(a)           We will allocate you additional SAC 3+ Fund Funding to that specified in Appendix 1 if:

(i)             you are a “qualifying TEO”, which means you:

A.             have a NZQA External Evaluation and Review (EER) rating of Category 1 or 2[¹] (except for Universities); and

B.             are approved by us to deliver a minimum of 20 EFTS (funded and unfunded) in 2019; and

C.             have an average 2018 course completion rate of 70% or higher for SAC level 3 and above; and

(ii)           one of the following applies:

A.             you are a TEI or REAP provider and the value of provision you actually deliver as measured in dollars (as determined by us), is greater than the value of your approved funding allocation; or

B.             you are a PTE and the value of provision you actually deliver as measured in dollars (as determined by us), that is approved by us (being the value of provision measured in dollars for which we allocate funding and the value of provision measured in dollars for which we don’t allocate funding) is exceeded.

(b)          The additional funding available to be allocated is up to the following limits, either:

(i)             2% of your approved funding allocation; or

(ii)           10 EFTS, (we will calculate 10 EFTS of delivery using the average EFTS rate of your total actual delivery (funded and unfunded), as determined by us).

whichever is greater.

(c)           Any additional funding will be calculated using information provided in the December Single Data Return (SDR) with payments made in March of the following year.

(d)          We may establish criteria to allocate funding above the additional funding limits described in (b), if we have assessed that we have sufficient funding available to provide funding above those limits.

The following Conditions apply to your entitlement to receive funding that is allocated from the Student Achievement Component – Provision at Level 3 and above on the NZQF Fund (SAC 3+ Fund) for the Funding Period, in addition to those set out Conditions in the Base Funding Confirmation and the Education Act.

[¹] EER is to be the highest published EER category for the TEO during the funding year to which flexible funding is being applied.

(a)  You must continue to be:

(i)    a TEI, namely:

A.  a university

B.  an ITP

C.  a wānanga, or

(ii)   a PTE, or

(iii)  a REAP provider.

(b)  You must continue to be quality assured by:

(i)    the NZQA, if you are an ITP, a wānanga, a PTE or a REAP provider, or

(ii)   the NZVCC, if you are a university.

(a)  You must:

(i)    supply to us information about each student enrolled in a course by completing the fields in the SDR in accordance with the SDR Manual and its appendices, and

(ii)   submit the information on or before the date we specify.

(b)  You must submit the SDR through the Services for Tertiary Education Organisations (STEO) website. For more information, please refer to the SDR Manual and SDR Appendices.

(c)   You must supply to us a forecast of your likely SAC3+ Fund funded EFTS in accordance with the SDR Manual.

You must ensure that your SDR accurately records all “confirmed student enrolments” where fees apply and that have a programme start on or after 1 January 2017.  A confirmed student enrolment occurs where:

(a)  a student and your organisation have entered into an enrolment or tuition contract or arrangement and the student has paid or committed to pay his or her fees, and

(b)  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, and

(c)   the student has not received a full refund of fees (less any applicable administration fee).

4.1          Withdrawal date for TEIs

(a)    You may set a Withdrawal date, being the specified period during which a student can Withdraw and receive a full refund of fees, course costs and compulsory student service fees, provided that date is not earlier than the Withdrawal date in paragraph (b).

(b)   If you do 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.

4.2       Withdrawal date for PTEs

If you are a PTE, you must comply with the Withdrawal dates and refund period entitlements set out in sections 234C to 235D of the Education Act.

4.3       Reporting Withdrawals to the Ministry of Social Development (StudyLink)

In addition to any other Conditions requiring you to report Withdrawals of enrolments, you must report the Withdrawal of students to the Ministry of Social Development (StudyLink) within five working days of each Withdrawal.  This is to enable student loans and student allowances to be cancelled as soon as possible.

4.4       Other obligations to report Withdrawals

For the avoidance of doubt, completing the SDR does not discharge your 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).

