Funding and payments

Funding and payments

Last updated 17 October 2017
Last updated 10/17/2017

This page provides information about how DualPathways Pilot funding is set, funding allocation, funding rates and funding calculation. There is also information about payment and funding recoveries.

The Youth Guarantee funding mechanism, issued by the Minister for Tertiary Education, Skills and Employment outlines the general form and essential components of DualPathways Pilot funding. It provides the mandate for the TEC to allocate the funding, what the funding can be used for, and details how we administer the fund.

DualPathways Pilot funding is agreed through a tertiary education provider’s Investment Plan (Plan) (i.e. it is on-Plan funding). A tertiary education provider that receives DualPathways Pilot funding is required to:

  • comply with the requirements of the Education Act 1989, and
  • comply with the funding conditions specified in its funding approval documentation.

Funding is set through the Government’s annual budget process; note that DualPathways Pilot funding will cease at the end of 2018.

We determine the appropriate amount of DualPathways Pilot funding for a tertiary education provider. 

Through each tertiary education provider’s Plan, we agree the mix of provision (MoP). This includes the qualifications that the funding can be used for, and the allocation of funding towards, and the volume of delivery expected for, each qualification.

Funding allocation

For 2017 and 2018, we are using a portion of Youth Guarantee funding for the pilot; up to 1200 learner places in 2017, and up to 1500 in 2018.

The DualPathways Pilot is funded using the equivalent full-time student (EFTS) funding model. One EFTS means the student work load that would normally be carried out by a student enrolled full-time in:

  • a single academic year, or
  • a single calendar year.

One EFTS is equivalent to 120 credits, i.e. 1200 notional hours of learning or 100% of a full-time, full-year student workload.

We will fund up to 0.35 EFTS worth of DualPathways Pilot provision per eligible student enrolled in a DualPathways Pilot programme at the tertiary education provider.

See the Eligibility page for student eligibility requirements.

When allocating future funding to currently funded DualPathways Pilot tertiary education providers, we consider:

  • whether the tertiary education provider is eligible for DualPathways Pilot funding
  • the nature of the qualifications offered by the tertiary education provider
  • the region of delivery of the tertiary education provider
  • the tertiary education provider’s use of the Literacy and Numeracy for Adults Assessment Tool with students
  • the tertiary education provider’s historical delivery volumes compared to delivery commitments
  • pastoral care arrangements for students made by the tertiary education providers
  • the tertiary education provider's past performance, including performance against our policy settings.

For further information on the process, and/or if you are a tertiary education provider that is not funded for DualPathways Pilot provision in 2017, see Funding in 2018 for further information.

Funding rates

There are two per EFTS funding rates for DualPathways Pilot provision – the trades and non-trades rates. The rates are applied to the qualification, as for Youth Guarantee.

The trades funding rate is $15,571.43 per EFTS, and applies to trades provision at level 2 and above on the New Zealand Qualifications Framework (NZQF).

The non-trades rate is $12,071.43 per EFTS and applies to non-trades provision at level 2 and above on the NZQF.

Each funding rate includes a pastoral care subsidy and travel assistance subsidy.

Funding components

Funding per EFTS

Funding per 0.35 EFTS (maximum per student)

Non-Trades

Trades

Non-Trades

Trades

Fee and course costs

$9,500.00

$13,000.00

$3,325.00

$4,550.00

Pastoral care subsidy

$1,428.57

$1,428.57

$500.00

$500.00

Tuition rate

$10,928.57

$14,428.57

$3,825.00

$5,050.00

Transport assistance subsidy

$1,142.86

$1,142.86

$400.00

$400.00

Total Rate

$12,071.43

$15,571.43

$4,225.00

$5,450.00

 

 

 

 

 Pastoral care and transport assistance subsidy

TEOs are paid pastoral care and transport assistance subsidy funding for enrolled students. The pastoral care subsidy is $500 per 0.35 EFTS, and the transport assistance subsidy is $400 per 0.35 EFTS (both pro-rated in-line with maximum EFTS utilisation for each student).

Note: We have discretion to vary the level of pastoral care and transport assistance subsidy funding where a TEO is receiving additional funding from another government source to support an STP (for example the Engineering Education to Employment fund).

