General Plan
Guidance
for 2015 and 2016
Guidance for TEOs seeking
Plan-based funding from the TEC
from 1 January 2015
May 2014
The General Plan Guidance for 2015 and 2016: Guidance for TEOs seeking
Plan-based funding from the TEC from 1 January 2015 is a publication from the
Tertiary Education Commission (TEC).
Tertiary Education Commission
PO Box 27048
Wellington 6141
New Zealand
The electronic copy of this report is available from the TEC website:
http://www.tec.govt.nz
Copyright 2014
Contents
Introduction
5
Section 1: Context
6
Section 2: How the TEC wants TEOs to respond to the six priorities of the
TES
12
Section 3: Administrative information about Plans
24
Section 4: Requirements for TEIs
26
Appendix A: Gazette notice
27
ITP planning and accountability framework
University planning and accountability framework
36
41
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
4
Introduction
This Guidance sets out the expectations of the Tertiary Education Commission
(TEC) for tertiary education organisations (TEOs) submitting proposed
Investment Plans (Plans) in 2014 for funding approval from 1 January 2015.1
Please read it alongside the Tertiary Education Strategy 2014–2019 (TES) and
other relevant information on the TEC website.
TEOs seeking Student Achievement Component (SAC) Funding at Levels 1 and
2 of the New Zealand Qualifications Framework should also read the TEC’s SAC
Levels 1 and 2 Plan Guidance.
If necessary and appropriate, we will release Supplementary Plan Guidance
information later in 2014 to reflect any new Government policies, including any
Budget 2014 initiatives.
If you have questions about your proposed Plan, please contact your investment
manager, investment advisor or the TEC Sector Helpdesk.
1
Industry Training Organisations (ITOs) are currently midway through a two-year funding cycle
for 2014 and 2015. We expect to release further Plan Guidance in mid-2015 to support ITOs to
prepare proposed Plans for funding from 1 January 2016.
5
Section 1: Context
The Government’s TES emphasises the opportunity for New Zealand to develop
a tertiary education system that is more flexible, outward-facing and engaged. It
identifies six priorities for the tertiary system to change its direction or intensity to
achieve the outcomes sought by the Government and has a particular focus on
increasing the tertiary system’s contribution to economic growth.
The TEC’s core role is to give effect to the TES. Plan-based investment is our
biggest lever for doing this. This Guidance explains how we will use this lever in
2015–2016 and beyond to increase the tertiary sector’s contribution to the TES.
Moving to an investment approach
The TEC is working to create a world-leading tertiary education system that is
characterised by:

an increased proportion of the population with a tertiary qualification

higher-quality and more relevant research

more responsiveness to the needs of employers and learners.
A tertiary education system with those features will contribute to higher
educational attainment in New Zealand, which in turn is associated with a range
of positive outcomes, including better income and employment.
Over the current Plan round and the next one, we will take significant steps
toward an increased investment approach to tertiary education funding.
We will be using comprehensive information about areas of under-supply and
outcomes to work out how and where best to apply funding that delivers results
for New Zealand and provides greater certainty about the shifts that we want to
see.
Our future investment decisions will focus on supporting improved outcomes for
learners, employers, and communities and on improving the responsiveness of
the system to their needs. We will target our investments and monitoring on the
key factors (such as the aspiration and preparedness of students) that affect
participation, progression and achievement through to sustainable employment.
This is of particular relevance for those groups who have previously been underserved by the education system, and who will be increasingly important to our
country’s economic growth, including learners from Māori and Pasifika
communities.
We will build the information base and the tools so that all with an interest in
tertiary education can make informed decisions, so that:
6
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015

everyone who can benefit from tertiary education is able to take up the
opportunity to do so

students make informed investment choices of their own

there is a better match between the graduates produced by the system and
the skills the economy and our society need.
7
A high-performing tertiary education system
The TEC expects each TEO to contribute
to a high-performing system in
accordance with its characterisation
under relevant legislation.
In addition, the TEC expects each TEO to
focus on its strengths and carve out a
unique place for itself in the sector.
Learners at the centre of the
system
A high-performing tertiary education
system puts learners at the centre of the
system, providing them with clear access, and supporting them to succeed. We
will have achieved this when:

it is simple for learners to find pathways through the tertiary system and to
access good information to support decision-making about what and where to
study. In particular, this system would offer the following:
‒
prospective learners have access to high-quality careers advice and
good information about their employment prospects (especially for
vocational qualifications) before they make their enrolment decisions
‒
schools and TEOs work together to create clear local and regional
pathways for learners, from schooling through tertiary to employment
‒
TEOs engaged in vocational education work together to develop and
deliver vocational pathways and national qualifications that meet the
needs of learners, businesses, employers and industries
‒
TEOs collaborate to develop New Zealand qualifications and offer them
as they become available

TEOs collect feedback from learners and use it to improve the student
experience

learners have campus-based access to local foundation education, regional
vocational and generic diploma- and degree-level education, and selected
main national centres offer specialist degree and postgraduate programmes

overall levels of student participation and achievement are above the
Organisation for Economic Co-operation and Development (OECD) average
and Māori and Pasifika learners are culturally comfortable and achieve at
least on par with other learners, which is then reflected in better socioeconomic outcomes for Māori and Pasifika

TEOs seek and receive Mātauranga Māori quality assurance marks from
participating in the New Zealand Qualifications Authority’s Mātauranga Māori
Evaluative Quality Assurance programme.
8
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
In short, putting learners at the centre of the system means thinking about learner
outcomes, and how they are influenced by each learner’s journey before they
enter tertiary education, during their time in the system, and after they leave. This
means TEOs need to be outward-facing and connective.
Good governance and management
A high-performing tertiary education system is well-governed and well-managed
and delivers value for money. We will have achieved this when:

the TEC directs its investment toward high-performing and relevant TEOs, so
that taxpayers’ money is invested in the best education possible

TEOs have well-defined strategic plans that provide clear direction and reflect
the particular contribution they can make to the tertiary system (with clear
guidance from the TEC)

all TEOs engage in ongoing self-assessment which considers how well they
are preparing students to succeed in life beyond tertiary education and
focusses on those activities that contribute to the best outcomes for learners
and stakeholders

all TEOs are financially viable and sustainable, adjusting their business
models and strategic directions if the environment changes and collaborating
or consolidating as required to achieve impact, improve effectiveness and
operate efficiently and economically

all tertiary education institutions (TEIs) manage their people and assets to
ensure the best use of resources across the sector and build financial and
capital asset management capability, measured against sector standards of
good practice.
The right contribution of skills and knowledge
A high-performing tertiary education system is outward-facing and equips its
graduates with the right skills and knowledge to improve economic, social, and
environmental outcomes for all New Zealanders. We will have achieved this
when:

all New Zealanders have the foundation skills to engage fully in civil society,
and adult literacy and numeracy rates are in the top quartile of the OECD
ranking

all TEOs learn about the needs of the employment markets they feed and use
this information to manage their programme portfolios and to inform students
about likely employment prospects before they enrol

employers and TEOs have a shared understanding of the skills graduates
need to contribute to workplace productivity

graduates are equipped to continue to learn and adapt throughout their lives
to meet the economic, social, and environmental opportunities and
challenges of the future
9

skill shortages are rare

TEOs undertake high-quality research, and create knowledge used by
businesses, employers, industries, central and local government, and the
non-government sector to generate new capabilities and opportunities to
improve New Zealanders’ economic, social and environmental well-being and
advance human knowledge

local and regional communities view their local TEIs as key knowledge
resources for the community.
International impact
A high-performing tertiary education system is one that is internationally
recognised and engaged and produces internationally competent graduates. We
will have achieved this when:

TEOs produce graduates who can confidently and credibly operate in
countries culturally different to New Zealand

graduates in the domestic employment market apply their international
knowledge and understanding to support New Zealand businesses to grow
their export markets

international students choose to study in New Zealand because we offer highquality education and a great student experience, as well as pathways to
residency for students who gain valuable qualifications

international academics choose to work at New Zealand TEOs because we
offer the right mix of lifestyle benefits and professional opportunity, including
the opportunity to undertake world-leading research in specialist areas

offshore companies and research institutions choose to partner with
New Zealand TEOs.
Plan development
To help our development process towards an investment approach for the 2015–
2016 investment round, it is important that we understand what drives individual
TEO investment decisions. Proposed Plans will need to outline performance
stories, comprising:

the organisation’s mission and distinctive role within the overall network of
provision, including an articulation of its point of difference

the organisation’s strategic direction, including intended outcomes and the
activities and outputs that will contribute to these

how the organisation will measure its progress.
The strategic direction must also explain how the TEO intends to respond to the
Government’s TES priorities in the coming three years.
10
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
These requirements are set out in the Gazette notice.2
The Gazette notice sets out the criteria the TEC will use to assess proposed
Plans for funding approval. In line with the TES, from 2015 the focus will change
from educational performance to a more outcomes-based model. This also
reflects the fact that educational performance has now generally improved (and
where it has not, the TEC will continue to take action). Our investment decisions
will be increasingly driven by an assessment of the quality of the performance
story in each TEO’s Plan, and evidence of that TEO’s relative contribution and
demonstrated commitment to the outcomes we seek.
This may mean that a TEO that has performed well in terms of its educational
performance indicators may have funding reduced from 2015 if it has not made
as great a contribution to TES priorities as other TEOs or is unable to commit to
shifts in the future.
Proposed strategic conversations with the sector
The TEC will shortly seek to have strategic conversations with the sector about
how we can work together to achieve the maximum shift in four of the six TES
priorities where we need substantial change over the next few years.
Where appropriate, we will reflect the outcomes of these conversations in further
guidance to TEOs in mid-2014. This may include specific expectations
for particular subsectors.
Forecast learner demand for tertiary education
The Ministry of Education anticipates learner demand for tertiary education to be
largely stable from 2014 to 2018. Demand for vocational places is likely to shift
from provider-based to workplace-based learning as the economy grows and
more school leavers or graduates of foundation-level learning move into work
rather than enrolling in provider-based study at higher levels.
2
The Gazette notice also sets out requirements for the Summary of Activity and Performance
Commitments that are part of a TEO’s proposed Plan. TEOs should read these carefully. The
TEC will provide templates to capture information about a TEO’s intended mix of provision, its
subcontracting arrangements and its performance commitments.
11
Section 2: How the TEC wants TEOs to
respond to the six priorities of the TES
This section expands on what we seek from TEOs’ 2015–2016 Plans for each of
the six TES priorities, plus an overall priority on system performance.
We will continue to develop our performance framework, and identify and share
best practice, in partnership with the sector in the coming months. We will provide
further guidance as required in mid-2014.
1. Delivering skills for industry
TEOs need to increase their contribution to New Zealand’s economic productivity
through matching their provision to the skill needs of the employment market.
This means providing:

specific skills and knowledge for particular vocations

the general skills and knowledge that come from higher education

interpersonal and value-creating skills that graduates need at all levels to
continue to adapt and learn throughout their lives. This goes beyond
traditional ‘soft skills’ (for example, communication or teamwork) to include
advanced capabilities like emotional intelligence, self-management, creativity,
the ability to operate effectively across cultures, the ability to make sense of
and navigate an ambiguous situation, and the ability to direct one’s own ongoing learning.
For the tertiary system to produce graduates who can excel in the workplace,
TEOs and employers need to invest in deep, sustained, two-way relationships
where they work together to:

develop a shared understanding of what makes for a competent and
successful graduate

design educational experiences for learners that help them develop the right
skills and capabilities.
When this doesn’t happen, graduates can find they lack some of the skills
employers expect from them – even though tertiary providers might think the
graduate is well-prepared for work.
In 2015 and 2016, the TEC wants to invest in TEOs delivering tertiary education
at all levels that work directly with employers to do things such as:

provide learning environments that simulate the workplace or involve projectbased learning on ‘real’ problems

create internship opportunities for students to learn on the job while they
study
12
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015

make sure academic teaching staff are up to date with changing workplace
realities, including technological changes

share facilities and capital equipment with industry to the mutual advantage of
students, researchers and employees

invite industry professionals to be involved in course and programme
development where appropriate

provide graduates with structured opportunities to develop soft skills and (at
higher levels of study) advanced capabilities, such as the ability to
understand and address novel problems

align provision to the workplace productivity objectives of industry

track their graduates’ post-study outcomes and use that information to inform
programme development and enrolment management

tailor provision where there is a mismatch between the skills employers need
and those that graduates offer in relation to both hard and soft skills or
capabilities.
We will work with TEOs in the coming months to identify and share best practice
in strengthening TEO-employer connections.
We expect TEOs to use information about national and regional employment
market demand, as well as information drawn from other sources such as
workshops with employers, to plan their provision in vocational areas at all levels.
The TEC will be supporting this by working with the Ministry of Business,
Innovation and Employment to point TEOs toward some key information
resources. These may include the Ministry of Business, Innovation and
Employment’s Short-Term Employment Prospects report, as well as industryspecific workforce information such as:

health workforce service forecasts released by Health Workforce New
Zealand

the Canterbury construction sector workforce plan developed by the
Construction Sector Leaders Group (supported by the Ministry of Business,
Innovation and Employment and the Canterbury Earthquake Recovery
Authority)

teacher demand forecasts from the Ministry of Education

industry peak body reports, such as the National Engineering Education Plan
report from Institute of Professional Engineers New Zealand (IPENZ).
TEOs with a strong focus on a particular industry should explain in their Plans
how they have engaged with that industry on workforce needs and how they
intend to respond, and what prior success they can point to with regard to
employment outcomes.
The TEC will be taking a network view of its investment in some key industry
areas, increasingly shifting funding toward provision that addresses employment
13
market skill shortage (for example, engineering, and information and
communications technology (ICT) at degree level) or skills that align with the
Government’s economic goals in its Business Growth Agenda.
We have signalled above (page 9) that we intend to have strategic conversations
with the sector to achieve the maximum shift in this priority in 2015–2016.
2. Getting at-risk young people into a career
The tertiary education system needs to do a better job of supporting young
people, especially those at risk of disengaging from education, to get the skills
they need to enjoy meaningful and rewarding working lives. The TES focuses on
young people,
aged 20–24, who are Not in Employment, Education or Training (NEET), but it
notes the importance of reaching out to all young learners, including those in lowskilled jobs without career paths, to engage them in tertiary education.
In recent years the Government has made policy changes to support at-risk
young people to upskill and prepare for good careers. Two of the ‘Better Public
Services’ targets address this objective by setting goals that by 2017: 1) 85% of
18-year-olds will have NCEA level 2 or an equivalent qualification, and 2) 55% of
25-to-34-year-olds will have a qualification at NZQF level 4 or above.
In 2015 and 2016, the TEC wants to fund TEOs that reach out to at-risk young
people – by working with schools, communities, and employers – and support
them to set and achieve tertiary education goals. As per the TEC’s Youth and
Transitions Framework, we want relevant TEOs’ new Plans to:

include clear and challenging expectations for youth and transitioning
learners

include reference to planned engagement in secondary tertiary programmes
and how these programmes will foster achievement, describing how provision
will be made for experiential learning, including learning in STEM (science,
technology, engineering and mathematics) subjects

set out how providers have already or intend to engage in Youth Guarantee
secondary tertiary programmes and provider networks, making reference to
any Memoranda of Understanding, consortium arrangements and
collaborative ventures

articulate how learners can progress locally and nationally

include reference to provision for student pastoral care systems and planned
tutor professional development to support the needs of foundation-level
learners

articulate how provision will be made for accessible, free online careers,
training and employment-related information, as well as online access to all
other TEO and ITO qualifications-related information
14
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015

reference how providers will include the tertiary careers benchmarks as a
planning and self-review tool

