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Presentation title

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CYCLICAL MAINTENANCE 201: PLANNING WITH THE WINDS OF CHANGE

Planning effective upkeep for school facilities over time

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WORKSHOP FOCUS

Workshop Focus

This workshop focuses on practical cyclical maintenance preparation, and how to account for it.

Target Audience

Designed for School Business Manager’s.

Integrated Maintenance Planning

Cyclical maintenance is part of school property planning, influenced by building age, condition, roll trends, and future works.

Alignment with Education Guidance

Content aligns with Ministry of Education guidance and audit expectations to ensure sector consistency.

�This opening slide frames the purpose of the one-hour workshop and sets expectations for participants. The workshop is designed for New Zealand secondary school principals, executive officers, property managers, caretakers, and board property committee members who have responsibilities under the Property Occupancy Document. It explains that the focus is on practical preparation of cyclical maintenance programmes rather than detailed accounting instruction. The introduction emphasises that cyclical maintenance is not a standalone compliance task but an integrated part of school property planning. Participants are encouraged to think about their own school context, including building age, condition, roll trends, and known future works, as these will influence how cyclical maintenance should be planned and sequenced. The facilitator also outlines that the workshop content aligns with Ministry of Education guidance and audit expectations, providing confidence that the approaches discussed are sector-consistent and defensible.

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LEARNING OUTCOMES FOR PARTICIPANTS

Maintenance Types Understanding

Participants will distinguish between routine maintenance, cyclical maintenance, 5YA capital works, and redevelopment projects clearly.

Integration with Property Planning

Learn how cyclical maintenance fits within the 10 Year Property Plan and supports budgeting and asset management.

Practical Scheduling Skills

Develop skills to prepare or review costed cyclical maintenance schedules and coordinate with 5YA and redevelopment programs.

Provision Liability and cash-flow planning

Understand how the cyclical maintenance provision records the school’s estimated future maintenance obligation, and how a separate cash-flow plan ensures the school has enough money available when the scheduled work is due.

Improved Decision-Making

Understanding outcomes enables better board decisions and strengthens audit readiness by avoiding common pitfalls.

�This slide outlines the specific capabilities participants should gain by the end of the workshop. It explains that attendees will be able to distinguish clearly between routine maintenance, cyclical maintenance, 5YA capital works, and redevelopment projects. It highlights that participants will learn how cyclical maintenance fits within the 10 Year Property Plan and how it supports both annual budgeting and long-term asset management. The outcomes stress practical skills, such as preparing or reviewing a costed cyclical maintenance schedule, coordinating timing with 5YA and redevelopment programmes, and avoiding common pitfalls such as double-counting or undertaking abortive work. The slide also reinforces that understanding these outcomes supports better board decision-making and strengthens audit readiness.

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WHY CYCLICAL MAINTENANCE MATTERS

Role of School Boards

School boards are responsible for maintaining property with a structured cyclical maintenance plan.

Cyclical Maintenance Defined

Cyclical maintenance involves significant upkeep like exterior painting every 7 to 10 years.

Financial Planning and Reporting

Schools must estimate annual cyclical maintenance costs for financial and audit reporting.

Importance of 10 Year Property Plan

The 10YPP integrates maintenance, modernisation, and capital works and is essential for funding.

�---�This slide references information from the following file: https://www.education.govt.nz/education-professionals/schools-year-0-13/property/planning-property-maintenance,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/5-year-agreement-funding,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/overview-10-year-property-plan��This slide explains the Ministry of Education context that underpins cyclical maintenance planning. It outlines that school boards are responsible for maintaining school property and are expected to follow a structured maintenance plan. Cyclical maintenance is described as significant maintenance carried out on a planned cycle, with exterior painting used as a common example typically undertaken every seven to ten years. The slide also explains that schools must estimate cyclical maintenance costs annually for financial reporting and audit purposes. It highlights the importance of the 10 Year Property Plan as the primary planning document that integrates maintenance, modernisation, and capital works. Participants are reminded that access to 5YA funding depends on having an approved 10YPP, reinforcing why cyclical maintenance planning cannot be separated from wider property planning.��

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THE PROPERTY PLANNING ECOSYSTEM

Foundational Inputs

School vision, roll data, and condition assessments provide essential input for property planning decisions.

10 Year Property Plan Integration

The 10-Year Property Plan integrates data and vision, serving as the strategic framework for capital and maintenance plans.

Parallel Funding Streams

5YA capital programme and cyclical maintenance have different funding and purposes but must be coordinated effectively.

