A tertiary education organisation (TEO) can only use DQ1-2 funding for New Zealand Qualifications and Credentials Framework (NZQCF) qualifications and their associated programmes and courses, and approved micro-credentials.

Before the Tertiary Education Commission (TEC) can consider funding a qualification, the TEO must first obtain approval and accreditation for a programme leading to the qualification from the New Zealand Qualifications Authority (NZQA). Once NZQA approval is obtained, the TEO may seek TEC funding approval.

To find a current list of qualifications and courses approved for DQ1-2 funding for your organisation, please use the qualification search or course search on the Services for Tertiary Education Organisations (STEO) website.

For the full programme eligibility requirements, see the DQ1-2 funding conditions for the relevant year.

Submitting a qualification for access to DQ1-2 funding

Qualification and course approval is carried out through our section of the Data Exchange Platform (DXP) Services for Tertiary Education Organisations (STEO) website. Through this application each TEO:

• registers and maintains qualifications and courses for funding
• updates qualification, course and delivery site details, and
• submits its Single Data Return (SDR).

For technical information on using DXP STEO to obtain approval for qualification eligibility to access funding, see the STEO User Guide.

A TEO approved to receive DQ1-2 funding may request to deliver alternative or additional qualifications to those listed in its Mix of Provision (MoP).

When submitting a new qualification for access to funding, we recommend that you:

• consider whether it meets the eligibility criteria requirements for DQ1-2 funding;
• consider whether it aligns with:
• the strategic direction outlined in your organisation’s Investment Plan (Plan), and
• the Tertiary Education Strategy; and
• complete the external quality assurance body requirements as soon as possible (this will ensure that each learner who is enrolled in the approved qualification will have timely access to the Student Allowances and Student Loan Schemes, if eligible).

Resources for submitting a qualification

Changing your Plan

Plan Guidance and Toolkit, including the investment priorities contained in the Plan Guidance and Supplementary Plan Guidance

Once we have received the necessary information, we will decide whether or not the qualification meets the eligibility criteria for DQ1-2 funding. For the full eligibility requirements see the DQ1-2 funding conditions for the relevant year.

If we approve a qualification as eligible for funding, we will release your DQ1-2 MoP, so you can revise and submit it to us for approval.

Process for approving a qualification for funding

Qualifications listed on the New Zealand Qualifications and Credentials Framework (NZQCF) at Levels 1 and 2 are eligible for funding under this fund.

Note: Some of the information in this section is also relevant to micro-credentials.

Determining eligibility

To enable us to determine whether or not to approve a qualification as eligible for DQ1-2 funding, we require the following information when the qualification is submitted for approval through the DXP STEO application:

• the provider code (EDUMIS number) of the TEO seeking the approval
• the qualification code used on the New Zealand Qualifications and Credentials Framework
• the title of the proposed qualification
• the number of learning hours per week
• the number of full-time teaching weeks per year
• the equivalent full-time student (EFTS) value of the qualification calculated using the following methods:
  • credits
  • learning hours
  • full-time weeks, and
• approval documents from the relevant quality assurance body.

When approving a qualification as eligible to access DQ1-2 funding, we will:

• check that the details of the programme leading to award of the qualification are consistent with your quality assurance approval for the programme
• consider whether the EFTS value of the qualification is correct
• check that the course, programme and/or qualification are eligible in accordance with the funding mechanism and/or funding conditions
• consider whether eligible learners enrolled in the qualification will be able to access the Student Allowance/Student Loan Scheme, and
• consider whether delivery of the qualification aligns with our investment priorities, what the stakeholder needs are, and the extent of existing similar provision.

We will not backdate approval for access to the Student Allowance/Student Loan Scheme. Therefore, we require this information at least four weeks before the start of tuition for the qualification. This will ensure that each learner who is enrolled in an approved course or programme can access financial support if eligible.

Enrolling learners in a newly approved qualification

You can start enrolling learners in the programme leading to the new qualification, and access funding, after the qualification has been:

• listed in your DQ1-2 MoP with regions of delivery and equivalent full-time students (EFTS), and
• we have approved the MoP for funding.

If more than one qualification is included in the programme, enter them separately as concurrent qualifications on STEO to seek approval from the Customer Contact Group (CCG).

A detailed description of the required information is set out below.

TEO/provider code

You must give us the four-digit code assigned by the Ministry of Education to uniquely identify your TEO. A list of the four-digit codes assigned to each TEO is set out in Appendix 1 of the SDR Manual.

