APPROPRIATION MINISTER(S): Minister for Tertiary Education, Skills and Employment (M14)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote

The Minister for Tertiary Education, Skills and Employment is responsible for appropriations in Vote Tertiary Education for the 2017/18 financial year covering the following:

  • a total of just over $12 million for services from the Ministry of Education
  • a total of just over $47 million for services from the Tertiary Education Commission
  • a total of just over $31 million for services from Education New Zealand
  • a total of nearly $2,907 million for tuition and industry training subsidies and research funding provided to tertiary education organisations, funding to help universities recruit world-leading entrepreneurial academics, and services from the adult and community education sector and other non-departmental providers, and
  • a total of nearly $22 million for tertiary scholarships, international education and other grants.

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/172017/18
Titles and Scopes of Appropriations by Appropriation TypeFinal
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Non-Departmental Output Expenses

Access to Tertiary Education (M14)

This appropriation is limited to improving access to tertiary education and training.
24,21624,21626,449

Administration of and Support for the Tertiary Sector (M14)

This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.
46,91846,91847,163

Centres of Research Excellence (M14)

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
49,80049,80049,800

International Education Programmes (M14)

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.
29,43929,43931,072

Tertiary Education Research and Research-Based Teaching (M14)

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
301,500301,500309,000

Tertiary Sector / Industry Collaboration Projects (M14)

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
25,37825,37828,372

University-led Innovation (M14)

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
2,5002,50010,833

Total Non-Departmental Output Expenses

479,751479,751502,689

Benefits or Related Expenses

Awards for Outbound New Zealand Students (M14)

This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.
4,5904,5905,040

Scholarships for Inbound International Students (M14)

This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
800800800

Support to Apprentices (M14)

This appropriation is limited to payments to New Zealand Apprentices and other participants in workplace-based training, including Maori and Pasifika Trades Trainees, towards their tools and other training related costs.
1,2601,2601,036

Tertiary Scholarships and Awards (M14)

This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.
14,44714,44714,732

Total Benefits or Related Expenses

21,09721,09721,608

Non-Departmental Capital Expenditure

Literacy and Numeracy Assessment Tool (M14)

This appropriation is limited to development of online assessment tools for adult and youth literacy and numeracy.
500500-

Support for Tai Poutini Polytechnic (M14)

This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.
3,6003,600-

Support for the University of Canterbury (M14)

This appropriation is limited to the rebuild of the Science and Engineering Facilities at the University of Canterbury.
15,00015,000-

Total Non-Departmental Capital Expenditure

19,10019,100-

Multi-Category Expenses and Capital Expenditure

Stewardship of the Tertiary Education System MCA (M14)

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.
12,90112,90112,377
Departmental Output Expenses
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
4,8564,8564,856
Research, Data Analysis and Monitoring
This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.
8,0458,0457,521

Tertiary Tuition and Training MCA (M14)

The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
2,465,6722,465,6722,481,969
Non-Departmental Output Expenses
Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
72,75172,75177,286
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
2,085,2052,085,2052,084,592
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
307,716307,716320,091

Total Multi-Category Expenses and Capital Expenditure

2,478,5732,478,5732,494,346

Total Annual and Permanent Appropriations

2,998,5212,998,5213,018,643

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Building Entrepreneurial Universities

University-led Innovation

2,50010,83310,83310,83410,000
Non-Departmental Output Expense
Funding for Employment-based Initial Teacher Education

Tertiary Tuition and Training MCA

(see also Vote Education in the Education Sector)Tertiary Education: Student Achievement Component-(719)(1,913)(1,896)(703)
Non-Departmental Output Expense
Increasing the Performance-Based Research Fund

Tertiary Education Research and Research-Based Teaching

-7,50015,00015,00015,000
Non-Departmental Output Expense
Strengthening the Foundations for Sustainable Growth of International Education

International Education Programmes

-1,7001,7001,7001,700
Non-Departmental Output Expense
Tai Poutini Polytechnic Short-term Financial Support

Tertiary Tuition and Training MCA

Tertiary Education: Student Achievement Component(3,600)----
Non-Departmental Output Expense

Support for Tai Poutini Polytechnic

3,600----
Non-Departmental Capital Expenditure
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme
(see also Vote Education in the Education Sector, Vote Labour Market in the Economic Development and Infrastructure Sector, Vote Social Development in the Social Development and Housing Sector and Vote Health in the Health Sector)

Tertiary Tuition and Training MCA

Community Education--5251,0501,575
Non-Departmental Output Expense
Transfer Unspent 2016/17 Tuition and Training Funding to Contingencies

Tertiary Tuition and Training MCA

Community Education(900)----
Non-Departmental Output Expense
Tertiary Education: Student Achievement Component(11,400)----
Non-Departmental Output Expense
Training for Designated Groups(3,200)----
Non-Departmental Output Expense
Tuition Subsidy Increase

Tertiary Tuition and Training MCA

Tertiary Education: Student Achievement Component-9,90519,81019,81019,810
Non-Departmental Output Expense
Workplace Literacy and Numeracy

Tertiary Tuition and Training MCA

Community Education-3,500---
Non-Departmental Output Expense
Training for Designated Groups(3,500)----
Non-Departmental Output Expense
Total Initiatives(16,500)32,71945,95546,49847,382

1.2 - Trends in the Vote

Summary of Financial Activity

2012/132013/142014/152015/162016/172017/182018/192019/202020/21
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 Expenses383,588403,077423,599449,691479,751479,751-502,689502,689504,425503,864502,130
Benefits or Related Expenses14,36231,52235,91318,19021,09721,097N/A21,60821,60824,09824,41524,414
Borrowing Expenses------------
Other Expenses3,4502,8951,377---------
Capital Expenditure25019,700117,87085,82519,10019,100---50,000--
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses2,335,0112,397,3762,421,0202,475,8542,478,5732,478,57312,3772,481,9692,494,3462,499,5672,503,4762,505,846
Other Expenses------------
Capital Expenditure------N/A-----

Total Appropriations

2,736,6612,854,5702,999,7793,029,5602,998,5212,998,52112,3773,006,2663,018,6433,078,0903,031,7553,032,390

Crown Revenue and Capital Receipts

Tax Revenue------N/A-----
Non-Tax Revenue7,3828,93214,73615,4788,4178,417N/A1,0001,0001,0001,0001,000
Capital Receipts276-----N/A-----

Total Crown Revenue and Capital Receipts

7,6588,93214,73615,4788,4178,417N/A1,0001,0001,0001,0001,000

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 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.

1.3 - Analysis of Significant Trends

Significant changes in departmental and non-departmental appropriations related to tertiary and international education between 2012/13 and 2020/21 are discussed briefly below.

Departmental Output Expenses

Movements in departmental output expenses largely relate to:

  • transferring administration of the code of practice for the pastoral care of international students to the New Zealand Qualifications Authority - from 2013/14
  • participation in the OECD Programme for International Assessment of Adult Competencies at a cost of $5.260 million over four years from 2012/13 to 2015/16
  • progress on the Tertiary Information Future State work programme that commenced in 2013/14, and
  • the transfer of some activities between the Ministry of Education and the Tertiary Education Commission.

The departmental output expenses were transferred to a multi-category appropriation from 2016/17.

Non-Departmental Output Expenses

Most tertiary education funding is through non-departmental output expenses. The major changes to these appropriations over the trend period are principally owing to:

  • funding to meet increased demand for tertiary provision as a consequence of the global financial crisis at the start of the period (which levelled off in 2012), which supports increases in the proportion of young people with higher-level qualifications to meet Better Public Services targets
  • the implementation and expansion of the Youth Guarantee programme, including provision of fees-free places at tertiary institutions and the transfer of funding from 2012/13 onwards into the new Secondary-Tertiary Interface appropriation in Vote Education to fund trades academies
  • the removal of regulatory compliance training from 2012 and further reducing industry training funding to align with estimated demand in 2013
  • initiatives to revitalise the industry training system, introduce New Zealand Apprenticeships in 2014 and expand Maori and Pasifika trades training between 2013/14 and 2019/20
  • ensuring the country's skills base supports the needs of industry and encourages innovation - strengthening provision in areas of specific priority, such as engineering, science, agriculture and health sciences, with targeted increases in related tuition subsidies, the establishment of Information and Communication Technology graduate schools from mid-2015, and closing the gap in funding between private training and public providers in 2013 and 2014
  • funding to deliver foundation-level programmes to meet the needs of beneficiaries and for them to be referred to specialist providers or to address intensive literacy and numeracy needs (transferred from another Vote from 2013/14)
  • additional funding for research, including increasing the Performance-Based Research Fund to $315 million by 2018 and increasing the number of Centres of Research Excellence (CoRE) from 2016, including the establishment of one focused on Maori research
  • increased funding for international education, including promotions
  • funding for Centres of Asia-Pacific Excellence from 2017
  • funding from 2017 to help New Zealand universities recruit world-leading entrepreneurial academics
  • additional English language course provision following the response to the Syrian refugee crisis and an increased quota of refugees to 1,000 places from 2018/19, and
  • funding to support providers to maintain quality and innovate when demand is falling due to the strong economy in 2018 through an across-the-board tuition increase at Level 3 and above.

Three significant non-departmental output expenses were transferred to the Tertiary Tuition and Training multi-category appropriation from 2016/17.

Benefits or Related Expenses

Changes in benefits or related expenses are largely related to:

  • an apprenticeships 're-boot' between 2013/14 and 2014/15 and support for other apprentices
  • addressing pressures on Medical Trainee Intern Grants from 2015/16
  • phasing out of tertiary doctoral and enterprise scholarships and doctoral research and undergraduate international student scholarships, and
  • recategorising the Prime Minister's Scholarships for Asia fund from non-departmental output expense International Education Programmes, expanding the fund and establishing the Prime Minister's Scholarships for other regions from 2016/17.

Non-Departmental Other Expenses

Significant changes in these appropriations mainly reflect:

  • Tertiary Education Institutions Merger Support funding that ceased in 2013/14, and
  • University of Auckland Starpath Project funding that ceased in 2014/15.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure relate mainly to:

  • assisting Christchurch tertiary education institutions to recover from the impact of the 2010 and 2011 earthquakes, and
  • a new appropriation to provide funding support for Tai Poutini Polytechnic in 2016/17.

Crown Revenue

Significant changes between years mainly reflect recoveries of surplus grants funding from the Tertiary Education Commission and the tertiary education sector, and a share of earthquake-related insurance settlements from the University of Canterbury as provided for in their capital funding agreement.

1.5 - Relationship between Individual Appropriations and the Work Programmes

Appropriations contributing to outcomes and intermediate objectives:
Long term outcomes and objectives:Contributing to one or two outcomes:Contributing to all three outcomes:
The education system is relevant and reaches all children and students
  • High quality regulatory, funding and institutional arrangements
  • High quality curriculum and qualifications frameworks
  • High quality infrastructure
  • Information and data enabling good decision-making
  • Access to Tertiary Education (M14)
  • Administration of and Support for the Tertiary Sector (M14)
  • Centres of Research Excellence (M14)
  • Tertiary Scholarships and Awards (M14)
  • Stewardship of the Tertiary Education System MCA (M14)
  • Tertiary Tuition and Training MCA (M14)
Every child and student achieves educational success
  • Informed and supportive parents, whanau, iwi, communities and employers
  • Effective teaching and educational leadership
  • High participation and engagement
  • All learners achieving and progressing to their potential
  • International Education Programmes (M14)
  • Support to Apprentices (M14)
New Zealanders have skills and knowledge for work and life
  • Skills match labour market needs
  • Socially and culturally confident and competent people
  • Internationally credible skills and institutions
  • High quality research and innovation
  • International Education Programmes (M14)
  • Tertiary Education Research and Research-Based Teaching (M14)
  • Tertiary Sector / Industry Collaboration Projects (M14)
  • University-led Innovation (M14)
  • Awards for Outbound New Zealand Students (M14)
  • Scholarships for Inbound International Students (M14)
  • Support to Apprentices (M14)

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Access to Tertiary Education (M14)

Scope of Appropriation

This appropriation is limited to improving access to tertiary education and training.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation24,21624,21626,449

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Equity Loading16,71616,71617,149
Maori and Pasifika Trades Training Top Up7,5007,5009,300
Total24,21624,21626,449

What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve access to tertiary education and training for Tertiary Education Strategy priority learners.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Maori and Pasifika Trades Training

Percentage of learners per calendar year progressing from Maori and Pasifika Trades Training to trades-related employment (including New Zealand Apprenticeships and managed apprenticeships), other industry training at Level 3 and above, or further study at New Zealand Qualifications Framework Level 4 and above.

New measureNew measureBaseline year

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)9,9459,94510,378Plans up to three years
Wananga (3)3,3733,3735,173Plans up to three years
Institutes of Technology and Polytechnics (16)9,8799,8799,879Plans up to three years

Non-Government Organisations

Private Training Establishments1,0191,0191,019Plans up to three years

Total

24,216

24,216

26,449

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Maori and Pasifika Trades Training Contingency Funding Drawdown2016/172,4002,4002,4002,4002,400
Increase Tertiary Equity Funding2013/142,2972,7302,7302,7302,730
Expansion of Maori and Pasifika Trades Training2013/146,0006,0006,0006,0006,000

Reasons for Change in Appropriation

The $2.233 million increase in this appropriation for 2017/18 is due to:

  • a transfer of $900,000 from 2016/17 for the Maori and Pasifika Trades Training Fees Top-up Fund to reflect the number of places taken up at tertiary institutions and length of programme undertaken by each learner across these two years (a transfer of $900,000 from 2016/17 to 2017/18 means that the appropriation for 2017/18 is $1.800 million higher than 2016/17), and
  • an increase to the tertiary equity funding pool as agreed in Budget 2013 in order to maintain current rates per student ($433,000 increase).

Conditions on Use of Appropriation

ReferenceConditions
Section 159L Education Act 1989Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister for Tertiary Education, Skills and Employment.

Administration of and Support for the Tertiary Sector (M14)

Scope of Appropriation

This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation46,91846,91847,163

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective investment in tertiary education and the protection of the Crown's ownership interest in tertiary education institutions.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The overall satisfaction rating given by the Minister for Tertiary Education, Skills and Employment on the Tertiary Education Commission (as per the Common Satisfaction Survey) (see Note 1).

Baseline year7Maintain or increase

Managing the Government's Investment in the Tertiary Education Sector

Payments are made to tertiary education organisations as per the agreed contractual terms and conditions.

100%100%100%

Plans for tertiary education organisations demonstrate evidence of alignment with employer, community and learner needs, and include targets for improving achievement rates for priority groups in the Tertiary Education Strategy.

Revised measureRevised measure100%

Number of tertiary education organisations audited by the Tertiary Education Commission.

60 - 70 audits60 - 70 audits60 - 70 audits

Number of tertiary education organisations that are the subject of a review and/or investigation.

10 - 1510 - 1510 - 15

Ownership Monitoring of Tertiary Education Institutions

Ownership risks are assessed and appropriate mitigation strategies are put in place (see Note 2).

100%100%100%

Tertiary Education and Training Advice

The rating given by the Minister for Tertiary Education, Skills and Employment on the Common Satisfaction Survey question "How satisfied are you that the advice you receive from the Commission meets your needs?" (see Note 1).

New measureNew measure7

Average scores for Tertiary Education Institutions, other Tertiary Education Organisations, and Government partner respondents, respectively, on the question "I trust the Tertiary Education Commission and have confidence in its decisions" in the annual Partner and Provider Survey.

New measureNew measureBaseline year

Note 1 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 2 - Risks are assessed against the gazetted risk criteria which is available on the website: www.tec.govt.nz/Tertiary-Sector/Crown-Interest/Interventions/Risk-assessment/

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Tertiary Education Commission46,80946,80947,054Ongoing

Non-Government Organisations

Maori Education Trust109109109Ongoing

Total

46,918

46,918

47,163

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
International Connections for New Zealanders2016/17750-125-125
Engineering Education to Employment2016/17400400400400-
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(101)(75)(54)(54)(54)
Expanding the Youth Literacy and Numeracy Assessment Tool2014/15185330330330330
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education2013/14411411---
Developing a Youth Option in the Literacy and Numeracy for Adults Assessment Tool2013/14165165165165165
Foundation Focused Training Opportunities2013/146,6616,6616,6616,6616,661

Reasons for Change in Appropriation

The $245,000 increase in this appropriation for 2017/18 is mainly due to a combination of:

  • a transfer from 2014/15 to undertake the periodic assessment of research quality to determine future funding allocations from the Performance-Based Research Fund ($1 million increase), and
  • funding in 2016/17 to support the administration of the Budget 2016 initiative International Connections for New Zealanders, including Centres of Asia-Pacific Excellence ($750,000 decrease).

