Funding and Payments

Funding and Payments

Last updated 7 September 2021
Last updated 7 September 2021

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.

For the avoidance of doubt, the following target areas, which will be eligible for TTAF funding from 1 January 2021 have not been included in your initial 2021 funding allocation:

  • Conservation, including freshwater management, biodiversity and biosecurity training needs that support the Jobs for Nature initiative;
  • Information technology, including cybersecurity, technical support and web development; and
  • Expanded scope within community support, to specifically include enrolled nursing and cleaning (within community health), and programmes that train teacher aides and people learning to teach New Zealand Sign Language to others (within support for people with disabilities).

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 will receive 2021 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

2021 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 2021 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.

Volume of Delivery

To determine the starting point for calculating your 2021 allocation we compared your 2019 actual delivery with your 2020 year to date delivery in TTAF eligible qualifications or programmes.

The starting point for calculating your 2021 TTAF allocations is the higher of:

  • Your final 2019 ITF actual delivery (learner enrolments) in TTAF eligible programmes; or
  • Your 2020 ITF year to date actual delivery (learner enrolments) in TTAF eligible programmes as reported in the August ITR.

We have used the higher of 2019 actual or 2020 year to date delivery to ensure that Transitional ITOs are not disadvantaged by:

  • a reduction in 2020 delivery compared to 2019 due to the impacts of COVID-19; or
  • an increase in 2020 year to date delivery compared to 2019 due to growth in enrolments as a result of TTAF and other initiatives.

Fee rates

The fee rates used will depend on which Transitional ITO TTAF reporting process your organisation has elected to follow.

Agreed Fees

If you report using the Agreed Fee method, the fee rates used to determine your 2021 TTAF funding allocation are the monthly fee per programme contained in the 2020 Fee Schedule.

Actuals Reporting

If you report using the monthly Actual Reporting process, the fee rate used to determine your 2021 TTAF funding allocation is the maximum annual fee contained in the 2020 Fee Schedule.

2021 Allocation Determination

Step 1: we have calculated the TTAF fees payable based on both your 2019 and 2020 TTAF eligible actual delivery, multiplied by the maximum course fees contained in your fee schedules. This determines the starting point for your allocation.

Step 2: we have adjusted the starting point identified at step 2 by 2% to allow for fee increases to determine your final 2021 TTAF allocation.

We note that the inclusion of a fee increase in the 2021 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 2021 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 2019 and 2020 course enrolment data was used to calculate your 2021 allocation

To determine the starting point for calculating your 2021 allocation we compared your 2019 actual delivery with your 2020 year to date delivery in TTAF eligible qualifications or programmes.

The starting point for calculating your 2021 TTAF allocations is the higher of:

  • Your final 2019 SAC 3+ actual delivery (learner numbers) in TTAF eligible programmes;
  • Your 2020 SAC 3+ year to date actual delivery (learner numbers) in TTAF eligible programmes as reported in the August SDR.

If you delivered the TTAF eligible programmes or qualifications for the first time in 2020, we have used your 2020 year to date delivery as reported in the August SDR.

If you have no history of delivery in approved qualifications or programmes you will receive a zero allocation and your 2021 TTAF payments will be based on actual delivery. 

We have used the higher of 2019 actual or 2020 year to date delivery to ensure that providers are not disadvantaged by:

  • a reduction in 2020 delivery compared to 2019 due to the impacts of COVID-19; or
  • an increase in 2020 year to date delivery compared to 2019 due to growth in enrolments as a result of TTAF and other initiatives.

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 will be made at a rate of $0 per learner.

We have then adjusted these fee rates by an increase of 1.1% to reflect the 2021 Annual Maximum Fee Movement (AMFM) allowed.

We have not included Compulsory Student Services Fees (CSSF) in your funding allocation; however, we will pay CSSF for all eligible learners through the wash-up process. Where the exclusion of CSSF from your funding allocation would result in a significant funding shortfall, we will consider an in-year funding amendment.

2021 Allocation Determination

Step 1: we have calculated the TTAF fees payable based on both your 2019 and 2020 TTAF eligible actual delivery, multiplied by the course fees in STEO. This determines the starting point for your allocation.

Step 2: we have adjusted the starting point identified at step 2 by 1.1% to account for the 2021 AMFM to determine your final 2021 TTAF 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 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 2020 after the August SDR, or in 2021. To request a review of your 2021 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 for TEOs

2020 Targeted Training and Apprenticeships Fund Wash-up Methodology (SAC Level 3 and above funded providers only)

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

This methodology covers Student Achievement Component Level 3 (SAC3+) funded providers only. Our recovery methodology for Transitional Industry Training Organisations will be communicated and completed separately.

Payments and recoveries are based on:

  • Actual TTAF delivery of TTAF eligible programmes, as reported in the final 2020 SDR.
  • Tuition fees and compulsory course costs in STEO.
  • Compulsory Student Services Fees (CSSF) as reported in the TTAF CSSF actuals reporting template.
  • TTAF learners fees paid by Fees Free based on fees reported in the FF06 and the Fees Free Refund Report, after TEC validation and allocation rules have been applied.

How we will calculate 2020 TTAF wash up for SAC3+ 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 SDR and fees information in STEO

  • Actual TTAF delivery will be determined by multiplying the number of eligible learners reported in TTAF eligible programmes in the December 2020 SDR, by the tuition fees and compulsory course costs in STEO.
  • Where we are aware that the fees that were being charged prior to the introduction of TTAF were less than the amount in STEO, we will use the amount being charged prior to the introduction of TTAF.

We will include CSSF reported to the TEC

  • We will include the value of CSSF for TTAF eligible learners as reported in the TTAF CSSF actuals reporting template in Workspace 2.

We will set-off any amounts already paid by Fees Free

  • The TTAF funding agreement states that we are not liable to pay fees on behalf of a student to the extent that their fees have been paid through the fees free tertiary education initiative. The means that where a learners fees had been paid by Fees Free based on fees reported in the FF06 prior to the introduction of TTAF, these fees are considered to have already been paid, and no further payment will be made.
  • We will determine the amount of Fees Free already paid and notify you of these amounts via Workspace 2. This amount will then be deducted from your 2020 actual TTAF delivery.

TEO final wash-up will be calculated as follows:

We will:

  • determine the final actual tuition and compulsory course cost fees payable by multiplying the number of eligible learners reported in the SDR by the fees contained in STEO,
  • add any CSSF for TTAF eligible learners reported in the TTAF CSSF actuals reporting template via workspace,
  • deduct any Fees Free off-set calculated based on the FF06 and Fees Free Refund Report on Workspace 2, and

where the value is greater than TTAF funding, a payment will result. Where the value is less, a Recovery will result. Adjustments will be made to your scheduled 2021 payments.

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 (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 (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.