4.5       Refunding fees for Withdrawals

If fees are to be refunded to a student, you 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.

5.1       Valid domestic enrolments

(a)    You must only use SAC 3+ Fund Funding for "valid domestic enrolments".

(b)   For the purposes of SAC 3+ Fund Funding, the term “valid domestic enrolment” refers to the enrolment of a student who:

(i)      is one of the following:

A.      a Domestic Student; or

B.      an Australian citizen or Australian permanent resident currently residing in New Zealand; or

C.      an international student involved in post graduate research (who meets the requirements in paragraph (c) below); and

(ii)    is either:

A.   aged 16 years and over; or

B.   aged under 16 years and meets the criteria in paragraph (d) below; and

(iii)   is studying in New Zealand, unless the student meets the criteria in paragraph (e) below; and

(iv)  has paid or committed to pay his or her fees (if fees apply), unless the student meets the criteria in paragraph (f) below.

(c)    An international student involved in postgraduate research is a valid domestic enrolment, if the programme of study in which he or she is enrolled is:

(i)      a PhD (level 10 on the NZQF)[¹]; and

(ii)    wholly research.

(d)   A student aged under 16 years old at the time that the programme of study or training in which the student is enrolled begins is a valid domestic enrolment if he or she meets the following criteria:

(i)      you are satisfied that the student is capable of completing the academic requirements of the programme of study or training in which the student is enrolled; and

(ii)    you have ensured that the student has a school exemption certificate from the Ministry of Education; and

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

A.   the student is not required to be absent from school during school hours; or

B.   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 from the Ministry of Education; and

(iv)  if the student is, or will be, home schooled at the time that the programme of study or training starts, you have 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.

(e)   A student studying outside New Zealand is a valid domestic enrolment if he or she meets the following criteria:

(i)      the student is:

A.      a Domestic Student[²]; and

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

(ii)    the student meets the following criteria if they are studying at an overseas campus or delivery site (irrespective of whether they are enrolled at the TEO’s New Zealand campus or overseas campus):

A.      the student is enrolled at a New Zealand TEO in a programme leading to the award of a qualification at Level 7 or above on the NZQF;  and

B.      the study outside New Zealand is full time and face-to-face (ie not an extramural enrolment) in an approved country identified on the Education New Zealand website; and

C.      is undertaking part (but not all) of the programme outside New Zealand.

(f)     A student who has not paid his or her fees (if fees apply) is a valid domestic enrolment if you pay for the student’s fees through a scholarship, or if the student is eligible for fees-free tertiary education, and you are prohibited from charging the student the amount that we have paid you under Condition 8 which may be some or all of the fees.

5.2          Verification of student eligibility

(a)    You must verify a student's eligibility for enrolment as a valid domestic enrolment. For the following types of students who are valid domestic enrolments under the above Condition, you must use one of the following verification methods below, and assess whether the student meets the eligibility criteria as specified in Condition 5.1:

(a)    For the purposes of this Condition, a certified copy is a photocopy, photograph or scanned copy that has been endorsed as a true copy of the original. To be certified, the document must:

(i)      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

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

5.3          Verification of student identity

(a)    You 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, and confirm whether the student is who they say they are:

(i)      by confirming that all data fields match the student’s NSN; or

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

(iii)   if the student is in prison at the time of enrolment, by receiving a completed and signed Department of Corrections “Verification of legal name and New Zealand residency status form" relating to the student; or

(iv)  by sighting the original or certified copy of a current passport; or

(v)    by sighting the original or certified copy of one or more of the following documents:

A.   a birth certificate; or

B.   a certificate of identity; or

C.   a New Zealand certificate of citizenship; or

D.   an expired passport that has not been cancelled.

(b)   If a student is unable to obtain a birth certificate for the purposes of (a)(v)(A) above, you may contact us to confirm that a whakapapa statement signed by both the student and a kaumātua is acceptable evidence of identity.

