Funding recovery

Changes in the amount of funding payable to a TEO may be required for a number of reasons:

• The design of the funding mechanism includes an adjustment mechanism (eg. the annual Performance-Based Research Funding adjustments)
• A TEO has been paid more funding than it was due (eg. significant under-delivery)
• A TEO has been paid less funding than it was due
• An Investment Plan is significantly amended
• The TEO does not meet some or all of the conditions of funding
• The application of the Performance Consequences Framework.

Where funding is owed by us to the TEO then it will be included in the next payment due.

Where a TEO owes us funds the methods of recovery are laid out in Condition GEN015[1].

As with any business, circumstances may arise for a particular TEO that may impact on its accountability for appropriate expenditure of, and potential risks to, public funds.

Risks may arise due to financial viability issues relating to a TEO, or there may be other unforseen circumstances that may cause us concern about funding we are providing. In any such circumstances, in accordance with Condition GEN016[2], we may require information from a TEO to satisfy ourselves that public funds are not at undue risk.

• [1]

  Condition GEN015: Funding recovery methods

  Where funding is owed by a tertiary education organisation (TEO) to the Tertiary Education Commission (TEC), it will be recovered by one or more of the following methods:

  • A reduction in the next payment due
  • If the next payment due is not large enough, then the TEC will also issue a 'letter of demand' for the remaining funding to be repaid
  • Set-off against any funding or money payable to the TEO by the TEC, if the funding recoverable from the TEO has been outstanding as a debt for 90 days or more
  • In exceptional circumstances funding due may be repaid over a longer timeframe but only with the agreement of the TEC, in line with the TEC's debt management policy.
• [2]

  Condition GEN016: Funding - financial risk

  Every tertiary education organisation (TEO) to which funding is payable by the Tertiary Education Commission (TEC) must, if required on reasonable grounds, satisfy the TEC that the TEO's financial viability or other circumstances:

  • will not put funding paid to the TEO at risk
  • are not such that payments to the TEO may be unjustified
  • will not put the delivery of funded courses and qualifications to learners at risk.