The Principals (Aotearoa | New Zealand)

• Episode 35: Financial reporting for schools

  In this episode, we’re continuing to talk about school budgets, and      we’re covering financial reporting and audits as well. Just a reminder that your school finance advisors are there to help – lean on them if you have questions about school finances.   My guests are: Hannah Levy, Ministry of Education finance advisor – Otago/Southland Mārama Stewart, former tumuaki and Ministry of Education leadership advisor Adrian Edwards, Ministry of Education finance advisor.   This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.   You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz   Show notes Episode themes: Don’t leave it too long to start working on your school’s budget. Don’t wait until you’ve seen all expenditure through to December. Start early. If something unexpected happens and your budget is no longer accurate, you can reforecast. In some cases additional funding may be available, talk to your finance advisor about the issue. Ensure you code spending correctly. Look for budget variances over 10%. If you start at a school and you can see the budget is in deficit, go to your finance advisor for advice. If your monthly accounts are in good order year round, not only will you have fewer (or no) surprises, but the preparation time for the annual financial statements will be shorter. It’s compulsory to follow the Kiwi Park model financial statements. You can find them on the MOE website (link below). Audits aren’t just about the figures that appear in the financial statements. They also look at the policies and procedures and how the school operates in order to produce those figures.   Additional information School annual financial statements https://www.education.govt.nz/education-professionals/schools-year-0-13/administration-and-management/school-annual-financial-statements#paragraph-5775 Funding and financials https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials   Questions   0:38 [All] How long before it's due should you start working on a school's budget?   2:43 [Hannah] What happens to a school's budget if something unexpected happens? Like, you know, the boiler explodes, or something bigger where things have to pivot on really short notice. Can you re-budget? How does that work?   4:24 [Hannah] How much flexibility is there to move money around if there's a surplus in one area, and a deficit in the other?   5:12 [Hannah] What is variance analysis?   6:41 [Hannah] Do you need the variance analysis for the end of year accounts as well to help you tell the story?   7:03 [Hannah/Adrian] What happens if a school completely blows their budget?   9:12 [Adrian] How long before they're due should the tumuaki and the board start working on the annual report that includes the annual financial statements?   11:28 [Adrian] What do the annual financial statements have to contain?   12:48 [Adrian] And the principal isn’t expected to prepare the annual financial statements, the accountant does that?   16:08 [Adrian] What kinds of things does the audit checklist include?   16:50 [Mārama] When you were a tumuaki, what would you have looked at to get your head around a school's budget when you walked in the door? Would you have used the financial statements?   18:13 [All] What advice would you give new tumuaki about this kind of financial planning and budgeting and reporting part of running a school?

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• Episode 34: Introduction to school budgets

  Today we're going to talk about school budgets, what's included in them, what's not, and what you'll need to do to prepare them.   My guests are: Hannah Levy, Ministry of Education finance advisor – Otago/Southland Mārama Stewart, former tumuaki and Ministry of Education leadership advisor Adrian Edwards, Ministry of Education finance advisor.   This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.   You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz   Show notes Episode themes: Principals need to prepare their school’s budget, and their  board signs it off. The FISH (Financial Information for Schools Handbook) has a handy annual financial table with key dates around statutory deadlines and requirements for reporting. Your budget is based on your total income, but many of the items in that total income are tagged for usage. General categories included in your budget, and what’s not included. What to think about when you’re preparing the budget.     Additional information Pourato https://applications.education.govt.nz/pourato Funding and financials https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials Day-to-day financial management including link to Financial Information for Schools Handbook (FISH) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/day-day-financial-management#paragraph-9126 Kiwi Park training model https://www.education.govt.nz/education-professionals/schools-year-0-13/administration-and-management/school-annual-financial-statements#paragraph-5782   Questions 1:06 [Hannah] Can you remind us where new tumuaki can go to understand what they need to know about school finances.   1:55 [Hannah] When it comes to a school's budget, what are a principal's responsibilities?   2:28 [Hannah] In terms of preparation of the school budget, what does a principal need to do?   3:49 [Hannah] Does Pourato have information about staffing in it as well?   4:27 [Hannah] What are financial delegations? What does that mean? 5:25 [Hannah] You touched on the FISH there, the Financial Information for Schools Handbook. In the FISH there's a basic kind of annual financial timetable. Is that something that you'd recommend a new tumuaki take a look at to make sure they're doing everything they need to be doing?    6:08 [Hannah] And that timetable also outlines some key dates around kind of statutory deadlines and requirements for reporting. What are those statutory deadlines and requirements for financial reporting?   6:56 [Adrian] What is a school budget at its      most basic level?    10:08 [Adrian] What does the budget outline, what are the general categories?   11:12 [Adrian] Is there anything that's not included in a school's budget?   12:20 [Adrian] What about fundraising and things like that, would that be included in your budget?   13:22 [Hannah] What should a tumuaki and the board be thinking about when they're preparing the school's budget?   14:38 [Mārama] When you were getting your head around the budget process in your schools, how did the budget process work?   18:12 [Mārama] And what kinds of things did you think about when you were preparing that budget, in terms of      what you prioritized and how to make that all work? 19:35 [Hannah/Adrian] Did you want to add anything about depreciation?