Pastoral care and transport assistance subsidy funding is paid to the tertiary education provider, with our expectation that the tertiary education provider will equitably share the payments with their partner schools, based on the division of duties agreed by the partners.  

Pastoral care subsidy

Pastoral care subsidy is to be used to subsidise the costs of providing individualised pastoral care to students as well as co-ordination of students’ DualPathways to employment transition.

Pastoral care may include (but is not limited to):

  • specific cultural and learning support
  • career planning and advice
  • extra-curricular activities
  • an orientation programme
  • regular activities with other DualPathways Pilot students, and/or
  • counselling.

TEOs and schools can also use this funding to support partnerships with industry/employers.

Transport assistance subsidy

The transport assistance subsidy is expected to adequately meet the costs associated with normal student travel needs.

As the transport assistance subsidy is paid per EFTS, the tertiary education provider may cross-subsidise by using more than the proportional EFTS rate for some students (i.e. where they have particularly high travel expenses), and less than the proportional EFTS rate for others (where they do not require the full amount). There is no minimum threshold for distance the student must travel.

The tertiary education provider must reimburse each student within a reasonable time after they have incurred the cost.

The transport assistance subsidy must only be used to pay for the actual cost of transport. We expect each tertiary education provider to take an "actual and reasonable" approach to the reimbursement of student travel costs. This means if a student uses:

  • public transport, the reimbursement of the student must be based on the appropriate concession rate, and
  • private transport, we recommend that the tertiary education provider contact the New Zealand Automobile Association to establish a reimbursement rate on a case-by-case basis.    

Tertiary education provider transport costs

If the tertiary education provider funds the transport, the cost of the travel must not exceed 80 cents per km travelled.

Student transport costs

If the student funds their own transport, any transport assistance subsidy paid directly to them must only be used to cover or reimburse costs associated with travel to and from the DualPathways Pilot course.

School travel costs

If a school funds student travel to or from the DualPathways Pilot programme, we expect the tertiary education provider to share the transport assistance subsidy equitably with its partner school, based on division of duties agreed by the partners. For example, if a school contracts a bus service to transport students to the tertiary education provider, then the transport payment should go to the school.

Records

The tertiary education provider must keep records of all student travel expenses and tertiary education provider reimbursements to students.

If the tertiary education provider supplies transport to students, it must keep records of travel expenses. All travel records are to be made available to us on request. Records must include:

  • a daily travel logbook that sets out the kilometres travelled in relation to each student, and
  • the source of funding for each student’s enrolment at the tertiary education provider (for example, whether the student is enrolled in a DualPathways Pilot funded programme or otherwise).

Inland Revenue

If the tertiary education provider supplies transport, they must keep records of travel expenses in line with Inland Revenue requirements.

There may be tax implications in the way that travel reimbursements are administered. Contact Inland Revenue directly for further information.

However, when reimbursing students for travel, in general, tertiary education providers are not able to claim GST input tax on this cost because the payments are made to individuals who are not registered for GST. GST input tax can only be claimed if tertiary education provider has incurred the cost itself and can produce a GST invoice in support of the claim.

Funding calculation

Disaggregated courses must add up to the total credit value of the qualification, but like Youth Guarantee funding, DualPathways Pilot is funded at the course level.

For a trades qualification (at least 50% of the courses are classified under SAC course classification codes as C1, L1, or P1), the funding calculation is: $15,571.43 x qualification EFTS value.

For a non-trades qualification (less than 50% of the courses are classified as trades) the funding calculation is: $12,071.43 x qualification EFTS value.

The reference to a course that is classified as C1, L1, or P1 means a course that is designed for a non-degree qualification with no research requirement, including a certificate and diploma, in the disciplines set out in the table below.

Category

Relevant discipline and course classifications

C

Architecture (degree) [#02]
Engineering [#11]
Technology [#11]
Health Sciences [#13]
Vocational Training For Industry [#22.1]
Midwifery (3 year) [#27]
Speech Language Therapy [#32]
Medical Laboratory Science [#33]
Audiology [#35]

L

Agriculture (non-degree) [#01]
Horticulture (non-degree) [#01]
Osteopathy [#03.1]
Acupuncture [#03.1]
Vocational Training for Industry [#22.1]
Nursing [#24]

P

Trades 2 [#22]
Vocational Training for Industry [#22.1]

Qualification codes for NCEA

Where a trade or a non-trade programme will lead to award of the qualification, only one qualification code needs to be set up in STEO. For example, if it is a non-trade NCEA level 2 in Service Industries, only use code NCEP4N.