Centres of Research Excellence (M14)

Scope of Appropriation

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation49,80049,80049,800

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve delivery of high quality research by purchasing cooperative and collaborative research in areas of research strength in the tertiary education sector, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Centres of Research Excellence Annual Reports are reviewed against milestones and key performance indicators set in research plans and meet assessment criteria.

AchievedAchievedAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Tertiary Education Institution hosts of Centres of Research Excellence (varies between 7-11 during the period)49,80049,80049,8001 January 2021

Total

49,800

49,800

49,800

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Improving the Performance of the Centres of Research Excellence Fund2014/153,1693,1693,1693,1693,169
Establish Additional Centres of Research Excellence2014/1514,94114,94114,94114,94114,941

International Education Programmes (M14)

Scope of Appropriation

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation29,43929,43931,072

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve enhanced social, cultural and economic benefits to New Zealand through New Zealand international education activities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The proportion of international students who were satisfied or very satisfied with their overall experience:

  • Secondary schools
New measureNew measure93%
  • Private Training Establishments
New measureNew measure88%
  • English language schools
New measureNew measure89%
  • Institutes of Technology and Polytechnics
New measureNew measure88%
  • Universities.
New measureNew measure90%

Percentage of users that agree Education New Zealand's services and support have added value to their organisation.

More than or equal to 2015/16 resultMore than or equal to 2015/16 resultMore than 2016/17 result

The economic value from New Zealand's international education industry (see Note 1).

New measureNew measureIncrease to $4.5 billion

The economic value of education services that are delivered offshore (see Note 2).

New measureNew measureIncrease to $278 million

Note 1 - The 2025 target is $5 billion (Business Growth Agenda: Leadership Statement for International Education, Goal 1).

Note 2 - The 2025 target is $500 million (Business Growth Agenda: Leadership Statement for International Education, Goal 2).

End of Year Performance Reporting

Performance information for this appropriation will be reported by Education New Zealand in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Strengthening the Foundations for Sustainable Growth of International Education2017/18-1,7001,7001,7001,700
International Education Development2015/161,250----
International Education Initiatives2013/1410,00010,00010,00010,00010,000

Reasons for Change in Appropriation

The $1.633 million increase in this appropriation for 2017/18 is mainly due to a $1.700 million per annum baseline funding increase agreed in Budget 2017 to maintain Education New Zealand's level of activity supporting the sustainable growth of international education in New Zealand, including its contribution to regional development.

Tertiary Education Research and Research-Based Teaching (M14)

Scope of Appropriation

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation301,500301,500309,000

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Performance-Based Research Fund
  • Quality Evaluation
165,000165,000169,125
  • Research Degree Completions
75,00075,00076,875
  • External Research Income
60,00060,00061,500
Priorities for Focus1,5001,5001,500
Total301,500301,500309,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in, or maintain the quality of, research and research-based teaching and learning and to improve investment in research within the tertiary sector.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Research degree completions (measured by Performance-Based Research Fund (PBRF)-eligible research degree completions) (see Note 1).

3,900 ±5% 3,900 ±5%3,900 ±5%

Percentage increase in amount of external research income for PBRF-eligible providers (see Note 2).

2% - 4%2% - 4%2% - 4%

Note 1 - This information can only be provided by calendar year. The most recent confirmed calendar year of data for research degree completions is 2013.

Note 2 - This information can only be provided by calendar year. The most recent unconfirmed data (used for 2017 indicative funding) is from 2015.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)291,897291,897299,338Investment plans up to three years
Wananga (3)2,0342,0342,019Investment plans up to three years
Institutes of Technology and Polytechnics (16)7,0287,0287,110Investment plans up to three years

Non-Government Organisations

Private Training Establishments541541533Investment plans up to three years

Total

301,500

301,500

309,000

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Increasing the Performance-Based Research Fund2017/18-7,50015,00015,00015,000

Reasons for Change in Appropriation

The $7.500 million increase in this appropriation for 2017/18 is due to the decision in Budget 2017 to increase funding for the Performance-Based Research Fund by $15 million per annum from 2018.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionFunding in this appropriation is provided as part of the bulk grant to tertiary education organisations to recognise research performance. All degree-awarding tertiary education organisations are eligible for funding.
The Performance-Based Research Fund is allocated on the basis of three measures:
  • Quality Evaluation - a periodic peer assessment of the research contribution of individual teaching and research staff (this will comprise 55% of funding in 2016 and 2017)
  • Research Degree Completions - a measure of the number of research-based post-graduate degree completions (this will comprise 25% of funding in 2016 and 2017)
  • External Research Income - a measure of income received for the purposes of conducting research (this will comprise 20% of funding in 2016 and 2017).

Tertiary Sector / Industry Collaboration Projects (M14)

Scope of Appropriation

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation25,37825,37828,372

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Centres of Asia-Pacific Excellence3,7503,75010,000
National Centre for Tertiary Teaching Excellence3,5563,5563,556
Quality Teaching Agenda3,2203,2203,570
ICT Graduate Schools (Development and Delivery)5,5845,5842,771
Engineering Graduates1,9071,9071,578
Other Funding7,3617,3616,897
Total25,37825,37828,372

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the development of knowledge and skills that are required by learners and employers, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of domestic equivalent full-time students in Information and Communications Technology graduate schools per calendar year (see Note 1).

170 ±5%60300 ±5%

Percentage of learners per calendar year progressing from Maori and Pasifika Trades Training to trades-related employment (including New Zealand Apprenticeships and managed apprenticeships), other industry training at Level 3 and above, or further study at New Zealand Qualifications Framework Level 4 and above.

New measureNew measureBaseline year

Note 1 - 2016/17 Estimated Actual refers to the 2016 calendar year. 2017/18 Budget Standard refers to the 2017 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)16,43816,43818,278Range from three to six years
Institutes of Technology and Polytechnics (16)5,5375,5376,691Plans up to three years

Non-Government Organisations

Industry Training Organisations1,0001,0001,000Plans up to three years
Private Training Establishments2,4032,4032,403Plans up to three years

Total

25,378

25,378

28,372

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
International Connections for New Zealanders2016/173,75010,0009,87510,0009,875
Enabling Further Growth of Maori and Pasifika Trades Training2015/16810810810810810
Investing to Increase the Number of Engineering Graduates2015/161,9071,5781,000500-
Information and Communications Technology Graduate Schools2015/165,5842,7711,7711,7711,771
Quality Teaching Agenda Contingency Drawdown for Exemplary Postgraduate Initial Teacher Education Programmes2013/143,2203,5702,5202,5202,520

Reasons for Change in Appropriation

The $2.994 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • additional funding for International Connections for New Zealanders, including Centres of Asia-Pacific Excellence from 2017, as agreed in Budget 2016 ($6.250 million increase)
  • progress on establishment and operation of three Information and Communications Technology graduate schools ($2.813 million decrease), and
  • timing of initiatives to increase the number of engineering graduates ($329,000 decrease).

Conditions on Use of Appropriation

ReferenceConditions
Section 159L Education Act 1989Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister for Tertiary Education, Skills and Employment.

University-led Innovation (M14)

Scope of Appropriation

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation2,5002,50010,833

What is Intended to be Achieved with this Appropriation

This appropriation is intended to help New Zealand universities to recruit world-leading entrepreneurial academics, with a track record of working with industry to turn research into commercial innovation, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Funded universities demonstrate achievement of the milestones and key performance indicators in their research plans, in relation to the recruitment of entrepreneurial academics, thereby progressing the intended impacts of the research.

New measureNew measureBaseline year

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)2,5002,50010,833Not yet known

Total

2,500

2,500

10,833

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Building Entrepreneurial Universities2016/172,50010,83310,83310,83410,000

Reasons for Change in Appropriation

The $8.333 million increase in this appropriation for 2017/18 brings this Budget 2016 initiative to its full provision following implementation part way through 2016/17.

3.2 - Non-Departmental Benefits or Related Expenses

Awards for Outbound New Zealand Students (M14)

Scope of Appropriation

This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation4,5904,5905,040

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to wider international educational opportunities for skilled New Zealanders to enhance their existing skills.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Study Abroad Awards and the Prime Minister's Scholarships for Asia and for other regions under the Education Act 1989.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
International Connections for New Zealanders2016/171,5002,0002,5002,5002,500

Reasons for Change in Appropriation

The $450,000 increase in this appropriation for 2017/18 is mainly due to the baseline funding increase agreed in Budget 2016 to enhance international connections for New Zealanders through expansion of the Prime Minister's Scholarships for Asia fund and establishing the Prime Minister's Scholarships for other regions.

Scholarships for Inbound International Students (M14)

Scope of Appropriation

This appropriation is limited to scholarships available to international students wishing to study in New Zealand.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation800800800

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in New Zealand's economic value from international students studying in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of the New Zealand International Student Doctoral Research Scholarship under the Education Act 1989.

Support to Apprentices (M14)

Scope of Appropriation

This appropriation is limited to payments to New Zealand Apprentices and other participants in workplace-based training, including Maori and Pasifika Trades Trainees, towards their tools and other training related costs.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,2601,2601,036

What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist people establishing a career in industry by providing financial assistance.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments to Maori and Pasifika Trades Trainees towards the cost of tools and other training-related costs under the Education Act 1989.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Enabling Further Growth of Maori and Pasifika Trades Training2015/16(810)(810)(810)(810)(810)
Expansion of Maori and Pasifika Trades Training2013/143,0003,0003,0003,0003,000

Reasons for Change in Appropriation

The $224,000 decrease in the appropriation for 2017/18 is mainly due to the transfer of funding from the Maori and Pasifika Trades Training (MPTT) Tools Subsidy fund to the MPTT Consortium fund, under non-departmental output expense Tertiary Sector/Industry Collaboration Projects, to meet increased project coordination costs.

Tertiary Scholarships and Awards (M14)

Scope of Appropriation

This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation14,44714,44714,732

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide a stipend for domestic sixth-year medical trainee interns and other scholarships.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Tertiary Scholarships and Awards under the Education Act 1989.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Additional Medical Student Places2018/19--433866866
Additional Medical Student Places2017/18-255509509509
Delivering Support to Graduate-Entry Students Affected by the 7 EFTS Limit to Complete Long Undergraduate Programmes2015/163401441-
Trainee Medical Intern Grants2015/161,6761,6691,7141,7411,741
Additional Medical Student Places2015/16947947947947947

Reasons for Change in Appropriation

The $285,000 increase in the appropriation for 2017/18 is mainly due to the additional medical student places provided for in Budget 2013 ($255,000 increase).

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

Multi-Category Expenses and Capital Expenditure

Stewardship of the Tertiary Education System (M14)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.

Scope of Appropriation

Departmental Output Expenses
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
Research, Data Analysis and Monitoring
This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.

Expenses, Revenue and Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

12,90112,90112,377

Departmental Output Expenses

Policy Advice4,8564,8564,856
Research, Data Analysis and Monitoring8,0458,0457,521

Funding for Departmental Output Expenses

Revenue from the Crown

12,40112,40111,627
Policy Advice4,8564,8564,856
Research, Data Analysis and Monitoring7,5457,5456,771

Revenue from Others

500500750
Research, Data Analysis and Monitoring500500750

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide advice to Ministers to support decision-making, managing the Government's investment in the tertiary education sector, and monitoring and oversight of the sector.

How Performance will be Assessed for this Appropriation

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Overall average (mean) satisfaction rating given by the Minister for Tertiary Education, Skills and Employment for the Ministry's policy advice, monitoring advice and support for ministerial delegations.

777

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

Policy Advice

This category is intended to achieve the provision of quality advice to the Minister to ensure that tertiary education policy and programmes support the performance of the tertiary education system.

Independent assessment of the quality of the Ministry's policy advice (see Note 1).

75%75%75%

The satisfaction rating given by Ministers for the quality and timeliness of policy advice (as per the Common Satisfaction Survey) (see Note 2).

777

The total cost per hour per person of producing policy outputs (see Note 3).

Up to $155Up to $155Up to $155

Research, Data Analysis and Monitoring

This category is intended to contribute to a shared strategic direction and alignment across the tertiary education system.

Forecasts of student loans and student allowances are accurate within an agreed average of actual values.

Accurate within ±3% of actual valuesAccurate within ±3% of actual valuesAccurate within ±3% of actual values

The satisfaction rating given by the Minister for Tertiary Education, Skills and Employment on the quality of monitoring advice provided by the Ministry about Crown agencies (see Note 4).

777

The quality and range of the Ministry's analytical outputs is assessed through an independent expert review (see Note 5).

Quality is assessed as 'Good' or betterQuality is assessed as 'Good' or betterQuality is assessed as 'Good' or better

The satisfaction rating given by Ministers for the quality and timeliness of support for ministerial delegations and visits (see Note 4).

777

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies completed within the timeframes agreed between the Ministry and the Office of the Minister.

Revised measure95%95%

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies provided that are factually accurate, meet any legislative requirements, and contain no avoidable errors, as measured by acceptance rates by the Office of the Minister.

New measureNew measure95%

Note 1 - The independent assessment of the Ministry's policy advice will have a technical robustness score, using the measurement of robustness provided by the Treasury.

Note 2 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 3 - This measure provides the total cost of an hour of professional staff time devoted to both policy advice and other policy outputs. Total cost includes the cost of labour, overheads, support staff, direct costs and outsourced work to support production.

Note 4 - The rating measures Ministers' satisfaction on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 5 - Based on a five-point rating scale: 1 = 'Very poor'; 2 = 'Poor'; 3 = 'Acceptable'; 4 = 'Good'; 5 = 'Very good'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(5)(5)(5)(4)(4)
Tertiary Information Future State Programme2013/14880366366366366

Reasons for Change in Appropriation

The $524,000 decrease in this appropriation for 2017/18 is mainly due to a transfer from 2015/16 to 2016/17 for the Tertiary Information Future State work programme ($514,000 decrease).

Tertiary Tuition and Training (M14)

Overarching Purpose Statement

The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.

Scope of Appropriation

Non-Departmental Output Expenses

Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.

Expenses, Revenue and Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

2,465,6722,465,6722,481,969

Non-Departmental Output Expenses

Community Education72,75172,75177,286
Tertiary Education: Student Achievement Component2,085,2052,085,2052,084,592
Training for Designated Groups307,716307,716320,091

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Community Education

Adult and Community Education22,29022,29022,890
Literacy and Numeracy Provision33,74833,74837,548
English for Speakers of Other Languages14,05814,05814,193
Migrant Levy426426426
Emergency Management Pool2,2292,2292,229

Tertiary Education: Student Achievement Component

Provision at Levels 1 and 290,29990,299100,580
Provision at Levels 3 and above
  • Universities (see Note 1)
1,202,0001,202,0001,187,511
  • Institutes of Technology and Polytechnics
478,809478,809476,231
  • Wananga
130,291130,291131,775
  • Private Training Establishments
177,503177,503181,200
ICT Graduate Programmes4,0394,0395,031
Grants under section 321 of the Education Act2,2642,2642,264

Training for Designated Groups

Industry Training Fund173,451173,451176,151
Industry Training Fund - Direct Access Scheme4,9004,9005,000
Youth Guarantee108,752108,752118,327
Gateway19,01319,01319,013
Industry Training Fund - Industry Training related projects1,6001,6001,600
Total2,465,6722,465,6722,481,969

Note 1 - The cost of funding International Doctor of Philosophy (PhD) students is estimated to be $47 million in 2016/17 and $50 million in 2017/18.

What is Intended to be Achieved with this Appropriation

The overarching intention is to contribute to improved lifetime outcomes of New Zealanders through the provision of skills from tertiary education, training, foundation learning programmes and community education, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed for this Appropriation

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Proportion of 25 to 34-year-olds with advanced trade qualifications, diplomas and degrees (at Level 4 or above).

60% for the year ending December 201857.2% as at 31 December 201660% for the year ending December 2018

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

Community Education

This category is intended to achieve improvement in literacy and numeracy skills for learners who have low skills in these areas by funding foundational learning programmes.

Adult and community education - Number of funded domestic equivalent full-time students in Tertiary Education Institutions-based programmes (including Search and Rescue and Emergency Management short courses) per calendar year (see Note 1).

2,000 ±5%1,6322,000 ±5%

Literacy and numeracy - Total number of funded learners per calendar year (see Note 1).

15,100 ±5%14,31216,700 ±5%

Tertiary Education: Student Achievement Component

This category is intended to achieve learners' attainment of recognised tertiary qualifications by funding education and training opportunities.

Number of domestic equivalent full-time students at Levels 1 and 2 (see Notes 1 and 2).

12,500 ±5%11,49512,200 ±5%

Number of domestic equivalent full-time students at Level 3 and above by sub-sector (see Notes 1 and 2):

  • Universities
110,500 ±5%116,964109,600 ±5%
  • Institutes of Technology and Polytechnics
52,800 ±5%54,13951,100 ±5%
  • Wananga
17,600 ±5%18,66817,100 ±5%
  • Private Training Establishments.
21,300 ±5%20,51220,800 ±5%

Total domestic equivalent full-time students at New Zealand Qualifications Framework Level 3 and above (see Notes 1 and 3).

