Schools annual report (annual financial statement) resources

Training module videos to support the preparation of your Kiwi Park Model statements, which complete your annual report.

Level of complianceMain audienceOther

Required

  • Boards
  • Principals and Tumuaki
  • Administrators

The Annual report contains your school's audited annual financial statements. These show how the board has used its funds to achieve its charter goals. Your annual report must be submitted to the Ministry of Education by 31 May each year. The Kiwi Park Model statements are a requirement and found at the bottom of this page.

Kiwi Park Training Modules – tips on how to use the Kiwi Park Model

Schools Annual Reporting Webinar 2020

 

Transcript for Schools Annual Reporting webinar

Tēnā koutou katoa. He mihi nui, he mihi mahana kia koutou katoa. Ko Nash Anand tōku ingoa. Kei Te Tahuhu o Tē Mātauranga au e mahi ana. Kia ora huihui mai tatou

Welcome to the 2020 school's annual reporting webinar I have two of my presenters with me Jane Rogers school sector manager from the OAG and Jodie Hickson from the Bay of Plenty, regional finance advisor. Thank you for joining us today we are doing this differently as you know because of COVID19 so instead of our workshops around the regions we're going live through a webinar and this webinar will be online for you till maybe end of March so that you have more opportunities to go and find out information that you've missed out.

So, take a seat and uh we'll I'll run you through the programme. (Starting power point presentation) We have two main sections in this webinar the objective for this session is to get some understanding and appreciation of the end-of-year process how the annual audit and the financial reporting compli-ance process works. So, the themes as you can see on your windows, important dates, I'll take you through them shortly, the kiwi park model that's online now. I hope most of you have had a look at it, and then we'll have Jane talk about the role of the Auditor General. I think you might have some ques-tions for her there, but we'll use those question time at the end if we can. Preparing for your audit, what the auditor is looking for, and some common challenge areas where Jodie will take you through some key topics that may be fishhooks for you while you're finishing your annual returns. So important dates; 31st of December that's the end of the financial year for the school as you all know after De-cember.

I think the key reports that come out are the payroll reports the error schedules and, (asks question) what's the other one? the SAAR reports. So, these will be online for you this year so keep an eye out on the payroll bulletin and the instructions that should be out mid-January for you to go in access those reports and then 31st of March. Your reports annual reports are needed to be submitted into your auditors don't leave it to the 31st of March as we say every year if you can finish your accounts before march preferably around February because I'm trying to understand what the holdups will be between January and march mainly it's the adjustments that you need to complete which are your payroll reports so if you can get your payroll reports quick smart and get your accounts done send it in prior to 31st of march be really good it just cuts down the pipeline and blockage in the pipeline for the auditors to start the audits. If our auditors start their audits early we receive our accounts on time on before the 31st of May so April and May between April May your auditor will sign all the audit-ed reports and get them back to your board to get it signed and uploaded into the portal 31st of May make sure those accounts are in by the 31st of May.

It is a legislative requirement as you can see in the Education Act section 87 you will see that section hasn't changed in the old act it's all the reporting requirements are still valid and the old act uh it'll come into force in 2023 into the new education and training act. So get your audits completed ensure that all your annual report is online if you have an internet site please upload your annual report online and I've had the few schools this year heavily redacting their annual reports I can't see any I can't see any reason why you'd redact your annual accounts except for if you have an issue maybe uh somebody gets identified or there's uh you know a way to identify a person that's on the report you may but otherwise it's a public - it's a public statement so it's open for public information so ensure that all the report goes online.

Now the kiwi park model. I have the kiwi park model it's published online I hope you've seen it I'll just bring up the landing page for the kiwi park model so you can have a quick look at it if you can see on the landing page, we have the model for 2020 you can click through those options um. There are a few other new bits of information on the website on that landing page you'll see a series of videos we have included about eight videos instructions on how to complete the kiwi park model last year some had struggles finishing off the uploading the trial balance and completing the cash flow so I think those instructional videos will be helpful for you if you do want any other further videos please get in touch with your finance advisors in your regions and we'll try and work and put some more instructions up for you. Now the financial statements must be in the form determined by the ministry you've seen the kiwi park model that is compulsory now it's been signed off by the CE so please use that model I think most of um I think 99% of people are using the kiwipark model so let's have it 100% it'd be really good.

Now what do you need to include in your annual report analysis of variance statement of kiwi sport funding your list of trustees financial statements your response statement of responsibility make sure they're signed and dated and your audit report not the management letter that's sent to the board and ensure that's signed and dated too there are a few changes into the kiwi park mod-el this year. You will see a list of changes on that landing page there's no major structural changes to the kiwi park model it's mainly more advice and guidance and obviously around covert the new in-come stream or revenue streams that have come online you'll see them on there too so have a look at those and ensure that's mapped properly into the right income stream or revenue streams. FISH, fish we are updating FISH and the way it's being presented you may see when you go online on the landing page you may see fish in a different feeling look don't be alarmed the content is the same we have just tried to tidy it up to ensure that it's easy to follow and find out information. The next itera-tion will be the changing of content we'll update content hopefully next year and the legislation up-dates the Education and Training Act is the main act now, the education act 1989 is obsolete except for the reporting uh annual reporting which is section 87. I will now hand over to Jane Rogers she will talk you through the audit process. Thank you

Jane Rogers continues to present from power point presentation: thank you Nash, that's right I'm just going to talk first um a little about the role of the office of the auditor general and your auditor then I'm just going to go through some things to think about when preparing for your audit which you might find useful. So as explained earlier legislation requires all schools to prepare an annual report which includes your financial statements section 134 of the education and training act requires those financial statements to be audited and it also states that the auditor general is the auditor of all school boards of trustees so the auditor general um operates what we call a devolved audit model and that means he appoints auditors from firms including our in-house provider at Audit New Zealand and other charter council firms throughout New Zealand to carry out the audits on his behalf. The office of the auditor general the OAG provides support and guidance to those auditors including the school auditors we also provide information to the school auditors centrally where it would be helpful for them to use for their audits and we also do some audit work centrally where it makes sense for us to do so. The appointed auditor of the Ministry of Education does some work on our behalf on the school payroll and also on the notional rents which and the school auditors then use for their audits this just helps to improve the efficiency of school audits. So, some schools have related entities such as trusts if those trusts have been assessed as a public entity and they are required to prepare financial statements and have them audited the auditor general would also be the auditor of those entities as well.

So, I'm just going to talk about the documents you will receive at the end of your audit. So, at the end of your audit process you will receive two documents the first one is the audit report, this is where we give our independent opinion on the financial statements. So, in that opinion we provide reasonable assurance to a reader that the financial statements fairly reflect the financial position and transactions of the school and that they comply with generally accepted accounting practice. In those audit reports we may also comment on other matters that we think are important to the readers of the financial statements examples of those matters are if a school if we believe a school is in financial difficulties or there are breaches of legislation or there are other matters that we think are of public inter-est. The second document you will receive is actually addressed to the board this is this is the school managed this is the management letter. So in the management letters we there are certain things we have to we are required to comment on in the management letters that's a requirement of the um standards to which we use to carry out the audits so in those letters we will explain the risk areas that we identified during your audit and what we found in those areas we will also explain our opinion so if we've issued a non-standard opinion we will explain that opinion and we will also raise other things we have found during your audit this includes any weaknesses in control and in this this case we'll raise recommendations about how you could make improvements.

So, it's important that the board considers this letter. It's useful to take it to a board meeting after it's been received so you can discuss it. It's also useful to actually respond to the auditor and tell them what you’re intending to do about those recommendations. If you decide not to do that that's fine the auditor will follow up on those recommendations as part of the next year's audit. The auditor general every year reports to the secretary for education on the results of the school audits and we also publish that on our website. So next I'm just going to go through a few um the next few slides are about getting ready for your audit. So, we all want the audits to go as smoothly as possible um so it's im-portant to put plans in place and be as prepared as you can for your audits. Obviously some-times things happen that are beyond our control and this year has been an example of that there’s been a lot of disruption to the audits caused by the um the lockdowns and the Covid-19 pan-demic. So, we just wanted to say we do appreciate everybody's efforts to get those audits done in such a difficult circumstance it has been a very tough year for everybody. So, in terms of the 2020 audits we suggest it's important to engage with your audit and auditor and your service provider if you have one early it's important to agree a timetable for your audit. That timetable should include agreeing any dates for auditor visits and also agreeing dates for deliverables. That’s both for you to deliver to the audit and or to the auditor and for them to deliver to you.