Where a trade programme and a non-trade programme will lead to award of the same NCEA level 2 aligned to a Vocational Pathway (for example, some students will be enrolled in 50% or more of P1, C1, L1 courses while other students will be enrolled in 50% or more of A1, J1 courses) the tertiary education provider needs to set up two separate qualification codes to reflect the trade/non-trade programmes.

This requirement extends to NCEA level 3 where it is delivered as both non-trades and trades for DualPathways Pilot.

A tertiary education provider approved by NZQA to deliver NCEA level 2 with a Vocational Pathway needs to set this up in TEC STEO using the qualification codes below.

Code     

Title

Level

Description

NCEAL1

National Certificate in Educational Achievement L1

L01

DPP Non-Trades

NCEP1T

Construction and Infrastructure Trade L2

L02

DPP Trades

NCEP1N

Construction and Infrastructure Non-trade L2

L02

DPP Non-Trades

NCEP2T

Manufacturing and Technology Trade L2

L02

DPP Trades

NCEP2N

Manufacturing and Technology Non-trade L2

L02

DPP Non-Trades

NCEP3T

Primary Industries Trade L2

L02

DPP Trades

NCEP3N

Primary Industries Non -trade L2

L02

DPP Non-Trades

NCEP4T

Service Industries Trade L2

L02

DPP Trades

NCEP4N

Service Industries Non-trade L2

L02

DPP Non-Trades

NCEP5T

Social and Community Services Trade L2

L02

DPP Trades

NCEP5N

Social and Community Services Non-trade L2

L02

DPP Non-Trades

NCEP6T

Creative Industries Trade L2

L02

YG Trades

NCEP6N

Creative Industries Non-trade L2

L02

DPP Non-Trades

NCEA3T

National Certificate in Educational Achievement Trades L3

L03

DPP Trades

NCEA3N

National Certificate in Educational Achievement Non-trade L3

L03

DPP Non-Trades

Qualification codes for qualifications delivered as both trade and non-trade

Note: Only qualifications at levels 2 and 3 can be funded at the trade rate.

Where a trade or a non-trade programme will lead to award of an NZQF qualification, enter the qualification’s NZQF qualification code in STEO.

Where NZQA has approved you to deliver both a trade and a non-trade programme (each leading to award of the same NZQF qualification), enter two qualification codes in STEO to reflect the two programmes. For example, some students will be enrolled in a programme of 50% or more of P1, C1, L1 courses while other students will be enrolled in a programme of 50% or more of A1, J1 courses.

Use the qualification code system below to enter the trade/non-trade codes in STEO.

  • “C” represents a National Certificate, whereas “Z” represents a New Zealand Certificate.
  • This is followed by the four digit NZQF code for the qualification.
  • This is followed by “T” identifying it as a trade programme (50% or more of the provision is trades), or “N” identifying it as a non-trade programme (50% or more of the provision is non-trades).

Code     

Title

Level

Description

CxxxxT

National Certificate in Xxxxx Level 3

L03

DPP Trades

CxxxxN

National Certificate in Xxxxx Level 3

L03

DPP Non-Trades

ZxxxxT

New Zealand Certificate in Xxxxx Level 3

L03

DPP Trades

ZxxxxN

New Zealand Certificate in Xxxxx Level 3

L03

DPP Non-Trades

Recognition of prior learning / prior achievement

Recognition of prior learning (RPL) relates to previous study or experience (prior achievement) relevant to a programme that a student is currently undertaking. RPL enables a student to proceed with his or her study without repeating aspects of the qualification previously studied, or re-learning skills the student has already achieved through past work or other experience.

RPL for DualPathways Pilot students

Students may have already achieved some unit or achievement standards prior to enrolment in the DualPathways Pilot. The tertiary education provider must not claim funding for these.

