Requirements for registration

The Education Act provides that NZQA must grant an application for registration, and may only grant such an application, if it is satisfied that the PTE has satisfied the requirements in section 236(1)(a)-(e) of the Education Act.

This section explains each part of section 236(1) in detail.

Section 236(1)(a) - Suitable Body

The Act requires that a PTE is a suitable body to be registered according to the goals and purposes set out in the statement that accompanies its application. The PTE's statement of goals and purposes is expected to show it is focusing on educational success, on good teaching and learning and on positive educational outcomes for learners and other stakeholders.

NZQA will also take into consideration the relevance of the applicant's educational goals and objectives and its courses and training, to the tertiary education "objects" (i.e. objectives) in section 159AAA of the Education Act 1989.

NZQA looks at a broad range of matters to make its decision about suitability: ownership, finances, business management, education provision, support for learners and quality assurance.

These are detailed in the sections that follow.

Ownership

NZQA wishes to be satisfied that:

1. the members of the PTE's governing body have the right experience to manage a provider of good education and training;
2. there are, or are likely to be, no arrangements with shareholders, trust beneficiaries, related companies and other bodies, including overseas interests, that will conflict with the PTE's educational focus or be incompatible with its education and training purposes and goals;
3. the PTE recognises its responsibility to New Zealand's cultural foundations and provides for relevant principles of the Treaty of Waitangi to be incorporated into its culture and activities.

Finances

NZQA will wish to be satisfied the PTE has a sound financial basis and is likely to be financially stable. The PTE's financial structure and resources will be analysed so NZQA can be satisfied:

4. the enterprise's financial structure will support ongoing financial viability. In particular, NZQA will look to see if there are any arrangements, including shareholder arrangements, which may adversely affect ongoing viability. The PTE's debt/equity ratio must provide an adequate level of confidence in its ongoing financial sustainability;
5. the annual budget is tied to outcomes, and is in alignment with available resources, including staff input, which support the PTE's education provision and administration;
6. either the PTE will generate sufficient income through its education activities to meet its financial commitments and ensure its financial viability or it will have call on other sources of funding that do not call in to question its educational goals and purposes.

Business management

If the PTE is to meet its educational goals and purposes, it must be soundly managed as a business and as a provider of education and training. NZQA wishes to be satisfied:

7. day-to-day management responsibilities will be carried out by people with skills and experience appropriate to the PTE's educational goals and purposes, its specific characteristics, its distinctive contribution to the tertiary education sector and the services it provides to learners and other stakeholders;
8. the PTE has complied with all legal requirements; has obtained all necessary consents and has filed all the appropriate legal and financial documents as required by law;
9. public information about the PTE and its education provision is accurate, clear and not misleading. For example, the name of the PTE must not mislead as to the nature of the PTE, or duplicate or resemble the name of another registered PTE;
10. there will be sufficient experienced staff to ensure the proper administration of the PTE;
11. facilities and resources will be provided for the wellbeing of staff, students and other persons undertaking courses through the PTE;
12. the establishment has personnel policies and procedures for all staff that comply with new Zealand laws and meet the needs of the PTE;
13. the PTE will have core management policies, procedures and systems for ensuring that it will be properly managed. These may include appropriate delegations for decision-making, purchasing and procurement policies, information management, including systems for the collection, recording and transfer of financial, statistical and other information requested by government agencies, internal audit and risk management processes;
14. a risk management plan has been developed. It must be appropriate to the PTE and its special characteristics and identify, analyse and evaluate risks across the PTE's business activities. Options for mitigating the likelihood and consequences of risks must be identified and referenced to the PTE's policies and procedures.

Education provision

NZQA will take into account the relevance of the applicant's proposed courses and training to Tertiary Education Strategy objectives. NZQA will also wish to be satisfied:

15. there has been a sound process for identifying the needs of learners to meet either national or local stakeholder needs. The PTE must demonstrate these needs will be met by the courses and programmes it will provide;
16. the qualifications and past experience of the enterprise's governors and key staff members demonstrate there is sufficient expertise to ensure the enterprise will achieve good educational outcomes;
17. the PTE will have policies and procedures for managing learner admission and enrolment that cover the following steps:

1. the PTE provides information on qualifications, including academic content (courses);
2. the learner applies to the PTE for admission and enrolment (separately or together);
3. the PTE verifies the learner's identity and citizenship;
4. the PTE confirms the learner's eligibility to study (admission);
5. the PTE offers to enrol the learner on a course or programme of study (a programme of study is a combination of courses that make up a qualification);
6. the learner accepts the offer (enrolment contract);
7. the PTE records the enrolment;
8. the PTE invoices the learner for tuition fees;
9. the learner pays tuition fees or arranges for them to be paid;
10. the PTE records payment of fees and any changes to enrolment, including withdrawal and refunds;
11. the learner attends the course(s) beyond the period when a withdrawal with a refund applies.

18. the PTE will have capacity to develop, design and deliver courses that are responsive to the needs of students and other stakeholders and consistent with the establishment's goals and objectives.
19. the proposed systems of assessment and moderation will:
    1. ensure assessment processes and decisions are open, systematic and consistent; assessment methods are appropriate, fair, manageable and integrated with work or learning and evidence is valid, authentic and sufficient;
    2. provide for internal moderation of assessment materials and judgements;
    3. comply with external moderation requirements of NZQA and national standard-setting bodies;
    4. ensure learners are assessed only against those unit standards or qualifications registered on the national Qualifications Framework for which the provider has accreditation.

