Category: Tertiary Education Commission

Source: Tertiary Education Commission

Last updated 27 June 2023
Last updated 27 June 2023

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The Government is providing an additional $128 million to tertiary education providers, for degree level and above courses, over the next two years – $64 million in 2024 and the same in 2025.
The Government is providing an additional $128 million to tertiary education providers, for degree level and above courses, over the next two years – $64 million in 2024 and the same in 2025.

Budget 2023 provided an additional $496 million, over four years, to increase tertiary and training subsidies by 5 percent. Budget 2023’s increase in funding, together with today’s extra $128 million, will increase subsidies for degree-level and above tertiary delivery by 9 per cent for 2024 and 2025 over and above 2023 levels.
The Ministry of Education and the Tertiary Education Commission (TEC) are currently working to update the Delivery on the New Zealand Qualifications and Credentials Framework at Levels 7 (degree) and above funding determination. More information will be available once this has been reissued for consultation. 
This funding will help maintain the quality and breadth of higher education offerings and institutional research capability.
Further details are available on the Beehive website

Source: Tertiary Education Commission

Last updated 19 June 2023
Last updated 19 June 2023

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The consultation and sector engagement on 11 funding determinations and fee regulation settings is now open and will close on 17 July 2023.
The consultation and sector engagement on 11 funding determinations and fee regulation settings is now open and will close on 17 July 2023.

Consultation is targeted to identified funds. Tertiary education organisations (TEOs) have been sent an invitation to participate through Workspace 2.
Why is the Ministry of Education consulting?
The Ministry of Education (MoE) is required to consult on variations to funding determinations.
MoE has drafted proposed updates to the funding determinations for 2024 and the Minister of Education has agreed to consult on the variations.
Variations to funding determinations
MoE is consulting on variations to the following funding determinations:

Adult Community Education (ACE)
Delivery on the New Zealand Qualifications and Credentials Framework at Levels 1 and 2 (DQ1-2)
Delivery on the New Zealand Qualifications and Credentials Framework at Levels 7 (degree) and above (DQ7+)
Equity Funding
Literacy and Numeracy Provision
Māori and Pasifika Trades Training (MPTT)
Non-degree Delivery at Levels 3–7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all Industry Training (DQ3-7)
Performance-Based Research Fund (PBRF)
Specialised English for Speakers of Other Languages (ESOL)
Strategic Component of the Unified Funding System for Vocational Education and Training
Te Tahua o Te Reo Kairangi
Youth Guarantee (YG).

For more information on the MoE consultation and engagement on the funding determinations, see Funding determinations – Ministry of Education.
Consultation on fee regulation settings
The Minister of Education has invited submissions on proposed changes to fee regulation settings from 2024:

2024 Annual Maximum Fee Movement (AMFM) rate
2024 Micro-credential fee cap rate
relaxing the exception criteria for the AMFM
allowing providers to temporarily reduce fees without having to remain at the reduced rate under the AMFM
changes to how student services fees are regulated.

The proposed fee regulation settings for 2024 have been published in the New Zealand Gazette. Further information on the fee regulation settings has been published on the MoE website. 

Source: Tertiary Education Commission

Last updated 19 June 2023
Last updated 19 June 2023

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The Tertiary Education Commission (TEC) has agreed in principle to recommendations made by the PBRF Sector Reference Group (SRG) on Technical Matters and recognising the impact of the COVID-19 pandemic on the Quality Evaluation 2026.
The Tertiary Education Commission (TEC) has agreed in principle to recommendations made by the PBRF Sector Reference Group (SRG) on Technical Matters and recognising the impact of the COVID-19 pandemic on the Quality Evaluation 2026.

Between 19 December 2022 and 24 February 2023, the SRG consulted on a range of issues relating to Technical Matters. These included:

the proposed role of the Platform of Research – Contextual Summary component
proposed Research Output request and supply processes
feedback on Evidence Portfolio (EP) guidance, reflecting changes made to date
feedback on implementation of types and descriptors for research outputs, activities and Contributions to the Research Environment (CREs).

