Circular 2012/07 - Private school subsidy funding 2013

Education Circular 
Funding circular providing schools with information about private school subsidy funding for 2013

Date September 2012 | Circular 2012/07 | Category Resourcing

This circular is about private school subsidy funding for 2013.

This circular replaces private school subsidy funding 2012

The action needed is please note the information.

It is intended for proprietors and principals of private schools.

For more information:

Enquiries about the private school subsidy should be directed to the Ministry of Education's contact centre:

Contact Centre
Resourcing Division
Ministry of Education
PO Box 1666
Wellington
Phone 04-463 8383
Fax 04-463 8374
Email resourcing@minedu.govt.nz

Introduction

This circular provides schools with information about private school subsidy funding for 2013.

School financial year and payment schedule

The 2013 funding year commences on 1 January 2013 and concludes on 31 December 2013. Quarterly instalments will be paid in advance, at the beginning of each funding period, as shown below.

Date paid (2013) Period covered Number of months funded Percentage paid of remaining grant
3 Jan January - March 3 months 25.0%
1 Apr April - June 3 months 33.3%
1 Jul July - September 3 months 50.0%
1 Oct October - December 3 months 100.0%

This payment method ensures that when an entitlement is adjusted, either up or down, the board of trustees will receive 100% of the school’s entitlement in the current year.

Remittance advices

The Ministry issues a remittance advice if a payment is made outside of the quarterly instalments.

Change of bank account number

If a school’s bank account number changes, a Change of Bank Account Form must be completed and sent directly to:
The Finance Division
PO Box 1666
Wellington.

Forms are available at www.minedu.govt.nz/resourcingforms.

GST queries

Operational funding entitlement and instalment notices display the entitlement for each component as a GST exclusive amount. This change was implemented in 2012 to support schools in their financial planning.

Boards are required to account for GST on the full amount received. If you have questions about GST, or other tax obligations, please consult Education Centres: A Tax Guide for Organisations that Provide Education (IR253), available from the Inland Revenue Department’s website at www.ird.govt.nz.

Per student subsidy rate calculation

Calculation of rate

Subsidy funding is provided at a set rate per student.

The per-student rate is set by taking the fixed Government appropriation – currently set at approximately $41.5 million (GST excl) – and dividing it by the likely demand.

The likely demand is the mid-point between the actual roll and schools’ predictions of the roll for the following year. For 2013, this is the 2012 actual roll and schools’ predictions of the 2013 roll.

Per-student subsidy rates for 2013

The per-student rates are set at four levels to recognise the cost of curriculum delivery at each year level.

This table shows the per-student subsidy rates for the 2013 year

Year level 2013 funding rate GST exclusive 2013 funding rate
GST inclusive
Years 1-6 1,012.99 1,164.94
Years 7-8 1,109.28 1,275.67
Years 9-10 1,419.64 1,632.59
Years 11-15 2,156.08 2,479.49

Rolls used for funding provision

Funding roll

Boards are funded on what is considered to be the peak roll.

  • July roll - primary schools
  • March roll - intermediate, area, composite and secondary schools

Predicted funding roll

Until the appropriate roll is available, boards receive a provisional funding allocation using their predicted roll. The predicted roll is a school’s estimate of student numbers. This roll is submitted with the July roll return in the previous year.

Funding is reallocated once the peak roll is available

New entrant adjustment

A new entrant adjustment is added to the actual roll for primary and composite schools. This adjustment is used to estimate the number of new entrants likely to enrol between the date of the roll being used and 10 October. A factor is applied to the year 1 roll with the result rounded up to the nearest whole number.

  • Where a March roll is used a new entrant factor of eleven-twelfths is applied rounded up to the nearest whole number.
  • Where a July roll is used a new entrant factor of five-eighteenths is applied rounded up to the nearest whole number.

Rolls used to calculate funding payment

School type January instalment April instalment July instalment October instalment
Primary Predicted roll submitted in July roll return Predicted roll submitted in July roll return Actual roll submitted in March 1 roll return Actual roll submitted in July 1 roll return
Intermediate, area/composite, secondary Predicted roll submitted in July roll return Predicted roll submitted in July roll return Actual roll submitted in March 1 roll return Actual roll submitted in March 1 roll return

Other grants and supplementary resources

Aspire Scholarships

Aspire Scholarships are provided annually to allow children from low income families to attend private schools. For more information, see the Aspire Scholarships section.

NCEA

The NCEA grant is provided at a per-student rate for Year 11 - 13+ students.

