Funding and Payments

Funding and Payments

Last updated 25 March 2022
Last updated 25 March 2022

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

Funding Eligibility

We will pay for all eligible learners enrolled in eligible courses or programmes. Details of which learners, qualifications, and programmes are eligible for TTAF funding are outlined below.

Eligible learners

All students or trainees are eligible for fees support through TTAF where they meet the respective learner eligibility criteria for SAC Level 3 and above on the NZQF Fund (SAC 3+) or the Industry Training Fund (ITF), depending on which fund the eligible programme relates to.

Eligible programmes and qualifications

Eligible programmes and qualifications are those that meet the criteria in the TTAF letter of delegation and are recorded in the list of eligible programmes and qualifications available on the TEC webpage. If any other programmes or qualifications are subsequently approved for TTAF funding, we will work with you on in-year amendments to your funding allocation if necessary.

Funding

The TTAF funding delegation (PDF, 933 KB) (PDF, 933 Kb) is issued by the Minister of 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 will receive 2022 funding agreements from the TEC, which enable us to provide you with a funding allocation and to make payments. Funding allocations and payment schedules will be available on Ngā Kete.

Payment

2022 TTAF payments will be made quarterly in advance. Payments will be made in equal instalments in January, April, July, and October.

Funding allocations and payment schedules will also be available on Ngā Kete.

How we calculated your 2022 allocation for TTAF – Industry Training Fund funded

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 2021 final allocation was used to determine the starting point for your indicative allocation

Your 2022 indicative allocation is the greater of your 2020 actual delivery or your 2021 allocation.

It is important to note the 2021 allocation includes any in-year amendments approved up to 1 May 2021, but excludes any in-year amendments approved after this date.

2022 Final Allocation Determination

Step 1: we have adjusted your starting point indicative allocation to reflect year to date and forecast 2022 reported TTAF fees.

Step 2: we have adjusted the starting point identified at step 2 by 2% to allow for fee increases to determine your final 2022 TTAF allocation.

If the resulting amount was more than 10% or $10,000 lower or higher than your indicative allocation, your allocation was adjusted. Otherwise, your final allocation has not been adjusted.

We note that the inclusion of a fee increase in the 2022 allocation does not negate the need for Transitional ITOs to seek approval for any fee increases, including annual increases. More information can be found on the funding and payments page under Application for approval to increase, reinstate or start charging fees.

How we calculated your 2022 allocation for TTAF – Student Achievement Component – Provision at Level 3 and above on the NZQF Fund (SAC 3+)

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 2021 final allocation was used to determine the starting point for your indicative allocation

Your 2022 indicative allocation is the greater of your 2020 actual delivery or your 2021 allocation.

It is important to note the 2021 allocation includes any in-year amendments approved up to 1 May 2021, but excludes any in-year amendments approved after this date.

2022 Final Allocation Determination

Step 1: we have adjusted your indicative allocation to reflect 2021 delivery as reported in the December SDR and forecast year end delivery; and

Step 2: we have adjusted your indicative allocation by 1.7% to account for the 2022 AMFM to determine your final 2022 TTAF allocation.

If this calculation is either 10% or $10,000 lower or higher than your indicative allocation, your final allocation is the adjusted amount. If it is not, your final allocation is the same as your indicative allocation.

In-year amendments - Updated

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 April or 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 2022. To request a review of your 2022 allocation amount, please complete the below form and return to customerservice@tec.govt.nz.

TTAF Allocation Review Request Form (DOCX, 381 KB) (DOCX, 381 KB) (Word, 381 Kb)

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

Funding wash-ups for TEOs

The 2021 methodology and technical specifications for the calculation of funding wash-ups can be found in the Calculating the 2021 wash-up document.

Calculating the 2021 wash-up (PDF, 601 KB) (PDF, 1.2 Mb)

Funding wash-ups for Transitional Industry Training Organisations (TITOs)

We will recover any under-delivery of Targeted Training and Apprenticeship Fund (TTAF) funding.

This methodology covers Industry Training Fund (ITF) funded providers only. Our recovery methodology for SAC 3+ funded providers can be found on our website.

Payments and recoveries are based on:

  • Actual TTAF delivery of TTAF eligible programmes, as reported in the final 2020 ITR.
  • Fees for Training and Assessment recorded in the Fee Schedule agreed between TEC and each Transitional ITO.

How we will calculate 2020 TTAF wash up for ITF funded providers

If the dollar value of the TEO’s actual delivery in TTAF eligible programmes is:

  • less than 100% of the final allocation, then we will recover the difference, or
  • more than 100% of the final allocation, then we will pay the difference.

We will calculate actual delivery using delivery information reported in the ITR and fees information contained in the Fees schedule

For Transitional ITOs on the Agreed Fees approach

We will determine your actual 2020 delivery by multiplying the number of learners reported as either “Active” or “Grace” in eligible qualifications on the last day of each month from July 2020 by the applicable monthly fee recorded in the Fee Schedule.

For Transitional ITOs on the Actuals Reporting approach

We will determine your actual 2020 delivery based on the TTAF fees reported in the December 2020 Fees Free and TTAF report.

Enrolments reported in this report will be validated against learners reported as either “Active” or “Grace” in eligible qualifications on the last day of any month from 1 July 2020.

Fees reported will be validated against the fee types and amounts recorded in the Schedule of Fees.

TEO final wash-up up will be calculated as follows:

We will:

If the dollar value of the TEO’s actual delivery in TTAF eligible programmes is:

  • less than 100% of the final allocation, then we will recover the difference, or
  • more than 100% of the final allocation, then we will pay the difference.

Application for approval to increase, reinstate or start charging fees

As a principle, the TEC will pay for fees that would have otherwise been charged to learners as at 1 July 2020, or as at 1 January 2021 for programmes added as a result of the new target areas. This is because the introduction of TTAF 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.

Please note, as per the funding agreement, 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.

The TTAF funding agreement references an application process for TEOs. This process enables:

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

Industry Training fees

Transitional ITOs usually manage their own fee policies, which means deciding whether or not to charge fees and the amount of those fees. 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. This has been reflected in the TTAF funding agreement.

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:

Transitional ITO application to increase or introduce fees 2021 (DOCX, 210 KB) (Word, 210 Kb)

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

The terms of the agreement also mean that Transitional ITOs also need to apply for approval to increase any existing fees, including annual fee increases. Approval for annual fees increase can be sought using the same form.

TEI or PTE fee increases

While certain fee increases can occur automatically under the Annual Maximum Fee Movement settings, TEIs and PTEs also require approval to receive TTAF funding for fees that have been introduced, or reintroduced since the introduction of TTAF.

Please note that this process is separate from the process of having fees updated in STEO.  Fees being updated in STEO does not automatically mean that these fees will be payable under 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, (or as at 1 January 2021 for programmes added as a result of the new target areas), please use this form:

TEI_PTE application to introduce or reinstate fees 2021 (DOCX, 207 KB) (Word, 207 Kb)

  • 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 also not for TEIs and PTEs that want to increase fees more than the Annual Maximum Fee Movement.