At the Tertiary Education Commission (TEC), we gather a range of information about common issues through our monitoring work. We’re committed to partnering with tertiary education organisations (TEOs) and sharing learnings from our monitoring work to help the sector build capability. That way, we can all achieve better outcomes for learners.

Managing in-year funding

Using actual delivery data submitted through the Single Data Return (SDR) and Industry Training Register (ITR), and trends from previous years, TEC forecasts the expected value of delivery for each TEO across reported funds. The forecasts identify TEOs that are likely to under-deliver.

Our forecasts start with the April SDR.  Our aim is to right-size TEO allocations by:

• decreasing funding during the year where allocations are not going to be used or expected enrolments have not been realised, and
• increasing funding in currently funded priority areas listed in Plan Guidance 2026.

We expect TEOs to manage their in-year funding more proactively to reduce any forecasted recovery amounts at the end of each year. How a TEO manages its in-year funding, including working with TEC around these targeted amendments, will be factored into any potential Repayment Plan assessments.

If you have any questions regarding in-year amendments, please contact your relationship manager or customerservice@tec.govt.nz

Changes to our risk assessment process for private training establishments

We have recently updated our approach to financial monitoring and risk assessment of the private training establishment (PTE) subsector. This was communicated to all funded PTEs (that receive greater than $50,000 in TEC funding) on 29 June 2026.

The changes were made following consultation with the PTE sector. The three key changes are:

• the addition to the process of a perceived risk rating. This builds on the formulaic financial viability assessment, and takes into consideration additional contextual factors that may increase or decrease TEC’s overall risk assessment of a PTE. These assessments are subjective and based on professional judgement, and will inform TEC’s reporting and investment decisions
• removal of the requirement to provide Agreed Upon Procedures (AUP) reports, to reduce compliance-related costs
• lifting the funding threshold for PTEs that are required to have their financial statements audited from $4 to $5 million, to reduce compliance costs.

Guidance on the TEC website has been updated to reflect these changes, and all PTEs are encouraged to review the revised content.

Financial sustainability requirements for TEC-funded private training establishments

If you have any questions, please contact mco@tec.govt.nz 

Fees Free – updates and reminders

The Government has confirmed that final-year Fees Free will end at the end of 2026. Learners who complete an eligible qualification or work-based programme in 2026 will remain eligible and can apply for their entitlement within 12 months of completion, up to 31 December 2027.

We recognise this announcement may raise questions, particularly for learners completing from 2027 onwards. Further details on arrangements following the end of the policy are still being worked through. We will provide updated guidance and messaging for TEOs and learners as this becomes available.

Reporting and data quality

TEOs are encouraged, where possible, to submit qualification completion data outside of the Single Data Return (SDR) rounds to help reduce delays for learners.  

As we move further into 2026, TEC will continue to work with TEOs to resolve any discrepancies between reporting and invoicing, particularly for work-based programme completions, to ensure learners receive the correct entitlement. Therefore, it is extremely important that all TEOs are submitting accurate data through the SDR and ITR.

First-year Fees Free wash-ups

The deadline for first-year Fees Free reporting changes has now passed. TEOs are reminded that they are unable to charge learners for fees that would have been eligible under first-year Fees Free.

Fees Free website

The FeesFree.govt.nz website is now decommissioned. TEOs should ensure that any reference to this website is removed from their published material and that learners are directed to Inland Revenue (ird.govt.nz/fees-free) for current policy information.   

Fees Free – Inland Revenue

Auditing – common themes from recent audits

Through recent audits, we have identified a number of common themes. We have set out below three of the most frequently observed issues, so that other TEOs can proactively review and ensure their own compliance.

Withdrawals

As set out in the conditions attached to your funding, a withdrawal occurs when a learner ceases to participate in a course, programme, or micro-credential (regardless of whether any fees have been refunded). This may occur where a learner formally notifies the TEO of their intention to withdraw, or where the learner ceases to attend or participate for any reason.

Across recent audits, we have seen an increase in cases where withdrawals have not been reported accurately in the SDR. In particular, some TEOs have not recorded a withdrawal date where there is evidence that a learner has ceased participating for a sustained period.

While TEOs are expected to have documented policies and processes for identifying non-attendance and non-participation, audits continue to identify instances where withdrawal dates reflect administrative processing rather than the learner’s actual pattern of participation. This can result in inconsistencies in reporting and may impact the accuracy of funding claimed.

TEOs should ensure that withdrawal dates are determined in a way that is supported by evidence, including attendance, engagement, or other relevant records, and are consistent with the funding conditions.

TEOs are also reminded that, for some funds, the withdrawal date is determined by the point at which 10% or one month of the course has elapsed (whichever is earlier) where a formal withdrawal date has not been set. In all cases, the reported withdrawal date should be supported by the course start date and duration, as well as the learner’s participation.

As part of our ongoing monitoring work, we will be undertaking targeted activity focusing on withdrawals, including early withdrawals.  We may contact TEOs where we have questions or require further information in relation to reported withdrawal data. We will also continue focusing on this in audits.

It is a condition of funding that withdrawals are reported accurately, and that early withdrawals are reported using Source of Funding Code 31 in the Course Enrolment File prior to submission or removed from the SDR entirely if the student never commenced.

Accuracy of course (component) start and end dates

While TEC makes investment decisions at the programme or qualification level, for administrative and funding purposes funded programmes must be disaggregated into their component courses. Course-level start and end dates reported in the SDR are used to apportion funding across the programme.

Audits continue to identify instances where TEOs are reporting generic course start and end dates, despite course delivery occurring over different timeframes. This was highlighted in our August 2023 monitoring update and continues to be a common issue.

Course start and end dates should align with the actual scheduled delivery of each course. The Data specification for Single Data Return manual requires that start dates reflect the officially notified beginning of instruction or structured supervision, and end dates reflect the officially notified end of instruction or assessment for the course.

While the manual allows the use of generic start and end dates in limited circumstances where it is impractical to identify course dates, audits indicate that this practice is being applied more broadly than intended.

Accurate reporting of course start and end dates is important to ensure that:

• funding reflects education and training that has actually been delivered
• learner consumption and entitlements are calculated based on a learner’s actual study
• learners do not miss out on student support initiatives where they withdraw before the end of a programme.

TEOs are reminded to report course start and end dates as accurately as possible, particularly for longer or more complex programmes. Once reported in a December SDR, course start and end dates should not be changed in future submissions, as equivalent full-time students (EFTS) are calculated over the originally reported delivery period.

Literacy and Numeracy funds – enrolments of learners with higher-level qualifications

Literacy and Numeracy funding is intended to support learners who have low literacy and/or numeracy skills and who require additional support to participate effectively in education, training, or employment.

As a reminder, TEOs can only enrol learners with a Level 5 or above qualification on the New Zealand Qualifications and Credentials Framework (NZQCF) (including undergraduate and postgraduate degrees) if they have literacy and/or numeracy challenges that justify their enrolment, and with TEC’s written approval.

For a learner to be eligible for an exemption, TEC must be confident that:

• they have literacy and/or numeracy challenges, and
• the challenges are sufficient to justify their enrolment, despite holding a Level 5 or above qualification.

To apply for an exemption for a learner, please fill out the application form, at Exemptions – Intensive Literacy and Numeracy.

Please ensure that the learner also meets all other learner eligibility criteria in the funding conditions before applying.

If you have any questions about the exemption process, please contact customerservice@tec.govt.nz or 0800 601 301.