Financial management and reporting

Collectively, all members of a school board are accountable for the funding and other resources allocated to the board.

A regular financial management report to the board will provide:

• income and expenditure accrued for the current year to date (especially important for mid-term reports)
• progress on any planned or underway capital expenditure (ie property, ICT purchases etc)
• a financial forecast to the end of the year
• banking staffing usage year to date and planned usage for the remainder of the year.

The following questions will assist your board to ensure that the school finances are being managed effectively:

• What are the school’s priorities for this year?
• Does the board know that all income and expenditure has been properly accrued for the report (especially important for mid term reports)?
• Are capital expenditure purchases reported separately from the regular financial reports?
• Does the financial report provide a forecast for the end of year? Is the school on track to meet the budget?
• If the forecast is indicating that the school is not on target to meet budget, what steps is the board taking to rectify the outcome?
• Does the board know what the status of banking staffing is - under or over used?
• Is the board clear on the impact of banking staffing? Does the board have a clear understanding of the cost of both teaching and non-teaching staff that is being expensed to the operations grant?

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Annual Financial Reporting

Each year every school must produce an Annual Report. The annual report has to be sent to the school’s auditors by 31 March and a copy of the audited report sent to the Ministry by 31 May each year. The legal requirements for the annual report are contained in the Education Act 1989, and the Crown Entities Act 2004.

Guidance on how to prepare your school's annual report and for assistance with financial management and reporting is available on the Ministry of Education's School Finances Homepage and in the Financial Information for Schools Handbook (FISH).

Support for schools

The Ministry has a monitoring and advisory role. Each school's audited financial statements are reviewed, and we may ask for explanations if there is poor liquidity or financial performance, or net assets have reduced.

The Ministry has regional financial advisors who are experienced in schools' financial matters and can provide advice and support.