Paying for capital work at integrated schools

The school’s proprietor is responsible for capital work. Board funding and attendance dues may be used to pay for this work in some circumstances.

Paying for capital work at integrated schools

Proprietors are responsible for capital work at their schools. This is a requirement under the:

  • Private Schools Conditional Integration Act 1975
  • Integration Agreement.

The Ministry provides Policy One funding to the proprietor for capital maintenance and modernisation projects.

We sometimes provide Policy Two funding so that the proprietor can build new school buildings.

Proprietors cannot ask the board to pay for capital work that they are responsible for. That would mean the Crown, through funding provided to the board for maintenance and operational costs, would be:

  • paying for property owned by the proprietor, and
  • relieving them of their capital responsibilities.

Using board funding for capital work

However, the board can sometimes pay for and own capital work using its surplus operational funding. It can only do so if it can demonstrate it also has enough funding to cover all of the school’s:

  • maintenance work
  • operational costs.

The board must get permission from both the proprietor and the Ministry. For permission to be granted:

  • the building must be recorded as a board-owned asset (not the proprietor’s)
  • the board must meet any borrowing and ownership requirements in sections 67 and 69 of the Education Act 1989
  • the work must not free the proprietor of any obligation they may have for the same work under the Integration Agreement.

Using attendance dues for capital work

Proprietors can use attendance dues:

  • to bring your property up to minimum standards
  • for any other work that falls within section 36(3) of the Private Schools Conditional Integration Act 1975, such as paying mortgages over the integrated property.

Proprietors cannot use attendance dues to improve the school’s property above the standard set out in the integration agreement.

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