Performance Consequences Framework
The Performance Consequences Framework (the framework) has been updated for 2011. The following information is available about the framework, and the links between:
The Plan environment is based on the expectation that TEOs[1] will manage their own performance in order to deliver on their Plan commitments. It is based on a ‘no surprises’ relationship between TEOs and the TEC, whereby TEOs notify us of current or potential performance issues as soon as they become aware of them, and TEC reflects this openness and transparency in its relationships with TEOs.
We monitor TEOs’ performance. The framework can be applied both during an agreed Plan period, and at the time of funding approval taking good and poor performance into account.
The framework sets out both the process and the actions we may take in response to TEO performance.
Key performance areas that we will monitor are:
- delivery against a TEO’s SAC allocation or ITF allocation
- delivery against a TEO’s agreed SAC funded Mix of Provision
- deliverables related to on-Plan funds other than the SAC and ITF
- compliance with legislation and regulatory frameworks
- meeting conditions set out in the relevant funding mechanisms, or any specific funding conditions set by the TEC at the time of funding approval
- delivery against a TEO’s performance commitments
- achievement of the performance-linked funding thresholds.
The types of actions we may take when considering performance related to agreed outcomes include, but are not limited to:
For performance that is exceeding expectations:
- fewer terms and conditions
- funding paid in advance
- less frequent monitoring
- eligibility for future funding.
For under-performance:
- increasing the frequency of contact / monitoring / engagement with the TEO
- making a significant amendment to the TEO’s Plan
- setting conditions on funding approved for future Plans
- suspending funding
- revoking funding
- funding recovery
- considering the TEO’s past performance in future funding allocations (including any discretionary funding for which the TEO may apply).
Process
When, through discussions with the TEO or monitoring reports, the TEC becomes aware of under-performance by a TEO, we will contact the TEO about the under-performance, and the TEO will have the opportunity to respond (including by providing further evidence and/or information). Once this information has been considered, we will make a decision regarding the performance consequences to be applied.
TEOs will be given an opportunity to respond to the decision before it is finalised.
Note: this process does not apply for performance-linked funding as this is a formulaic calculation based on past performance.
For 2008 - 2010, a developmental approach was taken to performance commitments.
From 2011 onwards, achievement of performance commitments will carry more weight and performance consequences may apply to TEOs that do not meet their commitments.
From 2012, up to 5% of TEOs’ total funding at any of the specified grouped qualification level will be at risk on an annual basis irrespective of any over-delivery. Organisations’ performance in 2011 will impact their funding in 2012.
Please see the performance-linked funding page for more information.
Issues identified through the Performance Consequences Framework may also trigger use of the Interventions Framework for tertiary education institutions, and vice versa, and both frameworks may be used concurrently.
TEC has taken performance-informed decisions in our 2010-12 Plan decisions. Performance as measured by the educational performance indicators, together with TEOs' delivery against the Plan has been considered in funding allocations.
Building additional incentives for good performance into the Performance Consequences Framework will be considered alongside developments on performance-linked funding.
-
Last changed:
17 December 2010
-
Last verified:
17 December 2010