A school’s annual financial statements are now required to disclose the time that board of trustees’ members spend on board activity (expressed as a FTE). The requirement is due to new accounting standards for all New Zealand entities. It was issued by the External Reporting Board which is an independent body. Boards of trustees were required to report against these standards for the first time in their 2015 annual financial statements. For the 2015 annual financial statements an estimate of the FTE was acceptable. The calculation for 2016 and subsequent years cannot be estimates.
In order to have this information available for the 2016 Accounts Preparer, we recommend it is recorded as activities occur during the year.
Examples of Activities:
- Monthly Board Meetings (including preparation time)
- Monthly Committee Meetings (Finance, Property etc.)
- Meetings with Principal (usually the Chair)
- HR Interviews & Principal Appraisal
- Suspensions / Stand-downs
The School Office has formulated a simple spreadsheet to assist with this recording. Should you wish a copy, please send your request to: firstname.lastname@example.org