Qualification code

You must supply the qualification code. The format of the qualification code is alphanumeric, usually two letters followed by four numbers. Select New Zealand Certificate/Diploma from the National Qualification List on the DXP STEO application.

If you intend to offer a New Zealand Certificate/Diploma, listed on the NZQCF, use the NZQCF code for all references to the qualification.

Qualification codes for trades and non-trades (and NCEA)

If you have NZQA programme approval for a trade programme and a non-trade programme for the same qualification (ie, one learner is enrolled on 50% of P1, C1, L1 courses while another is enrolled on 50% A1, J1), you need to set up two separate local qualification codes to reflect these different programmes.

Note: Where the qualification will only be delivered as either trade or non-trade, you only need to set up the relevant qualification code. 

A TEO approved by NZQA to deliver the National Certificate in Educational Achievement (NCEA) Level 2 with a Vocational Pathway needs to set this up in STEO. Use the qualification codes below.

Title of qualification

You must give us the title of the qualification(s) for which you are seeking approval for funding. 

Note: This does not mean the title of the programme that NZQA approved, unless the programme title and qualification title are the same.

Duration

You must provide us with information about the duration of the programme, specifically the learning hours and full-time teaching weeks as approved by NZQA.

Learning hours

NZQA defines “learning hours” as all planned learning activities leading toward the achievement of programme or qualification learning outcomes.

Types of learning activities include but are not limited to:

• lecturer and tutor contact hours, including workshops and tutorials
• tests and assignments
• supervised practical placements
• study time
• self-directed learning activities that you expect the learner to engage with/participate in, and
• examination periods.

There are three fields for types of learning activities on the DXP STEO application. We acknowledge that three fields are a limitation in light of the various learning activities that TEOs employ with learners. However, a TEO should break down its learning activities, and enter hours in the STEO fields below as accurately as possible, based on the guidance below. The three fields are:

• teaching hours each week – eg, face-to-face classroom/online/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
• work experience hours each week – eg, time the learner spends practising or learning skills relevant to their study programme in a workplace; this includes a teaching workplace, which may be on-site, as long as it operates as a commercial enterprise, and
• self-directed study hours each week – “self-directed study” means only TEO-directed study carried out by the learner; eg, time the learner spends on off-site assignments (such as homework assignments), and TEO-directed reading and study hours that the learner must complete in their own time. Note: Self-directed study does not include self-directed activities that the learner initiates.

Note: A TEO will need to use a consistently applied rationale, in terms of which activities constitute what programme learning hours in STEO for each of the three fields above.

In relation to the number of learning hours in the qualification, you must give us the:

• number of teaching hours each week (see above)
• number of hours each week of work experience (see above)
• number of self-directed learning hours each week (see above)
• total number of learning hours each week
• total number of learning hours in each year
• number of years it will take to complete the qualification, and
• total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).

Total learning hours in STEO must be the same as the total programme/qualification learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and the learning activities approved by NZQA. This means we expect each TEO to regularly review the delivery of its programme(s) to ensure they are “right sized” for most learners (recognising that some learners take more or fewer learning hours to achieve a qualification than others).

Note: During audits and investigations, we may check whether a TEO’s delivery reflects our and NZQA’s approvals. To do this we triangulate NZQA approval documentation, STEO data and your information for learners, and compare the information to actual delivery.

Full-time teaching week

A full-time teaching week includes the types of learning hours outlined above.

In relation to the number of teaching weeks in each year of the qualification, you must give us the:

• number of full-time equivalent (FTE) teaching weeks
• number of weeks of recess in each year
• total number of full-time teaching weeks and recess weeks in each year – FTE gross
• number of credits on the NZQCF contained in the qualification, and
• number of credits that a learner must achieve each year to complete the qualification.

We generally will not approve a qualification for funding that is longer than 34 weeks in a year, although we may fund an individual learner’s enrolment for more than 1.0 EFTS in a year. For more detail see “Learners wanting to accelerate their study (undertake additional learning)” under Learner-centred provision. 

EFTS value of the qualification

We require the EFTS value of each qualification to determine whether a qualification is eligible to access DQ1-2 funding.

For conditions on assigning EFTS values to qualifications, see the DQ1-2 funding conditions.

The EFTS value of each qualification must be specified to no more than four decimal places. The EFTS value determines the workload involved in each qualification and is required so that we can appropriately fund you to deliver the qualification.

This information must be determined using the following methods:

• credits
• learning hours, and
• full-time weeks.

