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UFS funding categories and delivery classifications

The introduction of the Unified Funding System (UFS) has created six new subject categories for funding purposes and will require all vocational education providers to use the Course Classification Guide to inform their funding rates.

This webpage provides:

details on how the new UFS subject categories map to the Course Classification Guide;
further guidance about changes to the Course Classification Guide, that we signalled earlier this year, to complement the indicative allocations;
relationship between the Industry Training Register and the Course Classification Guide;
a new definition for intramural and extramural study for the single data return (SDR).

UFS subject category

SAC funding categories

Course classification guide numbers and subject areas

Humanities, Business and Social Service Vocations

A, J

#03: Arts; Advanced Studies for Teachers; Health Therapies; Humanities; Languages; Social Sciences.

#04: Business; Accountancy; Office Systems/Secretarial; Management.

#5.2: General Education (unclassified)

#14: Law

Trades, Creative Arts, Information Technology and Health-related Professions

B, P

#02: Architecture; Quantity Surveying

#06: Computer Science

#12: Fine Arts; Design

#16: Music and Performing Arts

#17: Health Related Professions

#22: Trades 2

Agriculture, Engineering, Health Sciences and Science

C, L, V

#01: Agriculture and Horticulture

#3.1: Osteopathy, Acupuncture

#11: Engineering, Technology

#13: Health Sciences

#18: Science

Pilot Training and Priority Engineering

M, N

#11.1: Priority Engineering (leading to qualifications at L5 or above)

#11.2: Pilot Training

Foreign-going Nautical and Specialist Agriculture

S, H

#38: Foreign-Going Nautical

#01: Agriculture and Horticulture (specialist / higher-level provision leading to qualifications at L5 or above)

Te Reo Māori and Tikanga Māori

#40: Te Reo Māori – Courses that prepare or develop further the abilities of individuals to understand and demonstrate knowledge of te reo Māori. Principal subject areas include kōrero, pānui, tuhituhi and whakarongo.

#41: Tikanga – Tikanga Māori courses are about te ao Māori (a Māori worldview), they are informed by mātauranga Māori (Māori knowledge) and inform a Māori way of being and knowing.

Notes: Agriculture and horticulture provision that could be coded to #22: Trades (F2) or #01: Agriculture (F3) should generally be coded to #01 (for the F3 rate).

Te Reo Māori and Tikanga that were coded to #03 should now be coded #40 Te Reo Maori and #41 Tikanga.

Industry Training Register

Previously, Industry Training did not have course classification codes. Industry Training Register submitters have now been supplied with information on the course classification codes and how these need to be used.

Single Data Return

To align with the Modes of Delivery as part of the UFS, we are making minor changes to the Single Data Return (SDR) definitions for Intramural and Extramural.

These minor changes will recognise the ways in which learners seek to access learning.

Intramural and residing in New Zealand	Covers courses where students must attend scheduled teaching sessions in New Zealand in person for the majority of their course in order to meet course requirements. These courses may, however, include periods of supervised research and clinical or field experience which may take place outside the campus, and can also include the option of on-line attendance for some or all teaching sessions.
Extramural and residing in New Zealand	Covers courses for students who are resident in New Zealand where the majority of their scheduled teaching is primarily delivered off-campus in New Zealand. These courses use postal services and online technology as the main method of teaching delivery. These courses may, however, include short periods of on-campus attendance.
Extramural and residing overseas	Covers students who are resident overseas and are unable to attend on-campus courses in New Zealand.
Intramural and residing overseas	Covers courses where students must be physically present in scheduled teaching sessions at a TEO’s campus located in an overseas country in order to meet the course requirements. These courses may, however, include periods of supervised research and clinical or field experience which may take place outside the campus.

Notes on the UFS delivery component funding categories

Course classification codes and subject areas, and the alpha-numeric funding categories, are a feature of the current Student Achievement Component (SAC).
The new funding rates for the UFS delivery component (e.g. F1, F2, etc.) are based on a combination of existing SAC funding categories (e.g. A1, B1 etc.). The current alpha-numeric SAC funding categories (e.g. A1, B1 etc.) group a combination of subject areas that are listed in the Course Classification Guide (e.g. #03 Arts, #04 Business).
A more detailed list of what specific subject areas are funded under each SAC funding category (which will be the basis for subject groupings in the delivery component) can be found in our guidance in the Course Classification Guide (PDF, 860 KB).
The Course Classification Guide will be re-published with enhanced guidance by November 2022. We also intend to provide examples to assist with correct interpretation of the Course Classification Guide.

