Vote Tertiary Education

Vote Tertiary Education

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/17
Titles and Scopes of Appropriations by Appropriation Type / Estimates
Budget
$000 / Supplementary
Estimates
Budget
$000 / Total
Budget
$000
Non-Departmental Output Expenses
Access to Tertiary Education (M14)
This appropriation is limited to improving access to tertiary education and training. / 25,116 / (900) / 24,216
Administration of and Support for the Tertiary Sector (M14)
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. / 47,277 / (359) / 46,918
Centres of Research Excellence (M14)
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 (M14)
This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in NewZealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages. / 29,372 / 67 / 29,439
Tertiary Education Research and Research-Based Teaching (M14)
This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wānanga research capability. / 301,500 / - / 301,500
Tertiary Sector / Industry Collaboration Projects (M14)
This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision. / 23,847 / 1,531 / 25,378
University-led Innovation (M14)
This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses. / - / 2,500 / 2,500
Total Non-Departmental Output Expenses / 476,912 / 2,839 / 479,751
Benefits or Related Expenses
Awards for Outbound NewZealand Students (M14)
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. / 4,790 / (200) / 4,590
Scholarships for Inbound International Students (M14)
This appropriation is limited to scholarships available to international students wishing to study in NewZealand. / 800 / - / 800
Support to Apprentices (M14)
This appropriation is limited to payments to NewZealand Apprentices and other participants in workplace-based training, including Māori and Pasifika Trades Trainees, towards their tools and other training related costs. / 2,190 / (930) / 1,260
Tertiary Scholarships and Awards (M14)
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 Māori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers. / 14,447 / - / 14,447
Total Benefits or Related Expenses / 22,227 / (1,130) / 21,097
Non-Departmental Capital Expenditure
Literacy and Numeracy Assessment Tool (M14)
This appropriation is limited to development of online assessment tools for adult and youth literacy and numeracy. / 500 / - / 500
Support for Tai Poutini Polytechnic (M14)
This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow. / - / 3,600 / 3,600
Support for the University of Canterbury (M14)
This appropriation is limited to the rebuild of the Science and Engineering Facilities at the University of Canterbury. / 15,000 / - / 15,000
Total Non-Departmental Capital Expenditure / 15,500 / 3,600 / 19,100
Multi-Category Expenses and Capital Expenditure
Stewardship of the Tertiary Education System MCA (M14)
The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system. / 12,141 / 760 / 12,901
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. / 7,285 / 760 / 8,045
Tertiary Tuition and Training MCA (M14)
The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in NewZealanders' skill levels. / 2,491,002 / (25,330) / 2,465,672
Non-Departmental Output Expenses
Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision. / 73,651 / (900) / 72,751
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. / 2,100,205 / (15,000) / 2,085,205
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the NewZealand 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. / 317,146 / (9,430) / 307,716
Total Multi-Category Expenses and Capital Expenditure / 2,503,143 / (24,570) / 2,478,573
Total Annual and Permanent Appropriations / 3,017,782 / (19,261) / 2,998,521

Supporting Information

Part 1 - Vote as a Whole

1.2 - Trends in the Vote

Summary of Financial Activity
2016/17
Supplementary Estimates
Estimates
$000 / Departmental
Transactions
$000 / Non-Departmental
Transactions
$000 / Total
Transactions
$000 / Total
$000
Appropriations
Output Expenses / 476,912 / - / 2,839 / 2,839 / 479,751
Benefits or Related Expenses / 22,227 / N/A / (1,130) / (1,130) / 21,097
Borrowing Expenses / - / - / - / - / -
Other Expenses / - / - / - / - / -
Capital Expenditure / 15,500 / - / 3,600 / 3,600 / 19,100
Intelligence and Security Department Expenses and Capital Expenditure / - / - / N/A / - / -
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses / 2,503,143 / 760 / (25,330) / (24,570) / 2,478,573
Other Expenses / - / - / - / - / -
Capital Expenditure / - / N/A / - / - / -
Total Appropriations / 3,017,782 / 760 / (20,021) / (19,261) / 2,998,521
Crown Revenue and Capital Receipts
Tax Revenue / - / N/A / - / - / -
Non-Tax Revenue / 1,250 / N/A / 7,167 / 7,167 / 8,417
Capital Receipts / - / N/A / - / - / -
Total Crown Revenue and Capital Receipts / 1,250 / N/A / 7,167 / 7,167 / 8,417

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Access to Tertiary Education (M14)
Scope of Appropriation

This appropriation is limited to improving access to tertiary education and training.

