Funding and payments

Funding and payments

Last updated 1 June 2022
Last updated 1 June 2022

How Equity funding is set and payments are made. Also includes funding calculation and funding recovery information. 

Funding

The Funding Mechanism for Equity funding is issued by the Minister of Education. This outlines the essential components of the Equity fund. It provides the mandate for us to allocate the funding and what the funding can be used for, and details how we administer the fund.

Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan (Plan). A TEO that receives Equity funding is required to:

Funding Allocation and Calculation

2023 Equity indicative allocations

The 2023 indicative allocation is our early estimate of each TEO’s ‘On-Plan’ funding that each TEO could receive for 2023 if their Investment Plan is approved for funding. We calculate the indicative allocation using a set of allocation methodologies. The indicative allocation methodologies are specific to each fund and are reviewed and revised every year to ensure alignment to funding determinations and the current tertiary environment.

2023 indicative allocations are made available through the My Allocations and Payments app on Ngā Kete on 1st June 2022. This will include additional details that provide the additional breakdown for the allocations.

The details of the 2023 indicative allocation can be found within the 2023 Global Indicative Allocations Methodology [PDF] document.

For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

Funding recoveries

If you receive Equity funding that is greater than it should have been, or that you were not entitled to receive, we will recover the extra funding.

This condition can be found in our 2022 Funding Conditions Catalogue (PDF, 1.9 Kb)

Payments

Equity funding is paid in equal monthly instalments from January to December.   

Suspending or revoking Equity funding

Under Schedule 18 Clause 16 of the Education and Training Act 2020 (the Act), we may suspend or revoke some or all funding given under section 425 of the Act if we are satisfied on reasonable grounds that:

  • the TEO has not complied, or is not complying, with a condition on which funding has been given under section 425 of the Act, or
  • the TEO has not provided, or is not providing, adequate and timely information required by the TEC or Ministry of Education under section 425 of the Act.   

If a TEO has its funding approval revoked in accordance with Schedule 18 Clause 16 of the Act, the unspent portion of funding is repayable to us (see Condition: Suspension, revocation or withdrawal of Equity funding). 

FAQ for TEOs

Question: My organisation is a transitional ITO, and I note that the industry training funding increase can be used to support our learners and employers as we transition. This seems to allow for a very broad use of this funding. Are there any learner or employer related costs that it definitely can’t cover?

Answer: We expect transitional ITOs to consider activities that will improve learner outcomes, and to work with their transition partners to ensure continuity of support, where required. If you are considering substantially changed or new activities, we encourage you to engage with your RMI to discuss this.

 

Question: We’re a transitional ITO now, but our arranging training will be transferring later in 2021. Can we use the industry training funding increase to retrospectively cover costs supporting learners and employers that we have already incurred and paid for in 2021?

Answer: No. This funding is intended for activities in 2022.

 

Question: My organisation is a PTE, do we have to do anything to receive the disabilities top up for Equity Funding

Answer: No, you do not need to do anything to receive the disabilities top up for Equity funding.  But it is important that you continue to complete your MoP and SDRs as usual. You may be asked to submit a retrospective report on how you have used the funding during the year; this report template will be uploaded to your Workspace 2.

 

Question: Is the increase in Equity funding just for 2022?

Answer: The funding provided by this initiative continues through until the introduction of the UFS from 1 January 2023.

Decisions on the final form of the UFS have not yet been made, so the specifics are not available, however changes to funding categories and rates are likely to occur when the UFS is introduced from 2023.

Further information on the details of the UFS will be available as soon as possible. For the latest information go to the unified funding system page.

 

Question: Are micro-credentials and training schemes eligible VET provision?

Answer: Yes, if they are within the scope of the VET changes to Equity funding then they are covered.