212,900210,283198,600 ±5%

Training for Designated Groups

This category is intended to achieve an increase in the number of young people and employees with qualifications valued by employers through investing in training.

Total training (see Note 1):

  • Industry Training - funded standard training measures (see Note 4)
27,100 ±5%27,32928,000 ±5%
  • Apprentices - funded standard training measures (see Note 4)
15,500 ±5% 16,39817,300 ±5%
  • Youth Guarantee - total funded equivalent full-time students
9,200 ±5%8,8479,200 ±5%
  • Gateway - total participants and number of schools.
13,200 ±5% in up to 375 schools13,466 in 369 schools13,200 ±5% in up to 375 schools

Note 1 - 2016/17 Estimated Actual refers to the 2016 calendar year. 2017/18 Budget Standard refers to the 2017 calendar year.

Note 2 - The Student Achievement Component measures are shown at 95% of expected delivery.

Note 3 - The total number of equivalent full-time students is calculated by adding together all Student Achievement Component commitments made by providers in their Investment Plans.

Note 4 - Standard training measure is the amount of training required for a trainee to achieve 120 credits on the New Zealand Qualifications Framework. Funding is based on the number of standard training measures arranged by an industry training organisation in a calendar year.

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)1,204,1881,204,1881,193,867Plans up to three years
Wananga (3)174,629174,629180,901Plans up to three years
Institutes of Technology and Polytechnics (16)564,465564,465559,119Plans up to three years
Schools22,81622,81623,060Plans up to three years
Government Training Establishment1,4211,4211,581Plans up to three years

Non-Government Organisations

Private Training Establishments310,560310,560334,320Plans up to three years
Rural Education Activities Programmes (13)2,5602,5602,492Plans up to three years
Employers10,10910,1099,037Plans up to three years
Community Education Providers2,1422,1421,666Plans up to three years
Industry Training Organisations172,782172,782175,926Plans up to three years

Total

2,465,672

2,465,672

2,481,969

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation from the Tertiary Education Commission will be included in a report appended to the Ministry of Education's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme2018/19--5251,0501,575
Funding for Employment-based Initial Teacher Education2017/18-(719)(1,913)(1,896)(703)
Tuition Subsidy Increase2017/18-9,90519,81019,81019,810
Expanding the Youth Literacy and Numeracy Assessment Tool2017/18-(330)(330)(330)(330)
Transfer Unspent 2016/17 Tuition and Training Funding to Contingencies2016/17(15,500)----
Tai Poutini Polytechnic Short-term Financial Support2016/17(3,600)----
Workplace Literacy and Numeracy2016/17(3,500)3,500---
New Funding for Targeted Tuition Subsidy Increases2016/175,0005,0005,0005,0005,000
More New Zealand Apprentices2016/179002,7004,5006,3007,200
Utilise Headroom Arising from Reduced Demand for Tertiary Education2016/17(10,000)(20,000)(20,000)(20,000)(20,000)
Response to Syrian Refugee Crisis: Implementation2015/161,0531,513757379131
Funding for Additional Trades Academy Places2015/16(2,305)(4,610)(4,610)(4,610)(4,610)
Targeted Tuition Increases for Science, Agriculture and Some Health Sciences2015/1624,50024,50024,50024,50024,500
Investing to Increase the Number of Engineering Graduates2015/166501,3002,9253,9003,900
Flexible Funding Allocation within Tertiary Education2014/1515,000----
Funding for Refugee English Fund Proposals2014/15325----
Re-Allocation of Youth Guarantee Fees- Free Places to Fund Additional Trades Academy Places in Vote Education2014/15(6,050)(6,050)(6,050)(6,050)(6,050)
Reduction of Baseline Student Achievement Component Level 3 and Above2014/15(5,000)(5,300)(5,300)(5,300)(5,300)
Additional Medical Student Places2014/153,1364,5355,9206,6096,609
Funding Rate Increases to Science, Agriculture and Health Science2014/1523,80023,80023,80023,80023,800
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education2013/144,0395,0315,0315,0315,031
Tertiary-Welfare Interface: Reprioritising Foundation Focused Training Opportunities Funding2013/1414,50014,50014,50014,50014,500
Additional Engineering Student Places2013/144,6742,244---
Targeted Tuition Subsidy Increase for Science2013/145,1755,2005,2005,2005,200
Targeted Tuition Subsidy Increase for Engineering2013/142,7902,8402,8402,8402,840
Additional Medical Student Places2013/142,6683,4833,8883,8883,888
Expansion of Maori and Pasifika Trades Training2013/14(9,000)(9,000)(9,000)(9,000)(9,000)
Equalising Private Training Establishment Funding Rates2013/148,2008,2008,2008,2008,200

Reasons for Change in Appropriation

The $16.297 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • an increase in tuition subsidy rates at qualification Level 3 and above in Budget 2017 ($9.905 million increase)
  • a transfer of $3.500 million from 2016/17 to manage the transition to meet increased demand for employer-led workplace literacy and numeracy delivery ($7 million increase)
  • a transfer of $2.730 million from 2016/17 for the DualPathways Pilot being run from 2017 to help students achieve qualifications at Levels 2 and 3 and then move into employment or further education ($5.460 million increase)
  • a transfer in 2016/17 to non-departmental capital expenditure Support to Tai Poutini Polytechnic to provide short-term financial assistance to the polytechnic in the form of a capital injection ($3.600 million increase), and
  • utilisation of headroom arising from reduced demand for tertiary education in Budget 2015 ($10 million decrease).

Conditions on Use of Appropriation

ReferenceConditions
Section 159L Education Act 1989Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister for Tertiary Education, Skills and Employment.
Tertiary Education: Student Achievement Component provides for the Government's share of the cost of delivering courses to students. The amount that a provider receives through this component is calculated on the basis of the nature of the programme and the approved volume of teaching and learning.

Published 25 May 2017
Page updated 11 Oct 2017

The Estimates contain requests from Vote Ministers for appropriations.

The Estimates outlines for the financial year about to start (the Budget year) expenses and capital expenditure the Government plans to incur on specified areas within each Vote, and capital injections it plans to make to individual departments.  The Estimates is organised into 10 sector volumes, with each Vote allocated to one sector.  Supporting information in the Estimates summarises the new policy initiatives and trend information for each Vote and provides information on what is intended to be achieved with each appropriation in a Vote and how performance against each appropriation will be assessed and reported on after the end of the Budget year.

See Budget Data for Excel workbooks containing the data published in the Estimates of Appropriations 2017/18.

See also the Summary Tables for the Estimates of Appropriations 2017/18.

Chapters of the Education Sector volume of the Estimates of Appropriations 2017/18 are available in PDF and HTML format.

Using PDF Files

Contents

Introduction

Purpose of the Estimates of Appropriations

The Estimates of Appropriations (the Estimates) provides members of Parliament with:

  • Details of the terms of all proposed appropriations and of capital injections to departments and Offices of Parliament.
  • Supporting information providing for each appropriation or category of a multi-category appropriation:
    • a concise explanation of what is intended to be achieved, and
    • (unless an appropriation has been exempted from end-of-year performance reporting)
      • a concise explanation of how performance will be assessed
      • who will report on what was achieved with the appropriation, and
      • in what document that report will be presented to the House of Representatives.

The information ensures that Parliament can exercise an appropriate level of scrutiny and control over the Government's operating and investing activities and provides a basis against which Parliament can, after the end of the financial year, assess actual performance against each appropriation (or category of a multi-category appropriation).

The 10 sector volumes of the Estimates are presented to the House of Representatives on the same day as the Government introduces the main Appropriation Bill for each financial year.

How the Estimates of Appropriations are Organised

The Estimates of Appropriations is organised into 10 volumes (B.5 Vols 1-10) by sector, each of which covers one or more Votes. The scope of each sector and the allocation of Votes to a sector reflect a balancing of three desired characteristics - namely that each volume should, as far as possible:

  • reflect natural sectors
  • keep together Votes administered by the same department, and
  • keep together Votes allocated to a particular select committee of the House of Representatives for examination.

The number of sectors and coverage of each sector was set initially in consultation with the Finance and Expenditure Committee.

The number of Votes has increased from 44 in the 2016/17 Estimates of Appropriations to 46 for 2017/18 as:

  • Vote Vulnerable Children, Oranga Tamariki was created on 1 April 2017 (and included in the 2016/17 Supplementary Estimates) consequent on the establishment of the Ministry for Vulnerable Children, Oranga Tamariki
  • Vote Social Housing has been created by transferring relevant appropriations from Vote Social Development and Vote Building and Housing.

The table below shows the Votes in each sector and which department (or Office of Parliament) administers each Vote.

Votes in Each Sector

Votes by Sector Department Administering Vote(s)
Economic Development and Infrastructure Sector - B.5 Vol.1  
Vote Business, Science and Innovation Ministry of Business, Innovation and Employment
Vote Labour Market  
Vote Transport Ministry of Transport
Education Sector - B.5 Vol.2  
Vote Education Ministry of Education
Vote Tertiary Education  
Vote Education Review Office Education Review Office
Environment Sector - B.5 Vol.3  
Vote Environment Ministry for the Environment
Vote Conservation Department of Conservation
Vote Parliamentary Commissioner for the Environment Parliamentary Commissioner for the Environment
External Sector - B.5 Vol.4  
Vote Foreign Affairs and Trade Ministry of Foreign Affairs and Trade
Vote Official Development Assistance  
Vote Defence Ministry of Defence
Vote Defence Force New Zealand Defence Force
Vote Customs New Zealand Customs Service
Finance and Government Administration Sector - B.5 Vol.5  
Vote Prime Minister and Cabinet Department of the Prime Minister and Cabinet
Vote Communications Security and Intelligence Government Communications Security Bureau
Vote Security Intelligence New Zealand Security Intelligence Service
Vote State Services State Services Commission
Vote Finance The Treasury
Vote Revenue Inland Revenue Department
Vote Office of the Clerk Office of the Clerk of the House of Representatives
Vote Parliamentary Service Parliamentary Service
Vote Audit Controller and Auditor-General
Vote Ombudsmen Office of the Ombudsman
Health Sector - B.5 Vol.6  
Vote Health Ministry of Health
Justice Sector - B.5 Vol.7  
Vote Justice Ministry of Justice
Vote Courts  
Vote Corrections Department of Corrections
Vote Police New Zealand Police
Vote Serious Fraud Serious Fraud Office
Vote Attorney-General Crown Law Office
Vote Parliamentary Counsel Parliamentary Counsel Office
Māori, Other Populations and Cultural Sector - B.5 Vol.8  
Vote Māori Development Te Puni Kōkiri
Vote Treaty Negotiations Ministry of Justice
Vote Pacific Peoples Ministry for Pacific Peoples
Vote Women Ministry for Women
Vote Statistics Statistics New Zealand
Vote Internal Affairs Department of Internal Affairs
Vote Arts, Culture and Heritage Ministry for Culture and Heritage
Vote Sport and Recreation  
Primary Sector - B.5 Vol.9  
Vote Primary Industries and Food Safety Ministry for Primary Industries
Vote Lands Land Information New Zealand
Social Development and Housing Sector - B.5 Vol.10  
Vote Social Development Ministry of Social Development
Vote Social Housing  
Vote Vulnerable Children, Oranga Tamariki Ministry for Vulnerable Children, Oranga Tamariki
Vote Building and Housing Ministry of Business, Innovation and Employment

Appropriations

Purpose and Nature of Appropriations

An appropriation is a statutory authority from Parliament allowing the Crown or an Office of Parliament to incur expenses or capital expenditure.

Neither the Crown nor an Office of Parliament can legally incur any expense or capital expenditure - as those terms are defined in the Public Finance Act 1989 (PFA) - unless it is expressly authorised by or under an Act of Parliament.

Limits Created by Appropriations

Each appropriation is allocated to, and managed as, one of seven types of appropriation.

Each appropriation has a defined scope that limits the uses or activities for which the expenses or capital expenditure can be incurred. The scope should be sufficient on its own to establish the nature and extent of the authority to incur expenses or capital expenditure. The wording of the appropriation scope should achieve the balance between being sufficiently precise to act as an effective constraint against non-authorised activities and not so specific that it inadvertently limits activity intended to be authorised.

Except in a very limited number of cases (eg, permanent appropriations or revenue dependent appropriations) an appropriation also limits the amount of expenses or capital expenditure that can be incurred, and the time period within which those expenses or capital expenditure can be incurred.

Aside from the very limited exclusions provided for in the PFA, the amount of expense or capital expenditure authorised by an appropriation is measured in accordance with generally accepted accounting practice.

Responsibility for Appropriations

The PFA requires each appropriation to be the responsibility of one Minister (or the Speaker) and to be administered by one department (or an Office of Parliament).

A Vote is a group of appropriations (and can be a single appropriation) administered by a single department or Office of Parliament. Different appropriations within a Vote may be the responsibility of different Ministers.

Types of Appropriation

The PFA provides for seven types of appropriation. Four appropriation types authorise the incurring of expenses; one type authorises the incurring of capital expenditure; and the remaining types authorise both. These appropriation types can be further differentiated by whether the expenses or capital expenditure are departmental or non-departmental transactions.

Appropriation Type Transaction Status Description
Output Expenses Departmental Authorises expenses to be incurred by a department or an Office of Parliament in supplying a specified category of outputs (goods and services).
  Non-Departmental Authorises expenses to be incurred by the Crown (excluding departments) in purchasing a specified category of outputs (goods and services) from Crown entities or other third parties.
Benefits or Related Expenses Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) in transferring resources (generally to individuals for their personal benefit) for which the Crown receives nothing directly in return.

Examples include Jobseeker Support and Emergency Benefit, Student Allowances and various scholarships and awards.

Borrowing Expenses Departmental

Authorises the incurring of interest or other financing expenses for loans made to a department or an Office of Parliament, or public securities (undertakings that represent part of the public debt) issued by a department or an Office of Parliament.

In practice, limitations on the rights of departments to borrow or issue securities and limitations on how Offices of Parliament can be funded mean that this type of appropriation is unlikely to be used.

  Non-Departmental

Authorises the incurring of interest or other financing expenses for loans made to the Crown (excluding departments), or public securities (undertakings that represent part of the public debt) issued by the Crown.

Crown debt management is centralised, which means that most debt-servicing expenses appear in Vote Finance.

Other Expenses Departmental

Authorises expenses to be incurred by a department or an Office of Parliament that are not either output expenses or borrowing expenses.

Other expenses should be used only for events that cannot be related back to output production, such as redundancy costs arising from a government decision to cease purchasing certain types of outputs, or a loss on sale of assets made surplus by departmental restructuring.

  Non-Departmental

Authorises expenses to be incurred by the Crown (excluding departments) that are not structured or managed as output expenses, benefits or related expenses, or borrowing expenses.

Other expenses is the residual appropriation type, which should not be used where an appropriation could be better classified or managed as one of the other appropriation types (eg, as output expenses).

Examples include disposal of an asset for less than market value, grants to community organisations, subscriptions for membership of international bodies and remuneration of independent statutory officers.

Capital expenditure Departmental Authorises capital expenditure to be incurred by a department or an Office of Parliament to acquire or develop assets for the use of the department.
  Non-Departmental Authorises capital expenditure to be incurred by the Crown (excluding departments) to acquire or develop Crown assets, including the purchase of equity, or making a loan to a person or organisation that is not a department.
Expenses or Capital expenditure Incurred by an Intelligence and Security Department Departmental Authorises both expenses and capital expenditure to be incurred by the New Zealand Security Intelligence Service or the Government Communications Security Bureau.
Multi-Category Appropriations Departmental or
Non-Departmental
Allows separate categories of departmental output expenses, non-departmental output expenses, departmental other expenses, non-departmental other expenses, or non-departmental capital expenditure to be grouped together in one appropriation provided all the categories contribute to a single overarching purpose.

Types of Output Expense Appropriations

Some variation is possible for output expense appropriations. For example, the constraint on the amount of expense that can be incurred is not always a fixed sum.

Output Expense Appropriations Type and Authority Description, Constraints on Form and Typical Application

Standard Output Expense Appropriations

(section 7A(1)(a), Public Finance Act 1989)

Departmental or non-departmental:  Authorise a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services), or the Crown (excluding departments) to incur expenses to purchase a specified category of outputs.

Annual or multi-year:  The authority lapses at the end of the financial year or multi-year period specified.

Single category of output expenses only:  The scope is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by Appropriation Act: The amount of a standard output expense appropriation is limited to a set amount of New Zealand dollars specified in an Appropriation Act.

Typical application:  The normal or default form for an output expense appropriation, used for a wide range of outputs for which the flexibility offered by a multi-category appropriation is not required.

