Part 2: Prospective Financial Statements
Statement of responsibility
The Minister of Education is the responsible Minister for the Ministry of Education (the ministry). The information contained in this Statement of Intent for the ministry has been prepared in accordance with Section 38 of the Public Finance Act 1989.
The Secretary for Education acknowledges, in signing this Statement of Responsibility that she is responsible for the information contained in this Statement of Intent.
The prospective performance for each output to be achieved by the ministry that is specified in the Statement of Intent is as agreed with the Minister of Education.
The financial and service performance for the ministry in the prospective financial statements is as agreed with the ministers responsible for Vote Education (Minister of Education and Minister for Tertiary Education), which is administered by the ministry.
Actual results achieved for the year ending 30 June 2008 may vary from the prospective financial information and in some cases the variations may be material.
The information contained in this Statement of Intent is consistent with existing appropriations, and with the appropriations set out in the Appropriation (2007/08 Estimates) Bill.
Signed:
Karen Sewell
Secretary for Education
Countersigned:
Tina Cornelius
Chief Financial Officer
Summary of prospective financial statements
For the year ending 30 June 2008, the ministry expects:
- to earn $1,568.3 million in revenue from the Crown and $10.0 million from both other purchasers of the services it will supply under the seven departmental outputs detailed in the Statements of Objectives in this Report, and from the government’s subsidy of the State Sector Retirement Savings Scheme. It expects to incur expenses of $1,578.3 million in providing these services
- to receive a capital injection of $213.1 million from the Crown, which together with the expected net cash flows of $380.1 million from operating activities, will fund almost all of the $580.4 million to be used to provide additional school property.
In addition, the ministry administers the following non-departmental appropriations:
- fourteen outputs totalling $768.5 million for educational services purchased from central education Crown entities and other non-departmental education providers
- thirteen appropriations totalling $86.3 million for allowances, bursaries, scholarships, and grants
- seventeen appropriations totalling $6,985.2 million for educational services supplied by schools, tertiary education providers and early childhood education (ECE) providers, and for other expenses
- fifteen capital appropriations totalling $106.2 million for other organisations.
The ministry is responsible for making payments for services supplied under non-departmental outputs and for other expenditures on behalf of the Minister of Education and Minister for Tertiary Education, for ensuring that these appropriations are not exceeded and for managing and monitoring contracts with non-departmental education providers on behalf of the ministers. Each of the providers is accountable to the ministers for their performance in supplying those services.
The ministry collects Crown revenue and receipts of $77.1 million.
Details of how the non-departmental appropriations will be spent appear in Parts B, C, D, and E of Vote Education in the Estimates of Appropriations 2007/08 (B.5).
Financial highlights
These prospective financial statements contain the following:
|
|
2007/08
Budget
$000
|
2006/07
Budget
$000
|
2006/07
Estimated Actual $000
|
|
Revenue: Crown
|
1,568,320
|
1,542,285
|
1,542,285
|
|
Revenue: Departments
|
2,902
|
4,464
|
4,464
|
|
Revenue: Other
|
7,125
|
7,625
|
7,625
|
|
Output Expenses
|
1,578,347
|
1,554,374
|
1,554,374
|
|
Net Surplus/(Deficit)
|
–
|
–
|
–
|
|
Taxpayers’ Funds
|
10,412,825
|
10,265,469
|
10,199,681
|
|
Net Cash Flow from Operating and Investing Activities
|
(200,275)
|
(145,182)
|
(92,734)
|
Commentary on financial highlights
Annual appropriations for the purchase of departmental outputs have increased by $24 million (GST exclusive) to $1,578.3 million.
In 2007/08 the ministry has changed its output structure to reflect the ministry’s leadership role in the sector and the delivery of services to its key stakeholders; students, teachers, providers and families and communities. The basic changes for the output structure are:
- Combining all expenditure associated with the ministry’s leadership in the schooling and ECE sectors into a single output class titled Strategic Leadership in the Sector. This output class includes cross-agency coordination, policy development, monitoring of the sector, research and support for the Education Minister.
- Combining all expenditure associated with the ministry’s direct interaction with communities into a single output class titled Support and Resources for the Community. This output class includes policy development and the provision of information and education programmes.
- Combining all expenditure associated with supporting the governance, management, operation and regulation of education providers in an output class titled Support and Resources for Education Providers. This output class includes policy development, regulation of providers, resourcing, provision of services and interventions with at-risk providers.
- Leaving property-related expenditure largely unchanged in an output class titled School Property Portfolio Management. This output class now contains the output expense from Provision of School Sector Property and Provision of Teacher and Caretaker Housing.
- Combining all expenditure associated with the ministry’s support for teaching into a single output class titled Support and Resources for Teachers. This includes policy development, teaching and assessment resources and professional development.
- Combining all expenditure associated with the ministry’s interventions to assist target student groups to participate in education into a single output class titled Interventions for Target Student Groups. This output class includes policy development, scholarships and grants, special education services, advice and support for at-risk students and advice and support for students from non-English speaking backgrounds.
- Combining all expenditure associated with the ministry’s leadership in the Tertiary System into a single output class titled Strategic Leadership in the Tertiary System. This output class includes cross-agency coordination, policy development, monitoring of the system, research, supporting international education, and supporting the Minister for Tertiary Education.
The output structure for both years is shown below:
Output expenses
|
2007/08
|
2006/07
|
|
Education
Interventions for Target Student Groups
School Property Portfolio Management
Strategic Leadership in the Sector
Support and Resources for Education Providers
Support and Resources for Teachers
Support and Resources for the Community
|
Administration of Education Regulations
Administration of Education Sector Resourcing
Ministerial Services
Ownership Advice on Public Education Sector Entities
Policy Advice
Provision of Information
Provision of School Sector Property
Provision of Teacher and Caretaker Housing
Purchasing of Services on Behalf of the Crown
Special Education Services
|
|
Tertiary Education
Strategic Leadership in the Tertiary System
|
Tertiary and International Policy and Ownership Advice
Tertiary Information Services
|
The major costs for the ministry relate to provision of school property and housing, which are reflected in output expense School Property Portfolio Management. These transactions account for approximately 72% of the ministry’s operating budget.
Specifically:
- the capital charge on these assets for 2007/08 has increased by $12.2 million. This is mainly owing to a combination of:
– further growth in the value of the property portfolio through ongoing investment in new classrooms and schools
– being partially offset by the impact of final transfers of core teacher housing to schools in 2006/07 and disposal of other surplus properties
- depreciation costs having increased by $6.3 million, largely owing to additional schools and classrooms required for roll growth, staffing improvement and modernisation projects, but partially offset by changes to teacher and caretaker housing as discussed above
- increased provision for the continuing compliance programme and to meet increases in volume and land rentals ($2.0 million).
Major increases in funding between 2006/07 and 2007/08, other than those related to school property, comprise:
- ongoing development of a schools payroll project
($2.3 million) under Support and Resources for Education Providers
- ongoing implementation of enrolment management systems, largely under Support and Resources for Education Providers ($1.9 million)
- the consequential impact of delays on systems developments on capital charge across a range of outputs ($1.2 million)
- increased resourcing for special education, mainly under output expense Interventions for Target Student Groups ($6.7 million), owing to a combination of:
– provision for cost increases for other providers
– price adjustments for Ongoing and Reviewable Resourcing Schemes (ORRS) and other funds
– provision for additional specialist support in the early childhood education sector
– funding for settlement of collective agreements
– delays to several projects resulting in costs moving from 2006/07 to 2007/08, including addressing disruptive behaviour
– provision for initial establishment of a universal newborn hearing screening programme.
- provision for increased representation in the Gulf region to maximise the benefits of international education (Strategic Leadership in the Tertiary System)
- costs related to improving the ministry’s infrastructure, including document management and web infrastructure and provision for shared information technology services for education agencies ($1.3 million across all outputs).
These have been partially offset by reductions in costs that reflect:
- reduced activity related to the adult literacy and life skills survey and foundation education projects ($2.8 million under output expenses Strategic Leadership in the Sector and Support and Resources for the Community)
- timing of work on student management systems ($0.7 million) under Support and Resources for Education Providers
- implementation of new funding and regulatory systems for the ECE sector ($1.1 million mainly under Support and Resources for Education Providers)
- implementation of improved network infrastructure for schools ($0.3 million) under School Property Portfolio Management
- phasing of the work to improve teaching capability, focused on the capability of in-service teacher educators and applying quality teaching practice ($1.6 million), under the output expense Support and Resources for Teachers.
