On 29 June 2020 The Ministry of Education announced a new definition for Managed Apprenticeships. The 2020 SDR manual details the updated criteria. 

2021 SDR Manual v.1.4

The new criteria includes an approval process to facilitate the agreement between Tertiary Education Organisations (TEOs) and the TEC to offer each Managed Apprenticeship programme. 

The criteria and application process is detailed on the application form. 

Managed Apprenticeship application form (DOCX 231 KB) (Word, 231 Kb) - updated 8 December 2020

The process aligns to the existing approval processes for New Zealand Apprenticeships arranged by transitional Industry Training Organisations. 

TEOs are required to obtain:

• Phase 1 pre-approval from the TEC; and
• Programme approval and accreditation from NZQA; and
• Phase 2 approval from the TEC following receipt of NZQA approval and accreditation. 

If you already have the relevant programme approval and accreditation to deliver the programme as a Managed Apprenticeship from NZQA, you may submit one application to us for approval by completing the full form.

Managed Apprenticeships – investment plans and STEO

This process does not change existing processes and requirements to obtain approval from us through investment plans and STEO, nor does it change the existing NZQA approval and accreditation processes. 

Existing Managed Apprenticeships

Approval is not required for programmes that have already been approved by us, and reported as Managed Apprenticeship delivery in the SDR.

You may like to check that any existing programmes meet the criteria contained on the application form. If programmes do not meet the criteria, they cannot be reported as Managed Apprenticeship delivery in the SDR.

The application form uses the new criteria for Managed Apprenticeships for the December 2020 SDR. The new criteria are wider than the previous SDR manual criteria for Managed Apprenticeships. This means that any programmes already reported as Managed Apprenticeship delivery should meet the criteria outlined in the form. You do not need to apply to us for approval of these existing Managed Apprenticeships. 

If you have incorrectly reported Managed Apprenticeship delivery in the SDR, you must correct it in the December 2020 SDR submission. 

Reminder – no growth of Managed Apprenticeships

While apprenticeships are being supported and promoted through a number of initiatives, the Tertiary Education Commission (TEC) does not want providers to increase the number of Managed Apprenticeships they are delivering in 2020 and planned for 2021, beyond the number they have already committed to.

Providers have advised TEC of the expected number of Managed Apprenticeships that will be delivered during 2020, we expect this number will not be exceeded in 2021.

We are currently in a transition period due to the Reform of Vocational Education (RoVE). We are actively working with transitional ITOs and providers, on a successful transition to the new structure for industry, employers and learners. During this time it is important that we maintain current arrangements, without dramatic change, while new delivery approaches, and funding is implemented. 

We do not wish to discourage learners from pursuing an apprenticeship, and encourage you to all work in your respective areas for what you are currently approved to deliver. We do not want to see providers actively recruiting apprentices away from transitional ITOs.

The condition states ‘You must only use SAC3+ Fund Funding to deliver qualifications and courses that have been approved by us’. That is, any agreement from us to fund provision for an NZQA approved programme means we will only pay funding towards components of the programme that contribute directly to a qualification.

In the rare instance that a component of an NZQA approved programme does not contribute directly to a qualification, that component cannot be entered in STEO, or funded. Please contact our Customer Contact Group about this.

An exception to the two points above is if the programme is a training scheme that we have agreed to fund. 

Training schemes

NZQA defines a training scheme as study or training that leads to an award but does not, of itself, lead to a qualification listed on the New Zealand Qualifications Framework (NZQF). A training scheme can be at any NZQF level and can provide a range of academic or vocational learning opportunities.

There is no specified credit value for a training scheme.

However, NZQA’s Guidelines to the approval of training schemes specify that a training scheme cannot comprise 40 credits or more (the minimum number of credits for an NZQF qualification) where it is substantially similar to a listed qualification, or has outcomes more suited to being listed as a qualification – see Rule 8.1 of the Training Scheme Rules 2012.

When the Education Amendment Act 2011 came into force on 31 August 2011, any existing approved courses or programmes that did not lead to a qualification listed on the NZQF were deemed to be approved training schemes. As a result the following are deemed to be training schemes, but not to the exclusion of other types of training schemes:

• Certificates of Proficiency (CoPs) and Certificates of Personal Interest (CPIs) – programmes of less than 40 credits that do not lead to a qualification and are delivered by institutes of technology and polytechnics (ITPs).
• Micro-credentials – refer to NZQA’s website for information on micro-credentials.
  If you are seeking Micro-credentials funding approval or exception to fee limit from TEC, please go to our Micro-credentials funding and fees page.

A TEO approved to receive SAC level 3 and above funding may request to deliver alternative or additional qualifications and/or short learning packages (including training schemes, micro-credentials, certificates of proficiency) than those in its Investment Plan.

In the case of private training establishments (PTEs) the qualifications and/or short learning packages will be additional to those listed in the PTE’s mix of provision (MoP).

