Circular 1998/25 - Payments by parents of students at state schools

Date 23 June 1998 | Circular number 1998/25 | Category Miscellaneous

Payments by parents of students in state and state-integrated schools

Purpose

1. This circular clarifies the rights of boards of trustees, parents and students regarding the request for donations and other forms of payments in schools. It expands and replaces Circular 1994/31.

Action required

2. This circular is for the information of principals and boards to assist them in formulating policy related to requests for financial contributions from parents. It should be brought to the attention of all staff likely to be involved in requests for payments of various kinds.

Summary

3. The first section of this circular consists of a basic document which:
• discusses the provision in the Education Act 1989 relating to free education and free enrolment;
• explains the status of the general payment to a school and discusses terminology used to describe it;
• explains the status of attendance dues at state-integrated schools;
• provides advice about other payments which occur in schools;
• discusses appropriate action in cases of non-payment.
4. Appendix 1 discusses 18 specific questions related to payments in schools. Appendix 2 quotes relevant legislation.

The right to free enrolment and free education

5. Section 3 of the Education Act 1989 states that every person who is not a foreign student is entitled to free enrolment and free education at a State school from the person's 5th birthday until 1 January following the person's 19th birthday.
6. The right to free enrolment and free education means that a board of trustees may not make payment of a fee a prerequisite for enrolment or attendance of a domestic student. The only exception to this rule is the provision for proprietors of integrated schools to charge attendance dues. These are dealt with in paragraphs 15 and 16.
7. In particular, a board of trustees may not demand a fee to cover the cost of either tuition or materials used in the provision of the curriculum.
8. Parents may not be levied to pay for things like heat, light and water charges, for which schools are resourced through the operations grant.
9. The right to free enrolment means that it is unlawful to charge for information about enrolment at the school.

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School donations

10. One of the problems in discussing the legalities of boards' rights to seek payments from parents is that different boards use different terms to describe the same thing. Government provides operational funding (including different types of supplementary funding) to State schools to enable them to run the school and deliver the curriculum to their students. Most boards, however, annually ask parents to pay a specified sum of money which will enable the board to provide additional services which directly benefit students. This general sum is most conveniently described as the "school donation" and this is the term used in this circular. Some boards, however, describe it as "school fees" and this is the term which the general public most commonly uses to describe it. Other boards use the term "activity fees" to describe the same thing. Even more confusingly, some boards use this latter term to describe payments for activities such as school camps, concerts by visiting artists, class trips etc, while other boards use it to describe payments associated with the cost of materials in particular subjects.
11. While boards may specify a sum for the annual school donation, they should make it clear to parents that this donation is voluntary and cannot be made a compulsory charge. When referring to this general payment in the school prospectus and notices to parents, boards should not use the word "fees" or "levy" or any other term which implies that payment of the sum is compulsory. In particular, boards cannot demand payment of the donation to confirm enrolment at the school. Parents would find it helpful to be informed that the school donation (receipted as such) qualifies for income tax rebate.
12. Because school donations are voluntary contributions, a board does not have to pay GST on the money it collects. Therefore GST must not be included when the board specifies the amount of the annual donation.
13. School donations become part of board funds once given to the school and must be accounted for by the board in accordance with the board's legal responsibilities under the Public Finance Act.
14. When specifying and collecting the school donation, boards may find it useful to take the following steps:
1. Specify the amount of the school donation in the school prospectus or in an information letter to parents.
2. State that the school donation is voluntary.
3. Describe the uses to which the school donation will be put.
4. State how and to whom payment is to be made.
5. State that a receipt will be provided.
6. If parents are having difficulty making payment, invite them to discuss the matter with the principal. At no time should the student be embarrassed over this issue.

Attendance dues (state-integrated schools only)

See also Circular 1992/36

15. Under the Private Schools Conditional Integration Act 1975, proprietors of integrated schools may charge attendance dues provided that this is specified in the school's integration agreement and the rates and conditions have been approved by the Minister of Education. Revenue from attendance dues can be used only for the improvement of school buildings and facilities, as required by the school's integration agreement or for meeting debts and other charges associated with the school land and buildings.
16. Attendance dues must be accounted for separately, since they are the income of the proprietor, not the board of trustees. In particular there must be no suggestion that attendance dues and the school donation are one and the same thing. All parents should be given clear information showing which payments are enforceable and which are voluntary.