Guidance on changes to the Course Classification Guide

As communicated in May, further guidance regarding course classification changes to accompany the indicative funding allocations and mix of provision templates is provided below:

Course Classification Guide Numbers and Subject Areas	Change Guidance
#01: Agriculture and Horticulture	Specialised agriculture and horticulture We will add specialised agriculture and horticulture as a new subject to course classification code 01 Agriculture; Horticulture. The proposed description for specialised agriculture and horticulture is: Specialised agriculture and horticulture are programmes at level 5 and above that are targeted at primary industry management.
#11.2: Pilot Training	Update to Pilot training diploma funding Pilot training diplomas have been approved for funding under the programme rule. This means all courses (both theory and practical) should be coded to #11.2. This is for TEOs that are already funded to deliver undergraduate pilot training. We’ll review this arrangement in the future for its suitability. We are currently not likely to fund pilot training for providers not already delivering this as aviation delivery is capped and fully allocated.
#21 Trades 1 and #22.1 Vocational Training for Industry	Removal of two existing course classifications We have removed two existing course classifications that are no longer relevant following the introduction of the UFS: Course classification 21 - Trades 1 (all trade courses for trainees under the Industry Training and Apprenticeships): This is only used under SDR source of funding 11 (SOF11); delivery reported under SOF11 will require standard course classifications in 2023. Course classification 22.1 - Vocational Training for Industry: All courses where delivery is comparable to industry training. This has been removed and courses under 22.1 will need to be changed to the relevant subject-based category under the delivery component.
#22: Trades 2	Clarifying subject areas for Trades We are clarifying the subject areas covered under course classification code #22 Trades 2. Below is a summary of the changes we intend to apply in the updated Course Classification Guide – All level 2 trades need to be classified as #22 Trades 2 Where a subject under #22 Trades 2 was referred to as ‘(pre-trades)’ we removed this reference to clarify that trade qualifications at level 4 and pre-trade qualifications at level 3 are covered under this course classification code. Removal of restaurant/bar to distinguish the cost differential to deliver food and beverage service training which is aligned to #04 Hospitality. Cooking and catering provision will continue to be covered under #22 Trades 2 in recognition of the higher cost to deliver this provision which requires access to ingredients, commercial kitchens and special equipment. Addition of the following subjects to #22 Trades 2 to accommodate the use of the Course Classification Guide for all vocational education are: Cleaning Food processing (pending review to see if this is better aligned with course classification code 01 Agriculture; Horticulture or 11 Engineering: Technology) Interior Design (e.g. kitchen, bathrooms) Laundry Sign writing
#40: Te Reo Māori and #41: Tikanga Māori	Te Reo Māori and Tikanga Māori Te Reo Māori and Tikanga Māori will retain the current SAC rates in a separate sixth funding category (F6) of the UFS delivery component funding rates. This requires two new course classification codes. Te Reo Māori is assigned course classification code 40 and defined as courses that prepare or develop further the abilities of individuals to understand and demonstrate knowledge of te reo Māori. Principal subject areas include kōrero, pānui, tuhituhi and whakarongo. Tikanga Māori is assigned course classification code 41 and is proposed to be defined in 2023 as: Tikanga Māori courses are about te ao Māori (a Māori worldview), they are informed by mātauranga Māori (Māori knowledge) and inform a Māori way of being and knowing. Note: This is an interim definition of tikanga Māori for 2023. Funding for courses that use this classification from 2024 and beyond will be based on the outcomes of a wider review of te reo Māori and mātauranga Māori funding in the tertiary sector that is being led by the Ministry of Education. This interim definition is based off the New Zealand Standard Classification of Education (NZSCED) classification. Providers should not change their course classification coding for te reo Māori and tikanga Māori until after their December 2022 SDR submission.