(c)    For the purposes of this Condition, a certified copy is a photocopy, photograph or scanned copy that has been endorsed as a true copy of the original. To be certified, the document must:

(i)      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

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

5.4          Enrolment records for valid domestic enrolments

 (a)   If a student, who is a valid domestic enrolment, is enrolled in a programme of study or training of more than 0.03 EFTS funded by us, you must keep accurate and up-to-date records specifying:

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

(ii)    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

(iii)   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 you have verified the student's identity; and

(iv)  whether you have verified that the student is a valid domestic enrolment and/or has the appropriate student visa; and

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

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

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

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

(ix)  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

(x)    whether a student has been expelled from part of his or her programme of study or training by you due to a breach of your Code of Conduct; and

(xi)  whether a student is on a discretionary leave of absence greater than leave normally granted under your standard minimum attendance requirements; and

(xii) 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 (student attendance record); and

(xiii) the period for which the student is enrolled.

(b) You must retain each student’s records described in paragraph 5.4(a) until:

(i)     at least two years after the completion of the education or training in which the student is enrolled; or

(ii)    if a student withdraws before the student has completed his or her education or training, at least two years after the date of withdrawal.

5.5          No inducing enrolment 

(a)    Even if a student meets the criteria specified in paragraph 5.1, the enrolment is not a valid domestic enrolment if it has been secured by way of an inducement.

(b)   For the purposes of this Condition, an inducement includes any of the following, where it induces a student to enrol:

(i)      a financial benefit to the student; or

(ii)    a personal advantage to the student; or

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

(c)    For the purposes of this Condition, an inducement does not include:

(i)      a scholarship, as defined below; or

(ii)    a physical item that:

A.      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

B.      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

(iii)   an item or arrangement that has been approved by us (for example, we 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

(iv)  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

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

(d)   For the purposes of this Condition, a scholarship means: 

(i)      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

(ii)    a needs-based 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  

(iii)   any scholarship that:

A.      has a clear, focused rationale for its existence; and

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

5.6          No private advantage

You must not restrict enrolment in a SAC 3+ Fund funded programme or training scheme on the basis of private advantage (for example, restricting enrolment to your employees only).

5.7          Exceeding the total annual EFTS value of the qualification

You must not seek SAC 3+ Fund 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)   you can demonstrate that the EFTS factor sought for the course adequately reflects additional teaching input, rather than additional directed study.

5.8          Funding for EFTS factor of a course

You may only seek SAC 3+ Fund 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 you 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.

5.9          Recognised prior learning

You must not seek SAC 3+ Fund Funding for recognised prior learning credited to a student. To ensure that you are able to comply with this Condition, you must:

(a)    make any fees charged for recognition of prior learning clear to the student;

(b)   ask the student to specify prior learning he or she has undertaken;

(c)    review the information provided by the student when admitting a student into a programme or qualification;

(d)   retain documents that confirm that the student has demonstrated the required knowledge or skill; and

(e)   reduce the student’s fees accordingly in proportion to the recognised prior learning he or she has undertaken.

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

[¹] This condition takes effect from 11 March 2019 onwards for the following Universities only: Victoria University of Wellington, Auckland University, Waikato University and Otago University. This condition is currently in effect for all other TEOs.
[²] The criteria that a permanent resident (the holder of a residence class visa granted under the Immigration Act 2009) who will be studying overseas must satisfy to be a domestic student are set out in the Education (Tertiary Education—Criteria Permanent Residents Studying Overseas must Satisfy to be Domestic Students) Regulations 2016.

6.1       Approval of programmes and qualifications

You must only use SAC3+ Fund Funding to deliver qualifications and courses that have been approved by us. To receive approval for a qualification, you must submit the relevant documents to us in accordance with the information on our website.

6.2       Minimum requirements

You must ensure that SAC3+ Fund Funding is only used for a course that:

(a)  is part of a programme that:

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

(ii)   has been quality assured by either NZQA or the NZVCC (where appropriate), or

(b)  is part of a training scheme that:

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

(ii)   has been quality assured in accordance with criteria we publish.

