1. Financial Management School Office Administrators’ Conference July 2014

2. Agenda  Financial advisers role  How can I help?  Useful links  Hot issues/topics  Future developments in schools annual reports  Contact details

3. Financial Adviser role  Advice & support  Training and presentations  Monitoring of annual accounts  Approval of board contributions to capital projects  Liaison with auditors and accounting service providers

4. How can I help?  Templates Banking staffing modelling spreadsheets Cash flow projection templates Budget and forecasting templates  Advice, guidance & feedback on budgets, accounting treatments etc  Training & presentations to school management and boards

5. Useful links  http://www.fundingcalc.minedu.govt.nz http://www.fundingcalc.minedu.govt.nz  http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ SchoolOperations/SchoolFinances/FinancialInformationForSchools Handbook.aspx http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ SchoolOperations/SchoolFinances/FinancialInformationForSchools Handbook.aspx  http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ PropertyToolBox.aspx http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ PropertyToolBox.aspx  http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ SchoolOperations/SchoolFinances/ModelSchoolFinancialPolicies.as px http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/ SchoolOperations/SchoolFinances/ModelSchoolFinancialPolicies.as px  http://www.minedu.govt.nz/~/media/MinEdu/Files/EducationSectors/ PrimarySecondary/SchoolOpsFinances/ModelSchFinancialPolicies/ KPScheduleofDelegations.doc http://www.minedu.govt.nz/~/media/MinEdu/Files/EducationSectors/ PrimarySecondary/SchoolOpsFinances/ModelSchFinancialPolicies/ KPScheduleofDelegations.doc

6. South Island EPA’s  Shirley Walls-Otago/Southland Shirley.walls@minedu.govt.nz Phone: 03 471 5221  Allanah Uren-Canty/Nelson/Marlborough Allanah.uren@minedu.govt.nz Phone: 03 378 7393  Trish Bennett-South Canty/Canty/West Coast Trish.bennett@minedu.govt.nz Phone: 03 378 7399

7. Hot Issues/Topics  Payments from parents of students - Circular 2013/06 http://www.minedu.govt.nz/NZEducation/EducationPo licies/Schools/PublicationsAndResources/Circulars/20 13/Circular201306.aspxhttp://www.minedu.govt.nz/NZEducation/EducationPo licies/Schools/PublicationsAndResources/Circulars/20 13/Circular201306.aspx  Ministry approval for board funded capital projects  Trusts and associated parties

8. Hot Issues/Topics  Principal Concurrence - Circular 2013/27 http://www.minedu.govt.nz/NZEducation/EducationPo licies/Schools/PublicationsAndResources/Circulars/20 13/Circular201327.aspxhttp://www.minedu.govt.nz/NZEducation/EducationPo licies/Schools/PublicationsAndResources/Circulars/20 13/Circular201327.aspx  Cyclical maintenance  Asset replacement/capital plans and depreciation

9. The Future of Annual Reporting  Decision has been made that NZ should adopt International Financial Reporting Standards (IFRS).  We are following the European Union and Australia who made the same move.  New Zealand has had sector neutral financial reporting standards for all entities (including the private sector, public sector and not for profit).

10. The Future of Annual Reporting  Accounting standards will be different depending on whether the entity is a public benefit entity (PBE) or a for-profit entity.  PBEs are entities which have a social rather than for profit objective.  Standards for for-profit entities will be based on IFRS.  Standards for PBEs will be based on International Public Sector Accounting Standards (IPSAS).

11. The Tiers TierCriteriaFinancial Reporting Requirements 1 Publicly Accountable Large (expenses> $30million)PBE Accounting Standards (PAS) 2 Not publicly accountable Expenses between $2 & $30 million PBE Accounting Standards Reduced Disclosure Regime (PAS RDR) 3 Not publicly accountable Expenses less than or equal to $2million PBE Simple Format Reporting Standard - Accrual (PASR-A) 4 Not publicly accountable, not required to file financial statements & not large PBE Simple Format Reporting Standard - Cash (PASR-C)

12. What will this mean for schools?  Effective for periods starting on or after 1 July 2014.  This would mean the 2015 annual accounts (and 2014 comparatives will be required).  Although schools could fall into tier 2 or 3 the Ministry is considering recommending that all schools will have consistent reporting requirements. This could mean all schools would be required to report using tier 2 requirements.

13. What could this mean for schools?  2015 annual accounts will require a Statement of Cash Flows including 2014 comparatives.  Changes in revenue recognition for non exchange transactions e.g. donations.  Accounting for tagged/shared funds.  Possible changes to related party disclosures.

14. What will this mean for schools?

15. Contact Details Fiona Hollingworth Senior Financial Adviser DDI: 03 378 7373 Fax: 03 378 7302 Mobile: 027 249 5043 Email: fiona.hollingworth@minedu.govt.nzfiona.hollingworth@minedu.govt.nz P O Box 2522 39 Princess Street Christchurch 8140