When submitting a new qualification or short learning package for access to funding, we recommend that you consider whether it:

• aligns with:
  • the strategic direction outlined in your organisation's Investment Plan (Plan)
  • the Tertiary Education Strategy

• meets the eligibility criteria requirements of Condition: Programmes and qualifications for SAC level 3 and above funding. Note that short learning packages must meet this condition as well as the criteria for funding training schemes below.

Resources

• Changing your Plan
• Plan Guidance (including but not limited to Part B)
• Investment Toolkit
• Our focus areas (at the top of the Home page), including the Tertiary Education Strategy
• Guidelines for increasing the delivery of funded short learning packages and guidelines for micro-credential approval

Process

When you submit the qualification/short learning packages through the STEO website, remember to provide approval documentation from the external quality assurance body. Please see the SDR Manual for more information.

Once we have received the necessary information, we will decide whether or not the qualification/short learning packages meets the eligibility criteria to access SAC level 3 and above funding, and how well it aligns to our investment priorities.  

If we approve the qualification/short learning packages as eligible for funding, we will release your MoP so you can revise and submit it to us for approval.

Criteria for funding a short learning package

Unless you have an exemption detailed in your funding confirmation letter, to be eligible for SAC level 3 and above funding a short learning package must meet all of the criteria below.

• The short learning package must:
  • have been quality assured (ie, approved) by NZQA or CUAP
  • not duplicate, on its own or in combination with other short learning package(s) /qualification(s), an existing qualification, and
  • be recognised by industry or one or more community of interest, and they must have invested in its development and/or delivery
• The short learning package outcomes must be aligned to our priorities
• Industry and learner need for the short learning package must have been clearly demonstrated
• There must be economic or social benefits to New Zealand in funding the short learning package

Shifting current funding to increase delivery of approved short learning packages

Once a TEO has obtained approval from TEC for access to funding for a short learning package, the TEO can then shift funding for its delivery from within the TEO’s current allocation. This does not require our approval as long as these guidelines (PDF 734 KB) are followed.

Enrolling learners in a newly approved qualifications or short learning packages

You can start enrolling learners in the new qualification or short learning package, and access funding:

• if you are:
  • a PTE, after the qualification/short learning package has been listed in your SAC level 3 and above MoP with regions of delivery and EFTS, or
• a TEI, after the qualification/short learning package components have been added to your SAC level 3 and above MoP with EFTS, and
• when we have approved the MoP for funding.

Note: information in this section is relevant to training schemes also.

To enable us to determine whether or not to approve a qualification as eligible for SAC level 3 and above funding, we require the following information when the qualification is submitted for approval through the STEO website:

• the provider code (EDUMIS number) of the TEO seeking the approval
• the qualification code used on the New Zealand Qualifications Framework  (NZQF), except for training schemes (which includes short awards)
• the title of the proposed qualification
• the number of learning hours each week in the qualification 
• the number of full-time teaching weeks each year required to complete the qualification
• the equivalent full-time student (EFTS) value of the qualification calculated using the following methods:
  • credits
  • learning hours
  • full-time weeks, and
• the approval documents from the relevant quality assurance body.

We will not backdate approval for access to student allowances and the Student Loan Scheme. Therefore, we require this information from you at least four weeks before the start of tuition for the qualification. This will ensure that each student who is enrolled in an approved course or programme can access financial support if eligible.

A detailed description of the required information is set out below.

TEO/Provider code

You must give us the four digit code assigned by the Ministry of Education to uniquely identify your TEO. A list of the four-digit code assigned to each TEO is set out in Appendix 1 of the SDR Manual.

Qualification code

Before we can approve a qualification as eligible for SAC level 3 and above funding, you must supply the qualification code.  The format of the qualification code is alphanumeric, usually two letters followed by four numbers.  The two letters are a standard code, for example NZ (New Zealand Certificate), ND (National Diploma), or PC (programme code – for local qualifications).

If you intend to offer a New Zealand Certificate, National Certificate or National Diploma listed on the NZQF, use the NZQF code for the qualification for all references to the qualification. 

Title of qualification

You must give us the title of the qualification(s) for which you are seeking approval for funding.

Notes:

• This does not mean the title of the programme that NZQA approved, unless the programme title and qualification title are the same.
• If the programme NZQA has approved consists of one or more qualifications listed on the NZQF plus additional credits, or NZQA has approved a training scheme, the title of the programme or training scheme used in the information for students must accurately represent it, and not imply award of a qualification, or award of a qualification listed on the NZQF, unless that is the case. See section 390 of the Education and Training Act 2020.

Duration

You must provide us with information about the duration of the programme, specifically the learning hours and full time teaching weeks.

Learning hours

NZQA defines ‘learning hours’ as all planned learning activities leading toward the achievement of programme or qualification learning outcomes.

