Vote Tertiary Education - Supplementary Estimates 2017/18

Vote Tertiary Education#

APPROPRIATION MINISTER(S): Minister of Education (M26)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type	Estimates Budget $000	Supplementary Estimates Budget $000	Total Budget $000
	2017/18
Non-Departmental Output Expenses
*Access to Tertiary Education (M26)* This appropriation is limited to improving access to tertiary education and training.	26,449	-	26,449
*Administration of and Support for the Careers System (M26)* This appropriation is limited to investing in, monitoring, informing and influencing the careers system.	-	18,775	18,775
*Administration of and Support for the Tertiary Sector (M26)* This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.	47,163	3,702	50,865
*Centres of Research Excellence (M26)* This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.	49,800	-	49,800
*International Education Programmes (M26)* This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.	31,072	(383)	30,689
*Tertiary Education Research and Research-Based Teaching (M26)* This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.	309,000	7,500	316,500
*Tertiary Sector / Industry Collaboration Projects (M26)* This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.	28,372	(594)	27,778
*University-led Innovation (M26)* This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.	10,833	-	10,833
Total Non-Departmental Output Expenses	502,689	29,000	531,689
Benefits or Related Expenses
*Awards for Outbound New Zealand Students (M26)* This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.	5,040	-	5,040
*Scholarships for Inbound International Students (M26)* This appropriation is limited to scholarships available to international students wishing to study in New Zealand.	800	-	800
*Support to Apprentices (M26)* This appropriation is limited to payments to New Zealand Apprentices and other participants in workplace-based training, including Maori and Pasifika Trades Trainees, towards their tools and other training related costs.	1,036	-	1,036
*Tertiary Scholarships and Awards (M26)* This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.	14,732	-	14,732
Total Benefits or Related Expenses	21,608	-	21,608
Non-Departmental Capital Expenditure
*Support for Lincoln University (M26)* This appropriation is limited to the rebuild of the science facilities at Lincoln University in conjunction with the Lincoln Hub.	-	65,000	65,000
*Support for Tai Poutini Polytechnic (M26)* This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.	-	6,450	6,450
Total Non-Departmental Capital Expenditure	-	71,450	71,450
Multi-Category Expenses and Capital Expenditure
*Stewardship of the Tertiary Education System MCA (M26)* The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.	12,377	-	12,377
Departmental Output Expenses
Policy Advice This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.	4,856	-	4,856
Research, Data Analysis and Monitoring This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.	7,521	-	7,521
*Tertiary Tuition and Training MCA (M26)* The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.	2,481,969	254,125	2,736,094
Non-Departmental Output Expenses
Community Education This category is limited to funding for adult and community education and literacy, numeracy and English language provision.	77,286	(3,810)	73,476
Tertiary Education: Student Achievement Component This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.	2,084,592	(30,400)	2,054,192
Training for Designated Groups This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.	320,091	(21,565)	298,526
Non-Departmental Other Expenses
Fees-free Payments This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.	-	309,900	309,900
Total Multi-Category Expenses and Capital Expenditure	2,494,346	254,125	2,748,471
Total Annual and Permanent Appropriations	3,018,643	354,575	3,373,218

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

	2017/18
		Supplementary Estimates
	Estimates $000	Departmental Transactions $000	Non-Departmental Transactions $000	Total Transactions $000	Total $000
Appropriations
Output Expenses	502,689	-	29,000	29,000	531,689
Benefits or Related Expenses	21,608	N/A	-	-	21,608
Borrowing Expenses	-	-	-	-	-
Other Expenses	-	-	-	-	-
Capital Expenditure	-	-	71,450	71,450	71,450
Intelligence and Security Department Expenses and Capital Expenditure	-	-	N/A	-	-
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses	2,494,346	-	(55,775)	(55,775)	2,438,571
Other Expenses	-	-	309,900	309,900	309,900
Capital Expenditure	-	N/A	-	-	-
Total Appropriations	3,018,643	-	354,575	354,575	3,373,218
Crown Revenue and Capital Receipts
Tax Revenue	-	N/A	-	-	-
Non-Tax Revenue	1,000	N/A	2,552	2,552	3,552
Capital Receipts	-	N/A	-	-	-
Total Crown Revenue and Capital Receipts	1,000	N/A	2,552	2,552	3,552

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Administration of and Support for the Careers System (M26)

Scope of Appropriation

This appropriation is limited to investing in, monitoring, informing and influencing the careers system.

