Vote Education. APPROPRIATION MINISTER(S): Minister of Education (M26) APPROPRIATION ADMINISTRATOR: Ministry of Education

Transcription

1 Vote Education APPROPRIATION MINISTER(S): Minister of Education (M26) APPROPRIATION ADMINISTRATOR: Ministry of Education RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 207

2 Details of Appropriations and Capital Injections Annual and Permanent Appropriations Titles and Scopes of Appropriations by Appropriation Type Departmental Output Expenses Budget Budget Budget Place-Based Initiative - Te Tai Tokerau, Northland (M26) This appropriation is limited to the delivery of services to help achieve the outcomes of the Te Tai Tokerau, Northland Place-Based Initiative and the operational support of that initiative. School Property Portfolio Management (M26) This appropriation is limited to support and advice for schools on property issues; managing and supporting the purchase and construction of new property; upgrades to existing property and disposal of surplus property; and managing teacher and caretaker housing; and other services provided by the Ministry of Education in its stewardship of the land, buildings and other facilities that comprise the State school sector property portfolio. Services to Other Agencies RDA (M26) This appropriation is limited to the provision of services by the Ministry of Education to government departments and other agencies where those services are not within the scope of another departmental output expense appropriation in Vote Education. Support and Resources for Education Providers (M26) This appropriation is limited to expenditure on policies, regulations and services focused on the governance, management and operation of education providers. Support and Resources for Parents and the Community (M26) This appropriation is limited to expenditure on support focused on increasing informed engagement by families and communities in their children's educational outcomes. 1, ,333 1,614, ,908 1,794,597 4,825 (463) 4, ,918 (1,046) 110,872 11, ,303 Departmental Output Expenses 1,744, ,599 1,924,467 Departmental Capital Expenditure Ministry of Education - Capital Expenditure PLA (M26) This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Education, as authorised by section 24(1) of the Public Finance Act ,027,714 (4,687) 1,023,027 Departmental Capital Expenditure 1,027,714 (4,687) 1,023,027 Non-Departmental Output Expenses Contribution to the Education Council of Aotearoa New Zealand (M26) This appropriation is limited to a contribution towards the Education Council of Aotearoa New Zealand carrying out its leadership and other statutory functions for the teaching profession and education. Provision of Information and Advisory Services (M26) This appropriation is limited to the provision of information and advisory services related to education policies and programmes that are the responsibility of Careers New Zealand or the New Zealand Qualifications Authority, support by those two agencies to Ministers to discharge their portfolio responsibilities (other than policy decision-making), and services and support provided by other education sector bodies to raise student achievement and improve governance and capacity of providers. 14, ,042 23,175 (12,232) 10, THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

3 Titles and Scopes of Appropriations by Appropriation Type Budget Budget Budget Qualifications Support Structures (M26) This appropriation is limited to the New Zealand Qualifications Authority overseeing the setting of standards and New Zealand qualifications. It also includes standard-setting and qualifications development responsibility, recognition and review of qualifications, records management processes to support the New Zealand Qualifications Framework, and participation in the promotion of the New Zealand qualifications system to key education and immigration partner countries. Quality Assurance (M26) This appropriation is limited to the provision by the New Zealand Qualifications Authority of quality assurance services to support the New Zealand qualifications system that include ongoing development and management of quality assurance processes, monitoring and managing providers at risk and the ongoing refinement and maintenance of the quality assurance framework. School Managed Network Funding (M26) This appropriation is limited to supporting schools' purchase of a core package of managed network services from the provider of the managed network service. School Transport (M26) Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable. Secondary School Assessments (M26) This appropriation is limited to the New Zealand Qualifications Authority overseeing assessment for national secondary school qualifications, including the National Certificate of Educational Achievement and Scholarship examinations, and the moderation of internal and external school assessments. Secondary-Tertiary Interface (M26) This appropriation is limited to delivery of programmes of learning at the secondary-tertiary interface, including programmes offered in partnership by schools and tertiary education organisations. Supporting Parenting (M26) This appropriation is limited to purchasing delivery of specific programmes and providing advice and support that enhances the role of parents/caregivers in the development of their children and promotes the value of quality education experiences. 6,329 (280) 6,049 5, ,359 28,750 1,700 30, ,450 3, ,450 26, ,760 74,512-74,512 9,329-9,329 Non-Departmental Output Expenses 383,368 (6,474) 376,894 Benefits or Related Expenses Boarding Allowances (M26) This appropriation is limited to an annual allowance to subsidise boarding fees, travel costs and additional tutoring, counselling and related costs for students who face significant challenges accessing appropriate education that will assist them to achieve NCEA level 2 or equivalent. Home Schooling Allowances (M26) Provides an allowance payable to parents/caregivers of children in full-time correspondence programmes for primary and secondary education and to parents/caregivers of children receiving their primary and secondary education at home (where a certificate of exemption from enrolment has been approved under section 21 of the Education Act 1989). 11,319 (2,000) 9,319 5, ,028 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 209