Types of learning activities include but are not limited to:

• lecturer and tutor contact hours, including workshops and tutorials
• tests and assignments
• supervised practical placements
• study time
• self-directed learning activities that you expect the student to engage with/participate in, and
• examination periods.

The Services for Tertiary Education Organisations (STEO) website provides three fields for types of learning activities. We acknowledge that three fields is a limitation in light of the various learning activities that TEOs employ with students. However, a TEO should break down its learning activities, and enter hours in the STEO fields below as accurately as possible, based on the guidance below. The three fields are:

• teaching hours each week – include, for example, face-to-face classroom/on-line/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
• work experience hours each week – include, for example, time the student spends practising or learning skills relevant to their study programme in a workplace; this includes a teaching workplace, which may be on-site, as long as it operates as a commercial enterprise, and
• self-directed study hours each week – ‘self-directed study’ means only TEO-directed study carried out by the student; include, for example, time the student spends on off-site assignments (such as homework assignments), and TEO-directed reading and study hours, that the student must complete in their own time. Note: self-directed study does not include self-directed activities that the student initiates.

Note: A TEO will need to use a rationale applied consistently, in terms of which activities constitute what programme learning hours in STEO for each of the three fields above.

In relation to the number of learning hours in the qualification, we need all of the following information. The:

• number of teaching hours each week (see teaching hours each week above)
• number of hours each week of work experience (see work experience above)
• number of self-directed learning hours each week (see self-directed study above)
• total number of learning hours each week
• total number of learning hours in each year
• number of years it will take to complete the qualification, and
• total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).

Total learning hours in STEO must be the same as the total programme/qualification learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and the learning activities approved by NZQA. This means we expect each TEO to regularly review the delivery of its programme(s) to ensure they are ‘right sized’ for the majority of students (recognising that some students take more or fewer learning hours to achieve a qualification than others).

Note: During audits and investigations we may check whether a TEO’s delivery reflects our and NZQA’s approvals. To do this we triangulate NZQA approval documentation, STEO data, and your information for learners, and compare the information to actual delivery.

Full-time teaching week

A full-time teaching week includes the types of learning hours outlined above.

In relation to the number of teaching weeks in each year of the qualification, you must give us all of the following information. The:

• number of full-time equivalent (FTE) teaching weeks
• number of weeks of recess in each year
• total number of full-time teaching weeks and recess weeks in each year – FTE gross
• number of credits on the NZQF contained in the qualification, and
• number of credits that a student must achieve each year to complete the qualification.

We generally will not approve a qualification for funding that is longer than 34 weeks in a year, although we may fund an individual student’s enrolment for more than 1.0 EFTS in a year.  See Students wanting to accelerate their study (undertake additional learning) under Student-centred provision on the Enrolment page.

EFTS value of the qualification

We require the EFTS value of each qualification in order to determine whether a qualification is eligible to access SAC level 3 and above funding. See Condition: Assigning EFTS values to qualifications.

The EFTS value of each qualification must be specified to no more than four decimal places. The EFTS value determines the workload involved in each qualification and is required so that we can appropriately fund you to deliver the qualification.

This information must be determined using the following methods:

• credits
• learning hours, and
• full-time weeks.

Each of the three methods should produce the same result. If they do, we can be confident that a student who is studying for a qualification is undertaking a normal and reasonable workload.

Each method is set out in more detail below.

Credits

A credit measures the average amount of learning that is required to complete the qualification or part of the qualification.

The EFTS value can be calculated using the credits method by dividing the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study).

Example: If a qualification has 60 credits: 60 divided by 120 = 0.5 EFTS.

Learning hours

The EFTS value can be calculated using the learning hours method by dividing the qualification's total learning hours by 1,200 (the standard number of learning hours that equates to a full-time year of study).

Example: If the total learning hours for one semester in a qualification is 600 hours: 600 divided by 1,200 = 0.5 EFTS.

Full-time weeks

The EFTS value can be calculated using the full-time weeks method, by dividing the length of tuition for the qualification in weeks by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year).

Example: If the qualification has a length of 17 weeks: 17 divided by 34 = 0.5 EFTS. 

EFTS value when qualification has strands

A qualification may have a range of options or electives with variable credit combinations. These are called strands. Each strand is likely to have a different total EFTS value.

If a qualification has two or more strands, you should determine the EFTS value for each strand. We require the EFTS value of the strand that has the highest EFTS value for our calculations.

You must calculate the EFTS factor of each course in the strand in order to calculate the EFTS value of the strand. The EFTS factor of a course can be determined in the following ways.

• Dividing the course credits for a qualification that has up to 120 credits by 120.
• For a qualification that has more than 120 credits and we have agreed to fund more than 1 EFTS per learner per year (see Condition: Limit on EFTS values for qualifications), dividing the course credits by the credit value of the qualification.
• For a qualification that has more than 120 credits, and we have not agreed to fund more than 1 EFTS per learner per year (see Condition: Limit on EFTS values for qualifications), by dividing the course credits by 120.

