1. The TEC will allocate additional SAC3+ funding up to the limits specified in paragraph 2 of this condition if:
a) the TEO has met, and continues to meet throughout the funding period, the minimum thresholds for organisational and educational performance for determining under which circumstances a TEO qualifies for additional funding, as described below; and
b) the value of provision measured in dollars that is specified in the TEO’s funding approval is less than the value of provision measured in dollars actually delivered by the TEO.
1. Subject to paragraph 3, the limits for additional funding are the greater of:
a) 2% of the TEO’s approved funding allocation; or
b) an additional 10 equivalent full-time students (EFTS).
2. The TEC may allocate funding above the limits set out in paragraph 2 if the TEC has, in its absolute discretion, assessed that there is sufficient SAC3+ funding available under the SAC3+ funding mechanism to do so.
Minimum thresholds for organisational performance
A. TEOs (except universities) must have an NZQA External Evaluation and Review (EER) rating of “Highly Confident”(Category 1) or “Confident” (Category 2).
B. If a TEO is established in 2015 or 2016 as the result of a merger of two or more TEOs, if the merged organisations each had an EER rating of Category 1 or 2, the TEC will accept those ratings as meeting the minimum threshold.
C. If, at the date of this letter or during the funding period, a TEO does not have an EER rating, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds until the EER rating, if any, is known.
D. If, at the date of this letter or during the funding period, a TEO is disputing its EER rating, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds until the dispute is resolved.
E. If a TEO becomes the subject of a TEC investigation in 2016, the TEC will not make any decisions as to the whether the TEO has met the minimum thresholds for organisational performance until the outcome of the investigation is known.
Minimum threshold for educational performance
The minimum threshold for educational performance is an average course completion rate of 70% or higher.