Appendix: Update from the Ministry on progress with previous recommendations

The current change process that the Ministry is experiencing, and its constrained resourcing, has further delayed this project. The Ministry has prepared a project plan and will consider how to resource it once the current change process is completed.

The Ministry anticipates the project will start in early 2025. In the interim, each year the Ministry considers whether the reporting requirements can be simplified, while complying with accounting standards and being transparent to school and kura communities.

We have repeated this recommendation.

Slow progress is delaying potential changes that would streamline the accountability  of schools, both financial reporting and auditing.

The Ministry continues to work with Education Payroll Limited to improve the quality of guidance available to schools and kura.

Updated guidance on internal control processes and how EdPay reporting supports this has been delayed due to change processes within both the Ministry and Education Payroll Limited.

Schools and kura can perform control checks over all pay-impacting changes and have been able to do so since April 2022.

We have repeated this recommendation.

We note that some schools’ payroll controls are not effective and updated guidance would assist a school in implementing effective payroll controls.

The Ministry communicates key information and guidance to Boards and Principals through school bulletins. The guidance is tested with experienced principals or with representative bodies before publication.

The Ministry also seeks to clarify any issues with the schools when visiting schools.

We have closed this recommendation.

We have made new recommendations to the Ministry about being clear with schools the intended purpose for specific funding, such as principals professional coaching and well-being support.

The Ministry will review guidance on the requirements of Residual Agents to ensure that final audits are completed in a timely manner.

Further consideration is being given to the need for a final audit to be completed when a school or kura closes, where that audit would be in addition to current legislative auditing requirements.

We have repeated this recommendation.

From 1 July 2023, property consultants at the Ministry of Education have been instructed to use the updated cyclical maintenance calculator as part of the 10YPP preparations process.

The Ministry has been following up with schools and property consultants where no cyclical maintenance plan has been included in their 10YPP documentation and completing updates as required to address this issue.

The Ministry acknowledge that this part of the financial statements has a significant level of judgement and estimation, and the Ministry continues to improve support available to schools and kura.

A new Maintenance Guide For Schools was published in February 2024 in collaboration with the Building Research Association of New Zealand.

As part of the Property Annual School Visit the Ministry discusses cyclical maintenance requirements with schools, including the requirement to have cyclical maintenance plans updated annually and how to use the cyclical maintenance calculator.

The Ministry also reinforces Boards’ obligations to maintain school property at sector and school meetings and trainings.

Ministry Property Advisors ensure painting is carried out at schools through the Annual School Visit maintenance check and discuss the importance of schools putting aside adequate funding for painting (or discuss whether it can be considered in the 10 Year Property Plan if appropriate).

We have repeated this recommendation.

We did not see improvements in our 2023 audits. However, we hope to see improvements when completing the 2024 audits due to the changes the Ministry has made during 2024.