TEC recovers funding from industry training
17 May 2011
The Acting Chief Executive of the Tertiary Education Commission today announced that the TEC is in the process of
recovering up to $4.3m from 18 of 38 Industry Training Organisations.
“In 2009, at the Government’s direction, the TEC began a programme of work aimed at improving the educational and
financial performance of ITOs. This work included reviews of all ITOs in late 2010 and early 2011,” said Dr Colin Webb.
“These reviews revealed that a number of ITOs did not have robust enough monitoring and reporting processes in place,
which led to some ITOs claiming funding that they were not eligible for. That funding related to trainees who were not
actively engaged in training in 2009.”
The TEC reviews of all ITOs also identified areas of improvement for both the TEC and the ITOs. In response, the TEC
introduced new funding rules for 2011, and from later this year will undertake in-depth periodic audits of ITOs to
ensure they are complying with the updated funding rules.
“Where the TEC finds evidence of non-compliance, we will continue to recover funding,” stated Dr Webb.
“In addition to this, since early 2010 economic conditions have led to a decline in the overall number of trainees in
industry training.
“In response the TEC is recovering some 2010 funding from ITOs. This is funding that was allocated by the TEC, but not
used by the ITOs due to a reduction in demand for training from industry.”
“This means the TEC will be investing less funding in industry training in 2011 as overall funding levels are based on
demand.”
“The TEC will continue to monitor trainee numbers and performance to ensure funding continues at an appropriate level,”
said Dr Webb.
ENDS