Example:

In this example, if we approve the qualification for funding, it will be approved as 75 credits as this is the credit value of the longest strand.  The EFTS value of the qualification is therefore 0.625 (75 credits/120 = 0.625 EFTS). 

If an approved qualification in STEO has a value of 1.0 EFTS but more than 120 credits, the credit value of the longest strand is used to determine the course EFTS factor for each strand.  This ensures that courses common to both strands have the same EFTS factor.

Example: In this example, the credit value of 150 is used to divide the credits, not 120:

EFTS value of a doctoral programme

Ideally, the EFTS value of a doctoral programme should be no more than four EFTS. This is because we will only fund up to a maximum of four EFTS for a student’s doctoral programme (reported using Source of Funding (SoF) 01).

See Condition: Use of SAC3+ Fund Funding for doctoral study.

Integrated programmes

An integrated programme of study may lead to two qualifications, such as a double degree. For an integrated programme of study, the EFTS value is based on the total credits, less any overlap between the two qualifications.

If there are a variety of approaches, you need to negotiate the EFTS value with us.

Extra courses within a qualification

If a course within a qualification is optional, it will usually be eligible for SAC level 3 and above funding. In these circumstances, a student’s enrolment may generate more than 1 EFTS in a 12 month period.

For example, a student takes an:

• additional course in an academic year towards a qualification that requires more than one year of study, or
• optional summer school course towards the qualification.

If an extra course becomes the norm for all students undertaking a qualification, we will consider the change to be a significant change to a qualification, which requires approval from the relevant quality assurance body, and the TEC (see below).

Quality assurance requirements

See Condition: Organisation eligibility for quality assurance requirements for TEOs to be eligible to access SAC level 3 and above funding.

In addition, to be eligible for SAC level 3 and above funding, a course must be part of a programme or training scheme that has been quality assured. For universities, the quality assurance body is the Committee on University Academic Programmes (CUAP). For all other TEOs that receive SAC level 3 and above funding, it is the New Zealand Qualifications Authority (NZQA).

To determine whether to approve a qualification for SAC level 3 and above funding as part of your mix of provision in your Investment Plan we require evidence that the appropriate quality assurance body has approved the programme leading to the award of the qualification.

Under section 101 of the Education and Training Act 2020, the New Zealand Teachers Council is responsible for conducting, in conjunction with quality assurance agencies, approvals of teacher education programmes and qualifications that lead to teacher registration.

Defining a qualification

You must give us the following information that defines the qualification:

• the qualification award category (recognised qualifications have an award category code - refer to Appendix 9 of the SDR Manual)
• the International Standard Classification of Education (ISCED) level of the qualification (refer to Appendix 9 of the SDR Manual)
• the level of the qualification on the NZQF (refer to Appendix 9 of the SDR Manual)
• the outcome of completing the qualification (for example, whether the qualification is designed to lead the student directly into the labour market)
• the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual), and
• whether distance learning is available.

Concurrent qualifications

If the programme is made up of more than one qualification concurrently, you will need to provide evidence of NZQA approval for the concurrent qualification programme. It is more efficient to seek NZQA programme approval for all concurrent qualification combinations that you want to deliver, or may deliver in the future, at one time, rather than make separate applications.

Discuss with the Sector Helpdesk that the programme is for concurrent qualifications when you enter each qualification in STEO.

After the qualifications have been separately approved in STEO as eligible to access TEC funding, contact the Sector Helpdesk to request that they be made concurrent in STEO.

Making a change to a programme leading to the qualification

If you make a significant change to a programme leading to award of a qualification in STEO, you must meet the requirements of Condition: Making changes to qualifications.

In addition, see NZQA’s information about making changes to a programme leading to award of a qualification.

Before an external quality assurance body approves a programme leading to a qualification, and before we will approve a qualification as eligible to access SAC level 3 and above funding, you must disaggregate the qualification into component courses. 

You must give us all of the following information about each component course in the qualification:

• provider code
• course code
• course title
• qualification code
• course classification
• NZSCED field of study
• level of the course on the NZQF
• number of credits of the course
• funding category of the course
• EFTS factor of the course
• if the course is part of a pre-service teacher education qualification, the stage of the course
• course tuition fee (if any), including compulsory course costs
• whether the course has an internet based learning component
• whether the course is eligible for Performance Based Research Fund (PBRF)
• tuition fee that will be paid by international fee-paying students who are enrolled in the course
• whether the course has embedded literacy and numeracy skill development in the provision.

The key fields required for SDR submission are detailed below.

TEO/Provider code (INSTIT)

The four-digit code assigned by the Ministry of Education to uniquely identify each TEO.

Course code (COURSE)

The internal code for the course. The code must uniquely identify the specific course regardless of the period, location and year in which it is taught.

Course title (CTITLE)

This is the title that you will use to prescribe or publish the course.