The tertiary education provider must recognise this prior learning and adjust the courses in the student’s programme. The tertiary education provider must not claim DualPathways Pilot funding for recognising this prior learning, or for delivering tuition where the student already has this prior learning (i.e. skills and/or knowledge).

If the student has achieved course content previously, the tertiary education provider must work out the EFTS factor of the unit or achievement standards previously credited to the student. The tertiary education provider must then subtract this from the standard course EFTS factor. The revised EFTS factor is the value that the tertiary education provider should then submit in the enrolment file of the SDR, in the FACTOR field, for that student, i.e. the tertiary education provider must:

  • ask a student to specify prior learning he or she has undertaken
  • before admitting each student into the programme, review that information as it relates to each student
  • retain documents that confirm that the student has demonstrated the required knowledge or skill, and
  • if a course contains content or learning for which a student has previously been credited:
    • calculate the EFTS factor of the units previously credited to the student, and subtract that factor from the standard course factor of the course in which the student is enrolled (“the revised EFTS factor figure”), and
    • submit the revised EFTS factor figure into the enrolment file of the SDR, in the “FACTOR” field in respect of the relevant student, and
    • if a student requires further learning to complete a qualification, ensure that the student only completes a course that he or she has not yet passed.

RPL does not include repeated learning undertaken that the applicable quality assurance body requires students to repeat periodically.

Claiming DualPathways Pilot funding

There is no funding condition that sets out how much of a course a student needs to have completed in order for a tertiary education provider to claim funding for that student. To ensure that tertiary education providers are able to claim DualPathways Pilot funding in respect of a student who has not completed a full course, tertiary education providers may claim funding for a student who has completed at least 10% (rounded up to the next whole day) or one calendar month of the course in which they have enrolled (whichever is the earlier), provided that:

  • the student meets the eligibility requirements for the DualPathways Pilot, and
  • all policy settings are complied with.

Re-enrolling a DualPathways Pilot student

Where a DualPathways Pilot student requires further study, it can only be to complete courses that they have not yet passed. This can include content not yet studied or content studied and assessed, but requiring a re-sit.

For example (with figures rounded to two decimal places):

A tertiary education provider enrols a student in courses totalling 30 credits linked to a 60 credit (0.50 EFTS) qualification. The sum of the course EFTS factors is 0.25 EFTS.

The student passes/achieves 20 credits from the 30 credit course enrolments. The tertiary education provider is funded 0.25 EFTS, for the 30 credits of courses the student was enrolled in.

The tertiary education provider re-enrols the student in a second period of study for the remaining 10 credits not yet achieved. The tertiary education provider is funded 0.08 EFTS for the 10 credits of courses the student was re-enrolled in.

The student successfully completes the courses.

The student will have received 0.33 EFTS worth of provision (40 credits), and the tertiary education provider will be funded for 0.33 EFTS delivery (0.25 + 0.08 EFTS) (assuming policy settings are met for each course enrolment).

Note: the tertiary education providers will report 0.08 EFTS (10 credits) unsuccessful course completions, and 0.25 EFTS (30 credits) successful course completions.

Calculating EFTS remaining vs consumed

To determine the exact value of the EFTS remaining for a returning student, the following formula should be used:

DualPathways Pilot programme EFTS value - (credits completed/DualPathways Pilot programme credits x DualPathways Pilot programme EFTS value) = remaining EFTS

For example:
0.25 - (20/30 x 0.25)

= 0.25 – 0.17

= 0.08 remaining EFTS

Note: You will need to ensure that when a student needs more time to complete courses in their DualPathways Pilot programme, other students are enrolled to ensure you deliver fully on your MoP EFTS commitment and consume all funding for the year. 

Success payment

We pay $4,000 per student that must be spilt 50/50 between the tertiary education provider and the school.

We make the success payment in two equal instalments.

First instalment

We pay the first instalment if the student:

  • participated in the DualPathways Pilot programme for 10 weeks or more
  • leaves the DualPathways Pilot prior to completing their DualPathways Pilot qualification
  • goes into sustainable full-time employment (at least 30 hours per week), and
  • continues to be enrolled in and working towards completing the qualification they enrolled in on the DualPathways Pilot programme, or they enrol in a tertiary qualification at the same or higher level. This requires a process to be agreed between the parties for the student to continue their education (for example, through on-line learning or block courses).