You may choose to delegate the preparation of your financial statements and your sort of the main contact during the audit to a financial service provider, which is fine, but the board is ultimately responsible for their financial statements. They are responsible for the quality of those financial statements and for them being on time. So, if you have a service provider you may also want to think about who’s going to provide what and when that's going to be provided. You probably need to think about when you need to provide information to that service provider so they can prepare the finan-cial statements in time to meet the March deadline. You also will need to think about what you might need to provide to the auditor directly even if the auditor does deal mainly with your service provider during the audit, there are specific things they will need to talk to the school directly about. This al-lows the auditor to get a good understanding of what's happened at the school, which they need to be able to do their risk assessments and it's also so they can understand your processes and systems. So, there are also specific questions that an auditor is required to ask the principal and the board and that's a requirement of the auditing standards.

So also, in preparing for your audit we suggest you ask your auditor for a list of the work papers they need for each stage of the audit. I think most auditors will probably provide this to you anyway. Collect this information together in an audit file so it's ready for them when you do your audit. So, this audit file can be a physical obviously a physical paper-based file or it can be an electronic file. Think about whether it could be advantageous to provide the auditor with read-only access to your system, particularly if you hold a lot of your documents electronically because it may be easier for them to ac-cess them that way. If you are preferring the annual financial statements yourself and you haven't got a service provider. Are you familiar with the model financial statements? It's important to understand the changes from last year. If you need any help contact your ministry financial advisor. So if you have any doubt about any of the information you need for your to prepare your financial statements, any of the requirements of the kiwi park or any of the requirements of your auditor, please speak up and contact either your ministry school finance advisor, your service provider or your auditor.

So, the next slide is just talking about the work papers and information. So, it's always important that you actually carry out a review of your financial statements before you provide them for audit. That's to make sure they actually make sense and that all the main balances and transactions can be supported by documentation and this documentation basically would form your audit file because your audit file is all the supporting information you have used to prepare your financial statements.

You should also it should also include any details of any judgments you have made such as your cyclical maintenance provision where you will have made judgments and estimates about when you'll be doing your painting and how much it might cost. So, this documentation is critical to the audit process and it can be the difference between your audit going smoothly and it being more prolonged and difficult. So on the slide we've put some key information which should be included in your audit file but this is not an exhaustive list. So you would need to provide a copy of the draft annual financial statements approved by the board, all your board minutes for the for the financial year being audited and up to the date of the audit, these need to be signed copies of the board's minute of the board minutes, you also need to provide any other minutes from any other committee such as your finance committee and your in committee minutes to the auditor. Your auditor will need a copy of the school's gen-eral ledger and trial balance you may provide this it may be easier to provide this electronically and probably most auditors would prefer it electronically. A copy of the approved annual budget and also a copy of supporting working papers for the main transactions and balances in your financial statements.
As I noted before your audit file can be electronic or it can be paper based. You should talk to your au-ditor about the way they would like to receive the information because that will probably make your audit a lot more efficient.

Talking some more about supporting working papers we’ve put some examples of supporting working papers on this slide. So they include for cash and bank balances your bank statements your bank reconciliations and also documentation for any time deposits is always useful which shows the maturity dates because that's needed for understanding whether the classification of the time deposits is cor-rect, all your payroll reports which includes your annual SAAR report your SUE report your error schedules. If you have a local payroll information that supports the um the figures that you've put in the financial statements for your local payroll. A list of debtors so the people that owe you money and also a list of creditors so the people you owe money to as at 31st December. If you have stock so you hold uniform stocks there can be often they're stationary or canteen stocks, a copy of your stock take counts that you have taken at the end of the year and the value of the stock.

Auditors will also need a copy of your fixed asset register, so a listing of all the assets you own all the assets you've purchased in the year and any you've disposed of. It's good practice to review this your fixed asset register before you finish preparing your financial statements and write off any assets that you no longer own. In terms of revenue, operational grant notices other ministry remittances any grant letters. Grant letters are very important because we need to determine whether the grants have any conditions attached to them because that affects the accounting treatment of the grants, if you code your revenue from that comes through the operations grant to a number of different ledger codes which some schools do, you will need to provide a reconciliation of that back to the figures in the financial statements so the auditor can track it from the grant notices to the financial statements. We would need copies of any new lease agreements and related lease calculations and also general ledger reconciliations for any other major items. Your auditor will, if you’ve got balances specific to your school that the auditor would need information for, they will provide that a list to you of that. As we said before this list is not exhaustive, but these are the sort of the main work papers that would probably be needed in all audits. So, talking some more about your audit just to explain what your au-ditor is actually looking for when they carry out your audit. The objective of the audit is to provide an independent view of the financial statements and to provide assurance on whether they represent a true and fair view of the school's financial position and the financial transactions undertaken by the school during the year. So, an audit aims to provide a high but a non-absolute level of assurance, so auditors do not look at everything. The concept of materiality is implicit in a financial statement au-dit, so auditors are looking for material errors or omissions. That is those errors or omissions that are of a size or nature that would affect a third party's conclusion about the matter. So auditors consider based on the knowledge of the school where there may be risks of material errors or omissions. They then gather evidence on a test basis using statistical sampling and analytical techniques to respond to those risks identified. The auditor then uses professional judgment to assess the impact of the evi-dence gathered on the audit opinion. Because we take a risk based approach generally auditors will focus on the riskier and more significant matters to make sure they've been reflected properly in your financial statements but they will also consider public sector aspects so that's things such as sensi-tive expenditure and ensuring that the school has followed policies and procedures and also complied with legislation that's relevant to finance to the financial reporting. So, talking a bit more about materi-ality um what do we mean by materiality um as we said before um audiences provide assurance that financial statements are free of material errors or mistakes or omissions. So, what does this mean, so materiality is how much in dollar terms would an error need to be for the readers of the annual accounts to change their opinion of those financial statements. So, we often get asked how much is ma-teriality. Unfortunately, I can't give you a figure because it's based on the auditor's judgment. Also, a balance or transaction can be quantitatively material, so by amount or it can be qualitatively material by nature. So, an example of this is items like related party transactions or sensitive payments. As there can be a perception with these that someone has obtained a personal benefit. So, in that case materiality would be a lot lower and we would not look at the amount we would look at the nature of the transactions.
We often also get asked do i need to make all the adjustments and auditor requests? The answer to that is no. So, at the end of the audit you will be given a list of errors and differences and adjustments to make. These will be classified as either adjusting or non-adjusting. Adjusting errors are required because they're considered to be individually or collectively material so they would impact on the reader's view of the financial statements if they weren't actually adjusted. So if these aren't adjusted the auditor will need to consider modifying the audit opinion and that’s because we would not be able to say that the financial statements are free of material errors. Whereas the non-adjusting errors are those that individually or collectively would not change the reader's opinion of the annual accounts that we do not consider them to be material. So then it is up to the board to decide whether or not they make those adjustments those adjustments. Boards will need to will be asked to confirm in their represent representation letter that they need to send to the audit at the end of the audit whether they have adjusted them or not and these will also be listed in the schools management letter.