4 Titles and Scopes of Appropriations by Appropriation Type Budget Budget Budget National Study Awards (M26) Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards. Puawaitanga Scholarships (M26) This appropriation is limited to providing an annual scholarship for high-potential priority secondary students, who demonstrate leadership potential, to attend one of the selected Māori boarding schools. Scholarships for Students to Attend Private Schools (M26) Assistance to students from low-income families to attend private secondary schools. Teacher Trainee Scholarships (M26) Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers. United World Scholarships (M26) Scholarships for attendance at United World Colleges. 19,543 (2,560) 16,983 1,152-1,152 4,126 (300) 3,826 1, , Benefits or Related Expenses 42,750 (3,400) 39,350 Non-Departmental Other Expenses Early Childhood Education (M26) Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds. Impairment of Debts and Assets and Debt Write-Offs (M26) This appropriation is limited to bad debt write-offs for Crown debt and to impairment of Crown debt or other assets arising from objective evidence of one or more loss events that occurred after the initial recognition of the Crown debt or asset, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the debt or other asset. Integrated Schools Property (M26) Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included. Interest Subsidy for Schools (M26) Provides a subsidy on interest payments for borrowing by private and State integrated schools for approved property-related projects. Administration costs are also included. Primary Education (M26) This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 0 to 8. Remission of Fees (M26) Payment to the New Zealand Qualifications Authority for student examination fees remitted in cases of hardship. Schooling Improvement (M26) School support and schooling improvement projects to improve the capability of schools and school clusters and their responsiveness to the needs of their communities. These include iwistrengthening education projects. 1,845,947 23,501 1,869,448-1,500 1,500 65,055 6,146 71, (60) 60 3,210,181 (13,199) 3,196,982 1,288-1,288 5,853-5, THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

5 Titles and Scopes of Appropriations by Appropriation Type Budget Budget Budget Secondary Education (M26) This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 9 to 13. Support for Early Childhood Education Providers (M26) This appropriation is limited to assisting early childhood education services and other bodies corporate in the provision of child places for early childhood education. Priority will be given to providers in communities that have low levels of participation in early childhood education, to increase the number of child places and therefore availability of early childhood education. The criteria and selection process for each type of assistance are published by the Ministry of Education. UNESCO (M26) Annual membership contribution to United Nations Educational, Scientific and Cultural Organisation's international administration, and a programme of activities of the National Commission, including participation in regional and international activities. 2,251,377 (4,320) 2,247,057 15,526 (3,700) 11,826 2,083-2,083 Non-Departmental Other Expenses 7,397,430 9,868 7,407,298 Non-Departmental Capital Expenditure School Support Project (M26) Capital costs of implementing approved school support and schooling improvement projects (other than costs related to school property assets). Schools Furniture and Equipment (M26) Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved. 1,880-1,880 31,573 5,005 36,578 Non-Departmental Capital Expenditure 33,453 5,005 38,458 Multi-Category Expenses and Capital Expenditure Improved Quality Teaching and Learning MCA (M26) The overarching purpose of this appropriation is to improve the quality of teaching and learning for children and young people aged 0-18 years. 226,187 13, ,863 Departmental Output Expenses Support and Resources for Teachers This category is limited to expenditure on policies and services focused on supporting the work and enhancing the capability of teachers. 80,627 5,233 85,860 Non-Departmental Output Expenses Curriculum Support This category is limited to the purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities Professional Development and Support This category is limited to the delivery of professional development and advisory support to early childhood education services and schools to support effective teaching and enhance selfmanagement. 54,213 2,776 56,989 91,347 5,667 97,014 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 211