There is no surplus or deficit forecast for 2007/08. Ministry expenditure is constrained by the level of output expense appropriations. Most of these services are purchased by the Crown, although some funds are received from third parties – mainly for teacher housing rental, special education services and fees for payroll deductions.
The ministry will also receive a capital injection of $213.1 million in 2007/08. This mainly provides for the delivery of new school accommodation, and the enhancement of existing accommodation, to support school-age population growth through:
- the purchase of 11 new school sites required for schools needed in the future and the extension of existing school sites to cater for roll growth
- the construction of ten new schools to open in 2008 and 2009 in response to demographic changes and roll growth in specific locations
- the continued implementation of five-year plan renewals and property guides for all school types
- the establishment of new kura kaupapa Māori and other special character schools, and extending current kura to wharekura
- delivery of 200 additional classrooms to meet increased school rolls
- announcement of a school property guide deficiency programme of $22 million and replacement building programme of $20 million
- disposal of surplus property with net proceeds of $28 million.
Total expenditure on the property works programme is expected to be approximately $568 million.
In addition, there is also provision for additional classrooms arising from the school staffing improvements for new entrants policy.
This capital injection also provides for the development of a new teacher payroll system, enrolment management systems, the ongoing development of an ECE funding system and a system for secure connection of education sector participants to multiple education databases.
The projected increase in taxpayers’ funds of $213.1 million over the estimated position at 30 June 2007 reflects that additional investment, particularly in school property.
Changes in operating and investing cash flows principally reflect a movement in the purchase of fixed assets between 2006/07 and 2007/08. The property programme is effectively financed from depreciation funding and increased capital investment for the year, as is investment in ministry chattels. In addition, ongoing investment in ministry infrastructure during 2007/08 is also partially funded from the balance sheet.
Prospective statement of financial performance
for the year ending 30 June 2008
|
|
2007/08
Budget
$000
|
2006/07
Budget
$000
|
2006/07
Estimated
Actual
$000
|
|
Revenue
|
|
|
|
|
Crown
|
1,568,320
|
1,542,285
|
1,542,285
|
|
Department1
|
2,902
|
4,464
|
4,464
|
|
Other2
|
7,125
|
7,625
|
7,625
|
|
Total Revenue
|
1,578,347
|
1,554,374
|
1,554,374
|
|
Output Expenses
|
|
|
|
|
Personnel
|
180,268
|
177,007
|
177,007
|
|
Audit Fees
|
367
|
446
|
446
|
|
Rentals and Leases
|
12,651
|
12,450
|
12,450
|
|
Operating Costs
|
204,870
|
209,014
|
206,566
|
|
School Property Management
|
25,893
|
24,293
|
24,293
|
|
Depreciation and Amortisation
|
380,098
|
371,279
|
373,727
|
|
Capital Charge3
|
774,200
|
759,885
|
759,885
|
|
Total Output Expenses
|
1,578,347
|
1,554,374
|
1,554,374
|
|
Net Surplus/(Deficit)
|
–
|
–
|
–
|
1 Departmental revenue primarily reflects the subsidy the ministry receives for the State Sector Retirement Savings Scheme. But 2006/07 also included funding for Atawhaingia Te Pā Harakeke and support for Samoa and Tokelau under the Official Development Assistance Programme.
2 The reduction in other revenue is mainly owing to lower teacher and caretaker housing rental as a consequence of divesting the portfolio to schools.
3 The increase in capital charge mainly relates to ongoing investment in school property assets.
Prospective balance sheet
as at 30 June 2008
|
|
Budget
as at
30 June 2008
$000
|
Estimated
Actual as at
30 June 2007
$000
|
Actual
Position as at
30 June 2006
$000
|
|
Current Assets
|
|
|
|
|
Cash and Cash Equivalents
|
32,249
|
19,380
|
29,788
|
|
Debtor Crown4
|
–
|
–
|
15,600
|
|
Prepayments
|
5,241
|
5,241
|
5,206
|
|
Receivables and Advances
|
8,611
|
8,611
|
10,734
|
|
Debtors for Property, Plant and Equipment
|
28,424
|
33,424
|
39,942
|
|
Non-current Assets Held for Sale
|
77,427
|
77,427
|
81,427
|
|
Total Current Assets
|
151,952
|
144,083
|
182,697
|
|
Non-current Assets
|
|
|
|
|
Property, Plant and Equipment
|
10,301,501
|
10,124,236
|
10,030,160
|
|
Intangible Assets
|
52,078
|
26,068
|
12,723
|
|
Total Non-current Assets
|
10,353,579
|
10,150,304
|
10,042,883
|
|
Total Assets
|
10,505,531
|
10,294,387
|
10,225,580
|
|
Current Liabilities
|
|
|
|
|
Payables and Accruals
|
78,925
|
80,925
|
94,574
|
|
Provision for Payment of Surplus
|
–
|
–
|
1,684
|
|
Employee Benefit Liabilities
|
9,129
|
9,129
|
8,999
|
|
Total Current Liabilities
|
88,054
|
90,054
|
105,257
|
|
Non-current Liabilities
|
|
|
|
|
Employee Benefit Liabilities
|
4,652
|
4,652
|
4,652
|
|
Total Non-current Liabilities
|
4,652
|
4,652
|
4,652
|
|
Total Liabilities
|
92,706
|
94,706
|
109,909
|
|
Taxpayers’ Equity
|
|
|
|
|
General Funds
|
4,185,621
|
3,972,477
|
3,888,467
|
|
Revaluation Reserve
|
6,227,204
|
6,227,204
|
6,227,204
|
|
Total Taxpayers’ Equity
|
10,412,825
|
10,199,681
|
10,115,671
|
|
Total Liabilities and Taxpayers’ Equity
|
10,505,531
|
10,294,387
|
10,225,580
|
- 4 Debtor Crown figure related to cash that had not been drawn down that will be used for upgrading ministry infrastructure.
Prospective statement of cash flows
for the year ending 30 June 2008
|
|
2007/08
Budget
$000
|
2006/07
Budget
$000
|
2006/07
Estimated
Actual
$000
|
|
Cash Flows from Operating Activities
|
|
|
|
|
Cash Provided from:
|
|
|
|
|
Supply of Outputs to:
|
|
|
|
|
Crown
|
1,568,320
|
1,557,885
|
1,557,885
|
|
Department
|
2,902
|
4,895
|
4,895
|
|
Other
|
7,125
|
9,317
|
9,317
|
|
Cash Applied to:
|
|
|
|
|
Output Expenses
|
(424,049)
|
(438,136)
|
(435,688)
|
|
Net GST received/(paid)
|
–
|
(918)
|
(918)
|
|
Capital Charge
|
(774,200)
|
(759,885)
|
(759,885)
|
|
Net Cash from Operating Activities
|
380,098
|
373,158
|
375,606
|
|
Cash Flow from Investing Activities
|
|
|
|
|
Cash Provided from:
|
|
|
|
|
Proceeds from Sale of Property, Plant and Equipment
|
35,221
|
37,718
|
37,718
|
|
Cash Applied to:
|
|
|
|
|
Purchase of Property, Plant and Equipment
|
(580,224)
|
(532,744)
|
(485,192)
|
|
Purchase of Intangible Assets
|
(35,370)
|
(23,314)
|
(20,866)
|
|
Net Cash from Investing Activities
|
(580,373)
|
(518,340)
|
(468,340)
|
|
Cash Flow from Financing Activities
|
|
|
|
|
Cash Provided from:
|
|
|
|
|
Capital Contribution from the Crown5
|
213,144
|
154,921
|
89,133
|
|
Cash Applied to:
|
|
|
|
|
Payment of Surplus to the Crown
|
–
|
(1,684)
|
(1,684)
|
|
Capital Withdrawal6
|
–
|
(5,123)
|
(5,123)
|
|
Net Cash from Financing Activities
|
213,144
|
148,114
|
82,326
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents
|
12,869
|
2,932
|
(10,408)
|
|
Cash and Cash Equivalents at the Beginning of the Year
|
19,380
|
29,788
|
29,788
|
|
Cash and Cash Equivalents at the End of the Year
|
32,249
|
32,720
|
19,380
|
- 5 Capital Contribution comprises $193.7 million for the school property works programme and $19.5 million for ministry chattels. In 2006/07 $132.2 million was allocated for the property works programme and $22.7 million for chattels.
6 The capital withdrawal mainly relates to the proceeds from the sale of the core teacher and caretaker housing portfolio to schools during 2006/07. No withdrawal has been forecast for 2007/08.
