Conditions

Conditions

Last updated 18 November 2016
Last updated 11/18/2016

This page outlines the conditions for the Intensive Literacy and Numeracy (ILN) fund.

The funding mechanism for Intensive Literacy and Numeracy (PDF, 456 Kb) requires the TEC to impose a number of conditions on funding received by a tertiary education organisation (TEO).  The TEC imposes those conditions under section 159YC(2)(a) of the Education Act 1989 (the Act).

The TEC may also impose other conditions on funding that it considers are necessary to ensure that the specified outcomes in an Investment Plan that relate to the tertiary education programmes and activities in relation to which funding is being given are being achieved or will be achieved. The TEC imposes those conditions under section 159YC(2)(b) of the Act.

A TEO that receives Intensive Literacy and Numeracy funding must comply with the conditions specified in its funding approval letter, and in the Act. Those conditions are also set out below. 

The TEC also expects TEOs to comply with funding information provided as guidance. 

If the TEC is satisfied on reasonable grounds that a TEO has not complied or is not complying with the conditions on funding the TEC may revoke or suspend the funding under section 159YG of the Act. 

Legislative requirement

As specified in section 159YC(1) of the Act, it is a condition of a TEO receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that a TEO is required to supply.

In order for a TEO to be able to provide information, it must collect and retain the information specified Single Data Return (SDR) in accordance with the

 SDR Manual and its appendices.

There are additional legislative requirements for TEOs, other than tertiary education institutions (TEIs), and for TEIs.

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Conditions

If you receive Intensive Literacy and Numeracy funding you must comply with the conditions set out in your Plan funding approval letter. The conditions are also set out below:

NOTE: For your reference, you can view the archived Intensive Literacy and Numeracy conditions (PDF, 319 Kb) that applied to 2015 funding only.  

ILN001: TEO to supply information to the TEC

As specified in section 159YC(1) of the Education Act 1989, it is a condition of a TEO receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that a TEO is required by the TEC to supply.

TEO to supply reports

A TEO that receives ILN funding must submit:

a)    a progress report for the period 1 January to 31 May no later than 10 working days after 31 May;

b)    a progress report for the period 1 January to 30 September no later than eight working days after 30 September; and

c)    a final report for the period 1 January to 31 December no later than 31 January of the following year.

Each progress report must:

a)    be submitted in accordance with the template; and

b)    relate to the specific delivery commitments outlined in the TEO’s Investment Plan; and

c)    include the following information:

       (i)   the number of learners enrolled in each ILN programme of study or training; and

       (ii)   learner enrolment information, including the NSN, tuition hours delivered(actual attendance) and remaining tuition hours planned, demographic information, regional information, literacy and numeracy information, and the enrolment start and finish dates for each learner enrolled in each ILN programme of study or training during the period covered by the report.

Each final report must be submitted in accordance with the template and include the following information:

a)     the number of learners enrolled in each ILN programme of study or training; and

TEO to supply financial viability information to the TEC

The TEO must supply to the TEC information relating to the financial viability of the TEO if the TEC requests that information.

TEO to supply information to the TEC in certain situations

The TEO must notify the TEC immediately if:

a)    any record that the TEO is required to keep under the Education Act 1989 has been lost or damaged; or

b)    the TEO is no longer able to comply with a condition of funding.

PTE to supply information to the TEC in certain situations

This condition applies to a private training establishment (PTE). 

The PTE must notify the TEC immediately if:

a)   its New Zealand Qualifications Authority (NZQA) registration or accreditation is cancelled; or

b)   an Insolvency Event (see below) occurs in relation to it; or

c)   it has a Change of Control (see below); or

d)   it transfers (or agrees to transfer) all or a material part of its assets to a third party; or

e)   there is any change to the persons who make up its governing body; or

f)   it merges with or acquires any other entity or business;

g)   it has changed its name; or

h)   the location or locations at which it delivers a course or courses has changed.

Definition of Insolvency Event

"Insolvency Event" means, in relation to a PTE, the occurrence of any of the following events:

a)   that PTE ceases or threatens to cease to carry on all or any material part of its business or operations;

b)   an application is made (which is not withdrawn, stayed or dismissed within 10 Business Days of being made) to a court for an order, or an order is made, or an effective resolution is passed to place the PTE in liquidation or voluntary administration previously approved in writing by the TEC;

c)   that PTE proposes to enter into, any general assignment, arrangement, compromise or composition with or for the benefit of any of its creditors with a view to avoiding insolvency except as previously approved in writing by the TEC;

d)   an encumbrancer takes possession, or a trustee, receiver, receiver and manager, administrator, liquidator, provisional liquidator, inspector under any companies or securities legislation, or similar official, is appointed in respect of that PTE or the whole or any material part of its assets, or the board of directors request that a creditor or any other person appoint a receiver to that PTE);

