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This section explains:
- the difference between general purpose financial statements and a special purpose financial report
- how to decide if your service should provide general purpose financial statements or a special purpose financial report
- consolidated reporting, if your service is one which is grouped into a service provider (for funding purposes), or you are a licensee of more than one service.
Financial information required
Use this to find out if your service should provide general purpose financial statements or a special purpose financial report:
- If your service is a community-based service, for example an incorporated society, a charitable trust, a registered charity, owned by a community organisation, or considered a Public Benefit Entity under XRB requirements, you must provide general purpose financial statements.
- If your service is a private service, for example a partnership, sole trader, or limited liability company, you can choose to provide either general purpose financial statements or a special purpose financial report.
Note: Where a service meets both definitions, general purpose financial reports are required.
Definitions of community-based and private services are available in the Glossary.
General purpose financial reports
A general purpose financial report should include:
- a statement of accounting policies
- a statement of financial performance (profit and loss account) that includes specific reference to the funding received from the Ministry of Education (including the ECE Funding Subsidy, 20 Hours ECE funding and ‘targeted’ funding such as Equity Funding and Targeted Funding for Disadvantage)
- a statement of financial position (balance sheet)
- a statement of movements in equity
- the notes to the financial statement should state how each type of funding has been spent (if a service has received more than one type of funding).
Services receiving the Annual Top-Up for Isolated Services (ATIS) must report this as part of their income. They do not need to report how it was spent.
Special purpose financial statements
A special purpose financial statement should include:
- a statement of accounting policies
- details of the amount of funding received from the Ministry of Education (including the ECE Funding Subsidy, 20 Hours ECE funding and ‘targeted’ funding such as Equity Funding, ATIS and Targeted Funding for Disadvantage)
- information on how the funding has been spent.
Services receiving the Annual Top-Up for Isolated Services (ATIS) must report this as part of their income. They do not need to report how it was spent.
Consolidated reports for service providers
Some reporting areas of general purpose financial statements and special purpose audit reports can be consolidated for services that are grouped into a service provider for funding purposes.
The table below outlines the reporting areas that can be consolidated and those that must be itemised (i.e. reported individually for each service).
| Reporting area | Type of service that must provide this information | Reporting requirement for service providers and licensees of more than one service |
|---|---|---|
| Statement of accounting policies | All ECE services | May be consolidated (i.e. one statement of accounting policies covering all services) |
| Statement of financial performance (profit and loss account) | All ECE services except privately owned services | Must be itemised by service |
| Statement of financial position (balance sheet) | All ECE services except privately owned services | Must be itemised by service |
| Statement of movement in equity | All ECE services except privately owned services | Must be itemised by service |
| Special purpose financial report | Privately owned ECE services only | Must be itemised by service |
| Audit report prepared by a member of the New Zealand Institute of Chartered Accountants | All ECE Services | May be consolidated (i.e. one report covering all services) |
Playcentres
Each Playcentre is required to send a copy of their audited financial statement of Receipts and Payments to the Ministry.
In addition, each Playcentre Association is required to send a copy of their audited general purpose financial statements to the Ministry.