The title of the course should indicate the content of the course as the title is used by the Ministry of Education and us to ensure that similar courses are classified in a like manner.

Qualification code (QUAL)

For information on qualification codes see Information about qualifications above.

Course classification (CLASS)

Before a qualification can be approved for SAC level 3 and above funding, we require information about the classification of each course that forms part of the qualification.  See Condition: Assigning course classifications.

You are required to classify your courses using the current 1-39 Classification Prescription available in the Course Classification Guide for 2020 (PDF 860 KB) (PDF, 860 Kb). For guidance on changes to the Course Classification Guide, please refer here.

The classification tables are included in the SAC provision at levels 3 and above on the NZQF funding mechanism (PDF 972 KB).  A summary is provided below.

• At least 90% of the content or subject matter must fit into the classification that you have assigned to a course. We have provided some additional information about the 38 course classifications in the Course Classification Guide for 2020 (PDF 860 KB) (PDF, 860 Kb). When classifying a course, you should carefully consider the notes beside each classification and the content of the course. For guidance on changes to the Course Classification Guide, please refer here.
• The classification of a course may also depend on the qualification level. 
• To ensure that each course is classified correctly, we recommend that you choose a name of a course that correctly describes the major content of the course, and contact us if you are not sure about an appropriate classification. 

Note: Courses in some disciplines are funded at different rates depending on the year of study. For example, courses at years 2 and 3 of an undergraduate Medicine degree are classified as #15. Years 4, 5 and 6, however, have a clinical training element and therefore are classified differently, as #37. A postgraduate Medicine course is classified as #15.

Postgraduate teaching qualifications

A course in a postgraduate teaching qualification should be classified as #03, unless each course in the qualification:

• is designed for students who have a pre-service teaching qualification recognised by the New Zealand Teachers Council
• contains a practical component of 50% or more at NZQF level 8 (or equivalent), that is undertaken in the early childhood, primary, or secondary sectors, and
• involves on-going expert supervision.

A course that meets these criteria may be classified as #19.1, #19.2 or #20.

New Zealand Standard Classification of Education (NZSCED)

The NZSCED is a subject-based classification system that contributes to international reporting, fees approval, and in some cases may be used to describe the mix of provision in your Investment Plan.

All courses must be classified using the NZSCED classifications on a ‘best fit’ basis according to the predominant subject matter of the course. This means that the chosen NZSCED classification reflects the largest part of the subject matter of a course.

A full list of NZSCED classifications is provided in the SDR Manual Appendices. 

For more information on NZSCED classifications, see the Education Counts website.

Level on the New Zealand Qualifications Framework (NZQFLEVEL)

This is for the level of the credits on the NZQF contained in a course or paper that contributes to the qualification.  For more information on the NZQF see the NZQA website.

Credit (CREDIT)

The number of credits on the NZQF contained in a course or paper that contributes to the qualification.

Funding category (CATEGORY)

See Condition: Assigning course to a funding category.

The funding category includes:

• an alphabetic code that relates to the course classification, and
• a numeric code that reflects the level of study.  

Alphabetic code

The alphabetic code (based on course classification) is used to record SAC level 3 and above course subjects in STEO and to determine funding. The alphabetic code is set out in the table below. 

Take care to identify the correct alphabetic code, particularly where there are multiple options (such as Vocational Training for Industry [#22.1].

Example: Courses at years 2 and 3 of an undergraduate Medicine degree are classified as #15 with an alphabetic code of T. However, a postgraduate Medicine course, also classified as #15, has the alphabetic code G.

Numeric code

The numeric code (based on the level of study of the qualification of which the course forms part) is used to determine funding. It is determined by the level of study of the qualification that the course is part of. Determine the numeric code of a course using the following table.

Example: An undergraduate medicine course is numeric code 2. A postgraduate Medicine course is numeric code 3 (if a taught course) or 4 (if research based).

Numeric code 3 - Postgraduate qualifications

The essential principle of postgraduate education is that the learning involved is at level 8 or higher on the NZQF.

A certificate or diploma can be classified as a postgraduate qualification if:

• it is built on the undergraduate degree of the same discipline and at level 8 or higher on the NZQF
• it is equivalent to the first year (Diploma) or half year (Certificate) of a master’s degree.

It is not appropriate to allocate numeric code 3 for an honours degree awarded as a result of the student's superior achievement in an undergraduate course. A qualification cannot be classified as a postgraduate programme if:

• it is the fourth year of a four-year undergraduate degree, or
• it is a graduate certificate or diploma that equates to the final year of an undergraduate degree, and is open to graduate students from a variety of disciplines.

An honours course can be categorised as postgraduate if:

• the honours programme requires admission from a completed bachelor's degree
• a student is specifically admitted into a final-year honours stream, or
• a course is specific to an honours stream.

