Finance and Asset Management Policy

The board of St Joseph's School manages school finances and assets in a way that is financially responsible (Education and Training Act 2020, s 127). We ensure that financial decision-making reflects our strategic objectives, focusing on meeting student needs and supporting teaching and learning.

The board ensures that income and expenditure is clearly linked to the business of the school, and aims to reduce the risk of mistakes, fraud, and theft through a system of internal controls. We ensure appropriate segregation of duties for financial tasks, that the board and principal work together to understand and act on key financial information, and that any delegations are authorised, recorded, and monitored.

The board complies with legislation on financial matters, including regular monitoring and reporting of financial procedures, preparing annual financial statements and sharing these with our school auditor, and having clear and effective processes for management of public funds. We manage school assets to ensure these are in good working order, and have plans for maintenance and replacement when required. We maintain school assets according to our budget and make well-informed financial decisions to best support outcomes for our students.

Proprietor responsibilities

The proprietor of St Joseph's School owns, holds upon trust, or leases school buildings and land, and is responsible for any insurance costs and improvements required (e.g. due to roll increase) as specified in the integration agreement.

The proprietor and board have a joint responsibility to ensure school buildings and land are safe, are not in need of repair, and meet all statutory, regulatory and Ministry design standards. The board consults with the proprietor about proposed changes to school buildings and grounds.

Board responsibilities

The board of St Joseph's School is responsible for setting the strategic goals of the school, and managing school finances and assets to achieve these goals in a financially responsible way. As part of responsible financial decision-making, the board also:

establishes and maintains financial policies for the school
monitors the financial performance of the school
allocates resources to achieve school goals through the school budget
ensures, in partnership with the proprietor, that the school is appropriately managed and insured (e.g. assets, liability)
ensures that annual reports are prepared, audited, and filed with the Ministry of Education by 31 May each year.

The board acknowledges that it is responsible and accountable for financial decision-making. Each board member has an individual responsibility to understand school finance policies and key financial information. The board as a whole is ultimately responsible for the financial management of the school. Where the board delegates responsibilities to the principal or another staff member, this is by board resolution, the delegated person or group is notified in writing, and the board monitors delegated financial tasks. The board reviews delegations annually.

The board may delegate the implementation of financial policies and day-to-day financial management to the principal, and may appoint a financial service provider. The board does not delegate the general power of delegation, or the power to borrow money.

Borrowing

If the board borrows money to support school operations, it only borrows within the limits set by section 155 of the Education and Training Act 2020, and the conditions specified in regulation 12 of the Crown Entities (Financial Powers) Regulations 2005.

The board ensures that borrowing does not exceed 10% of the operational funding (excluding GST) that the school receives from the Ministry of Education. The combined principal and interest costs must not exceed the 10% threshold. If the school seeks to borrow money (including finance leases and programmed maintenance contracts) where the total annual debt servicing would be more than 10% of the operational funding for the year, we make a written application and require joint approval from the Minister of Education and Minister of Finance.

Principal responsibilities

The principal maintains robust financial systems at our school, understands key financial information about the school, and reports to the board to ensure the financial position of the school can be accurately determined. As part of day-to-day financial management of the school, the principal:

implements financial policies
monitors school expenditure
reports regularly to the board on financial management
ensures annual financial statements are prepared and audited to meet legislative requirements.

The principal may delegate financial management tasks to other staff, such as a school administrator. The principal is ultimately responsible for ensuring financial records and reporting are complete and accurate.

Related policies

Legislation