Financial monitoring of industry training organisations

Te aroturuki ā-pūtea i ngā whakahaere whakangungu ahumahi

Last updated 16 March 2017
Last updated 03/16/2017

This page sets out our requirements for financial reporting by industry training organisations (ITOs)

We require each ITO to provide financial information each year via a template. The information included in the template is used to:

  • help with monitoring ITOs
  • meet our obligations under the the Education Act 1989 (section 159YD) to monitor the financial performance of ITOs to ensure that funding is spent in accordance with the purpose for which it was allocated
  • fulfil our obligations under the Industry Training and Apprenticeships Act 1992 (sections 7a and 7b) to monitor the extent to which ITOs are funded by industry, and their capability.

These obligations support the strengthening of the industry training sector by ensuring that ITOs that receive government funding are financially viable and are able to fulfil their statutory role.

This information is collected at least once a year.

Financial performance guidance for ITOs (PDF, 673 Kb)

Industry Cash Contribution

The Industry Cash Contribution (ICC) is calculated in the template. From 2014 the ICC rates are:

The template still calculates just one rate and we will review the result for each ITO against the proportion of its trainees and apprentices.

ITO Financial Monitoring Framework

We have worked with sector representatives to develop a formal financial monitoring framework (FMF) for ITOs. The FMF provides clarity and transparency for the sector about the financial monitoring assessments made by the TEC. The FMF assessments will also inform reporting and engagement for the coming year.

A detailed outline of the FMF can be found in the ITO FMF guidelines. 

Industry training organisation financial monitoring framework guidelines (PDF, 635 Kb)