Support for Governance

All planning activities support delivery, board decisions, budgeting, and audit compliance ensuring strategic alignment.

�---�This slide references information from the following file: https://www.education.govt.nz/education-professionals/schools-year-0-13/property/planning-property-maintenance,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/5-year-agreement-funding,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/overview-10-year-property-plan��This slide visually and conceptually shows how different elements of school property planning fit together. It starts with school vision, roll information, and condition data, which feed into the 10 Year Property Plan. From the 10YPP flow two parallel but connected streams: the 5YA capital programme and the cyclical maintenance schedule. The slide explains that while these streams have different funding sources and purposes, they must be coordinated to avoid inefficiency. It also shows that all of these planning activities ultimately support delivery, board decision-making, budgeting, and audit compliance. The key message is that the 10YPP is the integrating document that ensures consistency and strategic alignment.��

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ROUTINE MAINTENANCE, CYCLICAL MAINTENANCE, 5YA AND REDEVELOPMENT

Routine Maintenance

Routine maintenance includes daily and preventive tasks like gutter cleaning and minor repairs to keep facilities functional.

Cyclical Maintenance

Cyclical maintenance involves planned recurring work such as exterior painting and applying protective coatings on a fixed schedule.

5YA Capital Work

Five-yearly capital work includes upgrades and modernisation like roof or heating system replacements to substantially improve assets.

Redevelopment

Redevelopment involves major rebuilds or refurbishments led by the Ministry, that shape the future use of buildings and sites.

�This slide introduces the concept of the four buckets of school property work. It explains routine maintenance as day-to-day and preventative tasks such as gutter cleaning and minor repairs. Cyclical maintenance is presented as significant recurring work carried out on a planned cycle, such as exterior painting and protective coatings. The slide then distinguishes 5YA capital work as upgrades, replacements, and modernisation that substantially improve or replace assets, such as roof or heating system replacements. Finally, redevelopment is described as major rebuilds or substantial refurbishments, often Ministry-led, that determine the future of buildings and sites. Clear decision tests are provided to help participants categorise work correctly, which is critical for sound planning and funding decisions.

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DRIVERS OF AN EFFECTIVE CYCLICAL MAINTENANCE PROGRAMME

Schedule Based on Condition and History

Effective maintenance schedules rely on current condition data, building age, materials, exposure, and historical maintenance records.

Incorporate Caretaker and Contract Knowledge

Including caretaker insights, existing maintenance contracts, and known defects ensures practical and comprehensive planning.

Consider Strategic Projects and Priorities

Schedules must factor in 10YPP priorities, planned 5YA projects, and potential redevelopment or rationalisation activities.

Dynamic Living Planning Tool

A quality schedule documents decisions clearly and serves as an evolving tool, supporting board assurance and audit scrutiny.

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MINIMUM INFORMATION TO RECORD IN THE SCHEDULE

Essential Schedule Fields

Include building name, condition of building, maintenance elements, last completed dates, cycle assumptions, work years, and cost estimates.

Linking to Projects and Planning

Record connections to 5YA projects and redevelopment plans for comprehensive maintenance management.

Decision Notes Importance

Clearly document decisions on work inclusion, deferral, or holding maintenance for transparency.

Benefits of Clear Records

Well-recorded schedules support financial planning, board understanding, and auditor confidence effectively.

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5YA AND REDEVELOPMENT�KEY COORDINATION RULES

Assess Future Building Use

Consider if the building will remain or be redeveloped, using holding maintenance when future use is uncertain.

Coordinate Maintenance Works

Identify overlapping maintenance tasks on building elements and sequence work to avoid duplication and rework.

Separate Maintenance and Capital Work

Clearly distinguish maintenance from capital projects to ensure proper funding and accounting procedures.

Impact of Coordination Quality

Good coordination preserves asset value and supports strategy, while poor coordination wastes expenditure.

�---�This slide references information from the following file: https://www.education.govt.nz/education-professionals/schools-year-0-13/property/planning-property-maintenance,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/5-year-agreement-funding��This slide explains three core rules for coordinating cyclical maintenance with capital and redevelopment planning. First, schools should consider whether a building is likely to remain or be redeveloped, using holding maintenance where future use is uncertain. Second, they should identify whether planned 5YA works will affect the same building elements, such as roof edges, cladding, or services, and sequence maintenance to avoid rework. Third, they must distinguish clearly between maintenance and capital work to ensure correct funding and accounting treatment. Practical examples are used to show how poor coordination can lead to wasted expenditure and how good coordination preserves asset value while supporting long-term strategy.��

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WORKED SEQUENCING

Theoretical vs Practical Scheduling

Theoretical repainting before roof works leads to abortive work and inefficiency. Practical scheduling delays full repaint until after upgrades.