6 Titles and Scopes of Appropriations by Appropriation Type Outcomes for Target Student Groups MCA (M26) The overarching purpose of this appropriation is to improve outcomes for targeted student groups. Departmental Output Expenses Interventions for Target Student Groups This category is limited to expenditure on policies and services focused on targeted student groups or individuals' participation in education. Non-Departmental Output Expenses Service Academies This category is limited to providing military-focused programmes for disengaged or disengaging senior students in secondary schools. Students Attendance and Engagement This category is limited to providing services to support increased attendance for non-attending students. Non-Departmental Other Expenses Learning Support This category is limited to providing additional resources to enable students with additional learning needs to participate in education. Oversight of the Education System MCA (M26) The overarching purpose of this appropriation is to provide policy advice, research, monitoring and related services that enable Ministers to discharge their responsibilities for a well-functioning education system (excluding tertiary education). Departmental Output Expenses Ministerial Services This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities. Monitoring the Education System This category is limited to the monitoring and reporting on education at a system-wide level to support Ministers in discharging their responsibilities for education related matters. Policy Advice This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on education related matters. Research and Analysis This category is limited to the production and dissemination of research and data analysis to support the work of other agencies and Ministers in discharging their responsibilities for education related matters. Non-Departmental Output Expenses Education Research Initiatives This category is limited to the purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices. Independent Advice on Government Priority Areas This category is limited to the provision, independently of the Ministry of Education, of advice (including second opinion advice and contributions to policy advice led by other agencies, advice on operational matters and expert review service advice) to support decision-making by Ministers on government priority areas. Budget Budget Budget 690,049 22, , ,744 10, ,961 3,640-3,640 9,676-9, ,989 12, ,039 62,599 9,283 71,882 5,773-5,773 9,757 3,693 13,450 16,539 3,783 20,322 27,022 1,807 28,829 3,008-3, Multi-Category Expenses and Capital Expenditure 978,835 45,226 1,024,061 Annual and Permanent Appropriations 11,608, ,137 11,833, THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

7 Multi-Year Appropriations Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use Non-Departmental Output Expenses Teacher-Led Innovation fund (M26) This appropriation is limited to supporting teacher-led innovation and classroom-based research of innovative teaching practices. Commences: 01 July 2015 Expires: 30 June 2020 Original Appropriation 10,000 Adjustments to 2016/17 7,915 Adjustments for (300) Adjusted Appropriation 17,615 Actual to 2016/17 Year End 4,505 Estimated Actual for 4,000 Estimated Actual for 2018/19 4,740 Estimated Appropriation Remaining 4,370 Non-Departmental Capital Expenditure Schools Payroll Sustainability Loan (M26) This appropriation is limited to making a loan to Education Payroll Limited to undertake the Education Payroll Development Programme. Commences: 01 October 2017 Expires: 30 September 2020 Original Appropriation 13,225 Adjustments to 2016/17 - Adjustments for - Adjusted Appropriation 13,225 Actual to 2016/17 Year End - Estimated Actual for 7,783 Estimated Actual for 2018/19 5,442 Estimated Appropriation Remaining - Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts Budget Budget Budget Annual and Permanent Appropriations 11,608, ,137 11,833,555 MYA Non-Departmental Output Expenses Forecasts 4,000-4,000 MYA Non-Departmental Capital Expenditure Forecasts - 7,783 7,783 Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts 11,612, ,920 11,845,338 Capital Injection Authorisations Budget Budget Budget Ministry of Education - Capital Injection (M26) 447,640 4, ,546 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 213

8 Supporting Information Part 1 - Vote as a Whole T r e n d s i n t h e V o t e Summary of Financial Activity Appropriations Departmental Transactions Non- Departmental Transactions Transactions Output Expenses 2,132, ,599 (6,474) 173,125 2,305,361 Benefits or Related Expenses 42,750 N/A (3,400) (3,400) 39,350 Borrowing Expenses Other Expenses 7,397,430-9,868 9,868 7,407,298 Capital Expenditure 1,061,167 (4,687) 12,788 8,101 1,069,268 Intelligence and Security Department Expenses and Capital Expenditure Multi-Category Expenses and Capital Expenditure (MCA) - - N/A - - Output Expenses 560,846 24,733 8,443 33, ,022 Other Expenses 417,989-12,050 12, ,039 Capital Expenditure - N/A Appropriations 11,612, ,645 33, ,920 11,845,338 Crown Revenue and Capital Receipts Tax Revenue - N/A Non-Tax Revenue 8,205 N/A - - 8,205 Capital Receipts - N/A Crown Revenue and Capital Receipts 8,205 N/A - - 8, THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