Reconciliation of net surplus/(deficit) to net cash flow from operating activities from the prospective statement of financial performance
for the year ending 30 June 2008
|
|
2007/08
Budget
$000
|
2006/07
Budget
$000
|
2006/07
Estimated
Actual
$000
|
|
Net Surplus/(Deficit)
|
|
|
|
|
Add/(Deduct) Non-cash Expenses/(Revenue)
|
–
|
–
|
–
|
|
Depreciation and Amortisation
|
380,098
|
371,279
|
373,727
|
|
Add/(Deduct) Movements in Working Capital
|
|
|
|
|
Accounts Receivables and Advances
|
–
|
17,688
|
17,688
|
|
Payables and Advances
|
–
|
(15,679)
|
(15,679)
|
|
Employee Benefits
|
–
|
(130)
|
(130)
|
|
Net Cash Inflow/(Outflow) from Operating Activities
|
380,098
|
373,15
|
375,606
|
Prospective statement of changes in taxpayers’ equity
for the year ending 30 June 2008
|
|
2007/08 Budget
$000
|
Estimated
Actual as at
30 June 2007
$000
|
|
Taxpayers’ Equity at Beginning of the Year
|
10,199,681
|
10,115,671
|
|
Adjustments for Flows to and from the Crown:
|
|
|
|
Capital Contributions from the Crown
|
213,144
|
89,133
|
|
Capital Withdrawals
|
–
|
(5,123)
|
|
Total Adjustments for Flows to and from the Crown
|
213,144
|
84,010
|
|
Taxpayers’ Equity at End of the Year
|
10,412,825
|
10,199,681
|
Details of property, plant, equipment and intangibles by category in the prospective financial statements
as at 30 June 2008
|
|
Budget Position as at 30 June 2008
|
30 June 2007
|
|
|
Cost
$000
|
Accumulated Depreciation
$000
|
Net Book Value
$000
|
Estimated
Actual
$000
|
|
Property, Plant and Equipment
|
|
|
|
|
|
School Sector Property and Housing:
|
|
|
|
|
|
|
3,158,966
|
–
|
3,158,966
|
3,167,966
|
|
|
7,747,388
|
707,443
|
7,039,945
|
6,844,121
|
|
|
74,097
|
4,200
|
69,897
|
76,897
|
|
Ministry Chattels:
|
|
|
|
|
|
|
10,496
|
3,100
|
7,396
|
6,923
|
|
|
18,116
|
9,486
|
8,630
|
9,436
|
|
|
30,899
|
14,738
|
16,161
|
18,010
|
|
|
5,016
|
4,510
|
506
|
883
|
|
Total Property, Plant and Equipment
|
11,044,978
|
743,477
|
10,301,501
|
10,124,236
|
|
Intangibles:
|
|
|
|
|
|
Computer Software
|
76,438
|
24,360
|
52,078
|
26,068
|
|
Total Intangibles
|
76,438
|
24,360
|
52,078
|
26,068
|
|
Total Property, Plant, Equipment and Intangibles
|
11,121,416
|
767,837
|
10,353,579
|
10,150,304
|
Departmental capital expenditure
for the year ending 30 June 2008
(to be incurred in accordance with section 24 of the Public Finance Act 1989)
|
Departmental Capital Expenditure
|
Forecast 2007/08
$M
|
Estimated Actual 2006/07
$
|
Budget 2006/07
$M
|
Actual 2005/06
$M
|
Actual 2004/05
$M
|
Actual 2003/04
$M
|
Actual 2002/03
$M
|
|
School Buildings
|
568
|
475
|
523
|
429
|
418
|
373
|
286
|
|
Chattels
|
35
|
42
|
47
|
24
|
18
|
15
|
12
|
|
Total
|
603
|
517
|
570
|
453
|
436
|
388
|
298
|
Budgeted capital expenditure on school sector property during the year includes:
- the purchase of 11 new school sites required for schools needed in the future and the extension of existing school sites to cater for roll growth
- the construction of ten new schools to open in 2008 and 2009 in response to demographic changes and roll growth in specific locations
- the continued implementation of five-year plan renewals and property guides for all school types
- the establishment of new kura kaupapa Māori and other special character schools, and extending current kura to wharekura
- delivery of 200 additional classrooms to meet increased school rolls
- announcement of a school property guide deficiency programme of $22 million and replacement building programme of $20 million
- disposal of surplus property with net proceeds of $28 million.
Capital expenditure on chattels is mainly related to:
- development of a system for secure connection of sector participants to multiple education databases
- development of an electronic document and record management system
- enhancement of IT capability
- routine replacement and upgrade of vehicles, office accommodation, information technology and office equipment.
Statement of objectives specifying the prospective financial performance of the ministry
|
|
Unit
|
2007/08
Budget
|
2006/07
Budget
|
2006/07
Estimated
Actual
|
|
Operating Results
|
|
|
|
|
|
Revenue – Other
|
$000
|
10,027
|
12,089
|
12,089
|
|
Output Expenses
|
$000
|
1,578,347
|
1,554,374
|
1,554,374
|
|
Operating Surplus before Capital Charge
|
$000
|
774,200
|
759,885
|
759,885
|
|
Working Capital
|
|
|
|
|
|
Net Current Assets
|
$000
|
63,898
|
67,369
|
54,029
|
|
Current Assets over Current Liabilities
|
CA/CL
|
1.73
|
1.75
|
1.60
|
|
Average Debtors Outstanding
|
Days
|
60
|
53
|
53
|
|
Average Creditors Outstanding
|
Days
|
33
|
28
|
28
|
|
Resource Utilisation
|
|
|
|
|
|
Property, Plant and Equipment:
|
|
|
|
|
|
Additions as Percentage of Property, Plant and Equipment
|
%
|
6.0%
|
5.5%
|
5.1%
|
|
Total Property, Plant and Equipment at End of the Year
|
$000
|
10,353,579
|
10,202,752
|
10,150,304
|
|
Taxpayers’ Funds at End of the Year
|
$000
|
10,412,825
|
10,265,469
|
10,199,681
|
|
Other – Cash Flows
|
|
|
|
|
|
Surplus from Operating Activities
|
$000
|
380,098
|
373,158
|
375,606
|
|
Deficit from Investing Activities
|
$000
|
(580,373)
|
(518,340)
|
(468,340)
|
|
Surplus from Financing Activities
|
$000
|
213,144
|
148,114
|
82,326
|
|
Net Increase/(Decrease) in Cash Held
|
$000
|
12,869
|
2,932
|
(10,408)
|
|
Total Number of Full-time Equivalent Staff
|
No.
|
2,576
|
2,550
|
2,500
|
|
Staff Turnover through Resignations
|
%
|
11
|
14
|
12
|
Statement of objectives specifying the prospective performance for each output expense for the year ending 30 June 2008
The ministry has agreed to provide output expenses in 2007/08 that meet the requirements of the Vote ministers and various purchasers in terms of their nature, outcome emphasis, timeliness, quality and quantity specifications and cost.
Summary of departmental output expenses
Departmental output expenses to be delivered by the ministry and their associated revenues, expenses and surplus or deficit, are summarised below.
Output statements of financial performance: 2007/08
|
Departmental Output Expense Description
|
Crown Revenue
$000
|
Other Revenue
$000
|
Expenditure
$000
|
Surplus/(Deficit)
$000
|
|
Portfolio Minister: Minister of Education
|
|
|
|
|
|
Strategic Leadership in the Sector
|
|
|
|
|
|
Delivers policies and services focused on the ministry’s leadership role in the education sector.
|
33,101
|
339
|
33,440
|
–
|
|
Support and Resources for the Community
|
|
|
|
|
|
Delivers policies and programmes focused on improving the community’s knowledge and participation in the education system.
|
14,425
|
141
|
14,566
|
–
|
|
Support and Resources for Education Providers
|
|
|
|
|
|
Ensure that education providers have the resources and support required to deliver services to the education sector.
|
85,864
|
1,425
|
87,289
|
–
|
|
School Property Portfolio Management
|
|
|
|
|
|
Provision and management of the property portfolio for the State school sector.
|
1,156,989
|
3,244
|
1,160,233
|
–
|
|
Support and Resources for Teachers
|
|
|
|
|
|
Provision of resources and support to teachers and principals, in order to enhance professional leadership, learning and teaching.
|
65,699
|
141
|
65,840
|
–
|
|
Interventions for Target Student Groups
|
|
|
|
|
|
Delivers policies, funding and services focused on targeted student groups’ or individuals’ participation in education including children and young people with special education needs.
|
187,759
|
4,737
|
192,496
|
–
|
|
Portfolio Minister: Minister for Tertiary Education
|
|
|
|
|
|
Strategic Leadership in the Tertiary System
|
|
|
|
|
|
Delivers policies and services focused on the ministry’s leadership role in the tertiary system and international education.
|
24,483
|
–
|
24,483
|
–
|
|
Total
|
1,568,320
|
10,027
|
1,578,347
|
–
|
Reporting entity
The reporting entity is known as the Ministry of Education (the ministry), which includes all activities carried out in terms of the outputs purchased by the Minister of Education and the Minister for Tertiary Education.