Holding Maintenance Actions

Washdown and minor sealing are used as holding maintenance to extend life until major works complete.

Benefits of Sequencing

Proper sequencing avoids abortive work, reduces lifecycle costs, and creates a clear audit trail.

�---�This slide references information from the following file: https://www.education.govt.nz/education-professionals/schools-year-0-13/property/planning-property-maintenance,https://www.education.govt.nz/education-professionals/schools-year-0-13/property/5-year-agreement-funding��This slide presents a worked example involving a science block with an upcoming 5YA roof and services upgrade. It explains how repainting purely based on the theoretical cycle would result in repainting before disruptive capital works. Instead, the schedule demonstrates a practical decision to undertake only washdown and minor sealing as holding maintenance, followed by a full repaint after the roof works are complete. The example shows how this approach avoids abortive work, reduces lifecycle cost, and provides a clear audit trail. Participants are encouraged to apply similar sequencing logic to their own buildings.��

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CYCLICAL MAINTENANCE SCHEDULE OVERVIEW

Maintenance Schedule Structure

Condition Report: all details of the buildings condition, alignment to Ministry projects, priority, and annual breakdown of costs.
Cyclical Maintenance Schedule (MoE CM Provision Calculator): the schedule lists buildings with last maintenance dates, cycles, proposed work years, and indicative costs.

Planning Decisions Explained

All decisions are explained showing some buildings undergo repainting, others defer work to align with 5YA projects, and some hold maintenance for redevelopment.

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YEAR-BY-YEAR PROGRAMME VIEW

Yearly Grouping of Maintenance

Maintenance tasks are grouped by year to simplify budgeting and resource planning for schools.

Managing Cash Flow and Workload

Year-by-year view helps manage cash flow and prevents peak workload clashes in maintenance activities.

Iterative Annual Review

Allows annual updates based on changing conditions, prices, and redevelopment plans for responsive maintenance.

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FINANCIAL OBLIGATION

The Obligation

The board is responsible for maintaining school property. Future cyclical works create an expected maintenance obligation.

The Provision

The provision records the estimated future cost of cyclical maintenance in the financial statements.

The Cash Flow Plan

The cash flow plan shows how the school will have money available when scheduled works become due.

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�---�This slide references information from the following file: https://ao.parliament.nz/2022/school-audits/appendix2.htm,https://ao.parliament.nz/2023/school-audits-2022/appendix.htm��This slide provides a practical checklist to support schools before finalising their cyclical maintenance schedule. It covers completeness of building coverage, accuracy of date and lifecycle assumptions, coordination with 5YA and redevelopment planning, and clarity of decision notes. It also includes governance and audit considerations, such as board review, evidence retention, and support for the annual cyclical maintenance provision calculation. The narrative explains that using this checklist helps ensure the schedule is robust, defensible, and genuinely useful for decision-making rather than merely compliant.��

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AUDIT OBLIGATION

Accurate Schedule

Auditors expect schools to have enough information to support the cyclical maintenance provision. Make sure to provide a schedule that includes building conditions, relationships with 5YA and redevelopment projects, as well as reasons for any deferrals or delayed work. Ensure your schedules have up-to-date pricing or appropriate allowance for inflation.

Supporting Documentation

The board should be able to show how the provision, 10YPP, 5YA programme, redevelopment programmes, budgets, cash flow plan and strategic planning align.

Office of the Auditor General

The OAG has highlighted the need for plans to be up-to-date, reasonable and consistent with condition assessments and planned capital works.

