Funding and payments

Funding and payments

Last updated 30 June 2020
Last updated 30 June 2020

This page provides information about how Intensive Literacy and Numeracy Fund - English for Speakers of Other Languages (ILN ESOL) funding is set, funding allocation, funding rate, funding calculation, payment and funding recovery.

Funding

The Specialised English for Speakers of Other Languages funding mechanism is issued by the Minister responsible for tertiary education. The funding mechanism outlines the general form and essential components of the 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 ILN ESOL funding is required to:

Funding for ILN ESOL is set through the Government’s annual budget process. We determine the appropriate amount of ILN ESOL funding for a TEO.

Through each TEO’s Plan, we agree the mix of provision (MoP). This includes the:

  • programmes that the funding can be used for
  • allocation of funding towards each programme, and
  • volume of delivery expected from each programme.

Funding allocations

2021 Intensive Literacy and Numeracy ESOL indicative allocations

Purpose of Intensive Literacy and Numeracy ESOL funding

The purpose of the Intensive Literacy and Numeracy Fund - English for Speakers of Other Languages (ILN – ESOL) is to support the intensive provision of high quality, fees-free ESOL literacy and numeracy learning opportunities, to help adult learners gain the literacy and numeracy skills needed to progress to further study or the workplace.

We fund specialised ESOL provision to:

  • Increase opportunities for adults to engage in literacy and numeracy learning, particularly migrants and refugees
  • Raise adults’ literacy and numeracy skills to help learners progress onto further study and employment
  • Improve the quality and relevance of provision, including the ability to identify learner need and learning gain

How we calculated your 2021 indicative allocation for Intensive Literacy and Numeracy ESOL

The information below provides a summary of how your indicative allocation was calculated. For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

Your prior performance information informed the calculation of your 2021 indicative allocation.

Starting point

To determine the starting point for calculating your 2021 indicative allocation we compared your 2019 actual Intensive Literacy and Numeracy - ESOL delivery with your 2020 allocation.

Note: Your 2019 actual delivery has been adjusted for any additional funding provided, funding rate increases, and significant policy changes. Your reviewed 2020 allocation includes plan changes and excludes one off adjustments. We make these adjustments to ensure we are accurately comparing your 2019 actual delivery with your 2020 allocation, in dollar terms.

If your 2019 actual delivery was below 100%, we used the lesser of either your:

  • 2019 actual delivery, or
  • 2020 allocation

If your 2019 actual delivery was 100% or above, we used your:

  • 2020 allocation

If you delivered Intensive Literacy and Numeracy ESOL for the first time in either 2019 or 2020, we used your:

  • 2020 allocation

Determining your final 2021 funding allocation

To determine your final 2021 allocation and Plan approval, we consider the following information in our assessment and/or engagements with you:

  • Your actual delivery of hours reported by you through Actual Reporting December 2019 on Workspace2; and
  • Your year-to-date 2020 delivery and any further rate increases.
  • Your 2020 allocation adjusted to include Plan changes and exclude one-off adjustments.

Funding rates for all Intensive Literacy and Numeracy provision for 2021

The funding rates per Learner-hour are:

Category Funding rate
Learner hour $19.40

Key changes to our approach for 2021

In previous years, the starting point was calculated using actual delivery and was not adjusted based on whether delivery was below or at 100%. Further plan increases or in-year adjustments were not accounted for.

We will now take into account if delivery volume was at or below 100% and will make in-year plan adjustments where necessary.

Allocation for NZIST subsidiary

Allocations for each NZIST subsidiary will be based on the 2020 data for it or for the ITP it replaces.

An indicative funding allocation may be made to a TEO that later transfer’s delivery to a transitional or other TEO. In that case, we will engage with the new TEO to transfer and adjust the allocation.

Funding rate

ILN ESOL provision is funded at a fixed rate of $18.75 per hour of face-to-face English language and literacy tuition, i.e. each hour of provision not attended by the learner is not to be reported and is not funded.

From 1 January 2020, the funding rate for ILN ESOL will increase by 1.8% to $19.09 per hour.

Note: Delivery to learners receiving less than 20, and more than 500, hours (if eligible) is also funded, not just delivery to learners receiving 20 to 500 hours. See Eligibility. (Programme eligibility).

Payments

ILN ESOL funding is paid in monthly instalments. The payment amounts are in equal instalments from January to June, and in equal instalments from July to December.