7 July 2011
The Tertiary Education Commission has confirmed that 18 Industry Training Organisations have repaid funding totalling $4.293m. The funding recovered relates to trainees who were not actively engaged in training in 2009.
Reviews carried out in 2010 and 2011 identified a number of areas that require performance improvement. In response the TEC has modified funding rules governing ITOs’ use of funding, improved the systems that track trainees, and strengthened the monitoring processes for ITOs.
From later this year, the TEC will undertake periodic in-depth audits of ITOs to ensure they are complying with the funding rules.
The funding recovered from the 18 ITOs is in the table below. The agreed totals took into account additional training that ITOs arranged that was not funded by the TEC.
| ITO | Funding recovered
(GST excl) | % of that ITO's total
2009 funding |
| Apparel ITO | $121,004 | 13% |
| BCITO | $64,601 | 0.7% |
| Competenz | $2,244,136 | 13% |
| Equine ITO | $30,956 | 10.3% |
| ESITO | $51,966 | 1.6% |
| FITEC | $429,536 | 4.9% |
| Flooring ITO | $55,196 | 8.3% |
| Hairdressing ITO | $78,088 | 3.6% |
| Joinery ITO | $27,314 | 3.4% |
| Local Government ITO | $75,731 | 21.4% |
| Motor ITO | $13,002 | 0.1% |
| Plastics ITO | $16,384 | 1.7% |
| Plumbing ITO | $147,329 | 3.8% |
| Retail Meat | $39,466 | 6.8% |
| Seafood ITO | $518,961 | 12.5% |
| Skills Active | $19,419 | 0.4% |
| Social Services ITO | $207,778 | 11% |
| Tranzqual | $152,817 | 2.2% |
Overall, a total of $9.55m in funding was found to have been allocated to ineligible trainees in 2009. Funding was not recovered from a number of ITOs as they had arranged more training than the TEC funded them for.
The table below sets out the level of funding that related to ineligible trainees, before additional, unfunded training was taken into account.
| Organisation | Total ineligible funding before
unfunded delivery taken into account |
| Agriculture ITO | $40,028 |
| Apparel ITO | $144,356 |
| ATTTO | $735,708 |
| Boating ITO | $45,361 |
| BCITO | $64,601 |
| Building Services Contractors | $42,789 |
| Careerforce | $298,266 |
| Competenz | $2,244,136 |
| Equine ITO | $30,956 |
| ESITO | $51,966 |
| ETITO | $641,184 |
| EXITO | $87,229 |
| FITEC | $429,536 |
| Flooring | $55,196 |
| FRSITO | $15,072 |
| Hairdressing ITO | $78,089 |
| Horticulture ITO | $212,965 |
| HSI | $631,311 |
| Infratrain | $67,095 |
| Joinery ITO | $27,341 |
| Learning State | $39,294 |
| Local Government ITO | $75,731 |
| Motor ITO | $13,002 |
| NZITO | $735,180 |
| Opportunity | $151,714 |
| Pharmacy | $5,233 |
| Plastics | $36,817 |
| Plumbing | $147,329 |
| Real Estate | $10,090 |
| Retail Institute | $209,468 |
| Retail Meat | $39,466 |
| Seafood ITO | $1,251,630 |
| Skills Active | $57,366 |
| Social Services | $207,778 |
| Sports Turf | $7,370 |
| Tranqual | $619,857 |
| Total | $9,550,483 |