Changes to Calendar Year baselines from January 2011

21 December 2010

At present the TEC pays most funding to providers in 12 equal monthly payments throughout the calendar year. The exception to this is where funds are paid retrospectively according to consumption.

To manage the tertiary education budget closer to the Budget appropriation (determined by fiscal year) we are introducing changes that will mean much of the funding we administer is paid in line with changes to appropriations ie. by fiscal year.

From January 2011, our payment schedule will:

• divide the fiscal year into two six month blocks (1 July – 31 December and 1 January to 30 June), and
• will result in two schedules of six equal monthly payments to TEOs, to make up the total 100% of funding during the calendar year.

The exception to this is where funds are paid retrospectively according to consumption, in those cases payment schedules will remain the same.

These changes may result in the regular monthly payments made to tertiary education organisations in the first half of the calendar year (January-June) differing slightly from the monthly payments in the second half of the calendar year (July-December). Funding pages on the TEC website have been updated to reflect these changes and a table summarising the changes (by subsector and by fund) is below.

In most cases, the percentage difference between the two schedules is minimal. Where the percentage split is not close to 50:50 over the calendar year the reasons are generally due to specific movements in the fiscal year baseline from one year to the next, or the impact of over or under allocation in 2010.

Linked with the changes to the payment schedules, you may find a small variance between the total allocated amount and the sum of all the payments. This variance will not be greater than 5c.

Table 1: Fund payment split

This table shows the percentage of funding payments that will be made January to June 2011. The remaining funding will be paid July to December.

 

	University	ITP	Wananga	PTE	CEP / REAP	School	ITO
ACE in Communities				52.20%	52.20%	52.20%
Adult Literacy Educators Grant	52.25%			50%
Gateway					50%	50%
Intensive Literacy and Numeracy	48%	48%		48%	48%	48%
Intensive Literacy and Numeracy - Embedded		69.09%
Medical Interns SSG	50%
Industry Training Fund - STMs							51.61%
ITO - Embedded Lit and Num							53.25%
ITO - Sector Leadership Component							97%*
Modern Apprenticeships							50%
Modern Apprenticeships brokerage		50%		50%	50%		50%
s.321 Grants (Dance and Drama)				50%
s.321 Grants (Literacy - Workbase)				50%
Student Achievement Component	50.01%	50.03%	49.97%	50.60%
Student Achievement Component - Youth Guarantee	50.54%	50.54%	50.54%	50.54%
Youth Guarantee Additional Payment	50%	50%	50%	50%
Grants / Other Funding - Equity Loading	50%	50%	50%	47.50%
Priorities for Focus			50%
TEIs - Adult and Community Education	50%	50%	50%
Performance Based Research Fund	50%	50%	50%	50%
Workplace Literacy		50%		50%	50%	50%	50%
Workplace Literacy - Targetted					50%

* this fund was under-allocated in 2010