Revenue-Dependent Appropriations (RDA)

(section 21(1), Public Finance Act 1989)

Departmental only:  Authorises a department or an Office of Parliament to incur expenses in supplying a specified category of outputs (goods and services) that are not paid for directly by the Crown.

A proposed RDA must be approved by the Minister of Finance, before it is presented in the Estimates.  Each category of outputs for which an RDA is approved is listed in an Appropriation Act for the relevant financial year.

Annual only:  The authority lapses at the end of the financial year specified.

Single category of output expenses only:  The scope of an RDA is limited to a single category of outputs (a grouping of similar or related outputs).

Amount limited by amount of revenue earned:  The amount of an RDA is limited tothe amount of revenue earned by a department or an Office of Parliament from other departments or from parties other than the Crown during a financial year.  The Minister of Finance can further direct a department to incur expenses to a level lower than the amount of revenue earned, though such directions have been rare.

Typical application:  An RDA provides flexibility to respond to unanticipated changes in the level of external demand for a category of outputs, where the full cost of the outputs is met by external parties and not the Crown.

Appropriation Period

Three kinds of appropriation can be distinguished on the basis of period - annual and multi-year (as referred to in the above table on types of output expense appropriations), and permanent:

  • Annual Appropriations - Most appropriations allow expenses or capital expenditure to be incurred only during a particular financial year. The amounts for RDAs are forecasts only.
  • Multi-Year Appropriations (MYAs) - The PFA also permits appropriations that allow expenses or capital expenditure to be incurred during a specified period that spans the whole or parts of more than one financial year, but no more than five financial years.
  • Permanent Appropriations (sometimes referred to as permanent legislative authorities or PLAs) -Permanent appropriations are authorised by legislation other than an Appropriation Act and continue in effect until revoked by Parliament. Generally the authorising legislation will impose limits on the scope of the appropriation and not its amount. For those appropriations with limits set in cash terms, section 11(2) of the Public Finance Act 1989 requires that they be reported on an accrual basis. The usual legislative wording allows for expenses to be incurred for the purpose specified in the legislation “without further appropriation than this section”. The scope of a permanent appropriation will reference the relevant section of the authorising legislation.

Types of Crown Revenue and Capital Receipts

An operating and capital split also applies to Crown revenue and receipts. The following table outlines the three Crown revenue/receipt types:

Crown Revenue Type Transaction Status Description
Tax Revenue Non-Departmental Tax payable to the Crown, such as Income Tax, GST and Fringe Benefit Tax.
Non-Tax Revenue Non-Departmental Revenue earned by the Crown from its investing and other operating activities.  Examples include interest income, capital charges and dividends from State-owned enterprises.
Capital Receipts Non-Departmental

Capital received by the Crown:

  • when loans are raised (which appear in Vote Finance) or repayments of principal are made on debts owed to the Crown (for example, in Vote Social Development), or
  • when capital assets are sold.

Capital Injections and Movements in Net Assets

A capital injection is an investment by the Crown in a department (or an Office of Parliament), which increases the department's net asset balance. Section 12A of the PFA requires capital injections to departments or an Office of Parliament to be authorised under an Appropriation Act.

Further information on capital injections and other movements in a department's net asset balance appears in the Estimates in a Vote that has appropriations belonging to a department's responsible Minister. The movements reconcile a department's opening and closing net asset balances. This makes it easier to see the balance sheet flows.

Movement Type Description
Capital injections Investment by the Crown in a department, which increases the department's closing net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Surplus to be retained/(deficit incurred) The net surplus forecast to be retained by a department from its operations for a financial year in accordance with section 22(1) of the PFA, or the forecast deficit for the department.  A surplus or deficit will, respectively, increase or decrease the department's closing net asset balance.
Other movements This section is for any other movements that will affect the department's net asset balance. For example movements in asset revaluation reserves.

Guide to Reading the Estimates of Appropriations

After the introduction in each sector volume, the following information is provided, where applicable, for each Vote within the sector.

Title page The title page specifies the appropriation Minister(s) responsible for existing and proposed appropriations in the Vote, the appropriation administrator, and the responsible Minister for the department.
Overview A plain-language overview of the focus of the appropriations in the Vote.
Details of each appropriation and capital injection

One or more tables containing information on each appropriation in a Vote:

Annual and Permanent Appropriations - The title, scope, and amount of each annual and permanent appropriation, the title and single overarching purpose of each multi-category appropriation and the title, scope and forecast amount of each category within a multi-category appropriation.

  • The 2016/17 Final Budgeted column shows the amount in the 2016/17 Estimates varied by any change in the 2016/17 Supplementary Estimates.
  • The 2016/17 Estimated Actual column shows the estimated amount that will have been spent against each appropriation (or category within a multi-category appropriation) by the end of the 2016/17 financial year.
  • In the 2017/18 Budget column, the annual amounts for which parliamentary authority is sought in the Appropriation (2017/18 Estimates) Bill appear in bold type. As permanent appropriations have already been approved by Parliament, their amounts are forecasts, not a limit, so are not shown in bold type.

Multi-Year Appropriations - The type, title, scope and amount of each MYA , including any adjustments since originally appropriated, amounts incurred or estimated for particular years, and the estimated remaining balance.

Total Annual, Permanent and Multi-Year Appropriations - The Total Annual and Permanent Appropriations and MYA forecasts by appropriation type. This table summarises total appropriations, or forecasts for MYAs for the Vote.

Capital Injection Authorisations - The name of the department seeking the additional capital.

  • The 2016/17 Final Budgeted column shows the amount in the 2016/17 Estimates varied by any change in the 2016/17 Supplementary Estimates
  • The 2016/17 Estimated Actual amount is the estimated amount of capital injection that will have been made to the department/Office by the end of the 2016/17 financial year.
  • The 2017/18 Budget amount is the amount for which parliamentary authority is sought in the Appropriation (2017/18 Estimates) Bill and appears in bold type.

Supporting information

 
Part 1 - Vote as a Whole

Part 1.1 New Policy initiatives - A table showing how new initiatives (if any) and the associated expenses or capital expenditure are allocated to appropriations in the Vote. References are included where appropriations in other Votes are affected by the same initiative.

Part 1.2 Trends in the Vote- A presentation of the actual and estimated trends in the Vote.

Summary of Financial Activity - A table showing financial information for the Vote over the preceding five years (actual, budgeted or estimated actual), the current year (Budget) and the following three years (estimated) for each type of appropriation and Crown revenue and capital receipts.  Where Votes have been combined or separated, appropriations have been moved into/out of a Vote, or where categories of expenses or capital expenditure have been moved into/out of a multi-category appropriation, to the extent practicable the information in the table is restated as if these adjustments had occurred before the beginning of the period covered by the table.

Adjustments to the Summary of Financial Activity - A table showing any restated adjustments made to the preceding five years of the Summary of Financial Activity table. Where no restatement has occurred, a statement to this effect is inserted under this sub-heading.

Part 1.3 Analysis of Significant Trends - High-level analysis of appropriations and Crown revenue and capital receipts by type over the nine financial years covered by the Summary of Financial Activity table, explanations of significant changes and may also contain graphical presentations.

Part 1.4 Reconciliation of Changes in Appropriation Structure - A table providing a reconciliation and explanation of any changes in the structure or classification of appropriations (and categories within MCAs) made in the Budget year to facilitate traceability of expenditure between financial years.

Part 1.5 Relationship between individual Appropriations and the Work Programme - An optional table to be used when the relationship between individual Appropriations and the Work Programmeis not readily apparent from the information provided elsewhere in the supporting information.

Guide to Reading the Estimates of Appropriations (continued)

Parts 2-4 Information Provided for each Appropriation or Capital Injection
(where applicable)
Part 2- Departmental Appropriations Part 3 - Non-Departmental Appropriations

Part 4 - MCAs
  Part 2.1
Output Expenses
Part 2.2
Other Expenses*
Part 2.3
Capital Expenditure and Capital Injections**
Part 3.1
Output Expenses
Part 3.2
Benefits or Related Expenses
Part 3.3
Borrowing Expenses
Part 3.4
Other Expenses
Part 3.5
Capital Expenditure
Part 4
Expenses and Capital Expenditure
Title of the appropriation.
The scope of the appropriation. N/A
The single overarching purpose statement for an MCA. N/A N/A N/A N/A N/A N/A N/A N/A
The scope of each category in a multi-category appropriation. N/A N/A N/A N/A N/A N/A N/A N/A
A table showing the budgeted amount and estimated actual expenditure for the previous financial year, and the budgeted amount for the appropriation for the current financial year. ✓ and revenue sources ✓ for capital expenditure




Components of the appropriation or category (where applicable). This information, while not required by the PFA, allows for more meaningful information to be provided where the expense is more than $50 million. N/A N/A




Comparators for restructured appropriations or categories (where applicable). N/A
What is intended to be achieved with each appropriation.
How performance will be assessed for each appropriation (or a statement of why the appropriation has been exempted from this requirement).

N/A
What is intended to be achieved with each category of an MCA, and (if not exempted from reporting) how performance will be assessed. N/A N/A N/A N/A

N/A N/A N/A N/A
Which appropriation Minister or agency will report at the end-of-year on the performance of the appropriation (if not exempted from reporting) and the name of the document in which the information will be presented to the House.


N/A
Service providers table (or text if there is only one service provider), which identifies the main service providers for each non-departmental output expense and non-departmental other expense appropriations. N/A N/A N/A





N/A N/A N/A
Current and past policy initiatives (if any). The current and past policy initiatives tables provides a five-year history of announced initiatives that impact on the Budget year, the preceding year, and the following three years. N/A





Reasons for change, which explain significant changes of amounts of an appropriation between years (if any).

Conditions on use of appropriation, which can include administrative criteria and processes contained in legislation, regulation and Government decisions. N/A N/A



N/A
Memorandum accounts (if any), which record accumulated surpluses and deficits incurred in the provision of outputs on a basis of full cost-recovery from third parties (including other departments). N/A N/A

N/A


N/A N/A N/A N/A
Multi-year appropriations (if any). The information provided is similar to other information above, with the exception of memorandum accounts. N/A N/A



N/A N/A N/A
Capital injections and movements in departmental net assets table. This table shows how capital injections to be authorised relate to movements in departmental net assets and what any capital injection is for. N/A N/A

N/A


N/A N/A N/A N/A N/A

* This appropriation is used for events that cannot be related back to output production and for the salaries of the Officers of Parliament as determined by the Remuneration Authority.

** The purchase or development of assets by a department (other than an intelligence and security department) is made under a permanent appropriation authorised by section 24 of the PFA. Capital expenditure is defined in the PFA as the cost of assets acquired or developed, including tangible, intangible or financial assets, and any ownership interest in entities, but excluding inventories.

Useful Links

  • The suite of documents presented to the House on Budget day can be accessed in the Budgets section of the website: www.treasury.govt.nz/budget/2017
  • Summary Tables, which are available online, provide a high-level perspective and comparative “ready reference” for all appropriations (annual, permanent and MYAs). They cover:
    • the trends for all Votes - showing actual or estimated actual totals for the five years to 2016/17, Budget totals proposed for 2017/18 and estimated totals for the three financial years to 2020/21 with respect to each type of appropriation and of Crown revenue and capital receipts
    • each appropriation type and total appropriations - showing budgeted and estimated actual totals for 2016/17 and totals proposed for 2017/18 for each Vote
    • multi category expenses and capital expenditure (MCAs)
    • current-year revenue-dependent appropriations for each Vote
    • multi-year appropriations by Vote, appropriation type and period
    • capital injection authorisations for 2017/18, and
    • types of Crown revenue and Crown capital receipts for 2016/17 and 2017/18 associated with each Vote.

For inclusion in the Summary Tables, MYAs are converted into actual or forecast amounts for each financial year. The summary tables can be accessed here: www.treasury.govt.nz/budget/2017/summarytables/estimates/

An electronic archive of Budgets of the Government of New Zealand from 1997 to 2016 can be accessed here: www.treasury.govt.nz/budget/archive

How the Estimates Relate to Other Performance Information Presented to the House

This section outlines the relationship between the information in the Estimates and other performance information presented to the House.

Strategic Intentions

Each department, Office of Parliament, Crown entity and Public Finance Act Schedule 4A company presents information on its strategic intentions to the House, at least once every three years. It may be more frequently if the responsible Minister requires it; or if there is a material or significant change in the intentions; or the information in the strategic intentions is false or misleading.

Strategic intentions set out the direction of an agency and how the agency is organised to get there. The information must cover at least the next four financial years, and may include the current financial year. An agency's most recent strategic intentions must always be available on the agency's website, and can be presented to the House with other information eg, the annual report for the previous financial year or grouped with other agencies in a sector.

Annual Performance Expectations

What an agency (eg, department, Office of Parliament, Crown entity or other service provider) intends to achieve with expenditure from appropriations in the next financial year and how each agency will demonstrate its performance (if not exempted) is available in the Estimates.

In addition, Crown entities and Public Finance Act Schedule 4A companies may have reportable outputs that are funded from revenue other than appropriations. What each agency intends to achieve and how it will demonstrate its performance for all its reportable outputs are presented to the House in a Statement of Performance Expectations. The Statement of Performance Expectations must always be available on an agency's website and can be presented to the House with other information eg, the strategic intentions or annual report.

End of Year Performance Information

Performance information on what has been achieved with each appropriation as a whole and each category of a multi-category appropriation is provided to the House in the document most recently indicated in the Estimates or Supplementary Estimates. For example, reporting against appropriations would typically be provided to the House with the annual report of the appropriation administrator (department or Office of Parliament), the Crown entity receiving the appropriation, or in a Minister's report. Alternatively, information on the performance of an appropriation may be provided in a separate sector or thematic report where this would be more useful to Parliament.

Departmental, Office of Parliament, Crown entity, PFA Schedule 4A Company annual reports, and Ministerial reports on what has been achieved with appropriations are required to be provided to the House in the timeframes indicated below:

  • Departmental and Office of Parliament annual report -each department's annual report must be presented 3-4 months after the end of the financial year. The annual report includes the financial statements for the previous financial year, the forecast financial statements for the current financial year, the statement of expenses and capital expenditure, and reporting against the department's strategic intentions and annual performance expectations contained in the Estimates.
  • Crown entity orPFA Schedule 4A company annual report - each annual report must be presented 4-5 months after the end of the financial year and includes the financial statements, as well as reporting against the Crown entity's strategic intentions and annual performance expectations from all sources of reportable revenue.
  • Appropriation Minister's report - the appropriation Minister must present within 4 months after the end of the financial year a report on what has been achieved with non-departmental appropriations that are not reported to the House thorough any other mechanism and have not been exempted from year-end reporting under s.15D of the PFA.

Terms and Definitions

The table below contains terms that are used in the Estimates of Appropriations.

Term Definition
Appropriation An appropriation is a parliamentary authorisation for the Crown or an Office of Parliament to incur expenses or capital expenditure.
Appropriation Minister The Minister responsible for specific appropriations being sought within a Vote.  As several Ministers may now hold appropriations within a single Vote, each appropriation will have a tag (M1, M2 etc) identifying the Minister responsible for that line item.
Appropriation scope One of the defining terms of an appropriation that establishes limits on the activities for which the Crown or an Office of Parliament is authorised to incur expenses or capital expenditure under that appropriation.
Capital expenditure The cost of assets acquired or developed including any ownership interest in entities, but excluding inventory.
Capital injection Investment by the Crown in a department, which increases the department's net asset balance.
Capital withdrawals Returns of capital by a department to the Crown, which reduce the department's closing net asset balance.
Category A grouping of similar or related expenses or a grouping of similar or related capital expenditure.
Crown revenue Revenue earned on behalf of the Crown.  These flows are accounted for as revenue to the Crown rather than as departmental revenue.
Department Generally references to Departments also include an Office of Parliament as provided in section 26E(5) of the Public Finance Act 1989.
Estimated actual

For an amount, the estimated actual incorporates the actual amount that has been spent and an estimate of the amount to be spent for the rest of the year. 

For anything else, the estimated actual incorporates actual performance that has been achieved and an estimate of performance for the rest of the year. 