Just one further thing just to talk about in regard to the audit is about subsequent events. When auditors sign their audit opinion they need to consider information and events up to that date of signing. So auditing standards require your audit to consider what has happened since the balance state and that's to see if anything that's happened in the new financial year would affect their opinion of the fi-nancial statements as at the 31st of December. So an event an example an event like that would be something like a significant fire happening at a school and this might require the school to spend a lot of its reserves on repairs or equipment that was maybe lost so this may affect the financial position of the school significantly and therefore that might affect our opinion um of the financial statements of the 31st of December. So another example is the subsequent event disclosure that we asked all schools that all schools are asked to include in their financial statements about the Covid-19 pandemic. So even while this didn't have a significant impact on all schools it was felt that it was important that readers knew that and where there was a significant impact it was important for the school to disclose what that would be. So to complete this section of work the auditor will ask for the following infor-mation, they will ask for sort of further copies of board minutes up to the date of the completion of their audit, they will ask for recent monthly management accounts or financial information and they will ask for any other information maybe other information if they do identify that a particular event has happened that they think might require adjustment. So these are required by the auditor before the opinion can be signed so even if you've resolved all the other matters in the audit and you've signed, and the board signed the financial statements they're happy with the financial statements this information is required by the auditor before they can sign your opinion so it's just explaining why af-ter we've completed the audit we then come back and actually ask you for more information and so that's the end of my section I'll pass over back to Nash.

Thank you Jane um I maybe didn't mention in the beginning that uh you are allowed to send in ques-tions I'm not sure if you have been sending in questions in your little chat lines we have only one question James is monitoring our questions side so when we have a theme of questions we'll start answering them at the end so keep sending your questions if you have any questions and thank you again Jane I'll get Jodie to do her section, thank you

Jodie Hickson: thank you thanks Nash. I get the fun section I get common challenge areas um and to-day we're going to start off with the budget balance sheet. So a lot of the time schools really focus on the income statement the P&L as regards to budget a budget balance sheet is just as important and why is that important is that it actually shows what it predicts what the accounts would be what they would look like at the end of the year if the statement of financial performance was actually met, the budget and the statement of financial performance. So, it can actually just help um schools make in-formed decisions um provides as I said predicts balances and if we look at an example around that um a principal and a board may wish to increase ICT resources um by taking out a loan. So, what is the im-pact of that sure we've got another asset there, but it also increases the overall debt to the school can the school afford it how will that impact financially on the school and a balance a budget balance sheet actually, just gives you a more informed decision about whether that would be a good decision to make in regard to purchasing or actually whether you get a loan out for those assets.

So, um again I just really want to focus on budget balance sheet it is an important area um it's it's something that you should actually even think about reporting on in your monthly manage-ment accounts as well. So, statement of cash flows, another interesting one why do we do a state-ment of cash flows? Well it is a statutory requirement that’s obviously a major reason to be doing it but also just to make sure that the school can um monitor and highlight it can highlight areas of cash flows in and out within a school. So, it allows the user to see what area whether it be operating activities investing activities or finance activities as to where the flows are in and out within a school. Also statement of cash shows it's actually quite an important thing to if you think about it from a manage-ment reporting perspective as well have a think about doing a cash forecast um presenting that to the board on a regular basis and actually see where you think your cash position is going to end up at the end of the year. So it's important because it allows you to review the cycles of funding and the timing of spending and also just make sure that you have funds there to meet your financial obligations and it can help you optimize any investment opportunities as well.

So in the kiwi park model there's a worksheet in there which is really helpful in helping you generate that statement of cash flows it takes all the non-cash transactions allows you to put the adjustments through and flow through to that statement of cash flows and examples and non-cash adjustments being teacher salary grant or the teacher salary expense the journal that you may do at the end of the year or on a fortnightly basis with you on overpay goes out your use of land and buildings grant depre-ciation obviously non-cash item any gain on sale of fixed assets move movement in your receivables and movement in your payables. So that worksheet in the kiwi park model is really important because it actually forms a basis for your audit file as well so you can print that out whether you have a hard copy audit file or you've got that electronically to give to your auditors shows those adjustments and verifies that statement of cash flows.

Cyclical maintenance, really just setting money aside to paint my school. So, your cyclical maintenance is part of your 10-year property plan it is a live document and should be updated and reviewed annually. It represents a real cost to the school not now but sometime in the future so every year you should be reviewing your cyclical maintenance plan and the review should include thinking about questions like have you considered the costs of painting, have they increased be it by inflation perhaps there is an increase in the cost of paint the cost of labour? So you need to think about how that could impact on your cyclical maintenance also do you have less buildings perhaps you've had some demolished during the year you may have new buildings that you now need to think about actually when do i need to put that into the painting schedule where it be in 18 years time or perhaps you had a building that was a painted under the 5YA. So you actually review the schedule you look at the fact oh i don't actually need to paint that now next year I'm going to move it out so many years so it's really important to review it to get a more accurate picture of what your cyclical maintenance provision should be and also have a think about whether you need to stagger the painting around the school for example one year you may want to paint block A in the next year block B. So, it's reviewing that calculation it's also keeping the evidence of those adjustments behind it you'll need that to give to your auditor for your audit file um and with that review that cyclical maintenance.

It's really important that you present that to your board that they have an understanding of what they're actually looking at and that it’s actually passed by the board and minuted. Again, your auditor will ask a question on it and they will want to see the board minutes around that. So, if you think well, I've got a cyclical maintenance plan oh actually I've got a painting plan I don't need to think about a cyclical maintenance plan there are actually two different things. So, a painting contract is something that's happened and you're now paying off, cyclical maintenance provision is actually looking to the future and I think this graph gives a good picture to explain this. So, for example your painting contract the line in red it you may have had it done in 2018 but you're actually paying for it over the next few years whereas your cyclical maintenance plan is your blue line and it's setting aside the money to actually pay for the future.

Okay, existing lease agreements, this is a real interesting one uh when you make a lot of schools have photocopier lease agreements and um you may have someone saying actually I can come and give you a better agreement where are you at with your photocopies or perhaps they're not performing as well and you've got teachers saying actually it's not doing its job we need to look at the lease agreement um well you actually need to think about when you're renewing or exiting a lease agreement earlier than what the lease period you are going to incur early termination fees. um you may have a new contract there to review but in actual fact do you actually understand the numbers behind it and what portion of that may be actually attributed to the fact that you're actually terminating another contract to enter into one. So, a short-term benefit can be attractive, but it actually can cost you more in the long run.

Let's look at an example; So, kiwi park school has recently been offered a new photocopier lease. So not only will they receive a brand-new photocopier but they're actually going to save themselves um money on a monthly basis so over the new lease period is for 60 months they're gonna save them-selves three grand um. Is that is the school actually really saving themselves money the fact they've got an existing contract and they're actually going to um break out of that contract early, where is that early termination fee um in that new contract. So sure they're going to receive an extra 3000 over savings over the course of the contract but an actual fee that the early termination fee um is actually built into this so for example kiwi park school could be 15 000 worse off by entering exiting the existing contract and going into a new one. It's really understanding the numbers behind that and think-ing well if we're actually going to be that much worse off what's a better use of those funds? It is an area that comes up often within schools and if you really want to understand the numbers be-hind it or if you are looking to exit an existing lease agreement re-sign, renew have a chat to your local or your regional school finance advisor and they'll be able to help you through that process.

2020 saw a lot of different new one-off funding come through and it was a really unusual year with Covid so you will see a lot of manual adjustments come through in your ops grant, they can be related to teacher aide pay equity claim TAPEC or additional funding to cover those Covid-19 related costs. So how where should you code those to? The kiwi park model has a really good sheet in there which actually gives a gives a description of what fits under what category for example what fits under government grants other MOE grants what fits under government grants operational grants. So just refer to that, but just as a guideline so your government grants your other MOE grants unless they're significant those Covid one-off related costs sit under this. The other thing to be aware of is devices that were sent to students that were both received by the school or sent directly to the students they need to be recorded in your fixed asset register, so debit asset credit government grants other MOE grants. Other payments such is funding in lieu of donations, TAPEC, small schools they are actually should be classed as government grants operational grants um again if you need more clarification on this refer to the kiwi park model where it has got these items listed.