9 Part 2 - Details of Departmental Appropriations D e p a r t m e n t a l O u t p u t E x p e n s e s Place-Based Initiative - Te Tai Tokerau, Northland (M26) This appropriation is limited to the delivery of services to help achieve the outcomes of the Te Tai Tokerau, Northland Place-Based Initiative and the operational support of that initiative. This appropriation increased by $650,000 to $2.333 million for due to a transfer from 2016/17 arising from delays in the recruitment of personnel. School Property Portfolio Management (M26) This appropriation is limited to support and advice for schools on property issues; managing and supporting the purchase and construction of new property; upgrades to existing property and disposal of surplus property; and managing teacher and caretaker housing; and other services provided by the Ministry of Education in its stewardship of the land, buildings and other facilities that comprise the State school sector property portfolio. Expenses and Revenue Appropriation 1,614, ,908 1,794,597 Revenue from the Crown 1,611, ,282 1,773,785 Revenue from Others 3,186 20,057 23,243 This appropriation increased by $ million to $1, million for due to a combination of: increased capital charge ($ million increase) and depreciation ($30 million increase) related to the upward revaluation of the school property portfolio at 30 June 2017 increased provision for rationalisation of school property ($ million increase) provision for additional costs associated with weather-tightness issues in schools ($ million increase), offset by funding from successful legal claims THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 215

10 increased provision for schools to enter into rental arrangements where building construction solutions are not available or are uneconomic ($3.500 million increase) under the Cash for Buildings funding programme transfers from 2016/17 for the development of technical guidance on the impact of the Kaikōura earthquakes ($700,000 increase), analysis of options for improving education investment decisions and services for schools ($475,000 increase) and for the continuation of the corporate transformation programme ($370,000 increase), and reduced capital charge resulting from slower-than-expected drawdown of capital injections following delays in the capital expenditure programme ($ million decrease). Services to Other Agencies RDA (M26) This appropriation is limited to the provision of services by the Ministry of Education to government departments and other agencies where those services are not within the scope of another departmental output expense appropriation in Vote Education. This appropriation decreased by $463,000 to $4.362 million due to a lower level of support services than forecast being provided to government departments and other government or education agencies for. Support and Resources for Education Providers (M26) This appropriation is limited to expenditure on policies, regulations and services focused on the governance, management and operation of education providers. Expenses and Revenue Appropriation 111,918 (1,046) 110,872 Revenue from the Crown 110,778 (1,046) 109,732 Revenue from Others 1,140-1,140 This appropriation decreased by $1.046 million to $ million for due to a combination of: transfers to 2018/19 and 2019/20 related to arising from delays in the implementation of some key policy initiatives underpinning the Education (Update) Amendment Act and slower than expected recruitment of staff with specialist audit and investigative skills to monitor the increasingly sophisticated early childhood education sector ($2.395 million decrease) 216 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

11 net transfers from 2016/17 to and from to 2018/19 for the Education Resourcing Programme after revising the timeframe for completing the programme ($700,000 decrease) additional funding to address current pressures on teacher supply ($1 million increase), and transfers from 2016/17 arising from delays in the detailed investigation work on the Holidays Act ($800,000 increase) and the operating model review work that will now occur in ($249,000 increase). Support and Resources for Parents and the Community (M26) This appropriation is limited to expenditure on support focused on increasing informed engagement by families and communities in their children's educational outcomes. Expenses and Revenue Appropriation 11, ,303 Revenue from the Crown 11, ,293 Revenue from Others This appropriation increased by $550,000 to $ million for due to a transfer from 2016/17 for continuation of the corporate transformation programme D e p a r t m e n t a l C a p i t a l E x p e n d i t u r e a n d C a p i t a l I n j e c t i o n s Ministry of Education - Capital Expenditure PLA (M26) This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Education, as authorised by section 24(1) of the Public Finance Act Capital Expenditure Forests/Agricultural Land 50,060 13,468 63,528 Property, Plant and Equipment 948,126 (18,464) 929,662 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 217

12 Intangibles 29, ,837 Other Appropriation 1,027,714 (4,687) 1,023,027 How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Percentage of State school buildings with a property condition of '3' or better, as an indicator of the condition of the school property portfolio (see Note 1). Percentage of State school buildings with a maintenance index of '3' or better as an indicator of the relative maintenance requirements for buildings in the school property portfolio (see Note 1). 85% Discontinued measure - Replacement measure 85% 85% Note 1 - The maintenance index is based on a nationwide physical inspection of school buildings. It is the ratio of each building's forward 10-year cost for maintaining the building to current standards relative to its replacement cost. The higher the ratio, the greater the degree of maintenance required. All other things being equal, a building with a higher ratio will tend to indicate poorer condition than a building with a lower ratio. This measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways. For reporting purposes, building indices are shown on a scale from 1 to 5 (1 being the highest rating), defined as follows: 1 is an index of less than 5%, 2 is 5-10%, 3 is 10-20%, 4 is 20-30% and 5 is over 30%. This appropriation decreased by $4.687 million to $1, million due to a combination of: delays in construction of new schools, roll growth classrooms and school redevelopments primarily due to capacity constraints within the construction industry ($ million decrease) earlier than anticipated construction of the five schools under the Third Public Private Partnership ($ million increase) escalating land costs and a move to earlier land acquisition to improve preparation and planning for new school construction, especially to support the Auckland Education Growth Plan ($ million increase) additional spend on the Christchurch Schools Rebuild Programme and maintenance of existing school property portfolio ($ million increase) increased expenditure on the Ministry's fixed asset renewal and replacement programme to support the delivery of existing services ($2.222 million increase), and 218 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