Expenses

	2017/18
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	18,775	18,775

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support New Zealanders to obtain the knowledge and skills needed for lifelong success.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
Number of New Zealand-based web visits to the careers.govt.nz website.	New measure	4.4 million	4.4 million
Percentage of users who agree that the content on the careers.govt.nz website is relevant to their needs.	New measure	80%	80%
Percentage of employers or employers' organisations participating in a careers initiative that agree the initiative has helped improve their connection with education organisations.	New measure	80%	80%
Percentage of education organisations accessing career development resources and services that agree this has helped improve their careers services.	New measure	80%	80%

Note - Due to the merger of Careers New Zealand with the Tertiary Education Commission on 1 July 2017 these measures have been transferred from Vote Education to Vote Tertiary Education.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Reasons for Change in Appropriation

This new appropriation of $18.775 million was established during 2017/18 following the decision to disestablish Careers New Zealand and create a refocused careers function within the Tertiary Education Commission. Careers New Zealand was funded through Vote Education; the integration of its functions into the Tertiary Education Commission included transferring that funding into Vote Tertiary Education.

Administration of and Support for the Tertiary Sector (M26)#

Scope of Appropriation#

This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.

Reasons for Change in Appropriation#

This appropriation increased by $3.702 million to $50.865 million for 2017/18 for the delivery of the Government's first-year fees-free policy by the Tertiary Education Commission from 1 January 2018.

International Education Programmes (M26)#

Scope of Appropriation#

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.

Reasons for Change in Appropriation#

This appropriation decreased by $383,000 to $30.689 million for 2017/18 due to a transfer to the Ministry of Business, Innovation and Employment for The New Zealand Story initiative.

Tertiary Education Research and Research-Based Teaching (M26)#

Scope of Appropriation#

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.

Reasons for Change in Appropriation#

This appropriation increased by $7.500 million to $316.500 million for 2017/18 due to a transfer from non-departmental output expense category Tertiary Education: Student Achievement Component in the Tertiary Tuition and Training MCA to fund the full cost of the Budget 2017 increase of $15 million per annum for the Performance-Based Research Fund from 1 January 2018.

Tertiary Sector / Industry Collaboration Projects (M26)#

Scope of Appropriation#

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.

Reasons for Change in Appropriation#

This appropriation decreased by $594,000 to $27.778 million for 2017/18 due to a combination of:

a transfer to Vote Education to help address teacher supply pressures ($1.500 million decrease)

a transfer to 2018/19 for initiatives to increase the number of engineering graduates ($449,000 decrease)

a transfer to 2018/19 for a challenge-based initiative by Information and Communications Technology Graduate Schools to solve industry problems ($234,000 decrease)

a transfer to 2018/19 to align with university funding agreements for the operation of Centres for Asia-Pacific Excellence ($125,000 decrease), and

a transfer from 2016/17 to manage delays in the commencement of some exemplary postgraduate initial teacher education programmes and demand for enrolments across these programmes ($1.714 million increase).

3.5 - Non-Departmental Capital Expenditure#

Support for Lincoln University (M26)#

Scope of Appropriation

This appropriation is limited to the rebuild of the science facilities at Lincoln University in conjunction with the Lincoln Hub.

Capital Expenditure

	2017/18
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	65,000	65,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective investment in rebuilding the science facilities at Lincoln University.

How Performance will be Assessed and End of Year Reporting Requirements

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
Achieving business case milestones in the rebuild of science facilities at Lincoln University.	New measure	99.5%	99.5%

End of Year Performance Reporting

Performance information for this appropriation will be reported by Lincoln University in its annual report.

Reasons for Change in Appropriation

A capital injection of $65 million to Lincoln University was established as a contribution to the construction of a Joint Facility with AgResearch, which will replace the University's earthquake damaged science facilities.

Support for Tai Poutini Polytechnic (M26)#

Scope of Appropriation#

This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.

Capital Expenditure#

	2017/18
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	-	6,450	6,450

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the continued operation of Tai Poutini Polytechnic.

How Performance will be Assessed and End of Year Reporting Requirements#

Performance Measures	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
Tai Poutini Polytechnic submits milestone reports as described in its funding agreement that show it is meeting the targets from its funding agreement.	New measure	Achieved	Achieved

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Tai Poutini Polytechnic in its annual report.

