Circular 2009/10 - Private School Subsidy Funding 2010

Education Circular 
This circular is about Private School Subsidy Funding for 2010.

Date: 18 September 2009
Circular Number: 2009/10
Category: Resourcing

Resourcing for 2010

This circular is about: Private School Subsidy Funding for 2010.

This circular replaces: Circular 2008/12

The action required is: Please note the information.

It is intended for: Proprietors 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
Wellington
Phone 04-463 8383
Fax 04-463 8374
Email resourcing@minedu.govt.nz [no spam]

General information

Introduction

This circular provides private schools with information about funding for 2010.

School financial year and payment schedule

The 2010 funding year commences on 1 January 2010 and concludes on 31 December 2010. Quarterly funding instalments will be paid in advance, at the beginning of each funding period, as shown below.

Date Paid
(2010)
Period covered Number of months funded Percentage paid of remaining grant
5 January January - March 3 months 25.0%
1 April April - June 3 months 33.3%
1 July July - September 3 months 50.0%
1 October October - December 3 months 100.0%

This payment 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 an operational funding 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
Ministry of Education
PO Box 1666
Wellington.

Forms are available at www.minedu.govt.nz/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 (IR253), available from the Inland Revenue Department’s website.

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 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 2010

The table below shows the per-student subsidy rates for private schools for the 2010 year. These rates reflect the Government’s decision to increase the resourcing to private schools.

 

Year level 2010 funding rate
Years 1-6 $1,133.32
Years 7-8 $1,241.04
Years 9-10 $1,588.27
Years 11-15 $2,412.19

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Other grants and supplementary resources

NCEA grant

NCEA per-pupil funding rate will increase by 1.95% for 2010. This equates to $5.92 for each Year 11 - 13+ student.

ORRS

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

Kiwisport funding

Schools with year 1-8 students will receive a half year entitlement for 2009 in their October instalment of operational funding. Schools with years 9-13+ students will receive this funding from 1 January 2010. This funding is available to all private schools. The Kiwisport component will be displayed on your Operation Grants Entitlement notice.

Year level 2010 funding rate
Years 1-8 $13.60
Years 9-13 $24.56

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.

Process for the collection of the Levy

The ENROL database is 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 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.

Trimester 1

Trimester 1 will total the tuition fees expended (weekly tuition fee x number of tuition weeks in Trimester) in the period 2 February 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

Trimester 2 will total 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

Trimester 3 will total the tuition fees expended in the period 1 August to the end of December. The per-student component of the Export Education Levy will then 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 [no spam]

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Issued by

John Clark
Group Manager
Resourcing Division
Te Wāhanga Whakarato Rawa


National Office
45 – 47 Pipitea Street, Thorndon
P O Box 1666, Wellington, New Zealand
Phone 04-463 8383
Fax 04-463 8374
Email resourcing@minedu.govt.nz [no spam]



Content last updated: 5 October 2009