Statutory base
The prospective financial statements for the Ministry of Education are prepared pursuant to Section 38 of the Public Finance Act 1989.
Statement of compliance
These prospective financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand. They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for public benefit entities. These are the ministry’s first set of prospective financial statements complying with NZ IFRS, and NZ IFRS 1 has been applied.
Statement of significant underlying assumptions
These prospective financial statements have been compiled on the basis of government policies and the Ministry of Education’s Output Plan as agreed with the Minister of Education and the Minister for Tertiary Education at the time the statements were finalised. These prospective financial statements have been prepared on a going concern basis.
Statement of significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these prospective financial statements.
The measurement base applied is historical cost modified by the revaluation of certain assets and liabilities as identified in this statement of accounting policies.
The accrual basis of accounting has been used unless otherwise stated. These prospective financial statements are presented in New Zealand dollars rounded to the nearest thousand dollars ($000).
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value, except in the case of school buildings, which are stated at cost or valuation less accumulated depreciation.
Land and buildings are valued at fair value. For school buildings this is assessed using optimised depreciated replacement cost. School land is recorded at market value assessed on a highest and best use basis. The remainder of the portfolio is recorded at assessed market value using the rateable values or if in the disposal process, an independent valuation. In addition, capital work in progress is included at cost.
Impairment of property, plant and equipment
The carrying amounts of plant, property and equipment are reviewed at least annually to determine if there is any indication of impairment. Where an asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported in the Statement of Financial Performance, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease.
Intangible assets
Intangible assets are initially recorded at cost. The cost of an internally generated intangible asset represents expenditure incurred in the development phase of the asset only. Expenditure incurred on research of an internally generated intangible asset is expensed when it is incurred.
Intangible assets with finite lives are recorded at cost less any amortisation and impairment losses. Amortisation is charged to the Statement of Financial Performance on a straight-line basis over the useful life of the asset.
The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:
Computer Software 3 – 5 years 20 – 33 %
Non-current assets held for sale
Non-current assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction, not through continuing use.
Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Non-current assets held for sale are not depreciated.
Cost allocation
The ministry’s output costs shown in these statements are derived from a cost allocation system, which is outlined below.
Cost allocation policy
All costs are charged to activities or projects. Direct costs are charged directly to non-overhead activities or projects. Indirect costs are charged to overhead activities.
Costs in the overhead activities are then ascribed to non-overhead activities based on cost drivers.
Criteria for direct and indirect costs
‘Direct Costs’ are those costs charged directly to a non-overhead activity. ‘Indirect Costs’ are those overhead costs that cannot be identified with a specific output in an economically feasible manner, and are charged to an overhead activity.
Direct costs assigned to outputs
Non-overhead activities are mapped directly to outputs. Costs in these activities are therefore assigned directly to the relevant outputs. This includes costs related to the provision of school sector property.
Basis for assigning indirect and corporate costs to outputs
Indirect costs are assigned to non-overhead activities, and thereby to outputs, on the basis of direct salary costs captured within the non-overhead activity.
Foreign currency
Transactions in foreign currencies are initially translated at the foreign exchange rate at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Performance.
Employee entitlements
Employee entitlements to salaries and wages, annual leave, long service leave, retiring leave and other similar benefits are recognised in the Statement of Financial Performance when they accrue to employees. Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. The liability for long-term employee entitlements is reported as the present value of the estimated future cash outflows.
Financial instruments
Financial instruments primarily comprise bank balances, accounts receivables, accounts payables and foreign currency forward contracts, which are recognised in the balance sheet. Revenue and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.
Cash and cash equivalents include cash on hand, cash in transit, bank accounts and deposits with a maturity of no more than three months from date of acquisition.
Loans, receivables and payables are non-derivative financial assets and liabilities with fixed or determinable payments that are not quoted in an active market.
Loans and receivables are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Loans and receivables issued with duration less than 12 months are recognised at their nominal value, unless the effect of discounting is material. The allowances for estimated irrecoverable amounts are recognised when there is objective evidence that the asset is impaired. Interest, impairment losses and foreign exchange gains and losses are recognised in the Statement of Financial Performance.
Accounts payable are recorded at cost.
Goods and Services Tax (GST)
Revenue, expenses, assets, and liabilities are recorded as GST exclusive, except for debtors and creditors, which are recorded as GST inclusive.
Finance and operating leases
Finance leases transfer to the ministry as lessee substantially all the risks and rewards incident on the ownership of leased assets. Initial recognition of a finance lease results in an asset and liability being recognised at amounts equal to the lower of the fair value of the leased property or the present value of the minimum lease payments. The capitalised values are amortised over the period in which the ministry expects to receive benefits from their use.
Operating leases, where the lessor substantially retains the risks and rewards of ownership, are recognised in a systematic manner over the term of the lease. Leasehold improvements are capitalised and the cost is amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter. Lease incentives received are recognised evenly over the term of the lease as a reduction in rental expense.
Depreciation
Depreciation is provided on a straight-line basis on all property, plant and equipment other than land, over the expected useful life as follows:
|
Permanent school building roof, services, fitouts, lifts and boilers
|
15 – 40 year
|
|
Relocatable classrooms
|
40 years
|
|
Ancillary buildings, covered ways, houses, kindergartens, playcentres, site improvements, swimming pools
|
25 – 50 years
|
|
Permanent school building fabric
|
60 years
|
|
Motor vehicles
|
4 years
|
|
Plant and equipment
|
3 – 8 years
|
Revenue
Revenue is derived through the provision of outputs to the Crown and for services to third parties. This revenue is recognised when earned and is reported in the financial period to which it relates.
Changes in accounting policies
There have been no changes in accounting policies.
