Policy

NAG 4
According to legislation on financial and property matters, each Board of Trustees is also required in particular to:

(i)     allocate funds to reflect the school's priorities as stated in the charter;
(ii)    monitor and control school expenditure, and ensure that annual accounts are prepared and audited as required by the Public Finance Act 1989 and the Education Act 1989;
(iii)   comply with the negotiated conditions of any current asset management agreement, and implement a maintenance programme to ensure that the school's buildings and facilities provide a safe, healthy learning environment for students.

To comply with the requirements of NAG 4 and the relevant sections of the Education Act 1969, the Public Finance Act 1989 and the Crown Entities Act 2005 the Board has adopted the following policies:-

Financial Planning

➢    The Board will approve annually, no later than its last meeting in any calendar year, a provisional budget for the year commencing on the following 1 January that reflects the priorities, for both operational and capital expenditure, set by the Board in its annual planning process. This provisional Budget will be confirmed as the formal Budget for inclusion in the annual financial statements no later than the end of Term 1 of the year to which the Budget relates.
➢    The Board determines that, unless it, by formal resolution, resolves that special circumstances warrant, each Budget will be prepared on the basis that at the end of the financial year to which it relates, income for that year will be sufficient to meet all anticipated expenditure (defined as all estimated operating expenditure, including depreciation, plus any capital expenditure not funded from Ministry of Education or other external sources).
➢    The Board determines that working capital (defined as current assets less current liabilities) shall, at any one time, not be less than one term’s anticipated expenditure.  NOTE – for the purpose of implementation of this policy one term’s anticipated expenditure is defined as “25% of Total Budget Operating Expenditure less depreciation and less centrally resourced teachers’ salaries”.

Accordingly the Principal, in implementing these polices, will:-

➢    Prepare a Budget which reflects the Board’s priorities in sufficient detail to enable the Board to give meaningful approval to it.
➢    Prepare cash-flow projections for the ensuing year showing how the Board’s policy on working capital will be complied with.
➢    Comply with the Board’s requirement of a balanced budget
➢    Provide sufficient information to the Board, including assumptions made, to enable it to satisfy itself that the projections in the Budget are credible.

Financial Management

➢    The Principal is responsible for the financial management of the school. However the Board  reserves to itself the power to incur debt, use any long- term reserves, or use earmarked funds for any purpose other than what they were earmarked for.
➢    The Board requires the Principal to report to each ordinary meeting of the Board the following financial information:-
➢    Summary of Progress to date against Budget in regard to operating revenue and expenditure
➢    Actual Working capital against Board’s required level as per Financial Planning Policy
➢    Detailed report on expenditure against budget for any major capital projects in progress
➢    Reasons for any deviation from Budget of more than 10% in any major category.

The Principal, in implementing this policy will ensure that:-

➢    All relevant legislative financial management and reporting requirements are complied with
➢    Generally accepted accounting principles applicable to schools in New Zealand will be used in the preparation of all financial reports.
➢    All revenue due to the school is collected in an accurate and timely manner.
➢    The requirements of employment legislation and Ministry requirements in regard to payroll are complied with
➢    All payments and returns due to IRD are made in accordance with deadlines.
➢    All expenditure incurred is authorised by the relevant staff member holding the authority to incur that expenditure and that the expenditure is a lawful use of school funds and stands a test of prudent use of public money.
➢    Any expenditure not provided for in the Budget is authorised by the Board, or in the case of urgent necessity, the Chairman acting on behalf of the Board. In these circumstances, the Chairman and the Principal will report the urgent expenditure to the next Board meeting.

Review process

-    Recommendation from external audit
-    Finance Sub-Committee
-    2010