2015, for a course at level 3 and above on the NZQF, for which the TEO receives SAC funding, and which is part of a programme leading to qualifications listed on the NZQF.

The applicable fee for the purposes of this condition is the fee applying to the course in the calendar year in which the course started.

If the fees applicable to a course are subsequently discounted, the applicable fee for the purposes of this condition is the highest fee actually charged to an intake of students.

Exceptions to the AMFM

The TEO may apply for an exception to the AMFM on the basis of exceptional circumstances (listed below).

The TEC may grant an exception to the AMFM for one or more of the TEO’s courses.  However, any exception granted will not exceed an additional 3% increase over and above the permitted 3% increase.

In considering whether or not there are exceptional circumstances, the TEC will only have regard to the following criteria:

a)   the TEO is unable to support each course while remaining financial viable; and

b)   for a course that is part of a programme that leads to a qualification at levels 3 to 8 on the NZQF, the completion rate for the qualification met or exceeded the median performance benchmark for that level in the previous year; and

c)   the TEO can demonstrate that the course is in some way unique or special (for example, there are no local alternatives to the course); and

d)   not allowing the exception will prevent the TEO from making a significant contribution to the achievement of one or more of the Government's priorities, as set out in the Tertiary Education Strategy 2014-19.

The TEC will only grant an exception if it is satisfied that the TEO meets all of the above criteria.

Applications for exceptions are available on the TEC website.

Zero fee or low fee courses

If the fees for a SAC-funded course that is part of a programme that leads to a qualification at level 3 or above on the NZQF were less than $511.11 (GST inclusive) or $444.44 (GST exclusive) per EFTS in the previous year, then the TEO may increase the fee by the greater of:

a)   up to $511.11 (GST inclusive) or $444.44 (GST exclusive) per EFTS; or

b)   3%.

TEO to reimburse student for overcharged fees

If the TEO breaches the AMFM, the TEO must refund the student the part of the fee that was overcharged.  The refund must be paid to:

a)   StudyLink, if the student paid for the course using the Student Loan Scheme; or

b)   the student.

Definitions

For the purposes of this condition, the following terms have the following meaning:
Domestic student has the same meaning as set out in section 159 of the Education Act 1989;

Fees includes the following items: 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 but excludes the cost of returning exam scripts or exam recounts; international handling charges for domestic students living overseas and studying extramurally; equipment or books that it is compulsory for a student to purchase but which can be  purchased from either the TEO or another source; student service levies approved by the TEO's governing body; student accommodation charges other than fees payable for a field trip; or bond payments.

New SAC-funded courses established by the TEO in substitution for an existing course dealing with the same or similar subject matter, at the same or similar level on the NZQF means that the SAC-funded course is:

a) replacing an active course, meaning:

(i) it has been delivered by the TEO within the past two calendar years; and

(ii) fee increases have been entered into Services for Tertiary Education Organisations (STEO) within that period; and

b) has not changed the percentage of credits in the course that it is substituting, or has changed by fewer than 5 credits or less than 15 percent, whichever is fewer; and

c) has not changed the NZQF level of the course that it is substituting; and

d) has not changed the funding category of the course that it is substituting.

SAC3+023: 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 the consent to subcontract; and

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

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

SAC3+024: 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 SAC 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.

SAC3+025: TEO to use funding responsibly

The TEO must only use SAC 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.

SAC3+026: TEO to repay funding following revocation of funding approval

If the TEC revokes some or all of a TEO's SAC funding under section 159YG of the Education Act 1989 before some or all of that funding has been used or contractually committed towards the purposes for which the funding was provided, the TEO must treat the unexpended or uncommitted portion of the funding as debt due to the Crown that is:

a)   repayable on demand by the TEC; and

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

SAC3+027 TEO to repay over-funding

If the TEC considers on reasonable grounds that a TEO has received 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 over-funding as a debt due to the Crown that:

a)   is repayable on demand by the TEC; and

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

For the purposes of this condition, a TEO will have received funding that was “greater than it should have been” if the total dollar value of the SAC-funded provision that was delivered by the TEO within the funding year is less than 99% of the total value of the 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.

SAC3+028: TEO to repay Skills for Canterbury (SFC) funding in certain circumstances

If the dollar value of the delivery of both the SAC-funded provision at level 3 or above on the NZQF and SFC-funded provision delivered by the TEO:

a)   together comprise less than 99% of the total SAC funding (i.e. excluding the SFC funding), the amount of overfunding that the TEO must repay the TEC is:

       i)   the difference between 99% of the total dollar value paid to the TEO for the SAC-funded provision and the dollar value of the SAC-funded provision actually delivered; and

       ii)  the total dollar amount of the SFC funding; or

b)   together comprise between 99% to 100% of the TEO's SAC funding, the amount of overfunding that the TEO must repay the TEC is the total amount of SFC funding; or

c)   is more than 100% of the SAC funding, and the dollar value of the SFC-funded provision is less than 100% of the total SFC funding, the amount of overfunding that the TEO must repay the TEC is the difference between 100% of the total dollar value paid to the TEO for the SFC funded provision and the dollar value of the SFC-funded provision actually delivered.