13 increased investment in Information and Communications Technology including ongoing development of Education Resourcing System to determine funding for early childhood education, school operational grants, staffing entitlement, and learning support ($309,000 increase). Capital Injections and Movements in Departmental Net Assets Ministry of Education Details of Net Asset Schedule Main Projections Projections Explanation of Projected Movements in Opening Balance 15,098,615 17,461,621 opening balance reflects the audited results as at 30 June Capital Injections 447, ,546 The $4.906 million increase in injections is due to a combination of: a transfer from 2016/17 for continuation of the Christchurch Schools Rebuild programme ($ million increase), revision to funding profile for schools procured through the Third Public Private Partnership ($3.900 million increase), transfer from 2016/17 for development of the Education Resourcing System ($1 million increase), and delays in the school property capital works expansion programme covering new schools, roll growth classrooms and additional non-teaching space ($ million decrease). Capital Withdrawals (31,511) (38,511) The $7 million increase in withdrawals is due to transfers to nondepartmental capital expenditure appropriation Schools Furniture and Equipment for the Christchurch Schools Rebuild programme ($3 million) and Wireless School Network Upgrade project ($500,000) and departmental output expense appropriation School Property Portfolio Management for the Cash for Buildings funding programme ($3.500 million). Surplus to be Retained (Deficit Incurred) (564) (7,228) The $6.664 million increase in net deficit is due to a remeasurement of net unrealised loss on interest rate swap derivatives with the New Zealand Debt Management Office ($9.095 million deficit) partly offset by retention of third party contributions to the development of particular school building assets ($2.431 million surplus). Other Movements - - Closing Balance 15,514,180 17,868,428 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 219

14 Part 3 - Details of Non-Departmental Appropriations N o n - D e p a r t m e n t a l O u t p u t E x p e n s e s Contribution to the Education Council of Aotearoa New Zealand (M26) This appropriation is limited to a contribution towards the Education Council of Aotearoa New Zealand carrying out its leadership and other statutory functions for the teaching profession and education. This appropriation increased by $793,000 to $ million for due to a combination of: transfer from 2016/17 for slower than expected issue or renewal of practicing certificates for individual teachers ($1.200 million increase), and transfer to Vote Police for Police vetting services ($407,000 decrease). Provision of Information and Advisory Services (M26) This appropriation is limited to the provision of information and advisory services related to education policies and programmes that are the responsibility of Careers New Zealand or the New Zealand Qualifications Authority, support by those two agencies to Ministers to discharge their portfolio responsibilities (other than policy decision-making), and services and support provided by other education sector bodies to raise student achievement and improve governance and capacity of providers. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Number of New Zealand-based web visits to the careers.govt.nz website. Percentage of users who agree that the content on the careers.govt.nz website is relevant to their needs. Percentage of employers or employers' organisations participating in a careers initiative that agree the initiative has helped improve their connection with education organisations. Percentage of education organisations accessing career development resources and services that agree this has helped improve their careers services. 4.4 million Discontinued measure - 80% Discontinued measure - 80% Discontinued measure - 80% Discontinued measure - Note - Due to the merger of Careers New Zealand with the Tertiary Education Commission on 1 July 2017 these measures have been transferred from Vote Education to Vote Tertiary Education. 220 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

