Quick reference guide: How to account for new and existing Ministry funding and programmes

This guide will help you to record funding in your annual financial statements from our new and existing initiatives, programmes and funding support. We will update this guide for new funding streams regularly.

Free period products in schools and kura

Poor access to period products can affect attendance and engagement at school. The access to period products initiative provides free sanitary items to students in schools and kura across New Zealand.

Ikura | Manaakitia te whare tangata: Period products in schools and kura

How to record in your financial statements

We will send you the journal entry required for your year-end financial statements to record the period products received. This information will be provided on the Secure Data Portal in early February 2024.

Secure Data Portal(external link)

Entry Details
DR  Expense – Administration
CR Revenue – Government grants

Ka Ora, Ka Ako | Healthy school lunches programme

Ka Ora, Ka Ako is about being healthy and well in order to be in a good place to learn. The programme provides a free and healthy lunch every day to students that fall within the highest 25 percent of socio-economic disadvantage in schools and kura across New Zealand.

The main tool used to determine the socio-economic barriers present in a school’s community is the Equity Index.

Ka Ora, Ka Ako | healthy school lunches programme

How to record in your financial statements

Where your school or kura has opted to use the 'external model' for the supply of lunches, we will send you the journal entry required for your year-end financial statements to record the free school lunches received.

This information will be provided on the Secure Data Portal in early February 2024.

Secure Data Portal(external link)

Entry Details
DR  Expense – Administration
CR Revenue – Government grants

Where your school or kura has opted to use the 'internal model', relevant financial information will have been provided during the year as payments were received.

Teacher aide pay equity claim and the support staff in schools collective agreement

We are providing additional funding to schools and kura for both the teacher aide pay equity settlement and the support staff in schools collective agreement settlement.

The additional funding is provided specifically to enable boards to pay all eligible teacher aides and eligible support staff the new pay equity rates.

How to record in your financial statements

You have received these payments throughout the year. They can be found in Pourato under the 'funding summary' tab with the narrative 'non-teach support PE and CA funding'.  

Entry Details
DR  Expense – Salaries (Learning resources or administration)
CR Revenue – Government grants MOE

Contingency note

The following contingency note (note 27 in Kiwipark) should be added into your annual financial statements.

  • Where your financial statements have already been provided to your auditor, these adjustments, where material, can be made in conjunction with any audit adjustments.
  • Where your financial statements are currently being prepared by your service provider, please provide a copy of this quick reference guide.

Where to find information

See more information about the teacher aide pay equity settlement:

Teacher aide pay equity claim

See more about the support staff in schools collective agreement settlement: 

Support Staff in Schools' Collective Agreement

Te Mana Tūhono

Te Mana Tūhono programme offers all schools and kura the opportunity to upgrade their network hardware.

Schools can opt-in to have their ICT network equipment replaced when it is reaching the end of its life, access support to manage cybersecurity, and access help and support from N4L for ICT network issues.

This programme gives schools the confidence to offer their students a safe and secure online environment to take their NCEA exams online.

Te Mana Tūhono

Get in touch – Network for Learning(external link)

How to record in your financial statements

We will be paying for all the equipment and the installation costs on behalf of schools and schools will be invoiced upon completion of the installation at $2.50 per student per annum.

The $2.50 per student charge should be expensed each year as this is seen as a service charge for equipment support, equipment replacement and secure access to the network. You should code to 'Expense – Administration'.
Schools and kura need to obtain confirmation of the value of the equipment at the time of installation by contacting Te Mana Tūhono team.

Schools and kura should treat equipment installed (for example, switches and wireless access points) as part of Te Mana Tūhono by recording an asset and an equity contribution from the Ministry.

Entry Details
DR  Asset – Equipment
CR Equity – Contribution from Ministry

The equipment should be depreciated in accordance with your asset depreciation policy.

CO2 monitors and air purifiers

About CO2 monitors and air purifiers

In 2022, we distributed more than 12,000 portable CO2 monitors and 13,000 portable air cleaners to state and state-integrated schools to support them with good ventilation and as part of our response to COVID-19. These devices were provided at no cost to schools. 

All schools that have received devices are to record them on their fixed asset register. Schools are responsible for any ongoing maintenance, consumables or replacement devices. 

How to record in your financial statements

We will send you the journal entry required for your year-end financial statements to record the cost of the CO2 monitors and air purifiers supplied and paid for by the Ministry of Education.

This information will be provided on the Secure Data Portal in early February.

Secure Data Portal(external link)

Please note CO2 monitors and air purifiers should be depreciated over their estimated useful life on a straight-line basis. The expected useful life for CO2 monitors and air purifiers is 4 years. 