So when we think about a school whether it's going to breach the borrowing threshold it is we actually look at the calculation based on the government grants operational grants so that's the 10 percent it sits under that area and it includes those other funding like the TAPEC and the donations but it will exclude the Covid-19 related contributions they are the one offs and they sit under government grants other MOE grants.

Again, Covid has been a really unusual year this year it has brought many challenges to schools and I’m sure many schools have had cancellations of local and overseas trips. Now fundraising is the often the main source of revenue for these trips and it's really important to remember that that fundraising when it's received by the schools it automatically becomes public or crown funds. So, when it comes in um boards are under no obligation to return those funds that are fundraised for a specific activity, they can keep them aside, they can perhaps put them to the similar trip for next year they can also uh per-haps put it towards another trip for that year level, however if funds are received direct from parents and caregivers then they can be actually refunded direct to the parent or caregivers. Now around this fundraising boards can use their discretion around this however all decisions about what they want to do with those funds um really needs to have that documented rationale behind them um and detailed and minuted in the board minutes.

Probity, sensitive expenditure; I'm just going to read that top line the public audit act 2001 raises par-liament's concern that public entities should not enter into transactions or activities that are wasteful that show a lack of probity or financial prudence. In particular, probity is concerned with whether the expenditure may be justified from a public perspective. As I previously said all money received by school automatically becomes public funds crown funds so your international student revenue, you locally raise funds your fundraising, so the board of trustees are accountable for these expenses and it really comes down to you may have heard us say this before that six o'clock news test you know when it comes to spending if um if their item the school decides to spend so much on a certain item if the community New Zealand was sitting there watching the six o'clock news um and they saw that a school spent this much money on such a thing actually what would be the feeling of the of the com-munity of the school is that actually an appropriate spend for that school. So, boards of trustees are obligated under Education and Training Act 2020 to exercise good financial management around the expenses. Now the audit with the audit process it also can considers how the funds are spent and um your auditors may carry out specific testing of sensitive expenditures, so they may look at things like sensitive expenditure um principal’s expenses, credit card transactions, travel, overseas travel. So this is over and above the standard audit process so um they come in and they'll actually probably may even apply the six o'clock newstest but I also think that's something to keep in the back of your mind when spending public funds.

So, let's look at some examples; a school decides to operate a free bus for its students, to get students to school. The cost of the bus is actually only partially met by um by a grant and the school actually needs to cover the rest of it so from its operations grant so in order to may come in and say it's actually not a sustainable activity, why? Because um it could be placing the school in financial difficulty um they need to make a decision actually is that the best use of the funds for the students um and you know what sort of financial difficulty is it going to put the school in and so an auditor may look at that or it's just something that the board need to think about when making these sorts of decisions about the funds and actually thinking about the future and what future financial impact they may have.

Another great example; we a principal leaves after 30 years at a school obviously done a great fantastic service to the community and to the school and the school want to show their appreciation for that and in this example they've decided to give the principal an eight thousand dollar leaving gift. Could be anything, eight-thousand-dollar travel vouchers whatever it may be. Now in this case um the board of trustees have actually gone against their gift policy and I hope all schools have got a gift policy and under this this example the gift policy is a thousand dollars. So they've actually breached their gift policy um policies are there for a school to operate and abide in and also it could be perceived that the value of the gift is um it's just not it's extravagant is that the best of use of school funds it could be considered wasteful and it's certainly again it would be something that you'd think about that six o'clock news test.

I'm going to hand you over to Jane now she's just going to talk quickly on fraud

Jane Rogers: thank you and so just wanted to take the opportunity to talk a little bit about fraud. The office of the auditors general collects information every year on frauds that the authors tell us about so most instances that we are told about are relatively minor they are often fest or small amounts of cash or equipment however as has been reported in the media there have been some significant frauds in schools in the past few years. These usually involve fraudulent payments, and these can these are often through false invoicing um so someone has sort of has mocked up an invoice and usually from a you know a normal supplier um but change the bank district bank details we also we've also seen inappropriate use of credit cards, debit cards, fuel cards, that sort of thing um and there's also been um
an increase recently in cybercrime and I think some schools have been targeted by that as well. So, for individuals to be motivated to commit fraud um it's considered there has to be three elements in place and this is called the fraud triangle which is on the slide. So, these are the first one of these is the pressureor incentive so this is the temptation or the perceived pressure to commit fraud. So this is usually due to financial pressures, it may be because we've seen instances where people have gambling problems, it may be a wish to live live a certain lifestyle that they can't normally fund, but it could be due to the fact they've got a sick family member that they need to look after or just because they can't make ends meet, it can be a number of different things.

So, the second condition is opportunity, so this is the possibility to commit fraud, so this happens when an organization has weak internal controls. So, this can be that the controls aren't in place or it can be that actually the controls can be circumvented so they're not actually being operated as they're designed.

And the third condition is rationalization. So this is the um this is a justification by the fraudster that it's okay for them to actually commit fraud and this can be often a perception that they haven't been treated fairly by their employer, or they need they need the money more than the organization does, it can be various things.

um So the the sort of the two um two of the the um points of the triangle the incentive and the rationalization. I mean they tend to be specific to individuals so it's difficult for an organization to impact on that directly but obviously the opportunity the sort of weak controls that is under the control of a of an organization like a school board. But saying that having weak controls doesn't mean that you will suffer a fraud because obviously the other two elements have to be in place um at the same time. But but um but unfortunately the economic um downturn at the moment because and that the the um pandemic has caused for the country that does sort of give the environment where there may be ad-ditional pressures on people. So, people may well feel under more pressure and may then there may be more incentive for people to commit fraud if they if they if the other conditions were present. So, it's very important to ensure that you as a school have strong controls that and then they're consist-ently applied. So, what we call tone at the top is very important so that's making clear that actually there is no um that fraud will not be tolerated. So, it's always important to have a to make sure you have a fraud policy that it's communicated to your employees um and that if there are any in-stances of fraud identified that that you actually follow through on what that policy says. And so on this and so to mitigate against fraud the things to have in place include ensuring you have good segre-gation of duties and so that's having more than one person needed to complete a task, encouraging electronic payments for fees and large invoices, always obtaining and reviewing supporting documen-tation before payments are made, requiring a review of any changes to supplier details including bank accounts and also investigating any suspicious invoices. So audits aren't desired to discover or prevent frauds um the auditor will not be specifically looking for fraud during their school audit but they may well uncover it obviously if they did they will discuss that with the board they will discuss what they have found with the board.

So on this slide we've just included a few examples of where of what you may see if a fraud occurs. So that can be close relationships with suppliers, unprofessional invoices so that's false invoices as I said before that's people mocking up invoices, usually it's a it's it's a regular person that you normally um transact with, so people are less likely to to notice that it's a false invoice but the bank details will have changed, employees changing bank account details for suppliers to their own and that's we've seen instances of that, making not having original documentation for payments so having sort of photocop-iers photocopies, or no supporting document documents obviously you shouldn't make a payment with no supporting document. And so you know we do often see in our in our audits we often pick up in our management letters that expenses aren't being approved um and that doesn't mean that they are fraudulent um but obviously that that means there is an opportunity to fraud for fraud if if you are not always approving the payments that um that are made by the school.

So, it's just important to ensure that your you do have the controls in place and actually they are operating as they are designed. The other thing just to mention is there's been a worldwide increase in cybercrime particularly since the start of the pandemic. So, it's important to make sure that you protect yourself against that, so common types of cybercrime include compromising an email an employ-ee's email account, phishing scams where employees are tricked into giving up their login details or clicking on links where it allows ransomware to be loaded onto your network. We've also seen in-stances in the public sector where employees are tricked into paying an invoice outside the entity's usual processes and it's go and it goes to a fraudster rather than the person it’s supposed to go to. So, it's really important to make sure your controls are followed and also that you protect your systems against cyber fraud. Thank you

Jodie: filing your annual report just really a um a reminder that there are instructions on our website as to how to file your annual report um we've had it filed in various ways in many documents and we've had to actually collate them so it's just a reminder that it needs to be submitted as one document as a pdf and to include those components that we referred to earlier, the AOV, list of trustees etc. It needs to include the signatures and the audit opinion and there is also the capability for your kiwi park model to actually be uploaded by the portal in an excel spreadsheet. Just there is as you'll notice there's input sheets and different sheets in that model which actually helps us from our end and with those numbers.