15 This appropriation decreased by $ million to $ million for due to a combination of: transfer of Careers New Zealand functions to the Tertiary Education Commission under nondepartmental output expense Administration of and Support for the Careers System in Vote Tertiary Education ($ million decrease) transfers to non-departmental output expense category Curriculum Support ($549,000 decrease) and departmental output expense category Support and Resources for Teachers ($283,000 decrease) in Quality Teaching and Learning MCA to pilot strengthened careers education through Communities of Learning, and transfer from non-departmental other expense Support for Early Childhood Education Providers to support the continued development of an online-based modern and flexible approach to external assessments for the National Certificate of Educational Achievement ($2.900 million increase). Qualifications Support Structures (M26) This appropriation is limited to the New Zealand Qualifications Authority overseeing the setting of standards and New Zealand qualifications. It also includes standard-setting and qualifications development responsibility, recognition and review of qualifications, records management processes to support the New Zealand Qualifications Framework, and participation in the promotion of the New Zealand qualifications system to key education and immigration partner countries. This appropriation decreased by $280,000 to $6.049 million for due to a transfer to nondepartmental output expense Secondary School Assessments, to maintain consistency with the New Zealand Qualification Authority's cost and revenue recognition of National Certificate of Educational Achievement fees for students in Youth Guarantee fees-free places. Quality Assurance (M26) This appropriation is limited to the provision by the New Zealand Qualifications Authority of quality assurance services to support the New Zealand qualifications system that include ongoing development and management of quality assurance processes, monitoring and managing providers at risk and the ongoing refinement and maintenance of the quality assurance framework. This appropriation increased by $265,000 to $5.359 million for due to a transfer from the nondepartmental output expense category Training for Designated Groups of the Tertiary Tuition and Training MCA in Vote Tertiary Education, to enable the New Zealand Qualifications Authority to complete its monitoring programme of undergraduate Level 7 diploma programmes. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 221

16 School Managed Network Funding (M26) This appropriation is limited to supporting schools' purchase of a core package of managed network services from the provider of the managed network service. This appropriation increased by $1.700 million to $ million for due to a transfer from 2016/17 owing to re-negotiation of a statement of works and amendments to service implementation pertaining to the Education Sector Digital Strategy. School Transport (M26) Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable. This appropriation increased by $3 million to $ million for. There is an increase in distance travelled each day due to a greater number of students with learning support needs and a trend towards these students using specialist satellite units. Secondary School Assessments (M26) This appropriation is limited to the New Zealand Qualifications Authority overseeing assessment for national secondary school qualifications, including the National Certificate of Educational Achievement and Scholarship examinations, and the moderation of internal and external school assessments. This appropriation increased by $280,000 to $ million for due to a transfer from nondepartmental output expense Qualification Support Structures to maintain consistency with the New Zealand Qualification Authority's cost and revenue recognition of funds relating to National Certificate of Educational Achievement fees for students in Youth Guarantee fees-free places. 222 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

17 Teacher-Led Innovation fund (M26) and Expenses Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use Teacher-Led Innovation fund (M26) This appropriation is limited to supporting teacher-led innovation and classroom-based research of innovative teaching practices. Commences: 01 July 2015 Expires: 30 June 2020 Original Appropriation 10,000 Adjustments to 2016/17 7,915 Adjustments for (300) Adjusted Appropriation 17,615 Actual to 2016/17 Year End 4,505 Estimated Actual for 4,000 Estimated Actual for 2018/19 4,740 Estimated Appropriation Remaining 4,370 This appropriation decreased by $300,000 to $ million due to under expenditure in N o n - D e p a r t m e n t a l B e n e f i t s o r R e l a t e d E x p e n s e s Boarding Allowances (M26) This appropriation is limited to an annual allowance to subsidise boarding fees, travel costs and additional tutoring, counselling and related costs for students who face significant challenges accessing appropriate education that will assist them to achieve NCEA level 2 or equivalent. This appropriation decreased by $2 million to $9.319 million for due to: return of underspend in the Boarding Allowances appropriation ($1.100 million), and transfer to benefit expense Home Schooling Allowances to manage additional allowances for home schooling ($900,000). Home Schooling Allowances (M26) Provides an allowance payable to parents/caregivers of children in full-time correspondence programmes for primary and secondary education and to parents/caregivers of children receiving their primary and secondary education at home (where a certificate of exemption from enrolment has been approved under section 21 of the Education Act 1989). This appropriation increased by $900,000 to $6.028 million for due to a transfer from benefit expense Boarding Allowances to manage additional allowances for home schooling. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 223

18 National Study Awards (M26) Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards. This appropriation decreased by $2.560 million to $ million for due to: transfer to departmental output expense Support and Resources for Education Providers and nondepartmental other expenses Primary Education and Secondary Education to address current pressures on teacher supply ($2 million), and transfer to benefit expense Teacher Trainee Scholarships to manage additional tuition and student service fee payments and increased uptake of voluntary bonding ($560,000). Scholarships for Students to Attend Private Schools (M26) Assistance to students from low-income families to attend private secondary schools. This appropriation decreased by $300,000 to $3.826 million for due to savings identified for Aspire Scholarships to attend private schools. Teacher Trainee Scholarships (M26) Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers. This appropriation increased by $560,000 to $1.992 million for due to a transfer from benefit expense National Study Awards to manage additional tuition and student service fee payments and the increased uptake of voluntary bonding N o n - D e p a r t m e n t a l O t h e r E x p e n s e s Early Childhood Education (M26) Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds. 224 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

