Treatment of Board Contributions MOE Capital Works

MOE Capital Works - The School Office

Treatment of Board Contributions MOE Capital Works

A funding contribution can range from a school board contributing a small sum to a ministry-funded capital works project to expand or enhance on ministry design specification, through to ‘shared ownership’ capital works projects where the school board, in conjunction with the ministry, contributes to a large school property development.

Funding contributions may be one of two types:
* “Donation” – a contribution towards an upgrade of a ministry-owned and maintained asset.
* “Investment” – a contribution towards the creation of a new asset or enhancement of an existing asset owned and maintained by the school board or owned and maintained partly by the ministry and partly the school board.

Where the capital works project is run by the ministry, and the school board has agreed to the contribution for specific enhancements or developments, then the school board will receive a GST-inclusive invoice for its contribution.

Where the school runs the capital works project, then school must declare what it spent on the project at its conclusion to the ministry.

Where the contribution is a “Donation” then the invoice must be treated as a distribution to the Crown through the Statement of Changes in Net Assets/Equity. GST on the invoice must be accounted for accordingly.
Where the contribution is an “Investment” then the expenditure must be capitalised in the school’s fixed asset register as well as GST being accounted for accordingly.

Overseas Trips

Overseas Trips

When schools plan an overseas trip there may be additional information required for the financial statements. In this blog post we outline a few key points to keep in mind when planning trips.

The board must approve any overseas trips that are planned by the school. An overseas trip can be funded through Crown funding or locally raised funds (i.e. through fundraising or parental contributions).

A board may use Crown funding (as opposed to locally raised funds) for overseas travel if they can demonstrate that the two main conditions have been met:
* the overseas travel supports student achievement
* they have considered the proposed spending against competing priorities

Before approving any travel, the board must complete the Funding Overseas Travel Using Crown Funding Checklist, refer to Appendix C in the FISH.

The board must keep the signed and completed checklist, along with the board minutes of each decision and make these available for audit purposes. All expenditure should be accounted for and receipts
returned following the trip.

Examples of overseas travel that may further student achievement include but are not limited to: visiting the site of a significant cultural event (e.g. a battle where the school community had significant casualties), senior Māori groups visiting Pacific Islands where ancestral stories originate (e.g. Tahiti), or language students visiting a country where the language of study is primarily spoken.

If the travel is significant to your expenditure for the year it will need to be separately disclosed in the annual financial statements.

Xero Business Community – Feature Request

Xero Business Community – Feature Request

As discussed at the recent TSO Training Days, we have submitted a Xero Feature Request asking for bank account numbers validated when entered in Xero. Xero address issues that are endorsed / voted by other users.

This is the request:

Contact Bank Account Validations
Would Xero please add a facility whereby the bank account number is validated at time of entry into contact details.
When a payment batch is processed that has an incorrect contact bank account, it can take some time to locate which contact has the error.

Other accounting software validates the bank account number using the formats supplied by the NZ banks.

Please follow click on the link here to vote.

Join the TSO Team

Join the TSO Team - The School Office

Join the TSO Team

Our client database continues to increase as do requests for additional work from current clients.

We would like another team member to join us initially on a part-time basis. A knowledge of school administration is preferred along with experience using Xero and Microsoft Office. Duties include Xero support, assistance with schools’ finances and administrative tasks – all of which will be taught to the right person.

This position is ‘cloud-based’; meaning you will work from your preferred location.

Please contact Glenis ( / 07 533 4182) to discuss further.