Reasons for Change in Appropriation#

In February 2018, Cabinet agreed to provide a capital injection of $8.500 million over two years ($6.450 million in 2017/18 and $2.050 million in 2018/19) to keep Tai Poutini Polytechnic operating while work continues on the sustainability of polytechnic and the Crown Manager continues to make operational and educational improvements. This funding is in addition to the $3.600 million capital injection provided in 2016/17 to maintain provision on the West Coast while future options for Tai Poutini Polytechnic are considered.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Stewardship of the Tertiary Education System (M26)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.

Scope of Appropriation

Departmental Output Expenses

Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
Research, Data Analysis and Monitoring
This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.

Expenses, Revenue and Capital Expenditure

	2017/18
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	12,377	-	12,377
*Departmental Output Expenses*
Policy Advice	4,856	-	4,856
Research, Data Analysis and Monitoring	7,521	-	7,521
Funding for Departmental Output Expenses
*Revenue from the Crown*	11,627	-	11,627
Policy Advice	4,856	-	4,856
Research, Data Analysis and Monitoring	6,771	-	6,771
*Revenue from Others*	750	-	750
Research, Data Analysis and Monitoring	750	-	750

How Performance will be Assessed for this Appropriation

Assessment of Performance	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
Overall average (mean) satisfaction rating given by the Minister for Tertiary Education, Skills and Employment for the Ministry's policy advice, monitoring advice and support for ministerial delegations.	7	Discontinued measure	-
The satisfaction rating given by the Minister of Education with the overall performance of the Ministry (see Note 1).	Replacement measure	7	7

Note 1 - The rating measures Ministers' satisfaction on a scale of 1 to 10, where 1 means unsatisfactory and 10 means extremely satisfied.

Tertiary Tuition and Training (M26)#

Overarching Purpose Statement#

The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.

Scope of Appropriation#

Non-Departmental Output Expenses

Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.

Non-Departmental Other Expenses

Fees-free Payments
This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.

Expenses, Revenue and Capital Expenditure#

	2017/18
	Estimates $000	Supplementary Estimates $000	Total $000
Total Appropriation	2,481,969	254,125	2,736,094
*Non-Departmental Output Expenses*
Community Education	77,286	(3,810)	73,476
Tertiary Education: Student Achievement Component	2,084,592	(30,400)	2,054,192
Training for Designated Groups	320,091	(21,565)	298,526
*Non-Departmental Other Expenses*
Fees-free Payments	-	309,900	309,900

What is Intended to be Achieved with each Category and How Performance will be Assessed#

Assessment of Performance	Estimates Standard	Supplementary Estimates Standard	Total Standard
	2017/18
Non-Departmental Other Expenses
*Fees-free Payments*
This category is intended to contribute to removing barriers to participation by making tertiary education more affordable.
Operational processes for fees-free policy have been designed and implemented by 31 December 2017 (see Note 1).	New measure	Achieved	Achieved

Note 1 - The operational processes will include:

funding allocations and new contracts for tertiary education organisations

learner eligibility checking.

Reasons for Change in Appropriation#

This appropriation increased by $254.125 million to $2,736.094 million for 2017/18 due to a combination of:

implementation of the Government's first-year fees-free policy from 1 January 2018, including adding the Fees-free Payments category to this appropriation ($309.900 million increase)

implementation of the pilot intake of sponsored refugees under the Community Organisation Refugee Sponsorship Category ($53,000 increase)

underspends and recoveries from provider-based programmes due to demand and/or the delivery of programmes being lower than the level able to be funded ($47.500 million decrease)

transfer to non-departmental output expense Tertiary Education Research and Research-Based Teaching to recognise the full cost in the 2017/18 financial year of the Budget 2017 increase of $15 million per annum for the Performance-Based Research Fund from 1 January 2018 ($7.500 million decrease)

transfer to Vote Pacific Peoples for the Ministry for Pacific Peoples to support and monitor the Pasifika Education Centre's non-educational outputs from 1 October 2018 until the end of the 2019 academic year ($563,000 decrease), and

transfer to Vote Education to enable the New Zealand Qualifications Authority to complete its monitoring programme of undergraduate Level 7 diploma programmes ($265,000 decrease).

Vote Tertiary Education - Supplementary Estimates 2017/18

Formats and related files