The funding mechanism for Intensive Literacy and Numeracy – ESOL (ILN – ESOL) fund requires the TEC to impose a number of conditions on funding received by a tertiary education organisation (TEO). The TEC imposes those conditions under section 159YC(2)(a) of the Education Act 1989 (the Act).
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The TEC may also impose other conditions on funding that it considers are necessary to ensure that the specified outcomes in an Investment Plan that relate to the tertiary education programmes and activities in relation to which funding is being given are being achieved or will be achieved. The TEC imposes those conditions under section 159YC(2)(b) of the Act.
A TEO that receives ILN – ESOL funding must comply with the conditions specified in its funding approval letter, and in the Act. Those conditions are also set out below.
The TEC also expects TEOs to comply with funding information provided as guidance.
If the TEC is satisfied on reasonable grounds that a TEO has not complied or is not complying with the conditions on funding the TEC may revoke or suspend the funding under section 159YG of the Act.
As specified in section 159YC(1) of the 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 a TEO is required to supply.
There are additional legislative requirements for TEOs (other than tertiary education institutions (TEIs)) and for TEIs, as outlined below. p
If you receive ILN – ESOL funding you must comply with the conditions set out in your Plan funding approval letter. The conditions are also set out below:
NOTE: For your reference, you can view the archived ILN - ESOL conditions (PDF, 196 Kb) that applied to 2015 funding only.
ESOL001: TEO to supply information to the TEC
As specified in section 159YC(1) of the Education Act 1989, 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 a TEO is required by the TEC to supply.
TEO to submit reports
The TEO must submit, in relation to the TEO’s use of funding from the INL – ESOL Fund:
a) a progress report for the period 1 January to 31 May no later than 10 working days after 31 May;
b) a progress report for the period 1 January to 30 September no later than 8 working days after 30 September; and
c) a final report for the period 1 January to 31 December no later than 31 January of the following year.
Each progress report must:
a) be submitted in accordance with the template;
b) relate to the specified outcomes outlined in the TEO’s Investment Plan; and
c) include the following information:
(i) the number of learners enrolled in each programme of study or training; and
(ii) learner enrolment information, (including Student Number (NSN), tuition hours received (actual attendance) and remaining tuition hours planned, demographic information, regional information, literacy and numeracy information, and the enrolment start and finish dates) for each learner enrolled in each ILN – ESOL programme of study or training during the period covered by the progress report.
Each final report must be submitted in accordance with the template and include the following information:
a) the number of learners enrolled in each ILN – ESOL programme of study or training; and
b) learner information, including NSN, tuition hours received (actual attendance), demographic information, regional information, literacy and numeracy information, and the enrolment start and finish dates for each learner enrolled in each ILN programme of study or training covered by the period of the report;
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.
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 the Education Act 1989 has been lost or damaged; or
b) the TEO is no longer able to comply with a condition of funding.
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 the 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 the 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 PTE is contesting the same in good faith by appropriate proceedings;
f) that the 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 the 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 the PTE seeks or obtains protection from its creditors under any statute or any other law;
i) that the 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.
ESOL002: TEO to continue to meet specified criteria
The TEO must, for the length of the funding period continue to:
a) be one of the following:
(i) a university; or
(ii) an institute of training and polytechnic (ITP); or
(iii) a wānanga; or
(iv) a PTE; or
(v) a state school or state integrated school; or
(vi) a rural education activities programme (REAP) provider; or
(vii) a community organisation; and
b) demonstrate its expertise in delivering ESOL to adult refugees and migrants.
ESOL003: TEO to continue to meet quality assurance requirements
The TEO (other than a REAP provider or community organisation) must, for the length of the funding period, continue to be quality assured by the applicable quality assurance body, being:
a) the NZQA, if the TEO is an ITP, wānanga, or PTE; or
b) the New Zealand Vice-Chancellors’ Committee, if the TEO is a university; or
c) the Education Review Office, if the TEO is a state school or state integrated school.
ESOL004: TEO to ensure that learners are eligible
The TEO must ensure that each learner who receives funding from the ILN – ESOL Fund:
a) is, and continues to be, one of the following:
(i) a refugee, protected person, or person sponsored by a refugee or protected person a refugee; or
(ii) a migrant; or
(iii) a person for whom English is his or her second language; and
b) is, and continues to be a New Zealand citizen, or resident; and
c) is 16 years of age or over; and
d) has low English language and/or literacy skills.