Between 24 March and 25 May 2023, the SRG consulted on the impact of the COVID-19 pandemic. This included two proposed options:

a stand-alone COVID-19 impact provision
COVID-19 impacts included in the Researcher Circumstances provision under the new Force Majeure

The SRG made recommendations to the TEC on Technical Matters and on recognising the impacts of the COVID-19 pandemic after these consultation periods across the sector. For full details of the TEC’s in-principle decisions, along with summaries of the consultation feedback received, see SRG Consultation Papers 2026.
These in-principle decisions will inform the SRG’s recommendations on the remaining issues it will consider, and will be reflected in the Quality Evaluation 2026 Guidelines.
The SRG is operating between September 2021 and the publication of the final Quality Evaluation 2026 Guidelines in November 2023.
For information on Quality Evaluation 2026 and the SRG, see Sector Reference Group (SRG) 2026.

Source: Tertiary Education Commission

Last updated 7 June 2023
Last updated 7 June 2023

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Supplementary Plan Guidance (SPG) is now available to support providers in developing their Investment Plans for funding from 1 January 2024.
Supplementary Plan Guidance (SPG) is now available to support providers in developing their Investment Plans for funding from 1 January 2024.

We invest over $3 billion into tertiary education
The Tertiary Education Commission (TEC) works with providers to deliver a quality tertiary system that provides study and career pathways for all New Zealanders. Our investment priorities inform how we fund providers. They enable a sustainable system – one that gives effect to the Tertiary Education Strategy and meets the skills needs of our motu.
New guidance to inform Investment Plans
The SPG gives further information about what the TEC will look for in Investment Plans – information that wasn’t available when Plan Guidance was published in February. It also restates the overarching message of transformational change for the success of all learners.
If you’re a provider, when finalising the content of your Plan, please consider all the information available for the investment round including Plan Guidance, SPG and the Investment Briefs.
You have until Friday 7 July this year to review indicative allocations and submit your Investment Plans.
Important changes and additions to guidance for 2024
The SPG for investment in 2024 includes:

targeted investment priorities for vocational education and training, informed by advice from the Ohu Mahi Workforce Development Councils (WDCs) for the vocational sector, and Regional Skills Leadership Groups (RSLGs)
reiteration of the Plan Guidance’s overarching message that “achieving system-wide equity of participation and achievement is at the heart of our investment approach”
processes for additional funding requests and new providers.

The SPG also gives you more detail about two Unified Funding System (UFS) funding components and how to access this funding:

Strategic component: The Private Training Establishment (PTE) Strategic Fund is a key part of the strategic component of the UFS. Strategic component funding for PTEs is off-Plan (not determined by your Investment Plan) but applications need to be submitted at the same time, by 7 July 2023.
Learner component: More providers will be a part of the Learner Component Performance Element (LCPE) in 2024. The LCPE approach requires providers to meet agreed performance expectations. Performance expectation requirements will depend on your Plan status and amount of learner component funding.

For full details on these changes and others: Supplementary Plan Guidance for 2024 (PDF 1.8 MB)
For any questions on the SPG, please contact your Relationship Manager, phone us on 0800 601 301 or email customerservice@tec.govt.nz.

Source: Tertiary Education Commission

Last updated 1 August 2024
Last updated 1 August 2024

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The Minister for Tertiary Education and Skills, Penny Simmonds, today announced that the Government is consulting on a proposal to make changes to the vocational education and training (VET) system.
The Minister for Tertiary Education and Skills, Penny Simmonds, today announced that the Government is consulting on a proposal to make changes to the vocational education and training (VET) system.

See Minister Simmonds’ announcement at Releases – Beehive.
Feedback is being sought on three parts of the system:

A redesigned Institute of Technology and Polytechnic network that retains access to tertiary training in our regions, through a combination of stand-alone and federated ITPs.
Options for an industry-led system for standards-setting and industry training.
Changes to vocational education funding from 2026 to better support the reformed system.

