Circular 2016/12

Date September 2016 | End date 31 August 2017 | Circular 2016/12 | Category Governance

Annual Reporting Circular

This circular is about Preparation of your 2016 annual report.

This circular replaces Circular 2015/09 issued August 2015.

The action needed is Ensure your school’s 2016 annual report incorporates all requirements.

It is intended for Chairpersons of boards of trustees and principals of all state and state-integrated schools.

All those preparing school annual financial statements.

Appointed auditors of schools.

Introduction

This circular provides information, advice and guidance on the preparation of your 2016 annual report.

Accounting Changes

There are no changes to the accounting framework for the 2016 Annual Financial Reporting Year (i.e. year ended 31 December 2016). However, the Kiwi Park model has been updated for 2016 by including further guidance and added features so that is easier to navigate through and use.

Please note the Public Sector Public Benefit Entity (PBE) standards are the mandatory accounting standards for both state and state-integrated schools.

For consistency and to ensure all schools are reporting in accordance with the Public Sector PBE accounting standards, the Ministry has made it a requirement that all schools report under Tier 2, unless they are required to report under Tier 1 ( i.e. they have expenditure greater than $30 million).

Section 87 (3)(AA) of the Education Act 1989 states “The annual financial statements in the annual reports must be in the form (if any) determined by the Secretary after consultation with the Auditor General”. The Secretary for Education has determined that schools should report in the format set out in the Ministry’s Kiwi Park model. The 2016 Kiwi Park model will be available on the Ministry website by the end of September 2016.

The standards contain provisions for schools moving between tiers. If your school is expected to have total expenditure over $30 million for the 2016 year please contact the Ministry of Education through your Regional Finance Advisors.

Annual Reports

The annual report is one of two key accountability documents that boards of trustees are required to use to inform and report to stakeholders such as the Ministry of Education, Members of Parliament and, most importantly, parents and the wider school community.

The annual report contains the audited annual financial statements that show how the board has applied its financial resources to achieve its charter goals.

The annual report also contains an analysis of any variance between the planned aims, objectives, directions, priorities, or targets (as set out in the school charter) and what the school has actually achieved during the year. The analysis of variance describes how the school has addressed the board's priorities for improving student achievement, and how successful the school's approach has been. The analysis of variance should also provide the basis for plans for the coming year.

As was the case in 2015, there is no requirement to include Ngā Whanaketanga Rumaki Māori/National Standards (NAG2A(b) and (c)) information in your annual reports. The NAG2A information is only required to be submitted along with your school charter and analysis of variance before 1 March. Your board may still like to include this information in your annual report to outline the progress and achievement of your students for your school community.

Requirements and Guidance

The Kiwi Park model financial statements (and related instructions and guidance) can be found on the School Finance homepage ~~School Finance homepage at:~~www.education.govt.nz/school/running-a-school/school-finances

The Kiwi Park model is compulsory for the 2016 Annual Reports of all schools except those required to report under Tier 1.

Information on school financial management in general can be found on the School Finance homepage. In particular the Financial Information for Schools Handbook, issued in February 2009, (see www.education.govt.nz/running-a-school/school-finances ) lists a number of resources and references that may be useful for technical advice, and to help you prepare your annual financial statements.

Payroll

The payroll information provided to you for 2016 Annual Reporting will be very similar to the 2015 year, with a School Annual Accrual Report (SAAR), Leave Liability Report and several additional schedules indicating known errors with the Novopay data (Funding Code errors, Stop Pays and Overpayments).

We are planning to release the SAAR and associated schedules in the same manner as for the 2015 year. We will send communication in early December as a reminder. .

We encourage you to complete your draft financial statements once the SAAR report is available, as this will speed up the annual reporting process for you.

Filing of 2016 Annual Report

By 31 March 2017, the financial statements (and as far as possible the whole annual report) are due with your auditor. Auditors are required by auditing standards to review the contents of the whole annual report. The prime purpose of the requirement is to enable auditors to check consistency of information between the financial statements and the rest of the report.

If a financial service provider completes your financial statements, it is still the board’s responsibility to ensure that the service provider meets this deadline.

By 31 May 2017, a single PDF file of your annual report, including audited financial statements (containing auditors stamp) and required signatures (Chair of Board, Principal, and Auditor), must be submitted to the Ministry via the Ministry’s School Data Portal . It is the responsibility of the board to submit the report and not that of your auditor or your financial service provider. NOTE CHANGE from previous years - schools are no longer required to email or post the Annual Reports to the Ministry.

To help ensure clarity of document content, you are asked to use original documents, rather than photocopies, to construct the PDF file. The Ministry recommends that you agree upon a timetable with your auditor to ensure that the annual report is with the Ministry by 31 May 2017. This timetable should allow for sufficient time to work through any issues identified through the audit.

School data Portal for Submission of Annual Reports

Please use the School Data Portal to submit your annual reports to the Ministry. Please use the portal drop-down option ‘Annual Report’ as shown in the picture below to ensure your annual report is submitted correctly.

Image may be NSFW.
Clik here to view.

Advice and support

If you have questions about preparing Annual Reports, or the requirements of this circular, please contact your local Ministry of Education Regional Financial Advisor.

Contact details are as follows:

Carmel Riordan , Te Tai Tokerau, Auckland

carmel.riordan@education.govt.nz or phone +64 9 632 9440

Margaret Pattullo– Waikato, Bay of Plenty, Hawke’s Bay and Gisborne

margaret.pattullo@education.govt.nz or phone +64 6 833 6734

Nash Anand– National Office

nash.anand@education.govt.nz or phone + 64 4 463 8250

David Hyland– Taranaki to Wellington

david.hyland@education.govt.nz or phone + 64 4 463 8699

Fiona Hollingworth , South Island

fiona.hollingworth@education.govt.nz or phone +64 3 378 7373

If you have questions about preparing the financial statements, ask your board’s accountant or financial service provider.