On this page:

• Submitting a qualification for access to DQ1-2 funding
• Detailed information requirements for qualification approval
• EFTS value of the programme
• Defining a qualification
• Qualification approval process
• Course component disaggregation
• Setting course fees
• Restrictions on the use of DQ1-2 funding
• Expiring or discontinued qualifications  

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

Before the Tertiary Education Commission (TEC) can consider funding a qualification, a TEO must first obtain approval and accreditation for a programme of study leading to the qualification from the external quality assurance body.

For DQ1-2 qualifications, this is the New Zealand Qualifications Authority (NZQA). Once you have NZQA approval, you can then seek funding approval from us.

To find a current list of qualifications and courses approved for DQ1-2 funding for your TEO, please use the qualification search or course search on DXP Ngā Kete.

For the full programme eligibility requirements, see the Funding Conditions Catalogue for the relevant year. 

Note the base funding conditions and DQ1-2 specific conditions.

Submitting a qualification for access to DQ1-2 funding

Qualification and course approval is carried out through DXP Ngā Kete. Through this application you:

• register and maintain your TEO’s qualifications and courses for funding
• update qualification, course and delivery site details, and
• submit your Single Data Return (SDR).

For technical information on using DXP Ngā Kete to obtain approval for qualification eligibility to access funding, see the DXP Ngā Kete 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, 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

• Guidance to develop your Investment Plan, including the investment priorities contained in the Plan Guidance and Supplementary Plan Guidance
• Changing your Plan
• Tertiary Education Strategy

Process for approving a qualification for funding

Qualifications listed on the NZQCF at Levels 1 and 2 may be eligible for funding under the DQ1-2 Fund.

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

Information requirements for determining eligibility 

So we can determine whether or not to approve a programme as eligible for DQ1-2 funding, submit the following information through DXP Ngā Kete:

• your provider code (EDUMIS number)
• the qualification code used on the New Zealand Qualifications and Credentials Framework – NZQA
• the qualification title
• 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:
  • credits
  • learning hours; and
  • full-time weeks
• approval documents from the relevant quality assurance body.

Detailed information requirements for qualification approval

TEO/provider code

Your TEO has a unique four-digit code assigned by the Ministry of Education, known as your EDUMIS number. A list of these codes is set out in the DXP Data Classifications Appendices to the Data Specifications for the Single Data Return.

Qualification code

This is in alphanumeric format – usually two letters followed by four numbers. Select the code from the National Qualification Code list on DXP Ngā Kete.

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

Qualification codes for trades and non-trades 

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

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

NCEA with a vocational pathway

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 Services for Tertiary Education Organisations (STEO). Use the qualification codes below.

Title of qualification

Provide the title of the qualification you are seeking funding approval for. 

Note: This is not the title of the programme approved by NZQA, unless the programme and qualification title are the same.

Duration

Provide information about the duration of the programme, including the learning hours and full-time teaching weeks 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.

Three fields for types of learning activities are provided in DXP Ngā Kete. You should break down the learning activities for the programme or qualification as accurately as possible using the guidance below, and assign hours to each. The three fields are:

• Teaching hours per week. This includes face-to-face classroom and online teaching, field trips, simulation time, tutorials, on-site assignments, assessments and examinations.
• Work experience hours per week. This includes time the learner spends practising or learning skills relevant to their programme of study in a workplace (including a teaching workplace). This may be off-site or onsite, as long as the workplace operates as a commercial enterprise.
• Self-learning study hours per week. Self-directed study means 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 the learner completes in their own time. Self-directed study does not include activities initiated by the learner.

You will need to apply a consistent rationale for the activities that constitute programme learning hours in DXP Ngā Kete, for each of the three fields above.

In addition to the teaching, work experience and self-learning hours discussed above, you must also provide:

• the total number of learning hours each week
• the total number of learning hours in each year
• the number of years it will take to complete the qualification, and
• the total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).

Full-time teaching weeks

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 provide:

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

We generally will not approve funding for a qualification that is longer than 34 weeks in a year. However, 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 programme

We require the EFTS value of each programme to determine whether it is eligible to receive DQ1-2 funding.

For conditions on assigning EFTS values to programmes, see the DQ1-2 funding conditions for the relevant year.

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

The EFTS value can be calculated using the following methods:

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

Each method 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.

Credits method

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

Calculate the EFTS value 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 method

Calculate the EFTS value 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 method

Calculate the EFTS value by dividing the length of tuition for the qualification in weeks by 34 (the standard number of weeks for a full-time equivalent teaching/tuition year). 

Example: If the qualification is delivered over 17 weeks: 17 divided by 34 = 0.5 EFTS.

Calculating EFTS value when a qualification has strands

A qualification may contain course options or electives with different credit values, called strands. Each strand is likely to have a different EFTS value.

For a qualification with two or more strands, determine the EFTS value for each strand. You must submit the EFTS value of the strand with the highest EFTS value.

To calculate the EFTS value of each strand, first calculate the EFTS factor of each course in 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 (see Example 1 below).
• 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 the credit value of the qualification (see Example 2 below).
• 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 120.

