Annual income twenty pounds,
annual expenditure nineteen
six, result happiness. Annual
income twenty pounds, annual
expenditure twenty pound
ought and six, result misery.
Charles Dickens
Finance is the art of passing
money from hand to hand until
it finally disappears
Robert W Sarnoff
We have an obligation and a
responsibility to be investing in
our students and our schools. We
must make sure that people who
have the grades, the desire and
the will, but not the money, can
still get the best education
possible.
Barack Obama
“Don’t tell me where your
priorities are. Show me where
you spend your money and I’ll
tell you what they are”
James W Frick
T303 The Board’s Role in
Finance
Session Objectives
Using our finances to ensure that we are
receiving the best possible outcomes for our
students
• Accountability
• Leadership
• Monitoring
• Employer
Public
Money
Money
Participants
BOARD
• Sets financial policy
• Determines strategic
direction
• Delegates authority
• Approves budget
• Monitors expenditure
PRINCIPAL
• Implements financial policy
• Ensures budget reflects
strategic aims
• Provides day to day
management
• Reports to the board
Depreciation
Item
Year of Useful
purchase life
Cost
2012
2013
Computer
2012
4
$2,000
$500
$500
Data projector
2011
3
2400
800
800
Sliding shelving
2010
15
15000
1000
Interactive whiteboard
2012
3
2100
700
Depreciation
2014
2015
$500
$500
1000
1000
1000
700
700
$3,000 $3,000 $2,200 $1,500
Income
Operations Grant
• Paid quarterly
1 January
25%
1 April
33%
1 July
50%
1 October
100%
• Broken down into areas including:
Relieving
Teachers
Vandalism
Property
Maintenance
Heat, Light,
Water
T303 The Board’s Role in
Finance
Using our finances to ensure that we are
receiving the best possible outcomes for our
students
• Accountability 
• Leadership 
• Monitoring . . . .
• Employer
Reports
Accurate
Timely
In Context
Appropriate
Dashboard reports:
Administration
60000
Yr-1
50000
Yr
Budget
Yr
Actual
40000
30000
20000
10000
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Balance Sheet
A SCHOOL Balance Sheet
30 June Yr
Eoyr-1
Description
Current Assets
15,675Bank Account- cheque
22,384Bank Account- savings
0Term Deposit 31/3/yr+1
24,960Term Deposit 31/10/yr
250account receivable
0Stock on Hand
-2,663GST
60,606
Current Liabilities
2,925Accrued Audit fee
0Cyclical Maintenance Provision
1,440Accounts payable
4,365
56,241Working Capital
SUMMARY
YTD
5,645
5,000
15,000
25,267
0
-2,386
48,526
0
7,000
0
7,000
41,526
Non Current Assets
196,700Fixed Assets
198,600
Non Current Liabilities
Cyclical
Maintenance
19,500 Provision
22,000
Annual Accounts
31 March - Completed accounts to auditor
31 May
- Audited accounts to MoE
School A
Surplus
/Deficit
Working
Capital
School B
School C
1235
800
-6598
-9000 -1100
2345
actual
budget
actual
budget
budget
12000
actual
46890
What do these figures indicate about the financial
viability and management of each school?
7560
So what? Now what?
SO, Are we using our finances to ensure that
we are receiving the best possible outcomes
for our students?
• WHAT is the main thing I learnt from this
session?
• NOW: Is there anything I need to do?
Is there anything our board needs to do?
Thank you
NZSTA
HelpDesk: 0800STA HELP
Training: 0800782 872
NZSTA Regional Coordinator
NZSTA Industrial Adviser
[email protected]