So we're on to the summary now, so um our theme has been be prepared uh 2020 has been a very unusual year and I'm sure everyone will agree that being prepared will help us in the future obviously a lot of schools um you know the real important time for um and new accounts and auditors happened this year in lockdown in April um. I'm sure schools out there were dealing with auditor queries and you couldn't get access to files and I think that's really just showing us that we need to think more about how being prepared and part of that is just having access to those files and then also thinking about being prepared doing things early, getting ready for your auditors and confirming time frames with them and with the service providers and who's providing what to where and lock in dates for those audit visits so you can have everything ready, you know exactly what they're after. It does make your audit process a lot more easier and smoother. Review the latest kiwi park model as Nash referred to earlier it's up on our website now have a good look at it this is giving you plenty of time to actually think about any questions you may have and you may want to talk to your auditor, service provider or your school finance advisor um about any of it you know be prepared don't wait until the start of next year when you sit there putting numbers in and start collating information in your work papers early. As i just said if in doubt we're all here to help and I think I'll pass you over to Nash now.

Nash: thank you Jodie thank you we're just about nearing the end of our webinar, just a question for you all; during the lockdown and during this year's annual reporting process, how was your access to financial information for your school? If you're sitting at home on the lockdown have you did you have access easy access to information at your school or were you caught in a bind that you had to rush to school and get paper records and finish off your annual accounts? um so Covid 19 has taught us something to ensure that we have access to our records and how do we have access to records can we access them from home can we access them from a remotely off site so maybe a opportunity this year to look at working smarter and more efficiently around record keeping and sharing that record with a second person that has access to those records so that you're not caught short. So we've no-ticed working remotely that yes some some in the front end of the lockdown was hard to access a few of our drives and got me thinking about schools and your method of working so have a look at that because I think there's a lot of lessons to be learned and think about the pipeline this this year how was the flow what was the main roadblocks for you? Forget about Covid for for for a minute and just think what else was there what information didn't you have at hand to complete uh to finish your accounts.

We had about by 31st of May this year 1418 schools which is 59 percent uh submitted their accounts which was quite low and uh I think lockdown was just after April was it April May um end of March maybe yeah. So, I would have thought most schools would have completed most of their accounts by February- March. So again as Jodie said be prepared so if you prepared everything in the front end of the year you might have got away with getting your accounts in on time, so understand the pipeline and the timing of submitting your accounts at the end of the end of 31st of May. So again, key tips key messages be organized make sure that all your dates and deadlines are marked and demarked for all those key personnel in your organization, so you have your information on time. Be prepared, en-sure that engage with your auditor early enough you understand that you're not talking at cross pur-poses so you're all clear what documents are required, get all your source documents in line so it matches to your final numbers and your trial balance. um and be responsive so if auditors ask a question don't regard it as being gnarly and being difficult they have a reason to ask their question please provide the answers efficiently.

That's us if you have any questions;

I'll just ask James if you have any questions if you fired any questions in we're happy to answer. James has got a few questions, right are these for all of us uh it looks like it oh great.

Our first question is about the error and SAAR report available online this year, yes the SAAR report and the error report will be up in January, now the report's available on Novopay online but I think the error reports I think won't be available online they'll be at this stage they'll still be emailed out to the principal direct yeah. but look at payroll bulletin because it will all have all the information on there.

Second question was um who do we find the budget balance of where do we find the budget balance sheet? um in preparation in any budget preparation you're obviously preparing your statement of your budget for your statement of financial performance or your P&L, what will fall out from that is actually then starting to prepare a um a budget for your balance sheet, so it's just part of your annual budgeting process and it's also important to have a budgeted cash flow as well, um which you know should all three statements should all line up when you prepare them. yeah uh

Question number three is cyclical maintenance includes or covers external painting only? I think cyclical anything that's in a cyclical process so every five years you get your painting done so it's mainly it's external painting I would I'd say if you've got buildings in the interior buildings your corridors, your admin buildings um they should be included in your cyclical cycle yeah yes yeah ensure that so not just external but internal as well.

I'm trying to read James's questions here number four- Minutes, should this be emailed to auditors ? Yes um I think if there is something in them that um that is sensitive and you don't want to email them that's fine um it's probably best then for the auditor to look at them when they're actually visiting you um but I think that's sort of that's probably a conversation to have directly with your auditor but obviously we wouldn't insist you or you emailed them if there was something confidential in there because obviously there are often limitations with um the security of emails. So your auditor would either visit or often auditors do have sort of secure portals to receive information and may-be that would be another way of doing it so it's probably best to talk to your auditor about that.

question five - is devices for students do we get a listing of these and values? uh yes i think the ICT team have sent out a list to each school of the devices that have been sent to students in the school so they have a list for the asset register so ensure you talk to the principal or your business managers if you're out there, have a look there should be a list out for the end of December, I think there's a list gone out at the end of October that's what I've been told from the ICT team. So you will have a list plus these are two um two categories of devices out there and that's in the kiwi park model those two values included in the guidance if you go in the guidance in the kiwi park model you'll see the values for those devices.

question six - I'm not sure about this question James they've been asking a lot of accounting questions okay we have uh received a lot of accounting or technical questions um on online so what we'll do is uh we'll uh prepare a dossier of answers for that and publish it online with the webinar if that's okay. and the last question now auditors they basically the files are ready in February you can do this earlier it's still in place? I mean that's a conversation you'd have to have directly with your auditor um obvious-ly it’s it is usually to your advantage to get your audit file done your financial statements and your au-dit
file done as early as possible um because um the earlier we can start our audits the more likely we are to get them all done by the end of May but yeah I would suggest you talk to your as we said before agree a timetable with your auditor so if you know you are going to be have your information early um please talk to your auditor and sort that out with them.

One more question; and do you need to disclose in note 2 that the school has opted out of the dona-tion scheme? um I'm not aware of any disclosures around the donation of opting in, we will know which school is not on the donation scheme so because you won't be receiving the uh funds for us if you've opted out of it. There's also a list on the ministry website of all of those schools that have opted in and um we can clarify that and get back to you but as far as I'm aware you don't have to have a disclosure for that I don't think.

okay well that's us that's our webinar for the year please go and visit those links that you see on your website on your screen the kiwi park model and the legislative requirements on the new act. Thank you to Jodie and Jane and James and all our technical crew thank you for participating and taking your time out to log into the webinar this webinar will be online till end of March so if you have missed something or didn't understand anything please go and view it again and we will answer those questions for you shortly and put it online. Thank you very much.

Introduction: Kiwi Park Training Module

Transcript for Introduction: Kiwi Park Training Module

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module  Introduction.

(Actor, facing and talking into the camera)

Welcome and thank you for taking time to view a series of short instructional videos on how to optimise the use the Kiwi Park model in order to complete a set of your school’s financial statements.

As you are well aware, the model has been evolving and improvements have been made over the past ten years with input from the sector including changes to reporting requirements in public sector accounting standards.

These sessions are separated into short and concise user activities.

We will demonstrate processes around trial balances, financial statements, submitting your annual report, and some tips on how to work efficiently with the model.

Before you begin these sessions, we recommend you download a current copy of the appropriate Kiwi Park model for your school from the Ministry website.

Please read the instructions at the first worksheet of the Kiwi Park Model “How to use the Kiwi Park Model “model.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome you feedback in these videos. Please contact your regional finance advisor to provide your feedback or suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 1: Preparing your school trial balance for export

Transcript for Session 1: Preparing your school trial balance for export transcript

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Preparing the school trial balance for export.