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Other payments

17. Boards should develop policies covering requests for and collection of money and should ensure that teachers are aware of these policies. This will help to ensure that clear information is provided to parents at the time of enrolment.
18. In subjects with a practical component such as clothing and workshop technology, a board may charge for materials where the end product belongs to the student and may, if paid for, be taken home. At the beginning of a year, parents should be made aware that charges for materials are a feature of courses in practical subjects.
19. In cases where primary school students attend another school or centre to receive elements of the Technology curriculum care must be taken to ensure that parents understand the situation. The client school will be required to pay a fee to the provider to cover wear and tear on equipment, but parents should not be asked to cover this, because boards are funded for this through their operations grant. However, parents can legitimately be asked to pay for the materials necessary to produce items, which are taken home.
20. To a greater or lesser degree, teachers in all subject areas use various materials to assist them to deliver the curriculum. Some schools seek to recover the cost of these materials by charging parents for them. Such charges are very difficult to justify. It has already been stated (see paragraph 5) that the right to free education implies that there should be no charge for materials used in the delivery of the curriculum. Only where there is a very clear take-home component would a board be on firm ground in levying a charge for materials.
21. The changing nature of the senior secondary school means that it is becoming increasingly commonplace for secondary students to be involved in tertiary level courses. In cases where schools purchase tertiary level courses that they then offer as part of the school programme for senior students, parents and students should not be charged for these courses. On the other hand, in cases where the school merely facilitates enrolment in a tertiary course for a student, meaning that the student is effectively enrolled only part time at the school, then the student will be subject to whatever fees are associated with the tertiary course. Boards need to ensure that a very clear distinction is made between the two types of tertiary level provision and that students understand the basis on which they are being enrolled in tertiary courses.
22. Teachers sometimes organise activities away from school as part of the curriculum. Examples of these are fieldwork in geography and biology and outdoor education programmes. It is reasonable to expect parents to pay for the travel costs which are inevitably connected with such activities, provided that staff have made every effort to minimise costs by ensuring that the activities are held as close to the school as possible. In cases where parents are unwilling or unable to pay for a trip, teachers should try to provide an alternative which would give the student an insight into the curriculum experience covered by the trip. To avoid misunderstanding which may lead to later problems with payment, boards should ensure that parents are made aware of the situation at the beginning of the year. In particular, parents should be informed of situations where field work is an integral part of the course requirement in a subject at senior secondary school level. Students should not be excluded from such trips because of their parents' inability or unwillingness to pay.
23. Parents are sometimes asked to pay for their children to attend in-school activities such as performances by visiting drama groups. It should be made clear that attendance at such activities is voluntary; although parents can naturally be required to pay if their children attend.

Board action in cases of non-payment

24. Some boards have a policy of attempting to withhold items such as reports and leaving certificates to encourage parents to pay the school donation or to resolve unpaid debts for services provided by the school. In this matter, boards are reminded that they are required by the National Education Guidelines to report on student progress.
25. In this context boards are also reminded that they are subject to the Official Information Act 1982 and the Privacy Act 1993. Under the former, parents can request information about their children, including information on progress and results of tests. Under the latter, students can request personal information held by the school. In responding to such requests, boards should be aware that documents must be released unless withholding them can be justified in terms of the provisions of the relevant Act. Non-payment of the school donation would not be regarded as sufficient reason.
26. In attempting to collect unpaid school donations or money owed to the school for any reason, a board should remember the principles of natural justice. No student should be publicly harassed or denied information or privileges available to other students.
27. It is perfectly acceptable, of course, for a board to remind parents (particularly at the end of a year) of amounts of money that remain unpaid. In itemising such amounts, however, boards should take care to differentiate between the school donation and actual debts relating to such things as the provision of stationery, the hire of equipment, the non-payment of attendance dues and other charges incurred with the prior agreement of the parent.

Consultation

28. In its draft form the circular was provided for comment to representatives of school sector groups. Every effort was made to reflect their suggestions in the text of the final version.

Further information

29. If boards or staff have any questions about the information in this circular, they should contact their local Ministry of Education office.

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Appendix 1

Specific questions and answers about various aspects of payments by parents of students in state schools

Issues relating to enrolment

1. Can a board legally demand a fee from parents for interviews when they seek to enrol their children at school?
   No.
   
   While considerable time may well be involved, interviewing parents of prospective students is part of the normal activity of school staff.
2. Can a board legally seek a bond from parents at the time of enrolment?
   
   Yes, but it cannot be made a condition of enrolment.
   
