Inquiry into state schools requesting payments in connection with out-of-zone places – follow-up work

25 September 2020

Katrina Casey
Deputy Secretary, Sector Enablement and Support
Ministry of Education
PO Box 1666
Wellington 6140

Tēnā koe Katrina

Inquiry into state schools requesting payments in connection with out-of-zone places – follow-up work

In 2017, we published a report that looked at payments some state schools were requesting in connection with applications for out-of-zone places.¹ Our work confirmed that some schools applied practices that were inconsistent with the fundamental principle of free enrolment in a state school.

We recommended that the schools change their practices and update the information they were giving to parents and caregivers to align it with guidance published by the Ministry of Education (the Ministry). We also recommended that the Ministry review its guidance to make sure it was communicated clearly and consistently. In response to our 2017 inquiry, the Ministry told us that it intended to review and update its guidance.

We have followed up with the Ministry and the schools to see what changes have been made. We are pleased that the Ministry has improved its guidance so schools, parents, and caregivers receive clear and consistent advice on payments connected with out-of-zone places. This type of clear and open communication builds trust in how access to education is being administered, and helps foster overall confidence in the education system.

We are also pleased that all the schools we looked at for our 2017 inquiry have made changes in line with our recommendations. The schools have updated their out-of-zone enrolment practices and the information that they give to parents and caregivers of prospective students. No schools received enrolment payments for the 2019 or 2020 school years, and only one school received enrolment payments for the 2018 school year.

Background

How enrolment in state schools works

Section 3 of the Education Act 1989 (the Act) states that every school-aged person who is not an international student is entitled to free enrolment and free education at any state school.² The Act does not specify what free enrolment and free education means.

The Act allows schools to create enrolment schemes that define the geographic boundaries of the school’s home zone. Students who live in the home zone have a right to enrol at the school.³ Different rules and processes apply to students who live outside the home zone (out-of-zone students). Some schools with enrolment schemes do not accept any out-of-zone students. Where schools do accept out-of-zone students, the school boards of trustees will decide how many out-of-zone places will be available in each school year (after assessing how many in-zone places will be required). Some boards might decide that out-of-zone places are available only at specific year levels.⁴

Schools that accept out-of-zone students must do so according to prioritisation criteria set out in the Act. Where there are fewer applicants in a particular priority group than the total number of remaining out-of-zone places, those applicants must be offered a place. This continues through the priority groups until there are more applicants in a priority group than places available.⁵ Selection in that priority group must then be done by an independently supervised ballot.⁶

At the time of our 2017 inquiry, the Ministry’s guidance about what payments schools could lawfully collect from parents and caregivers was presented as a one-page flowchart. The flowchart was included as a link in the Ministry of Education’s Circular 2013/06, Payments by parents of students. The flowchart (which was described as supplementing the Ministry’s circular, but not forming part of it) clearly stated that out-of-zone fees or out-of-zone ballot fees were unlawful, but it suggested schools could ask for donations in connection with out-of-zone places. The flowchart used small print and colours to distinguish between the different types of payments that schools could seek from parents. This design might have made the guidance difficult to read and understand unless viewed on a computer screen.

Our 2017 inquiry

In 2016, the media reported that three Auckland-based schools were requesting payments from parents and caregivers who wanted to enter their children in out-of-zone ballots.⁷ We were also asked by a member of Parliament to look at these payments. After an initial investigation, we discovered that there was uncertainty about how schools were requesting the payments, whether payments affected an out-of-zone student’s chances of enrolment, and the extent to which other schools had similar practices. We decided to look more closely at these payments.

As we described in our 2017 work, the main factors for schools and out-of-zone families to know are:

Schools are not allowed to charge a fee in connection with out-of-zone enrolments or describe a payment request as a “fee”, “charge”, or “levy”.
Where schools ask for donations, payment is entirely voluntary. Families have the choice to pay donations in full, in part, or not at all.
Schools cannot insist on payment or enforce payment in any way. They should also not do anything to suggest that being included in the selection process for out-of-zone places or gaining a place is conditional on making a payment.
If a family chooses not to pay, this should not affect their child’s chances of gaining an out-of-zone place.

Our inquiry was focused on enrolment practices for the 2016 and 2017 school years and was limited to payments connected with out-of-zone places. We did not look into school donations more generally.

As well as the three schools named in media articles, we identified two more schools that were seeking fees or donations in connection with out-of-zone enrolments. We identified these two schools after carrying out a targeted survey of state schools in main centres throughout the country. As a result, our inquiry looked at five schools. Those schools were:

Mount Albert Grammar School;
Auckland Grammar School;
Epsom Girls Grammar School;
Kohia Terrace School; and
Cornwall Park District School.

Our inquiry found that those schools either:

requested a “donation for administrative purposes”, where we concluded that the voluntary nature was not always clearly communicated to parents and caregivers (Mount Albert Grammar School, Auckland Grammar School, and Epsom Girls Grammar School); or
required an out-of-zone “administration fee”, which we found was contrary to the Ministry’s guidance (Kohia Terrace School and Cornwall Park District School).