Each of the three methods should produce the same result. If they do, we can be confident that a learner who is studying for a qualification is undertaking a normal and reasonable workload.

Each method is set out in more detail below.

Note: The New Zealand Qualifications and Credentials Framework (NZQCF) includes the New Zealand Certificate in Skills for Living for Supported Learners (Level 1) with an optional strand in Skills for Working [Ref:2853].The EFTS value of this qualification is calculated using only learning hours. We do not require convergence of the three methods below for this qualification. Note that this only applies to qualification 2853. All other qualifications, including other qualifications classified as Supported Learning, require a convergence of the three methods below.

Credits

A credit measures the average amount of learning that is required to complete the qualification or part of the qualification. 

The EFTS value can be calculated using the credits method by dividing the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study). 

Example: If a qualification has 60 credits: 60 divided by 120 = 0.5 EFTS.

Learning hours

The EFTS value can be calculated using the learning hours method by dividing the qualification's total learning hours by 1,200 (the standard number of learning hours that equates to a full-time year).

Example: If the total learning hours for one semester in a qualification is 600 hours: 600 divided by 1,200 = 0.5 EFTS.

Full-time weeks

The EFTS value can be calculated using the full-time weeks method, by dividing the length of tuition for the qualification in weeks by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year). 

Example: If the qualification has a length of 17 weeks: 17 divided by 34 = 0.5 EFTS.

EFTS value when qualification has strands

A qualification may have a range of options or electives with variable credit combinations. These are called strands. Each strand is likely to have a different total EFTS value.

If a qualification has two or more strands, you should determine the EFTS value for each strand. We require the EFTS value of the strand that has the highest EFTS value for our calculations.

You must calculate the EFTS factor of each course in the strand in order to calculate the EFTS value of the strand. The EFTS factor of a course can be determined in the following ways.

• For a qualification that has up to 120 credits, divide the course credits by 120.
• For a qualification that has more than 120 credits and we have agreed to fund more than 1 EFTS per year, divide the course credits by the credit value of the qualification.
• For a qualification that has more than 120 credits, and we have not agreed to fund more than 1 EFTS per year, divide the course credits by 120.

Example:

In this example, if we approve the qualification for funding, it will be approved as 75 credits as this is the credit value of the longest strand. The EFTS value of the qualification is therefore 0.625 (75 credits/120 = 0.625 EFTS).

If an approved qualification in STEO has a value of 1.0 EFTS but more than 120 credits, the credit value of the longest strand is used to determine the course EFTS factor for each strand. This ensures that courses common to both strands have the same EFTS factor.

Example: In this example, the credit value of 150 is used to divide the credits, not 120:

Extra courses within a qualification

If an extra course within a qualification is optional, it will usually be eligible for DQ1-2 funding. In these circumstances, a learner’s enrolment may generate more than 1 EFTS in a 12-month period.

For example, a learner takes an:

• additional course in an academic year towards a qualification that requires more than one year of study, or
• an optional summer school course towards the qualification.

If an extra course becomes the norm for all learners undertaking a qualification, we will consider the change a significant change to a qualification, which requires approval from the relevant quality assurance body and us (see below). 

Quality assurance requirements

To be eligible for DQ1-2 funding, a course must be part of a programme or micro-credential that has been quality assured. For TEOs that receive DQ1-2 funding, the quality assurance body is the New Zealand Qualifications Authority (NZQA).

To determine whether to approve a qualification for DQ1-2 funding as part of your Mix of Provision (MoP), in your Investment Plan (Plan), we require evidence that NZQA has approved the programme leading to the award of the qualification.

Under section 101 of the Education and Training Act 2020, the New Zealand Teachers Council is responsible for conducting, in conjunction with quality assurance agencies, approvals of teacher education programmes and qualifications that lead to teacher registration.

Defining a qualification

You must give us the following information that defines the qualification:

• the award category (recognised qualifications have an award qualification code – refer to Appendix 9 of the SDR Manual)
• the International Standard Classification of Education (ISCED) level, and the ISCED code of the qualification (refer to Appendix 9 of the SDR Manual)
• the level of the qualification on the NZQCF (refer to Appendix 9 of the SDR Manual)
• the outcome (ISCED destination) of completing the qualification (for example, whether the qualification is designed to lead the learner directly into the labour market)
• the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual), and
• whether distance learning is available.

Making a change to a programme leading to the qualification

To make a change to a programme leading to a qualification, you must first check with NZQA if their approval is required for the change.

