Equity Funding

Conditions

As specified in section 159YC(1) of the Education Act it is a condition of a TEO receiving funding that the TEO will supply to the TEC, from time to time as required by the us, and in the form we have specify, any financial, statistical, or other information that a TEO is required to supply.

The funding mechanism for Equity Funding requires the TEC to impose conditions on Equity funding received by a TEO.  We impose those conditions under section 159YC(2)(a) of the Act.

We may also impose conditions on funding that we consider are necessary to ensure the specified outcomes in an Investment Plan relating to tertiary education programmes and activities for which funding is being given are being achieved or will be achieved. We impose those conditions under section 159YC(2)(b) of the Act.

Conditions

If you receive Equity Funding you must comply with the conditions specified in your Plan funding approval letter.  The conditions are also set out below. 

NOTE: For your reference, you can view the archived Equity Funding conditions (PDF, 248 Kb), that applied to 2015 funding only. 

EQT001:  TEO to supply information and report to the TEC

As specified in section 159YC(1) of the Education Act, it is a condition of a TEO receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that the TEO is required by the TEC to supply. 

TEO to supply enrolment information to the TEC

The TEO must:
a) supply to the TEC information about each Māori student and Pasifika student and Student with Disabilities enrolled in a course for whom the TEO receives Equity Funding, by completing the fields in the Single Data Return (SDR) in accordance with the SDR Manual and its appendices; and
b) submit the information through the SDR on or before the date specified by the TEC; and
c) submit the SDR through the Services for Tertiary Education Organisations (STEO) website.
For more information, please refer to the SDR Manual and SDR Appendices.

TEO to supply financial viability information to the TEC

The TEO must supply to the TEC information relating to the financial viability of the TEO if the TEC requests that information.

TEI to supply report on students with disabilities

This condition applies to a TEI.

The TEI must comply with any reporting requirements set by the TEC in relation to Equity Funding for students with disabilities using the TEC’s reporting template.

TEO to supply subcontracting information to the TEC

The TEO must supply to the TEC information about its subcontracting arrangements when the TEC requests that information.

TEO to supply information to the TEC in certain situations

The TEO must notify the TEC immediately if:
a) any record that the TEO is required to keep under section 159YD(1) of the Education Act 1989 has been lost or damaged; or
b) the TEO is no longer able to comply with a condition of funding.

TEI to supply financial information to the TEC

This condition applies to a TEI.

The TEI must use the TEI Financial Monitoring electronic templates to supply the following information to the TEC:
a) the TEI’s Annual Report prepared in accordance with section 220 of the Education Act 1989 (including the TEIs financial statements and statements of service performance prepared in accordance with the Crown Entities Act 2004); and 
b) the TEI’s 3 year financial forecast; and
c) any other financial report that the TEC requires.

The TEI must supply financial information to the TEC when the TEC requests that information.

PTE to supply information to the TEC in certain situations

This condition applies to a private training establishment (PTE).

The PTE must notify the TEC immediately if:
a) its New Zealand Qualifications Authority (NZQA) registration or accreditation is cancelled; or
b) an Insolvency Event (see below) occurs in relation to it; or
c) it has a Change of Control (see below); or
d) it transfers (or agrees to transfer) all or a material part of its assets to a third party; or
e) there is any change to the persons who make up its governing body; or
f) it merges with or acquires any other entity or business;
g) it has changed its name; or
h) the location or locations at which it delivers a course or courses has changed.

Definition of Insolvency Event

"Insolvency Event" means, in relation to a PTE, the occurrence of any of the following events:
a) that PTE ceases or threatens to cease to carry on all or any material part of its business or operations;
b) an application is made (which is not withdrawn, stayed or dismissed within 10 Business Days of being made) to a court for an order, or an order is made, or an effective resolution is passed to place the PTE in liquidation or voluntary administration previously approved in writing by the TEC;
c) that PTE proposes to enter into, any general assignment, arrangement, compromise or composition with or for the benefit of any of its creditors with a view to avoiding insolvency except as previously approved in writing by the TEC;
d) an encumbrancer takes possession, or a trustee, receiver, receiver and manager, administrator, liquidator, provisional liquidator, inspector under any companies or securities legislation, or similar official, is appointed in respect of that PTE or the whole or any material part of its assets, or the board of directors request that a creditor or any other person appoint a receiver to that PTE);
e) a distress, attachment or other execution is levied or enforced upon, or commenced against, any assets of that PTE and is not discharged or stayed within 10 Business Days, except, in each case, when the TEC is satisfied that that PTE is contesting the same in good faith by appropriate proceedings;
f) that PTE is declared or becomes insolvent, is unable to pay its debts when they fall due, or is presumed unable to pay its debts in accordance with any applicable legislation;
g) that PTE suspends or stops or threatens to suspend or stop payments generally or a moratorium is agreed or declared in respect of or affecting all or any material part of its indebtedness;
h) that PTE seeks or obtains protection from its creditors under any statute or any other law;
i) that PTE is declared to be a corporation at risk under the Corporations (Investigation and Management) Act 1989;
j) a statutory or judicial manager is appointed over all or any of the assets of that person;
k) any recommendation is made by the Financial Markets Authority to the Minister of the Crown who is responsible for administration of the Corporations (Investigation and Management) Act 1989 that that PTE or any associated person of that PTE be placed in statutory management under that Act;
l) all of the directors of that PTE resign, or signal their intention to resign; or
m) anything analogous or having a substantially similar effect to any of the events specified in paragraphs (a) to (m) above happens under the laws of any applicable jurisdiction in respect of that PTE;