We found that the information provided to parents and caregivers by the schools was not as clear as it could be. The language used could have caused confusion about whether the requested payment was voluntary. We also found that the Ministry’s guidance was not always clear and consistent, and gave mixed messages about what the schools could request or what was required to be paid. We made recommendations to the Ministry and the schools about how improvements could be made.

Our follow-up work

We decided to carry out follow-up work to assess whether the schools had acted on our recommendations and whether the Ministry had taken action to provide clear and consistent advice to schools and families.

We wrote to the five schools to confirm what changes, if any, they had made in connection with the out-of-zone enrolment process since our 2017 inquiry. We asked the schools to provide us with copies of the current enrolment information given to parents and caregivers of prospective students, as well as information about payments received relating to the 2018, 2019, or 2020 school years.

We asked the Ministry whether it was aware of other schools requesting payments, whether concerns had been raised, and what action the Ministry has taken to address any concerns. The Ministry told us that no further concerns had been raised, although it acknowledged that it does not actively check how schools are managing enrolment schemes.

How has the Ministry’s guidance to schools, parents, and caregivers changed?

A new Circular in June 2018

In June 2018, the Ministry released a new Education Circular, Circular 2018/01 — Payments by parents of students in schools. This updated Circular still distinguishes between two basic types of payments that state schools can ask for:⁸

charges – schools can charge only where a student has chosen to purchase goods or services from the school (for example, stationery supplies or food from the school canteen); and
donations – schools can ask for donations as long as it is clear that payment is voluntary. Donations may be for general purposes or for a specific purpose, such as library books or sports equipment. Schools may suggest a donation amount.

The updated Circular included a section specifically on enrolments, which appears to respond directly to the concerns we raised in our 2017 inquiry report. That section says:

Schools cannot:

charge parents for information about enrolment
demand any form of payment to confirm enrolment
include donations as part of a checklist of enrolment forms or show them as a step in the enrolment process.

The intended audience of the updated Circular now includes parents and caregivers. Previously, the intended audience was limited to boards of trustees and principals (state schools) and proprietors (state integrated schools).

The updated Circular’s introduction describes the main changes to the Ministry’s expectations in connection with enrolment costs. This would likely encourage readers to ensure that they read that section to confirm what the changes are.

These new sections on enrolment clearly state that schools cannot enforce or compel payments connected with out-of-zone enrolments, regardless of the name that is applied to the payments. The updated Circular is shorter, the content is presented clearly, and there is little room for confusion. In our view, it is easier for readers to follow and understand the Ministry’s intent because of this clearer presentation.

The Ministry has also removed some sources of potential uncertainty in the “Key Information for parents and schools” section. The previous Circular provided advice on what schools and boards of trustees “may do”, “should do”, or “should not do”. These phrases are typically used to indicate expected good practice, rather than mandatory steps. The updated Circular lists what schools and boards of trustees may do, what they must do, and what they cannot do (as above). The new terminology is less ambiguous and makes the Ministry’s expectations clearer to readers.

The updated Circular includes a summary guide that replaces the previous flowchart. It is clear that the Ministry expects all schools to comply with the updated Circular and use the summary guide to check compliance.

Instructions issued by the Secretary for Education

The Instructions relating to the operation of enrolment schemes, which the Secretary for Education issued under section 11G(1) of the Act, is another source of guidance for schools. At the time of our 2017 inquiry, these instructions did not cover fees or payments connected with out-of-zone enrolments. In July 2017, after our report was published, the Ministry updated the instructions to explicitly state that seeking donations in connection with out-of-zone enrolments was prohibited. In doing so, the Ministry has taken action to ensure that the information it provides to schools, parents, and caregivers is clear and unambiguous.

Other guidance

The Ministry has produced further guidance materials, including advice for boards of trustees and families and whānau, about donations schemes. Although those materials do not directly relate to out-of-zone enrolments, it is pleasing to note that the messages in them is consistent – for example, by stating “fees for enrolments are unlawful in all cases”⁹ and “you never have to make a donation to your school or kura”.¹⁰

What the schools did before and what they are doing now

The five schools we looked at in our 2017 inquiry took one of two approaches when requesting payments for out-of-zone applications. These were:

asking for a “donation for administrative purposes” (Mount Albert Grammar School, Auckland Grammar School, and Epsom Girls Grammar School); or
requiring an out-of-zone “administration fee” (Kohia Terrace School and Cornwall Park District School).

The purpose of our follow-up work was to confirm whether the five schools have implemented the recommendations we made in our 2017 inquiry report.

Schools requesting donations for administration purposes

In our 2017 inquiry, we found that Mount Albert Grammar School, Auckland Grammar School, and Epsom Girls Grammar School asked parents for a donation towards the costs of administering the ballot.

Up until 2017, Mount Albert Grammar School asked for a “$30 non-refundable administration donation” with any out-of-zone enrolment application. The administration donation was referred to in both an information sheet and the application form provided by the school. We concluded that the language used in the application form adequately conveyed the voluntary nature of the payment, but recommended the school amend its information sheet to make it clear that any donation is voluntary.