Year level 2013 funding rate
GST exclusive
2013 funding rate
GST inclusive
Years 11-13+ 5.47 6.29

Ongoing Resourcing Scheme (ORS) 

Boards receive funding for students verified as having high, or very high ongoing special education needs through the Ongoing Resourcing Scheme (ORS). This is equivalent to the ORS staffing entitlement for state and state integrated schools.

Contact your local Special Education Office for further information.

Kiwisport

The Kiwisport component is provided at a per-student rate to assist with:

  • increasing the numbers of school-age children participating in organised sport – during school, after school and by strengthening links with sports clubs
  • increasing the availability and accessibility of sport communities for all school-aged children.
Year level 2013 funding rate
GST exclusive
2013 funding rate
GST inclusive
Years 1-8 12.57 14.46
Years 9-13+ 22.70 26.11

Māori Language Programme (MLP)

Boards receive funding for students enrolled in Māori Language Programmes (MLP) that meet all the criteria for one of four immersion levels.

Only students enrolled in levels 1 - 4 (including 4b) generate MLP funding.

Immersion level Māori immersion – curriculum taught in Māori
1 100% of time ie, complete immersion (25 hours per week); or 81–100% of total time, ie, for more than 20 and up to 25 hours for primary schools and 22.5 hours for secondary and composite schools per week.
2 51–80% of total time, ie, for more than 12.5 and up to 20 hours per week
3 31–50% of total time, ie, for more than 7.5 and up to 12.5 hours per week.
4a 12%–30% of total time, for more than 3 and up to 7.5 hours per week (ie, more than 70% of instruction is in English).
Immersion level Te Reo Māori - Māori language taught as a separate subject
4b At least three hours per week
5 Less than three hours per week.
Immersion level Taha Māori – cultural programme
6 Māori songs, greetings and simple words

Boards are initially funded for the number of students predicted by the school in each MLP level. Funding is recalculated once actual numbers of students taught at each level have become available.

MLP funding rate

Immersion level 2013 funding rate
GST exclusive
2013 funding rate
GST inclusive
Level 1 917.53 1055.16
Level 2 447.78 514.95
Level 3 241.35 277.55
Level 4 58.59 67.38

Export Education Levy

Private schools that enrol international fee-paying students are required to pay an Export Education Levy. This levy goes to an export education fund used by the industry for the promotion, capability development, research and quality assurance of export education.

The Export Education Levy is made up of two components:

  • an annual flat fee component of $185 (excl GST)
  • a per-student component of 0.0045 x tuition fee

Levy collection process

The ENROL database is used to calculate the Export Education Levy. All international fee-paying students who pay a tuition fee to the school must be recorded on ENROL regardless of the number of tuition weeks they are enrolled for. The only exception is for students on visitors visa who are in New Zealand for 2 weeks or less and do not pay the school any fee.

Because ENROL is being used to calculate the Export Education Levy, schools are required to enter a “Weekly Tuition Fee (excl GST)” for each international student. This is because the Export Education Levy is based on tuition fees.

The Export Education Levy is collected on a trimester basis. This means that schools will have the deduction of the levy spread over 3 trimesters.

Nominal start and end dates to the school year are used in the calculation of the levy so that the correct levy amount is calculated over the year.

Private schools will be emailed shortly after the end of each Trimester an RS16P spreadsheet which will list all international fee-paying students you had enrolled in the Trimester. This allows the school to check the accuracy of the list of students. Two weeks later schools will be emailed the final RS16 spreadsheet which will be used to determine the final amount of levy to be deducted

Trimester 1

For 2013, Trimester 1 will use the nominal start date of 4 February and go through to 30 April. The levy amount due will be deducted from the July subsidy payment to private schools.

Trimester 2

Trimester 2 covers the period from 1 May to 31 July. The levy amount due will be deducted from the October subsidy payment to private schools.

Trimester 3

Trimester 3 covers the period from 1 August to the nominal end date of the school year. The nominal end dates for 2013 are 20th December for primary/intermediate schools and 13th December for secondary/composite/special schools. The levy amount due for Trimester 3 will be deducted from the subsidy payment to private schools in the January of the following year.

Further information

Please refer any queries to:
Administrator International Levies,
Phone 04 463 8073
Email foreign.levy@minedu.govt.nz

Issued by

John Clark, Group Manager Resourcing Division, Te Wāhanga Whakarato Rawa
Ministry of Education, National Office, 45 – 47 Pipitea Street, Thorndon, P O Box 1666, Wellington, New Zealand, Phone 04-463 8000, Fax 04-463 8001, Email resourcing@minedu.govt.nz