Find out more information about the proposals and make your submission by 12 September 2024 at 2024 Vocational Education and Training Reforms – Ministry of Education.

Source: Tertiary Education Commission

Last updated 1 August 2024
Last updated 1 August 2024

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The Ministry of Education (MoE) is consulting on options for unique identifiers for use in administering the Performance-Based Research Fund (PBRF) and similar research initiatives. Consultation closes on Thursday 29 August 2024.
The Ministry of Education (MoE) is consulting on options for unique identifiers for use in administering the Performance-Based Research Fund (PBRF) and similar research initiatives. Consultation closes on Thursday 29 August 2024.

The PBRF is designed to increase the quality of research in Aotearoa New Zealand by encouraging and rewarding excellent research. The Fund comprises of three funding components – the Quality Evaluation, Research Degree Completion and External Research Income.
Participation in the Quality Evaluation has required tertiary education organisations (TEOs) to use a unique identifier when presenting their staff members research evidence portfolios. MoE, Tertiary Education Commission (TEC), and TEOs have been using the National Student Number (NSN) as the unique identifier.
Have your say by 5pm Thursday 29 August
To provide a unique, trusted identifier that enables the collection and storage of personal information in accordance with relevant legislation, the MoE is consulting on two options.
Option 1: Create a new unique identifier for use with the PBRF Quality Evaluation and similar research initiatives.
Option 2: Amend Schedule 24 of the Education and Training Act 2020 (the Act) to authorise TEOs to assign NSNs to staff members and share these with the TEC for purposes relating to the administration of the PBRF Quality Evaluation and similar research initiatives.
Both proposals are intended to ensure that the use of a unique identifier for the purpose of the PBRF Quality Evaluation and similar research initiatives, is compliant with the Act and the Privacy Act 2020.
While the 2026 PBRF Quality Evaluation will not take place due to the University Advisory Group presenting advice to MoE, the legislative process does takes time. The use of a unique identifier is still necessary to enable allocation of funding to the research workforce in the future.
Find more information on the consultation process including frequently asked questions, at A unique identifier for the performance-based research fund (PBRF) consultation – Education in New Zealand.
For questions about the consultation, please email UniqueIdentifier.Consultation@education.govt.nz.

Source: Tertiary Education Commission

At the TEC, we gather a range of information about common issues through our monitoring activities. We’re committed to partnering with tertiary education organisations, and sharing learnings from our monitoring work to help the sector build capability so we can all achieve better outcomes for learners.
Audits and investigations have resumed
The impact of the COVID-19 pandemic and the subsequent lockdown has provided significant challenges for the education sector. During lockdown, TEC reduced reporting and other compliance requirements where possible to support you to focus your efforts on supporting learners and staff.
As New Zealand has now returned to a greater degree of normality, we have recommenced our normal audit and investigations programme to ensure there is accountability for the public funding we invest.
We will contact TEOs directly to advise of an audit or investigation and make the necessary arrangements. We recognise that we are all still operating in an unusual environment and are committed to providing as much flexibility as possible in how we work together through these processes. We can discuss details with you on a case by case basis.
We would like to remind you that if you self-identify any compliance issues, or need any support with funding rules or other requirements, you should contact your relationship manager or relationship advisor, or customerservice@tec.govt.nz. Our priority is to support you to resolve any issues efficiently, so you can maintain your focus on supporting learner success.
Compulsory student services fees: 2019 reports due
The CSSF Ministerial Direction requires Tertiary Education Organisations (TEOs) that charge a CSSF to report on it annually:

Tertiary education institutions (TEIs) must report on CSSFs in their annual report;
Private training establishments (PTEs) must provide a written report to their students and the TEC.