Non-departmental appropriations administered − Minister for Tertiary Education
for the year ending 30 June 2008
|
|
2007/08
Budget
$000
|
2006/07
Estimated
Actual
$000
|
|
Output Expenses to be Provided by Other Parties
|
|
|
|
Centres of Research Excellence
|
22,841
|
22,745
|
|
Developing Strategic Coherence Across the Tertiary Sector
|
29,444
|
28,129
|
|
Management of Grants and Contracts
|
13,909
|
13,809
|
|
Tertiary and International Advisory Services
|
10,750
|
9,310
|
|
Training for Designated Groups
|
287,351
|
254,608
|
|
Total Output Expenses to be Provided by Other Parties
|
364,295
|
328,601
|
|
Benefits and Other Unrequited Expenses
|
|
|
|
Māori and Pacific Island Scholarships and Bursaries
|
993
|
3,407
|
|
Tertiary Scholarships
|
26,137
|
22,177
|
|
Other Benefits and Subsidies
|
7,170
|
6,717
|
|
Total Benefits and Other Unrequited Expenses
|
34,300
|
32,301
|
|
Other Expenses to be Incurred by the Crown
|
|
|
|
Performance Based Research Fund
|
215,920
|
200,376
|
|
Tertiary Education and Training
|
1,818,407
|
1,698,718
|
|
Other Expenses
|
83,715
|
64,725
|
|
Total Other Expenses to be Incurred by the Crown
|
2,118,042
|
1,963,819
|
|
Capital Expenditure
|
|
|
|
Tertiary Capital Contributions
|
36,473
|
31,610
|
|
Crown Entities
|
4,750
|
6,789
|
|
Tertiary Education Commission Disbursements
|
44,314
|
48,298
|
|
Total Capital Expenditure
|
85,537
|
86,697
|
|
Total Non-departmental Expenditure
|
2,602,174
|
2,411,418
|
|
Crown Revenue
|
|
|
|
Current Non-tax Crown Revenue
|
11,504
|
21,053
|
|
Capital Crown Revenue
|
25,822
|
747
|
|
Total Crown Revenue
|
37,326
|
21,800
|
Non-departmental appropriations administered − Minister of Education
for the year ending 30 June 2008
|
|
2007/08
Budget
$000
|
2006/07
Estimated
Actual
$000
|
|
Output Expenses to be Provided by Other Parties
|
|
|
|
Curriculum Support
|
68,693
|
67,851
|
|
Education Research Initiatives
|
3,230
|
3,230
|
|
Professional Development and Support
|
120,410
|
107,960
|
|
Provision of Information and Advisory Services
|
25,846
|
23,815
|
|
Qualifications Support Structures7
|
6,199
|
–
|
|
Quality Assurance7
|
9,520
|
–
|
|
School Transport
|
127,174
|
124,833
|
|
Secondary School Examinations8
|
23,760
|
25,324
|
|
Stewardship of the New Zealand Qualifications System
|
–
|
12,007
|
|
Supporting Parenting
|
19,360
|
18,947
|
|
Total Output Expenses to be Provided by Other Parties
|
404,192
|
383,967
|
|
Benefits and Other Unrequited Expenses
|
|
|
|
National Study Awards
|
20,002
|
22,135
|
|
Other Benefits and Subsidies
|
32,035
|
29,951
|
|
Total Benefits and Other Unrequited Expenses
|
52,037
|
52,086
|
|
Other Expenses to be Incurred by the Crown
|
|
|
|
Early Childhood Education
|
755,222
|
586,006
|
|
Primary Education
|
2,123,871
|
2,069,445
|
|
Secondary Education
|
1,647,083
|
1,614,101
|
|
Special Needs Support
|
268,157
|
261,258
|
|
Other Expenses
|
72,779
|
67,889
|
|
Total Other Expenses to be Incurred by the Crown
|
4,867,112
|
4,598,699
|
|
Capital Expenditure
|
|
|
|
Schools Capital Contributions
|
18,374
|
28,729
|
|
Crown Entities
|
2,340
|
850
|
|
Teacher and Caretaker Housing
|
–
|
7,402
|
|
Total Capital Expenditure
|
20,714
|
36,981
|
|
Total Non-departmental Expenditure
|
5,344,055
|
5,071,733
|
|
Crown Revenue
|
|
|
|
Current Non-tax Crown Revenue
|
39,736
|
40,100
|
|
Total Crown Revenue
|
39,736
|
40,100
|
- 7 This output was previously appropriated as part of Stewardship of the New Zealand Qualifications System.
8 This output was previously entitled Administration of National Assessment of Secondary Qualifications.
Output expense specifications
Changes to the output expense structure
The ministry revised its departmental output structure for 2007/08 as one part of a package of changes to the ministry’s management information and decision-making capability. These changes aim to provide the ministry an improved ability to measure what is delivered and achieved from any given piece of expenditure, enabling better prioritisation of work programmes and resource allocation; and support the assessment of expenditure from efficiency, effectiveness and, ultimately, a value-for-money perspective. The changes are explained on page 76.
Output Expense 1: Strategic Leadership in the Sector
Portfolio Minister: Minister of Education
This output expense delivers policies and services focused on the ministry’s leadership role in the education sector. This includes coordination with other sector and government agencies and forums to achieve shared goals; undertaking research and analysis; monitoring education sector capability and viability; developing strategic policy related to the education sector and education outcomes; and providing ministerial support to assist the Minister of Education and Associate Minister to meet their obligations to Parliament.
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity & Timeliness
|
The leadership group of chief executives of the six education agencies has the overall responsibility for this output. There will be 12 monthly meetings per year.
|
100% compliance
|
|
Quality
|
Every meeting will have:
an agenda
minutes
assigned action items.
|
100% compliance
|
Output 1.2 Research and Analysis
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Research and survey programmes will be delivered according to the Research and Survey work programme.
|
100%
|
|
The Best Evidence Synthesis (BES) programme will be delivered according to the published programme.
|
100%
|
|
Number of routine data inquiries addressed.
Reports to enable Strategic Leadership delivered.
|
650 – 850
35 – 45
|
|
Quality
|
Percentage of research programmes that meet ministry’s quality requirements for methodology, contracts and reports.
|
100%
|
|
BES reports will be produced according to the standards for the BES programme defined in the ministry’s ‘Guidelines for Generating a Best Evidence Synthesis Iteration’.
|
100%
|
|
Client satisfaction rating of 3 (satisfied) or greater.
|
100%
|
|
Timeliness
|
Percentage of research programmes provided within the agreed timeframes.
|
100%
|
|
External reports – to meet various external deadlines.
Internal reports – to provide timely information for action to the ministry.
|
100%
|
Output 1.3 Monitoring of the Education Sector
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Production of the annual School Sector Report and State of Education report.
|
100%
|
|
Publication of all key sector statistics on the Education Counts website.
|
100%
|
|
Monitor crown entities by analysis of strategy, capability, financial performance and achieving of targets of the following:
- Letters of Expectation
- Statements of Intent
- Output Plans
- Quarterly reports.
|
4
4
4
16
|
|
Assist in the development and planning of Letters of Expectation, Statements of Intent and Output Plans.
Monitor and facilitate the Board appointments for four entities.
|
|
|
Quality
|
Every education sector report will be peer reviewed prior to publication.
|
100%
|
|
Peer review by the relevant crown entities.
|
100%
|
|
Timeliness
|
Education Sector Reporting will adhere to the timeliness and publication dates set by the Treasury’s Budget timelines.
|
100%
|
|
A report analysing each quarterly crown entity report will be produced to the Minister within 10 working days of receipt.
|
100%
|
|
Letters of Expectation, Statements of Intent, and Output Plans will comply with statutory deadlines.
|
100%
|
|
Analysis and comment on the performance of all central education Crown entities under their output agreements will be provided to the Minister within 30 working days of receipt of reports.
|
100%
|
Output 1.4: Development and Evaluation of Strategic Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
Output 1.5 : Support for the Education Minister
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Parliamentary questions and petitions.
|
1,350 – 1,555
|
|
Select Committee examinations and inquiries.
|
125 – 145
|
|
Statutory information.
|
190 – 215
|
|
General ministerial correspondence, including responses to requests from the Minister.
|
7,500 – 9,010
|
|
Quality
|
The content of all ministerial services provided will be factually accurate and appropriate in style and content for the individual Minister, consistent with the ministry’s ‘Ministerial Correspondence Guidelines’.
|
100%
|
|
Timeliness
|
All responses and provision of information to the Minister of Education and Parliament, and its committees, will be prepared to the following timelines, or as otherwise specifically agreed:
|
100%
|
- Parliamentary questions and petitions – in accordance with parliamentary Standing Orders
|
100%
|
- Select Committee examinations and inquiries – as specifically agreed
|
100%
|
- Statutory information – as required in legislation
|
100%
|
- general ministerial correspondence – within 20 working days, or as specifically agreed.
|
100%
|
Cost
This output expense class will be provided with the appropriated sum of $33.440m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
33,440
|
33,440
|
33,101
|
339
|
–
|
Output Expense 2: Support and Resources for the Community
Portfolio Minister: Minister of Education
This output expense delivers policies, programmes and services focused on improving the community’s knowledge of, and participation in, the education system. This includes working with iwi and community groups to build relationships and foster greater participation; providing information to enable better informed decision-making about education options; supporting and delivering programmes to provide education stakeholders in the community with the knowledge and skills required to support the education system; and delivery of timely and relevant policy advice to the Minister of Education.
