Circular 2017/07 - Private School Subsidy Funding 2018
This circular provides schools with information about private school subsidy funding for 2018.
Date 12 September 2017 | Circular 2017/07 | Category Resourcing
This circular is about Private School Subsidy Funding for 2018
This circular replaces Private School Subsidy Funding 2017
The action needed is Please note the information.
It is intended for Proprietors and principals of private schools.
For more information Enquiries about the private school subsidy should be directed to the Ministry of Education's contact centre:
Contact Centre
Resourcing Division
Ministry of Education
PO Box 1666
Wellington
Phone 04-463 8383
Fax 04-463 8374
Email resourcing@education.govt.nz
Introduction
This circular provides schools with information about private school subsidy funding for 2018.
School financial year and payment schedule
The 2018 funding year commences on 1 January 2018 and concludes on 31 December 2018. Quarterly instalments will be paid in advance, at the beginning of each funding period, as shown below.
| Date paid (2018) | Period covered | Number of months funded | Percentage paid of remaining grant |
|---|---|---|---|
| 3 Jan | January - March | 3 months | 25.0% |
| 2 Apr | April - June | 3 months | 33.3% |
| 2 Jul | July - September | 3 months | 50.0% |
| 1 Oct | October - December | 3 months | 100.0% |
This payment method ensures that when an entitlement is adjusted, either up or down, the board of trustees will receive 100% of the school’s entitlement in the current year.
Change of bank account number
If a school’s bank account number changes, a Change of Bank Account Form must be completed and sent directly to:
The Finance Division, PO Box 1666, Wellington.
Forms are available on the operational funding payments page.
GST queries
Operational funding entitlement and instalment notices display the entitlement for each component as a GST exclusive amount. This change was implemented in 2012 to support schools in their financial planning.
Boards are required to account for GST on the full amount received. If you have questions about GST or other tax obligations, please consult Education Centres: A Tax Guide for Organisations that Provide Education (IR253), available from the Inland Revenue Department’s website at www.ird.govt.nz(external link).
Per student subsidy rate calculation
Calculation of rate
Subsidy funding is provided at a set rate per student.
The per-student rate is set by taking the fixed Government appropriation – currently set at approximately $47.8 million – and dividing it by the likely demand.
The likely demand is the mid-point between the actual roll and schools’ predictions of the roll for the following year. For 2018, this is the 2017 actual roll and schools’ predictions of the 2018 roll.
Per-student subsidy rates for 2018
The per-student rates are set at four levels to recognise the cost of curriculum delivery at each year level.
This table shows the per-student subsidy rates for the 2018 year.
| Year level | 2018 funding rate GST exclusive | 2018 funding rate GST inclusive |
|---|---|---|
| Years 1-6 | 978.30 | 1,125.04 |
| Years 7-8 | 1,071.29 | 1,231.98 |
| Years 9-10 | 1,371.01 | 1,576.66 |
| Years 11-15 | 2,082.22 | 2,394.55 |
Rolls used for funding provision
Funding roll
Boards are funded on what is considered to be the peak roll.
- July roll - primary schools
- March roll - intermediate, area, composite and secondary schools
Predicted funding roll
Until the appropriate roll is available, boards receive a provisional funding allocation using their predicted roll. The predicted roll is a school’s estimate of student numbers. This roll is submitted with the July roll return in the previous year.
Funding is reallocated once the peak roll is available.
New entrant adjustment
A new entrant adjustment is added to the actual roll for primary and composite schools. This adjustment is used to estimate the number of new entrants likely to enrol between the date of the roll being used and 10 October. A factor is applied to the year 1 roll with the result rounded up to the nearest whole number.
- Where a March roll is used, a new entrant factor of eleven-twelfths is applied to the year 1 roll. The result is rounded up to the nearest whole number.
- Where a July roll is used, a new entrant factor of five-eighteenths is applied to the year 1 roll. The result is rounded up to the nearest whole number.
Rolls used to calculate funding payment
| School type | January instalment | April instalment | July instalment | October instalment |
|---|---|---|---|---|
| Primary | Predicted roll submitted in July roll return | Predicted roll submitted in July roll return | Actual roll submitted in March 1 roll return | Actual roll submitted in July 1 roll return |
| Intermediate, area/composite, secondary |
Predicted roll submitted in July roll return | Predicted roll submitted in July roll return | Actual roll submitted in March 1 roll return | Actual roll submitted in March 1 roll return |
Other grants and supplementary resources
NCEA
The NCEA grant is provided at a per-student rate for Year 11 - 13+ students.
| Year level | 2018 funding rate GST exclusive | 2018 funding rate GST inclusive |
|---|---|---|
| Years 11-13+ | 5.82 | 6.70 |
ORS
Boards receive funding for students verified as having high or very high ongoing special education needs through the Ongoing Resourcing Scheme (ORS). This is equivalent to the ORS staffing entitlement for state and state integrated schools.
