Funding and payments | Tertiary Education Commission
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Disaggregated courses must add up to the total credit value of the qualification, but unlike Student Achievement Component (SAC) funding, Youth Guarantee is not funded at the course level.
For a trades qualification at levels 2 and 3 the funding calculation is: $14,300 x qualification EFTS value. Trades qualifications include NCEA where at least 50% of the courses are classified under SAC course classification codes – alphabetic and numeric – as C1, L1, or P1.
For a non-trades qualification the funding calculation is: $10,800 x qualification EFTS value. Non-trade qualifications include NCEA where less than 50% of the courses are classified as trades courses.
Specifically, we calculate a TEO’s consumed funding using:
- the number of valid domestic student enrolments, measured by equivalent full-time students (EFTS), and
- the qualifications, and their component courses, in which a valid domestic student is enrolled.
To calculate a TEO’s consumed Youth Guarantee funding, we use the following elements:
- the metric (EFTS value)
- course classification
- qualification funding category (trades/non-trades which may also depend on level on the NZQF), and
- qualification funding rate.
Example:
Step |
Funding calculation |
Example |
1 |
Assign the qualification an EFTS value |
A TEO’s NZ2104 New Zealand Certificate in Food and Beverage (Level 3) obtained through half a year of academic year study has a value of 0.5 EFTS. Note: We use 120 credits per EFTS for all qualifications in STEO. |
2 |
Assign the qualification a funding rate |
This is determined in conjunction with us. The rate will be trade or non-trade, depending on whether the majority of course EFTS are trades or non-trades. |
3 |
Disaggregate the qualification into courses Calculate the EFTS factor of each course (Note: We use 120 credits per EFTS for all courses in STEO) Classify the courses |
The programme is disaggregated into three courses. Each course has an EFTS factor of 0.1667 EFTS. The Course Classification Guide (PDF, 860 Kb) is used to classify the subject matter of these courses as # 22 (Trades 2 – all trades courses other than for industry training trainees). |
4 |
Apply the funding category |
Refer to Funding category (CATEGORY) under Information about courses on the Qualifications and courses webpage: The funding category alphabetic code is used to determine the category of the course as P (Trades2[#22], Vocational Training for Industry[22.1]. The funding category numeric code is used to determine the category of the course as 1 (non-degree course with no research requirement, including certificates and diplomas). |
5 |
Apply funding rates |
The funding rate for provision towards a trade qualification, including pastoral care and transport, is $14,300 per EFTS. |
6 |
Multiply the funding rate by the number of valid enrolments |
For 10 students on each of the three courses, each course attracts Youth Guarantee funding of $23,838.1 (excl. GST) calculated as 0.1667 x $14,300 *10. This means the programme attracts $71,514.30 funding if 10 students enrol in each of the three programme courses. Note: From 2019, for level 1 and 2 qualifications, we pay a 20% premium on top after each Single Data Return (SDR). This is to acknowledge our definition of an EFTS being 100 credits for level 1 and 2 qualification delivery. |
Calculating funding for level 1 and 2 qualification provision
From 2019 onwards, we recognise that 100 credits is a full-time, full-year workload for a student enrolled in a level 1 or 2 Youth Guarantee qualification (one EFTS).
As a result TEOs will receive 20% more funding for delivery of EFTS towards level 1 and 2 qualifications.
The amount paid will be determined by the volume of levels 1-3 course enrolment EFTS that lead towards level 1 and 2 Youth Guarantee qualifications, as reported in the SDR.
We will fund up to 120 credits worth of delivery per student in a calendar year
You must not enroll a student in more than:
- 1.2 EFTS (120 credits) for programmes leading to level 1 and/or 2 Youth Guarantee qualifications; and
- 1.0 EFTS (120 credits) for programmes leading to level 3 Youth Guarantee qualifications.
See Condition: Student eligibility under Use of YG Fund Funding for eligible students.
We will continue to fund up to 120 credits worth of delivery per student in a calendar year.
Example: In 2019 a new Youth Guarantee student enrolls in both the 60 credit National Certificate in Foundation Skills (Level 2) and the 65 credit New Zealand Certificate in Apiculture (Level 3). We will fund 120 credits worth of delivery, comprising 0.6 level 2 EFTS and 0.5 level 3 EFTS.