Numeric code 4 – research-based postgraduate qualifications

The SAC level 3 and above definition for “research-based”, and therefore eligible for SAC level 3 and above numeric code 4 funding rates, is that the research component comprises at least 1.0 EFTS.  Do not confuse this with the Performance-Based Research Fund (PBRF) eligibility criteria for research degree completions, which include recognising qualifications with research components totalling 0.75 EFTS or more. 

You may allocate numeric code 4 for research-based postgraduate qualifications, including a master’s thesis/dissertation, of 1.0 EFTS or more for master's and doctoral study.

You may allocate a numeric code 4 for a research-based postgraduate qualification if the qualification:

• has an EFTS value of at least 1 EFTS. This total value may be spread over more than one year
• includes one or more courses at level 8 or higher on the NZQF that total a minimum of 1 EFTS
• requires a student, who is supervised, to produce a substantial research output that amounts to 100% of the learning and assessment for that course.

A course that is preparatory to a thesis, such as research methods, is not a postgraduate course.

Numeric code 5 - Foreign student enrolments

A foreign student enrolled in a research-based postgraduate qualification may be a valid domestic student enrolment for the purposes of SAC level 3 and above funding until 31 December 2018. Thereafter this numeric code is disestablished. See Condition: Use of SAC3+ funding for valid domestic enrolments and Student eligibility

The TEO may allocate numeric code 5 to these courses.

Professional programme variations

A professional qualification may begin with an intermediate year of study that is not classified in the same category as subsequent professional years.

For example, a professional qualification such as health sciences, fine arts, agriculture, horticulture or music combine compulsory specialist courses with optional courses from arts, science and other classifications.

A TEO should use the course classification for optional non-professional courses, rather than the classification of a programme or qualification.

EFTS factor of courses (FACTOR)

The EFTS factor of a course equates to the course size that is a portion of the total EFTS value of the programme leading to award of the qualification of which the course is part. In STEO the field name is ‘Qualification’, which means programme leading to award of the qualification.

As a guideline, we recommend that the size of the smallest course should not have an EFTS factor of less than 0.1.

Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1, we do not require you to further disaggregate the course in STEO.

You may report delivery for one qualification as one course.  However, that means that a student can only enrol in the one course (i.e. the whole programme) leading to award of the qualification.

After a programme has been disaggregated into courses and we have approved these as eligible for access to SAC level 3 and above funding, you cannot retrospectively disaggregate the programme further.

Calculation

If a qualification is measured in credits, we require the EFTS factor of a course to be calculated by:

• dividing the number of credits in the course by the total number of credits in the qualification, and
• multiplying that number by the EFTS value of the qualification. 

However, if a TEO proposes to deliver a qualification in one year for which the credits exceed 120, we require the TEO to calculate the EFTS factor for that course using the total number of credits, not 120.

The EFTS factor must be expressed to four decimal places.

Example: if a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as:

Stage of pre-service teacher education qualification (STAGE)

If the course is part of a pre-service teacher education qualification, you must also give us the stage. It contains a value to indicate the stage of the qualification to which the course contributes. 

Course tuition fee (FEE)

See Setting fees and course costs for courses.

The course tuition fee (inclusive of GST) is the standard fee that domestic students normally pay for tuition and costs associated with enrolment in the course. Importantly, the course tuition fee is net of:

• compulsory course costs (for example, administration charges, examination fees, material charges), and
• fees exempt from the Annual Maximum Fees Movement (for example, student services levies, student association fees, health fees, recognition of prior learning fees).

No fee can be charged to a student apart from compulsory course costs (below) and/or the course tuition fee and/or the compulsory student services fee.

Internet based learning indicator (INTERNET)

You must indicate whether the teaching and learning in the course is currently available (in part or as a whole) through the internet.

PBRF-eligible course indicator (PBRF Eligible)

You must indicate if the course is eligible for Performance-Based Research Fund (PBRF) funding.

A course is eligible for PBRF funding if it is wholly research-based and meets our PBRF guidelines, which are detailed in the PBRF section of this website.

Tuition fee paid by international fee-paying students (FOREIGN FEE)

The tuition fee paid by an international student who will be enrolled in the course.  

Compulsory course costs fee (CCCOSTS Fee)

See Setting fees and course costs for courses.

CCCOSTS Fee is the compulsory course costs fee of the course. Compulsory course costs include:

• administration charges
• examination fees
• other charges associated with a course or programme of study
• material charges
• costs of field trips, and
• any compulsory purchase of equipment or books through the TEO.

No fee can be charged to a student apart from compulsory course costs and/or the course tuition fee (above) and/or the compulsory student services fee. Course tuition fees and compulsory course costs fees must be approved by us before they can be charged to students.

Embedded literacy and numeracy flag (EMB LIT NUM)

You must indicate whether the course includes embedded literacy and/or numeracy provision.