6.3       Health-related professional qualifications 

(a)  You may use SAC3+ Fund Funding for courses that are part of a programme leading to the award of a post-entry health-related professional qualification that:

(i)    is of an academic or research nature, and

(ii)   has a clinical component of 30% or less within the total qualification.

(b)  You must not use SAC3+ Fund Funding for courses that are part of a programme leading to the award of a post-entry health-related professional qualification that has:

(i)    a clinical component of more than 30% within the total qualification, and

(ii)   either:

A.  a requirement for clinical education and training, or

B.  an emphasis on specialist clinical professional skills.

6.4          Health and safety or regulatory compliance learning

(a)    You must not use SAC 3+ Fund Funding to fund a qualification where a majority of the courses in the qualification relate to health and safety or regulatory compliance.

(b)   When determining whether a majority of the courses in a qualification relate to health and safety or regulatory compliance, we will:

(i)      exclude courses from that calculation that are integral to the skills and knowledge recognised through the qualification; and

(ii)    include the following courses in that calculation:    

A.      discrete short packages of health and safety or regulatory compliance learning (usually under 20 credits);

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; and

C.      courses that contain learning about health and safety and/or regulatory compliance that will only lead to the completion of health and safety and/or regulatory compliance learning, rather than a whole qualification.

6.5          Training schemes (including Certificates of Proficiency and Certificates of Personal Interest, and micro-credentials)

(a)    You must ensure that SAC 3+ Fund Funding is only used for:

(i)      training schemes that have been approved by the applicable quality assurance body, approved by us as eligible for funding and added to the TEC Qualifications Register; and

(ii)    training schemes, including Certificates of Proficiency (COPs), Certificates of Personal Interest (CPIs) and micro-credentials, that we have agreed to fund, that meet and continue to meet the criteria for funding that we set, and that comply with any requirements that we set; and

(iii)   a COP or a CPI if the COP or CPI is a generic qualification under which to record individual programmes of study that consist of courses or unit standards selected from approved qualifications.

(b)   You must ensure that, unless otherwise agreed by us, your delivery towards training schemes (including COPs, CPIs and micro-credentials) comprise no more than 5% of the dollar value of your total delivery.

(c)    For training schemes approved for funding before 1 July 2018, we will engage with you to consider whether the training scheme meets the criteria for funding that we have set, with effect for 2020 funding and beyond.

6.6          Making changes to qualifications

(a)    Before making a minor change to a qualification, you must:

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

A.   NZQA, if you are a PTE or REAP provider; or

B.   NZQA or your Academic Board, if you are an ITP or a Wānanga; or

C.   NZVCC, if you are a University; and

(ii)    notify us of the change and provide the relevant information; and

(iii)   obtain approval from us to update the course or qualification register.

(b)   Before making a significant change to a qualification, you must:

(i)      obtain approval from the relevant quality assurance body;

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

(iii)   obtain approval from us to make the significant change.

(c)    For the purposes of this Condition:

(i)      a "minor change" to a qualification is a change that does not change the size, level, core content, or EFTS value of the qualification; and

(ii)    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.       in relation to ITPs, Wānanga and PTEs:

• the location or locations at which the qualification is delivered; or
• a change to the delivery mode of the qualification; or
• the number of courses that each student is expected to undertake to achieve the qualification; or
• pre-requisite requirements.

6.7          Assigning EFTS values to qualifications

(a)    You must:

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

A.      credits or points;

B.      learning hours; and

C.      full-time teaching weeks; and

(ii)    ensure that a qualification designed to be delivered within a year (being any 12 month period) is limited to a maximum of 1.0 EFTS, even if obtaining the qualification requires more than 120 credits, (1,200 notional hours of learning, over 34 full-time teaching weeks), unless we have approved an exception to this limit; and

(iii)   provide us with information on the three methods of calculating the EFTS value (being credits or points, learning hours, and full-time teaching weeks) when you enter qualification details on our STEO website.