show how the TEO it delivers secondary tertiary programmes and levels 1
and 2 qualifications that have been aligned to and include Vocational
Pathways credits.
3. Boosting achievement of Māori and Pasifika
The TEC has very high expectations for Māori and Pasifika tertiary education
participation and achievement in fields and modes that lead to higher-earning
jobs and stronger career pathways. We expect TEOs to share these high
expectations.
Māori and Pasifika learners should be participating and achieving in tertiary
education at least on par with other learners. We introduced hard-wired Plan
Commitments for all TEOs in 2012, and these performance expectations will
continue to rise until we achieve parity. TEOs will be expected to provide
information in Plans that track their existing and planned performance
commitments against the success indicators for Māori and Pasifika in the TES.
We expect TEOs to review, evaluate and demonstrate how successful equity
initiatives are being scaled up.
The TEC’s funding shifts between providers in 2015 and 2016 will be informed by
how well TEOs are responding to the needs of Māori and Pasifika learners,
particularly in regions with large cohorts. High-performing TEOs can expect to
be eligible for funding increases when there is unmet demand. Poorly
performing TEOs can expect to lose funding over time. We will seek to base
decisions for future funding rounds on data about graduates’ outcomes,
Educational Performance Indicator data and other TEO information on successful
outcomes.
We will also look for evidence in Plans that providers of Initial Teacher Education
and professional development for teachers are:

helping to raise the aspirations and improve the outcomes of Māori and
Pasifika across the whole education system

creating clearer pathways for Māori-medium education (education delivered
in Māori language) in regions, and increasing the number of Māori-medium
teachers, and

contributing to the development of a teaching workforce that reflects
New Zealand’s changing demographics.
The desired shift in this priority for 2015–2016 will also be discussed during our
strategic conversations with the sector.
15
Boosting achievement for Māori learners
TEOs will be expected to explicitly respond to the four tertiary focus areas of Ka
Hikitia (the Government’s Māori education success strategy) in their Plans:
1.
Māori learners participate and achieve on par with other learners in tertiary
education, particularly at higher levels
2.
Māori learners attain the skills, knowledge and qualifications needed to
participate at all levels of the workforce
3.
Grow research and development of Mātauranga Māori, and
4.
Increase participation and completion in Māori language courses at higher
levels, in particular to improve the quality of Māori language teaching and
provision.
Where appropriate, TEOs will be expected to provide evidence in their Plans of a
strong implementation approach to support success for Māori learners, including,
but not limited to:

organisation-wide accountability and supporting Māori strategies

a strong focus on strengths-based and Mātauranga Māori pedagogy,
programmes, resourcing and staffing capability

providing high-quality information for Māori learners/whānau on subject
choices, pre-entry requirements, fees, student debt and employment
outcomes and returns to study

engaging with whare kura, Māori boarding schools and schools with high
numbers of Māori learners in areas of high deprivation

strategies for increasing the participation and success of Māori learners in
qualifications linked to jobs in higher-earning, higher-skill, high-growth
industries, such as engineering and business management

collaborative partnerships with iwi, hapū and wānanga to actively grow and
advance Mātauranga Māori research and research capability, and

Te reo Māori pathways to higher levels and improving initial teacher
education for te reo Māori and Māori-medium teachers, including by
collaborating with wānanga, iwi and Māori groups as relevant.
See Doing Better for Māori in Tertiary Settings, available on the TEC website.
TEOs should also explain, if relevant, how their proposed activities will contribute
to He Kai Kei Aku Ringa, the Crown and Māori Economic Growth Strategy, and
how their delivery will contribute to whānau, hapū and iwi prosperity through the
use and stewardship of Māori assets.
16
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Boosting achievement for Pasifika learners
The TEC has clear expectations in its Pasifika Framework for TEOs to obtain
meaningful and substantial improvements in participation and achievement
outcomes for Pasifika, particularly at higher levels. To support this, Plans should:

demonstrate a focus on effectively engaging with Pasifika learners, families
and communities

set out strategies to improve performance on the transitions of Pasifika
learners from secondary to tertiary education, as well as transitions into
higher levels of education

include relevant, accessible pathways and staircasing opportunities that
match Pasifika learners’ needs and interests

set out strategies for increasing the participation and success of Pasifika
learners in qualifications linked to jobs in higher-earning, higher-skill, highgrowth industry sectors, such as engineering and business management

include challenging performance commitment targets to improve Pasifika
participation and achievement at all levels, in line with previously agreed
pathways

clearly define the actions planned for obtaining educational participation and
achievement parity for Pasifika learners at all levels.
The TEC’s Doing Better for Pasifika in Tertiary Settings research report identifies
key inter-related influences and common barriers that shape Pasifika learners’
tertiary transition decisions and experiences. TEOs will need to use the success
indicators in the report to develop and implement an understanding of what is
needed to raise educational performance for Pasifika learners.
4. Improving adult literacy and numeracy
Note: TEOs delivering SAC-funded provision at Levels 1 and 2 should also read
the TEC’s SAC Levels 1 and 2 Plan Guidance for more information about literacy
and numeracy requirements for this provision.
In 2014, we will be working with the sector to achieve a step-change in the
performance and accountability settings for literacy and numeracy. We want
providers to assess and continuously improve the effectiveness of their literacy
and numeracy delivery to foundation learners, especially in the SAC and Youth
Guarantee funds. To this end:

We are monitoring use of the Adult Literacy and Numeracy Assessment Tool
(the Tool) in foundation courses, including (from 2015) te reo Māori and
English for Speakers of Other Languages (ESOL) courses. We will refer to
data on Tool usage and, increasingly, learner gain to inform our investment
decisions.
17

We expect TEOs to tell us how they are using, or intend to use, Tool data to
improve the effectiveness of their literacy and numeracy delivery to
foundation learners in their new Plans.

We will identify, during 2014, appropriate performance benchmarks for
learner gains, based on Tool data, and communicate these to TEOs. The
benchmarks will be the basis of new performance commitments from either
2015 or 2016.

From 2015, it is a likely requirement of SAC and Youth Guarantee funding
that tutors at levels 1 and 2 have gained the National Certificate in Adult
Literacy Educator (Vocational or Educator). If this requirement is confirmed
we will expect TEOs to show they can meet it.
TEOs delivering foundation-level education should also familiarise themselves
with the TEC’s 2012 Adult Literacy and Numeracy Implementation Strategy.3
5. Strengthening research-based institutions
The TES emphasises the importance of TEIs continuing to increase research
excellence and build greater connections to the innovation system. Collaborating
with enterprise to support commercial innovation is particularly important to
increase the economic impact of tertiary research. This is in addition to the
existing large contribution TEIs make to New Zealand’s human capital through
their research-led teaching at higher levels.
The Government has made substantial investments in New Zealand’s innovation
system, including increasing the Performance-Based Research Fund,
establishing Callaghan Innovation, funding the National Science Challenges,
steering more contestable government funding toward applied and industry-led
research, increasing the number of engineering graduates and making more
funding available for Centres of Research Excellence. Building a high-performing,
well-integrated innovation system will be central to leveraging these investments
to maximise their economic and social returns to New Zealand.
We expect TEIs with research as a core activity to show how they will identify,
scale and build upon successful initiatives in their Plans to:

grow research capability in areas that create economic and social value for
New Zealand, including by producing skilled graduates at degree-level and
above, and by recruiting and developing new researchers to ensure
sustainability

continue to build excellence and fitness for purpose in all research and
related activities, whether it is basic research, working with industry in product
development, or commercialising ideas

benchmark their research productivity against international standards
3
18
While the Implementation Strategy makes reference to the previous Tertiary Education Strategy
2010–2015, it aligns closely with the new TES and remains current.
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015

link research to educational provision, so that students are in touch with
leading-edge research

exchange research knowledge with commercial end-users, particularly in
priority growth sectors and with internationalising firms

collaborate with each other, iwi/hapū/whānau and end-users, and commit
resources nationally and internationally to increase the Mātauranga Māori
knowledge base and Māori research capability, focusing particularly on
building the Māori economy

