Private Training Establishments (PTEs) 2012

The 2012-13 planning environment

A capped tertiary education funding environment, with limited funding for enrolment growth will continue over the next Investment Plan (Plan) period.

PTEs will need to deliver on their core roles, meet Government expectations, and contribute to progress on achieving Tertiary Education Strategy 2010-2015 (TES) priorities.

PTEs will need also to continue to manage enrolments (funded and unfunded) in line with agreed Plans.

PTEs in receipt of Student Achievement Component (SAC) funding should not be looking to grow volume through unfunded delivery and should be focusing on continuing to improve learner achievement and outcomes.

Meeting Government expectations for PTEs

The TES defines the core roles and expectations for PTEs as:

Core Roles Government Expectations
  • To offer flexible and responsive education programmes.
  • To focus on specific areas of study.
  • Enable students to complete high quality qualifications that lead to employment or higher-level education.
  • Deliver tailored learning opportunities, such as marae and iwi-based provision and Pasifika learning environments. 
  • Provide specialised qualifications and training.

PTEs make differing contributions to meet Government expectations and TES priorities, depending on their specific areas of focus and specialisation.

Plans need to demonstrate how a PTE will respond to the educational needs of its learner and other stakeholders including industry.

Most PTEs will be able to demonstrate how they will contribute to one or more of the following TES priorities:

  • Increasing the number of young people (aged under 25) achieving qualifications at level four and above, particularly degrees
  • Increasing the number of Māori students enjoying success at higher levels
  • Increasing the number of Pasifika students achieving at higher levels
  • Increasing the number of young people moving successfully from school into tertiary education
  • Improving literacy, language, and numeracy and skills outcomes from level one to three study.

PTEs should identify an appropriately challenging change path to improve performance against these priorities and learner achievement and outcomes more generally.
The TES states that a key driver to improve the value of public investment in tertiary education is to improve the educational performance for learners.

Improving educational performance

PTEs have an important role to play in raising the achievement of younger learners, Māori learners, and Pacific learners at all levels, and supporting their progression to higher levels of study. PTEs also have an important role in ensuring learners at these levels gain the right skills for employment.

PTEs in receipt of SAC funding will be expected to consider how they will improve the success of their learners and to set Plan educational performance commitments that show how they expect to improve over the Plan period. 

PTEs are responsible for tracking their achievement against Plan commitments and, where performance varies from that agreed in Plans, there should be timely discussion with the TEC about the situation.

Educational performance for SAC funding is to be measured using the four educational performance indicators of successful course completion, qualification completion, continuation and progression.

Performance-informed funding allocations

Where past educational performance is well below expected levels, PTEs are likely to receive a reduced funding allocation or not be funded at all in 2012.

If there are serious concerns about a PTE’s educational performance, the TEC may apply the Performance Consequences Framework.  Actions the TEC may take during the Plan period include making a significant amendment to a PTE’s Plan and/or suspending or revoking funding.

From 2013, where past educational performance is well below expected levels and falls below the thresholds set for SAC Performance Linked Funding, PTEs may receive a reduced funding allocation or not be funded at all.

Management of enrolments continues to be a key area of performance for PTEs and is used by the TEC in assessing Plans and determining funding.

Educational performance, along with a successful track record with TES priority groups and effective management of enrolments will all be considered as significant criteria to determine whether there are opportunities to allocate additional SAC funding to PTEs.

Over-delivery

It is expected that PTEs will not place a greater fiscal burden on the Government by allowing Student Loan and Allowances access to grow through unfunded delivery.

All PTEs are expected to bring SAC enrolments to within the 103% over-delivery tolerance limit unless they have TEC’s formal agreement to provide some unfunded provision documented through their Plan. 

In line with the principles published in 2010 Plan Guidance, PTEs should note the following:

  • PTEs are not expected to grow their levels of delivery through unfunded places, and
  • PTEs are not expected to exceed agreed Plan delivery levels.

PTEs may receive a reduced funding allocation or not be funded at all in 2012  where 2010 performance shows total delivery in excess of that agreed in Plans.

PTEs with high levels of over-delivery in line with that agreed in Plans and levels of educational performance above expectations may be able to remain at similar volumes.  Where educational performance is below expectations, this will be considered by the TEC and reflected in agreed delivery levels.

Performance commitments

For PTEs, performance commitments are required against specific measures and targets decided by the TEC, related to SAC and other funding.

Some of the funds received by PTEs in 2012 will continue to be monitored using fund-specific performance indicators and minimum achievement levels determined by the TEC. The specific performance indicators and funding requirements for these funds can be seen using the following links:

When providers submit their proposed Plans, these indicators and the minimum achievement levels will be pre-loaded into the online tool.

  • Last changed: 26 May 2011
  • Last verified: 26 May 2011