A course with embedded literacy and numeracy provision will deliver deliberate teaching of literacy and numeracy skills and will be part of a programme that has:

• explicit literacy and numeracy statements, such as learning outcomes or teaching and learning statements within programme or course information
• a literacy and numeracy diagnostic assessment for each student, and
• assessment of each student's progress in literacy and numeracy skill development. 

When approving a qualification as eligible to access SAC level 3 and above funding, we will:

• check that the details of the programme leading to award of the qualification are consistent with your quality assurance approval for the programme leading to award of the qualification
• consider whether the EFTS value of the qualification is correct
• check that the course, programme and/or qualification are eligible in accordance with the funding mechanism and/or funding conditions
• consider whether a student enrolled in the qualification will be able to access a student allowance and/or the Student Loan Scheme, if the student is eligible, and
• consider whether delivery of the qualification is desirable (e.g. that another TEO is not already delivering a similar qualification in the proposed delivery location), including when it is replacing an existing, similar qualification (e.g. post Targeted Review of Qualifications).

You can use the ‘qualification search’ or ‘course search’ in the STEO website to find a current list of qualifications and courses approved for SAC level 3 and above funding.

To access SAC level 3 and above funding the qualification(s) must be included in your organisation’s approved Investment Plan (in the mix of provision) for that year. If you want to add a new qualification to your mix of provision, discuss this with your TEC Investment Manager/Advisor.

The 2023 AMFM is set at 2.75% – unless TEC approves an exception. The AMFM for 2022 was 1.7%.

The Annual Maximum Fee Movement (AMFM) policy sets limits on fees that TEOs can charge students. Its purpose is to promote affordability of study for students while allowing TEOs some flexibility in setting fees. 

The AMFM policy applies to all courses at levels 3 and above on the NZQF:

• with fees that all domestic students are required to pay, and
• that have been funded in a previous year (or years).

The AMFM also applies to courses established by a TEO in substitution for an existing course on the same or similar subject matter, at the same or similar level on the NZQF.

For more information about when a new course is considered a substitute course and the AMFM applies see Setting fees and course costs for new courses.

Note: Fee increases can only be applied annually. Courses where the AMFM was not applied the previous year are not eligible to ‘catch up’ fees in the following year.

Exceptions to the AMFM

Applications for exceptions are considered annually, in the year before the course will be delivered. 

2023 AMFM exceptions

You may apply for an AMFM exception to increase your fees by up to an additional 2.75% above the permitted AMFM. 

We may only grant an exception to the AMFM policy under exceptional circumstances.

The exception criteria are specified in The Tertiary Education (2023 Fee Regulation Settings) Notice 2022 

We will only grant an exception if all the following criteria are met:

• you are unable to support the course while remaining financially viable
• for a course at levels 3–8 on the NZQF that is part of a programme leading to a qualification, the completion rate for that qualification met or exceeded the median performance benchmark for that level in the previous year
• you can demonstrate that the course is in some way unique or special (for example, there are no local alternatives to the course available), and
• 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 current Tertiary Education Strategy. 

How to apply for an exception to the AMFM

The application process for 2023 is now open.  

Please read the exceptions information in the Applications Guidelines for Exception under AMFM Policy below AMFM exception applications for any course that starts between 1 January 2023 and 31 December 2023 must be received by email to the Customer Contact Group before 5:00pm Tuesday 30 November 2022.

Submissions from student bodies should be received no later than one week after our receipt of the TEO application.

Applications must be submitted electronically to the Customer Contact Group at customerservice@tec.govt.nz.

Applications must be made using the following forms and templates:

• Application for Exception under the AMFM Policy for 2023 – Application template (DOCX 585 KB) (Word 585KB)
• Application Guidelines for Exception under the AMFM Policy for 2023 (PDF 454 KB) (PDF 454KB)
• Application for Exception under the AMFM Policy for 2023 – Financial data template (XLSX 48 KB) (Excel 48KB)
• Application for Exception under the AMFM Policy 2023 for PTEs – Chartered accountant attestation form (DOCX 447 KB) (Word 447KB)
• Application for Exception under the AMFM Policy 2023 for TEIs – Chartered accountant attestation form (DOCX 255 KB) (Word 255KB)

Exceptions to fee limits for new courses

Fees for a new course or training scheme funded through DQ3-7 and DQ7+ must be no more than the 75th percentile from the range of fees charged for similar courses or training schemes.

In exceptional circumstances you may apply for an exception to the limit on new course fees. The exception criteria are specified in Replacement Notice – The Tertiary Education (2022 Fee Regulation Settings) Notice 2021. In determining exceptions, we consider all the following criteria:

• the TEO 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
• the course is aligned to Government’s priorities, as set out in the Tertiary Education Strategy (TES)
• the course is part of a programme of study that would be financially unviable without a higher fee, and
• where the course is part of a qualification at levels 3-8 on the NZQF that has been delivered previously, the qualification has a completion rate that meets or exceeds the median performance benchmark for that NZQF level in the previous year.

How to apply

Information about how to apply is set out in the application guidelines. Read these guidelines carefully before completing an application.