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• Episode 33: Tips for managing school finances

  There are a number of things that can trip new principals up when it comes to school funding, and this episode covers some of them. Remember you’re not expected to know everything right away – contact your Ministry of Education finance advisor if you have questions or concerns.   My guests are: Hannah Levy, Ministry of Education finance advisor – Otago/Southland Martyn Wetherall, principal of Laingholm School Mārama Stewart, former tumuaki and Ministry of Education leadership advisor Adrian Edwards, Ministry of Education finance advisor.   This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.   You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz   Show notes Episode themes: Things that can trip new principals up when looking at their budgets include use of land and buildings, provisional staffing, and the Ministry contribution to learning support funding. You need to make sure you’re above reproach when it comes to school finances. You need to be prudent and responsible with the money because it is public money. Have very clear processes around spending and make sure there are no conflicts of interest when signing off on expenses. Use the ‘front page of the Herald’ test – could this spending be brought into question? Focus on the working capital, not the bank balance, because those current liabilities show the cash that's going to come out very soon. For most schools, most years, January is your cheapest month out of your budget, because the school's closed. And December, even though it's not a full month of school, is often the most expensive, It’s really important to keep an eye on the budget year round – because if you’re 70% through the year and you’ve spent 90% of the budget, you may be in strife. An external accountant can really add value when trying to keep track of the school finances, especially when it comes to interpreting what the numbers all mean. When it comes to managing your staffing entitlement, the Ministry produces a spreadsheet that lets you plan this out for the year, one that you can update each fortnight  when payroll information comes through. Request it from your finance advisor.   Additional information Pourato https://applications.education.govt.nz/pourato Funding and financials https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials Managing staffing usage (banking staffing) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/managing-staffing-usage-banking-staffing Day-to-day financial management including link to Financial Information for Schools Handbook (FISH) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/day-day-financial-management#paragraph-9126   Questions 00:58 [Mārama/Martyn] Are there any kinds of fish hooks for new tumuaki that they should be aware of when they're looking at their funding?    3:35 [Adrian] When is the operational grant paid? 8:04 [Mārama/Martyn] How do your schools keep track of your accounts? 10:59 [Mārama/Martyn] As tumuaki, how  often are you looking at your finances? And are there particular things that you're looking for at particular times of year? 12:03 [Hannah/Adrian]      If a new tumuaki came in and looked at their accounting or their software fees and thought, hey, this seems like a lot of money, I think we can save some money by doing it ourselves, what would you advise?   14:30 [All]      Education money is obviously public money. What are the rules around using public money and what it should be used for?   18:13 [All] What is your advice for new tumuaki starting in a school and trying to get their head around school finances? 21:00 [All] Is there anything to add that we haven’t covered?   Suggested adding to complete the explanation given in transcript.

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• Episode 32: Introduction to school finances

  State and state-integrated school funding is made up of various components that have different eligibility rules and funding structures. Staffing for your school is based on your roll, but there are also additional allowances and staffing that you are eligible for. Being aware of what’s available to your kura is crucial for accessing the funding and staffing you are entitled to, and for making the best use of these resources.   My guests are: Hannah Levy, Ministry of Education finance advisor – Otago/Southland Martyn Wetherall, principal of Laingholm School Mārama Stewart, former tumuaki and Ministry of Education leadership advisor Adrian Edwards, Ministry of Education finance advisor - Bay of Plenty/Waiariki.   This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.   You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz   Show notes Episode themes: School budgets are based on the school’s income, which mainly comes from the Ministry of Education, and generally you want your income to match your expenditure. The main forms of funding from the Ministry are teachers’ salaries, which are paid by the Ministry, the operational funding for the running costs of the school, and learning support funding. Locally-raised funds (or school fundraising) also contributes to the school’s income. Responsibility for the school’s budget is most often delegated by the board to the principal. Ministry of Education finance advisors can advise you on all financial matters, including banking staffing. They can come and give you a finance 101 when you start - in as much detail as you like - just give them a call. When you first start at a school, speak with the person who manages (or has been managing) the school’s finances to see if your school is in surplus (income greater than expenditure), or deficit (expenditure is more than income), and to have them talk you through what you need to know. It’s important to keep an eye on the budget throughout the year. Sometimes spending will go over budget, and you’ll need to take action on that. For example, if there’s a lot of teacher sickness, you can apply for additional relief teacher funding to make sure you can cover those costs. It’s important to understand banking staffing, which is the amount of money you get for the number of teachers the Ministry says you can have. If you’re allowed 10 teachers and you hire 11, you’ll end up accumulating debt that you’ll need to pay back. You can find most of the funding information about your school in the Pourato tool (link below).   Additional information Pourato https://applications.education.govt.nz/pourato Funding and financials https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials Managing staffing usage (banking staffing) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/managing-staffing-usage-banking-staffing Day-to-day financial management including link to Financial Information for Schools Handbook (FISH) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/day-day-financial-management#paragraph-9126   Questions 1:59 [Hannah] Obviously, a school has a budget to work within. What's a school's budget based on?   2:34 [Hannah] There are different pots of money and different sources of money for different things. What are those different pots of money?   2:57 [Hannah] Who's responsible for the financial governance of a school, what do they need to do, and what kinds of things do they decide?   4:47 [Hannah] What's the key financial information that a new tumuaki going into a school needs to understand about their kura?   5:57 [Martyn] Where can a new tumuaki find information about the finances of their kura?   7:25 [Martyn] What is banking staffing?   8:21 [Adrian] Can you tell me what you do as a financial advisor, please?   11:31 [Hannah] What are the dangers if a school's finances aren't managed well?   12:48 [Martyn/Mārama] Did you have any financial experience before you became a tumuaki, and if not, how did you learn what you needed to know?    15:08 [Hannah] Can you give us a bit more detail about the different streams of funding, and what they each pay for, please?   17:55 [Adrian] What does operational funding cover exactly?   20:28 [Hannah] Can you tell me about Pourato?