Expenses Amounts consumed or losses of service potential or future economic benefits, other than those relating to capital withdrawals, in a financial year.  [An accrual concept measured in accordance with generally accepted accounting practice.]
GST Goods and services tax.  Appropriations are stated GST exclusive.
MCA Multi-category appropriation.
MYA Multi-year appropriation.
N/A Not applicable.
Office of Parliament There are three Offices of Parliament - the Controller and Auditor General, the Office of the Ombudsmen, and the Parliamentary Commissioner for the Environment. Each is headed by an Officer of Parliament.
Outputs Goods or services supplied by departments and other entities to external parties.  Outputs are a variety of types, including policy advice, administration of contracts and grants, and the provision of specific services.
PFA Public Finance Act 1989.
PLA Permanent Legislative Authority - the traditional term for an appropriation authorised for an indefinite period by legislation other than an Appropriation Act (also known as a permanent appropriation).
RDA Revenue-dependent appropriations, which are authorised by section 21(1) of the PFA 1989.
Responsible Minister The Minister responsible for the financial performance of a department or Crown entity.  In relation to an Office of Parliament, the Office of the Clerk of the House of Representatives, and the Parliamentary Service, the Speaker is the responsible Minister.
Revenue from the Crown Revenue earned by a department from the Crown for the provision of outputs to or on behalf of the Crown.  These flows are accounted for as departmental revenue.  Revenue from the Crown is eliminated for purposes of reporting the Crown's overall financial performance and position.
Revenue from Others Revenue earned by a department from other departments and from third parties.  Revenue from other departments is eliminated for purposes of reporting the Crown's overall financial performance and position.
Vote A grouping of one or more appropriations that are the responsibility of one or more Ministers of the Crown and are administered by one department or Office of Parliament.

Vol 2 Sector Overview

Social Sector Overview Statement

Vote Education in this volume is part of the Social Sector, which also includes Vote Health (in volume 6), Vote Corrections, Vote Courts, Vote Justice and Vote Police (all in volume 7), Vote Māori Development and Vote Pacific Peoples (both in volume 8) and Vote Building and Housing, Vote Social Development, Vote Social Housing and Vote Vulnerable Children, Oranga Tamariki (all in volume 10). In addition, appropriations to be used by the Social Investment Agency are in Vote State Services (in volume 5).

Government Priorities for the Social Sector

Agencies within the social sector deal with some of the most complex issues facing New Zealand today. For very vulnerable New Zealanders the solutions do not sit within the ambit of a single agency and so agencies have to take person and family/whānau-centred ways of working to improve outcomes. The sector collaborates and undertakes joint activity at local, regional and national levels, when necessary to achieve Government Priorities such as through the focus on investing in vulnerable children through the establishment of a new government agency, and the Better Public Services Results Programme. Some example areas requiring cross-agency collaboration include Welfare Dependence, Health Outcomes for Children, Educational Attainment and Social Housing.

The Government's intent to implement social investment approaches across the social sector provides an opportunity for agencies to sharpen their focus on lifting outcomes for all New Zealanders, but particularly for the most vulnerable. Social investment promotes a client-centred approach so the social sector can help improve the lives of vulnerable New Zealanders and increase the effectiveness of government spending.

Social investment at its most simple is about investing earlier, and more effectively, in the lives of those who may otherwise be on track to experience poor outcomes so they achieve better in the longer-term and at a lower total cost. This will be achieved through better use of data and evidence, more rigorous programme evaluation and both a whole-of-life and whole-of-system understanding of impact, centred around people, not agencies, and whole of life service decision-making and delivery systems.

The Government has established a new portfolio with a Minister Responsible for Social Investment to further advance social investment. As well as better understanding and addressing need within portfolios, social investment approaches will increase understanding of the whole-of-social-system response required to achieve desired outcomes for particular groups of people over their lifetime.

To support the Minister and the sector, a Social Investment Board and Social Investment Agency are being established on 1 July 2017.

How we will Deliver on Government Priorities

Social Sector agencies will continue to develop social investment approaches in their sectors. Agencies are furthering their understanding of the application of investment approaches. There are now investment approaches to welfare, social housing and justice. The Ministry for Vulnerable Children, Oranga Tamariki, launched on 1 April 2017, is taking an investment approach to vulnerable children and is the first agency established from day one using a social investment approach.

The Social Investment Board will drive action to improve outcomes for vulnerable population. It will:

  • advise on the strategic direction, priorities and joint results for the social sector in areas where better results cannot be achieved without a collective approach
  • advise on best investments for achieving joint results, including advice on optimal resource allocations and any reprioritisation across time, and how investments are performing
  • oversee the implementation of any investment plans agreed by the government, working with social sector agencies to deliver demonstrable results.

Social sector agencies are continuing to trial new ways of working. A number of frontline initiatives are adopting social investment principles, for example Whānau Ora, the Family Violence Integrated Safety Response and Place-Based Initiatives. Whānau Ora supports whānau to achieve their aspirations by placing whānau at the centre of planning and decision-making and tailoring solutions relevant to their unique circumstances. The Integrated Safety Response tests an improved multi-agency approach to risk assessment and safety planning for families following a Police family violence incident or high risk prison release. The Place-Based Initiatives aim to improve outcomes for at-risk young people and their families by giving local social sector leaders the data, flexibility and support to collectively tailor responses to what works in their specific communities.

Agencies will be assisted by the social investment architecture developed by the Social Investment Agency. This will include tools, templates, methodologies and analysis to drive effective practice across the social sector. The Social Investment Agency will also provide whole of life and whole of system advice to Ministers, monitor capability across the sector and monitor the impact of some investments and the social investment approach.

How we will Measure Performance

Measurement is inherent in social investment approaches. It includes:

  • Measurement and evaluation to ensure service effectiveness
  • Feedback loops to inform decision makers
  • Commissioning of services to achieve desired outcomes
  • Social licence to gain New Zealanders' support for the sharing and use of data
  • Governance across the social investment system so we can better understand the impact we are having.

There is an expectation that social sector agencies will use social investment approaches to enhance their business as usual operations. Greater use of data and evidence and a focus on tracking outcomes will continue to improve agencies' understanding of their customers and service effectiveness, and enable them to identify opportunities across the system to reduce future demand pressures.

The Social Investment Board will formalise the collective accountability of chief executives for social investment advice and the delivery of results. The Board will have a role in monitoring the performance of investments.

Vote Education

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

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote

The Minister of Education is responsible for appropriations in Vote Education for the 2017/18 financial year covering the following:

  • a total of just over $2,143 million for services from the Ministry of Education (depreciation and capital charge on school accommodation and special education services being the most significant costs)
  • a total of nearly $1,028 million for capital expenditure by the Ministry of Education, mainly related to school-sector property
  • a total of nearly $550 million for educational services from central education Crown entities (New Zealand Qualifications Authority and Careers New Zealand) and other non-departmental providers. The most significant costs are for professional development in the school and early childhood education sectors and school transport services
  • a total of nearly $43 million for allowances, bursaries, scholarships (including national study awards for teachers) and grants
  • a total of just over $7,815 million for educational services from schools (including teacher salaries), early childhood education providers and other education providers, and
  • a total of just over $33 million for capital expenditure for Crown entities and schools.

The Minister of Education is also responsible for a capital injection of nearly $448 million to the Ministry of Education to fund its capital expenditure.

 

 

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/172017/18
Titles and Scopes of Appropriations by Appropriation TypeFinal
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

Place-Based Initiative - Te Tai Tokerau, Northland (M26)

This appropriation is limited to the delivery of services to help achieve the outcomes of the Te Tai Tokerau, Northland Place-Based Initiative and the operational support of that initiative.
1,6871,6871,683

School Property Portfolio Management (M26)

This appropriation is limited to support and advice for schools on property issues; managing and supporting the purchase and construction of new property; upgrades to existing property and disposal of surplus property; and managing teacher and caretaker housing; and other services provided by the Ministry of Education in its stewardship of the land, buildings and other facilities that comprise the State school sector property portfolio.
1,664,0671,664,0671,614,689

Services to Other Agencies RDA (M26)

This appropriation is limited to the provision of services by the Ministry of Education to government departments and other agencies where those services are not within the scope of another departmental output expense appropriation in Vote Education.
3,2523,2524,825

Support and Resources for Education Providers (M26)

This appropriation is limited to expenditure on policies, regulations and services focused on the governance, management and operation of education providers.
96,41296,412111,918

Support and Resources for Parents and the Community (M26)

This appropriation is limited to expenditure on support focused on increasing informed engagement by families and communities in their children's educational outcomes.
12,80712,80711,753

Policy Advice (M26)

This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on education-related matters.
16,44216,442-

Stewardship of the Education System (M26)

This appropriation is limited to services (other than policy advice) provided by the Ministry of Education in its role as steward of the education system (other than tertiary education). It includes services to support Ministers in discharging their portfolio responsibilities (other than policy decision-making).
37,29737,297-

Total Departmental Output Expenses

1,831,9641,831,9641,744,868

Departmental Capital Expenditure

Ministry of Education - Capital Expenditure PLA (M26)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Education, as authorised by section 24(1) of the Public Finance Act 1989.
994,813994,8131,027,714

Total Departmental Capital Expenditure

994,813994,8131,027,714

Non-Departmental Output Expenses

Contribution to the Education Council of Aotearoa New Zealand (M26)

This appropriation is limited to a contribution towards the Education Council of Aotearoa New Zealand carrying out its leadership and other statutory functions for the teaching profession and education.
13,58613,58614,249

Provision of Information and Advisory Services (M26)

This appropriation is limited to the provision of information and advisory services related to education policies and programmes that are the responsibility of Careers New Zealand or the New Zealand Qualifications Authority, support by those two agencies to Ministers to discharge their portfolio responsibilities (other than policy decision-making), and services and support provided by other education sector bodies to raise student achievement and improve governance and capacity of providers.
24,33524,33523,175

Qualifications Support Structures (M26)

This appropriation is limited to the NewZealand Qualifications Authority overseeing the setting of standards and New Zealand qualifications. It also includes standard-setting and qualifications development responsibility, recognition and review of qualifications, records management processes to support the New Zealand Qualifications Framework, and participation in the promotion of the NewZealand qualifications system to key education and immigration partner countries.
6,0496,0496,329

Quality Assurance (M26)

This appropriation is limited to the provision by the New Zealand Qualifications Authority of quality assurance services to support the New Zealand qualifications system that include ongoing development and management of quality assurance processes, monitoring and managing providers at risk and the ongoing refinement and maintenance of the quality assurance framework.
5,2045,2045,094

School Managed Network Funding (M26)

This appropriation is limited to supporting schools' purchase of a core package of managed network services from the provider of the managed network service.
31,15031,15028,750

School Transport (M26)

Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable.
186,895183,895195,450

Secondary School Assessments (M26)

This appropriation is limited to the NewZealand Qualifications Authority overseeing assessment for national secondary school qualifications, including the National Certificate of Educational Achievement and Scholarship examinations, and the moderation of internal and external school assessments.
26,81026,81026,480

Secondary-Tertiary Interface (M26)

This appropriation is limited to delivery of programmes of learning at the secondary-tertiary interface, including programmes offered in partnership by schools and tertiary education organisations.
74,51274,51274,512

Supporting Parenting (M26)

This appropriation is limited to purchasing delivery of specific programmes and providing advice and support that enhances the role of parents/caregivers in the development of their children and promotes the value of quality education experiences.
9,3299,3299,329

Education Research Initiatives (M26)

Purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.
3,0083,008-

Total Non-Departmental Output Expenses

380,878377,878383,368

Benefits or Related Expenses

Boarding Allowances (M26)

This appropriation is limited to an annual allowance to subsidise boarding fees, travel costs and additional tutoring, counselling and related costs for students who face significant challenges accessing appropriate education that will assist them to achieve NCEA level 2 or equivalent.
11,31911,31911,319

Home Schooling Allowances (M26)

Provides an allowance payable to parents/caregivers of children in full-time correspondence programmes for primary and secondary education and to parents/caregivers of children receiving their primary and secondary education at home (where a certificate of exemption from enrolment has been approved under section 21 of the Education Act 1989).
5,1285,1285,128

National Study Awards (M26)

Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards.
18,99718,99719,543

Puawaitanga Scholarships (M26)

This appropriation is limited to providing an annual scholarship for high-potential priority secondary students, who demonstrate leadership potential, to attend one of the selected Maori boarding schools.
1,1521,1521,152

Scholarships for Students to Attend Private Schools (M26)

Assistance to students from low-income families to attend private secondary schools.
4,1264,1264,126

Teacher Trainee Scholarships (M26)

Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers.
1,4421,4421,432

United World Scholarships (M26)

Scholarships for attendance at United World Colleges.
505050

Total Benefits or Related Expenses

42,21442,21442,750

Non-Departmental Other Expenses

Early Childhood Education (M26)

Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds.
1,814,2571,814,2571,845,947

Integrated Schools Property (M26)

Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included.
67,89367,89365,055

Interest Subsidy for Schools (M26)

Provides a subsidy on interest payments for borrowing by private and State integrated schools for approved property-related projects. Administration costs are also included.
120120120

Primary Education (M26)

This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 0 to 8.
3,045,6893,045,6893,210,181

Remission of Fees (M26)

Payment to the New Zealand Qualifications Authority for student examination fees remitted in cases of hardship.
1,2881,2881,288

Schooling Improvement (M26)

School support and schooling improvement projects to improve the capability of schools and school clusters and their responsiveness to the needs of their communities. These include iwi-strengthening education projects.
5,2535,2535,853

Secondary Education (M26)

This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 9 to 13.
2,163,5692,163,5692,251,377

Support for Early Childhood Education Providers (M26)

This appropriation is limited to assisting early childhood education services and other bodies corporate in the provision of child places for early childhood education. Priority will be given to providers in communities that have low levels of participation in early childhood education, to increase the number of child places and therefore availability of early childhood education. The criteria and selection process for each type of assistance are published by the Ministry of Education.
11,22611,22615,526

UNESCO (M26)

Annual membership contribution to United Nations Educational, Scientific and Cultural Organisation's international administration, and a programme of activities of the National Commission, including participation in regional and international activities.
2,0832,0832,083

Total Non-Departmental Other Expenses

7,111,3787,111,3787,397,430

Non-Departmental Capital Expenditure

School Support Project (M26)

Capital costs of implementing approved school support and schooling improvement projects (other than costs related to school property assets).
8328321,880

Schools Furniture and Equipment (M26)

Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved.
41,54941,54931,573

Total Non-Departmental Capital Expenditure

42,38142,38133,453

Multi-Category Expenses and Capital Expenditure

Improved Quality Teaching and Learning MCA (M26)

The overarching purpose of this appropriation is to improve the quality of teaching and learning for children and young people aged 0-18 years.
224,328224,328226,187
Departmental Output Expenses
Support and Resources for Teachers
This category is limited to expenditure on policies and services focused on supporting the work and enhancing the capability of teachers.
72,76372,76380,627
Non-Departmental Output Expenses
Curriculum Support
This category is limited to the purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities
57,16457,16454,213
Professional Development and Support
This category is limited to the delivery of professional development and advisory support to early childhood education services and schools to support effective teaching and enhance self-management.
94,40194,40191,347

Outcomes for Target Student Groups MCA (M26)

The overarching purpose of this appropriation is to improve outcomes for targeted student groups.
683,803683,803690,049
Departmental Output Expenses
Interventions for Target Student Groups
This category is limited to expenditure on policies and services focused on targeted student groups or individuals' participation in education.
257,373257,373258,744
Non-Departmental Output Expenses
Service Academies
This category is limited to providing military-focused programmes for disengaged or disengaging senior students in secondary schools.
3,6403,6403,640
Students Attendance and Engagement
This category is limited to providing services to support increased attendance for non-attending students.
9,5519,5519,676
Non-Departmental Other Expenses
Learning Support
This category is limited to providing additional resources to enable students with additional learning needs to participate in education.
413,239413,239417,989

Oversight of the Education System MCA (M26)

The overarching purpose of this appropriation is to provide policy advice, research, monitoring and related services that enable Ministers to discharge their responsibilities for a well-functioning education system (excluding tertiary education).
--62,599
Departmental Output Expenses
Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
--5,773
Monitoring the Education System
This category is limited to the monitoring and reporting on education at a system-wide level to support Ministers in discharging their responsibilities for education related matters.
--9,757
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on education related matters.
--16,539
Research and Analysis
This category is limited to the production and dissemination of research and data analysis to support the work of other agencies and Ministers in discharging their responsibilities for education related matters.
--27,022
Non-Departmental Output Expenses
Education Research Initiatives
This category is limited to the purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.
--3,008
Independent Advice on Government Priority Areas
This category is limited to the provision, independently of the Ministry of Education, of advice (including second opinion advice and contributions to policy advice led by other agencies, advice on operational matters and expert review service advice) to support decision-making by Ministers on government priority areas.
--500

Total Multi-Category Expenses and Capital Expenditure

908,131908,131978,835

Total Annual and Permanent Appropriations

11,311,75911,308,75911,608,418

Multi-Year Appropriations

Type, Title, Scope and Period of AppropriationsAppropriations, Adjustments and Use$000

Non-Departmental Output Expenses

Teacher-Led Innovation Fund (M26)

This appropriation is limited to supporting teacher-led innovation and classroom-based research of innovative teaching practices.

