Appendix 3: Breaches of laws and regulations

Results of the 2017 school audits

We ask our auditors to consider whether schools are complying with particular requirements of the Education Act 1989 and Crown Entities Act 2004, which relate to financial reporting. This appendix sets out those schools where auditors identified breaches of these legislative requirements in the school's 2017 financial statements.

References are to the Education Act 1989 unless stated.

The asterisk indicates schools that also breached laws in the same area in the previous year.

Borrowing – Clause 29 of Schedule 6

Baradene College Moerewa School*
Baverstock Oaks School Monte Cecilia School (Mount Roskill)
Bayview School New Lynn School*
Belmont School (Auckland)* Ngata Memorial College
Berkley Normal Middle School Northland College*
Bombay School Ohau School
Browns Bay School Orere School
Bunnythorpe School Parklands School
Castlecliff School* Ponsonby Primary School*
Dipton School Puni School
Dominion Road School Russell School (Bay Of Islands)*
Elm Park School* Saint Joseph's School (Grey Lynn)
Epsom Normal School* Saint Joseph's School (Takapuna)
Fairfield School (Dunedin) Saint Mary's College (Ponsonby)
Ferndale School South Auckland Seventh Day Adventist School*
Golden Bay High School South End School*
Hadlow Preparatory School Sunnyvale School*
Havelock School* Sutton Park School
Kakaramea School Taipa Area School*
Kelston Intermediate School* Taupo Intermediate School
Laingholm School* Te Kao School*
Linton Camp School Tokomairiro High School
Mangatawhiri School Waitara Central School*
Martinborough School Wakaaranga School
Wanganui Collegiate School*

We also made reference to breaches of the borrowing limit in the audit reports for Northland College and Hastings Intermediate School for the year ending 31 December 2016.

Payments outside the Education Service Payroll – section 89(2)

Herekino School* Opua School
Kaikohe East School Pukepoto School*
Northland College Te Kura o Hato Hohepa Te Kamura*

Loans to staff – Clause 28 of Schedule 6

Te Kura Kaupapa Māori o Tamaki Nui A Rua* Te Kura-a-iwi o Whakatupuranga Rua Mano*
Te Kura Kaupapa Māori o Tapere Nui A Whatonga* Te Waha o Rerekohu Combined Schools Board

Investments – Clause 28 of Schedule 6

Christchurch Boys' High School Northland College
Christchurch Girls' High School Paengaroa School

We also made reference to investments held by Timaru Boys' High School without approval in the audit reports for the school for the years ending 31 December 2015 and 2016.

Conflict of interest – section 103 and clause 40(8)(9)(10) of Schedule 6 [clause 8(8) of Schedule 6]

Foxton Beach School Rangitikei College*

Banking arrangements (section 158 of the Crown Entities Act 2004)

Te Kura Kaupapa Māori o Nga Uri a Maui* Wanganui City College

We also made reference to breaches of banking arrangements in the audit report of Saint Joseph's School (Upper Hutt) for the year ending 31 December 2016.

Other breaches of legislation

School Type of breach
Saint Mary's School (Palmerston North) Breach of clause 36 of Schedule 6 and section 460 of the Education Act 1989. The board has leased a portion of the Integrated Land to outside parties. However, the board does not hold approval for such an action.
Linton Camp School The School is in breach of section 103 (3) of the Education Act 1989, which states that "any permanently appointed member of the board staff may, if otherwise eligible for election, be elected as a staff representative; but no permanently appointed member of the board staff may be otherwise elected to the board or be appointed or co-opted on to the board". During the year, the school had one additional staff member on the Board of Trustees.