19 This appropriation increased by $ million to $1, million for due to a combination of: updated population projections driven by increased migration as well as changes in the mix of expenditure between service types, subsidy types and age of children ($ million increase) adjustments in equity funding due to growth in eligible hours ($4.298 million increase), and cost savings through the discontinuation of Early Childhood Education Participation Funds ($1.163 million decrease). Impairment of Debts and Assets and Debt Write-Offs (M26) This appropriation is limited to bad debt write-offs for Crown debt and to impairment of Crown debt or other assets arising from objective evidence of one or more loss events that occurred after the initial recognition of the Crown debt or asset, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the debt or other asset. Expenses Appropriation - 1,500 1,500 What is Intended to be Achieved with this Appropriation This appropriation is intended to achieve the write-off of Crown debt and recognising an impairment loss to reflect the recoverable value of Crown debt and other assets as at the end of a financial year. How Performance will be Assessed and End of Year Reporting Requirements An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for impairment of Crown debts and other assets as required or the write-off of irrecoverable debts. This appropriation of $1.500 million was created during to provide for potential impairment or write-off of historical Crown debtor balances that are assessed as unlikely to be recovered. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 225

20 Integrated Schools Property (M26) Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included. This appropriation increased by $6.146 million to $ million for due to: increased Policy One funding (for maintenance of school buildings) arising from the higher valuation of State school sector property at 30 June 2017 ($4.046 million), and transfers from 2016/17 arising from delays in the construction of stage two Takanini School ($1.900 million) and for some schools taking longer than expected to sign-off on the Wireless School Network Upgrade project where the proprietors are involved in the approval process ($200,000). Interest Subsidy for Schools (M26) Provides a subsidy on interest payments for borrowing by private and State integrated schools for approved property-related projects. Administration costs are also included. This appropriation decreased by $60,000 to $60,000 for due to cost savings in the final year of the programme. Primary Education (M26) This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 0 to 8. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Percentage of Year 1 to 8 students in English-medium achieving at or above the National in reading: all students Improve on previous year's result Māori students Improve on previous year's result Discontinued measure - Discontinued measure THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

21 Performance Measures Pasifika students. Improve on previous year's result Discontinued measure - Percentage of Year 1 to 8 students in English-medium achieving at or above the National in maths: all students Improve on previous year's result Māori students Improve on previous year's result Pasifika students. Improve on previous year's result Discontinued measure - Discontinued measure - Discontinued measure - Percentage of Year 1 to 8 students in English-medium achieving at or above the National in writing: all students Improve on previous year's result Māori students Improve on previous year's result Pasifika students. Improve on previous year's result Discontinued measure - Discontinued measure - Discontinued measure - Percentage of Year 1 to 8 students in Māori-medium at Manawa Ora and Manawa Toa in Ngā Whanaketanga Rumaki Māori: kōrero Improve on previous year's result pānui Improve on previous year's result pāngarau Improve on previous year's result tuhituhi. Improve on previous year's result Discontinued measure - Discontinued measure - Discontinued measure - Discontinued measure - Participation in primary education - The percentage of students attending school regularly (see Note 1): all students Replacement measure 70% 70% Māori students Replacement measure 70% 70% Pasifika students. Replacement measure 70% 70% Percentage of School Analysis of Variance Reports received (see Note 2). The percentage of primary schools receiving additional funding for Māori language resourcing Levels 1 and 2 (see Notes 3 and 4). The percentage of children who complete Years 1 to 8 in Māorimedium education (see Notes 4 and 5). Replacement measure 90% 90% Replacement measure Baseline year Baseline year Replacement measure Baseline year Baseline year Note 1 - Attending regularly is defined as attending at least 90% of the time. This is assessed by measuring attendance across the whole of Term 2. Note 2 - School Analysis of Variance Reports report on a school's performance compared to agreed performance goals. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 227

