Employment of teachers by boards from Operational Funding

Rules for employing teachers from Operational Funding

The Minister of Education has agreed, under section 91F(b) of the Education Act 1989, that boards may employ and fund the payment of teachers, either permanently or temporarily, from their operational funding under the following conditions:

• The board is financially solvent in the short term, and will remain so in the long term
• The board is satisfied it has enough financial resources to meet the ongoing fortnightly salary costs, and other associated costs of any board-funded staff.
• In employing board-funded staff, the board accepts responsibility for the payment of any associated costs, including ACC levies, Recruitment, Retention and Responsibility (3R) payments, relief teacher costs, and collective agreement entitlements (see checklist on page 40 and 41).
• If the board is required by the Ministry of Education to reduce entitlement staffing, the Crown will meet surplus staffing costs within the surplus staffing processes specified in respective collective agreements. However, the board is responsible for all other surplus staffing costs. (see Conditions for Ministry funding of surplus staffing costs).
• The employment of board-funded staff cannot be used as a basis for seeking the provision of additional accommodation, nor for determining any grading of the school or subsequent enhancement of staffing or management provisions.
• The board is satisfied that there are genuine reasons related to the operational requirements of the school for the appointment of any temporary staff on fixed-term employment agreements
• The board has fully considered the merits/consequences of making any permanent appointments from operational funding.
• The board has fully considered the consequences of moving a teacher from Bulk Grant (BG or operational funding) to Teachers’ Salaries (TS) or TS to BG during the term of appointment, including effects on teacher time allowances.
• The board must agree to the Ministry of Education holding a current direct debit authority on the board’s bank account. This form is available from:

Finance Division
Ministry of Education
PO Box 1666
Wellington
Phone 04-463 8119
Fax 04-463 8137

Noting decisions for audit

All decisions to use operational funding for the employment of teachers must be noted in board minutes and kept for audit purposes.

Salary coding

All salary payments and associated costs for board-funded teachers must be coded BG on returns to your pay centres (see www.schoolpayroll.govt.nz for further information on returns).

Checklist of costs to consider

The employment of additional staff from operational funding may result in additional associated costs. Boards should use the following checklist to establish what other costs they may incur. The payments could be effective immediately, or come into effect in the longer term.

The costs used are indicative only. Items listed may not be applicable to every school, nor to every situation.