Support for learners

To be a suitable body for registration, a PTE must provide learner information, entry and support that will ensure appropriate learning pathways, a safe learning environment and a reasonable chance of successful achievement. This will foster a holistic approach to learner well-being that encompasses taha whenua (social/cultural), taha wairua (spiritual), taha hinengaro (emotional/mental) and taha tinana (physical) dimensions to encourage and enable progress. NZQA wishes to be satisfied that:

20. entry and selection criteria will be clearly explained and known by learners, and learners will be assessed as to their capability to succeed in a proposed course before enrolment;
21. the PTE will have a clear set of rules for student participation in courses and on-site behaviour which are enforced through a fair and equitable disciplinary policy;
22. learners will have access to guidance and support systems appropriate to their educational needs. Appropriate ancillary learning services and facilities, such as libraries, study aids, electronic data access, must be available for student use when these are needed to support the achievement of good learning outcomes;
23. there will be a clear process for receiving and responding to student complaints which is accessible by students;
24. students and prospective students can access clear information on the PTE, its courses and other educational services to enable them to make informed choices about their course of study;
25. the PTE has, or will have in place, before any monies are accepted from or on behalf of students, arrangements that are compliant with the NZQA's Student Fee Protection Policy;
26. the PTE will implement systems for gathering, recording, maintaining and storing student information which ensures records are accurate and accessible by students and which protect the integrity of the information;
27. a PTE enrolling international students will be a signatory to the Code of Practice for the Pastoral Care of International Students.

Quality assurance

Effective quality management underpins sustainable business and creates a culture of constant improvement. In determining the establishment's suitability for registration, NZQA will wish to be satisfied:

28. the PTE will implement a comprehensive and appropriate quality management system across all aspects of its business;
29. the PTE has capacity to implement a process for making judgements about the quality, value and importance of its educational outcomes and key contributing processes. This will involve a process of ongoing evaluative self-assessment that will be validated by external evaluation and review in accordance with NZQA's policies for its Quality Assurance Framework;
30. the PTE will ensure information from self-assessment and external evaluation and review is incorporated into its planning processes;
31. the PTE has the capacity to provide ongoing evidence of its compliance with the policies and criteria for ongoing registration that are established by NZQA under section 253(ca) of the Education Act.

Section 236(1)(b) Adequate staff, equipment and premises

NZQA must be satisfied the applicant has, or will have at the relevant time, adequate staff, equipment, and premises to provide its courses of study or training. NZQA will consider whether:

Staff

32. policies and procedures for ensuring the recruitment, management and development of teaching staff will be implemented that ensure there are enough people with the necessary skills, experience and knowledge to provide high quality teaching and learning;
33. staff development and management processes will be implemented to ensure teaching skills and subject knowledge are current and relevant to the needs of learners and other stakeholders.

Equipment

NZQA will consider whether:

34. adequate and appropriate learning resources and equipment that are current and relevant will be accessible by learners before teaching and training begins;
35. the establishment will implement policies for ensuring equipment used by learners and teachers at all teaching sites, is safe to use and is used safely.

Premises

NZQA will consider whether the establishment has, or will have, premises which are of a sufficient size for the number of learners, are suitable to the learners' needs and are appropriate for the courses being taught.

36. The establishment implements policies on permanent, regular and occasional premises which cover quality, location, compliance with relevant legislation, and the health, safety and comfort of students.
37. The establishment will ensure off-site learning is undertaken in conditions which are equal to on-site learning conditions.

Section 236(1)(ba) Acceptable financial management

NZQA has the statutory responsibility to ensure the PTE has, or is likely to have, acceptable financial management practices and performance. A registered PTE is expected to follow sound financial management practices and achieve acceptable financial performance to professional standards.

Accounting

38. All financial records must be kept up-to-date and follow accepted accounting principles.
39. The establishment must have an adequate system of internal controls which is reviewed annually.

Financial reporting

40. Financial statements must be prepared according to Generally Accepted Accounting Practice and be in full compliance with all financial reporting standards in New Zealand.

Section 236(1)(c) and section 236(1)(d) - Fees and costs

NZQA must be satisfied that the PTE complies with, or is capable of complying and likely to comply with, the parts of section 236A of the Education Act that cover:

Course fees and costs

41. The establishment must have processes for:
    1. identifying the items which students will be required to buy or provide for each course of study;
    2. calculating course fees and any additional costs and financial commitments for each course;
    3. ensuring written information on total course costs and other financial commitments is provided to students before enrolment is completed.

Withdrawals and fee refunds

42. Unless it has been granted an exemption, the PTE must have or have made arrangements for:
    1. processes for receiving and receipting student fees;
    2. bank and trust accounts to ensure monies received from students are separately identified and protected;
    3. policies and procedures for student withdrawal from a course and from the establishment;
    4. appropriate policies and procedures for refunds for students withdrawing within the first eight days for courses of three months or more, or within two or five days for courses of less than three months for international students. (If the withdrawal occurs up to the end of the second day of the start of a course of up to four weeks and six days duration, the PTE must pay an amount equal to the fees paid less a deduction of 50 percent. However, if two days constitutes the full amount of tuition paid for by the student, the PTE may retain 100 percent of the payment. If the withdrawal occurs up to the end of the fifth day of the start of a course of five weeks or more but less than three months duration, the PTE must pay an amount equal to the fees paid less a deduction of 25 percent. )

Section 236(1)(e) - Standard of instruction

NZQA must determine that the standard of instruction will not be lower than the standard expected if the courses were provided at a polytechnic or college of education.

43. This assessment is based on:

1. the nature and comparability of the proposed courses of education and training;
2. qualifications and experience of teachers and instructors;
3. the equipment, premises and resources that will be used for teaching and learning.

Possible evidence requirements

NZQA will consider all relevant evidence for this requirement.

Page updated: 20 October 2009