Episode 33: Tips for managing school finances

There are a number of things that can trip new principals up when it comes to school funding, and this episode covers some of them. Remember you’re not expected to know everything right away – contact your Ministry of Education finance advisor if you have questions or concerns.

 

My guests are:

• Hannah Levy, Ministry of Education finance advisor – Otago/Southland
• Martyn Wetherall, principal of Laingholm School
• Mārama Stewart, former tumuaki and Ministry of Education leadership advisor
• Adrian Edwards, Ministry of Education finance advisor.

 

This podcast was produced for the Ministry of Education as part of Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals.

 

You can learn more about this topic by accessing Te Ara Tīmatanga mō ngā Tumuaki - The Beginning Pathway for Principals e-learning modules on the Education LMS: https://training.education.govt.nz

 

Show notes

Episode themes:

• Things that can trip new principals up when looking at their budgets include use of land and buildings, provisional staffing, and the Ministry contribution to learning support funding.
• You need to make sure you’re above reproach when it comes to school finances. You need to be prudent and responsible with the money because it is public money. Have very clear processes around spending and make sure there are no conflicts of interest when signing off on expenses. Use the ‘front page of the Herald’ test – could this spending be brought into question?
• Focus on the working capital, not the bank balance, because those current liabilities show the cash that's going to come out very soon.
• For most schools, most years, January is your cheapest month out of your budget, because the school's closed. And December, even though it's not a full month of school, is often the most expensive,
• It’s really important to keep an eye on the budget year round – because if you’re 70% through the year and you’ve spent 90% of the budget, you may be in strife.
• An external accountant can really add value when trying to keep track of the school finances, especially when it comes to interpreting what the numbers all mean.
• When it comes to managing your staffing entitlement, the Ministry produces a spreadsheet that lets you plan this out for the year, one that you can update each fortnight  when payroll information comes through. Request it from your finance advisor.

 

Additional information

Pourato https://applications.education.govt.nz/pourato

Funding and financials https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials

Managing staffing usage (banking staffing) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/managing-staffing-usage-banking-staffing

Day-to-day financial management including link to Financial Information for Schools Handbook (FISH) https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/day-day-financial-management#paragraph-9126

 

Questions

00:58 [Mārama/Martyn] Are there any kinds of fish hooks for new tumuaki that they should be aware of when they're looking at their funding? 

 

3:35 [Adrian] When is the operational grant paid?

8:04 [Mārama/Martyn] How do your schools keep track of your accounts?

10:59 [Mārama/Martyn] As tumuaki, how  often are you looking at your finances? And are there particular things that you're looking for at particular times of year?

12:03 [Hannah/Adrian]      If a new tumuaki came in and looked at their accounting or their software fees and thought, hey, this seems like a lot of money, I think we can save some money by doing it ourselves, what would you advise?

 

14:30 [All]      Education money is obviously public money. What are the rules around using public money and what it should be used for?

 

18:13 [All] What is your advice for new tumuaki starting in a school and trying to get their head around school finances?

21:00 [All] Is there anything to add that we haven’t covered?

 

Suggested adding to complete the explanation given in transcript.