Once you have the required approval, you need to reflect the changes in STEO. In doing that, you must meet the requirements of any conditions on making changes to qualifications.

For conditions on making changes to qualifications, see the DQ1-2 funding conditions.

Information about courses

NZQA approves a programme leading to a qualification, and the TEO then submits the qualification to us through STEO for approval as eligible to access DQ1-2 funding. We may then agree to fund the qualification.

Following that, the TEO must disaggregate the qualification into component courses in STEO. You must give us all of the following information about each component course in the qualification:

• provider code
• course code
• course title
• qualification code
• delivery classification
• NZSCED field of study
• level of the course on the NZQCF
• number of credits of the course
• funding category of the course
• EFTS factor of the course
• if the course is part of a pre-service teacher education qualification, the stage of the course
• the course tuition fee
• whether the course has an internet-based learning component, and
• whether the course has embedded literacy and numeracy skill development in the provision.

Some of the key fields required for SDR submission are outlined in more detail below.

Delivery classification (CLASS)

You are required to classify your courses using the current Delivery Classification Guide.

New Zealand Standard Classification of Education (NZSCED)

The NZSCED is a subject-based classification system that contributes to international reporting, and in some cases may be used to describe the mix of provision in your Plan.

All courses must be classified using the NZSCED classifications on a “best fit” basis according to the predominant subject matter of the course. This means that the chosen NZSCED classification reflects the largest part of the subject matter of a course.

A full list of NZSCED classifications is provided in the SDR Manual Appendices. 

For more information on NZSCED classifications, see New Zealand Standard Classification of Education – Education Counts.

Funding category (CATEGORY)

The funding category includes:

• an alphabetic code that relates to the delivery classification, and
• a numeric code that reflects the level of study.

Alphabetic code

The alphabetic code (based on delivery classification) is used to record DQ1-2 funded course subjects. The alphabetic code can be found in Table 2, Appendix 1 of the Delivery on the NZQCF at levels 7 (degree) and above Funding Mechanism (PDF 334 KB).

Numeric code

The numeric code is determined by the level of study of the qualification that the course is part of. Determine the numeric code of a course using the table in Appendix 1 of the Delivery Classification Guide.

EFTS factor of courses (FACTOR)

The EFTS factor of a course equates to the course size that is a portion of the total EFTS value of the qualification of which the course is part. In DXP STEO the field name is ‘Qualification’, which means programme leading to award of the qualification.

As a guideline, we recommend that the size of the smallest course should not have an EFTS factor of less than 0.1. 

Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1, we do not require the TEO to further disaggregate the course in STEO.

You may report delivery for one qualification as one course. However, that means that a learner can only enrol in the one course (ie, the whole programme) leading to award of the qualification.

After a programme has been disaggregated into courses and we have approved these as eligible for access to DQ1-2 funding, you cannot retrospectively disaggregate the programme further.

Calculation

If a qualification is measured in credits, we require the EFTS factor of a course to be calculated by:

• dividing the number of credits in the course by the total number of credits in the qualification
• multiplying that number by the EFTS value of the qualification. 

However, if you propose to deliver a qualification in one year for which the credits exceed 120, you must calculate the EFTS factor for that course using the total number of credits, not 120.

The EFTS factor must be expressed to four decimal places. 

Example: If a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as:

Course tuition fee (FEE)

Although qualifications and their component courses funded through DQ1-2 funding are fees-free to learners, this field needs to be completed. The course tuition fee is net of:

• compulsory course costs (eg, administration charges, examination fees, material charges)
• other charges such as student services levies, student association fees, health fees, record of prior learning fees.

Compulsory course costs fee (CCCOSTS Fee)

Complete this field only if the course will also contribute to a qualification funded through DQ3-7 or DQ7+, where fees may apply.

For more information on compulsory course costs, see the funding conditions for the relevant year.

Restrictions on the use of DQ1-2 funding for some types of courses

DQ1-2 funding must not be used for:

• health and safety compliance training, or
• regulatory compliance training.

Micro-credentials and certificates

Quality assured micro-credentials at Levels 1 and 2 are eligible for DQ1-2 funding if they meet the TEC funding criteria.

For more information on how to apply for micro-credentials funding, see Micro-credentials funding and fees.

Closing a qualification

You can remove a qualification that you no longer offer from your MoP and close it from DXP STEO. This removes the qualification from your list of active qualifications and the NZQA Register of Quality Assured Qualifications .

The process can be found on the STEO website .