22 Note 3 - This measure covers State and State-integrated schools only. The Budget and Estimated Actual refers to the 2017 calendar year. Funding is allocated based on information on the level of Māori language learning which schools provide in their roll returns, subject to an annual auditing and verification process to confirm the appropriate level of funding. Note 4 - There are five levels of funding, based on hours the curriculum is taught in Te Reo Māori per week. Levels 1 and 2 are described below: Level 1 - more than 20 and up to 25 hours Level 2 - more than 12.5 and up to 20 hours. Note 5 - This measure covers State and State-integrated schools only. The Budget refers to the 2017 calendar year. The following information is an indication of expected numbers and is provided for context only. Forecast Activity Forecast Activity Forecast Activity Number of primary schools receiving additional funding for Māori language resourcing Levels 1 and 2 (see Note 1). New indicator Note 1 - This indicator covers State and State-integrated schools only and is based on the 2017 calendar year. There are five levels of funding, based on hours the curriculum is taught in Te Reo Māori per week. Levels 1 and 2 are described below: Level 1 - more than 20 and up to 25 hours Level 2 - more than 12.5 and up to 20 hours. This appropriation decreased by $ million to $3, million for due to a combination of: return of savings in Investing in Educational Success ($ million decrease) rephasing of underspend in Investing in Educational Success to non-departmental output expenses Early Childhood Education and Schooling Improvement between 2018/19 and 2020/21 to provide better support for Kāhui Ako outcomes ($6.885 million decrease) transfer to departmental output expense category Interventions for Target Students in Outcomes for Target Student Groups MCA to meet the cost of the initial investigation for pay equity claims ($1.731 million decrease) impacts of higher-than-expected national roll projections on teacher salaries and school operations grants ($ million increase) additional funding to address current pressures on teacher supply ($2.490 million increase) 228 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

23 additional funding for Partnership Schools Kura Hourua after delays in finalising agreements for Round Four and funding and contract improvements to the Partnership Schools Model ($436,000 increase), and implementation of the pilot intake of sponsored refugees under the Community Organisation Refugee Sponsorship Category ($45,000 increase). Secondary Education (M26) This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 9 to 13. This appropriation decreased by $4.320 million to $2, million for due to a combination of: return of savings in Investing in Educational Success ($ million decrease) rephasing of underspend in Investing in Educational Success to non-departmental output expenses Early Childhood Education and Schooling Improvement between 2018/19 and 2020/21 to provide better support for Kāhui Ako outcomes ($3.995 million decrease) transfer to departmental output expense category Monitoring the Education System in Oversight for the Education System MCA to fund the operating model review ($1.900 million decrease) impacts of higher-than-expected national roll projections on teacher salaries and school operations grants ($ million increase) additional funding for Partnership Schools Kura Hourua after delays in finalising agreements for Round Four, additional schools approved in Round Five and funding and contract improvements to the Partnership Schools Model ($2.182 million increase) additional funding to address current pressures on teacher supply ($450,000 increase), and implementation of the pilot intake of sponsored refugees under the Community Organisation Refugee Sponsorship Category ($89,000 increase). Support for Early Childhood Education Providers (M26) This appropriation is limited to assisting early childhood education services and other bodies corporate in the provision of child places for early childhood education. Priority will be given to providers in communities that have low levels of participation in early childhood education, to increase the number of child places and therefore availability of early childhood education. The criteria and selection process for each type of assistance are published by the Ministry of Education. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 229

24 This appropriation decreased by $3.700 million to $ million for due to: transfer to non-departmental output expense Provision of Information and Advisory Services to support the continued development of an online-based modern and flexible approach to external assessments for National Certificate of Educational Achievement ($2.900 million), and transfer to departmental output expense category Support and Resources for Teachers in Improved Quality Teaching and Learning MCA for online services to support the delivery of new curriculum content for digital technologies over two years ($800,000) N o n - D e p a r t m e n t a l C a p i t a l E x p e n d i t u r e Schools Furniture and Equipment (M26) Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Percentage of State school buildings with a property condition of '3' or better, as an indicator of the condition of the school property portfolio (see Note 1). Percentage of State school buildings with a maintenance index of '3' or better as an indicator of the relative maintenance requirements for buildings in the school property portfolio (see Note 1). 85% Discontinued measure - Replacement measure 85% 85% Note 1 - The maintenance index is based on a nationwide physical inspection of school buildings. It is the ratio of each building's forward 10-year cost for maintaining the building to current standards relative to its replacement cost. The higher the ratio, the greater the degree of maintenance required. All other things being equal, a building with a higher ratio will tend to indicate poorer condition than a building with a lower ratio. This measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways. For reporting purposes, building indices are shown on a scale from 1 to 5 (1 being the highest rating), defined as follows: 1 is an index of less than 5%, 2 is 5-10%, 3 is 10-20%, 4 is 20-30% and 5 is over 30%. This appropriation increased by $5.005 million to $ million for due to a combination of: transfers from 2016/17 arising from delays in the application for furniture and equipment grants for various schools and the completion of the Wireless School Network Upgrade Project ($3.417 million increase) 230 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7