Commences: 01 July 2015

Expires: 30 June 2020
Original Appropriation10,000
Adjustments to 2015/168,000
Adjustments for 2016/17(85)
Adjusted Appropriation17,915
Actual to 2015/16 Year End1,915
Estimated Actual for 2016/172,890
Estimated Actual for 2017/184,000
Estimated Appropriation Remaining9,110

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

2016/172017/18
Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual and Permanent Appropriations11,311,75911,308,75911,608,418
Total MYA Non-Departmental Output Expenses Forecasts2,8902,8904,000

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

11,314,64911,311,64911,612,418

Capital Injection Authorisations

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Ministry of Education - Capital Injection (M26)452,436337,453447,640

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Changes to Levy Funding Allocations and Processes for Migrant Settlement Services from 2017/18

Improved Quality Teaching and Learning MCA

(see also Vote Labour Market in the Economic Development and Infrastructure Sector, Vote Social Development in the Social Development and Housing Sector and Vote Internal Affairs in the Maori, Other Populations and Cultural Sector)Professional Development and Support-115115115115
Non-Departmental Output Expense
Drawdown of Data and Analytics Contingency - Tranche 0 and First Year of Tranche 1 of the Integrated Education Data (iEd) Programme (10-18)

Stewardship of the Education System

2,606----
Departmental Output Expense

Oversight of the Education System MCA

Research and Analysis-8,156---
Departmental Output Expense

Departmental Capital Injection

-1,504---
Early Childhood Education - Targeted Funding for Disadvantage

Early Childhood Education

-5,00010,00010,00010,000
Non-Departmental Other Expense

Oversight of the Education System MCA

Research and Analysis-2002020250
Departmental Output Expense
Education Council of Aotearoa New Zealand: One-off Increase in Crown Funding

Contribution to the Education Council of Aotearoa New Zealand

4,9346,9469,458--
Non-Departmental Output Expense
Education Council Online Services - Contingency Draw Down

Contribution to the Education Council of Aotearoa New Zealand

7081,2881,071979979
Non-Departmental Output Expense

Departmental Capital Injection

2,4501,156---
Education Infrastructure Delivery - Additional Support

School Property Portfolio Management

-8,0008,000--
Departmental Output Expense
Education Recovery and Response: Kaikoura Earthquakes

Primary Education

340280106--
Non-Departmental Other Expense

Secondary Education

17014054--
Non-Departmental Other Expense

Improved Quality Teaching and Learning MCA

Support and Resources for Teachers13515080--
Departmental Output Expense
English for Speakers of Other Languages - Increasing Funding

Outcomes for Target Student Groups MCA

Learning Support-3,6035,756--
Non-Departmental Other Expense
Enhancement of the Education Access Function

School Property Portfolio Management

-2,0003,0003,000-
Departmental Output Expense
Establishing Round Four Partnership Schools
| Kura Hourua

Primary Education

360235496593612
Non-Departmental Other Expense

Secondary Education

(1,460)535(496)(593)(612)
Non-Departmental Other Expense

Oversight of the Education System MCA

Monitoring the Education System-330---
Departmental Output Expense
Funding for Employment-Based Initial Teacher Education

Teacher Trainee Scholarships

-225225--
(see also Vote Tertiary Education in the Education Sector)Benefits or Related Expense

Secondary Education

-4941,6881,896703
Non-Departmental Other Expense
Improving Education Infrastructure Investment Decisions and Services for Schools

School Property Portfolio Management

2,000----
Departmental Output Expense
In-class Support for Students with High Learning Needs - Increasing Access

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups-2,1884,4434,4434,443
Departmental Output Expense
Incredible Years for Children with High Needs

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups-6801,1101,3101,090
Departmental Output Expense
Integrated School Property Funding

Integrated Schools Property

-10,00010,000--
Non-Departmental Other Expense
Investing in Educational Success: Implementation Update

Improved Quality Teaching and Learning MCA

Support and Resources for Teachers1,6137,8527,063--
Departmental Output Expense
Investing in Information and Communications Technology

School Property Portfolio Management

-42648793
Departmental Output Expense

Support and Resources for Education Providers

-5176104111
Departmental Output Expense

Support and Resources for Parents and the Community

-13202729
Departmental Output Expense

Improved Quality Teaching and Learning MCA

Support and Resources for Teachers-477096102
Departmental Output Expense

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups-203305415441
Departmental Output Expense

Oversight of the Education System MCA

Monitoring the Education System-27405559
Departmental Output Expense
Policy Advice-13192628
Departmental Output Expense
Kura Kaupapa Maori Management Support

Provision of Information and Advisory Services

-70532532532
Non-Departmental Output Expense
Learning Support - Meeting Increasing Costs

Provision of Information and Advisory Services

-20406080
Non-Departmental Output Expense

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups-551657713769
Departmental Output Expense
Maori Language in Education - Increasing Curriculum Resources

Improved Quality Teaching and Learning MCA

Support and Resources for Teachers-1,9101,9101,9101,910
Departmental Output Expense
Operational Grant Funding Increase for Schools

Early Childhood Education

-6121212
Non-Departmental Other Expense

Primary Education

-4,6529,3789,3819,426
Non-Departmental Other Expense

Secondary Education

-3,3226,6586,6766,671
Non-Departmental Other Expense

Improved Quality Teaching and Learning MCA

Curriculum Support-29585858
Non-Departmental Output Expense

Outcomes for Target Student Groups MCA

Learning Support-5881,1721,1741,174
Non-Departmental Other Expense
Oral Language - Removing Barriers to Access

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups-7661,1521,1521,152
Departmental Output Expense

Oversight of the Education System MCA

Monitoring the Education System-200200200200
Departmental Output Expense
Research and Analysis-166333333166
Departmental Output Expense
Schools Growth Package

School Property Portfolio Management

-3,09311,22220,57529,205
Departmental Output Expense

Schools Furniture and Equipment

-3,5402,6197,3535,486
Non-Departmental Capital Expenditure

Departmental Capital Injection

-116,472113,221124,31819,357
Schools Payroll - Holidays Act Project

Support and Resources for Education Providers

-7,7717,615--
Departmental Output Expense
Schools Payroll Sustainability Investment

Support and Resources for Education Providers

-4,0003,8003,3002,800
Departmental Output Expense
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-2019

Contribution to the Education Council of Aotearoa New Zealand

5,2203,4097--
Non-Departmental Output Expense

National Study Awards

256444447447447
Benefits or Related Expense

Early Childhood Education

4,1466,8597,0737,0737,073
Non-Departmental Other Expense

Primary Education

51,52488,21183,86983,86983,869
Non-Departmental Other Expense

Secondary Education

6481,2581,5921,5921,592
Non-Departmental Other Expense

Outcomes for Target Student Groups MCA

Learning Support2,2843,9143,7313,7313,731
Non-Departmental Other Expense
Settlement of 2016-2018 Special Education Field Staff Collective Agreement Negotiations

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups1,7002,0652,0652,0652,065
Departmental Output Expense
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'

Contribution to the Education Council of Aotearoa New Zealand

354236118--
Non-Departmental Output Expense

National Study Awards

107224268268268
Benefits or Related Expense

Early Childhood Education

46999
Non-Departmental Other Expense

Primary Education

6371,1841,6201,6201,620
Non-Departmental Other Expense

Secondary Education

5,3549,93913,61913,61913,619
Non-Departmental Other Expense

Outcomes for Target Student Groups MCA

Learning Support143264365364364
Non-Departmental Other Expense
Strengthening Frontline Service Delivery to Support Student Achievement

Support and Resources for Education Providers

-4,6325,186--
Departmental Output Expense
Support for Projects that Strengthen Digital Technologies in the National Curriculum

Improved Quality Teaching and Learning MCA

Support and Resources for Teachers1,000----
Departmental Output Expense
Supporting Schools At-risk - Additional Funding

Schooling Improvement

-600600--
Non-Departmental Other Expense
Te Tai Tokerau, Northland Place-Based Initiative: Memorandum of Understanding and Funding

Place-Based Initiative - Te Tai Tokerau, Northland

1,6871,683---
Departmental Output Expense
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme

Primary Education

--4427821,123
(see also Vote Tertiary Education in the Education Sector, Vote Labour Market in the Economic Development and Infrastructure Sector, Vote Social Development in the Social Development and Housing Sector and Vote Health in the Health Sector)Non-Departmental Other Expense

Secondary Education

--8701,3111,752
Non-Departmental Other Expense

Outcomes for Target Student Groups MCA

Interventions for Target Student Groups--385385385
Departmental Output Expense
Learning Support--480663750
Non-Departmental Other Expense
Total Initiatives88,920333,557346,108318,118216,108

1.2 - Trends in the Vote

Summary of Financial Activity

2012/132013/142014/152015/162016/172017/182018/192019/202020/21
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 Expenses1,783,4471,875,3591,963,3722,082,0712,158,4852,155,4851,744,868387,3682,132,2362,164,8142,171,5092,173,209
Benefits or Related Expenses35,96432,06733,65833,85242,21442,214N/A42,75042,75042,61442,38942,389
Borrowing Expenses------------
Other Expenses6,320,0236,363,3536,646,1916,917,7487,111,3787,111,378-7,397,4307,397,4307,539,7467,621,0757,830,816
Capital Expenditure502,863569,290722,507798,3461,037,1941,037,1941,027,71433,4531,061,1671,220,450869,225685,120
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses501,616531,756565,449514,832552,139552,139398,462162,384560,846549,481534,771532,545
Other Expenses331,763321,630336,131395,657413,239413,239-417,989417,989418,842412,597419,322
Capital Expenditure------N/A-----

Total Appropriations

9,475,6769,693,45510,267,30810,742,50611,314,64911,311,6493,171,0448,441,37411,612,41811,935,94711,651,56611,683,401

Crown Revenue and Capital Receipts

Tax Revenue------N/A-----
Non-Tax Revenue21,7405,5869,34115,6908,3158,315N/A8,2058,2058,2058,2058,205
Capital Receipts------N/A-----

Total Crown Revenue and Capital Receipts

21,7405,5869,34115,6908,3158,315N/A8,2058,2058,2058,2058,205

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 Appropriations in the Details of Appropriations and Capital Injections.

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

2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations

Output Expenses (40,658)(48,956)(51,303)(53,471)(57,247)-
Benefits or Related Expenses ------
Borrowing Expenses ------
Other Expenses ------
Capital Expenditure ------
Intelligence and Security Department Expenses and Capital Expenditure ------
Multi-Category Expenses and Capital Expenditure (MCA)
   Output Expenses 40,65848,95651,30353,47157,247-
   Other Expenses ------
   Capital Expenditure ------

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

Tax Revenue ------
Non-Tax Revenue ------
Capital Receipts ------

Total Crown Revenue and Capital Receipts

------

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

1.3 - Analysis of Significant Trends

Following a review of the structure of Vote Education appropriations, some changes have been made to the Vote. An additional new multi-category appropriation has been established from 2017/18 and is detailed in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

Significant changes in departmental and non-departmental appropriations related to early childhood education and schooling between 2012/13 and 2020/21 are discussed briefly below.

Departmental Expenditure

The largest component of departmental output expenditure relates to the provision of school land and buildings, including capital charge, depreciation and net losses. The major changes here result from movements in the value of the property portfolio after additional government investment in schools, the annual upward or downward revaluation of the portfolio (including impairment of assets) and disposals. In 2016/17 the capital charge rate was reduced from 8% to 7% from 1 July 2016 and to 6% from 1 January 2017.

Other significant changes to departmental funding include:

  • increased provision for services for students with learning support needs, including provision for teachers' aides, and additional in-class support, provision for intensive wraparound services, adjustments to funding levels for the Ongoing Resourcing Scheme and School High Health Needs Fund (both for price and volume changes) and settlements of related collective agreements. This is partly offset by a transfer of some Ongoing Resourcing Scheme funding to the Learning Support non-departmental other expense category under Outcomes for Target Student Groups MCA where it is managed by other providers
  • support for Youth Mental Health initiatives and other initiatives like assessments for vulnerable children and achievement and investment management
  • development of new education schools' payroll systems and subsequent enhancements for managing technology risks and increasing efficiency along with related advisory services, as well as remediating Novopay mainly from 2012/13 to 2014/15, development of other systems, such as the Early Learning Information system and an education-wide funding system
  • support for ultra-fast broadband in schools, including the implementation of the School Network Upgrade Project and initiatives to support the implementation of a managed network for all schools
  • supporting the implementation of Youth Guarantee initiatives
  • support for the design and delivery of curriculum resources for students and teachers in Maori language in education provision, in particular Maori-medium education
  • provision for the cost of establishing, designing, and implementing required changes to ensure that the schools payroll service is compliant with Holidays Act 2003 legislation, and
  • supporting implementation of changes in the Education Act 1989 to deliver increased student achievement.

Departmental output expense appropriations Interventions for Target Student Groups and Support and Resources for Teachers have been moved to multi-category appropriations from 2016/17 and Stewardship of the Education System and Policy Advice have been moved to another multi-category appropriation from 2017/18.

Departmental Capital Expenditure

Most capital expenditure for the Ministry of Education is for the school property works programme. Movements between years mainly relate to factors such as site purchases and the timing of roll growth and redevelopment projects. There is also increased focus on expenditure in Christchurch to remediate damage from the 2010 and 2011 earthquakes. Also included is expenditure on the School Network Upgrade Project and broadband initiatives as well as the development of information systems.

Capital Injections

Additional capital provided to the Ministry over the periods mainly relates to construction of new schools and additional classrooms required for roll growth, as well as repairing or replacing buildings damaged in Christchurch related to the earthquakes.

In addition, there has been investment in broadband for schools and school network upgrades, as well as new systems, including the Early Learning Information System and Education Resourcing System.

Non-Departmental Outputs

Changes in non-departmental output expenses are principally owing to a combination of:

  • steady growth in the cost of school transport services, partly offset by cost savings in special education transport services from 2013 and other efficiency savings from 2015/16
  • consolidating funding for secondary-tertiary programmes under a common cash-based resourcing model from 2013 and reallocations from Youth Guarantee funding (in Vote Tertiary Education) for additional Trades Academy places
  • support for the purchase of services from the provider of a managed network for schools since 2013/14
  • increasing early childhood education participation through providing prioritised support, a retention programme for Maori-medium beginning teachers and improving school governance through increased support for boards of trustees from 2013/14
  • reducing commitments to a variety of programmes from 2013/14 and improving the cost effectiveness of professional learning and development from 2016/17
  • provision for the Home Interaction Programme for Parents and Youngsters moved from Vote Social Development from 2016/17
  • support for the Education Council of Aotearoa New Zealand from 2015/16 to deliver its new functions under the Education Amendment Act 2015 and provision for Council practicing certificate fees as part of the settlement of various Teachers', and Principals' Collective Agreements, and
  • provision for a Teacher-Led Innovation Fund from 2015/16 to 2019/20.

Non-departmental output expense appropriations Professional Development and Support, Curriculum Support and Service Academies were moved to multi-category appropriations from 2016/17. Education Research Initiatives and the Independent Advice on Government Priority Area component of the Provision of Information and Advisory Services appropriation also moved to a multi-category appropriation from 2017/18.

Benefits or Related Expenses

Changes in benefit expenses are largely related to:

  • transfers of funding to Vote Social Development for teacher trainee scholarship payments and other reprioritisations, and
  • increases in the number of National Study Awards available to existing teachers as a result of settlements of collective agreements and provision of awards for top-performing teachers. This was partly offset by reductions in the schooling and early childhood education sectors and partly from reprioritisation of the baseline and to better reflect actual demand.

Non-Departmental Other Expenses

Other expense appropriations account for most funding under Vote Education. Changes in these appropriations mainly reflect a combination of:

  • roll-related increases in early childhood education sessional payments, as well as revised funding rates. From 2013, there was increased funding to achieve the 98% participation target under Better Public Services
  • roll-related increases in funding for schooling, including for teacher salaries, as well as provision for improved operations funding rates for schools
  • the impact of wage settlements for teachers and principals (including the flow-on of these costs to the early childhood education sector) as well as changes to ACC rates and superannuation subsidies
  • provision for implementing the Youth Package from 2012/13 and for the establishment of partnership schools from 2013/14
  • implementation of Investing in Educational Success from 2015
  • other initiatives in the schooling sector, including support for students to meet literacy and numeracy standards, and provision for Youth Guarantee services, although they were partly offset by transfers to output expenses by consolidating funding for secondary-tertiary programmes
  • provision for occasional impairment and balance sheet adjustments, and
  • impact of reprioritisation decisions and other efficiencies.

Non-departmental other expense appropriation Learning Support (previously Special Needs Support) has been moved to a multi-category appropriation from 2016/17.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure over the period relate to incentives for the disposal of surplus properties until 2014/15, funding for furniture and equipment for new school buildings, the School Network Upgrade Project and broadband initiatives. There was also working capital for two new agencies - The Network for Learning Ltd and Education Payroll Ltd along with a transfer of assets for the latter.