Reasons for Change in Appropriation

This appropriation decreased by $900,000 to $24.216 million for 2016/17 due to a transfer to 2017/18 for the Māori and Pasifika Trades Training (MPTT) Fees Top-up Fund to reflect the number of places taken up at tertiary institutions and the length of programme undertaken by each learner across these two years.

Administration of and Support for the Tertiary Sector (M14)
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 decreased by $359,000 to $46.918 million for 2016/17 due to a combination of:

changes in the capital charge rate from 8% to 7% from 1 July 2016 and to 6% from 1 January 2017 ($419,000 decrease), and

a transfer of surplus MPTT Tools Subsidy funds frombenefits or related expense Supportto Apprentices to evaluate the effectiveness of the MPTT programme in 2017 ($60,000 increase).

International Education Programmes (M14)
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 NewZealand 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 increased by $67,000 to $29.439 million for 2016/17 due to a combination of:

funding from the Export Education Levy to support additional investment in the international education industry by Education NewZealand ($250,000 increase)

a transfer from benefits or related expense Awards for Outbound NewZealand Students for administration of the Prime Minister's Scholarships for Asia Fund ($200,000 increase), and

a transfer to the Ministry of Business, Innovation and Employment for The NewZealand Story initiative ($383,000 decrease).

Tertiary Sector / Industry Collaboration Projects (M14)
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 increased by $1.531 million to $25.378 million for 2016/17 due to a combination of:

a transfer frombenefits or related expense Support to Apprentices for Māori and Pasifika Trades Training (MPTT) project coordination to support growth in learner and consortium numbers ($850,000 increase)

a transfer from 2015/16 due to delays in the establishment and operation of two of the three Information and Communications Technology Graduate Schools ($584,000 increase)

finalising thetransfer of operational functions for MPTT from the Ministry of Business, Innovation and Employment to the Tertiary Education Commission ($190,000 increase), and

a transfer to2017/18 for the Engineering Education to Employment initiative to progress employer engagement initiatives and rephase project expenditure ($93,000 decrease).

University-led Innovation (M14)
Scope of Appropriation

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.

Expenses
2016/17
Estimates
$000 / Supplementary Estimates
$000 / Total
$000
Total Appropriation / - / 2,500 / 2,500
What is Intended to be Achieved with this Appropriation

This appropriation is intended to help NewZealand universities to recruit world-leading entrepreneurial academics, with a track record of working with industry to turn research into commercial innovation, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements
2016/17
Performance Measures / Estimates
Standard / Supplementary
Estimates
Standard / Total
Standard
Competitive selection round completed and first tranche of funding released before 30 June 2017. / New measure / Achieved / Achieved
End of Year Performance Reporting

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

Service Providers
2016/17
Provider / Estimates
$000 / Supplementary
Estimates
$000 / Total
$000 / Expiry of
Resourcing
Commitment
Crown Entities
Universities (8) / - / 2,500 / 2,500 / Not yet known
Total / - / 2,500 / 2,500

The table above shows the main service providers for this appropriation.

Reasons for Change in Appropriation

This new appropriation was created during 2016/17.

3.2 - Non-Departmental Benefits or Related Expenses

Awards for Outbound NewZealand Students (M14)
Scope of Appropriation

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.

Reasons for Change in Appropriation

This appropriation decreased by $200,000 to $4.590 million for 2016/17 due to a transfer to non-departmental output expense International Education Programmes for administration of the Prime Minister's Scholarships for Asia Fund.

Support to Apprentices (M14)

Scope of Appropriation

This appropriation is limited to payments to NewZealand Apprentices and other participants in workplace-based training, including Māori and Pasifika Trades Trainees, towards their tools and other training related costs.