In each instance, the TEO must treat the amount of overfunding as a debt due to the Crown that:

a)   is repayable on demand by the TEC; and

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

SAC3+029: TEO enrolling a student in pilot training not to approve certain loans

This condition applies to a TEO that is allocated EFTS for aviation provision that includes an in-flight training component (pilot training).

The TEO must supply StudyLink with the correct student enrolment information through the Verification of Study system, and ensure that:

a)   annual student loan fee borrowing for any pilot training student that is studying fulltime does not exceed $35,000 per EFTS; and

b)   where a pilot training student is studying part-time, annual student loan fee borrowing does not exceed the proportion of $35,000 that is represented by the proportion of an EFTS course load that is being undertaken by the student (for example, if a student is studying 0.4 EFTS in the year, the student loan borrowing limit will be $14,000).

SAC3+030: TEI to participate in benchmarking

This condition applies to a TEI.

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.

SAC3+031: 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.

SAC3+032: TEO (other than a PTE) eligibility for additional funding

Additional funding

1. The TEC will allocate additional SAC3+ funding up to the limits specified in paragraph 2 of this condition if:

a) the TEO has met, and continues to meet throughout the funding period, the minimum thresholds for organisational and educational performance for determining under which circumstances a TEO qualifies for additional funding, as described below; and

b) the value of provision measured in dollars that is specified in the TEO’s funding approval is less than the value of provision measured in dollars actually delivered by the TEO.

1. Subject to paragraph 3, the limits for additional funding are the greater of:

a) 2% of the TEO’s approved funding allocation; or

b) an additional 10 equivalent full-time students (EFTS).

2. The TEC may allocate funding above the limits set out in paragraph 2 if the TEC has, in its absolute discretion, assessed that there is sufficient SAC3+ funding available under the SAC3+ funding mechanism to do so.

Minimum thresholds for organisational performance

A. TEOs (except universities) must have an NZQA External Evaluation and Review (EER) rating of “Highly Confident”(Category 1) or “Confident” (Category 2).

B. If a TEO is established in 2015 or 2016 as the result of a merger of two or more TEOs, if the merged organisations each had an EER rating of Category 1 or 2, the TEC will accept those ratings as meeting the minimum threshold.

C. If, at the date of this letter or during the funding period, a TEO does not have an EER rating, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds until the EER rating, if any, is known.

D. If, at the date of this letter or during the funding period, a TEO is disputing its EER rating, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds until the dispute is resolved.

E. If a TEO becomes the subject of a TEC investigation in 2016, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds for organisational performance until the outcome of the investigation is known.

Minimum threshold for educational performance

The minimum threshold for educational performance is an average course completion rate of 70% or higher.

SAC3+033: PTE eligibility for additional funding

Additional funding

1.   The TEC will allocate additional SAC3+ funding up to the limits specified in paragraph 3 of this condition if:

a)    the PTE has met, and continues to meet throughout the funding period, the minimum thresholds for organisational and educational performance for determining under which circumstances a TEO qualifies for additional funding, as described below;

b)    the minimum number of EFTS that the PTE is approved to deliver for 2016 is 20 EFTS; and

c)   the value of provision measured in dollars that is specified in the PTE’s funding approval (being the value of provision measured in dollars for which the TEC allocates funding and the value of provision measured in dollars that the TEC approves but does not allocate funding) is exceeded.

2.   Subject to paragraph 3, the limits for additional funding are the greater of:

a)   2% of the PTE’s approved funding allocation; or

b)   an additional 10 equivalent full-time students (EFTS).

3.   The TEC may allocate funding above the limits set out in paragraph 2 if the TEC has, in its absolute discretion, assessed that there is sufficient SAC3+ funding available under the SAC3+ funding mechanism to do so.

Minimum thresholds for organisational performance

A.  PTEs must have an NZQA External Evaluation and Review (EER) rating of “Highly Confident” (Category 1) or “Confident” (Category 2).

B.  If a PTE is established in 2015 or 2016 as the result of a merger of two or more TEOs, if the merged organisations each had an EER rating of Category 1 or 2, the TEC will accept those ratings as meeting the minimum threshold.

C.  If, at the date of this letter or during the funding period, a PTE does not have an EER rating, the TEC will not make any decisions as to the whether the PTE has met the minimum thresholds until the EER rating, if any, is known.

D.  If, at the date of this letter or during the funding period, a PTE is disputing its EER rating, the TEC will not make any decisions as to the whether the PTE has met the minimum thresholds until the dispute is resolved.

E.  If a PTE becomes the subject of a TEC investigation in 2016, the TEC will not make any decisions as to the whether the PTE has met the minimum thresholds for organisational performance until the outcome of the investigation is known.

Minimum threshold for educational performance

The minimum threshold for educational performance is an average course completion rate of 70% or higher.