foster greater academic and student collaboration with enterprise and the
wider innovation system (for example, commercial activities being recognised
in career progression criteria, industry-focused student research projects and
internships)

promote research excellence, knowledge exchange and collaboration as
central to the institution’s mission and role, reflected in strategies and internal
policies.
We also want all research-based TEIs to collaborate with each other and with
other research organisations, including Crown Research Institutes, to make the
most of nationwide networks and minimise duplication.
All research-based TEI strategies should describe how they will improve the
quality and quantity of research outputs; increase knowledge exchange and
connections to the innovation system; build research capability; and demonstrate
how their research specialisations are differentiated within New Zealand’s wider
research and innovation system. They must also show how their outputs meet
the objectives of the Performance-Based Research Fund.
All research-based TEIs will need to demonstrate greater accountability around
their research activities and how these contribute to their strategic direction and
to the broader research goals and outcomes sought by the TES. The TEC will
work with the sector and with the Ministry of Business, Innovation and
Employment from 2014 to explore shared approaches to developing a monitoring
and accountability framework for research.
The target shifts in relation to this priority which we would like to see by 2015–
2016 will be discussed during our strategic conversations with the sector (see
page 9).
6. Growing international linkages
The TES reflects the Government’s goals for international education, as
expressed in the Leadership Statement for International Education, emphasising
not only the importance of producing domestic graduates who can operate in a
global marketplace, but also attracting international students who bring revenue
and cultural capital to New Zealand and act as business ambassadors for us
when they return home.
19
In the next Plan period, we encourage TEOs to step up their engagement in
international education activities that support their core business onshore and,
where valuable, offshore. TEOs operating in this space need to align their
activities with the goals of the Leadership Statement in a way that:

supports their core business, including international core business, and builds
income streams connected to the TEO’s educational mission both onshore
and offshore

generates educational benefits for domestic and international students

maximises collaborative impact

generates wider economic and social benefits for New Zealand.
We want to see TEOs working, individually and collaborating with other TEOs, to:

increase their networks, collaboration and joint ventures with international
companies and institutions focused on research and innovation, particularly in
areas of importance to New Zealand

integrate international students and international topics into their programmes
and curricula to generate academic and interpersonal benefits for students
and produce graduates capable of thriving in a global context

work with other education providers, especially secondary schools (in New
Zealand and offshore) to create pathways for international students into and
through the tertiary system

encourage international students to remain in New Zealand for further
education or employment.
The TEC is working with Education New Zealand, the Ministry of Education, the
New Zealand Qualifications Authority, and the Ministry of Business, Innovation
and Employment to ensure effective alignment across agencies. We will discuss
with each TEO its planned international equivalent full-time students (EFTS) and
related initiatives as part of engagement over the development of a Plan.
The target shifts in relation to this priority which we would like to see by 2015–
2016 will be discussed during our strategic conversations with the sector (see
page 9).
System expectations
A shift of focus from attainment to outcomes
The educational performance of the system has improved substantially in shifting
its focus from inputs toward educational attainment. The focus of the new TES is
how the system can be more outward-looking and more responsive to the needs
of learners, industry and communities, and demographic changes.
20
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
The TEC expects to see TEOs working together to develop pathways for learners
that lead to positive outcomes, and building more effective relationships with
industry and communities. The TEC is beginning to consider how we might best
support these activities.
Information about education outcomes, particularly learners’ employment
outcomes, is more readily available, through central sources such as the Ministry
of Education’s Moving On Up report and the Ministry of Business, Innovation and
Employment’s Occupation Outlook report, and through TEO-initiated information
collection supported by technology and social media.
The TEC expects TEOs to use outcomes information as part of internal planning
to understand and improve on performance. The TEC will use this information,
and information on how well the system is meeting the needs of learners,
industry and communities, in its investment decisions.
The TEC will continue to work with TEOs during 2014 and beyond to consider
how we can develop a collaborative approach to outcomes measurement, both
for learners and for TEOs’ other activities, particularly research. The proposed
strategic conversations with the sector will provide an early opportunity for this.
Thinking of the future
Tertiary education is a major enabler of economic competitiveness in an
increasingly knowledge-driven global economy. High-quality tertiary education is
a vital determinant of a country’s well-being and there is an imperative for
countries to raise employment skills, sustain a globally competitive research
base, and improve knowledge dissemination to the benefit of society.
The TEC expects TEOs to engage broadly and deeply with their stakeholders to
gain a shared understanding of future skill and knowledge needs and use that
intelligence to plan future provision.
A continued focus on system efficiency
The tertiary education system needs to continue to become more efficient to
further improve outcomes for learners and contribute to economic growth within a
constrained fiscal environment.
TEOs can contribute to system efficiency by carefully considering their missions
and roles within a complementary and comprehensive network of provision
nationally and regionally. This means:

collaborating with other TEOs to ensure foundation and vocational education
is available to all learners nationwide, including in places costly to service or
for learners who find it difficult to participate in campus- and semester-based
provision

identifying and building on specialisation areas that lead to positive outcomes
for learners
21

exiting provision where there is duplication and other TEOs with greater
strength.
The TEC will engage with TEOs during 2014 to identify strategic shifts and set
performance commitments for 2015 and 2016 that will reward TEOs for pursuing
their mission and delivering on their point of difference.
The TEC expects TEOs to explore ways to increase efficiencies through shared
services, infrastructure and other collaboration, such as partnerships.
The impact of technological change
The latest developments in mobile technologies and data analytics are starting to
impact tertiary teaching and learning:

mobile technologies provide more flexible and personalised learning options,
allowing self-paced ‘just in time’ learning anywhere

data analytics allow TEOs to better manage an unprecedented amount of
student-generated learning data to provide more timely, targeted, and
effective interventions that contribute to improved student performance and
outcomes

e-learning, including massive open online courses (MOOCs) and Open
Education Resources, provide opportunities to lift the productivity of tertiary
education.
All TEOs should consider the opportunities and risks of technology-supported
delivery models, which should be reflected in their Plans, as well as in their
capital investment and long-term property plans.
Additional requirements for Plans from 2015
Information for learners
In its Plan Guidance for 2013 and 2014 (March 2012) the TEC signalled the
expectation that, from 2013, TEOs would publish better information to inform
learners’ enrolment decisions, with an initial focus on vocational qualifications.
During 2012 and 2013, the TEC investigated the information needs of
prospective students. This included meeting with sector representatives,
consulting with current and prospective students.
We will be consulting with TEOs on the information to be published and the
method for implementation. Following the consultation process, the TEC will
issue a specification for publishing information.
22
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Consultation with Social Sector Trials
The TEC expects all TEOs delivering provision in areas covered by the Social
Sector Trials to demonstrate they have consulted with Trial Leads in the
development of their Plans. For more information about the Trials, and contact
details for Trial Leads, go to: the Ministry of Social Development website.
Collection of additional information about areas of priority
investment
The TEC is likely to continue to ask TEOs to provide additional information about
areas of investment of high priority to the Government. In 2015 and 2016, this is
likely to include engineering, ICT, and primary industries. We will provide more
guidance to relevant TEOs when we know what additional information we need to
collect.
Collection of information for ACE in Communities and ACE
in Schools funding
From now on, TEOs seeking ACE in Communities or ACE in Schools funding will
need to provide information in their Plans about their intended ACE delivery. The
TEO’s performance story in the Strategic Intent section of its Plan should include
brief information about:

how its intended ACE delivery will meet the Government’s priorities and
respond to the needs of the TEO’s community