1.4 - Reconciliation of Changes in Appropriation Structure

Old StructureNew Structure
2016/17 Appropriations
in the 2016/17 Structure
2016/17
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2016/17 Appropriations
in the 2017/18 Structure
2016/17
(Restated)
$000
2017/18
$000

Departmental Output Expense

Stewardship of the Education System

37,297Transferred to Ministerial Services, category of the Oversight of the Education System MCA(8,091)
Transferred to Monitoring the Education System, category of the Oversight of the Education System MCA(8,800)
Transferred to Research and Analysis, category of the Oversight of the Education System MCA(20,406)

Multi-Category Expenses and Capital Expenditure

Oversight of the Education System MCA

Departmental Output Expenses

Policy Advice

16,442Transferred to Policy Advice, category of the Oversight of the Education System MCA
Policy Advice
16,44216,539
Transferred from Stewardship of the Education System8,091
Ministerial Services
8,0915,773
Transferred from Stewardship of the Education System8,800
Monitoring the Education System
8,8009,757
Transferred from Stewardship of the Education System20,406
Research and Analysis
20,40627,022

Non-Departmental Output Expenses

Non-Departmental Output Expenses

Education Research Initiatives

3,008Transferred to Education Research Initiatives, category of the Oversight of the Education System MCA
Education Research Initiatives
3,0083,008
Transferred from Provision of Information and Advisory Services500
Independent Advice on Government Priority Areas
500500

Non-Departmental Output Expenses

Provision of Information and Advisory Services

24,335

Provision of Information and Advisory Services

23,83523,085
Transferred to Independent Advice on Government Priority Areas, category of the Oversight of the Education System MCA(500)
Total Changes in Appropriations81,082-81,08285,684

Departmental output expenses Stewardship of the Education System and Policy Advice, non-departmental output expense Education Research Initiatives and the Independent Advice on Government Priority Area component of non-departmental output expense Provision of Information and Advisory Services have been combined into a multi-category appropriation called Oversight of the Education System MCA, with an overarching purpose to provide policy advice, research, monitoring and related services that enable Ministers to discharge their responsibilities for a well-functioning education system (excluding tertiary education).

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

1.5 - Relationship between Individual Appropriations and the Work Programmes

Appropriations contributing to outcomes and intermediate objectives:
Long term outcomes and objectives:Contributing to one or two outcomes:Contributing to all three outcomes:
The education system is relevant and reaches all children and students
  • High quality regulatory, funding and institutional arrangements
  • High quality curriculum and qualifications frameworks
  • High quality infrastructure
  • Information and data enabling good decision-making
  • School Property Portfolio Management (M26)
  • Ministry of Education - Capital Expenditure PLA (M26)
  • Contribution to the Education Council of Aotearoa New Zealand (M26)
  • School Managed Network Funding (M26)
  • School Transport (M26)
  • Secondary School Assessments (M26)
  • Teacher-Led Innovation Fund (M26)
  • Boarding Allowances (M26)
  • Teacher Trainee Scholarships (M26)
  • Early Childhood Education (M26)
  • Integrated Schools Property (M26)
  • Interest Subsidy for Schools (M26)
  • Primary Education (M26)
  • Schooling Improvement (M26)
  • Support for Early Childhood Education Providers (M26)
  • UNESCO (M26)
  • School Support Project (M26)
  • Schools Furniture and Equipment (M26)
  • Support and Resources for Education Providers (M26)
  • Support and Resources for Parents and the Community (M26)
  • Provision of Information and Advisory Services (M26)
  • Qualifications Support Structures (M26)
  • Supporting Parenting (M26)
  • Home Schooling Allowances (M26)
  • Secondary Education (M26)
  • Improved Quality Teaching and Learning MCA (M26)
  • Outcomes for Target Student Groups MCA (M26)
  • Oversight of the Education System MCA (M26)
Every child and student achieves educational success
  • Informed and supportive parents, whanau, iwi, communities and employers
  • Effective teaching and educational leadership
  • High participation and engagement
  • All learners achieving and progressing to their potential
  • Place-Based Initiative - Te Tai Tokerau, Northland (M26)
  • Contribution to the Education Council of Aotearoa New Zealand (M26)
  • School Transport (M26)
  • Secondary School Assessments (M26)
  • Secondary-Tertiary Interface (M26)
  • Teacher-Led Innovation Fund (M26)
  • Boarding Allowances (M26)
  • National Study Awards (M26)
  • Puawaitanga Scholarships (M26)
  • Scholarships for Students to Attend Private Schools (M26)
  • Teacher Trainee Scholarships (M26)
  • United World Scholarships (M26)
  • Early Childhood Education (M26)
  • Primary Education (M26)
  • Remission of Fees (M26)
  • Schooling Improvement (M26)
  • Support for Early Childhood Education Providers (M26)
New Zealanders have skills and knowledge for work and life
  • Skills match labour market needs
  • Socially and culturally confident and competent people
  • Internationally credible skills and institutions
  • High quality research and innovation
  • Quality Assurance (M26)
  • Secondary-Tertiary Interface (M26)
  • Puawaitanga Scholarships (M26)

Part 2 - Details of Departmental Appropriations

2.1 - Departmental Output Expenses

Place-Based Initiative - Te Tai Tokerau, Northland (M26)

Scope of Appropriation

This appropriation is limited to the delivery of services to help achieve the outcomes of the Te Tai Tokerau, Northland Place-Based Initiative and the operational support of that initiative.

Expenses and Revenue

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,6871,6871,683
Revenue from the Crown1,6871,6871,683
Revenue from Others---

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better long-term outcomes for children and young people and their whanau/families through a social investment approach co-designed with three high-needs communities in Northland.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Children and their whanau and families in Otangarei, Kaikohe and Kaitaia/Te Hiku who have an integrated service plan.

57060570

Co-designed Community Action Plans for Otangarei, Kaikohe and Kaitaia/Te Hiku are being implemented.

Revised measureRevised measureAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Te Tai Tokerau, Northland Place-Based Initiative: Memorandum of Understanding and Funding2016/171,6871,683---

School Property Portfolio Management (M26)

Scope of Appropriation

This appropriation is limited to support and advice for schools on property issues; managing and supporting the purchase and construction of new property; upgrades to existing property and disposal of surplus property; and managing teacher and caretaker housing; and other services provided by the Ministry of Education in its stewardship of the land, buildings and other facilities that comprise the State school sector property portfolio.

Expenses and Revenue

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,664,0671,664,0671,614,689
Revenue from the Crown1,645,0251,645,0251,611,503
Revenue from Others26,72526,7253,186

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Capital charge965,160965,160917,143
Depreciation557,790557,790570,080
Management of the School Sector Property Portfolio141,117141,117127,466
Total1,664,0671,664,0671,614,689

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a school sector property infrastructure that ensures a fit-for-purpose learning environment.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The Ministry is seen as a high quality property manager for government as measured by the Asset Management maturity index for the school property portfolio (see Note 1).

Lower Advanced Lower Advanced Lower Advanced

Percentage of State schools with a utilisation ratio between 75% and 105% as an indicator of the effective use of the school property portfolio (see Note 2).

65%73%65%

Percentage of State school buildings with property-related elements of Innovative Learning Environment assessments showing functionality score of '3' or better (see Note 3).

New measureNew measure65%

Note 1 - The Asset Management maturity index scale is 0-20% Aware, 20-40% Minimum, 40-60% Core, 60-80% Intermediate, and 80-100% Advanced on the index criteria established by the Treasury, where Lower Advanced means 80-90% on that scale.

Note 2 - Utilisation is expressed as the ratio of the number of classrooms a school is entitled to relative to its actual number of classrooms at the school. Classroom entitlement is calculated based on maximum roll figures, school types, Maori immersion rolls, special needs and technology aspects of the school. This measure covers about 70% of State schools in total, and excludes schools with 100 or fewer students and schools which are less than 10 years old. Schools with enrolments of 100 students or fewer are excluded because small variations in enrolments will result in major changes in utilisation, and new schools are excluded because they would have been built in anticipation of future need for increased space.

Note 3 - The functionality measure is based on property-related elements of Innovative Learning Environment (ILE) assessments conducted by accredited assessors at the time each school prepares its ten-year property plan (10YPP). This measure is only available for a subset of schools at present but will be progressively applied across all schools as part of the property planning cycle. The functionality of buildings is scored on a nominal scale of 1 to 5 (1 being the highest functionality rating) based on the extent to which the building is assessed as being compliant (0%, 50% or 100%) with requirements for Designing Quality Learning Space (DQLS), Health and Hygiene (H&H) and Flexible Learning Spaces (FLS). A rating of 1 applies to buildings which comply with DQLS, H&H and FLS criteria. A rating of 2 applies to buildings which score 100% for both DQLS and H&H criteria. A rating of 3 applies to buildings which have either a score of at least 50% for both DQLS and H&H criteria or 100% for one of these criteria. A rating of 4 applies to buildings which score 50% for one of DQLS and H&H criteria. A rating of 5 applies to buildings which score 0% for both DQLS and H&H criteria.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Education Infrastructure Delivery - Additional Support2017/18-8,0008,000--
Schools Growth Package2017/18-3,09311,22220,57529,205
Enhancement of the Education Access Function2017/18-2,0003,0003,000-
Investing in Information and Communications Technology2017/18-42648793
Improving Education Infrastructure Investment Decisions and Services for Schools2016/172,000----
Supporting Infrastructure Service Delivery2016/178,000----
Technology in Schools2016/171,133(320)(320)(320)(320)
School Property Growth Package2016/178,41716,85725,97129,10429,104
Christchurch Schools Rebuild2016/171,2548,88615,26415,26415,264
Third New Zealand Schools Public Private Partnership2015/16(2,001)(5,442)1,69327,06926,787
New Zealand Schools Public Private Partnership Project Two2015/167,39819,43120,81619,54319,950
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(1,355)(1,357)(1,359)(1,072)(1,072)
New Schools and Roll-Growth Classrooms2015/1620,64226,73027,87827,87827,878
School Buildings Insurance2015/168,5008,5008,5008,5008,500
Public Private Partnership - Hobsonville Point2014/158,3948,3768,3548,3278,296
Greater Christchurch Education Renewal Programme: Property Components2014/155,5603,8603,8603,8603,860
School Property Expansion2014/1513,08819,83019,83019,83019,830
Asset Management Change Programme2014/152,0802,0801,3801,3801,380
Savings - Property Procurement Efficiencies2014/15(615)(615)(615)(615)(615)
School Property Programme Business Case and New Capital Funding for Budget 20142013/1411,27411,17711,17711,17711,177
Greater Christchurch Schools Infrastructure Renewal Programme Business Case2013/14(2,500)(2,500)---
Establishing Three New Primary Schools and the Provision of Roll-Growth Classrooms2013/147,1627,1627,1627,1627,162
Savings from Departmental Line-by-Line Review2013/14(8,600)(8,600)(8,600)(8,600)(8,600)
Depreciation Charges on Existing School Property2013/145,0005,0005,0005,0005,000
School Network Upgrade Project and National Education Network Trial2013/147,5397,5397,5397,5397,539
Canterbury Earthquake Education Renewal (Schools Infrastructure Group)2013/146,0006,0006,0006,0006,000
School Property Improvement Programme2013/141,2001,2001,2001,2001,200
School Property Asset Management Improvement Programme2013/141,5001,5001,5001,5001,500
Cost Pressures on Established Property Management Services Contracts2013/14700700700700700

Reasons for Change in Appropriation

The $49.378 million decrease in this appropriation for 2017/18 is mainly due to a combination of:

  • decrease in the capital charge rate from 8% to 6% ($65.787 million decrease)
  • utilisation of revenues from successful legal claims in 2016/17 to cover costs associated with weather-tightness issues in schools ($9.056 million decrease)
  • operating costs related to new schools and additional classrooms ($18.545 million increase), and
  • continuation of the Christchurch Schools Rebuild programme ($5.932 million increase).

Services to Other Agencies RDA (M26)

Scope of Appropriation

This appropriation is limited to the provision of services by the Ministry of Education to government departments and other agencies where those services are not within the scope of another departmental output expense appropriation in Vote Education.

Expenses and Revenue

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,2523,2524,825
Revenue from Others3,2523,2524,825

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide support services to government departments and other government or education agencies, on a cost-recovery basis, including office accommodation and related services, and information technology management and development services.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The minimum percentage of service standards which are agreed as 'Achieved' with the recipients of those services (see Note 1).

95%95%95%

Note 1 - The reported percentage is the lowest level of achievement across all service level agreements.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Reasons for Change in Appropriation

The $1.573 million increase in this appropriation for 2017/18 is mainly due to providing office co-location in Christchurch ($1.029 million increase) and access to an Education Workforce Shared Platform ($580,000 increase) on a cost recovery basis.

Support and Resources for Education Providers (M26)

Scope of Appropriation

This appropriation is limited to expenditure on policies, regulations and services focused on the governance, management and operation of education providers.

Expenses and Revenue

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation96,41296,412111,918
Revenue from the Crown95,27295,272110,778
Revenue from Others1,1401,1401,140

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Provision of Services49,17549,17561,381
Resourcing of Providers25,46525,46528,765
Regulation of Providers11,02211,02211,022
At-Risk Provider Interventions10,75010,75010,750
Total96,41296,412111,918

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective management and monitoring of services provided to the education sector that allows it to focus on educational success.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

All resourcing payments will be accurate and timely in respect of: payment amounts, payment to the correct providers, schedules advised to public education service providers or agreements with those providers, timeframes notified to payees, and fulfilling statutory requirements:

  • accuracy
100%100%100%
  • on time.
100%75%100%

Percentage of payroll payments to eligible teachers and school support staff which are:

  • accurately calculated
99.5%99.5%99.5%
  • sent to financial institutions on time in order to be processed on or before advised pay dates.
99.5%99.5%99.5%

Percentage of decisions on proposed statutory interventions under Part 7A of the Education Act 1989 that are made within three months of the confirmed Education Review Office report being published, or request from Boards of Trustees, or referral from the sector, or determination by the Ministry (see Note 1).

95% or more95%95%

Percentage of eligible early childhood education services connected to the Early Learning Information system.

98%98%98%

Specialist learning support service providers who are required to develop an action plan are satisfied with the support received from the Ministry (see Note 2).

New measureNew measure85%

Note 1 - Part 7A of the Education Act 1989 allows the Minister of Education or the Secretary for Education (or their delegates) to put in place a statutory intervention in a State or State-integrated school. The Minister must have reasonable grounds to believe that the operation of the school, or the welfare or educational performance of its students, is at risk.

Note 2 - Specialist learning support service providers who do not have effective internal evaluation processes on initial review are required to develop an action plan with the support of the Ministry of Education.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Schools Payroll Sustainability Investment2017/18-4,0003,8003,3002,800
Investing in Information and Communications Technology2017/18-5176104111
Strengthening Frontline Service Delivery to Support Student Achievement2017/18-4,6325,186--
Schools Payroll - Holidays Act Project2017/18-7,7717,615--
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(86)(85)(84)(66)(66)
Savings - School Transport Operational Efficiencies2015/167501,000500500500
Education Payroll2015/1612,43812,43812,43812,43812,438
Education-Wide Funding System2015/165,4306,7303,8903,8903,890
Achievement and Investment Management2015/162,8063,2763,2763,2763,276
Network for Learning2013/147,0827,0827,0827,0827,082
Canterbury Earthquake - Support Packages for Christchurch Schooling Workforce2013/14199199199199199
Canterbury Earthquake - Greater Christchurch Education Taskforce2013/142,9532,9532,9532,9532,953
Quality Teaching Agenda2013/141,218----
Early Learning Information System2012/134,9705,0965,0245,0245,024

Reasons for Change in Appropriation

The $15.506 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • provision for the cost of establishing, designing, and implementing required changes to ensure that the schools' payroll service is compliant with Holidays Act legislation ($5.771 million increase)
  • strengthening frontline service delivery to support student achievement ($4.632 million increase)
  • ongoing stability and sustainability of the schools' payroll system by managing technology risks and increasing efficiency ($4 million increase), and
  • ongoing development and implementation of a new Education Resourcing System ($1.300 million increase).

Support and Resources for Parents and the Community (M26)

Scope of Appropriation

This appropriation is limited to expenditure on support focused on increasing informed engagement by families and communities in their children's educational outcomes.

Expenses and Revenue

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation12,80712,80711,753
Revenue from the Crown12,79712,79711,743
Revenue from Others101010

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide targeted information and support focused on creating informed demand and engagement by families and communities in education, and improving their ability to support their children's learning.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of families receiving targeted information and support who, after receipt of such support, report that they are more confident and better equipped to support their children's learning and make informed decisions about learning pathways (see Note 1):

  • all
New measureNew measure80%
  • Maori
New measureNew measure80%
  • Pasifika.
New measureNew measure80%

Number of contracted early childhood education child places created to meet the needs of targeted communities as a result of the Targeted Assistance Programme.