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�---�This slide references information from the following file: https://ao.parliament.nz/2022/school-audits/appendix2.htm,https://ao.parliament.nz/2023/school-audits-2022/appendix.htm��This slide provides a practical checklist to support schools before finalising their cyclical maintenance schedule. It covers completeness of building coverage, accuracy of date and lifecycle assumptions, coordination with 5YA and redevelopment planning, and clarity of decision notes. It also includes governance and audit considerations, such as board review, evidence retention, and support for the annual cyclical maintenance provision calculation. The narrative explains that using this checklist helps ensure the schedule is robust, defensible, and genuinely useful for decision-making rather than merely compliant.��

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AUDIT READY EVIDENCE PACK

Current cyclical maintenance schedule with building-by-building assumptions.
Ministry CM provision calculator output reconciled to the schedule.
10YPP extract showing planned maintenance, 5YA capital works and deferrals/exclusions.
Evidence for estimates: quotes, QS estimates, contractor advice, prior project costs or indexed rates.
Condition evidence: photos, inspection notes, consultant reports and caretaker defect records.
Board paper/minutes approving assumptions, the cash-flow/reserve plan and key decisions.
Notes explaining redevelopment uncertainty, nil-cost items, holding maintenance and avoided double-counting.
Long-term maintenance contracts, if applicable.

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�---�This slide references information from the following file: https://ao.parliament.nz/2022/school-audits/appendix2.htm,https://ao.parliament.nz/2023/school-audits-2022/appendix.htm��This slide provides a practical checklist to support schools before finalising their cyclical maintenance schedule. It covers completeness of building coverage, accuracy of date and lifecycle assumptions, coordination with 5YA and redevelopment planning, and clarity of decision notes. It also includes governance and audit considerations, such as board review, evidence retention, and support for the annual cyclical maintenance provision calculation. The narrative explains that using this checklist helps ensure the schedule is robust, defensible, and genuinely useful for decision-making rather than merely compliant.��

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GROUP ACTIVITY: BUILDING A MINI SCHEDULE

Case Study: The Challenges of Tui Heights High School

Background: You are the new Business Manager at Tui Heights High School (a large state secondary school). You are reviewing the school's property folders ahead of the annual audit. You discover the following facts:

The Outdated Plan: The school's 10YPP was last updated four years ago (2022). At that time, a cyclical maintenance plan was established estimating that "A Block" would cost $45,000 to repaint in 2026.
The Missing Building: Due to roll growth, a brand-new, modern 4-classroom Technology Block was constructed and opened at the start of 2024. It is not listed anywhere on the old 2022 cyclical maintenance plan.
The Contractor Quote: You recently asked a local painter for an updated estimate to paint "A Block" this year. Due to severe building material inflation and labour shortages, the quote has come back at $62,000, well above the $45,000 originally provisioned.
The 5YA Overlap: The school is currently replacing the roof on "B Block" using 5YA Capital Funding. However, on the old property spreadsheet, "B Block Roof Maintenance" is still listed as an active $12,000 liability under cyclical maintenance.

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GROUP ACTIVITY: BUILDING A MINI SCHEDULE

Group Discussion Questions:

How should you handle the old 2022 plan values in light of the new $62,000 quote?

What needs to happen with the new Technology Block? It doesn't need painting for years.

What must you do with "B Block" to ensure the school passes its impending audit?

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CHECKLIST BEFORE FINALISING A SCHEDULE

Completeness and Accuracy

Ensure all buildings are covered and dates plus lifecycle assumptions are accurate before finalising schedules.

Coordination and Planning

Coordinate with 5YA and redevelopment plans to align cyclical maintenance schedules effectively.

Governance and Audit

Include board reviews, retain evidence, and support audit requirements for maintenance provision calculations.

Decision-Making Usefulness

Use the checklist to create robust and defensible schedules that aid genuine decision-making.

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�---�This slide references information from the following file: https://ao.parliament.nz/2022/school-audits/appendix2.htm,https://ao.parliament.nz/2023/school-audits-2022/appendix.htm��This slide provides a practical checklist to support schools before finalising their cyclical maintenance schedule. It covers completeness of building coverage, accuracy of date and lifecycle assumptions, coordination with 5YA and redevelopment planning, and clarity of decision notes. It also includes governance and audit considerations, such as board review, evidence retention, and support for the annual cyclical maintenance provision calculation. The narrative explains that using this checklist helps ensure the schedule is robust, defensible, and genuinely useful for decision-making rather than merely compliant.��

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KEY TAKEAWAYS

Redevelopment Programme Focus

Redevelopment programmes shape the future direction and design of buildings, ensuring long-term improvements.

5YA Capital Funding

Five Year Asset programmes fund major capital changes critical for building upgrades and enhancements.

Cyclical Maintenance Importance

Regular cyclical maintenance preserves existing assets, preventing deterioration between major upgrades.

Securing Cash Funding

A cyclical maintenance plan is only as good as the cash backing it. Ensuring your school has targeted, unencumbered cash reserves ready when your annual maintenance intervals fall due is the final, but most critical, step in the entire process.

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