e)   a distress, attachment or other execution is levied or enforced upon, or commenced against, any assets of that PTE and is not discharged or stayed within 10 Business Days, except, in each case, when the TEC is satisfied that that PTE is contesting the same in good faith by appropriate proceedings;

f)   that PTE is declared or becomes insolvent, is unable to pay its debts when they fall due, or is presumed unable to pay its debts in accordance with any applicable legislation;

g)   that PTE suspends or stops or threatens to suspend or stop payments generally or a moratorium is agreed or declared in respect of or affecting all or any material part of its indebtedness;

h)   that PTE seeks or obtains protection from its creditors under any statute or any other law;

i)   that PTE is declared to be a corporation at risk under the Corporations (Investigation and Management) Act 1989;

j)   a statutory or judicial manager is appointed over all or any of the assets of that person;

k)   any recommendation is made by the Financial Markets Authority to the Minister of the Crown who is responsible for administration of the Corporations (Investigation and Management) Act 1989 that that PTE or any associated person of that PTE be placed in statutory management under that Act;

l)   all of the directors of that PTE resign, or signal their intention to resign; or
m) anything analogous or having a substantially similar effect to any of the events specified in paragraphs (a) to (m) above happens under the laws of any applicable jurisdiction in respect of that PTE;

Definition of Change of Control

"Change of Control" means, in relation to a person (the "first person"), when a person acquires Control of the first person or when a person who controls the first person ceases to do so.

"Control" means, in relation to a person (the "first person"), the ability of another person (the "second person") to ensure that the activities and business of the first person are conducted in accordance with the wishes of the second person, whether through ownership of voting shares, contract or otherwise.  Without limitation, the direct or indirect beneficial ownership of more than 50% of the voting rights in a body corporate is deemed to constitute Control.

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ILN002: TEO to continue to meet specified criteria

The TEO must, for the length of the funding period, continue to be:

a)     an institute of technology or polytechnic (ITP); or

b)     a private training establishment (PTE); or

c)     a wānanga; or

d)     a university; or

e)     a state or state-integrated school.

ILN003: TEO to continue to meet quality assurance requirements

The TEO must, for the length of the funding period, continue to be quality assured by:

a)     the New Zealand Qualifications Authority, if the TEO is an ITP, PTE, or wānanga; or

b)     the New Zealand Vice-Chancellors’ Committee (Universities NZ), if the TEO is a university; or

c)     the Education Review Office, if the TEO is a state or state-integrated school.

ILN004: TEO to ensure learners meet criteria

The TEO must ensure that each learner that the TEO enrols in an eligible programme of study or training:

a)     is, and continues to be, a New Zealand citizen or resident; and

b)     has low skill levels in literacy, numeracy, or literacy and numeracy.

Definition of low skill level in literacy, numeracy, or literacy and numeracy

For the purposes of this condition, a learner has a low skill level in literacy, numeracy, or literacy and numeracy:

a)     if the learner has fewer than 80 credits on the New Zealand Qualifications Framework (NZQF), or

b)     if the learner has more than 80 credits on the NZQF, the learner has fewer than 12 credits in literacy and/or numeracy in unit standards and/or achievement standards, or

c)     if the learner is assessed using the Literacy and Numeracy for Adults Assessment Tool and presents at Step 1 or 2 on the Learning Progressions for reading and/or numeracy. 

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ILN005: TEO to ensure programmes meet criteria

The TEO must ensure that a programme of study or training in which an eligible learner is enrolled continues to be a programme that:

a)     provides literacy, numeracy, or literacy and numeracy study or training that is specific, rather than embedded, within the programme; and

b)     contributes to the Government’s priority for literacy and numeracy skill development, as set out in the Tertiary Education Strategy 2014-2019; and

c)     provides high-quality literacy, numeracy, or literacy and numeracy, study or training that represents value for money; and

d)     enables each learner to use literacy, numeracy, or literacy and numeracy skills to meaningfully engage in New Zealand society; and

e)     is effective in improving each learner’s literacy, numeracy, or literacy and numeracy skills; and

f)      has measurable literacy, numeracy or  literacy and numeracy outcomes; and

g)     is flexible and able to be tailored to meet the needs of an individual adult learner; and

h)     is provided by a tutor who holds an appropriate qualification (such as the National Certificate in Adult Literacy and Numeracy Education (Vocational/Workplace).

ILN006: TEO not to charge fees

The TEO must not charge a fee to a learner who is participating in an eligible programme of study or training for which the TEO receives ILN funding.

ILN007: TEO not to receive other Crown funding

The TEO must:

a)     not (without the TEC’s prior written consent) seek or obtain funding from any Crown source other than the TEC to fund a programme or training scheme funded from the ILN fund; and

b)     notify the TEC immediately if it becomes aware of any circumstances that might result in a breach of subparagraph (a) of this condition.

