Step 3: Consider inputs at the 10YPP initiation meeting

After completing a Condition Assessment of your school, your 10YPP Consultant arranges a 10YPP initiation meeting.

On this page:

  • Overview
  • What you bring to the meeting
  • What the Ministry and 10YPP Consultant bring to the meeting
  • Consider spending priorities for your 10YPP
  • Discuss the budget
  • Cyclical maintenance
  • Budget checklist

Overview

At this meeting you:

  • discuss your vision for the 10YPP, the results of the Condition Assessment and all the inputs into the 10YPP
  • prioritise projects within available budgets, as outlined in your 5 Year Agreement (5YA) letter.

Your school principal, a board representative, your 10YPP Consultant and your Ministry property advisor must be at the initiation meeting. Your caretaker and other school property representatives can also attend.

Your 10YPP Consultant will take minutes of the meeting and circulate them to everyone who attended. Make sure you agree with the recorded version of events as they will form the basis of your 10YPP.

What you bring to the meeting

You will need to prepare for the meeting so that you can take along:

  • your school vision – your wants and needs – for the 10YPP, based on your school charter
  • Innovative Learning Environment (ILE) assessment data (previously called Modern Learning Environments).  Complete the ILE assessment tool with your 10YPP Consultant before the meeting to get an assessment of your school property against the Flexible Learning Space (FLS) criteria and suggestions about how to modernise it
  • roll projections, showing whether your school roll is growing, steady or falling. Your property advisor may be able to provide a demographic report if your school roll is growing
  • your cyclical maintenance plan: a copy of the contract if you have any programme maintenance plans (eg painting)
  • Building Warrant of Fitness (BWOF) information
  • anything else that may affect your 10YPP needs like an energy management review, special character features, special education needs, cultural impacts, your school security policy and/or your traffic management plan. 

What the Ministry and 10YPP Consultant bring to the meeting

Your property advisor and 10YPP Consultant provide:

  • property data and school site plans
  • budget (includes your Five Year Agreement (5YA) funding allocation and any other approved budgets that may be available, including board funds)
  • Condition Assessment data, including any reports from specialists
  • details of your previous 5YA and 10YPP, including any outstanding 5YA projects from previous cycles
  • your School Property Guide (SPG) entitlement (if you have any surplus school property, your 10YPP Consultant can also prepare and bring along a rationalisation plan)
  • information about the work of other Ministry programmes, such as earthquake strengthening work, weather-tightness repairs and ICT network upgrades.

Consider spending priorities for your 10YPP

At the meeting you will consider the priority of work identified in your Condition Assessment along with the list of other work you want to do. The focus must be on maintaining and upgrading essential services and existing property.

The table explains these work priorities.

Priority

Item

Explanation

1

Health and safety

Projects to fix urgent health and safety issues that would close the school, or part of the school, if they are not addressed. This work:

  • includes defects that could harm people like non-functioning sewerage systems or contaminated water supply
  • does not include small things like minor trip hazards in a car park.

Don’t include any Priority 1 work in your 10YPP. If your Condition Assessment identifies any major health and safety issues, they must be resolved immediately using existing Property Maintenance Grant or Five Year Agreement (5YA) funding. If you do not have enough of this funding, you may be able to get Budget Plus or Unforeseen Work funding.

2

Essential infrastructure

Projects to maintain the integrity of building structures and services. It does not include day-to-day preventative maintenance , such as gutter clearing

This work is often identified during the Condition Assessment. Examples are leaky buildings, earthquake strengthening, boiler replacements and roofing replacement.

3

Flexible Learning Spaces (FLS)

Projects to upgrade and enhance learning environments.

Work is identified when completing the Innovative Learning Environment (ILS) assessment tool. Examples are upgrades of classrooms to Design Quality Learning Spaces (DQLS) requirements and classroom reconfiguration.

4

Discretionary projects

These projects are not essential and can only be carried out after all priority 1, 2 and 3 projects have been completed.

Examples are administration remodels, paving, carparks, and landscaping.

What not to consider in your 10YPP

Do not include the following operational expenses in your 10YPP:

  • furniture and equipment replacement
  • teaching materials like paper and pens
  • heat, light and water costs
  • contents insurance
  • insurance for board-funded facilities
  • preventative maintenance like cleaning gutters or building wash downs
  • other operating expenses, like waste disposal, caretaker wages, cleaning and local council charges.

Discuss the budget

At the meeting, you discuss the budget. 

The amount of funding available to your school will have a major impact on the priority and scope of projects in your 10YPP, including the standard of the accommodation.

Sources of funding

This table lists all possible funding sources and how you can use each one.

Operational funding for maintenance. How much is available for maintenance? You must understand the difference between maintenance and capital costs (see paragraph below).

Funding sourceIssues to consider
The 5 Year Agreement (5YA) funding is based on $ per square metre entitlement. Go to spending rules for 5YA funding. Do all urgent health and safety work and essential infrastructure work first, then modernisation work.

The board's discretionary funding sources (eg surplus operational funding, fundraising and community grants).

Surplus operational funding is only surplus if you can show you have met all your obligations for running the school and maintaining the school property. You need the Ministry’s financial advisor's recommendation and our consent to use it.

Have you included all discretionary funding sources and how you intend using them? Only include funding that is immediately available. Do not include projected funding.

If further funds become available, you can include them when 10YPP is reviewed.

Specific capital funding programme, entitlements (eg roll growth, School Property Guide (SPG) deficiencies).

Coordinate the projects with the budgeting and timing of other projects in the 10YPP.

In addition, our own budgeting constraints may affect when capital funding will be available to your school.

 

Other potential costs to consider

The next table shows other costs that you may need to include in any project budget.