   A board may decide to invite parents to pay a sum at the time of enrolment to cover such things as breakages or losses for which the student is responsible during his or her time at school, with any residue being refunded at the time of the student's departure from the school. But such an amount must not be presented as a compulsory charge nor must the board suggest that payment of the amount is necessary to confirm enrolment.

Issues relating to payment

3. Can a board legally ask for payment in advance for various activities which it knows are likely to occur during the course of the year?
   
   Yes, but a board cannot insist on payment in advance.
   
   Some boards adopt a policy of seeking a "once only" payment from parents at the start of the year to avoid the inconvenience of seeking continued sums of money from parents throughout the year. Such a payment may cover items as varied as class trips, the cost of materials in practical subjects such as workshop technology, swimming lessons, visiting drama groups etc. Some parents might prefer such a method, particularly if all the activities and their costs are itemised and provided their child will be involved in all the activities. But if the items and costs are unspecified, parents may wonder whether they will get their money's worth. Furthermore they may wish their child to be involved in some of the activities but not all. There is also the possibility that a student might miss out on an activity through sickness and then there could be arguments for a partial refund. If a parent prefers the "pay as you go" method of payment, a board cannot insist on payment in advance, in attempting to improve administrative efficiency. In particular, boards cannot demand payment in advance to confirm enrolment at the school.
4. When specifying the amount of the school donation, can a board legally impose a penalty for late payment or offer a rebate for early payment?
   
   A rebate, yes. A penalty, no.
   
   A board certainly cannot impose a penalty for late payment, because the amount in question is merely a donation, rather than an enforceable charge. Parents cannot therefore be compelled to pay it at all, let alone be required to pay it by a certain date. There is nothing wrong with a board offering a rebate for early payment, so long as it is clearly inviting a donation rather than demanding a fee.
5. Can a board legally invoice parents for sums owed to the school?
   
   Yes, but the invoice should not show the school donation as a compulsory payment.
   
   It is perfectly acceptable for a board to invoice parents for unpaid debts incurred for such things as lost or damaged library books, concerts attended but not paid for, stationery provided by the school (in agreement with the parents) but not paid for. But the school donation should not be included on the invoice - or if it is, it should be very clearly marked as a voluntary donation. The problem with an invoice is that it implies that the listed amounts are compulsory, and this is particularly so if the words "fee" or "levy" are used instead of donation. To invoice parents for "school fees" at the start of the year is particularly misleading.

Issues relating to integrated schools

6. Can an integrated school legally charge a proprietors' levy?
   
   Yes, but the levy cannot be made compulsory.
   
   Under the Private Schools Conditional Integration Act 1975, quite apart from being able to charge attendance dues, the proprietors may fundraise. This means that they may set a levy if they wish. But the parents cannot be compelled to pay the levy, any more that they can be compelled to become involved in any other fundraising activity. It would be better not to use the term "levy" since it implies compulsion, and neither the proprietors nor the board of trustees should imply that the attendance dues and the proprietors' "levy" are one and the same thing. One is enforceable whereas the other is voluntary.

Issues relating to curriculum delivery

7. Can a board legally charge for programmes in English for Speakers of Other Languages?
   
   No.
   
   When these programmes are provided within school time a board may not charge parents for them, because the school will be receiving resourcing to assist it to deliver such programmes. Boards may, however, charge for programmes which it provides as a service outside the conventional curriculum, though parents cannot be required to enrol their children in such programmes as a condition of their enrolment at the school.
8. Can a board legally charge parents for the delivery of special education programmes?
   
   No.
   
   Students with a high or very high ongoing need for special education are provided for through the Ongoing Resourcing Scheme. Funding is also available through Specialist Education Services for identified students with speech-language difficulties and for students with severe behaviour difficulties. The school is resourced through the Special Education Grant to assist students with moderate behaviour and learning needs.
9. Can a board legally charge an amount to cover photocopying costs in some subject areas?
   
   No, except in exceptional cases.
   
   Paragraph 18 of the circular has dealt in general terms with charges aimed at recovering costs for materials used in delivering the curriculum in certain subjects. Photocopying charges are a prime example of such a practice. It is very difficult to justify photocopied sheets of paper as constituting a "take home component" in the same way as the wood involved in the construction of a woodwork project. Although there may be exceptional cases, such as when students produce and photocopy their own magazine, photocopying should be seen as part of the normal business of curriculum delivery and should not be charged for.
10. Can a board legally levy a charge in relation to STAR courses?
    