ILN008: TEO to use funding responsibly

The TEO must use the funding:

a)     lawfully, responsibly, and for the purposes for which it is provided; and

b)     in a manner consistent with the appropriate use of public funds.

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ILN009: TEO to repay excess funding

If the TEO receives ILN funding that is greater than it should have been, or that it was not entitled to receive, the TEO 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 the TEC to the TEO.

Funding that is greater than it should have been

For the purposes of this condition, the TEC will determine whether the TEO received funding that was greater than it should have been by:

a)     multiplying the number of places specified in the TEO's Investment Plan by 100 (the average hours required per learner); and

b)     subtracting the total number of hours delivered (based on actual attendance) in the calendar year from the figure in (a).

For example:

(Places in Investment Plan x 100 hours) – Total hours delivered = under/over-delivery (recoverable amount where there is under delivery).

ILN010: TEO to use Literacy and Numeracy for Adults Assessment Tool

The TEO use the Literacy and Numeracy for Adults Assessment Tool (including the Youth option, Te Ara Hāpara option, and Starting Points option, as appropriate) to measure each learner’s initial literacy and numeracy skill levels, and to measure his or her literacy, numeracy, or literacy and numeracy progress, as appropriate.

In order to comply with this condition, the TEO must:

a)     carry out an initial assessment of each learner's literacy and numeracy skill levels at the beginning of the programme of study or training in which the learner is enrolled; and

b)     carry out a progress assessment of each learner in either literacy, numeracy, or literacy and numeracy, as appropriate, at the end of the programme of study or training in which the learner is enrolled.

ILN011: TEO to provide specified amount of provision to learners

The TEO must deliver literacy, numeracy, or literacy and numeracy, tuition at the intensity of 100 hours over a five to 20-week period.

The total hours of literacy, numeracy, or literacy and numeracy, tuition delivered by a TEO should be at an average rate of 100 hours per learner.

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ILN012: TEO to meet benchmarks

The TEO must meet the following delivery benchmarks:

a)         by 31 May, the TEO must have delivered at least 40 percent the provision specified in its Investment Plan; and

b)         by 30 September, the TEO must have delivered at least 70 percent of the provision specified in its Investment Plan.

The TEC will monitor the TEO’s compliance with this condition through the progress reports that the TEO must supply to the TEC under condition ILN001.

ILN013: Tertiary Education Institutions to keep enrolment records

This condition applies to a Tertiary Education Institution (TEI) that receives ILN funding.

The TEI must keep accurate and up-to-date records of enrolments in accordance with any requirements developed by the TEC.

ILN014: TEO to verify learner identity

The TEO must verify the identity of each learner enrolled in an ILN programme of study or training by doing one or more of the following:

a)    confirming that all data fields match the learner’s NSN; or

b)    receiving an assertion through the Department of Internal Affairs’ RealMe® online identity verification service; or

c)     sighting the original or certified copy of a current passport; or

d)     sighting the original or certified copy of one or more of the following documents:

        i)      a birth certificate; or

        ii)     a certificate of identity; or

        iii)    a New Zealand certificate of citizenship; or

        iv)   an expired passport that has not been cancelled; or

        v)    a current New Zealand driver's licence; or

        vi)    a current New Zealand firearms' licence; or

e)     if a learner is unable to obtain a birth certificate for the purposes of (d)(i) above, contacting the TEC to confirm that a whakapapa statement signed by both the learner and a kaumātua is acceptable evidence of identity.

For the purposes of this condition a certified copy is a photocopy that has been endorsed as a true copy of the original. To be certified, the document must:

a)    be certified by an official of the issuing authority or a person authorised by law in New Zealand to certify documents, such as a Justice of the Peace, a lawyer, or a court official (Court Registrar or Deputy Registrar); and

b)    have the signature of the person certifying on each page, with the name and title of the person shown clearly below his or her signature.

ILN015: TEO to make information available to TEC and its appointed representative for the purpose of monitoring

By accepting funding from the TEC the TEO is deemed to have acknowledged that one of the TEC’s statutory functions is to monitor the performance of organisations receiving funding from the TEC, and that it is a statutory condition that the TEO must maintain certain records and supply certain information to the TEC. Accordingly, by accepting funding from the TEC the TEO is deemed to have acknowledged that the TEC needs access to certain information to enable it to undertake its monitoring activities and, as such, the TEO authorises the TEC (and any representative acting on behalf of the TEC) to have reasonable access to information needed by the TEC to undertake its review and monitoring function. This includes the TEO authorising the TEC and the TEC’s appointed representatives to have reasonable access to the TEO’s premises and any premises where the TEO’s records are kept for the purpose of enabling monitoring and review activities to be undertaken at those premises. 

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