Definition of Change of Control

"Change of Control" means, in relation to a person (the "first person"), when a person acquires Control of the first person or when a person who controls the first person ceases to do so.

"Control" means, in relation to a person (the "first person"), the ability of another person (the "second person") to ensure that the activities and business of the first person are conducted in accordance with the wishes of the second person, whether through ownership of voting shares, contract or otherwise.  Without limitation, the direct or indirect beneficial ownership of more than 50% of the voting rights in a body corporate is deemed to constitute Control.

TEO to supply performance information in relation to Equity Funding for Māori and Pasifika students to the TEC

The TEO must supply to the TEC any information that the TEC reasonably requires in order to measure the TEOs performance against any minimum performance standards set by the TEC in relation to participation and achievement for Māori and Pasifika students.

EQT002: TEO to continue to be eligible to receive Equity Funding

Equity Funding for Māori and Pasifika students

In order to continue to receive Equity Funding for Māori and Pasifika students, the TEO must, throughout the period of Equity Funding for Māori and Pasifika students, continue to:
a) be a TEO; and
b) receive SAC funding under the Determination of Design of Funding Mechanism: Student Achievement Component – Provision at Level 3 or above on the New Zealand Qualifications Framework– published on the TEC website.

TEI Equity Funding for students with disabilities

In order to continue to receive Equity Funding for students with disabilities, the TEI must, throughout the period of Equity Funding for students with disabilities, continue to:
a) be a TEI; and
b) receive SAC funding under any Determination of Design of Funding Mechanism for SAC.

For the purposes of this condition, "SAC funding under any Determination of Design of Funding Mechanism for SAC" includes SAC funding under:
a) Determination of Design of Funding Mechanism: Student Achievement Component – Qualification at Levels 1 and 2 of the New Zealand Qualifications Framework (Competitive Allocation); or
b) Determination of Design of Funding Mechanism: Student Achievement Component – Provision at Levels 1 and 2 on the New Zealand Qualifications Framework (Non-competitive allocation); or
c) Determination of Design of Funding Mechanism: Student Achievement Component – Provision at Level 3 and above on the New Zealand Qualifications Framework.

EQT003: TEO to use funding responsibly

The TEO must only use Equity Funding:
a) lawfully, responsibly, and for the purposes for which the funding is provided; and
b) in a manner consistent with the appropriate use of public funds.
Equity funding is not provided for the purposes of, and so must not be used for:
c) funding capital works or items; or
d) funding the TEO’s compliance with statutory requirements, such as Health and Safety in Employment Act 1992; or
e) reducing the tuition fees of all students.

EQT004: TEO to repay over-funding

If the TEO receives funding that is greater than the amount it should have been, or that the TEO was not entitled to receive, then the TEO must treat the amount of over-funding received as a debt due to the Crown that:
a) is repayable on demand by the TEC; and
b) may be set-off against all or any funding, or any sum of money payable by the TEC to the TEO.

EQT005: TEO to repay funding following revocation of funding approval

If the TEC, in accordance with section 159YG of the Education Act 1989, suspends or revokes some or all of the TEO's Equity Funding before some or all of that funding has been used or contractually committed towards the purposes for which it was provided, the TEO must treat the unexpended or uncommitted portion of funding as a debt due to the Crown that:
a) is repayable on demand by the TEC; and
b) may be set-off against all or any funding, or any sum of money payable by the TEC to the TEO.

EQT006: TEO to make information available to TEC and its appointed representative for the purpose of monitoring

By accepting funding from the TEC the TEO is deemed to have acknowledged that one of the TEC’s statutory functions is to monitor the performance of organisations receiving funding from the TEC, and that it is a statutory condition that the TEO must maintain certain records and supply certain information to the TEC. Accordingly, by accepting funding from the TEC the TEO is deemed to have acknowledged that the TEC needs access to certain information to enable it to undertake its monitoring activities and, as such, the TEO authorises the TEC (and any representative acting on behalf of the TEC) to have reasonable access to information needed by the TEC to undertake its review and monitoring function. This includes the TEO authorising the TEC and the TEC’s appointed representatives to have reasonable access to the TEO’s premises and any premises where the TEO’s records are kept for the purpose of enabling monitoring and review activities to be undertaken at those premises.

 

  • Last changed: 19 February 2016
  • Last verified: 19 February 2016