(Actor, facing and talking into the camera)

Before you begin preparing a trial balance to use in the Kiwi Park model, it’s important to confirm that your financial system can export the trial balance in either CSV or XLS format. The XLS format would be a preferred option for this exercise.

If you need assistance confirming this functionality, check with your system provider or ask the system user to do this for you.

It’s also important to check that the trial balance does indeed balance by confirming debits are equal to credits.

Once you are happy with the preparation, run the trial balance report, confirming one more time that it has been saved in either CSV or XLS format and is located in the required folder.

Next, copy the exported file to the folder where you have saved the Kiwi Park model. Rename the file to something more appropriate for future reference and audit purposes.

(Actor, facing and talking into the camera)

Finally, open the saved file and check the following.

(Excel spreadsheet appears on screen): the user enters a formula in cell i2 “=round(+G2+H2,0)”, the formula is automatically copied down Column I by clicking on the little black square in the bottom of cell i2.

All numbers are in one column (pause).

All numbers are in whole dollars and the debits and credits are equal to zero (pause).

(Excel spreadsheet appears on screen): The user “hovers” over Column i and checks the SUM in the bottom right of the screen, the total sum to 2. The user alters the formula in cell i2 by entering a negative 2. The user hovers over Column I again to check the sum total is zero. Column I is copied, paste special - values. Column C to H are deleted. The user enters “Balance” into Cell c1.

(Actor, facing and talking into the camera)

If you are not familiar with your system’s reporting capability, please check your financial systems manual on how to run and export a GL Trial Balance report. Or use an expert to do this for you.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome you feedback. Please contact your regional finance advisor to provide your feedback or suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 2: Import and map your school trial balance for the first time

Transcript for Session 2: Import and map your school trial balance for the first time

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Import and map a school trial balance for the first time.

(Actor, facing and talking into the camera)

In this video I'll be showing you how to import your trial balance, map the trial balance codes to the Ministry of Education codes and then complete the quality assurance necessary to ensure validity of the information.

Text on screen:

  1. Check the financial statements are really blank.
  2. Save iterations as you go.

As a progress tool, it is best to save iterations of the file as you go so you can go back a step or two in case you lose track of changes and updates.

(An Excel screen appears on screen being used: the user selects the command “File” (pause) “Open” (pause) to locate and open an electronic file in the folder containing the school’s trail balance).

Open the GL file that contains the school's trial balance, budget and last year and copy the three columns and rows.

Paste those values into the “School Trial Balance Input” worksheet at cell A2.

Check that column C, D, E and F all equal zero by selecting each column header and save the blank file

(Actor, facing and talking into the camera)

Next, we are going to build the links to show the auditor to how each GL code is mapped to the financial statements in the “Trial Balance Converter”. This can take some time to set up initially, but it is a worthwhile exercise.

(Actor, facing and talking into the camera)

In future years, you only have to review and modify the mapping for new codes or delete old codes.

(An Excel screen appears on screen: the user copies and paste GL codes from one worksheet to the next worksheet until all codes are mapped (pause). The user also checks the Excel screen for any error messages):

Once all the general ledger codes are mapped, check in both worksheets if all the codes have been correctly mapped. Do this by checking if the message in cell G 12 reads “Balances” in the “Trial Balance Converter” worksheet.

Also check column I in the “School Trial Balance Input” worksheet to see if there are any lines that show a message “Missing from Converter Sheet”.

If the mapping is correctly completed the message in column C to G in row 12 should read “Balances".

(Actor, facing and talking into the camera)

Finally, if you are populating the model for the first time save the file as Version 1. This will allow for easier version control.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 3: Populating the trial balance converter in kiwi park

 

Transcript for Session 3: Populating the trial balance converter in kiwi park

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Populating the Trial Balance Converter in Kiwi Park Model.

(Actor, facing and talking into the camera)

In this video you will learn how to remap the school's existing links for the latest version of Kiwi Park.

I'll show you how to arrange the worksheet vertically and in synchronous side-by-side viewing in Microsoft Windows, compare your current mapping of the trial balance to the latest template, add and delete rows to the existing mapping to align to the latest template.

(Actor, facing and talking into the camera)

Copy paste value the old mapping to the new template, copy paste value the previous year trial balance and align the current year trial balance and save the new mapping conversion for the auditor.

(An internet webpage appears on screen: the user accesses the Ministry of Education’s School’ annual report (annual financial statement) webpage)

Open the MOE web page that contains the Kiwi Park models and select the file you want to download. “Save as” into the working folder you are using for the school's latest financial statements.

(An Excel screen appears)

Check that the downloaded financial statements are blank.

(Actor, facing and talking into the camera)

As a progress tool, it is best to save iterations of the file as you go so you can go back a step or two, if you lose track of where you are in developing the Kiwi Park model for the school.

(Text appears on screen: Open the school’s audited model for last year’s and save to the working folder you are using to produce the latest financial statements.)

(An Excel screen appears)

Close all Excel worksheets and open last year's audited model and this year's blank model.

With only these two Excel workbooks open, the new model and the old model, we're going to try synchronizing the scrolling of the worksheets vertically and side-by-side. This allows us to make sure the schematics of the old model can be copied onto the new model and save us a lot of time. 

Check that you're on the same worksheet in each sheet of the trial balance converter. Set the window freeze on each screen separately to be the same cell in each worksheet. “Control home” on each workbook. You may have to unfreeze and refreeze to set this up. 

Next select View, Arrange All, Vertical.

Select view side-by-side and synchronous scrolling. Scroll down the two worksheets side-by-side to make sure each row number and description are the same is the new model.

When all the codes align, we will use Excel’s copy function to copy last year's trial balance converter mapping to the new model’s trial balance converter.

Copy Paste Value the old model GL codes mapped in E 16 through CR 270 to the new model cell using Excel’s control C Copy and Paste Value.

Check that all trial balance codes are mapped. See trial balance converters cell G 12 and school trial balance input column I.

Check for duplicate codes column G to column CR or omitted codes school trial balance input column I.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 4: Populating the inputs worksheet manually

Transcript for Session 4: Populating the inputs worksheet manually

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Populating the “Inputs” worksheet manually.

(Actor, facing and talking into the camera)

This method of populating the financial statements is time consuming and can cause errors if you are not sure how the schools GL codes are mapped to the Ministry codes.

When entering data please ensure that all balances are in whole dollars as it will save with balancing at completion.

I'm going to show you some key steps for populating the inputs worksheet manually.

(Actor, facing and talking into the camera)

I'll show you how to blank each row and column in preparation for manual data entry in the input worksheet, check the blanked input worksheet balances and all the financial statements and notes are blank and balanced and how to key data into each section and to check them against your system generated financial statements.

(A computer screen appears showing an Excel worksheet for Kiwi Park School 2020)

Select the inputs worksheet in your model and start deleting all formulas section by section.

Leave the totals line so that you have a mechanism to check if you agree with your school's totals.

The blank worksheet can now be completed by entering in the balances for each code. Complete the data input section by section so that you can check totals as you enter data for each category.

Once all the data has been entered check at the top of the page on line 4 to see if the worksheet is balanced.

(the computer screen highlights the cells on line 4 by a bold blue coloured rectangle)

If it has balanced, you will see a comment “Balances” highlighted in green. If it does not balance you will see a highlighted comment “Does Not Balance”.

Check your figures from your worksheet section by section.

Complete the exercise until you balance the worksheet.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

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Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 5: Quality checking the financial statements 

Transcript for Session 5: Quality checking the financial statements

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Quality checking the financial statements.

(Actor, facing and talking into the camera)

I'm going to show you how to quality assure each worksheet with a red coloured tab. These worksheets will form the printed pages of the financial statements.

(Actor, facing and talking into the camera)

I'll also show you how to hide a row that has no number or has a zero value in all three columns to improve the presentation of the financial statements and I'll show you how to format the worksheet to show a white background.

(A computer screen appears showing an Excel worksheet for Kiwi Park School 2020 the statement of comprehensive revenue and expense)

In order to check that all data for the statement of comprehensive revenue and expense has flowed through correctly from the inputs worksheet, have a look at line 41 under column H to J.