any involvement the TEO has with other ACE providers

how the TEO maintains its ACE quality assurance arrangements, including
any organisation and staff competency and capability building, particularly
where supported by ACE Professional Development funding.
The TEO must also fill in a TEC spreadsheet showing its intended ACE learner
numbers by course (as part of the ‘Summary of Activity’ section).
23
Section 3: Administrative information
about Plans
For more information, please check the TEC website or contact your investment
manager, investment advisor or the TEC Sector Helpdesk.
Who must submit a proposed Plan?
Most TEC funds are administered through Plans. To be considered for funding
through an on-Plan fund, a TEO must submit a proposed Plan to the TEC.
A small number of funds are administered off-Plan and these funds have
separate application and monitoring requirements. The Fund Finder on our
website provides details for each fund, including whether the fund is on- or offPlan.
Duration of Plans
The duration of the TEC’s funding approval for Plans is set by funding
determinations released by the Minister for Tertiary Education, Skills and
Employment under section 159L of the Education Act 1989.
From 1 January 2015, the TEC may approve funding for Plans for all TEOs
(including private training establishments (PTEs), historically only receiving oneyear Plan funding approvals) for up to two years. This change will reduce
compliance costs for PTEs and free up the TEC staff to engage more intensively
with them.
The duration of funding approval will depend both on the TEC’s confidence in the
TEO’s internal capability and in the stability of the TEO’s planning environment.
We expect all TEOs’ Plans to reflect a three-year planning horizon (2015–2017).
24
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Timelines for developing a Plan
The following timeline sets out the key milestones and target dates for the 2014
Plan round. The Plan submission deadline is 31 July 2014 (for PTEs) and 31
August 2014 (for all other TEOs).
Activity
Indicative timing
TEC releases SAC Levels 1 and 2 Plan Guidance
Late February 2014
TEC publishes Gazette notice: Education (Proposed Investment
Plans: Requirements, Content, Submission, and Assessment; and
Plan Summaries) Notice 2014
April 2014
TEC releases General Plan Guidance to TEOs (this document)
6 May 2014
Deadline for TEOs to submit applications for the SAC levels 1 and 2
competitive process
14 May 2014
Government announces Budget 2014
15 May 2014
TEC releases Supplementary Plan Guidance as required to reflect
any policy or Budget changes (as required)
June 2014
TEC advises TEOs of indicative funding allocations from the SAC
levels 1 and 2 competitive pool for 2015 and 2016
June 2014
Plan engagement: TEC discusses performance information,
indicative allocations and proposed Plans with TEOs
May to September;
deadline for Plans to be
submitted by 31 July (for
PTEs) or 31 August (all
other TEOs)
TEOs submit their proposed Plans to the TEC
TEC assesses proposed Plans
TEC Board makes final funding decisions for all Plan-based funding,
including confirmation of competitive SAC levels 1 and 2 funding
October/November 2014
TEOs are notified of final funding decisions via Plan funding
approval letters
November/December
2014
First payments made against Plans; Plan delivery begins
January 2015
Can a Plan be changed once it has received funding
approval?
A Plan may require changes for a number of reasons during its period of funding
approval. TEOs should contact their investment manager or investment advisor if
they are considering changes.
Amendments that do not relate to funding may not require approval from the TEC
but TEOs should still advise the TEC of any proposed changes. Significant
amendments, including any change that could affect eligibility for funding, require
the TEC’s approval. If the changes are substantial, a TEO can request to submit
a replacement Plan.
The TEC may also initiate amendments to Plans over the Plan period. For
example, we will actively monitor demand for priority trades related to the
Canterbury rebuild and seek to adjust delivery where demand varies from
forecasts.
25
Section 4: Requirements for TEIs
Planning and reporting on outcomes
The Education (Proposed Investment Plans: Requirements, Content, Submission
and Assessment; and Plan Summaries) Notice 2014 sets out the TEC’s
expectations for TEIs for planning and reporting on outcomes.
The Education Act 1989 (section 159P) requires TEIs to describe the outcomes
that they propose to achieve and how these outcomes will be measured in their
Plans. As per the Gazette notice, we expect TEIs (and other TEOs) to do this by
including a clear and structured ‘performance story’ of how their core activities
contribute to the outcomes.
The TEC has worked with each TEI subsector to develop performance and
planning and accountability frameworks that include:

an outcomes hierarchy that identifies key TEI inputs, processes and outputs
and how these contribute to intended outcomes

where possible, agreed performance indicators for each part of the
framework.
These subsector frameworks should help each TEI to develop a performance
story capturing the distinctive characteristics of its mission and role.
Statement of Service Performance
Section 220(2A)(f) of the Education Act 1989 requires each TEI to include a
Statement of Service Performance (SSP) reporting on performance against its
Plan in its Annual Report.
The Education (Proposed Investment Plans: Requirements, Content, Submission
and Assessment; and Plan Summaries) Notice 2014 sets out the TEC’s
expectations regarding forecast SSPs to be included in TEIs’ Plans. It notes that
the forecast SSP should:

be prepared in accordance with Generally Accepted Accounting Practice,
including reporting costs summarised by key output classes and areas

reflect the full scope of the institution’s activities

focus on the outputs and services of the institution

include measures and evidence about the quality of these outputs and
services.
26
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Appendix A: Gazette notice
The Education (Proposed Investment Plans: Requirements, Content, Submission
and Assessment; and Plan Summaries) Notice 2014 overleaf sets out the TEC’s
requirements for proposed Plans under the relevant provisions of the Education
Act 1989.
In previous years, these requirements have been published in two different
Gazette notices, separating out the Plan Summary requirements. The information
has now been combined into a single Gazette notice. The requirements for Plan
Summaries (essentially that a TEO publish in its Plan Summary all the
information contained in its Plan, except anything that is commercially sensitive)
are unchanged from previous years.4
Changes since the draft Notice published in February 2014
The TEC published a draft of the Education (Proposed Investment Plans:
Requirements, Content, Submission and Assessment; and Plan Summaries)
Notice 2014 in its SAC Levels 1 and 2 Plan Guidance in February 2014.
At that time we were still consulting on two specific items: one on TEO research
strategies and the other on PTE Prudential Financial Standards. Both these items
have now been confirmed, with minor wording changes.
In addition to the minor wording change regarding TEO research strategies, there
are four differences between the final Gazette notice and the draft published in
February:

We have made it explicit that a TEO’s response to TES Priority 3 should
include reference to better employment outcomes for Māori and Pasifika (not
just educational achievement).

We have asked TEOs to include, in their Plan’s Strategic Intent section, an
explanation of how they have identified and responded to the needs of their
key stakeholders, including how they will report to those stakeholders on
progress.

We have added a requirement that TEOs seeking ACE funding provide us
with information about their intended provision as part of their Summary of
Activity.

We have been explicit about our expectation that, to meet Generally
Accepted Accounting Practice, a TEI’s forecast SSP should include reporting
of costs summarised by key output classes and areas.

The timelines table has been updated (see page 24 for updated table).
4
https://gazette.govt.nz/notice/id/2014-au2460.
The list of TEOs the TEC exempts (using its power under section 159U of the Education Act
1989) from the requirement to submit a proposed Plan is no longer included in the Gazette
notice; instead, this information is now provided on the TEC’s website.
27
For the avoidance of doubt, none of these changes could reasonably be thought
to affect TEOs’ applications for, or the TEC’s assessment of, competitive SAC
levels 1 and 2 funding.
Gazette notice: Education (Proposed Investment
Plans: Requirements, Content, Submission and
Assessment; and Plan Summaries) Notice 2014
24th April 2014
PURSUANT to sections 159R, 159Y and 159YO of the Education Act 1989, the
Tertiary Education Commission (TEC) gives the following notice:
Title
This notice may be cited as the Education (Proposed Investment Plans:
Requirements, Content, Submission and Assessment; and Plan Summaries)
Notice 2014.
Commencement
This notice applies from the date of its publication.
Application
This notice revokes and replaces the following notices:

the Education (Proposed Investment Plans: Requirements, Content,
Submission and Assessment) Notice 2012 No. 2;5 and

the Education (Proposed Investment Plans: Requirements, Content,
Submission and Assessment) Notice 2013;6 and

