Russell Street 2019 budget DRAFT
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Issued: October 2018
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Completion and adoption of the 2019 Budget
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Changes
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These instructions are now part of the budget template. (See separate Budget Tab)
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The MOE recommends schools budget for MOE-funded salaries so this option is available below.
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After the changes introduced 2016, nearly all leases are now "Finance Leases"
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Phasing (by month) is now recommended for each code. See Note 7. below.
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Timing:
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Best practice is to start in September and have the draft complete by 31 December 2018
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You have until 31 March 2019 to make any final changes.
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Scope:
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This budget includes all BOT-controlled operating income and expenditure, funds run by the school on behalf of other groups or clusters, and BOT-funded capital expenditure.
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Apart from any BOT share, it does not include Capital projects which are MOE funded.
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The Budget Summary Page produces the:
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Operating surplus or deficit
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Cash Surplus from Operations
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Total Cash surplus for the year
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Closing Cash balance (including all reserves) as at 31/12/19
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Cash transfers for asset and cyclical maintenance to their respective reserves
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Main movements in balance sheet accounts
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Suggested Steps
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1Consult with school staff, school fundraising body and, if thought appropriate, the community.
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2Refer to the Charter and the goals and targets the school has set for improved student outcomes. Ensure the Budget reflects those plans.
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3 Prepare or update your Board-funded Capital Plan and Annual Cyclical Maintenance calculation.
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4Obtain your 2019 Initial Operations Grant funding notice (available late September from the MOE Education Portal).
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5Estimate income. See notes (c) and (d) below.
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6Complete the expenditure budget. See notes (e) to (m)
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7Against each item is a Cell containing a Drop Down Box that contains a Phasing Rule. Please note that the MOE has directed that operations grants, depreciation and cyclical maintenance now be spread monthly rather than quarterly. Please specify and particular rules required, other wise we will spread ALL items evenly across 12 months.
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Monthly evenly
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Quarterly
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Other- specify
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Winter seasonally adjusted12% in Jun, Aug , 13% Jul, 7% in all others Monthly evenly
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Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
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Sept
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Oct
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Nov
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Dec
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8Add an estimate of working capital and reserves as at 31/12/18.
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9Review. Is the result satisfactory? Have you adequate funds in working capital and reserves to achieve your plans? Make changes if necessary. Email a draft to your SSL Client Manager if assistance or a review is required.
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10Formally adopt (using motion below) the final version by the end of 2018. Attach a signed copy in the BOT Minute Book.
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11NB: Any significant amendments can be incorporated in your 2019 Budget, but must be completed, approved and emailed to SSL by 31 March 2019.
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12Formally adopt the renewal of the Principal’s authority to spend the Budget.
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13 Email to School Support your Client Manageras an attachment, a copy of the Budget
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14Recommendation: Retain all budget workings in a “2019 Budget” file for future reference.
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Please ask your Client Manager or Adviser at School Support Ltd for advice at any time.
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2019 SPECIFIC BUDGET AREAS:
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(a)GST: All budget figures must be GST exclusive (N.B. gross x 20/23 = net).
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(b)Keep Income and Expenditure separate: For example, for School Camps and School Trips, show the projected receipts in Local Funds Income and the projected expenses in Learning Resources under Extra Curricular Activities. Simply include income in the Income budget and expenditure in the Expenditure budget .
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(c)Operations Grant: Calculate Operational funding on a conservative estimated pupil roll, (1st July 2019 including new entrant adjustment for primary schools, 1st March 2019 for intermediate schools, 1st September 2019 for secondary schools).
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Use 2018 funding components as the basis unless more relevant information is available. All Ministry components are generally coded to code 1005, but ensure you separate RTLB, RTLitt, STAR and any Cluster funds that you administer.
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(d)      
Other Income: Estimate in a conservative way. If not material, don’t include in the Budget.
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(e)     
Cyclical Maintenance (Code MP): Refer to the spreadsheet Tab “Cyclical Mtce” (attached to the main budget spreadsheet) for a definition and calculation of cyclical maintenance expenditure. Ideally, obtain an updated cyclical maintenance calculation sheet from your property consultant to complete this. It should include all major painting (both exterior & interior, including swimming pools where relevant), plus all Programmed Maintenance Services painting contracts (also a tab of the budget spreadsheet).
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House painting of BOT-owned houses should be budgeted under House Expenditure (5300 series code) as should contingencies or minor repairs and maintenance items.
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Cash transfers to your cyclical maintenance reserves (of the same amount as your budgeted code MP expense), are recommended to ensure you have sufficient funds available when the time comes to paint. Change the amount on (approx.) row 65 (code MAIN) if you want us to transfer an amount different to your budgeted expense.
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(f)
Depreciation should be fully budgeted for - it is an audit / Ministry requirement. We recommend you base this on your 2018 forecast figure, increased by say 10% for 2019 board-funded asset purchases . Once we have processed your fixed asset register review adjustments, we will be able to run reports that predict your 2018 figure more accurately. Please advise if you would like this sent to you.
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Please note that even though it is a non-cash item, you cannot avoid incurring your depreciation expense as it is based on past capital expenditure. As with cyclical maintenance, change the amount on row (code DEPN), if you want us to transfer to asset reserves, a cash amount different to your budgeted depreciation expense.
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(g)MOE-Funded Salaries: The MOE recommends these be budgeted, and that actuals paid be processed monthly into your financial statements. If required by your BOT, please complete the appropriate section under Govenrment Grants.
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(h)Board-funded Support Staff and any Board-funded teachers:
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Allow for changes in staff numbers, award changes, etc, and budget from when these take effect. Caretakers, Cleaners and Grounds staff, allow for 52 weeks.

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For other staff, allow for the appropriate number of weeks, usually 40. Allow for holiday pay if not already included in the pay rate.
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The ‘Relieving Teachers’ component of your Operations Grant is to pay teachers covering for teachers away sick (medical certificate situations and special paid leave). We suggest the component (after deducting GST) be your budget, or whatever your previous experience tells you. (Relieving Teachers to cover for professional development absenteeism should be included in the budget for Professional Development under Personnel Costs). Note that Relief Teacher Reimbursements are coded as income under 1040 for Govt and 1298 for Non-Government (Universities etc).
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(i)To check the % of operations grant funding being spent on board-funded salaries, refer to the KPI tab and adjust payroll budgeted where necessary.
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(j)ACC Levies: (Code 2879 or 2515) multiply the total personnel costs in (g) by 33 cents per $100 (i.e. x 0.0033). Allow only for Board funded staff. ACC on teachers salaries is paid for by the MOE directly so need not be budgeted.
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(k) Capital Items: Schools should have a plan covering Board-funded capital expenditure over the next few years. Extract your planned 2019 expenditure from this plan and include in the 1751 to 1757 part of the spreadsheet. Include only items in excess of $500 (except for bulk purchases of classroom furniture, and electronic equipment greater than $2000 in total, all of which are capitalised,). Lower-cost items should be included in New Minor Equipment codes in Learning Resources, Administration or Property, as appropriate. Please note that capital expenditure is not an operating expense and, except for depreciation on the acquisitions, has no effect on the Operating Surplus.
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(l)        
  Bank Staffing:
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Under or overuse is based on the final figures as at 31/3/20 and will need to be estimated.
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i.  Underuse – 75% of this is refunded by the MOE – budget under Govt Grants –Banked Staffing code 1004BS.
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ii.      Overuse - budget as an expense under teachers salaries 2501BS or 2892BS.
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(m) Leases:
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The Leases tab requires that you list current and new leases, and the total abount expected to be paid in 2019.
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