Possible additional costs

Comment

Specified systems such as lifts, fire and air conditioning systems.

These are a cost to the project (eg new teaching block) and must be factored into the project budget.

Ministry design standards; (eg. Designing Quality Learning Spaces requirements).

Access standards for students with special education needs.

Every project proposed under the 5 Year Agreement (5YA) must include the cost of upgrades to provide suitable access (eg, putting in a lift).

There is no additional modernisation funding stream for Ongoing Resourcing Scheme (ORS) students/staff. It is factored into your total property funding.

Property costs of hosting special school satellite units at the school.

For more information, go to satellite units.

 

Optional contingency sum in the budget

Following a review of the 10YPP policy, the 5YA 10% contingency will no longer be required to be set aside. Removal of 5YA contingency aims to support improved long term asset management planning across the school property portfolio, as it enables schools to use funding more effectively.

The full 5YA budget is now available to consider as part of your 10YPP planning process, and you may allocate your total 5YA to projects.

Although you are no longer required to set aside 10% of your 5YA funding as a contingency, you may set up a project called ‘Contingency’ and hold this for any unexpected urgent health and safety or essential infrastructure projects.

The Unforeseen Work funding policy tells you what to do when capital emergency work affects the budget before the end of the 5YA period.

Spending rules for 5YA funding

For more information, go to Spending 5 Year Agreement (5YA) funding.

Understanding the difference between capital and maintenance costs

When budgeting, you must understand the difference between capital and maintenance costs.

Public funding appropriated from Government for a particular purpose must be used for that purpose. This means you must use:

  • capital funding (allocated by the Ministry) to create or improve an asset on our balance sheet or replace existing property
  • maintenance funding (provided through operational funding) to carry out day-to-day maintenance of school property.

The table explains the differences between capital and maintenance work.

 Capital work (5YA funding) must meet three criteriaMaintenance work (PMG funding)
1.

The work:

  • creates new property or
  • replaces existing property or
  • substantially upgrades existing property.

The work is on an existing building and involves activities such as:

  • painting
  • minor replacement
  • minor patching and repairing
  • minor site and ground maintenance.
2.

As a result of the work:

  • a new asset is created in the Ministry's balance sheet or
  • an existing asset needs to be updated in the Ministry's balance sheet.
3. Project value is greater than $5,000 (a lower project value of $2,500 applies to special education property modification).  
 

Examples:

  • substantial roof replacement
  • extension to an existing building.

Examples:

  • replacing a small section of broken water pipe
  • minor repairs to floor covering.

 

To help decide whether a project is capital or maintenance, assess the volume change required. For example, if:

  • a few sheets of roofing iron need replacing, this is maintenance
  • most of the iron needs replacing (so that in effect the building needs a whole new roof), this is capital replacement and the work comes under priority 2, essential infrastructure.

Cyclical maintenance

Cyclical maintenance is significant maintenance work that schools do on a cycle or regularly, but not every year. The most common example is painting the outside of school buildings, which is usually done every 7 to 10 years.

You can use the Cyclical Maintenance Calculation Template [XLSX, 22 KB] to help you calculate how much funding to set aside each year for each cyclical maintenance project.

Budgeting for painting as cyclical maintenance

Painting a school is a substantial cost. You must set aside a portion of your Property Maintenance Grant funding every year to build up a fund for repainting the school. Otherwise you may struggle to come up with the money later.

To budget for painting:

  • schedule painting buildings on a rotational basis. If buildings are painted in different years, it’s easier to manage your budget
  • consider regional factors affecting your school when organising painting (eg. sea spray corrosion in a coastal school) and choose the appropriate tools and materials
  • consider scheduled painting against any planned capital works. For example, if a refurbishment is planned in the next few years, then schedule painting for after that work.

Using your caretaker for cyclical maintenance

If your caretaker regularly does your painting or other cyclical maintenance, such as during the school holidays, make sure you plan for this type of work.

This work is covered by the caretaker’s wages (from the school’s Operational Grant funding). Do not include it in the 10YPP or pay for it out of the Property Maintenance Grant.

Long-term maintenance contract for cyclical maintenance

Some boards enter into a long-term maintenance contract for the school’s cyclical maintenance work every year or according to a longer-term plan. You need to complete the 10YPP summary maintenance schedule to show when your cyclical maintenance is scheduled.

Some long-term maintenance contracts include a financing arrangement. This must be within your school’s borrowing limits and disclosed appropriately in financial statements.

Cyclical capital work

Some major capital items at schools are regularly replaced, such as heating systems, roofing and fit out. You must plan for this from your 5 Year Agreement (5YA) funding.

Budget checklist

Check you have considered everything about the budget that you need to.

  • Spending matches funding. The value of the final 10YPP projects list can be more than the board's projected funding, but you must note that certain projects will only go ahead if savings are made on the other projects or funds are raised from other sources. Note these projects with no funding figures.
  • You have allocated capital funding for capital projects and maintenance funding for maintenance work. (Note: Maintenance funding can be added to a capital project if all maintenance needs are met, or where work overlaps.)
  • The budget:
    • provides for cyclical maintenance
    • shows project costs (as accurately as possible) including all professional and local authority fees
    • shows projected discretionary funding, such as community and fundraising, and what it is to be used for
    • lists projects that are currently not affordable but are planned for a future 10-year cycle
    • includes spending forecasts for projects using 5YA
    • includes spending forecasts for projects using SPG
    • includes spending forecasts for roll growth
    • includes spending forecasts for catastrophic loss / risk management projects
    • includes spending forecasts for property modifications for students with special education needs
    • includes spending forecasts for rationalisation.

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