    No, except for "take home" materials.
    
    STAR courses should be treated no differently from any other aspect of the curriculum. The Ministry has funded the board to deliver these courses and so parents should not be charged tuition costs. The notion of the "take home component" remains the test as to whether charges can be made for materials.
11. Can a board legally charge fees for attendance at school camps?
    
    Not if attendance at the camp is a compulsory part of the school's total curriculum or part of the content of a particular course at the school.
    
    Many boards have adopted a policy of including an outdoor education camp as part of the curriculum for students at the school, and outdoor education experiences may naturally form part of certain subjects at secondary schools in particular. The right to free education, guaranteed by Section 3 of the Education Act 1989 means that there should be no charges associated with the delivery of the curriculum. Therefore parents should not be charged for outdoor education camps which their children are required to attend. It is reasonable, however, for parents to be asked to contribute towards the cost of food and towards the costs which are involved in travel to and from the camp. In cases where parents are unwilling or unable to pay for a camp, teachers should try to provide work which will be an appropriate alternative to the camp. In cases where attendance at an outdoor education camp or recreational activity is voluntary, parents should expect to have to meet the costs involved if they agree to their children's participation.
12. Can a board legally levy a charge relating to tuition from Itinerant Teachers of Music?
    
    No.
    
    Itinerant Teachers of Music are resourced by the Ministry, and students who are taught by them should not be charged tuition fees (though they may be charged for the hire of musical instruments owned by the school and used by students outside the basic delivery of the music curriculum).
13. Can a board legally levy a charge on parents for the use of computer facilities at the school?
    
    No.
    
    Setting up a computer suite is costly and some boards have sought to involve parents in the purchase of the necessary hardware or in helping to meet the cost involved in leasing arrangements. It has already been stated that there should be no charge on parents for the cost of materials involved in the delivery of the curriculum. It follows therefore that it is not possible for a board to levy a compulsory charge on all parents for the implementation of an information technology plan in the school. The most that a board could do would be to ask for a donation in the same way as it does for the general school donation. Once the technology has been installed, students cannot be barred from using the computers if their parents have not contributed to the purchase and/or maintenance of the computers, nor can enrolment in a computer studies course be made conditional on parental contributions.
14. Can a board legally charge parents for the delivery of a Reading Recovery programme in the school?
    
    No.
    
    Reading Recovery is just like any other curriculum programme; there should be no charge to cover the cost of tuition. Reading Recovery is resourced either directly through a Ministry allocation or indirectly through a number of resources over which the board can make priority decisions. Such resources are the 1:23 staffing entitlement which applies during the first three years of teaching, supplementary funding such as TFEA and SEG, and operational funding. It was never intended that the small directly resourced element would meet the Reading Recovery needs of all students. It was always envisaged that schools would contribute from other resources provided by Government.
15. Can a board legally charge parents for costs involved in project work?
    
    Yes, provided that the finished product is taken home.
    
    This matter has already been referred to in paragraph 16 of the circular, where projects in clothing and workshop technology have been used as examples. Other subjects also offer exciting opportunities for project work, which can involve considerable costs eg the production of a T-shirt in a design class. If the student takes ownership of the finished project then naturally the parent could be expected to bear the costs involved in bringing the project to fruition. But boards cannot insist that students take the finished project home just so that the parents can be charged. Teachers should be wary of setting projects with a high cost involvement, unless some low cost alternative is also available.
16. Can a board legally require the purchase of a workbook in some subjects?
    
    No.
    
    In some subjects, the teaching programme may be based very closely on a particular course (available commercially or produced by the school) and students use the workbook which accompanies the course. This is a vexed question. Workbooks lie somewhere between textbooks, which are provided free to students, and stationery, which students are expected to provide for themselves. It is not absolutely necessary to write answers in the workbook itself; they could be written in an exercise book. The workbook could then be used by students in subsequent years. On the other hand, workbooks can have ongoing usefulness to students. Because of the cost factor that is normally involved, it is not appropriate to demand that students purchase workbooks. Boards might consider the possibility of explaining the usefulness of workbooks and making purchase optional.

Issues relating to items provided through the school donation

17. When parents do not pay the school donation can a board legally refuse to provide to the student any items which are directly funded by the school donation?
    
    Not if it results in unfair discrimination against some students. And there may be serious financial implications in such a practice.
    