the Education (Matters That An Organisation That Has a Plan Must Include in
a Plan Summary) Notice.7
Introduction
A number of the funding mechanisms determined by the Minister for Tertiary
Education Skills and Employment under section 159L of the Education Act 1989
specify that the TEC must pay funding under a Plan.
Therefore, to be eligible to access TEC funding under those funding mechanisms
from 2014 onwards, all tertiary education organisations (TEOs) are required to
5
New Zealand Gazette, 28 June 2012, No. 73, page 2076.
6
New Zealand Gazette, 13 June 2013, No. 74, page 1985.
7
New Zealand Gazette, 29 March 2012, No. 37, page 1111.
28
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
submit a proposed Plan (unless the TEO has been identified on the TEC’s
website as being exempted by the TEC under section 159U of the Education Act
1989 from the requirement to submit a proposed Plan).
The TEC may decide to fund the tertiary education programmes and activities
described in a proposed Plan submitted by a TEO for a period of up to three
years.
Previous allocation of TEC funding does not entitle a TEO to future funding at
any level from the TEC.
The amount of detail in the proposed Plan will depend on the size and complexity
of the TEO submitting the Plan.
Plan Content
The proposed Plan must include the following parts, each of which must clearly
connect and align with the others:
(i)
Strategic Intent
Performance story
The Strategic Intent section of a proposed Plan (previously called the Plan
Context) must outline the value proposition that the TEO will deliver over the
coming three years – its performance story – including:

the TEO’s mission and distinctive role within the overall network of provision;
and

its strategic direction, comprising:

‒
the TEO’s proposed outcomes for the coming three years, and why the
TEO has decided to seek those outcomes, given government priorities
and the needs of the TEO’s stakeholders; and
‒
what the TEO is going to do and produce (i.e. activities and outputs) over
the coming three years in order to achieve those outcomes, and why
those are the right things to do and produce given the TEO’s operating
environment, government priorities, the needs of its stakeholders, and
evidence about what works; and
how the TEO intends to measure its progress in achieving its strategic
direction, including what indicators it will use.
The Strategic Intent section of a TEO’s proposed Plan must also summarise:

how the TEO has identified the needs of its key stakeholders in the
community it serves, including:
‒
employers, businesses or industries relevant to the TEO’s areas of
delivery; and
29
‒
learners or prospective learners, in particular those who are Māori, or
Pasifika, or under the age of 25, or who have low levels of literacy,
language, and numeracy; and
‒
the communities that support Māori and Pasifika learners; and

how the TEO will respond to the needs of these key stakeholders; and

how the TEO will report to its key stakeholders on progress towards meeting
their needs; and

how the TEO has performed against the commitments it made in its last Plan
(for TEOs that have previously received Plan funding); and

the findings of any quality assurance reviews; and

any key changes the TEO is making that are likely to have a significant
impact on its educational performance or other outcomes; and

any key new activities the TEO is contemplating undertaking over the next
three years.
Contribution to Government priorities
The Strategic Intent section must also explain how the TEO intends to respond to
the Government’s priorities in the Tertiary Education Strategy 2014–2019 in the
coming three years. This must include information about how the TEO will:

identify and respond to the needs of industry and employers and publish
information to help inform enrolment choices (the “Delivering Skills for
Industry” priority of the Tertiary Education Strategy 2014–2019); and

attract and engage at-risk young people and support them to progress
through tertiary education and into sustainable work (“Getting at-risk young
people into a career”); and

attract and engage Māori and Pasifika students and support them to succeed
educationally and achieve better employment outcomes (“Boosting
achievement of Māori and Pasifika”); and

respond to the needs of adult foundation learners with literacy and numeracy
skills (“Improving adult literacy and numeracy”); and

if it is a research-based institution, manage its overall resources to support its
research strategy and implementation plan, and support innovation
(especially commercial innovation) through research, knowledge exchange,
and human capital development (“Strengthening research-based
institutions”); and

help to increase the value of international education to New Zealand
(“Growing international linkages”).
30
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Additional requirements for tertiary education institutions
Three additional requirements apply to the Strategic Intent section of proposed
Plans of tertiary education institutions only.
First, the performance story presented in the institution’s proposed Plan must:

reflect the Outcomes Framework the institution has agreed with the TEC, or
an institution’s own outcomes framework; and

align with the narrative in the institution’s other strategic planning and
reporting documents.
Second, the Strategic Intent section must explain how the institution will manage
its capital assets to support its mission and role over the period of the proposed
Plan (including any new significant capital initiatives).
Third, proposed Plans should include a forecast Statement of Service
Performance (SSP) to enable the institution to report in its Annual Report on its
performance as compared to its proposed outcomes described in its Plan.8 The
forecast SSP should:

be prepared in accordance with Generally Accepted Accounting Practice,
including reporting costs summarised by key output classes/areas; and

reflect the full scope of the institution’s activities; and

focus on the outputs/services of the institution; and

include measures and evidence about the quality of these outputs/services.
(ii) Summary of Activity
The Plan must include a Summary of Activity for the period of the proposed Plan.
The proposed activity must align with and support the achievement of the
mission presented in the Strategic Intent section of the proposed Plan.
The Summary of Activity must include information about:

planned programmes and activities for which the TEO is seeking Student
Achievement Component (SAC) or Industry Training Fund funding, including
planned learner numbers by New Zealand Qualification Framework Level
(this information must be provided via a “Mix of Provision” template which the
TEC will provide to TEOs in due course);

other planned programmes and activities for which funding is sought from the
TEC, including planned learner numbers (this information must be provided
via a “Mix of Provision” template, except for ACE in Communities and ACE in
Schools funding, where this information must be provided via the first
sections of the ‘Direct Delivery’ and ‘Other Activities’ spreadsheets);
8
Sections 220(2A)(f) and 220(2B) of the Education Act 1989 and section 156 of the Crown
Entities Act 2004 refer.
31

total TEC funding sought (this information must be provided via a “Mix of
Provision” template);

planned learner numbers in more detail, if requested by the TEC, for nonSAC-funded programmes and activities (this information must be provided via
a “Mix of Provision” template);

a brief description of other programmes and activities not funded by the TEC,
including significant programmes and activities undertaken through subsidiary
bodies9. (This information may be provided either via the Mix of Provision
template or as part of the TEO’s Strategic Intent, as the TEO prefers.) For
tertiary education institutions only, the description of the programmes
activities undertaken through subsidiaries must include:

‒
a description of the main activities undertaken by the subsidiary body;
‒
the dollar value of the TEO’s investment in the subsidiary body; and
‒
a brief description of the governance and accountability arrangements in
place; and
(for tertiary education institutions only) information about delivery the TEO
intends to subcontract to other TEOs during the period of the proposed Plan
(this information must be provided via a “Subcontracting register” template
which the TEC will provide to TEOs in due course).
(iii) Performance Commitments
The Performance Commitments section of the TEO’s proposed Plan must set out
proposed performance commitments that measure whether the TEO is producing
the activities and outputs identified in its performance story.
The TEC will provide all TEOs with information about specific metrics they must
use when making certain performance commitments, and in some cases will
specify minimum commitments for TEOs. TEOs should propose additional
commitments as required.
Other supplementary information
The TEC may ask a TEO to provide additional information about its financial
outlook to accompany its proposed Plan.
This might include forecast financial statements, capital asset management
information (for tertiary education institutions), and any other information and
explanations needed to fairly reflect the forecast financial operations and financial
position of the TEO, e.g. information about subsidiaries for which the TEO has
residual liability.
9
32
These include all subsidiaries, trusts, or in-substance subsidiaries. These entities should include
all entities included in the TEO’s consolidated group reporting in its most recent Annual Report.
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
The TEC may use this additional information when assessing the potential of the
TEO to meet its proposed performance commitments.
Decision-making criteria
The decision-making criteria below enable the TEC to assess the alignment of an
eligible TEO’s proposed direction and activities to Government priorities and
regional and national need, as well as its capability to deliver on its Plan. The
TEC will use the criteria to assess proposed Plans and determine if they will
receive funding approval.
When assessing proposed Plans against the criteria, the TEC will take a holistic
approach and may use a range of evidence, including, without limitation, the
information contained in a proposed Plan, TEC monitoring information (including
funding, performance, organisational, and financial data), institutional Annual
Reports and Strategic Plans, Quality Assurance Bodies’ information and reports,
Plan engagement (where applicable), and both national and regional
demographic and economic data.
The TEC may decide to give funding approval subject to conditions, having
regard to the relevant funding determinations issued by the Minister for Tertiary
Education, Skills and Employment under the Education Act 1989, and whether a
condition is necessary to ensure that the outcomes in a Plan that relate to tertiary
education programmes and activities are being or will be achieved.
The criteria
The TEC will assess proposed Plans of all TEOs according to whether and to
what extent they meet the following criteria:

The TEO’s proposed mission and role, and the outcomes the TEO intends to
contribute to, show an awareness of and are appropriate to the TEO’s place
in the regional and national tertiary system and the Government’s priorities.