Output 2.1: Development and Evaluation of Community Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
Output 2.2: Engagement and Provision of Information to the Community
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Engagement with Pasifika communities through fono, measured by national fono meetings between the Secretary for Education and Pasifika communities.
|
8 – 9 per annum
|
|
Meetings of the Pasifika Advisory Group.
|
3 per year
(2 national, 1 regional)
|
|
Engagement with separate iwi groups, measured by total number of iwi groups engaged with the ministry.
|
17
|
|
Meetings between ministry/iwi education managers.
|
10 per annum
|
|
Meetings between Secretary for Education and iwi.
|
1 per annum
|
|
Contracts for service based on shared outcomes between the ministry and iwi education managers.
|
10 – 15
|
|
Percentage of the Team-Up target group (parents with children aged between 0 and 17 years) who have received the Team-Up message.
|
80%
|
|
Talanoa Ako – Pacific Education Talk news magazine.
|
3 publications per annum
|
|
Good Morning Television (GMTV) programme segments for parents, and associated fact sheets/web content.
|
20 – 44
|
|
Quality
|
Pasifika community’s satisfaction rating for fono, reflecting:
- pre-fono briefings for Secretary for Education and senior management
- multimedia presentation finalised and project management agreed with regional offices
- fono report prepared with key actions recorded and followed up through regional work programmes or groups as relevant.
|
3 (satisfied) or greater
|
|
Timeliness
|
Meetings of the Pasifika Advisory Group with Secretary for Education and managers of relevant work streams reflecting agreed agenda. Key actions are followed up.
|
100%
|
|
Engagement with separate iwi groups. Key actions will be recorded and managed from each ministry/iwi education manager meeting. A brief will be prepared prior to each annual Secretary for Education/iwi group meeting; key actions will be recorded and followed up.
|
100%
|
|
Contracts for service based on shared outcomes between the ministry and iwi education managers. Milestone reporting is in place, contractual commitments met, lessons learned captured, and performance meets contractual requirements.
|
100%
|
|
Awareness of Team-Up within target group (parents with children aged between 0 and 17 years).
|
65% rated as ‘aware’.
|
|
Pasifika groups’ satisfaction with Talanoa Ako (Pacific Education Talk news magazine).
|
65%
|
|
Information for parents developed to time, to ministry quality standards (including content, format, written and web standards) and tested with target communities.
|
100%
|
|
Activities occur as contractually agreed with iwi education managers.
|
100%
|
|
|
Team-Up services delivered according to the agreed project plan.
|
100%
|
|
Services provided within the weekly timeline for the provision of GMTV.
|
95% completion by deadlines
|
Output 2.3: Provision of Services to the Community
Performance Dimensions
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The number of targeted interventions.
|
160 – 170
|
|
Number of contracted providers to the Promoting Participation Project.
|
20 – 35
|
|
Provision of professional development and support to licence-exempt groups.
|
750 – 900
|
|
Parent mentoring target interventions.
|
2 clusters
|
|
Parent mentoring information packs sent to the Far North.
|
170
|
|
Parents attending playgroups in Manukau per year.
|
150
|
|
Provide training through the Atawhaingia Te Pā Harakeke programme to:
- provider groups
- individuals
- regional forums.
|
20 – 30
40 – 50
|
|
Provider groups supplied with specialist resource material.
|
50
|
|
Quality
|
All contracted activity and reporting is completed to time and standard, and information demonstrates that outcomes are being met for the target/contracted populations within each contract.
|
95%
|
|
Meet the requirements of the contracted Service Level Agreements within the Atawhaingia Te Pā Harakeke programme.
|
100%
|
|
Timeliness
|
Three-monthly reporting based on contract monitoring.
|
95%
|
|
Parent mentoring information packs distributed within a fortnight of request.
|
100%
|
|
Annual reporting of attendance (Manukau) and number of (Far North) packs distributed based on contract monitoring.
|
100%
|
|
To meet the reporting deadlines within the Atawhaingia Te Pā Harakeke programme
|
100%
|
Cost
This output will be provided with the appropriated sum of $14.566m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
14,566
|
14,566
|
14,425
|
141
|
–
|
Output Expense 3: Support and Resources for Education Providers
Portfolio Minister: Minister of Education
This output expense involves a range of outputs to ensure that education providers have the resources and support required to deliver services to the education sector. This includes delivery of timely and relevant policy advice to the Minister of Education; administration of a range of legislative and regulatory controls; the determination and delivery of funding and other resources; providing services that support the governance, management and operation of education providers; and monitoring and intervening in providers that are at risk in relation to financial viability, student achievement or participation.
Output 3.1: Development and Evaluation of Provider Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
Output 3.2: Regulation of Providers
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
New enrolment schemes (State schools).
Supplementary integration agreements.
Integration of private schools.
Approval of attendance dues.
|
50 – 70
30 – 100
0 – 3
4 – 6
|
|
New Early Childhood Education Centre charters approved.
Early Childhood Education Centre licences reclassified from Full to Provisional.
|
50 – 150
100 – 200
|
|
Prosecutions for illegal schooling.
Prosecutions for non-enrolment of students.
|
1 – 2
5 – 10
|
|
The following circulars will be published:
- fees & donations
- suspensions
- truancy.
|
100%
|
|
Inquiries from the Ombudsman.
|
5 – 7
|
|
Timeliness
|
Provider licensing completed to agreed timeframes.
|
100%
|
|
Ensure that the Student Enrolment Circular and all other circulars are current.
|
100%
|
Output 3.3: Resourcing Education Providers
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Percentage of education providers subject to resource allocation audits (including repeat audits and special reviews).
|
12% – 17%
|
|
Number of programmes managed (within non-departmental output expense appropriations) under which services are purchased.
|
130 – 150
|
|
Number of purchasing agreements managed (excluding purchasing agreements managed with schools).
|
1,020 – 1,100
|
|
Number of agreements managed within two school transport service agent agreements.
|
300 – 340
|
|
Number of school transport agreements with bus operators managed.
|
390 – 400
|
|
Number of contracts managed with schools.
|
1,000 – 1,100
|
|
Number of non-contestable agreements managed.
|
40 – 50
|
|
Quality
|
Accuracy of all resourcing payments, calculated and delivered, in respect of:
- the amounts of the payments
- the schedules advised to public education service providers, or the agreements agreed with those providers
- the timeframes notified to payees
- funding delivered to the correct provider
- the number of returns and other information.
|
98%
|
|
Quality (continued)
|
All purchasing agreements will:
- fulfil the purpose of the appropriation, and be tailored to the particular business environments within which providers are operating
- be informed either by analysis of actual performance of the respective providers in previous periods or through referees and other information
- set terms and conditions consistent with the quality expectations for contracting set out in applicable Treasury and ministry documents, specifically the ministry’s ‘Purchasing Guidelines’ and Treasury’s ‘Guidelines for Contracts with Non-Government Organisations for Services sought by the Crown’ (Treasury, December 2003).
|
100%
|
|
Payments will be made only where there is a current signed agreement and only in terms of the conditions set out in the agreement.
|
100%
|
|
Appropriate action will be taken in all matters of material concern consistent with risk-based monitoring requirements of purchase agreements and the ministry’s ‘Purchasing Guidelines’.
|
100%
|
|
Advice and recommendations will be provided to the Minister on significant variances of provider performance in all matters of material concern that have not been resolved through follow-up action.
|
100%
|
|
Timeliness
|
Purchasing recommendations requiring the Minister’s approval will be forwarded to the Minister at least 30 days prior to the commencement of the period to which the agreements apply, to enable the Minister to sign agreements in a timely fashion.
|
100
|
|
Agreements will be signed prior to the commencement date for the delivery of goods and services in the period to which the agreements relate.
|
100%
|
Output 3.4: Provision of Services
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Number of purchasing agreements managed.
|
1,020 – 1,100
|
|
Discretionary Grants processed.
|
150 - 200
|
|
Discretionary Grants approved.
|
50 - 100
|
|
Advice and Support contracts.
|
30 – 50
|
|
Number of individual payees paid in each pay period (all actual permanent and temporary employees).
|
54,000 – 87,000
|
|
Number of schools covered by the Risk Management Scheme.
|
850
|
|
|
All school sector and kindergarten industrial relations services will be provided to the following standards:
- advice to ministers and actions will be consistent with employment and State sector legislation
- the ministry’s advice will reflect recent developments in human resources management practice, and take into account good employer objectives
- processes will provide for consultation with all relevant stakeholders in the preparation of the industrial relations strategies
- management of collective agreement negotiations processes will be within agreed parameters as confirmed by Cabinet from time to time
- the provision of advice and guidance on the interpretation and implementation of employment agreement provision will be clear and consistent
- concurrence with individual employment agreements will be consistent with the principles and within the agreed parameters as confirmed by the Minister from time to time
- discretionary agreement provisions will be applied in accordance with the guidelines contained in the State Sector Act 1988, ministerial guidelines and the Employment Relations Act
|
100%
|
|
Quantity (continued)
|
- manage the negotiation processes of up to 16 current and expired collectives and new collective agreements when bargaining is initiated by the union. The ministry will continue to contribute to the work of the Post Primary Teachers Association (PPTA) and the New Zealand Educational Institute Te Riu Roa (NZEI) on the longer term work programmes. This work is to examine and report on ways to support and promote effective teaching through ongoing professional learning, career pathways and recognition of professional learning through advanced qualifications
|
|
- individual employment agreements and individual requests from Boards bound by collective agreements will be processed for concurrence.