Entry Details
DR  Fixed assets
CR Revenue – Government grants

Where to find information

Find more information about CO2 monitors and air purifiers:

Device support – Te Mahau(external link)

If you have further questions, contact your Ministry property adviser or ventilation.mailbox@education.govt.nz.

Statutory intervention funding

A statutory intervention is a way that the Ministry supports schools and kura needing help with operational risks or risks to the welfare or educational performance of their students. 

The aim of any intervention is always to return the school to full self-governance as soon as the recommendations and objectives of the intervention have been met. When an intervention is in place, the day-to-day running of the school remains with the principal.

The level of financial support provided by the Ministry to fund the statutory intervention is dependent on the financial position of the school or kura.

You can find more information about statutory interventions:

Support for boards

How to record in your financial statements

Where we have made a financial contribution to a statutory intervention, we will send you the journal entry required for your year-end financial statements.

This information will be provided on the Secure Data Portal in early February 2024. 

Secure Data Portal(external link)

Entry Details
DR  Expense – Administration
CR Revenue – Government grants

Quarter 1 funding adjustments

An adjustment relating to the prior financial year may be included in your 2024 quarter 1 funding.

There are 2 types of possible adjustments:

  • the annual adjustment
  • the extraordinary roll growth.

The annual adjustment occurs when something in your roll has changed between the calculation of your quarter 4 funding and the end of the year. For example, you have had a roll audit completed which adjusted your roll for the year.

Extraordinary roll growth funding results from an application based process.

These quarter 1 funding adjustments, while paid in January, relate to the prior financial year and as such should be accounted for in your end-of-year financial statements as a payable or receivable.

Find more information about quarter 1 funding adjustments: 

Operational entitlement and instalments

How to record in your financial statements

You can see these adjustments in Pourato under the current calendar year under the 'funding summary' tab.

These adjustments are only required if the amount is material to your financial statements.

The adjustment results in a receivable from the Ministry

Entry Details
DR  Receivables – Receivables from the Ministry of Education
CR Revenue – Government grants

The adjustment results in a payment to the Ministry

Entry Details
DR  Revenue – Government grants
CR Revenue received in advance – Other
  • Where your financial statements have already been provided to your auditor, these adjustments, where material, can be made in conjunction with any audit adjustments.
  • Where your financial statements are currently being prepared by your service provider, please provide a copy of this quick reference guide and the required funding details from Pourato.

Public sector pay adjustment 2023

On 30 November 2023, schools received estimated top-up funding to cover the costs associated with the public sector pay adjustment.

This funding is to support additional costs incurred between 1 December 2023 and 31 March 2024.

This funding spans financial reporting periods at balance date, so a liability is required to be recorded for the portion that relates to the 2024 financial year. The funding is provided for 122 days and 91 days relate to the 2024 financial year.

For example, on 30 November 2023 you received $43,372.99 (GST exclusive) in funding.

To calculate the end of year liability, you would complete the following calculation:

$43,372.99 divided by 122 days (equals $355.52 per day), then multiply this by 91 days.

Your end of year liability will be $32,351.98.

How to record in your financial statements

You can see this receipt in Pourato under the funding summary drop down of the 'funding' tab.

This adjustment is only required if the amount is material to your financial statements.

Entry Details
DR  Revenue – Government grants
CR Revenue received in advance – Other
  • Where your financial statements have already been provided to your auditor, these adjustments, where material, can be made in conjunction with any audit adjustments.
  • Where your financial statements are currently being prepared by your service provider, please provide a copy of this quick reference guide and the required funding details from Pourato.

Public sector pay adjustment back pay 2023

In March 2024, staff impacted by the public sector pay adjustment will receive a back pay for the period of 1 December 2022 to 30 November 2023.

Schools will be funded for this in February 2024 with payment to staff occurring on 5 March 2024.

A large portion of this payment relates to the 2023 financial year and as such, a balance date liability will be needed to be made for the portion that relates to the 2023 financial year.

It has been confirmed that the December 2022 portion is unlikely to materially impact a school and the liability for 2023 will be from 1 December 2022 to 31 December 2023.

How to record in your financial statements

This information will be provided to you in late February 2024 and will be able to be seen in Pourato under the funding summary drop down of the 'funding' tab. There are 2 journal entries to make.

This adjustment is only required if the amount is material to your financial statements.

To record the back pay expense and year-end accrual

Entry Details
DR 

Expenditure – Curriculum resources, employee benefits, salaries

CR

Accounts payable – Accruals

To record the back pay income and receivable from the Ministry of Education

Entry Details
DR 

Accounts receivable – Receivables from the Ministry of Education

CR

Revenue – Government grants

  • Where your financial statements have already been provided to your auditor, these adjustments, where material, can be made in conjunction with any audit adjustments.
  • Where your financial statements are currently being prepared by your service provider, please provide a copy of this quick reference guide and the required funding details from Pourato.

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