The Tertiary Education Commission is responsible for the allocation of all post-compulsory education funding of around $3 billion each year.
Most of this funding is provided in the government’s Budget through ‘Vote: Education.’
Occasionally, the Commission administers funding on behalf of other government agencies such as the Social Development Ministry or Immigration New Zealand.
Only eligible organisations can be funded.
TEC provides most funding through an Investment Plan, although there are some off-Plan contracts and funding agreements.
The Tertiary Education Strategy provides the overall framework within which funding decisions are made, ensuring that funding supports TEOs[1] to deliver on the government’s outcome priorities.
Under the Education Act 1989, the Tertiary Education Minister determines the design of the funding mechanisms used to fund Tertiary Education Organisations (TEOs)[2]. The funding system includes rules and conditions, policies and processes for providers.
The obligations
TEC requires each ITO to provide financial information each year on a template.
The template is a mechanism for TEC to fulfil its obligations under the Education Act 1989 (section 159YD) to monitor the financial performance of ITOs to ensure that funding is spent in accordance with the purpose for which it was allocated.
It also fulfils obligations under the Industry Training Act 1992 (section 7a) to monitor the extent to which ITOs are funded by industry, and their capability.
These obligations support the strengthening of the industry training sector by ensuring that ITOs that receive government funding are financially viable and are able to fulfil their statutory role.
This information is collected at least twice every year.
The template
The template contains an Instructions and Definitions sheet to assist with completion, and the Financial Performance Guidelines document provides additional information.
The template includes a Sign-Off and Process sheet that functions as the attestation of financial performance required by the TEC.
The due date for submission of the second template this year is today (December 15, 2012). The template includes year to date 2012 results.
TEC expects that this will include the period ending 31 October 2012.
2013 submission
In 2013, the template will be collected at least three times per year.
February 15, 2013: Indicative year-end 2012 and Board approved budget 2013
June 15, 2013: Audited actual 2012 and reforecast 2013
October 15, 2013: Year to Date and Reforecast 2013
Investment Managers will also work with individual ITOs to ascertain if more frequent reporting is required, for example, due to mergers or significant restructure.
Source: The Tertiary Education Commission