(b)   For the purposes of SAC 3+ Fund Funding, 1.0 EFTS equates to a programme of study or training that is 120 credits (1,200 notional learning hours delivered over 34 teaching weeks).

(c)    If you submit for approval for SAC 3+ Fund Funding a qualification that has two or more strands, you must propose an EFTS value for the qualification that is based on the strand that contains the highest number of credits that you are approved to deliver for the qualification. A strand is a combination of courses that leads to the award of a qualification.

(d)   For the purposes of this Condition and Condition 6.8, notional learning hours comprises of learning activities leading towards achievement of programme or qualification learning outcomes (planned by you and communicated by you to the student). Learning activities include but are not limited to:

(i)      lecturer and tutor contact hours, including workshops and tutorials;

(ii)    tests and assignments;

(iii)   supervised practical placements;

(iv)  study time;

(v)    self-directed learning activities that the student is expected to engage with/participate in; and

(vi)  examination periods.

6.8          Limit on EFTS values for qualifications

You must not assign an EFTS value of more than 1.0 EFTS per year to a qualification, for which you seek approval of SAC 3+ Fund Funding, unless you have received approval from us. In approving an exception to this Condition, we will consider additional criteria, including whether you:

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

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

6.9          Assigning course classifications

You must accurately assign each of your courses to a course classification listed in the “Course Classification Prescription” of Appendix 2 of the then-current funding mechanism named Determination of Design of Funding Mechanism: Student Achievement Component – Provision at Level 3 and above on the New Zealand Qualifications Framework, available on our website.

6.10          Assigning course to a funding category

You must accurately assign each of your courses to a funding category listed in the “Funding Category tables” of Appendix 2 of the funding mechanism named Determination of Design of Funding Mechanism: Student Achievement Component – Provision at Level 3 and above on the New Zealand Qualifications Framework, available on our website.

7.1          Use of SAC 3+ Fund Funding

(a)    You must ensure that SAC 3+ Fund Funding is only used for the relevant programmes and activities at Level 3 and above on the NZQF which are specified in your approved Investment Plan (unless exempt) or equivalent arrangement. For the purposes of calculating the value of your approved SAC 3+ funded delivery, we use a metric comprising:

(i)      the number of valid domestic enrolments measured in EFTS; and

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

(b)   You may only claim SAC 3+ Fund Funding for a student who:

(i)        is and continues to be for the length of the Funding Period, a valid domestic enrolment as described in paragraph 5.1(a); and

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

7.2          Use of SAC 3+ Fund Funding for doctoral study

You must not claim SAC 3+ Fund Funding for more than a maximum EFTS value of 4 EFTS per doctorate per student for doctoral study at NZQF Level 10. If a student’s doctoral study exceeds the EFTS value of 4 EFTS, you must report the additional EFTS as non-funded delivery[¹].

7.3          Use of SAC 3+ Fund Funding for overseas travel

(a)    You must not use SAC 3+ Fund 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, you must:

(i)      submit an application to us at least two months before you advertise or publish any information about the course or accept enrolments; and

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

(iii)   receive approval from us to include overseas travel as part of a course.

(b)   For the purposes of this Condition, the appropriate quality assurance body is the NZQA if you are an ITP, Wānanga, PTE or REAP provider, and NZVCC if you are a University.

(c)    When determining whether or not overseas travel is academically essential, we will consider whether:

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

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

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

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

7.4          Provision of equipment, infrastructure and hardware

(a)    You must pay for the necessary equipment, infrastructure, and hardware required to deliver a particular course.

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

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

(ii)    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.

(c)    For the purposes of this Condition, "equipment, infrastructure, and hardware":

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

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

[¹] We expect doctorate projects to be scoped for completion within two to three years and no more than four years.

(a)    You must not charge a student (that we have determined is eligible for fees-free tertiary education), an amount of fees otherwise payable by the student if we have advised you that we will:

(i)      If you are a PTE, compensate you for that amount in respect of fees forgone as a result of this Condition; or

(ii)    If you are not a PTE, pay you that amount in respect of fees on behalf of the student.