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• Episode 31: Managing state school property projects

  Today we’re talking about state school property projects. All schools have to plan for maintenance and upgrades, as well as planning for new capital projects – like new or improved buildings. But who leads which projects, how are they planned for and funded, and what’s it like to be involved in or to lead a property project?   My guests are: De Thomson, Ministry of Education Infrastructure manager Otago/Southland Hugh Gully, (now retired) tumuaki of Collingwood area school Linda Tame, former tumuaki of Golden Bay high school.   This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.   You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz   Show notes Episode themes: Who leads most major school property projects. How the Ministry works with schools on major projects, including in the design phase. What to think about when involved in planning major property projects. The importance of the tumuaki or someone senior who knows about teaching and learning to be very involved in building projects, because the smallest decisions can sometimes make the biggest difference. The importance of the tumuaki understanding the scope of the project, and being able to push back when people ask for changes or for things that are out of scope. Contract variations are very costly. Initial planning conversations are key to agreeing on scope, setting expectations and making sure everyone is on the same page. Sometimes unplanned things crop up, and there’s no way to avoid variations. Work your way through those with your project person. Health and safety on site is everyone’s responsibility, and everyone needs to recognise and understand the part they have to play. Keeping a constant watch on everything on site and vehicles etc coming and going is a massive responsibility and is very time consuming, but essential. Someone needs to be the point person for the foreperson to contact with any health and safety issues. Ensure everyone knows who this person is. If asbestos is found there are clear guidelines, and the Minstry has in-house experts on this. Communicating with staff and community about asbestos being present is key so they don’t overreact. During 5YA projects a rule of thumb is that if you were to pick up your building and shake it, and something falls out, it's your furniture and equipment funding that's going to pay for those things. If it's fixed to the building and it's part of the structure of the building, then that’s paid through capital funding.   Additional information Ministry of Education property portal https://property.education.govt.nz    Questions 1:39 [De] Who leads most major school property projects and why?   2:59 [De] In terms of the delineation between the kinds of property projects managed by the Ministry and those that are led by schools, where does that line sit?   3:41 [De] How does the Ministry work with a school on those major projects?   4:34 [De] Tell me about the Ministry's responsibilities when it comes to property projects and design.   5:25 [Hugh] When it comes to thinking about what you might need in that planning of a property project, how do you go about anticipating the needs of your kura?   6:17 [Hugh/Linda] And what kinds of property projects have you been involved in?   9:54 [Hugh/Linda] Have you ever seen an initial design for something in the kura and gone back and said, actually, this isn't going to work as a learning environment. Have you ever had to intervene or make suggestions in that way?   15:59 [De] There are obviously big health and safety responsibilities that are shared by a whole lot of parties, everyone on site. Can you tell me about the responsibilities for health and safety around any property projects in a school, just in general terms.   17:49 [Linda/Hugh] What’s been your experience?   20:04 [De] What about handling hazards and things like asbestos?   22:23 [Hugh/Linda] What lessons have you learned through your involvement with school property projects?   24:31 [De] Is there an easy way for a tumuaki to see a breakdown of what the school is paying for and what the Ministry is paying for?   27:08 [All] If you were to be giving some advice to a new tumuaki coming in to a school where perhaps they're in the middle of a property project, or they are due to start one, what would your advice to them be about getting their head around what's happening or is going to happen?   30:09 [All] Is there anything you wanted to add that we haven't covered?

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