Thank you to those who have submitted their 2019 annual report. For those who haven’t, we would like to remind you, if you charge a CSSF, to please send your current CSSF report for students to cssf@tec.govt.nz.
As part of regular fees-free reporting to the TEC, TEOs that charge a CSSF are required to self-attest their compliance with the CSSF Ministerial Direction. We review all CSSFs to verify that they comply with these requirements. In cases of non-compliance we will not provide fees-free funding for CSSFs that relate to eligible learners. To ensure your fees-free payments run smoothly, please submit your current CSSF report and respond to any feedback.
Reporting requirements for the Technology Access Fund for Learners
On 2 May 2020, Education Minister Hon Chris Hipkins announced a $20 million fund to help eligible tertiary learners continue their education disrupted by COVID-19.
The fund, called the Technology Access Fund for Learners (TAFL), helps make digital devices and internet connections available to eligible learners.
TAFL is available to support initiatives from 23 March 2020 (the date the move to COVID-19 alert Level 4 was announced) until 31 December 2020, or until all funding is allocated.
As a reminder to TEOs that received TAFL, you are required to periodically report to the TEC on how, where and when you have used the funding. The TEC will use the information to regularly update a public list on the TEC’s website. We also remind you of the requirement to retain the original receipts and invoices where TAFL has been used.
For the full reporting and monitoring conditions, please see the TAFL conditions on the TEC’s website.
Reporting requirements for the Hardship Fund for Learners
The Hardship Fund for Learners (HAFL), also announced in May 2020, helps TEOs provide temporary financial assistance for currently enrolled tertiary learners who are facing hardship due to the COVID-10 pandemic.
As with TAFL, funding can be used to support initiatives from 23 March 2020 until 31 December 2020.
HAFL has been automatically allocated to all eligible TEOs. The list of TEOs with HAFL funding is published on the TEC’s website, which includes how much each TEO has been allocated, how much each TEO has spent to date, and how many learners each TEO has supported.
As a reminder to TEOs that received HAFL, you are required to periodically report to the TEC on how, where and when you have used the funding. We also remind you of the requirement to keep records of where cash payments have been made directly to your learners, and retain the original receipts and invoices where HAFL funding has been used to purchase resources on learners’ behalf.
For the full reporting and monitoring conditions, please see the HAFL conditions on the TEC’s website.

Source: Tertiary Education Commission

At the TEC, we gather a range of information about common issues through our monitoring activities. We’re committed to partnering with tertiary education organisations, and sharing learnings from our monitoring work to help the sector build capability so we can all achieve better outcomes for learners.
Fees Free tertiary education and training statutory declarations
In a number of instances, we do not hold sufficient information to automatically determine the Fees Free eligibility of potential learners. The statutory declaration process enables such learners with an ‘Unknown’ (also known as ‘Maybe’) eligibility status on the Fees Free website to confirm that they meet the eligibility criteria to access the Fees Free scheme.
As a reminder, a statutory declaration is not an application form, or a way for you or a learner to check if they are eligible or not.
A statutory declaration is a legal form and must be completed in front of an authorised witness. The information included on the statutory declaration must be true and correct. It is an offence to give any altered, false, incomplete or misleading information, or to make a false statement or declaration.
If you have learners who do not know whether they meet the eligibility criteria, or have further questions about their own circumstances, please do not advise them to submit a statutory declaration.
Instead, please direct these learners to contact the TEC Customer Contact Group on customerservice@tec.govt.nz or 0800 601 301 with any questions regarding the eligibility criteria. Only once a learner is sure that they meet the Fees Free eligibility criteria should they complete and submit a statutory declaration.
Timeliness of the supply of financial information – PTEs
Our funding conditions specify that you must supply to us any financial information that the TEC requires you to provide, as per section 426 of the Education and Training Act 2020.
For PTEs, this includes providing us with audited accounts and forecasts each financial year, within five months of your financial year end. Supplying this information supports our financial viability assessment process, and is particularly important at the moment as we monitor the impact of COVID-19 on the tertiary sector and advise the government on its ongoing recovery planning. It is important to provide this information in a timely manner. If you expect that you will not be able to supply this information within the required timeframe, you should contact your relationship manager, relationship advisor or email customerservice@tec.govt.nz.
Our priority is to support you in meeting your obligations to supply the required information to ensure we have up to date information to assess the financial viability of the organisations in which we invest .
Suggestions for TEOs based on our analysis of recent audits
We have analysed our latest audit findings and outlined three common issues to support your organisation in avoiding the same issues ahead of your next audit.
The Annual Maximum Fee Movement (AMFM)
For those TEOs that receive TEC funding through the Student Achievement Component (SAC) level 3 and above fund the AMFM sets the maximum percentage that you may increase your domestic tuition fees by each year.
The AMFM is set at 1.1% for 2021 and we have identified instances of TEOs rounding up and exceeding this figure without TEC approval.
If you want to increase your fees above the permitted AMFM, by up to an additional 1.1%, then you must apply to the TEC for an AMFM exception. Information about how to apply for an exception to the AMFM is available on the SAC level 3 and above fund page, under the ‘Qualifications and courses’ tab.
Annual Maximum Fee Movement (AMFM) for 2021
Fee discrepancies in Services for Tertiary Education Organisations (STEO)
Recent audits have identified some discrepancies between the fees being charged to students and the fees that are recorded in STEO.
It is a condition of SAC level 3 and above funding that you must report in STEO accurate information regarding the fees you are charging students.
You can update the fees being charged to students through the STEO website. If you have any questions about fees or STEO please email customerservice@tec.govt.nz.
Evidence of eligibility for funding
The TEC requires that you keep certain records to confirm your eligibility to claim TEC funding. Some of our audits have recently found that the following records were missing:

Domestic status – where applicable you must verify a student’s eligibility as a valid domestic enrolment. Verification methods and required documentation are outlined in your funding conditions;
Withdrawals – evidence of withdrawal needs to be captured to ensure student withdrawals are managed and recorded correctly in line with the appropriate withdrawal dates and refund period entitlements set out in the Education and Training Act 2020; and
Ministry of Education (MoE) school exemption letter – where applicable this document must be kept on file for any student that is aged under 16 years of age at the time of enrolment with you.

Source: Tertiary Education Commission

Last updated 25 July 2024
Last updated 25 July 2024

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One of the Tertiary Education Commission’s (TEC’s) legislative functions is to monitor tertiary education institutions (TEIs) to assess whether their operations or long-term viability are at risk.
One of the Tertiary Education Commission’s (TEC’s) legislative functions is to monitor tertiary education institutions (TEIs) to assess whether their operations or long-term viability are at risk.

We take a holistic view of an institution’s performance, using both quantitative and qualitative information. We assess financial risk using a financial monitoring framework alongside other financial information and analysis. We use all other available information available to us to assess the TEI against our performance expectations, and consider any other factors that may impact its long-term viability. We then decide on a final overall risk rating.
Financial monitoring framework
We use the financial monitoring framework (FMF) to monitor TEIs’ financial performance. The FMF is a technical tool that ensures a consistent and transparent approach to assessing each institution’s financial performance. It provides formulaic risk calculations for profitability, liquidity and debt affordability. A low, medium or high risk rating is calculated for each dimension.
A full description of the FMF, including the measures, assessment calculations and weightings, can be found in Appendix 1 of Risk assessment process for tertiary education institutions.
Collection of financial information
We receive financial information from TEIs at least three times per year:

February – the first submission includes the unaudited financial results for the prior financial year, plus the budget for the current year and two out-year forecasts.
May – the second submission includes the now audited prior year results (which we collate and publish – see Financial performance) and updated current year and out-year reforecasts.
September – the third submission includes a reforecast for the current year and any adjustments to out-year reforecasts.

Where a TEI has an elevated risk rating, we may require additional reporting to ensure we are aware of and maintain appropriate visibility of key issues. The appropriate level of monitoring for each TEI is ultimately a judgement call by the TEC. We will engage with you on the best information source to meet our needs. This could include:

targeted reporting on a specific issue
more frequent reporting, or
providing us with copies of Council or Council sub-committee meeting records. 