The deadlines to submit an application are:

We will advise you in writing of the outcome of your application.

Please email your completed application, using the templates below, to customerservice@tec.govt.nz

• Exception to fee limits for new course fees – Application guidelines and application assessment information (DOCX 1.3 MB)
• Exception to fee limits for new course fees – Application form (DOCX 583 KB)
• Exception to fee limits for new course fees – Financial data template (XLSX 136 KB)

Questions

If you have any questions about the application process, please email our Customer Contact Group. We encourage you to ask any questions early.

Subcontracting refers to a situation in which a TEO uses TEC funding to pay another organisation to deliver teaching or assessment on its behalf. This excludes:

• teaching and learning activities contracted to individuals or organisations that are not TEOs (for example, an employee on a fixed-term contract, an honorary staff member, or a contract for teaching and learning services with a subject-matter expert for part of the programme such as for First Aid provision)
• research activities or postgraduate research supervision, and
• learning that occurs within vocational placements such a workplace placement or practicum.

A TEO must not subcontract any SAC level 3 and above funded activities without our prior written consent. See Condition: Subcontracting.

Subcontracting can be agreed in two ways

Subcontracting can be agreed to within a TEO’s Investment Plan (Plan). The subcontracting specified in the Plan is permitted for the period of the Plan. If the Plan expires then approval needs to be obtained from us again.

Subcontracting can also be agreed outside of a Plan. Again, the subcontracting specified is permitted for the period agreed with us.

At any time, TEOs can contact us to discuss proposed subcontracting.

Subcontracting TEO obligations

As specified in section 426 of the Education and Training Act 2020, it is a condition of a TEO receiving funding under section 425 that the TEO will supply to us, from time to time as required by us, and in a form specified by us, any financial, statistical, or other information that we require the TEO to supply.

Therefore, at any time, we can request information regarding subcontracted activities from the TEO (that has subcontracted another party to carry out the activities).

In addition, a TEO that has subcontracted another party to carry out its activities:

1. must comply with any conditions imposed by us within a consent to subcontract; and
2. must ensure that the subcontracted party does not further subcontract any functions; and
3. will be accountable to us for the use of the SAC level 3 and above funding, including in respect to legislative and funding condition requirements.

See Condition: Subcontracting.

We are responsible for approving each qualification for student access to student allowances and the Student Loan Scheme. A qualification must be approved for SAC level 3 and above funding before a student can access student allowances and the Student Loan Scheme in respect of the qualification. For further information on eligibility visit the Studylink website.

Before we will approve a qualification for student access to student allowances and the Student Loan Scheme, you must be one of the following:

• accredited by the relevant quality assurance body to deliver the content of a qualification
• able to show that there is an arrangement in place with an accredited TEO to deliver any content for which you do not hold accreditation.

Note: As we will not backdate approval for access to student allowances and the Student Loan Scheme, we require this information at least four weeks before the start of tuition for the qualification.  This will ensure that each student who is enrolled in an approved qualification can access financial support (if they are eligible).

Qualifications delivered full-time

We will only approve a SAC level 3 and above funded qualification for student access to both student allowances and the Student Loan Scheme if it:

• is delivered full-time
• runs for a minimum of 12 weeks, and
• has an EFTS value of at least 0.3.

Qualifications delivered part-time

A programme for a qualification of less than 0.3 EFTS is classified as part-time regardless of the number of weeks over which it is delivered. A part-time programme for a qualification is not eligible for student access to student allowances.

For a SAC level 3 and above funded part-time programme leading to award of a qualification, we will only approve student access to the Student Loan Scheme if the programme meets one of the following criteria:

• runs for 32 weeks or more and has an EFTS value of at least 0.3 EFTS, or
• runs for fewer than 32 weeks with an EFTS value of between 0.25 and 0.3 EFTS.

Loan entry threshold

The loan entry threshold (LET) is used to identify the minimum EFTS value required for a student's individual study programme to be deemed full-time. This affects student eligibility for student allowances and the Student Loan Scheme. A qualification that is not deemed to be full-time (i.e. not approved for access to student allowances or the Student Loan Scheme) can nevertheless be funded through SAC level 3 and above. 

The LET is determined by matching a range of gross weeks to a range of EFTS values.  A gross week is the total length of enrolment in a programme of study, including holiday weeks (recess).

The table below shows this relationship. Qualifications of less than 0.3 EFTS may still be eligible for student access to the Student Loan Scheme.

Student allowances – paid practical work

Students that undertake paid practical work as part of their course of study are not entitled to any student allowance payments for the week(s) they undertake that work. It is important that you discuss this with your students.

For more information on student allowance entitlements and paid practical work please see StudyLink’s website.

You can close a qualification that you no longer offer. This removes the qualification from the NZQA Register of Quality Assured Qualifications and your list of active qualifications.

The process can be found on the STEO website.