The TEO’s proposed mission and role as outlined in its proposed Plan is
consistent with the mission and role the TEO has articulated in its other
strategic planning documents.

The TEO has clearly and accurately identified its key stakeholders, including:

‒
employers, businesses or industries relevant to the TEO’s areas of
delivery; and
‒
learners or prospective learners, in particular those who are Māori, or
Pasifika, or under the age of 25, or who have low levels of literacy,
language, and numeracy; and
‒
the communities that support Māori and Pasifika learners.
The TEO has ascertained the needs of its key stakeholders, including through
consultation and the use of statistical information about regional or national
demographics and employment market demand.
33

The TEO’s proposed programmes and activities respond to the needs of its
stakeholders and the priorities of the Tertiary Education Strategy 2014–2019.

The TEC considers that the TEO is likely to be able to carry out the
programmes and activities (including capital asset management where
applicable), and contribute to the outcomes, outlined in the proposed Plan.

The TEC considers that the TEO’s proposed programmes and activities
(including capital asset plans where applicable) are desirable and appropriate
in the context of regional and national need and the proposed programmes
and activities of other TEOs.

The TEO’s proposed performance commitments are:

10
34
‒
SMART,10 so that they give clear evidence about the quality of the
activity being measured; and
‒
relevant, so that they give meaningful information about the TEO’s
progress toward its proposed outcomes; and
‒
set at a level that represents a meaningful improvement on past
performance, especially with respect to outcomes for priority learner
groups; and
‒
complete, so that they cover all significant programmes and activities the
TEO intends to undertake, and all important dimensions of those
activities; and
‒
clearly presented.
If applicable, the TEO has performed well against its current and its previous
Plans, and in particular has:
‒
improved its performance over time; and
‒
met its Plan commitments and KPIs; and
‒
demonstrated satisfactory educational performance, including meeting
the upper thresholds of the TEC’s Performance Linked Funding
framework (for TEOs subject to Performance Linked Funding); and
‒
demonstrated satisfactory financial performance, including:

for tertiary education institutions only, receiving a satisfactory
assessment on the TEC’s Financial Monitoring Framework; and

for PTEs only, meeting the TEC’s Prudential Financial Standards for
PTEs; and
‒
been assessed as satisfactory in terms of its last external review by the
relevant quality assurance body; and
‒
demonstrated good management capability in forecasting, planning, and
implementation, and the (where applicable) ability to provide
supplementary information such as capital asset management reporting;
SMART goals are Specific, Measurable, Achievable, Realistic, and Time-Bound.
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
‒
complied with conditions imposed on funding approval; and
‒
complied with its obligations to report to TEC.

For tertiary education institutions only, the institution meets the expectations
expressed in this Notice regarding the inclusion of a forecast SSP in its Plan.

When assessing programmes and activities through the competitive process
for Student Achievement Component funding at level 1 and 2, the amount of
funding sought for providing level 1 and 2 programmes and activities is the
best value for money, having regard to:
‒
the Government’s stated objectives for foundation education; and
‒
the price proposed by other TEOs; and
‒
the nature of the proposed programmes and activities (including any
costs to students); and
‒
regional and national need.
Plan Summaries
In accordance with the requirements of section 159YO(1) of the Education Act
1989, the TEC prescribes that a TEO that has a Plan must include in its Plan
Summary all the material described in the “Plan Content” part in this notice,
comprising its Strategic Intent, its Summary of Activity, and its Performance
Commitments.
Tertiary education institutions should also include their forecast Statement of
Service Performance (SSP) in their Plan Summary.
Nothing in this Notice requires a TEO to include in its Plan Summary information
that would:

disclose a trade secret; or

be likely to unreasonably prejudice the commercial position of the
organisation; or