Contact your local Special Education Office for further information.
Kiwisport
The Kiwisport component is provided at a per-student rate to assist with:
- increasing the numbers of school-age children participating in organised sport – during school, after school and by strengthening links with sports clubs
- increasing the availability and accessibility of sport communities for all school-aged children.
| Year level | 2018 funding rate GST exclusive | 2018 funding rate GST inclusive |
|---|---|---|
| Years 1-8 | 13.36 | 15.37 |
| Years 9-13+ | 24.14 | 27.77 |
MLP
Boards receive funding for students enrolled in Māori Language Programmes (MLP) that meet all the criteria for one of four immersion levels.
Only students enrolled in levels 1 - 4 (including 4b) generate MLP funding.
| Immersion level | Māori immersion – curriculum taught in Māori |
|---|---|
| 1 | 100% of time ie, complete immersion (25 hours per week); or 81–100% of total time, ie, for more than 20 and up to 25 hours for primary schools and 22.5 hours for secondary and composite schools per week. |
| 2 | 51–80% of total time, ie, for more than 12.5 and up to 20 hours per week |
| 3 | 31–50% of total time, ie, for more than 7.5 and up to 12.5 hours per week. |
| 4a | 12%–30% of total time, for more than 3 and up to 7.5 hours per week (ie, more than 70% of instruction is in English). |
| Immersion level | Te Reo Māori - Māori language taught as a separate subject |
|---|---|
| 4b | At least three hours per week |
| 5 | Less than three hours per week. |
| Immersion level | Taha Māori – cultural programme |
|---|---|
| 6 | Māori songs, greetings and simple words |
Boards are initially funded for the number of students predicted by the school in each MLP level. Funding is recalculated once actual numbers of students taught at each level have become available.
MLP funding rate
| Immersion level | 2018 funding rate GST exclusive | 2018 funding rate GST inclusive |
|---|---|---|
| Level 1 | 975.72 | 1,122.08 |
| Level 2 | 476.18 | 547.61 |
| Level 3 | 256.65 | 295.15 |
| Level 4 | 62.30 | 71.65 |
Export Education Levy
The Export Education Levy is payable by any education provider that enrols international fee-paying students. This includes private schools. The Levy is calculated as 0.45% of tuition fee income (excluding GST). State and state-integrated schools pay the Export Education Levy as a component of their International Student Levy.
The export Education Levy goes to an export education fund used by the industry for the promotion, capability development, research, and quality assurance of export education Levy Collection Process.
Levy Collection Process
The ENROL database is used to calculate the Export Education Levy. All international fee-paying students who pay a tuition fee to the school must be recorded on ENROL regardless of the number of tuition weeks they are enrolled for. The only exception is for students on visitor’s visa who are in New Zealand for 2 weeks or less and do not pay the school any fee and also GROUP students who are hosted by your school. (GROUP students are reported on an RS13G spreadsheet which can be obtained by emailing accountsreceivable.enquiries@education.govt.nz).
Because ENROL is being used to calculate the Export Education Levy, schools are required to enter a “Weekly Tuition Fee (GST excl)” for each international student. This is because the Export Education Levy is based on tuition fees.
The Export Education Levy is collected on a trimester basis. This means that schools will have the deduction of the levy spread over 3 trimesters.
Nominal start and end dates to the school year are used in the calculation of the levy so that the correct levy amount is calculated over the year.
Private schools will be emailed shortly after the end of each Trimester an RS16P spreadsheet which will list all international fee-paying students you had enrolled in the Trimester. This allows the school to check the accuracy of the list of students. One week later schools will be emailed the final RS16 spreadsheet which will be used to determine the final amount of levy to be deducted
Trimester 1
For 2018, Trimester 1 will use the nominal start date of 29 January and go through to 13 April. The levy amount due will be deducted from the July subsidy payment to private schools.
Trimester 2
Trimester 2 covers the period from 1 May to 31 July. The levy amount due will be deducted from the October subsidy payment to private schools.
Trimester 3
Trimester 3 covers the period from 1 August to the nominal end date of the school year. The nominal end dates for 2018 are 17th December for primary/intermediate schools and 10th December for secondary/composite/special schools. The levy amount due for Trimester 3 will be deducted from the subsidy payment to private schools in the January of the following year.
Further information
For any enquiries or additional help please contact:
Invoice and Billing Enquiries:
Email: accountsreceivable.enquiries@education.govt.nz
Policy Enquiries:
Email: international.division@education.govt.nz
Issued by
John Clark, Group Manager Resourcing Division, Te Wāhanga Whakarato Rawa
Ministry of Education, Mātauranga House, 33 Bowen Street, Wellington, P O Box 1666, Wellington 6140, New Zealand, Phone 04-463 8000, Fax 04-463 8001, Email resourcing@education.govt.nz
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