The balance in the checks should be zero. If there are balances then you will need to start checking each line item and locate the error at its source. Please do not force a balance by changing the formula.

In order to check the statement of changes in net assets and equity, refer to check calculations on line 10 under columns H to J.

(A computer screen appears with a bold blue coloured rectangle drawn around the cells H10 to K10)

The balance in the checks should be 0. If there are balances, then you will need to start checking each line item and locate the error at its source. Please do not force a balance by changing the formula.

Finally, in order to check the statement of financial position refer to check calculations on line 54 under columns H to J.

(A computer screen appears with a bold blue coloured rectangle drawn around the cells H54 to K54)

The balance in the checks should be 0. Again, if there are balances then you will need to start checking each line item and locate the error at its source. Please do not force a balance by changing the formula.

(Actor, facing and talking into the camera)

If there are differences you will need to investigate, locate and fix these errors.

We will provide a separate video session on how to quality check the statement of cash flow and the notes and disclosures.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 6: Reviewing the statement of cash flow

Transcript for Session 6: Reviewing the statement of cash flow

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Financial Statements: Quality review the Statement of Cash Flows.

(Actor, facing and talking into the camera)

The Statement of Cash Flow is important because it informs the reader of the school's cash position.

It summarizes the amount of cash and cash equivalents entering and leaving the school.

In this session, I'm going to show you how to manually adjust the cash flow for non-cash items, manually add back information on any assets disposed of at a loss, add back information on any assets disposed at a surplus, review the acquisition of assets under a lease or hire purchase security document.

The cash flow statement measures how well the school manages its cash position, meaning how well the school generates cash to pay its debt obligations and fund its operating expenses.

A school can use a Statement of Cash Flow to predict future cash flow which helps with matters of budgeting.

(An Excel spreadsheet appears on screen - the user selects the Statement of Cash Flows; the user scrolls down the screen and moves the mouse to cell i47 to K47)

Now let's go to the Statement of Cash Flows worksheet. Check that line 47 and columns I through K have returned and nil balance for each column. If not, then you will have to investigate the reason for any imbalance and fix accordingly at its source.

(On screen the user selects the Actual CF Model CY and Budget CF Model CY worksheet, the user scrolls down the worksheets and moves the mouse to row 263)

The Statement of Cash Flows worksheet is linked to the Actual C F Model C Y and the Budget C F Model C Y worksheets please ensure that you have checked both of the cash flow worksheet totals on line 263 which should be showing a nil balance from Column D to column T. If some columns are not, you will need to investigate and fix errors.

(On screen the user selects the Actual CF Model CY – Column G)

The Kiwi Park cash flow model has a number of pre-set formulas to adjust for financial transactions that have not passed through the school's bank accounts.

We have done this to make the job of producing the financial statements easier.

In column G, we have pre-set the more common adjustments which you don't need to change.

  1. Teacher Salaries Grants Revenue is set off against Learning Resources.
  2. Land Use Grants revenues is set off against property expenses.
  3. Impairments to Property, Plant and Equipment and Accounts Receivable set off against Assets and Receivables. 
  4. The annual charge for Cyclical Maintenance Provision is accumulated in the provision for Cyclical Maintenance.
  5. The annual SAAR accrual for unpaid teachers’ salaries receivable from the Ministry of Education is set off against the unpaid salaries, wages and holiday pay for school employees. 

(On screen the user highlights Column H, pause. The user moves the cursor to H10 and H75)

Column H is for the school to add their own non-cash adjustments.

An example of this is where a school has a statutory intervention and the Ministry contributes to the cost. The adjustment is not pre-set in the Kiwi Park model. The level of support provided by the Ministry is confirmed by email and this should be manually adjusted in sales H10 and H75. In our example, the Ministry provided a subsidy of $8,000. This is entered into Cell H10, towards the expense of the intervention expense minus $8,000 is entered into cell H75.

(On screen the user moves the cursor to Columns Q, R and S and scrolls down to S88)

The cash flow model needs some more refinement to improve the presentation of information around the buying, selling and disposal of assets.

(On screen a bold blue rectangle is drawn around cells around cell T88)

We need to work with column Q R and S. In our example, a motor vehicle has been sold for $5000 and some furniture and equipment has been disposed for nothing. That is, no cash was paid to the school.

(On screen a bold blue rectangle is drawn around cells around cell S169 and then around S181. The user attention is also drawn to the automatic sum function of excel at the bottom the screen. A bold blue rectangle is drawn around cell T 88 to show the calculated receipt from the disposal. The cursor then scrolls over to Cell D88 to show the surplus on disposal).

We bought the vehicle for $25,000 and over the years we depreciated the vehicle by $21,000. The net book value of the vehicle at the time of disposal was $4,000 and we sold it for $5,000 cash, GST exclusive. This resulted in a gain of $1,000 to the school.

(On screen a bold blue rectangle is drawn around cells around cell S 168 and scrolls down to S179. A bold blue rectangle is drawn around cell S 97 and the rectangle moves across to T 97 and then D97)

We bought the furniture and equipment for $12,345 and over the years we depreciated the furniture and equipment by $9,088. The net book value of the furniture and equipment at the time of disposal was $3,257.

No money was paid to the school. This resulted in a loss on disposal of $3,257.

(On screen a bold blue rectangle is drawn around cells S 164 to S172, the rectangle scrolls down to cells S177 to S184)

The original cost of the assets disposed of are added back at cost in column S Rows 164 to 172.

The depreciation that was accumulated by the assets disposed of are added back as negative numbers in column S Rows 177 to 184.

(On screen a bold blue rectangle is drawn around cells S 164 to S184, the user attention is also drawn, by drawing a bold blue rectangle around the sum function at the bottom of the screen)

If you highlight cells S 164 to S 184 you will be able to check the net book value of the assets disposed of.

The net book value of the assets disposed of at a surplus needs to be separately set off and cell S88.

(On screen a bold blue rectangle is drawn around cells S 88, the rectangle then scrolls down to cell S97)

You will see we have entered minus $4,000 here.

The net book value of the assets disposed of at a loss needs to be separately set off on row S 97. We have entered minus $3,257 here. These adjustments help the cash flow model to calculate the cash receipts, if any, given to the school when they disposed of this surplus or obsolete assets.

(On screen the cursor scrolls from column T to column Ai, a bold blue rectangle is drawn around cells Ai 88 Ai 97)

If we scroll over to Column A I and to rows Ai 88 to Ai 97 we will see the school received $5,000 for the disposal of assets. This is the figure shown in the statement of cash flow and should agree with your banking records.

(On screen the cursor highlights Q 171, [pause], the cursor scrolls down to Q234)

Assets acquired by lease or higher purchase do not generate cash transactions in the bank account other than paying the periodic instalments. We need to check that the pre-set adjustment is working correctly in column Q. In our example, the school signed new leases for equipment worth $20,368. The purchase on row Q171 is set off against lease liabilities on row Q234.

This adjustment helps the cash flow model to calculate the cash paid by the school to the leasing company as a borrowing cost.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 7: How to hide rows and notes not required for your school

Transcript for Session 7: How to hide rows and notes not required for your school

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Hiding Rows and Notes that are not required for your school.

(Actor, facing and talking into the camera)

I'm going to show you how to hide rows and notes that are not required for your school.

This is an appropriate way to simplify your document as it is important you do not delete any rows. Before we start the session, it is important that you keep a copy of the model.

It's also important that you check and complete each note if you are required to include information manually.

These areas will be in grey and a note to the side saying “‘Requires Manual Entry.”

(An Excel spreadsheet appears on screen - a user selects the Statement of comprehensive revenue and expense worksheet; the user moves the mouse to cell B1, untick “No” and OK)

I will guide you through some tips to make it easier for you when you are ready to print the financial statements either for your own visual checking or providing it to the board for signing.

Select the worksheet “Statement of Comprehensive Revenue and Expense”.