Student’s 2019 enrolments |
Credits |
2019 EFTS |
Credits ‘funded’ |
|||
Definition |
Delivered |
Reported in the SDR |
Funded |
|||
New Zealand Certificate in Foundation Skills (Level 2) |
60 |
100 credits |
0.600 | 0.500 | 0.600* |
60 |
New Zealand Certificate in Apiculture (Level 3) |
65 |
120 credits |
0.542 | 0.542 | 0.500** |
60 |
Total
|
125 |
N/A |
1.142 |
1.042 |
1.100 |
120 |
* 0.500 level 2 EFTS reported in the SDR plus the 20% premium = 0.600 level 2 EFTS funded.
** Because the student has been funded for 60 credits at level 2, we only fund up to 60 credits for the level 3 qualification (0.5 EFTS).
Also see Reporting under Monitoring and reporting.
Recognition of prior learning / prior achievement
Recognition of learning / prior achievement relates to previous study or experience (prior achievement) relevant to a programme that a student is currently undertaking. It enables a student to proceed with his or her study without repeating aspects of the qualification previously studied, or re-learning skills the student has already achieved through past work or other experience.
Recognition of prior learning (RPL), and credit recognition and transfer (CRT), are forms of recognising learning / prior achievement. The New Zealand Qualifications Authority (NZQA) provides information and guidelines on recognition of learning / prior achievement for TEOs.
RPL and CRT for Youth Guarantee students
Students may have already some knowledge of, or achieved, some courses or course content prior to enrolment in a Youth Guarantee funded qualification.
The TEO must recognise this prior learning and adjust the courses in the student’s programme. The TEO must not claim Youth Guarantee funding for:
- recognising this prior learning, or
- delivering tuition where the student already has this prior learning (i.e. skills and/or knowledge).
See Condition: Recognised prior learning under Use of YG Fund Funding for eligible students.
We expect the TEO to engage with students at enrolment to determine whether they are likely to have existing knowledge, skills, and attributes that can contribute to the graduate outcomes of the qualification.
If the student has achieved course content previously, the TEO must work out the EFTS factor of the unit or achievement standards previously credited to the student (using the 120 credits per EFTS calculation). The TEO must then subtract this from the standard course EFTS factor. The revised EFTS factor is the value that the TEO should then submit in the enrolment file of the SDR, in the FACTOR field, for that student.
Re-enrolling a Youth Guarantee student
Where a Youth Guarantee student requires further study to complete their qualification, their study can only be to complete courses that they have not yet passed. This can include content not yet studied or content studied and assessed, but requiring a re-sit.
Note: For students who are 20 years old, see A student who turns 20 years old while enrolled is not eligible to re-enrol under Student eligibility.
For example:
A TEO enrols a student in all courses linked to a 60 credit (0.5 EFTS) level 3 qualification. The sum of the course EFTS factors is 0.5 EFTS.
The student passes/achieves 30 credits from the 60 credit course enrolments. The TEO is funded 0.5 EFTS, for the 60 credits of courses the student was enrolled in.
The TEO re-enrols the student in a second period of study for the remaining 30 credits not yet achieved. The TEO is funded 0.25 EFTS for the 30 credits of courses the student was re-enrolled in.
The student successfully completes the courses and is awarded the qualification.
The student will have received 0.75 EFTS worth of provision (90 credits), and the TEO will be funded for 0.75 EFTS delivery (0.5 + 0.25 EFTS) (assuming funding conditions are met for each course enrolment). Note: the TEO will report 0.25 EFTS (30 credits) unsuccessful course completions, and 0.5 EFTS (60 credits) successful course completions.
Calculating EFTS remaining vs consumed
To determine the exact value of the EFTS remaining for a returning student, the following formula should be used:
Qual EFTS value – (credits completed/total qual credits x qual EFTS value) = remaining EFTS |
For example: 0.5 – (30/60 x 0.5) = 0.5 – 0.25 = 0.25 remaining EFTS |
Notes:
You will need to ensure that when a student needs more time to complete their qualification, other students are enrolled to ensure you deliver fully on your mix of provision (MoP) EFTS commitment and consume all funding for the year.
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-enrol them and claim funding, the student is consuming additional EFTS towards their entitlements.
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