We are changing the ‘Student eligibility’ funding condition to better support providers to implement the new Youth Guarantee level 1 and 2 EFTS definition.

The 2019 funding condition was:                                                                              

4.1         Student eligibility

(f) You must not enrol a student in more than one EFTS of Youth Guarantee provision in any calendar year.

The updated 2019 funding condition is:

4.1         Student eligibility

(f) You must not enrol a student in more than:

(i) 1.2 EFTS of level 1 and/or 2 Youth Guarantee qualification provision in any calendar year; and

(ii) 1.0 EFTS of level 3 Youth Guarantee qualification provision in any calendar year.

This means we will continue to fund up to 120 credits worth of delivery towards level 1, 2, or 3 qualifications in a calendar year, the same as in 2018.

From 1 January 2019, the definition of a full-time, full-year workload (one EFTS) for a student enrolled in a level 1 or 2 Youth Guarantee qualification is:

• 100 credits for level 1 and 2 qualifications
• 120 credits for level 3 qualifications.

The purpose of the new EFTS definition is to encourage providers to deliver level 1 and 2 programmes that better reflect the expected workload for Youth Guarantee students. This change follows feedback from providers that most students require additional time and support to achieve a 120 credit programme within a calendar year.

TEOs can continue to offer 120 credit programmes, with more intense delivery models and pastoral care, which work for students.

Key changes for 2019

• You will receive a 20% funding premium for level 1-3 courses starting in 2019, that lead towards a level 1 or 2 qualification
• We will pay up to 120 credits in a calendar year
• We calculate the funding premium for you, and pay it in addition to your approved allocation, after each Single Data Return (SDR)
• You don’t need to change how you report in the SDR or STEO – unless NZQA approve a programme change
• You need to track student EFTS consumption carefully using the new EFTS definition
• You may want to extend the duration of your programme to better align with expected student workload. See ‘Other considerations’ below.

There are other implications that you need to understand too. See the information below and the Enrolment, Funding and payments, Monitoring and reporting pages in Fund Finder.

If you have any questions about this change, please contact our Sector Helpdesk.

Calculating funding for level 1 and 2 qualifications

As our information systems are not changing, all SDR-based Youth Guarantee delivery volume and funding amounts will continue to be calculated using one EFTS = 120 credits.

We pay a 20% funding premium to account for the EFTS definition change. The amount paid is determined by the volume of levels 1-3 course enrolment EFTS in level 1 and 2 Youth Guarantee qualifications, as reported in the SDR.

Example: If a student completes a 100 credit non-trades qualification, our information system calculates that the student consumed 0.8333 EFTS ($9,000) instead of the correct 1.0 EFTS ($10,800). We make a premium payment of $1,800, so total funding paid is $10,800.

See the table below for more examples of 2019 funding calculations.

* Used in STEO, the SDR and Ngā Kete information products.

We will continue to fund up to 120 credits worth of delivery per student in a calendar year

The change to the student eligibility funding condition means we will continue to fund up to 120 credits worth of delivery per student in a calendar year.

You need to track student EFTS consumption differently

You must not enroll a student in a Youth Guarantee programme if the student:

• has received two EFTS of Youth Guarantee provision, or
• would, if enrolled by you, exceed two EFTS of Youth Guarantee provision during the period of that enrolment.

See Condition: Student eligibility under Use of YG Fund Funding for eligible students.

From 2019, track student EFTS consumption as follows:

• For level 1 and 2 qualifications, track course enrolments that started:
  • before 31 December 2018 using 120 credits per EFTS, and
  • after 1 January 2019 using 100 credits per EFTS.
• For level 3 qualifications, track course enrolments using 120 credits per EFTS.

A simple way to track consumption for the purposes of this funding condition is to use 120 credits per calendar year (where the course enrolment EFTS factor and credit value align).

This is particularly relevant for students progressing from a level 1 or 2 Youth Guarantee qualification delivered in 2019 or after, to a level 3 Youth Guarantee qualification.

Example: In 2019 a student enrolls in the 60 credit National Certificate in Foundation Skills (Level 1) and the 60 credit National Certificate in Foundation Skills (Level 2). In 2020 they want to enroll in the 120 credit New Zealand Certificate in Automotive Engineering (Level 3).

The student’s proposed enrolment in a Level 3 qualification of 120 credits would exceed the two EFTS maximum entitlement.

Instead, the student could progress to a smaller level 3 qualification (96 credits/0.8 EFTS or less) in Youth Guarantee. Alternatively they could enrol in any SAC level 3 and above funded programme.

See the table below for more details.

* 0.500 level 2 EFTS reported in the SDR plus the 20% premium = 0.600 level 2 funded EFTS.

** 2020 enrolment would not comply with two EFTS limit per student.

My students study more than 100 credits in a calendar year

If I run the same level 1 and 2 programmes in 2019 as I did in 2018, what happens to my funding?

If your students study more than 100 credits in a calendar year, and you continue with the programme unchanged from 2019, you will be paid:

• for up to 120 credits worth of delivery per student as you were in 2018, and
• the 20% funding premium per EFTS.

If I run level 1 and 2 programmes of 120 credits in 2019, how will this impact on my students’ progression in Youth Guarantee?

If your 2019 students complete 120 credits at level 1 and 2 (1.2 EFTS), they will not be able to enroll in a further 120 credit Youth Guarantee programme in 2020. This is because the enrolment will take them over the two EFTS entitlement for Youth Guarantee eligibility.

The student can enroll in a Youth Guarantee programme of up to 96 credits at level 3 (0.8 EFTS). Alternatively they can progress to any SAC level 3 and above funded programme.

If you have any questions about this, please contact our Customer Contact Group.

Consider students re-enrolling in courses

Remember to consider a student’s course re-enrolments before you enroll them in a further programme. Where a student does not complete a course successfully and you re-enroll them and claim funding, they consume additional EFTS towards their entitlements.

Consider extending the duration of your programme

You may want to extend the duration of your programme to better align with our expected workload of 100 credits a year for level 1 and 2 Youth Guarantee students.

You may need to enrol more students to consume your allocation.

The tables below show how to calculate programme duration for 2019 using the new EFTS definition, compared with the 2018 definition.

You will need New Zealand Qualifications Authority (NZQA) approval to change your programme duration before we approve the change in STEO.

NZQA will prioritise programme change applications from Youth Guarantee TEOs where a change in duration (delivery weeks) is the only change requested. If you incorporate other changes, your application won’t be prioritised.

To help NZQA identify and prioritise your application, in the ‘Reason for Change’ section, include a statement such as ‘The only change is an extension of delivery weeks following the TEC’s Youth Guarantee EFTS definition change’.

Note: You can submit a programme variation to NZQA if you want more than one duration for the same programme.

See Programme changes on NZQA’s website, and our Qualifications and courses information.

You need to check whether your students would still meet the Loan Entry Threshold.