Go to cell B1 and click on the icon to the right of the cell unclick “No” and click on OK.

(the computer screen shows a user moving through the red tab worksheets repeating the same steps – selecting B1 and unclicking “No”)

Repeat this on the next four worksheets, “Statement of Changes in Net Assets Equity”, “Statement of Financial Position”, “Statement of Cash Flows”, and “Statement of Accounting Policies”.

Select the worksheet “Notes and Disclosures”.

(An Excel spreadsheet appears on screen - a user selects the Notes and Disclosures worksheet; pause the user moves the mouse to cell C1, unclicks “Blanks” and OK)

On this worksheet, you need to make some manual selections in column B to choose the rows to print.

Go to Cell C 1 and click on the icon to the right of the cell. Untick “Blanks” and click on OK.

(on the computer screen the user selects the relevant cells in Column B and changes the yellow highlighted cells from “No” to “Yes”)

If any of these disclosures are required for your school, change the yellow highlighted “No” to “Yes” [pause] and make sure the commentary has been updated.

(on the computer screen the user selects the relevant cells in Column D and enters an explanation for the Note disclosure in cells D51 and D205)

In our example, cell D 205, four thousand five hundred forty-one dollars cash is held on behalf of the Ministry of Education and required to be spent in 2021.

(on the computer screen the user selects the relevant cells in Column C and clicks on the “Select All)” and the “OK” icon. The user then selects cell B1, unticks “No” and clicks on the “OK” icon. The user also selects File - Save).

Go back to Cell C1 click on the icon to the right of the cell, tick “Select All” and click on OK. Go to cell B1 and click on the icon to the right of the cell. Untick “No” and click on OK. Save the document.

(on the computer screen the user selects the Statement of Comprehensive Revenue and Expense, scrolls over to and clicks on the Notes and Disclosures worksheet)

Select all the worksheets from “Statement of Comprehensive Revenue and Expense” to “Notes and Disclosures” by clicking on the “Statement of Comprehensive Revenue and Expense” tab, hold down the Shift key then left mouse click on the “Notes and Disclosures” tab.

(the screen shows the highlighted Column C to J, the mouse selects “Format Cells” “Fill” and then the white colour palette. The user then selects “Font” and then the black colour palette)

While the six worksheets are selected, highlight Column C to J. Right click on your mouse or other pointing device and select Format Cells click on Fill and then select the white as the background colour. Click on Font and then Colour and choose the black theme colour. Click on OK.

Now the worksheets are grouped, please note any changes you make will be applied to all six worksheets. So please be careful not to type anything or make any other changes.

(the screen shows the 6 selected highlighted worksheets. The user hovers over the selected worksheets, right mouse click and selects “Ungroup Sheets”).

To ungroup the sheets, right mouse click on the bottom of the worksheet and select Ungroup Sheets.
You are now ready to print the financial statements.

(The screen shows the user selecting the red coloured Title Page, scrolls over to and clicks on the Notes and Disclosures worksheet. The user selects File, Print, Printer. The user then ungroups the selected worksheets, closes and saves the spreadsheet).

Select all the red worksheets by left mouse clicking on the title page worksheet. Hold down the Shift key, scroll over to the “Notes and Disclosures” worksheet and left mouse click on the “Notes and Disclosures” worksheet.

Click on File, scroll down to Print, select your preferred printer and the quantity required and click on the Print icon.

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Session 8: Collating and uploading your annual report subtitles

Transcript for Session 8: Collating and uploading your annual report subtitles

Sound of Ministry of Education jingle in the background.

Text on screen: Kiwi Park Training Module – Gathering all parts of the Annual report, uploading to the Education Portal and publishing online.

(Actor, facing and talking into the camera)

I'm going to show you how to gather all parts of the Annual Report, upload into the Education Portal and put a copy onto the school's website.

This requires the following steps.

Text on screen:

  1. Accessing the Ministry website for the latest Annual Reporting circular
  2. Gathering the 5 component parts of the “Annual Report”, check for legibility and authenticate the final version of the audited financial statements
  3. Scan all pages to 1 PDF
  4. Check you are an authorized user of the School Data Portal.
  5. Open the school data portal and log in.
  6. Upload the annual report as 1 PDF
  7. Upload the Kiwi Park model (optional)
  8. Provide the PDF to your website provider for publishing, if your school has a website.
  9. Or, if your school doesn't have a website request the Ministry to host your annual report by sending an email to planning.reporting@education.govt.nz along with the PDF and approval from the Board.

So let's look at these in some detail.

(An internet webpage appears on screen: the user accesses the Ministry of Education’s - School’ annual report (annual financial statement) webpage)

You will see lower down on this page, information related to the annual reporting process.

(the computer image on screen shows a user scrolling down the webpage)

Scroll down to the link for this year's annual reporting circular.

(the computer image on screen has drawn a bold blue boarder around the Annual Reporting Circular hyperlink on the webpage)

Click on the link to view the contents of the circular.

(An internet webpage appears on screen: the user accesses the Ministry of Education’s Education Circular on the website and scrolls down to Appendix 3: Annual Report Checklist)

The next step is to ensure that you have all the components that make up the Annual Report.

You will find the checklist showing the five components required included in the link above under the heading Annual Report Checklist.

Check you have the signed original documents at hand as per the checklist.

(Actor, facing and talking into the camera)

Once you have all the information together, scan it into one PDF document ready for uploading via the school portal.

(An internet explorer webpage appears on screen: the user types services.education.govt.nz and hits “enter” on their keyboard, a new webpage appears: the user clicks on Education Sector Logon icon)

To access the School Data Portal, go to services.education.govt.nz, click on the Education Sector Logon,
choose Education Sector Logon, and finally select School Sector logon links.

(Another webpage appears on screen: the user clicks on the “School Sector Logon Links” under the column - Application Logon Links)

Now select SDP School Data Portal from the list of options.

(An internet webpage appears on screen: the user scrolls down the webpage to clicks on the “SDP - School Data Portal”)

(the next computer image shows a user reading the Education Circular - Filing your Annual Report)

Follow the steps outlined in the Annual Reporting Circular under the heading “Filing your Annual Report”

(An image on screen showing a user accessing their school data portal, scrolling on the File Type and selecting “Annual Reports (31 May)” and browsing for the school’s folders for the PDF of their Annual Report)

Once you have logged in select the dropdown option Annual Report 31 May in the School Data Portal to ensure your annual report is submitted correctly.

(Actor, facing and talking into the camera)

We hope you find these videos helpful. We are always happy to hear from you and welcome your feedback.

Please contact your regional finance advisor to provide your suggestions on other videos that may be helpful.

Sound of Ministry of Education jingle in the background.

Text on screen: Lifting aspiration and educational achievement for every New Zealander.

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Model spreadsheet examples

Use the following appropriate Kiwi Park model spreadsheet to complete your annual report.

List of updates 2020 Kiwi Park model [PDF, 349 KB]

Kiwi Park Group Model

2020 Kiwi Park group model [PDF, 669 KB]
  2020 Kiwi Park group model blank [XLSX, 1.2 MB]
  2020 Kiwi Park group model [XLSX, 1.2 MB]

Kiwi Park Single Model

2020 Kiwi Park single school model [PDF, 480 KB]
  2020 Kiwi Park single school model blank [XLSX, 835 KB]
  2020 Kiwi Park single model [XLSX, 857 KB]  [XLSX, 835 KB]

Disclosure checklist for Tier 1 schools [PDF, 1.2 MB]

Board Full Time Equivalent Worksheet for the Kiwi Park financial statements model [XLSX, 78 KB]

TELA Lease worksheet [XLSX, 47 KB]

Annual report checklist

Make sure that you can check off each of the following items before you send your Annual Report to the Ministry:

  1. Analysis of variance
  2. Statement on Kiwisport funding
  3. Financial statements attached (all pages – please check)
  4. Statement of Responsibility signed and dated
  5. Audit report (not the management letter) signed and dated

Our Circular 2020/07 has additional useful information.

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