Monitoring performance against Plans

TEOs are expected to manage their own performance in order to deliver on their Plan commitments.  The TEC expects to be advised of any variations to the expected performance agreed in Plans.

The TEC monitors TEOs’ performance and may take action in response to actual performance using the Performance Consequences framework. Performance consequences can be applied both during a funding period, and at the time of making a decision on future funding approval. Both good and poor performance can be considered.

The TEC will use actual performance against Plan commitments as a key indicator of how well a TEO is performing.  Performance against commitments will be key in determining how intensively the TEC engages with TEOs over Plan delivery.

Past performance against commitments may affect eligibility for future funding where new funding becomes available or when a proposed Plan is being considered for funding approval.

Poor performance against Plan commitments could result in a range of consequences being considered.

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
• financial and governance performance, and from 2012
• achievement of the performance-linked funding thresholds.