prejudice or disadvantage the commercial activities of the organisation.
Timelines and Processes
The following table sets out the timeline for the Plan process.
Activity
Indicative timing
TEC releases SAC Levels 1 and 2 Plan Guidance
Late February 2014
TEC releases General Plan Guidance to TEOs (this document)
April 2014
TEC publishes Gazette notice: Education (Proposed Investment
Plans: Requirements, Content, Submission, and Assessment; and
Plan Summaries) Notice 2014
April 2014
35
Activity
Indicative timing
Deadline for TEOs to submit applications for the SAC Levels 1 and
2 competitive process
Late April 2014
Government announces Budget 2014
15 May 2014
TEC releases Supplementary Plan Guidance (if required) to reflect
any policy or Budget changes
June 2014
TEC advises TEOs of indicative funding allocations from the SAC
Levels 1 and 2 competitive pool for 2015 and 2016
June 2014
Plan engagement: TEC discusses performance information,
indicative allocations and proposed Plans with TEOs
May to September;
deadline for Plans to be
submitted by 31 July (for
PTEs) or 31 August (all
other TEOs)
TEOs submit their proposed Plans to the TEC
TEC assesses proposed Plans
TEC Board makes final funding decisions for all Plan-based funding,
including confirmation of competitive SAC Levels 1 and 2 funding
October/November 2014
TEOs are notified of final funding decisions via Plan funding
approval letters
November/December
2014
First payments made against Plans; Plan delivery begins
January 2015
Dated at Wellington this 24th day of April 2014
Tim Fowler, Chief Executive, Tertiary Education Commission
36
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
ITP Planning & Accountability Framework
Time
Legisl Horizon Outcome Guidance &
ation (years) Hierarchy Analysis
Institutional Planning and Accountability
Measures relate to:
5 - 10
A
c
t
,
P
u
b
l
i
c
F
i
n
a
n
c
e
Outcome
s
- Economic development
- Social & community development
- Environmental enhancement
System
level
results
Impacts
Tertiary
Education
Strategy
5
3
Outputs
Process
es
Plan
Guidanc
e
Central Government Agencies undertake
Research & analysis of system-level measures
across the sector
Strategic Plans
The ITP's mission
& role in contributing to the tertiary
education sector in New Zealand
- People progress to higher levels of learning
- People progress to (self) employment
- Value to added to industry & society
Institutional objectives and priorities
- More engaged communities
over 10 years
- Enhanced environmental sustainability
Resource plans to provide for role and mission
Minister sets out Government's
vision & priorities for tertiary education
Three-year Plan
Strategic document(s) that set out plans and
commitments in the context of:
- the operating environment
- Government policy expressed in TES
- funding environment
- proposed programmes and activities
to build institutional capability
- Student achievement
- Vocational education that meets the needs of students, industry & employers
- Applied research and knowledge transfer
- Deliver high quality & relevant courses
- Student support
- Work and practise based learning
- Engagement with industries & communities
Institutional performance commitments &
associated measures at output
process & input levels as part of the
public administration requirements
of proposed plans
Annual Plan
1
Inputs
Govern
ment
Budget
Academic / operating unit plans
Annual budget & forecasts
A
c
t
+1
OAG
Annual
Audit
advice
- Funding
- Student needs
- Infrastructure
- Staff
- Industry, employer and community needs
Each ITP reports on the performance
of the institution in its Annual Report
compared to the proposed outcomes
described in its Plan
Annual Report
Demonstrates accountability
Institutional KPIs; financial accountability
Operating unit plans and reports
37
ITPs draw upon research & analysis in
narrative that articulates how outputs
contribute to impacts & outcomes
E
d
u
c
a
t
i
o
n
Framework accountability
Level
Components
Outcomes
Economic Development
Social & Community
Development
2011 Indicators
People progress to higher levels
of learning
People progress to (self)
employment
Value added to industry & society
Sector-wide measures to be
developed by central agencies
and peak bodies as data
becomes available e.g. the
Employment Outcomes of
Tertiary Education (EOTE)
Narrative-based connections,
based on evidence that supports
stated contribution i.e.
intervention logic
For 2011, each institution will
make the connection between
outputs, impacts and outcomes
outputs through evidence-based
(where appropriate) narrative
Indicators of students’ cognitive
learning outcomes inc graduate
attributes
Narrative as above,
supplemented by qualitative
and quantitative indictors as
these become available11
Indicators of students’
employment outcomes i.e.
graduate employment
destinations
Indicators for research informed knowledge transfer
11
More engaged communities
Indicators for community
engagement
Enhanced environmental
sustainability
Indicators for environmental
sustainability
These indicators should be consistent with the Australian Indicator Framework for Higher Education Performance Funding
38
Outcome framework will be
populated by:
Contribution of outputs explained
by each institution through
evidence-based (where
appropriate) narrative
Environmental Management
Impacts
Further indicators to be
developed
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Outputs
Processes
Student achievement
TEC educational performance
indicators
Vocational education that meets
the needs of students, industry &
employers
Individual institutions use own
indicators to demonstrate
relevance of vocational education
Indicators for programme
relevance
Institution-specific indicators
used within framework
Applied research & knowledge
transfer
Individual institutions use own
indicators to demonstrate
knowledge transfer from applied
research (also see impacts)
Indicators for knowledge
transfer from applied research
Institution-specific indicators
used within framework
Deliver high quality and relevant
courses
Each institution to provide
narrative with evidence from its
institutional self-assessment that
demonstrates impact and
improvement.
Indicators of process quality in
relation to teaching and
research
Narrative based on externallyvalidated self assessment,
supplemented by qualitative
and quantitative indicators as
these become available.
Student support
Work and practice-based learning
Engagement with industry and
communities
Inputs
The quality of educational
outcomes and the effectiveness
of processes that contribute to
these validated through
reference to the latest external
evaluation and review
Funding
Risk status based on the basket of
measures in the TEC financial
monitoring framework
Students
The student body reflects the
institution’s mission and role
Common set of indicators
Indicators of student
engagement & satisfaction
Indicators of stakeholder
engagement & satisfaction
Common set of indicators
Indicators that show the
participation of underrepresented groups
39
The composition of the student
body is reflected in Investment
Plan commitments
Infrastructure
Capital asset management plan
Staff
Individual institutions
demonstrate contribution using
own indicators
Common set of indicators
Staff skill development links to
organisational teaching
performance
Key
Common
A set of indicators common to all
institutions
Develop
Further indicators to be
developed to fully populate the
framework
40
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Institution-specific indicators
used within framework
University Planning & Accountability Framework
Time
Legisl- Horizon
ation (years)
E
d
u
c
a
t
i
o
n
A
c
t
P
u
b
l
i
c
F
i
n
a
n
c
e
A
c
t
Outcome
Hierarchy
Institutional Planning & Accountability
Measures Relate To:
10 - 15
Outcomes
System
Level
Results
Impacts
5
Tertiary
Education
Strategy
3
Outputs
Plan
Guidance
Processes
- Economic development
- Social & community development
- Environmental enhancement
Strategic Plans
The university’s mission and role in
contributing to the tertiary education
section in New Zealand
Inputs
Govt
Budget
Central Government Agencies undertake
Research and analysis of system-level
measures across the sector
- People with critical thinking skills
- Educated and skilled workforce
- Value to society
Institutional objectives and priorities over
10+ years
Resource plans to provide for role and mission
Minister sets out Government’s vision
and priorities for tertiary education
Three Year Plan
Strategic document(s) that set out plans
and commitments in the context of:
- the operating environment
- Government policy expressed in TES
- funding environment
- 3-year rolling forecast of activities,
revenue and expenditure
Annual Plan
1
Framework Accountability
Academic / operating unit plans
Annual budget and forecasts
- Student achievement
- Research outputs
- Contribution of academics to society
- Deliver high quality qualifications
- Pastoral care of students
- High quality research
Institutional performance commitments
and associated measures at output
process and input levels as part of the
public administration requirements of
proposed plans
- Funding
- Students
- Infrastructure
- Staff
+1
OAG
Annual
Audit
Advice
Annual Report
Demonstrates accountability
Institutional KPIs; financial accountability
Each University reports on the
performance of the institution in its
Annual Report compared to the proposed
outcomes described in the Plan
Operating Unit Plans and Reports
41
Level
Components
Outcomes
Economic Development
Outcome
framework will be
populated by:
2011 to 2013 Indicators
Further indicators to be developed
Narrative-based
connections, based
on evidence that
supports stated
contribution i.e.
intervention logic
Contribution of outputs
explained by each
institution through
evidence-based (where
appropriate) narrative
Sector-wide measures to be developed by central
agencies and peak bodies as data becomes
available e.g. the Employment Outcomes of
Tertiary Education (EOTE)
Narrative as above,
supplemented by
qualitative and
quantitative indictors
as these become
available12
Each institution will make
the connection between
outputs, impacts and
outcomes outputs
through evidence-based
(where appropriate)
narrative
Indicators of students’ cognitive learning outcomes
include graduate attributes
Social & Community
Development
Environmental
Enhancement
Impacts
12
People with critical
thinking skills
Skilled and more
productive workforce
Indicators of students’ employment outcomes i.e.
graduate employment destinations
Value added to industry
Indicators for research -informed knowledge
transfer
These indicators should be consistent with the Australian Indicator Framework for Higher Education Performance Funding
1
& society
Improved communities
Outputs
Processes
Indicators for community engagement
Student achievement
Common set of
indicators
TEC educational
performance indicators
ie the indicators from the
set of common
educational performance
indicators that align to
each University’s
Strategic Plan.
Research outputs
RDCs and ERI
Research degree
completion and external
research income
indicators
Institution-specific
indicators used
within framework
Individual institutions
demonstrate contribution
using own indicators
and/or narrative
To be specified
High quality, relevant
courses & qualifications
Narrative as above,
supplemented by
qualitative and
quantitative
indicators as these
become available
Each institution to
provide narrative with
evidence from its
institutional research that
demonstrates impact
and improvement.
Indicators of process quality in relation to teaching
and research
High quality research
Effectiveness of
2
Indicators that show the proportion of students that
progress to postgraduate level in subject areas
that reflect the institution’s mission & role
Contribution of
academics and students
to society
Student support
13
Selected indicators from the PBRF13
Noting that indicators for research-informed knowledge transfer are included as an impact
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015
Indicators of student engagement & satisfaction
Indicators of stakeholder engagement &
satisfaction
processes validated
through reference to the
latest external academic
audit
Meaningful engagement
with students, business
and communities
Inputs
Individual institutions
demonstrate contribution
using own indicators
and/or narrative
Funding
Common set of
indicators
Financial performance
utilising aspects of the
the TEC financial
monitoring framework
Students
Student
demographics
especially in relation
to the University’s
community
The composition of the
student body reflects
institution’s regional
communities e.g. the
regions in which its
campuses are based
Infrastructure
Common set of
indicators
Capital asset
management plan
Staff
Institution-specific
indicators used
within framework
Individual institutions
demonstrate contribution
using own indicators
and/or narrative
Key
3
Indicators for this aspect of community
engagement (also see impacts)
An indicator that is more reflective of distance
education and universities national role i.e. that
institutions enrol a student body that reflects their
mission and role
Indicators that show the participation of underrepresented groups
Indicators of staff teaching performance
Common
A set of indicators
common to all institutions
Develop
Further indicators to be
developed to fully
populate the framework
4
General Plan Guidance for 2015 and 2016:
Guidance for TEOs seeking plan-based funding from the TEC from 1 January 2015