TEC’s performance expectation
The Education and Training Act 2020 provides universities with the autonomy and independence to make academic, operational and management decisions. TEIs and their governing Councils are accountable for their own performance, operation and long-term viability. However, for the TEC to monitor any risks to a TEI’s long-term viability, we need to consider operational, educational, management and governance risks alongside financial performance.
For a full description of the TEC’s performance expectations and the risk assessment process that sits alongside the FMF, see:
Risk assessment process for tertiary education institutions (PDF 398 KB)
For more information please email teifm.info@tec.govt.nz.  

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Source: Tertiary Education Commission

At the TEC, we gather a range of information about common issues through our monitoring activities. We’re committed to partnering with tertiary education organisations, and sharing learnings from our monitoring work to help the sector build capability so we can all achieve better outcomes for learners.
New CSSF Ministerial Direction and guidance document
A reminder that the Minister of Education issued a new Ministerial Direction on Compulsory Student Services Fees (PDF 173 KB) (CSSFs) in 2019.
We have updated our website and produced guidance (PDF 2.1 MB) for you to understand and comply with these requirements, including an example of what to include in your annual CSSF report.
The new Ministerial Direction requires more detailed reporting, so your annual report will need to detail the types of services offered within the different CSSF categories. This improves visibility of the services funded via the CSSF. Please ensure you capture this additional detail in your 2019 annual report.
CSSF information available on provider websites
The new Ministerial Direction also adds the requirement for providers to publish core CSSF information on their websites.
This requirement was originally introduced as a funding condition in 2017, and while most providers have basic CSSF information, such as the fee amount and services it funds, improvements can be made across the board to improve transparency in the fee-setting arrangements. It should be clear how the current fee and services were determined, and students should be well informed about how they can provide feedback or engage in future CSSF decision-making.
Fees Free and CSSFs
As part of Fees Free reporting to the TEC, TEOs are required to self-attest that they comply with the CSSF Ministerial Direction. We review all CSSFs to verify whether they comply with these requirements.
This is particularly important as we won’t make fees-free payments for CSSFs that relate to eligible learners if you are not compliant with the Ministerial Direction.
If you receive “Query” messages for any CSSF entry in your Fees Free reporting, please email cssf@tec.govt.nz to discuss the fee.
TEI Governance Guide updates
In December 2019 we released a revamped and updated version of the Governance Guide.
The Guide provides council members of tertiary education institutions (TEIs) with an introduction to the tertiary education sector.  It provides information for everyone interested in the contribution of good governance to organisational sustainability and effective performance.
The Guide also includes the legislative framework for TEIs and their councils, information on key central agencies, an overview of the Tertiary Education Strategy, the Investment Plan process, and information on accountability and performance monitoring of TEIs.
The online version of this Guide includes hyperlinks to relevant legislation, eg, sections of the Education Act 1989.
You will find the latest version of the Guide on the Tertiary Education Commission website.
A new version of the Guide will be available when the changes in the Education (Vocational Education and Training Reform) Amendment Bill come into effect on 1 April 2020.
Your comments and suggestions are valuable. Any feedback can be emailed to governance@tec.govt.nz
COVID-19 information
The TEC is working closely with other education agencies, peak bodies and education provider representatives to support the sector and to ensure tertiary education providers get the latest information on COVID-19.
We are closely monitoring the potential financial impacts on the sector of both the current travel restrictions and potential future scenarios. Please engage with us directly if you have any concerns about your financial position over the short and medium term.
We advise students, their families and whānau, and providers to keep updated on education developments through the Ministry of Education’s website.
Tertiary education sector information on COVID-19 can be found on the TEC’s website.
For health advice, please refer to the Ministry of Health’s website.
You can get COVID-19 information from government agencies in one location on the New Zealand Government’s website.