Reasons for Change in Appropriation

This appropriation decreased by $930,000 to $1.260 million for 2016/17 due to:

a transfer tonon-departmental output expense Tertiary Sector/Industry Collaboration Projects for Māori and Pasifika Trades Training (MPTT) project coordination to support growth in learner and consortium numbers ($850,000 decrease), and

a transfer of surplus MPTTTools Subsidy funds to non-departmental output expense Administration of and Support for the Tertiary Sector to evaluate the effectiveness of the MPTT programme in 2017 ($80,000 decrease).

3.5 - Non-Departmental Capital Expenditure

Support for Tai Poutini Polytechnic (M14)

Scope of Appropriation

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

Capital Expenditure

2016/17
Estimates
$000 / Supplementary Estimates
$000 / Total
$000
Total Appropriation / - / 3,600 / 3,600

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

2016/17
Performance Measures / Estimates
Standard / Supplementary
Estimates
Standard / Total
Standard
Tai Poutini Polytechnic is to submit a business case with options for continued access to tertiary-level vocational education on the West Coast, which meets Treasury’s standards, by 30 June 2017. / 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.

Current and Past Policy Initiatives

Policy Initiative / Year of
First
Impact / 2016/17
Final Budgeted
$000 / 2017/18
Budget
$000 / 2018/19
Estimated
$000 / 2019/20
Estimated
$000 / 2020/21
Estimated
$000
Tai Poutini Polytechnic Short-term Financial Support / 2016/17 / 3,600 / - / - / - / -

Reasons for Change in Appropriation

This new appropriation in 2016/17 is to provide short-term financial assistance to Tai Poutini Polytechnic in the form of a capital injection to maintain its capability to operate until the end of August 2017.

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

Multi-Category Expenses and Capital Expenditure

Stewardship of the Tertiary Education System (M14)

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

2016/17
Estimates
$000 / Supplementary Estimates
$000 / Total
$000
Total Appropriation / 12,141 / 760 / 12,901
Departmental Output Expenses
Policy Advice / 4,856 / - / 4,856
Research, Data Analysis and Monitoring / 7,285 / 760 / 8,045
Funding for Departmental Output Expenses
Revenue from the Crown / 12,141 / 260 / 12,401
Policy Advice / 4,856 / - / 4,856
Research, Data Analysis and Monitoring / 7,285 / 260 / 7,545
Revenue from Others / - / 500 / 500
Research, Data Analysis and Monitoring / - / 500 / 500

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

2016/17
Assessment of Performance / Estimates
Standard / Supplementary Estimates
Standard / Total
Standard
Departmental Output Expenses
Policy Advice
The total cost per hour per person of producing policy outputs (see Note 1). / $120 - $135 / At most $155 / At most $155

Note 1 (Note 3 in 2016/17 Estimates) - This measure provides the total cost of an hour of professional staff time devoted to both policy advice and other policy outputs. Total cost includes the cost of labour, overheads, support staff, direct costs and outsourced work to support production.

Reasons for Change in Appropriation

This appropriation increased by $760,000 to $12.901 million for 2016/17 due to:

funding from the Export Education Levy to support international student wellbeing ($500,000 increase), and

a transfer from 2015/16 due to some initial delays in the Tertiary Information Enhancement Project ($260,000 increase).

Tertiary Tuition and Training (M14)

Overarching Purpose Statement

The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in NewZealanders’ 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 NewZealand 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.

Reasons for Change in Appropriation

This appropriation decreased by $25.330 million to $2,465.672 million for 2016/17 due to:

underspends from provider-based programmes that will partly offset the cost of 2017 Budget initiatives ($19 million decrease)

a transfer to non-departmental capital expenditure Supportfor Tai Poutini Polytechnic to provide short-term financial assistance to the polytechnic, in the form of a capital injection ($3.600 million decrease), and

a transfer to 2017/18 for the DualPathways Pilot being run from 2017 to help students achieve qualifications at Levels 2 and 3 and then move into employment or further education ($2.730 million decrease).

THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS 2016/17 B.7  1