- Loan/investment applications processed.
|
0 - 10
|
|
Quality
|
All contracts entered into on behalf of providers will be actively managed, with established contracts audited annually, and with a level of sampling representative of the size and type of contract.
|
100%
|
|
Variances greater than 10% in agreed volumes for contracts entered into on behalf of providers reported as a variance report.
|
100%
|
|
All purchasing agreements will:
- fulfil the purpose of the appropriation, and be tailored to the particular business environments within which providers are operating
- be informed either by analysis of actual performance of the respective providers in previous periods or through referees and other information
- set terms and conditions consistent with the quality expectations for contracting set out in applicable Treasury and ministry documents, specifically the ministry’s ‘Purchasing Guidelines’ and Treasury’s ‘Guidelines for Contracts with Non-Government Organisations for Services sought by the Crown’ (Treasury, December 2003).
|
100%
|
|
Changes to employees’ pays (where required) made correctly each fortnight.
|
98%
|
|
Employees paid the correct amount each fortnight.
|
98%
|
|
Timeliness
|
Purchasing recommendations requiring the Minister’s approval will be forwarded to the Minister at least 30 days prior to the commencement of the period to which the agreements apply, to enable the Minister to sign agreements in a timely fashion.
|
100%
|
|
Agreements will be signed prior to the commencement date, for the delivery of goods and services in the period to which the agreements relate.
|
100%
|
|
No contracts entered into on behalf of providers will be allowed to lapse.
|
100%
|
|
Percentage of Payroll payments made on or before advised pay dates.
|
100%
|
|
The Risk Management Scheme’s content deed will be updated and available from the ministry website by 30 July each year.
|
100%
|
|
Copies of the Risk Management Scheme’s comprehensive liabilities programme will be updated and available from the ministry website by 31 January each year.
|
100%
|
|
An exception report will be provided where Risk Management Scheme contents claims are not processed within 28 working days of acceptance, and/or as set out under the terms of the deed.
|
100%
|
Output 3.5: At-risk Provider Interventions
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
|
|
Initiated
|
Completed
|
|
Quantity
|
Formal Action:
- Medium to high risk is identified beyond the scope of an informal project.
|
1 – 20
|
1 – 20
|
|
Commissioners and other appointments Section 78 of the Education Act 1989 allows a range of interventions in schools as follows:
|
|
|
- the Secretary for Education may require a Board to provide specific information [78J]
|
0 – 2
|
0 - 2
|
- the Secretary for Education may require a Board to engage specialist help [78K]
|
10 – 25
|
8 - 20
|
- the Secretary for Education may require a Board to prepare and carry out an action plan [78L]
|
2 – 4
|
2 – 4
|
- the Minister of Education may direct the Secretary to appoint a limited statutory manager [78M]
|
20 – 40
|
20 - 40
|
- the Minister of Education may dissolve a Board and direct the Secretary to appoint a commissioner [78N(1)]
|
3 - 15
|
3 - 15
|
- the Secretary for Education may dissolve a Board and appoint a commissioner [78N(3)].
|
3 – 15
|
3 - 15
|
|
Schooling improvement:
- support for education outcomes in clusters of schools where common achievement issues have been identified.
|
2 – 5
|
1 – 3
|
|
Quality
|
Schooling improvement
- Interventions will occur in all cases where a medium to high risk of poor performance is identified.
|
100%
|
|
|
- Percentage of schooling improvement schools, where the ministry intervened, improved sufficiently to move off the intervention list.
|
20%
|
|
Timeliness
|
To specifically agreed timeframes
|
100%
|
Cost
This output will be provided with the appropriated sum of $87.289m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
87,289
|
87,289
|
85,864
|
1,425
|
–
|
Output Expense 4: School Property Portfolio Management
Portfolio Minister: Minister of Education
This output expense involves the provision of the property portfolio for the State school sector. This includes managing the existing property portfolio, focusing on upgrades and improvements to sustain the current quality of the portfolio; purchasing and constructing new property to expand the portfolio’s capacity to meet the demands of schooling or demographic changes; identifying and disposing of surplus State school sector property; and the management of teacher and caretaker housing.
Output 4.1: Management of the School Sector Property Portfolio
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The 2007/08 work programmes will be implemented in accordance with the 2007/8 School Property Business Case.
|
100%
|
|
Quality
|
The ministry will ensure that:
- a current Property Occupancy Document will be held with all boards of trustees
- all State schools will have ten-year property plans in place prior to accessing capital funding, with the exception of funding required to rectify a catastrophic loss
- all schools with a Compliance Schedule will hold a current Building Warrant of Fitness.
|
100%
|
|
All programmes will be consistent with the Business Case, completed on schedule and within budget.
|
100%
|
|
All projects will comply with all statutory, regulatory and ministry design standards and implemented in accordance with the project management guidelines.
|
100%
|
|
Timeliness
|
All schools suffering a catastrophic incident of loss (fire, flood, earthquake, etc) will be restored to operational status within three working days of the loss.
|
100%
|
Output 4.2: Purchase and Construction of New School Property
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Delivery of classrooms in schools will occur as necessary to meet increased school rolls.
|
100%
|
|
Quality & Timeliness
|
All projects will comply with all statutory, regulatory and ministry design standards and be implemented in accordance with the project management guidelines.
|
100%
|
|
All programmes will be consistent with the Business Case, completed on schedule and within budget.
|
100%
|
|
Post Occupancy Evaluations will be completed for each new school.
|
100%
|
Output 4.3: Disposal of Surplus School Property
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity & Quality
|
Surplus properties will be identified and disposed of in accordance with legislative requirements.
|
100%
|
|
Timeliness
|
Surplus properties will be sold on average within 22 months of them ceasing to be required for educational purposes.
|
100%
|
Output 4.4: Management of Teacher and Caretaker Housing
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity & Quality
|
Surplus properties will be identified and disposed of in accordance with legislative requirements.
|
100%
|
|
Timeliness
|
Surplus properties will be sold on average within 22 months of them ceasing to be required for educational purposes.
|
100%
|
Cost
This output will be provided with the appropriated sum of $1,160.233m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
1,160,233
|
1,160,233
|
1,156,989
|
3,244
|
–
|
Output Expense 5: Support and Resources for Teachers
Portfolio Minister: Minister of Education
This output involves the provision of resources and support to teachers and principals to support professional leadership, learning and teaching. This includes providing the curriculum and achievement standards; providing resources to educators to support teaching, learning and assessment; providing professional development programmes, scholarships, awards and other resources to teachers and principals to support professional leadership and learning; and delivery of timely and relevant policy advice to the Minister of Education.
Output 5.1: Development and Evaluation of Teaching Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
Output 5.2: Provision of Teaching and Learning Resources
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The final National Curriculum will be published and disseminated.
|
By September 2007
|
|
|
Learning, teaching and assessment resources will be provided in four formats:
|
|
|
|
- English-medium
- Te Reo Māori
- Pasifika
- online delivery.
|
152
33
10
24
|
|
Quality
|
The development of learning, teaching and assessment of resources will occur according to the ministry’s resource development process.
|
100%
|
|
Timeliness
|
Learning, teaching and assessment resources will be provided according to the individually agreed deadlines.
|
100%
|
Output 5.3: Provision of Services to Support Professional Leadership and Learning
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Number of contracts to the value of $90,000 managed for professional development programmes and other resources
|
240 - 280
|
|
Number of Principal Development Planning Centre attendees.
|
160
|
|
Number of online LeadSpace conferences provided.
|
3
|
|
Applications for the following scholarships and awards will be processed:
|
|
- scholarships for teachers and teacher trainees
|
1,550 – 2,000
|
- Secondary Subject Trainee Allowance and loan support for trainee teachers and teachers
|
1,400 – 1,600
|
- priority staffing initiatives to support relocation of individual teachers in both schools and early childhood education centres
|
1,200 – 1,500
|
- national study awards for teachers and teacher trainees
|
480 – 580
|
- government boarding bursaries.
|
1,200 – 1,500
|
|
Quality
|
Contracts for professional development programmes and other resources will be managed according to the ministry’s ‘Contracting Guidelines’ policy.
|
100%
|
|
Percentage of Principal Development Planning Centre attendees with approved development plans.
|
95%
|
|
Scholarships and awards will be:
- awarded in line with government policies and published criteria
- calculated accurately
- paid to the correct payee and paid within the timeframes notified.
|
98%
|
|
Timeliness
|
Milestone reports will be provided by the suppliers of professional development programmes and other resources in accordance with contractual responsibilities.
|
100%
|
Cost
This output will be provided with the appropriated sum of $65.840m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
65,840
|
65,840
|
65,699
|
141
|
–
|
Output Expense 6: Interventions for Target Student Groups
Portfolio Minister: Minister of Education
This output delivers policies, resources and services focused on targeted student groups’ or individuals’ participation in education. This includes targeted interventions, specialist support services, funding and other resources to assist students to participate in education in meaningful ways; and delivery of timely and relevant policy advice to the Minister of Education.
