Funding and Payments

Funding and Payments

Last updated 10 September 2020
Last updated 10 September 2020

This page provides information about how Targeted Training and Apprenticeship Fund (TTAF) funding is allocated and paid.

Funding

The TTAF funding delegation (PDF, 458 Kb) is issued by the Minister responsible for tertiary education. The funding delegation outlines the general form and essential components of the fund. It provides the mandate for the TEC to allocate the funding and what the funding can be used for, and details how we administer the fund.

A tertiary education organisation (TEO) that receives TTAF funding is required to:

TEOs received funding agreements from the TEC in early July 2020, which enable us to provide you with a funding allocation and to make payments.

Payment

TTAF funding is paid to TEOs quarterly, in advance. You must sign and return your funding agreement before your first payment can be made.

Payments will be made in July (or 10 days following receipt of your signed funding agreement) and October. October payments will reflect any in-year amendments made after the August reporting.

Payments will be weighted as follows:

Provider Type July Payment October Payment
Transitional ITO 80% of the total allocation calculated under the methodology 20% of the total allocation calculated under the methodology
PTE, ITP, Wānanga, University

100% of the allocation that relates to courses that started before 1 July 2020; and

50% of the allocation that relates to courses that start on or after 1 July 2020

50% of the allocation that relates to courses that start on or after 1 July 2020

Funding allocation

Each TEOs funding allocation is provided via the “My allocations and payments” app on Ngā Kete.

TEOs will be paid for all eligible learners enrolled in TTAF eligible qualifications and programmes.

How we calculated your 2020 allocation for TTAF – Industry Training Fund funded TEOs

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

Your reported fee revenue for 2018 was used to calculate your 2020 allocation

We have used the 2018 fee revenue reported as part of your annual financial reporting. We have then applied a 2% uplift for both 2019 and 2020 to account for fees increases.

Reported fee revenue used in the allocation calculation includes the following amounts reported to TEC in 2018 year end financial reporting:

  • employer training fees;
  • trainee training fees;
  • moderation income; and
  • the higher of the 2018 fees free revenue reported by you, or the 2018 fees free funding contained in TEC records.

The allocation is equal to half of the amount calculated above because it relates to the July to December 2020 period.

How we calculated your 2020 allocation for TTAF – SAC 3+ funded TEOs

The information below provides a summary of how your allocation was calculated if you receive SAC 3+ funding. For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

Your 2019 course enrolment data was used to calculate your 2020 allocation

We identified your 2019 enrolments that meet TTAF funding criteria, and used this as a basis for calculating your 2020 allocation.

For new providers in 2020 with TTAF-eligible delivery

You will receive a zero allocation, and we will work with you to determine the appropriate amount of funding.

Courses used to determine your 2020 allocation

Allocation for courses starting on and from 1 July 2019

All courses starting on and from 1 July 2019 that meet TTAF funding criteria were included. This was based on the list published 18 June 2020. The calculation also included qualifications not published as they are expiring, or have expired but would have been eligible in the 2019 reported delivery.

Allocation for courses starting before 1 July 2019

Course fees included in full where a course:

  • Starts on and from 1 May 2019 and before 1 Jul 2019; and
    • continues past 1 July 2019; and
    • ≥33% of course occurs from 1 July 2019
  • Starts on or after 1 January 2019 and on or before 30 April 2019; and
    • continues past 1 July 2019; and
    • ≥75% occurs from 1 July 2019

Half of course fees are included where course:

  • starts on or after 1 January 2019 and on or before 30 April 2019; and
    • Continues past 1 July 2019; and
    • ≥50% and <75% occurs from 1 July 2019

Course Fees Rates

We use the course tuition fees and compulsory course costs fees recorded in STEO for 2020. It is assumed that all fee rates in STEO are up to date and represent the actual fees charged in 2020.

Where the current recorded fees are zero, allocations were made at a rate of $0 per learner.

2020 Allocation Determination

Step 1: We have allocated the funding for courses commencing on or after 1 July 2020 by using the number of eligible 2019 course enrolments, multiplied by the course fees in STEO.

Step 2: We have allocated the funding for courses commencing before 1 July 2020, but continuing after 1 July 2020, using the start date rules outlined above to determine the number of eligible enrolments, multiplied by the relevant STEO course fees.

Step 3: We have added the amounts calculated at step 1 and step 2 to determine your total allocation.

In-year amendments

You will receive TTAF funding for all eligible learners enrolled in eligible qualifications or programmes. We will consider if in-year adjustments to your allocation are required after the submission of the August Single Data Return (SDR) and Industry Training Register (ITR).

You can also contact us to discuss your allocation if you believe it is substantially inconsistent with your anticipated delivery; for example due to increased enrolments in 2020. To request a review of your 2020 allocation amount, please complete the below form and return to customerservice@tec.govt.nz.

TTAF Allocation Review Request Form (Word, 379 Kb)

Final wash-ups will be calculated after the December SDR, and March ITR.

Funding wash-ups

TEOs will be paid for all eligible learners enrolled in TTAF eligible qualifications and programmes.

As this is a new fund in 2020, funding recoveries for under-delivery will apply.

Funding wash-ups for any additional funding and recoveries will be calculated in line with the recoveries methodology, which will be published before the end of December 2020.

Wash-ups will also be calculated to ensure that you are paid for all eligible learners enrolled in eligible programmes i.e. where your delivery is over your allocation.  

 

 

 

Application for approval to increase, reinstate or start charging fees (Industry Training Fees)

As a principle, the TEC will pay for fees that would have otherwise been charged to learners as at 1 July 2020. 

› This is because the introduction of the Targeted Training and Apprenticeships Fund is not intended to change fees structures already in place. TTAF is intended to cover fees that would normally be paid by, or on behalf of, learners. 

› However, as Transitional ITOs usually manage their own fee policies, which means deciding whether or not to charge fees and the amount, we recognise that we may need to pay for fees that weren’t being charged, or were being charged at a reduced rate, as at 1 July 2020.   

› The TTAF funding agreement (clause 37) references an application process for TEOs. This application process enables:

  • Transitional ITOs to apply to the TEC to have fees funded through TTAF  
  • TEC to assess and approve funding these fees through TTAF.

› To apply for the TEC to fund fees through TTAF, that weren’t being charged, or were being charged at a lower rate, as at 1 July 2020, please use this form: 

TTAF application for approval to charge fees 

› Completed forms must be sent to customerservice@tec.govt.nz, with the subject line: [Edumis#] – TTAF – Application to increase fees

› This form is not for Tertiary Education Institutions (TEIs) and Private Training Establishments (PTEs) to apply for any standard annual fee increases that are applied under the Annual Maximum Fee Movement settings. 

› This form is not for TEIs and PTEs that want to increase fees more than the Annual Maximum Fee Movement. 

› The same contract clause is replicated for TEIs and PTEs and we are working on establishing a process for this. 

Please note, the basis for your application must be one of the following: 

(a) Fees had been reduced or removed as a result of COVID-19 during 2020; or

(b) You have had, or anticipate, a significant recent reduction in revenue that required to begin charging fees, or increase existing fees, 

(c) You have had, or anticipate, a significant recent reduction in revenue, that required you to begin charging fees, and the decision to begin charging or increasing fees relates to a specific reduction in revenue that has occurred as a result of external persons or entities stopping or reducing payments as a result of the TEO receiving TTAF funding; or

(d) Another reason is provided for beginning to charge fees, or increasing fees, and TEC is satisfied that there are circumstances that justify such a change.