Estimates of appropriations

Vote Education Review Office - Education and Workforce Sector - Estimates 2019/20

Vote Education Review Office#

APPROPRIATION MINISTER(S): Minister of Education (M26)

APPROPRIATION ADMINISTRATOR: Education Review Office

RESPONSIBLE MINISTER FOR EDUCATION REVIEW OFFICE: Minister of Education

Overview of the Vote#

The Minister of Education is responsible for appropriations in the Vote for the 2019/20 financial year covering the following:

  • a total of nearly $33 million for evaluations (institutional and system-wide) on the quality of education provided by early childhood learning services, schools and other education service providers, and
  • a total of nearly $2 million in departmental capital expenditure.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19 2019/20
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Capital Expenditure

     

Education Review Office - Capital Expenditure PLA (M26)

This appropriation is limited to the purchase or development of assets by and for the use of the Education Review Office, as authorised by section 24(1) of the Public Finance Act 1989.
2,185 2,185 1,760

Total Departmental Capital Expenditure

2,185 2,185 1,760

Multi-Category Expenses and Capital Expenditure

     

Quality of Education: Evaluations and Services MCA (M26)

The single overarching purpose of this appropriation is to provide evaluation (institutional and system-wide) on the quality of education provided by early childhood learning services, schools and other education service providers.
29,912 29,912 32,701

Departmental Output Expenses

     

Early Childhood Learning Services

This category is limited to evaluations of the performance of early childhood learning services.
9,889 9,889 12,626

National Evaluations and Other Services

This category is limited to the provision of national education evaluation and other publications, policy services, ministerial services and contractual evaluation services.
4,606 4,606 3,907

Schools and Other Education Service Providers

This category is limited to evaluations of the performance of schools, Communities of Learning and other education service providers.
15,417 15,417 16,168

Total Multi-Category Expenses and Capital Expenditure

29,912 29,912 32,701

Total Annual Appropriations and Forecast Permanent Appropriations

32,097 32,097 34,461

Capital Injection Authorisations#

  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Education Review Office - Capital Injection (M26) 161 161 -

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Improving the Quality of the Education System Quality of Education: Evaluations and Services MCA          
  Early Childhood Learning Services - 2,802 3,105 2,806 3,223
  Schools and Other Education Service Providers - 451 920 1,409 1,916
  National Evaluations and Other Services - 105 214 327 445
Total Initiatives  

-

3,358 4,239 4,542 5,584
Summary of Financial Activity
  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses - - - - - - - - - - - -
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure 1,007 1,070 535 2,549 2,185 2,185 1,760 - 1,760 560 560 560
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 27,839 28,590 27,846 29,509 29,912 29,912 32,701 - 32,701 34,405 34,708 35,750
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

28,846 29,660 28,381 32,058 32,097 32,097 34,461 - 34,461 34,965 35,268 36,310

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue - - - - - - N/A - - - - -
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

- - - - - - N/A - - - - -

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There have been no restructuring adjustments to prior year information in the Summary of Financial Activity table.

Vote ERO contains appropriations for output expenses and capital expenditure.

Significant changes in output expense between 2015/16 and 2020/21 include:

  • higher levels of contractual evaluation services provided by ERO
  • additional investment in education evaluations for accountability and improvement, and
  • an insurance payment for property and equipment in ERO's Revera House office that was damaged during the 2016 Kaikoura earthquake.

ERO's departmental output expense appropriation levels will increase in 2019/20 onwards due to additional Budget 2019 funding needed to meet the continued costs of external evaluations of early childhood learning services and schools, and to increase the frequency of early childhood provider reviews.

There are no significant trends in capital expenditure appropriation levels.

Part 2 - Details of Departmental Appropriations#

2.3 - Departmental Capital Expenditure and Capital Injections#

Education Review Office - Capital Expenditure PLA (M26)
Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Education Review Office, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 1,094 1,094 1,410
Intangibles 1,091 1,091 350
Other - - -

Total Appropriation

2,185 2,185 1,760
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the renewal and replacement of ERO's assets that supports the delivery of its services.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Expenditure is in accordance with ERO's capital expenditure plan

75%-100% 75%-100% 75%-100%

ERO is not a capital intensive department. Assets are purchased according to a planned assets replacement programme to maintain and upgrade capability essential to the operation of ERO. The major areas of capital investment for ERO are office accommodation, motor vehicles and computer equipment.

End of Year Performance Reporting

Performance information for this appropriation will be reported by ERO in its Annual Report to be tabled in the House.

Reasons for Change in Appropriation

The decrease in this appropriation for 2019/20 is mainly due to a one-off expenditure on computer systems in 2018/19 only.

Capital Injections and Movements in Departmental Net Assets
Education Review Office
Details of Net Asset Schedule 2018/19
Estimated Actual
$000
2019/20
Projected
$000
Explanation of Projected Movements in 2019/20
Opening Balance 3,746 3,907  
Capital Injections 161 - Retention of insurance proceeds received in 2017/18 arising from one of Education Review Office's premises damaged by the November 2016 Kaikoura earthquake.
Capital Withdrawals - -  
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

3,907 3,907  

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Quality of Education: Evaluations and Services (M26)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to provide evaluation (institutional and system-wide) on the quality of education provided by early childhood learning services, schools and other education service providers.
Scope of Appropriation
Departmental Output Expenses
Early Childhood Learning Services
This category is limited to evaluations of the performance of early childhood learning services.

National Evaluations and Other Services
This category is limited to the provision of national education evaluation and other publications, policy services, ministerial services and contractual evaluation services.

Schools and Other Education Service Providers
This category is limited to evaluations of the performance of schools, Communities of Learning and other education service providers.