Output 6.1: Development and Evaluation of Student Intervention Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
Output 6.2: Targeted Student Participation Interventions
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The following allowances and bursaries will be administered:
- boarding allowances and bursaries
- home schooling allowances
- Mapihi Pounamu.
|
100%
|
|
The following resources will be provided to students from non-English speaking backgrounds:
- English Language Learning Framework Professional Development programme
- English Language Intensive Programme
- DVD series
- selection series
- CD Rom series.
|
100%
|
|
Quality
|
Allowances and bursaries will be:
- awarded in line with government policies and published criteria
- calculated accurately
- paid to the correct payee
- paid within the timeframes notified.
|
98%
|
|
Sector and academic feedback on services for students from non-English speaking backgrounds will be sought and addressed (where appropriate).
|
100%
|
|
Timeliness
|
Services for students from non-English speaking backgrounds will be provided as per specially agreed timelines.
|
100%
|
Output 6.3: Special Needs Interventions
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Number of Communication Services students.
|
5,500 – 7,000
|
|
Number of Behavioural Services students.
|
8,000 – 10,000
|
|
Number of Behavioural Services workshops.
|
550 – 650
|
|
Number of Early Intervention Services students.
|
11,000 – 13,000
|
|
Number of verified students on the Ongoing and Reviewable Resourcing Schemes (ORRS).
|
6,800
|
|
Number of ministry-provided ORRS students.
|
3,500 – 4,500
|
|
Number of specialist service provider ORRS students.
|
2,500 – 3,500
|
|
Quality
|
Percentage of Communication Services clients who have received over 10 hours of service during the year surveyed.
|
10%
|
|
Percentage of Behavioural Services client surveys taken at closure.
|
100%
|
|
Percentage of Behavioural Services client groups surveyed.
|
10%
|
|
Percentage of Early Intervention Services client surveys taken at the end of the provision.
|
100%
|
|
Percentage of total Early Intervention Services client groups surveyed.
|
10%
|
|
Percentage of ORRS client surveys taken at the end of the provision.
|
100%
|
|
Percentage of total ORRS client groups surveyed.
|
10%
|
|
Timeliness
|
Communication Services delivered to individually agreed timelines.
|
100%
|
|
Behavioural Services delivered to individually agreed timelines.
|
100%
|
|
Early Intervention Services delivered to individually agreed timelines.
|
100%
|
|
ORRS services delivered to individually agreed timelines.
Payments to providers occurring according to schedule.
|
100%
100%
|
Cost
This output will be provided with the appropriated sum of $192.496m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
192,496
|
192,496
|
187,759
|
4,737
|
–
|
Output Expense 7: Strategic Leadership in the Tertiary System
Portfolio Minister: Minister for Tertiary Education
This output expense delivers policies and services focused on the ministry’s leadership role in the tertiary education system. This includes coordination with other sector and government agencies and forums to achieve shared goals; undertaking research and analysis; developing strategic policy related to tertiary and international education; monitoring the performance and capacity of the tertiary system; providing information on tertiary and international education services; representing the education sector internationally; supporting international students in New Zealand; supporting the development of the international education industry; and providing ministerial support to assist the Minister for Tertiary Education and Associate Minister to meet their obligations to Parliament.
Output 7.1: Cross-tertiary Agency Coordination
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The sector leadership group (chief executives of the Ministry of Education, Tertiary Education Commission and New Zealand Qualifications Authority) has the overall responsibility for this output. They will meet as frequently as required.
|
100%
|
|
Quality
|
Every meeting will have:
- an agenda
- minutes
- assigned action items.
|
100%
|
|
Timeliness
|
The meetings will occur with a frequency aligned with the specific workloads of this group.
|
100%
|
Output 7.2: Tertiary and International Research and Analysis
Performance Dimensions
Dimension
|
Measure
|
Metric
|
|
Quantity
|
The Profile and Trends Report, the Student Loans Annual Report, and the Achievement of the goals of the Tertiary Education Strategy report will be published.
|
100%
|
|
Supporting analytical reports.
|
> 10
|
|
The statistics on the tertiary sector will be produced annually.
|
100%
|
|
A report on the national survey of international students will be published.
|
100%
|
|
Quality
|
Every report will adhere to the established process of active feedback in every instance.
|
100%
|
|
Timeliness
|
The Student Loans Annual Report will adhere to the Public Finance Act 1989 timeliness statements.
The Profile and Trends report will be published annually. Other reports will be published to specific, mutually agreed deadlines.
|
100%
|
Output 7.3: Monitoring the Tertiary System
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity, quality & timeliness
|
The analysis and trends will be monitored for exception cases throughout the data collection period.
|
100%
|
Output 7.4: Development and Evaluation of Tertiary and International Policy
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Policy will be delivered according to the work programme (and any subsequent amendments) negotiated between the Minister of Education and the Secretary for Education.
|
100%
|
|
Advice will be provided as required by the Minister.
|
100%
|
|
Quality
|
Percentage of policy that meets the ministry’s quality criteria as described in the ministry’s ‘Guide to Excellent Policy Advice’.
|
100%
|
|
Advice to the Minister will meet the Minister’s office guidelines for delivery.
|
100%
|
|
Timeliness
|
Percentage of policy provided within the agreed timeframes.
|
100%
|
|
Responses to the Minister will occur in line with the delivery timelines agreed with the Minister’s office.
|
100%
|
Output 7.5: Provision of Tertiary and Other Information
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity, quality & timeliness
|
Information will be delivered in accordance with documented terms of reference/specifications for each publication, campaign, seminar, or other form of information. Information will be provided as follows:
- one report on the tertiary education sector
- one report on the Student Loans Scheme
- one report on the achievement of goals in the Tertiary Education Strategy
- further portal development to provide quality information to identified audiences
- ICT coordination and support services to education agencies
- publication of strategies, research and other reports as developed, in support of the Tertiary Education Strategy, Tertiary Information Strategy, International Strategy and the Tertiary E-Learning Strategy, and adult foundation learning (literacy, numeracy and language).
|
100%
|
Output 7.6: Support for International Education
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Network of seven education counsellors deployed, as specified in International Education Agenda, and joint working group meetings held as specified in bilateral agreements.
|
100%
|
|
Number of international students requiring pastoral care annually.
|
80,000 – 100,000
|
|
International education will be developed according to the contract set out with Education New Zealand.
|
100%
|
|
Quality
|
Stakeholder satisfaction as represented by consultation with the Minister, other government agencies and sector bodies.
|
100%
|
|
Pastoral care will be administered to the standards set out in the ministry’s ‘Code of Practice for the Pastoral Care of International Students’.
|
100%
|
|
The Education New Zealand contract for the delivery of Levy and Crown-funded industry development work programme quarterly milestones will be examined in every instance, and monthly meetings will be held with Education New Zealand.
|
100%
|
|
The Export Education Levy Annual Report will be delivered to the timelines specified by the Export Education Levy Steering Group.
|
100%
|
Output 7.7: Support for the Tertiary Minister
Performance Dimensions
|
Dimension
|
Measure
|
Metric
|
|
Quantity
|
Ministerial services will be provided in the following ranges:
|
|
|
|
- parliamentary questions and petitions
|
225 – 295
|
|
|
|
30 – 35
|
|
|
- general ministerial correspondence.
|
1,725 – 2,070
|
|
Quality
|
The content of all ministerial services provided will be factually accurate and appropriate in style and content for the individual Minister consistent with the ministry’s ‘Ministerial Guidelines’.
|
100%
|
|
Timeliness
|
All responses and provision of information to the Minister for Tertiary Education and Parliament, and its committees, will be prepared to the following timelines, or as otherwise specifically agreed:
- parliamentary questions – in accordance with parliamentary Standing Orders
- Select Committee examinations and inquiries – as specifically agreed
- statutory information – as required in legislation
- general ministerial correspondence – within 20 working days.
|
100%
|
Cost
This output will be provided with the appropriated sum of $24.483m.
|
Year
|
Cost
($000)
|
Total
($000)
|
Crown
($000)
|
Other
($000)
|
Surplus
($000)
|
|
2007/08
|
24,483
|
24,483
|
24,483
|
–
|
–
|