financial management school office administrators’ conference july 2014
TRANSCRIPT
Financial Management
School Office Administrators’ Conference
July 2014
Agenda
Financial advisers role How can I help? Useful links Hot issues/topics Future developments in schools annual reports Contact details
Financial Adviser role
Advice & supportTraining and presentationsMonitoring of annual accountsApproval of board contributions to capital
projectsLiaison with auditors and accounting service
providers
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
Useful links
http://www.fundingcalc.minedu.govt.nz http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/
SchoolOperations/SchoolFinances/FinancialInformationForSchoolsHandbook.aspx
http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/PropertyToolBox.aspx
http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/SchoolOperations/SchoolFinances/ModelSchoolFinancialPolicies.aspx
http://www.minedu.govt.nz/~/media/MinEdu/Files/EducationSectors/PrimarySecondary/SchoolOpsFinances/ModelSchFinancialPolicies/KPScheduleofDelegations.doc
South Island EPA’s
Shirley Walls-Otago/Southland• [email protected]• Phone: 03 471 5221
Allanah Uren-Canty/Nelson/Marlborough• [email protected]• Phone: 03 378 7393
Trish Bennett-South Canty/Canty/West Coast• [email protected]• Phone: 03 378 7399
Hot Issues/Topics
Payments from parents of students - Circular 2013/06• http://www.minedu.govt.nz/NZEducation/EducationPol
icies/Schools/PublicationsAndResources/Circulars/2013/Circular201306.aspx
Ministry approval for board funded capital projects
Trusts and associated parties
Hot Issues/Topics
Principal Concurrence - Circular 2013/27• http://www.minedu.govt.nz/NZEducation/EducationPol
icies/Schools/PublicationsAndResources/Circulars/2013/Circular201327.aspx
Cyclical maintenanceAsset replacement/capital plans and
depreciation
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).
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).
The Tiers
Tier Criteria Financial Reporting Requirements
1Publicly Accountable Large (expenses> $30million) PBE Accounting Standards (PAS)
2Not 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)
4Not publicly accountable, not required to file financial statements & not large
PBE Simple Format Reporting Standard - Cash (PASR-C)
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.
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.
What will this mean for schools?
Contact Details
Fiona Hollingworth
Senior Financial Adviser
DDI: 03 378 7373
Fax: 03 378 7302
Mobile: 027 249 5043
Email: [email protected]
P O Box 2522
39 Princess Street
Christchurch 8140