(b)   You must work collaboratively with us to give effect to the fees-free tertiary education initiative.  In particular, you must provide information as required by us, to enable us to understand the EFTS consumption of eligible students, and in relation to fees.

(c)    Any fees in excess of the amount payable by us under paragraph (a) above may be charged by you to the student.

(a)    This Condition applies to fees and course costs (together referred to as “fees”) charged by you for a SAC 3+ Fund funded course that is part of a programme that leads to a qualification at Level 3 or above on the NZQF.  Fees associated with a particular course are subject to these Conditions if:

(i)      you are the sole source of the item to which the fee relates; and

(ii)    all Domestic Students validly enrolled in the course are required to pay the fees.

(b)     For the purposes of Condition:

(i)      “fees” includes:

A.      tuition fees; and

B.      compulsory course costs, which may only include examination fees, material charges, costs of field trips, costs associated with the compulsory purchase of equipment or books through a TEO, and other charges associated with a course. The following items are not fees:

• the cost of returning exam scripts or exam recounts;
• international handling charges for Domestic Students living overseas and studying extramurally;
• compulsory books or equipment that each student can purchase from either you or another source;
• student service levies approved by your governing body;
• accommodation charges other than those incurred on a field trip; and
• bond payments.

(ii)    “course” means a course that is:

A.      part of a training scheme (including CPIs, COPs, and micro-credentials), certificate, diploma, degree, or postgraduate qualification; and

B.      part of a programme that leads to a qualification listed at Level 3 or above on the NZQF, including professional masters programmes.

9.1          Annual Maximum Fee Movement

(a)   For 2019, the Annual Maximum Fee Movement (AMFM) is a 2% increase on the fees (ex GST) charged in 2018 for a course at Level 3 and above on the NZQF for which you receive SAC 3+ Fund Funding, and which is part of a programme leading to qualifications listed on the NZQF.

(b)   If a course spans more than one calendar year, the applicable fee is the fee applying to the course in the calendar year in which the course started. 

(c)  The fees to be used in calculating the AMFM are the highest fees charged to an intake of students.

9.2          Substitute courses

If you establish a course that is a substitute for an existing course (i.e., the course deals with the same or similar subject matter, at a same or similar level on the NZQF as an existing SAC 3+ Fund funded course), the AMFM applies to that substitute course as if it was the existing course.

9.3          Calculating the AMFM

(a)    For the purposes of determining the fee to be used in calculating the AMFM, you must provide us with information about:

(i)      the highest fee charged to a student;

(ii)    the usual fee charged to a student; and

(iii)   any discounted fees charged to a student.

(b)   If you discount your course fees for a calendar year, you must supply to us information about each discount.

(c)    You must report, in STEO, accurate information regarding the fees you are charging students.

9.4          Zero fee or low fee courses

(a)    If the fees for a SAC 3+ Fund 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 (incl GST) ($444.44 (ex GST)) per EFTS in 2018, then, for 2019, you may increase the fee up to $511.11 (incl GST) ($444.44 (ex GST)) per EFTS or increase the fees for the course by 2%, whichever is the greater.

(b)   If fees are routinely discounted (such as a low or zero-fees scheme), you must obtain permission from us to set your benchmark higher than the highest fees actually charged to an intake of students.

9.5          Exceptions to the AMFM

(a)    You may apply for an exception from the 2019 AMFM on the basis of exceptional circumstances. Any exception granted will not exceed an additional 2% over and above the permitted 2% increase. In considering exceptional circumstances, we will apply the following criteria:

(i)      you are unable to support the course(s) while remaining financially viable;

(ii)    for a course which is part of a programme leading to a qualification at Levels 3-8 on the NZQF, the completion rate for the qualification met or exceeded the median performance benchmark for that level in the previous year;

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

(iv)  not allowing the exception will prevent you 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.