The school told us that it had not received any payments connected with out-of-zone enrolments for the 2018, 2019, or 2020 school years. The school has updated its enrolment form, information sheet, and online information to remove any reference to a donation or payment in connection with out-of-zone applications.

Auckland Grammar School previously asked for a “non-refundable fifty dollar ($50) donation for administration costs” with all enrolment applications (both in-zone and out-of-zone). We recommended that the school amend its “enrolment checklist” to make it clear to parents and caregivers that the payment was optional and did not affect their child’s chance of success in the ballot process.

The school has updated the information for out-of-zone places, the checklist, and the online application form. There is no longer any reference to a non-refundable donation. The school told us that no payments have been sought for out-of-zone enrolments since the 2017 school year.

Epsom Girls Grammar School previously asked for a “$20 donation for administration costs” with any enrolment application (both in-zone and out-of-zone). In 2017, we concluded that the description and presentation applied by Epsom Girls Grammar School was consistent with the payment being voluntary and there was less risk (compared to other schools) of out-of-zone applicants interpreting it to mean a payment was required.

The school told us that it might have received donations in the period from June to August 2017, relating to the 2018 school year. However, from 18 August 2017, in response to the Ministry’s instructions, the school amended its information sheet and checklists to remove the request for a donation. The school told us that no donations were received in connection with applications for places in the 2019 or 2020 school year. The school also told us that it did not record on the ballot information for 2018 (or for any previous years) whether families made a donation or not.

We are satisfied that the three schools have updated their practices and are no longer requesting out-of-zone enrolment donations. All three schools also told us that they had not received any payments connected with out-of-zone enrolments for the 2019 and 2020 school years, and only one school might have received donations in the 2018 school year (and had amended its practices after we published our 2017 inquiry report and after the Ministry updated its guidance). Parents and caregivers of prospective students now have a clearer understanding, from the information provided by the school, about what they are required to do when making an out-of-zone enrolment application and more specifically that they cannot be required to pay.

Schools charging out-of-zone administration fees

Kohia Terrace School in Epsom previously charged a $20 “out-of-zone application administration fee”. During our 2017 inquiry, we found that the fee was contrary to guidance published by the Ministry¹¹ at the time and we recommended the school stop charging the fee. The school has removed reference to the fee from enrolment material provided to parents and caregivers of prospective students. The school told us that it has not received any payments for out-of-zone enrolments for the 2018, 2019, or 2020 school years.

Cornwall Park District School previously charged a $75 payment, described as an “administration fee”. Cornwall Park District School stopped charging the fee after the Ministry wrote to the school in February 2016. The school contacted the families who had paid and refunded the full amount. The school told us that it no longer charges the fee and that no payments have been requested or paid for out-of-zone places since 2018. Its current information sheet specifically states that there is no charge connected with enrolments.

Both schools that previously charged an “administration fee” have stopped doing so and there is no reference to any fees or payments in the information provided to parents, including in the application forms.

Concluding comments

We wanted to see whether the Ministry of Education and the five schools we had looked at in 2017 had implemented the recommendations in our inquiry report. We are encouraged by the changes that the schools and Ministry have made to improve the information so that schools, parents, and caregivers receive coherent and consistent advice on payments connected with out-of-zone enrolments.

The Ministry’s amended guidance ensures that the information provided to parents, caregivers, and schools is consistent and clearly communicated. This means that parents and caregivers now have better information about the types of charges and payments schools may legitimately ask for, and which payments parents and caregivers might be required to make. The schools have also updated their application forms to remove reference to a fee or payment in connection with out-of-zone enrolments. This type of clear and open communication builds trust in how access to education is being administered, and helps foster overall confidence in the education system.

We thank the staff at the Ministry of Education and the five schools for their help and co-operation during our follow-up work. We will be publishing this letter on our website.

Nāku noa, nā

David Lemmon
Manager, Inquiries

1: Controller and Auditor-General (2017), Inquiry into state schools requesting payments in connection with out-of-zone places at oag.parliament.nz.

2: Section 3 also applies to any partnership school kura hourua.

3: Section 11D(1) of the Act.

4: Secretary for Education (2017), Instructions relating to the operation of enrolment schemes, paragraphs 1-3.

5: Secretary for Education (2017), Instructions relating to the operation of enrolment schemes, paragraph 15.

6: The ballot process is to be supervised by a Justice of the Peace, practising lawyer, sworn member of the police, or local government returning officer, see Secretary for Education (2017), Instructions relating to the operation of enrolment schemes, paragraph 18.

7: “Top schools in out-of-zone payment row – Cash for ballot places” New Zealand Herald, 27 February 2016. “Third school wants ballot cash” New Zealand Herald, 28 February 2016.

8: The updated Circular also identified attendance dues, but these apply only to state integrated schools and so are not relevant for the purposes of this follow-up work.

9: Ministry of Education (2019), Requirements for Boards of Trustees of decile 1-7 schools and kura choosing to opt into the donations scheme at education.govt.nz.

10: Ministry of Education (2019), What families/whānau need to know about school/kure donations at education.govt.nz.

11: Ministry Bulletin for School Leaders and the Ministry’s 2016 flowchart Payments by parents of students in schools (since replaced by Education Circular (2018/01)).