Definition of low skill level in literacy and/or numeracy
For the purposes of this condition, a learner has a low skill level in literacy, numeracy or literacy and numeracy:
a) if the learner has fewer than 80 credits on the New Zealand Qualifications Framework (NZQF); or
b) if the learner has more than 80 credits on the NZQF, the learner has fewer than 12 credits in literacy and numeracy unit standards/achievement standards; or
c) if the learner is assessed using the Literacy and Numeracy for Adults Assessment Tool and presents below Step 1 in reading on the Learning Progressions; or
d) if the learner is assessed using Starting Points and presents at the equivalent of below Step 1 in reading on the Learning Progressions.
ESOL005: TEO to ensure programmes are eligible
The TEO must ensure that a programme of study or training funded through the ILN – ESOL Fund:
a) has English language and literacy outcomes; and
b) is taught by appropriately qualified and experienced educators; and
c) is flexible and tailored to respond to the particular needs of adult learners (for example, provision may be delivered at off-peak times for those in employment); and
d) will deliver the specified amount of provision to learners as required by condition ESOL013.
Definition of appropriately qualified and experienced educators
An appropriately qualified and experienced educator is a person who:
a) has a specific qualification relating to teaching adults literacy and numeracy; and
b) has experience in teaching literacy and numeracy.
ESOL006: TEO not to charge fees
The TEO must not charge a fee to a learner who is participating in an eligible programme of study or training for which the TEO receives funding from the ILN – ESOL Fund.
ESOL007: TEO not to receive other Crown funding
The TEO must:
a) not (without the TEC’s prior written consent) seek or obtain funding from any Crown source (including a Crown entity or a company wholly owned by the Crown) other than the TEC to fund a programme of study or training that receives funding from the ILN – ESOL Fund; and
b) notify the TEC immediately if it becomes aware of any circumstances that might result in a breach of subparagraph (a) of this condition.
ESOL008: TEO to use funding responsibly
The TEO must use the funding:
a) lawfully, responsibly, and for the purposes for which it is provided; and
b) in a manner consistent with the appropriate use of public funds.
ESOL009: TEO to repay over-funding
If the TEO receives funding from the ILN – ESOL Fund that is greater than it should have been, or that the TEO was not entitled to receive, the TEO must treat the amount of the over-funding as a debt due to the Crown that:
a) is repayable on demand; and
b) may be set-off against all or any funding, or any sum of money payable by the TEC to the TEO.
Funding that is greater than it should have been
For the purposes of this condition, the TEC will determine whether a TEO received funding that was greater than it should have been by:
a) multiplying the number of places specified in the TEO's Investment Plan by 200 (the average number of hours required per learner); and
b) subtracting the total number of hours delivered (based on actual attendance) in the calendar year from the figure in (a).
(Places in Investment Plan x 200 hours) - total hours delivered = under/over delivery (recoverable amount where there is under delivery (if there is under deliver, the TEO was over-funded and the TEC may recover the funding provided to the TEO for the hours that were not delivered)).
ESOL010: TEO not to subcontract
The TEO must not sub-contract the delivery of a programme of study or training for which the TEO receives funding from the ILN – ESOL Fund.
ESOL011: TEO only to enrol learner for no more than five years
The TEO must only allow a learner to re-enrol in a programme of study or training that receives funding from the ILN – ESOL Fund, for a period of up to five years in total.
ESOL012: TEO to have assessment process
The TEO must have in place an effective assessment process for identifying a learner’s literacy and numeracy gains.
For the purposes of this condition, the TEOs must use the new Starting Point(s) option within the Literacy and Numeracy for Adults Assessment Tool to assess each learner’s literacy and numeracy needs, and to assess his or her progress.
ESOL013: TEO to provide specified amount of provision to learners
The TEO must:
a) deliver, on average, 200 hours of provision to each learner enrolled in a programme of study or training that receives funding from the ILN – ESOL Fund; and
b) deliver the programme over a 10 to 26 week period.
ESOL014: TEO to meet benchmarks
The TEO must meet the following delivery benchmarks:
a) by 31 May, the TEO must have delivered at least 40 percent of the provision specified in the TEO’s Investment Plan; and
b) by 30 September, the TEO must have delivered at least 70 percent of the provision specified in the TEO’s Investment Plan.
The TEC will monitor the TEO’s compliance with this condition through the progress reports that the TEO must supply to the TEC under condition ESOL001.
ESOL015: TEO to repay funding following revocation of funding approval
If the TEC, in accordance with section 159YG of the Education Act 1989, suspends ILN – ESOL Fund, before 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 the funding as a debt due to the Crown that:
a) is repayable on demand; and
b) may be set-off against all or any funding, or sum of money payable by the TEC to the TEO.
ESOL016: 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.