An application must satisfy all criteria to gain an exception.

(b)   To apply for an exception, you must use templates specified on our website and send the application to our Sector Helpdesk by the date specified by us on our website. Any submissions from student bodies should be received no later than one week after receipt of your application.

9.6          Refund for breach

If you breach the AMFM, you must refund the student the part of the fee that was overcharged.  The refund must be given to the Ministry of Social Development (StudyLink), if the student paid for the course using the Student Loan Scheme, or to the student.

9.7          Fee setting limits for new courses

(a)    You must not set fees for a new course at Level 3 and above on the NZQF that are greater than the 75th percentile from the range of fees charged for similar courses (as determined by us).

(b)    Condition 9.7(a) does not apply to a substitute course as defined in Condition 9.2.

9.8          Exceptions to fee setting limits for new courses

(a)    You may apply for an exception from Condition 9.7(a) on the basis of exceptional circumstances.  In considering exceptional circumstances, we will only have regard to the following criteria:

(i)      The course is part of a programme of study that would be financially unviable without a higher fee.

(ii)    Where the course is part of a qualification at Levels 3 to 8 on the NZQF that has been delivered previously, the completion rate for the qualification met or exceeded the median performance benchmark for that level in the previous year.

(iii)   You can demonstrate that the course is in some way unique or special, for example, there are no or very few similar courses to compare fees with.

(iv)  The course is aligned to Government priorities as set out in the Tertiary Education Strategy.

(b)   An application must satisfy all criteria to gain an exception.

(c)    If we grant an exception in respect of a course and we specify fees you may charge, you must not charge more fees than the fees we specify for that course.

If you charge a compulsory student services fee, you must comply with the requirements set out in sections 227A and 235D of the Education Act.

You must meet any minimum performance standards specified by us, including any minimum performance standards specified in your Investment Plan.

If your organisation is a TEI, you must use the TEI Financial Monitoring electronic templates that we will provide to you and supply the following information to us:

(a)  your Annual Report prepared in accordance with section 220 of the Education Act 1989 (including your financial statements and statement of service performance prepared in accordance with the Crown Entities Act 2004), and

(b)  your 3 year financial forecast, and

(c)   any other financial report that we request.

It is a Condition of funding that you consent, for the purposes of section 37A(a) of the Statistics Act 1975, to Statistics New Zealand disclosing information to the Ministry of Education and to us from its Integrated Data Infrastructure that identifies or may identify you.

The Statistics Act 1975 does not constrain the ongoing use or sharing of your TEO-level data once it is disclosed.

If you are a TEI, you 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 with the vendor over follow-up questions and related quality assurance processes, in a timely manner, and

(c)   contributing to the cost of the agreement between us and the vendor, at a rate we determine.

(a)  You must not subcontract any of the funded activities without our prior written consent.

(b)  You:

(i)    must comply with any conditions imposed by us on the consent to subcontract, and

(ii)   must ensure that the subcontracted party does not further subcontract any functions, and

(iii)  will remain accountable to us for the use of the SAC3+ Fund Funding.

(a)  If you receive SAC3+ Fund Funding that is greater than it should have been, or that you were not entitled to receive, you must treat the amount of the overfunding as a debt due to the Crown that:

(i)    is repayable on demand, and

(ii)   may be set-off against all or any funding, or any sum of money payable by us to you.

(b)  For the purposes of this Condition, you will have received SAC3+ Fund Funding that was “greater than it should have been” if the total dollar value of the provision that was delivered by you within the funding year is less than 99% of the total value of the provision paid to you from SAC3+ Fund Funding. 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.

If we suspend or revoke some or all of your SAC3+ Fund Funding under section 159YG of the Education Act before some or all of that funding has been used or contractually committed towards the purposes for which the funding was provided, you must treat the unexpended or uncommitted portion of the funding as debt due to the Crown that is:

(a)  repayable on demand by us, and

(b)  may be set-off against all or any funding, or any sum payable by us to you.