Expenses, Revenue and Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

29,912 29,912 32,701

Departmental Output Expenses

     
Early Childhood Learning Services 9,889 9,889 12,626
National Evaluations and Other Services 4,606 4,606 3,907
Schools and Other Education Service Providers 15,417 15,417 16,168

Funding for Departmental Output Expenses

     

Revenue from the Crown

28,162 28,162 31,785
Early Childhood Learning Services 9,860 9,860 12,595
National Evaluations and Other Services 2,953 2,953 3,089
Schools and Other Education Service Providers 15,349 15,349 16,101

Revenue from Others

1,750 1,750 916
Early Childhood Learning Services 29 29 31
National Evaluations and Other Services 1,653 1,653 818
Schools and Other Education Service Providers 68 68 67
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improvements in learner outcomes by using evaluation to influence and inform schools and early childhood learning services and influence the development and implementation of education policy and practices, while assuring the Government and communities of the quality of education provided.

How Performance will be Assessed for this Appropriation
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Total number of evaluations of education service providers and national evaluations

>1,850 >1,850 >2,000

Percentage of education service providers that indicate ERO's evaluations are making a contribution to their decisions about how to improve learner outcomes

>80% >80% >80%

Key audiences report that ERO's national evaluations are informative and useful for identifying or planning improvements within the system or its component parts

>80% >80% >80%
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Early Childhood Learning Services

     

This category is intended to achieve improvements in teaching and learning practices by assisting early childhood learning services to improve their capacity in internal evaluation, governance and leadership through ERO's independent evaluations.

     

Number of early childhood learning service evaluations (include umbrella organisations)

1,200-1,460 1,200-1,460 1,350-1,600

Level of compliance with approved standard procedures for a sample of early childhood learning service evaluations as assessed by a moderation panel

90%-100% 90%-100% >90%

Percentages of draft (near final) findings sent to early childhood learning services for confirmation of accuracy and comment will meet target for reporting to the Minister within 20 working days of the end of the last week on site

>80% >80% >80%

Percentage of early childhood learning services that indicate ERO's evaluations are making a contribution to their decisions about how to improve learner outcomes

>80% >80% >80%

Percentage of early childhood learning service respondents that indicate that their ERO evaluation has helped to identify or confirm opportunities for more effective practice

New measure for 2019/20 New measure for 2019/20 >80%

Percentage of early childhood learning service respondents that indicate that their ERO evaluation will help to build the early childhood learning service's capability in the medium to long term

New measure for 2019/20 New measure for 2019/20 >80%

National Evaluations and Other Services

     

This category is intended to achieve improvements in learner outcomes by influencing and informing on the development and implementation of education policy and practices through ERO's system-wide evaluations and through the provision of other services.

     

Number of national evaluations and other publications

Up to 20 Up to 20 Up to 20

National evaluations are consistent with approved plans and procedures

100% 100% 100%

Schools and Other Education Service Providers

     

This category is intended to achieve improvements in teaching and learning practices by assisting schools and other education service providers to improve their capacity in internal evaluation, governance and leadership through ERO's independent evaluations.

     

Number of schools education evaluations (include homeschools, Communities of Learning and private schools)

650-840 650-840 650-840

Level of compliance with approved standard procedures for a sample of schools and other education service providers as assessed by a moderation panel

90%-100% 90%-100% >90%

Percentages of draft (near final) findings sent to schools and other education service providers for confirmation of accuracy and comment will meet target for reporting to the Minister within 20 working days of the end of the last week on site

>80% >80% >80%

Percentage of schools that indicate ERO's evaluations are making a contribution to their decisions about how to improve learner outcomes

>80% >80% >80%

Percentage of school respondents that indicate that their ERO evaluation had helped to identify or confirm opportunities for more effective practice

>80% >80% >80%

Percentage of school respondents that indicate that their ERO evaluation will help to build the school's capability in the medium to long term

>80% >80% >80%

ERO recognises an education evaluation as an output at the time it is available for delivery to the Minister of Education. Partially complete evaluations are not reported.

National education evaluations provide information on significant education issues and sector performance. In particular, ERO will provide information for individual schools, communities and the Government on what effective practice looks like, how well schools are supporting their students to achieve educational standards and qualifications, and promoting equitable educational success particularly for Maori and Pacific learners. The information for these evaluations is gathered during the regular reviews carried out by ERO or by specialist ERO teams for particular topics.

Policy services, ministerial and contractual services are subject to external demand factors making these activities difficult to forecast. No assessments of performance have been reported for these services as these activities only account for less than 10% of ERO's total Vote and therefore are not deemed to be material.

End of Year Performance Reporting

Performance information for this appropriation will be reported by ERO in its Annual Report to be tabled in the House.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Improving the Quality of the Education System: 2019/20          
Early Childhood Learning Services 2019/20 - 2,802 3,105 2,806 3,223
Schools and Other Education Service Providers 2019/20 - 451 920 1,409 1,916
National Evaluations and Other Services 2019/20 - 105 214 327 445

Previous Government

           
Education evaluation - investing for accountability and improvement 2017/18 1,092 1,357 2,180 2,180 2,180
Share of costs for Budget 2015 whole-of government 2015/16 (36) (36) (36) (36) (36)
Reasons for Change in Appropriation

The total increase to the appropriation in the 2019/20 year is $2.789 million. The appropriation increased by $3.358 million due to additional funding provided to ERO through Budget 2019 to meet the continued costs of external evaluations of early childhood learning services and schools, and to increase the frequency of early childhood provider reviews. This increase was partially offset by lower levels of contractual evaluation services provided by ERO forecasted in 2019/20 compared to 2018/19, which decreased the appropriation by $834,000.