    Some boards have a policy of funding certain items or activities entirely from the school donation, eg the school magazine, student identity cards, subsidised travel for sports teams etc. In cases where parents decline to pay the school donation, a board may wish to withhold from their children items such as those referred to above, which are funded entirely from the school donation. While boards have an undeniable right to do this, such an action may have serious implications because it implies that the school donation is not a voluntary donation at all but, at least in part, is a payment for goods and services. This may mean that all school parents would be unable to claim an income tax rebate on their "donation" and the board would have to pay GST on all the money it collected by way of school "donations". Furthermore, withholding an item can have other consequences eg if the student ID card is used as a swipe card to enable students to borrow library books, to withhold the card from students whose parents have not paid the school donation would have the effect of denying the student a privilege that is available to other students. (It is also worth remembering that the library building has been provided by Government and most of the books will have been purchased with operational funding.)

Issues relating to non-payment

18. Can a board legally use a debt collecting agency to collect money owed to the school by parents?
    
    Yes, but not to collect an unpaid school donation.
    
    Each board will decide for itself whether it is appropriate to employ a debt collection agency to collect money owed to the school by parents. However, no board should employ a debt collection agency in an attempt to force parents to pay the school donation. This is not a debt, but simply a voluntary donation which parents cannot be compelled to pay.

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Appendix 2

Relevant legislation

Right to a free primary and secondary education

Section 3, Education Act 1989

Except as provided in this Act or the Private Schools Conditional Integration Act 1975, every person who is not a foreign student is entitled to free enrolment and free education at any state school during the period beginning on the person's 5th birthday and ending on the 1st day of January after the person's 19th birthday.

Need to account for money received

Section 90, Education Act 1989

Every board is a Crown entity for the purposes of the Public Finance Act 1989.

Section 24(2), Public Finance Act 1989

All money received by any Crown entity shall, as soon as practicable after it has been received, be paid into the accounts of the Crown entity.

Section 41(2), Public Finance Act 1989

The annual financial statements shall be prepared in accordance with generally accepted accounting practice and shall include...an operating statement reflecting the revenue and expenses of the Crown entity for the financial year.

Fundraising by Proprietors of State integrated schools

Section 37 of the Private Schools Conditional Integration Act 1975

In addition to the authority vested in them by section 36 of this Act the Proprietors of any integrated school may conduct fund raising activities within the school, inform the parents of the financial obligations of the Proprietors in the prospectus and in other ways, and request the parents of pupils attending the school to regular financial contributions to the Proprietors for their benefit in meeting any debts, mortgage, lien, or other charge associated with the land and buildings that constitute the school premises or are associated with the school.

Financial contributions other than attendance dues shall be made on a voluntary basis and no pupil shall be refused enrolment because of the unwillingness of the parents to make such contributions.

Attendance dues at state-integrated schools

Section 36, Private Schools Conditional Integration Act 1975

1. (1) If the integration agreement in respect of the school so provides, the Proprietors of an integrated school may enter into an agreement with the parents or other persons accepting responsibility for the education of a child providing that, as a condition of the enrolment and attendance of that child at that school, the parents or other person shall pay attendance dues...
2. Revenue received by the Proprietors from attendance dues shall be used solely for the purpose of paying in respect of the school or group of schools in respect of which it is received for such improvements to the school buildings and associated facilities as may be required by any integration agreement or integration agreements pursuant to section 40(2) of this Act, or for such capital works as may be required by the Minister pursuant to section 40(2)(d) of this Act, or for meeting debts, mortgages, liens, or other charges associated with the land and the buildings that constitute the premises of the school or schools...
5. Should any Proprietor use any revenue from attendance dues for any purpose other than one permitted by this section, the Minister may, notwithstanding anything in the integration agreement, by notice in the Gazette, withdraw the right to charge attendance dues, and the controlling authority shall thereafter, while the withdrawal continues, be required to permit the attendance of children without the payment of attendance dues.

Providing information

National Education Guidelines (Item 1, National Administration Guidelines)

Each Board, through the principal and staff, will be required to...report on student progress.

Section 5, Official Information Act 1982

The question whether any official information is to be made available, where that question arises under this Act, shall be determined, except where this Act otherwise expressly requires, in accordance with the purposes of this Act and the principle that the information shall be made available unless there is good reason for withholding it.

Section 6, Principle 6(1), Privacy Act 1993

Where an agency holds personal information in such a way that it can readily be retrieved, the individual concerned shall be entitled...to have access to that information.