Second instalment

We pay the second instalment if the student:

  • has remained employed by the same employer or in the same work field (for example, building and construction) for at least six months, and
  • has completed the qualification or has progressed their learning and achieved at least 15 further credits towards the tertiary qualification they are enrolled in or another qualification at the same or higher level.

The success payment is to incentivise tertiary education providers and schools to form strong links with employers/industry, and generate pathways for students to progress into employment-based training, that supports employers/industry.

In order to receive the success payment, tertiary education providers will need to report, and provide evidence to us when requested to verify, that these outcomes have been achieved. This evidence will need to be provided, even if the request is made after the tertiary education provider has received the success payment.

A template for reporting student progression to employment and further tertiary education will be made available to tertiary education providers via Workspace 2.

Payment

DualPathways Pilot funding for fees and course costs, pastoral care subsidy and transport assistance subsidy is paid in monthly instalments. The payment amounts are in equal instalments from January to June, and in equal instalments from July to December.

DualPathways Pilot funding success payments (for learner progression) if any, are paid after an accurate and complete report (as determined by us) has been submitted through Workspace 2. We then need to process the report and payment. We expect to make the payment within two months of receiving an accurate and completed report.

Funding recoveries

We are required to recover funding where the results of an audit, reporting or statistical return show a tertiary education provider has under-delivered against expected performance targets as described in their agreed Investment Plan.

Recovery of DualPathways Pilot funding is calculated on dollars consumed. Funding is recovered for delivery below 100% of the tertiary education provider’s approved allocation. In practice, this means funding consumed is calculated at the programme (qualification) level by applying the applicable trade/non-trade rate to the number of EFTS delivered. This includes the pastoral care subsidy of $1,428.57 per EFTS and transport assistance subsidy of $1,142.86 per EFTS.

The difference between the total funded (dollar) amount in the approved Plan and the total delivered (dollar) amount will be recovered.

In addition, funding is recovered for reported delivery that is ineligible for funding.

For example:

A student was enrolled in a DualPathways Pilot programme comprising a 0.30 EFTS trades course, and a 0.15 EFTS non-trades course. This results in a total enrolment value of 0.35 EFTS, with 0.10 EFTS being recovered. The amount to be recovered would be calculated as follows:

To calculate value of 0.35 EFTS

0.30 EFTS at the trades rate

$4,671.43

0.05 EFTS at the non-trades rate

$603.57

Total value of 0.35 EFTS

$5,275.00

To calculate the amount to be recovered

Remaining 0.10 EFTS at the non-trades rate:

$1,207.14

Tertiary education providers are expected to maintain sufficient cash reserves so they are able to repay any recoveries due on demand.  

Recoveries are based on the December SDR and occur early in the following year.

Note: Success payments are subject to recovery if we determine at a later date that the criteria for a success payment were not met, or if a change to what the tertiary education provider previously reported means the success payment should not have been made. 

Repayment of DualPathways Pilot funding

If a tertiary education provider receives DualPathways Pilot funding that is greater than it should have been, or that it was not entitled to receive, the tertiary education provider must treat the amount of the over-funding as a debt due to the Crown that:

(a) is repayable on demand, and

(b) may be set-off against all or any funding, or any sum of money payable by us to you.

Suspending or revoking funding

Under section 159YG of the Education Act 1989 (the Act), we may suspend or revoke some or all funding given under section 159YA of the Act if we are satisfied on reasonable grounds that:

  • when measured against performance indicators, the TEO has not achieved, or is not achieving an outcome anticipated in its Investment Plan for a tertiary education programme or activity in relation to which funding has been given under section 159YA of the Act
  • the tertiary education provider has not complied, or is not complying with a condition on which funding has been given under section 159YA of the Act, or
  • the tertiary education provider has not provided, or is not providing, adequate and timely information required by the TEC or Ministry of Education under section 159YC of the Act.   

If a tertiary education provider has its funding approval revoked in accordance with section 159YG of the Education Act 1989, the unspent portion of funding is repayable to the TEC on demand. We may off-set the amount against any funding payable to the tertiary education provider.