15 December 2016
Ref: OI/16/01273
Cody C
mailto:[FYI request #5001 email]
Dear Cody
Thank you for your request, received on 21 November 2016, for the following information
under the Official Information Act 1982 (the Act):
Specifically I would like to know (for each employer in the scheme):
Name of employer (i.e. Employer McEmployerface Ltd)
Programme delivered (i.e. Workplace Literacy or Nat.Cert. Computing L2)
Total enrolled vs. completed students (i.e. 125/500)
Pass rate of students (i.e. 25%)
Total funding paid to the employer for the DFS programme
Additionally, considering that this is one of the first instances where employers were
compensated directly for participation in the scheme it may be assumed that there is a
potential for fraud to occur.
What steps were taken to avoid fraud occurring in the programme?
Were any employers "investigated" during the programme (for instance, employers
cannot claim funding through the fund for recognised prior learning or they achieved a
very high pass rate, i.e. >80%)? If so; which employer, for what reason and what steps
were taken as a result (i.e. monies recovered)?
How can a member of the public report possible fraud with the Direct Funding Scheme
should they become aware of it?
Seven organisations have participated in the direct funding scheme to date. The information
requested regarding these organisations is attached to this letter. 2016 data and funding
information is not included as this information will not be finalised until April 2017. All financial
figures provided are GST exclusive.
Employers in the DFS cannot award qualifications listed on the New Zealand Qualifications
Framework themselves. They partner with a tertiary education organisation (TEO), such as a
registered private training establishment (PTE) or an industry training organisation (ITO). The
TEO must meet the relevant New Zealand Qualifications Authority (NZQA) requirements for
assessing and awarding qualifications.
NZQA, as part of its regular monitoring processes, conducts individual External Evaluation
and Review (EER) of TEOs. An EER includes an assessment of sub-contracting, teaching,
learning and assessment practices. The TEC also carries out audits of TEOs including their
compliance with funding conditions.
In addition, employers are required to report trainee enrolment, achievement and completion
details to the Tertiary Education Commission (TEC). This data is monitored to identify any
anomalies in the delivery of DFS programmes. Achievement is verified against NZQA
records.
TEC has the ability to review any educational arrangements it funds as part of its funding
conditions.
Programmes funded via the DFS are no more likely to be subject to ‘fraud’ than any other
programmes funded directly through TEOs (ie, presence of an employer does not
necessarily increase the risk). The requirement that an employer in the DFS is partnered
with a TEO ensures the relevant quality assurance requirements are met.
To date, there have been no incidents or anomalies which would warrant an investigation by
the TEC into the delivery of a DFS programme.
If anyone has any concerns about an organisation’s compliance with funding conditions they
should contact the TEC. If a person has concerns about fraud related to the delivery of DFS
programmes they can contact the New Zealand Police, or the Serious Fraud Office.
Under section 28(3) of the Act you have the right to complain to the Ombudsman about my
response.
Yours sincerely
Tim Fowler
Chief Executive
Tertiary Education Commission
Ryman Healthcare Limited
Commenced training in the scheme: 1 Jan 2014 (still active)
2014 funded delivery: $546,873
2015 funded delivery: $1,562,177
Trainee enrolments
expected to complete
Trainee enrolments
Trainee enrolments
in 2014 & 2015
% completions for those
expected to complete
Trainee enrolments
expected to complete
that completed
expected to complete
in 2014 & 2015 that
Programme
funded in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
completed in 2016
Cleaning & Caretaking (L2)
166
151
33
22%
Community Support Services (L3)
228
159
93
58%
3
Community Support Services (L4)
408
295
187
63%
4
Diversional Therapy (L4)
71
41
15
37%
Health, Disability, & Aged Support (L2)
571
517
175
34%
2
Health, Disability, & Aged Support (L3)
760
501
262
52%
4
Grand Total
2204
1664
765
46%
13
Engineering Taranaki Incorporated
Commenced training in the scheme: 1 Mar 2014
Exited the scheme: 31 Dec 2015
2014 funded delivery: $53,671
2015 funded delivery: $141,547
Trainee enrolments
expected to complete
Trainee enrolments
Trainee enrolments
in 2014 & 2015
% completions for those
expected to complete
Trainee enrolments
expected to complete
that completed
expected to complete
in 2014 & 2015 that
Programme
funded in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
completed in 2016
Apprenticeship in Engineering - Fabrication (L4)
33
-
-
-
-
Apprenticeship in Mechanical Engineering (L4)
28
-
-
-
-
Grand Total
61
-
-
-
-
Note: all enrolments with Engineering Taranaki Incorporated were apprentices and therefore expected completion dates are around 3-4 years after enrolment.
Southern Group Training Trust
Commenced training in the scheme: 1 Apr 2014 (still active)
2014 funded delivery: $13,005
2015 funded delivery: $65,099
Trainee enrolments
expected to complete
Trainee enrolments
Trainee enrolments
in 2014 & 2015
% completions for those
expected to complete
Trainee enrolments
expected to complete
that completed
expected to complete
in 2014 & 2015 that
Programme
funded in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
completed in 2016
Apprenticeship in Carpentry (L4)
48
-
-
-
-
Grand Total
48
-
-
-
-
Note: all enrolments with Southern Group Training Trust were apprentices and therefore expected completion dates are around 3-4 years after enrolment.
New Zealand Kiwifruit Growers Incorporated
Commenced training in the scheme: 1 Aug 2014
Exited the scheme: 31 Dec 2015
2014 funded delivery: $9,287
2015 funded delivery $6,725
Trainee enrolments
expected to complete
Trainee enrolments
Trainee enrolments
in 2014 & 2015
% completions for those
expected to complete
Trainee enrolments
expected to complete
that completed
expected to complete
in 2014 & 2015 that
Programme
funded in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
in 2014 & 2015
completed in 2016
Horticulture (L1)
23
22
15
68%
-
Grand Total
23
22
15
68%
-
Vodafone New Zealand Limited
Commenced training in the scheme: 1 Jun 2015 (still active)
2015 funded delivery: $334,080
Trainee enrolments
Trainee enrolments
Trainee enrolments
expected to complete
% completions for those
expected to complete
Trainee enrolments
expected to complete
in 2015 that completed
expected to complete
in 2015 that completed
Programme
funded in 2015
in 2015
in 2015
in 2015
in 2016
Adult Education & Training (L4)
8
-
-
-
-
Adult Education & Training (L5)
12
12
-
0%
11
Business (L4)
14
14
14
100%
-
Contact Centres (L3)
55
6
-
0%
-
Project Management (L4)
33
-
-
-
-
Project Management (L5)
13
-
-
-
-
Sales (L3)
126
-
-
-
-
Grand Total
261
32
14
78%
11
Fletcher Building Holdings Limited
Commenced training in the scheme: 1 Aug 2015 (still active)
2015 funded delivery: $337,549
Trainee enrolments
Trainee enrolments
Trainee enrolments
expected to complete
% completions for those
expected to complete
Trainee enrolments
expected to complete
in 2015 that completed
expected to complete
in 2015 that completed
Programme
funded in 2015
in 2015
in 2015
in 2015
in 2016
Competitive Manufacturing (L3)
463
-
-
-
-
Competitive Manufacturing (L4)
175
-
-
-
-
Grand Total
638
-
-
-
-
This employer started late in 2015 so no completions were expected in 2015.
St John New Zealand
Commenced training in the scheme: 1 Apr 2016 (still active)
Programme
Emergency Care (L3)
Ambulance Practice (L5)
Grand Total
