Circular 2008/12

Date: 1 September 2008
Circular Number: 2008/12
Category: Resourcing


 

Private School Subsidy Funding 2009

This circular is about: Private School Subsidy Funding for 2009.

This circular replaces: Private School Subsidy Funding 2008

The action required is: Please note the information.

It is intended for: Proprieters and principals of private schools.

For further information
:
Enquiries about the private school subsidy should be directed to:
Contact Centre
Resourcing Division
Ministry of Education
PO Box 1666
Phone 04 463 8383
Fax 04 463 8374
Email resourcing@minedu.govt.nz

Introduction

This circular provides private schools with information about funding for 2009.

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General Information

School Financial Year and Payment Schedule

The 2009 funding year commences on 1 January 2009 and concludes on 31 December 2009. Quarterly funding instalments will be paid in advance, at the beginning of each funding period, as shown below.

Date Paid (2008)

Period Covered

Number of Months Funded

Percentage Paid of Remaining Grant

1 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 each time an operational funding payment is made in between 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/goto/resourcingforms.

GST

All operational funding provided by the ministry is GST inclusive. 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 (IR 253), available from the Inland Revenue Department's website at www.ird.govt.nz.


Funding Rolls

Rolls used to calculate funding entitlement.

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 as submitted in March 1 roll return

Actual roll as 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 as submitted in March 1 roll return

Actual roll as submitted in March 1 roll return

Private Schools Per-Student Subsidy Rates for 2009

The table below shows the per-student subsidy rates for private schools for the 2009 year. These rates reflect government decisions to hold the total resourcing for private schools within an annual capped budget.

Year Level

2009 Funding Rate

Years 1-6

$ 910.50

Years 7-8

$ 997.04

Years 9-10

$ 1,276.00

Years 11-15

$ 1,937.93

Other Grants and Supplementary Resources

NCEA Grant

NCEA per-pupil funding rate will increase by 3.1% for 2009. This equates to $5.81 for each Year 11 - 13+ student.

Ongoing and Reviewable Resourcing Scheme (ORRS)

For students in the Ongoing and Reviewable Resourcing Scheme, funding equivalent to the ORRS staffing entitlement will be paid.

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), and
  • a per-student component of 0.0045 x tuition fee.

ENROL

From 2009 the ENROL database will be used to calculate the Export Education Levy. This means that all international fee-paying students must be recorded on ENROL regardless of the number of tuition weeks they are enrolled for. The only exception is for “Group” students who are in New Zealand on a Group Visa for culture or sporting purposes and receive no curriculum teaching.

Because ENROL is being used to calculate the Export Education Levy, schools will be 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.

Process for the collection of the Levy

From 2009 the levy will be collected on a Trimester basis. This means that schools will have the deduction of the levy spread over three Trimesters.

Trimester 1 will sum the tuition fees expended (weekly tuition fee x number of tuition weeks in Trimester) in the period 29 January to 30 April. Both the flat fee component and also the per-student component of the Export Education Levy will then be deducted from the July subsidy payment to private schools.

Trimester 2 will sum the tuition fees expended in the period 1 May to 30 July. The per-student component of the Export Education Levy will then be deducted from the October subsidy payment to private schools.

Trimester 3 will sum the tuition fees expended in the period 1 August to the end of the school year. The per-student component of the Export Education Levy will then be deducted from the subsidy payment to private schools in either January or April of the following year.

Issued by:

Paul Burke
Senior Manager
Resourcing Division

Te Wāhanga Whakarato Rawa

National Office
45 – 47 Pipitea Street, Thorndon
P O Box 1666, Wellington, New Zealand
Phone: 0-4-463 8383
Fax: 0-4-463 8374



Content last updated: 16 September 2008