Capital funding for integrated schools

The school’s proprietor is responsible for capital work. Board funding and attendance dues may be used to pay for this work in some circumstances.

Paying for capital work at integrated schools

Proprietors are responsible for capital work at their schools. This is a requirement under section 456 of the Education Act 1989.

The Ministry provides Policy One funding to the proprietor for capital maintenance and modernisation projects.

Policy One funding for capital work

We sometimes provide Policy Two funding so that the proprietor can build new school buildings.

Policy Two funding for new buildings at integrated schools

Proprietors can't ask the board to pay for capital work that they're responsible for. That would mean the Crown, through funding provided to the board for maintenance and operational costs, would be:

  • paying for property owned by the proprietor, and
  • relieving them of their capital responsibilities.

Using board funding for capital work

However, the board can sometimes pay for and own capital work using its surplus operational funding. It can only do so if it can demonstrate it also has enough funding to cover all of the school’s:

  • maintenance work
  • operational costs.

The board must get permission from both the proprietor and the Ministry. For permission to be granted:

  • the building must be recorded as a board-owned asset (not the proprietor’s)
  • the board must meet any borrowing and ownership requirements in Schedule 6 clauses 32 and 34 of the Education Act 1989
  • the work must not free the proprietor of any obligation they may have for the same work under the Integration Agreement.

Using attendance dues for capital work

Proprietors can use attendance dues:

  • to bring your property up to minimum standards
  • for any other work that falls within section 447(3) of the Education Act 1989, such as paying mortgages over the integrated property.

Minimum property standards

Proprietors can't use attendance dues to improve the school’s property above the standard set out in the integration agreement.

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