Example 1: Calculating the EFTS value of a qualification (with strands) using course credits (up to 120 credits)

In this example, Strand 2 has the highest credit value. You will therefore submit the EFTS value of the qualification as 0.625 (75 credits / 120 = 0.625 EFTS).

Example 2: Calculating course EFTS factors in a qualification (with strands) of more than 120 credits in one year 

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

In this example, the credit value of the longest strand (150 credits) is used to divide the credits, not 120.

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 above 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 above.

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 may enrol in:

• 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, this would be considered a significant change to the qualification, which would require approval from both the relevant quality assurance body and us. 

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).

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

Defining a qualification

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

• outcome of completing the qualification – eg, whether the qualification is designed to lead the learner directly into the labour market
• qualification award category – recognised qualifications have an award category code. See the DXP Data Classifications Appendices to the Data Specifications for the Single Data Return.
• level of the qualification on the NZQCF – see DXP Data Classifications Appendices
• International Standard Classification of Education (ISCED) level of the qualification – see DXP Data Classifications Appendices
• New Zealand Standard Classification of Education (NZSCED) field of study of the qualification – see DXP Data Classifications Appendices.
• whether distance learning is available. 

Qualification approval process

Once you have submitted the necessary information through DXP Ngā Kete, we will assess whether the qualification meets the eligibility criteria for DQ1-2 funding. 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 relevant year’s funding mechanism and/or funding conditions
• consider whether eligible learners who enrol 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.

Note: We will not backdate approval for access to the Student Allowance/Student Loan Scheme. Therefore, your information needs to be submitted at least four weeks before the start of tuition for the qualification. This ensures that each learner who enrols in an approved course or programme can access financial support if eligible.

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

Enrolling learners in a newly approved qualification

You can start enrolling learners in the programme leading to the new qualification, and access funding, after we have approved the MoP for funding and the qualification has been listed in your DQ1-2 MoP with regions of delivery and equivalent full-time students (EFTS).

If more than one qualification is included in the programme, enter them separately as concurrent qualifications on DXP Ngā Kete, for approval from the Customer Contact Group (CCG).

Making a change to a programme leading to the qualification

To make a change to a programme leading to a qualification, check first with NZQA (as the quality assurance body) if their approval is required for the change.

Once you have the required approval (or have confirmed approval is not needed), you need to reflect the changes in DXP Ngā Kete.

After making changes to a programme, you need to ensure it still meets the requirements of any relevant funding conditions relating to the qualification.

For conditions on making changes to qualifications, see the funding conditions for the relevant year. 

Note the base funding conditions and DQ1-2 specific conditions.

Monitoring and auditing

Each TEO should regularly review the delivery of its programmes 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).

The total learning hours you submit in DXP Ngā Kete must be the same as the total programme/qualification learning hours approved by NZQA. Your actual delivery should align with the total learning hours and activities approved by NZQA.

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, DXP Ngā Kete data and the TEO’s learner information, and compare this information to actual delivery.

Course component disaggregation

Information about courses

NZQA approves a programme leading to a qualification for your TEO. You then submit the qualification to us through DXP Ngā Kete for approval as eligible to access DQ1-2 funding. We will then assess the qualification for eligibility for funding.

Once the qualification is assessed as eligible for funding, you will need to disaggregate the qualification into component courses in DXP Ngā Kete. The following information is required:

• TEO 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
• 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.

Further information on some of the key fields above is set out in more detail below.

Delivery classification

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

New Zealand Standard Classification of Education 

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, meaning they need to reflect the largest part of the subject matter of a course.

A full list of NZSCED classifications is provided in the Data Specifications for the Single Data Return.

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

Funding category

This is an alpha-numeric code that reflects the course’s delivery classification and level of study.

The alphabetic code reflects the delivery classification and can be found in the appendix of the relevant year’s funding mechanism.

The numeric code reflects the level of study of the qualification the course is part of. See the Appendix of the relevant Delivery Classification Guide.

EFTS factor of courses

The EFTS factor of all courses leading to a qualification should total the EFTS value of the qualification.

In DXP Ngā Kete the field name is “Qualification”, which means programme leading to an award of the qualification.

We recommend courses should not have an EFTS factor of less than 0.1. If you choose to deliver a smaller course based on a single unit standard which has a course EFTS factor of less than 0.1, you are not required to further disaggregate the course in DXP Ngā Kete.

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

Once 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.

Calculating course EFTS factor

If a qualification is measured in credits, calculate the EFTS factor of a course by:

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

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 EFTS factor calculation where a qualification has more than 120 credits

If you wish to deliver a qualification in one year for which the credits exceed 120, calculate the course EFTS factor using the total number of credits, not 120.

Setting course fees

Course tuition fee

Although qualifications and their component courses funded through DQ1-2 funding are delivered at no cost to learners, this field needs to be completed in DXP Ngā Kete. The course tuition fee is made up of:

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

Compulsory course costs fee

Complete this field only if the course will also contribute to a qualification funded through DQ3-7 or DQ7-10, 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.

This ensures employers take responsibility for any training needed to mitigate health and safety risks or meet their own regulatory compliance obligations in the workplace.

Micro-credentials and certificates

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

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

See also the funding conditions for the relevant year.

Expiring or discontinued qualifications

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

More information can be found on DXP Ngā Kete.