Commission moves to recover more cash

Posted By TEU on Feb 28, 2013 |

Under ministerial direction the Tertiary Education Commission has shifted the point at which it can recover money from institutions from under-delivering on the number of students it teaches from 97 percent to 99 percent.

The new ministerial funding determination means that the commission will be able to claim back Student Achievement Component money from an institution that has taught less than 99 percent of its allocated equivalent full time students.  At some small institutions that will leave little room for error.

Education Directions chief executive Dave Guerin, who first covered the issue on his subscriber-website, ED Insider, described the shift in tolerance as a ‘major change’.

“Presumably it has been done because some organisations started to gravitate towards the 97 percent level (gaining 100 percent of the funding with 3 percent fewer students), but it now leaves a very small buffer for TEOs.”

It seems likely that ministerial pressure to save money will also be driving the funding determinations.

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