948 - 1,1001,000 - 1,100550 - 720

Note 1 - As measured by the percentage of participants who showed a 'positive' or higher rating in initiative evaluation surveys, using a five-point scale where 4 is deemed 'positive'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Investing in Information and Communications Technology2017/18-13202729
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(11)(11)(11)(9)(9)
Accelerating Education for Priority Learners2013/141,0001,0001,0001,0001,000
Connecting Communities2013/14375375375375375

Reasons for Change in Appropriation

The $1.054 million decrease in this appropriation for 2017/18 is mainly due to completion of two work programmes in 2016/17:

  • Pasifika PowerUp Plus ($600,000 decrease), and
  • Value for Money initiatives ($467,000 decrease).

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Education - 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 Ministry of Education, as authorised by section 24(1) of the Public Finance Act 1989.

Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural---
Land43,12043,12050,060
Property, Plant and Equipment915,954915,954948,126
Intangibles35,73935,73929,528
Other---

Total Appropriation

994,813994,8131,027,714

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide strategic assets, including the renewal and replacement of life-expired assets, in support of the delivery of the Ministry of Education's services and responsibilities for schools.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of State school buildings with a property condition of '3' or better, as an indicator of the condition of the school property portfolio (see Note 1).

85%85%85%

Note 1 - The condition of school buildings is rated on a scale of 1 to 5 (1 being the highest condition rating). The scale is based on a ratio of the expected 10-year cost of maintenance relative to estimated replacement value, defined as follows: 1 is a ratio of less than 5%, 2 is 5-10%, 3 is 10-20%, 4 is 20-30%, and 5 is over 30%. This measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Reasons for Change in Appropriation

The $32.901 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • additional spend on school redevelopments due to more projects entering the construction phase ($49 million increase)
  • additional Christchurch Schools Rebuild programme spend with further projects underway and an increased number of large projects commencing construction ($14 million increase)
  • additional spend on new schools ($13 million increase)
  • increase in land acquisitions in line with the number of new schools required over the next few years ($7 million increase)
  • service concession arrangements as a result of three of the four Public Private Partnership Two schools having the bulk of their construction completed in 2016/17, with only Wakatipu School to be completed in 2017/18, and construction starting for the Third Public Private Partnership schools ($31 million decrease), and
  • other changes mainly related to Information Communication Technology, following additional investment under an Education System Digital Strategy for the sector to improve a fragmented system environment and applications, and fitting out of new Christchurch office accommodation partly offset by lower investment in the vehicle fleet as the Ministry moves to leasing ($19 million decrease).

Capital Injections and Movements in Departmental Net Assets

Ministry of Education

Details of Net Asset Schedule2016/17
Estimated Actual
$000
2017/18
Projected
$000
Explanation of Projected Movements in 2017/18
Opening Balance14,833,90215,098,615
Capital Injections337,453447,640Construction of new schools and roll-growth classrooms ($305.490 million), the Christchurch Schools Rebuild Programme ($127.790 million), development of the Education Resourcing System ($6.100 million), funding to repay the financial liability created by the Public Private Partnership contracts ($4.670 million), development of the iED Programme ($1.504 million), development of the Education Council Online Service ($1.156 million) and development of the Early Learning Information System ($930,000).
Capital Withdrawals(103,474)(31,511)Withdrawals are due to decisions to procure new schools under Public Private Partnership contracts rather than through traditional procurement process.
Surplus to be Retained (Deficit Incurred)30,734(564)Net unrealised loss on interest rate swap derivatives with the New Zealand Debt Management Office.
Other Movements--

Closing Balance

15,098,61515,514,180

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Contribution to the Education Council of Aotearoa New Zealand (M26)

Scope of Appropriation

This appropriation is limited to a contribution towards the Education Council of Aotearoa New Zealand carrying out its leadership and other statutory functions for the teaching profession and education.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation13,58613,58614,249

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective professional leadership, investment in teacher professional capability, support and administration of the education profession across the early childhood and schooling sectors and support for activities directed at raising the status of the teaching profession.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of applications for issue and renewal of practising certificates submitted for appraisal by professional leaders that are reviewed under the auditing and moderation process.

New measureNew measure10%

The percentage of new registrations and renewals of practising certificates processed within 20 working days.

New measureNew measure65%

The average length of time between referral to the Disciplinary Tribunal and the decision date of the Disciplinary Tribunal decisions made in the reporting period, in months.

New measureNew measure8 months

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Education Council Online Services - Contingency Draw Down2016/177081,2881,071979979
Education Council of Aotearoa New Zealand: One-off Increase in Crown Funding2016/174,9346,9469,458--
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/175,2203,4097--
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/17354236118--
Secondary Teachers' Collective Agreement 2015-20182015/162,1922,192733--

Reasons for Change in Appropriation

The $663,000 increase in this appropriation for 2017/18 is mainly due to the continued establishment of an Education Workforce Shared Platform that will enable Education Council core business functions to be done online ($580,000 increase).

Provision of Information and Advisory Services (M26)

Scope of Appropriation

This appropriation is limited to the provision of information and advisory services related to education policies and programmes that are the responsibility of Careers New Zealand or the New Zealand Qualifications Authority, support by those two agencies to Ministers to discharge their portfolio responsibilities (other than policy decision-making), and services and support provided by other education sector bodies to raise student achievement and improve governance and capacity of providers.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation24,33524,33523,175

Comparators for Restructured Appropriation

2016/172017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
2016/17 Structure24,33524,335-
Transfer of component Independent Advice on Government Priority Areas to category of the Oversight of the Education System MCA(500)(500)-
Total23,83523,83523,175

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve informed learning and decision-making through the provision of information and advisory services to individuals, education providers and organisations.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Careers New Zealand

Number of New Zealand-based web visits to the careers.govt.nz website.

4.4 million4.4 million4.4 million

Percentage of users who agree that the content on the careers.govt.nz website is relevant to their needs.

80%80%80%

Percentage of employers or employers organisations participating in a careers initiative that agree the initiative has helped improve their connection with education organisations.

80%80%80%

Percentage of education organisations accessing career development resources and services that agree this has helped improve their careers services.

Revised measure80%80%

New Zealand Qualifications Authority

The proportion of survey respondents who agree/strongly agree that information they received from the New Zealand Qualifications Authority met their needs (see Note 1).

New measureNew measure75%

Note 1 - Survey respondents are stakeholders including employers, education providers, students and families. Information received covers the full range of advice, data, communication and instruction that the New Zealand Qualifications Authority provides to its customers to support their relationship, business and interaction with the New Zealand Qualifications Authority.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Careers New Zealand15,56315,56315,132Ongoing
New Zealand Qualifications Authority3,5173,5173,448Ongoing

Non-Government Organisations

Special Education Peak Bodies796796796Ongoing
Consultants500500-
Other Providers3,9593,9593,799Ongoing

Total

24,335

24,335

23,175

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Kura Kaupapa Maori Management Support2017/18-70532532532
Learning Support - Meeting Increasing Costs2017/18-20406080
Migrant Futures: Small-Scale Settlement and Integration Initiatives2015/16381----
Partnership School | Kura Hourua: Monitoring and Evaluation2015/16250----
Supporting Better Public Services and the Business Growth Agenda - Funding for Online Skills Self-assessment Tool2013/1410050---
Savings from Crown Line-by-Line Review2013/14(681)(681)(681)(681)(681)

Reasons for Change in Appropriation

The $1.160 million decrease in this appropriation for 2017/18 is mainly due to:

  • transfer to Oversight of the Education System MCA of provision for Independent Advice on Government Priority Areas from 2017/18 ($500,000 decrease)
  • provision for one-to-one career mentoring services to support priority group migrants ceasing from 2016/17 ($381,000 decrease), and
  • provision to support sponsors approved through a third round of Partnership Schools applications in 2015/16 and 2016/17 only ($250,000 decrease).

Qualifications Support Structures (M26)

Scope of Appropriation

This appropriation is limited to the NewZealand Qualifications Authority overseeing the setting of standards and New Zealand qualifications. It also includes standard-setting and qualifications development responsibility, recognition and review of qualifications, records management processes to support the New Zealand Qualifications Framework, and participation in the promotion of the NewZealand qualifications system to key education and immigration partner countries.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation6,0496,0496,329

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure that New Zealand qualifications are valued as credible, robust and they meet the needs of learners and employers.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

New Zealand Qualifications Authority implements relevant free-trade agreement commitments and provides support for free-trade negotiation and implementation to the satisfaction of the Ministry of Foreign Affairs and Trade (see Note 1).

333

The percentage of New Zealand Qualifications Authority-owned standards maintained by their planned review date.

95%95%95%

The percentage of results for assessment standards reported by accredited tertiary education organisations put on to learners' transcripts within two working days.

98%98%98%

Note 1 - Scale is 1 to 4, where 1 is 'Strongly disagree', 2 is 'Disagree', 3 is 'Agree', and 4 is 'Strongly agree'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Qualifications Authority in its annual report.

Quality Assurance (M26)

Scope of Appropriation

This appropriation is limited to the provision by the New Zealand Qualifications Authority of quality assurance services to support the New Zealand qualifications system that include ongoing development and management of quality assurance processes, monitoring and managing providers at risk and the ongoing refinement and maintenance of the quality assurance framework.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation5,2045,2045,094

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve high levels of trust and confidence in non-university tertiary education sector providers.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The number of external evaluations and reviews undertaken of tertiary education organisations (non-university).

150120120

The number of investigations that result in a significant New Zealand Qualifications Authority intervention (see Note 1).

New measureNew measure25 - 40

The number of investigations that result in corrective action that satisfactorily resolves the identified non-compliance or quality issues identified (see Note 2).

New measureNew measure30 - 45

Note 1 - A significant New Zealand Qualifications Authority intervention occurs in cases where compliance or quality issues have ultimately led (directly or indirectly) to the loss of a permission previously granted by the New Zealand Qualifications Authority, including:

  • cancellation of registration
  • withdrawal of programme approval or accreditation
  • withdrawal of training scheme approval, or
  • withdrawal of consent to assess against standards.

This category also includes cases where the New Zealand Qualifications Authority has had to intervene in relation to the award of qualifications or credits that were found to have been inappropriately awarded. The volume of this measure is demand-driven.

Note 2 - Investigations that result in a corrective action are cases where it was appropriate to allow the provider the opportunity to take corrective action in relation to identified compliance or quality issues, and where all required corrective action has been satisfactorily completed. The volume of this measure is demand-driven.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Qualifications Authority in its annual report.

School Managed Network Funding (M26)

Scope of Appropriation

This appropriation is limited to supporting schools' purchase of a core package of managed network services from the provider of the managed network service.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation31,15031,15028,750

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve equitable access to a secure managed network for schools.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of eligible schools which are connected to the Network for Learning for broadband services to support a modern learning environment (see Note 1).

New measureNew measure2,350

Percentage of schools which voluntarily disconnect from the Network for Learning.

New measureNew measureLess than 2%

Note 1 - Eligible schools are defined as State schools, integrated schools and partnership schools.

End of Year Performance Reporting

Performance information for this appropriation will be reported by The Network for Learning Limited in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Network for Learning2013/1428,75028,75028,75028,75028,750

Reasons for Change in Appropriation

The $2.400 million decrease in this appropriation for 2017/18 is mainly due to a one-off transfer from 2015/16 to cover the delay in the Managed School Network Upgrade project rollout scheduled to be completed in 2016/17.

School Transport (M26)

Scope of Appropriation

Purchase of services to transport eligible students to and from State and integrated schools. Also included are payments to schools that manage their own transport services and payments to parents/caregivers to compensate for the costs of taking children to school where other transport services are unsuitable or unavailable.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation186,895183,895195,450

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Daily Services96,31494,314100,723
Technology Services4,2784,2784,474
Directly Resourced Schools37,01737,01738,711
Special Education Needs39,10038,10040,890
Conveyance Allowances3,0513,0513,191
Other7,1357,1357,461
Total186,895183,895195,450

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve maximum attendance at schools by ensuring transport options are available.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of journeys per annum completed without incident, in the provision of safe transport options to students who face transportation barriers.

99.9%99.9%99.9%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Directly Resourced Schools37,01737,01738,711Memorandum of Agreement which mirrors the agreements for the School Transport Daily Service Operators.
Kura Kaupapa Maori7,1357,1357,461On going

Non-Government Organisations

School Transport Daily Service Operators (approximately 90 providers, of which 15 to 20 receive more than $1 million per annum)96,31494,314100,723Most contracts expire at the end of December 2018, with a single right of renewal of 3 years for each.
School Transport Technology Service Operators (approximately 70 providers)4,2784,2784,474Most contracts expire at the end of December 2017.
Special Education School Transport Operators (approximately 60 providers)39,10038,10040,890Most contracts expire at the end of December 2017.
Parents and Caregivers3,0513,0513,191On going

Total

186,895

183,895

195,450

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Savings - School Transport Operational Efficiencies2015/16(5,000)(5,000)(10,000)(10,000)(10,000)

Reasons for Change in Appropriation

The $8.555 million increase in this appropriation for 2017/18 is due to a combination of increases in distances travelled, provision for new routes and movements in contract costs.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionStudents who are aged five and over and enrolled in a State or State-integrated school are eligible for school transport assistance where they:
  • live more than a set distance from the nearest appropriate school (not necessarily the school they attend), or
  • attend a Maori-medium school, and
  • there is no suitable public transport available.
An eligible student's entitlement can be a conveyance allowance, place on a school bus or a combination of both.

Secondary School Assessments (M26)

Scope of Appropriation

This appropriation is limited to the NewZealand Qualifications Authority overseeing assessment for national secondary school qualifications, including the National Certificate of Educational Achievement and Scholarship examinations, and the moderation of internal and external school assessments.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation26,81026,81026,480

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve trust and confidence in robust and equitable secondary school level assessment.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of marker judgements unaltered following Review or Reconsideration of External Assessment Results process.

99%99%99%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Qualifications Authority in its annual report.

Secondary-Tertiary Interface (M26)

Scope of Appropriation

This appropriation is limited to delivery of programmes of learning at the secondary-tertiary interface, including programmes offered in partnership by schools and tertiary education organisations.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation74,51274,51274,512

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
State Schools - Trades Academies56,28756,28756,287
Tertiary Education Commission18,22518,22518,225
Total74,51274,51274,512

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in school students' continuing education to a tertiary level.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of secondary-tertiary programme places purchased per calendar year.

6,1906,190 in 20166,190 in 2017

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

State Schools - Trades Academies56,28756,28756,287Ongoing
Institutes of Technology and Polytechnics12,42112,42112,421Ongoing

Non-Government Organisations

Other5,8045,8045,804Ongoing

Total

74,512

74,512

74,512

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Additional Trades Academy Places2015/167,3267,3267,3267,3267,326
Youth Guarantee Trades Academies (Additional Places)2015/162,4682,4682,4682,4682,468
Re-Allocation of Youth Guarantee Fees-Free Places to Fund Additional Academy Places2014/159,0939,0939,0939,0939,093


Supporting Parenting (M26)

Scope of Appropriation

This appropriation is limited to purchasing delivery of specific programmes and providing advice and support that enhances the role of parents/caregivers in the development of their children and promotes the value of quality education experiences.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation9,3299,3299,329

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved support by parents, families and whanau for their children's education.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of children enrolled in early childhood education as a result of the Engaging Priority Families programme.

960 - 1,200960 - 1,200870 - 1,000

Percentage of families from priority areas that are engaged in identifying their information and support needs, and co-designing targeted information and support specific to their needs (see Note 1).

New measureNew measure75%

Note 1 - The selection of priority areas is informed by data (eg, poor education outcomes/low engagement with education institutions), evidence of apparent distinct needs (eg, among Maori, Pasifika and other ethnic groups), and evidence of disadvantage (eg, geographic isolation or limited internet access).

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

Iwi and Community Groups9,3299,3299,329Multiple contracts with different expiry dates

Total

9,329

9,329

9,329

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Savings - Blind and Low Vision Support Changes2013/14(38)(38)(38)(38)(38)

Teacher-Led Innovation Fund (M26)

Scope of Appropriation and Expenses

Type, Title, Scope and Period of AppropriationsAppropriations, Adjustments and Use$000

Teacher-Led Innovation Fund (M26)

This appropriation is limited to supporting teacher-led innovation and classroom-based research of innovative teaching practices.

Commences: 01 July 2015

Expires: 30 June 2020
Original Appropriation10,000
Adjustments to 2015/168,000
Adjustments for 2016/17(85)
Adjusted Appropriation17,915
Actual to 2015/16 Year End1,915
Estimated Actual for 2016/172,890
Estimated Actual for 2017/184,000
Estimated Appropriation Remaining9,110

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve innovative practice in order to improve learning outcomes, particularly for Maori students, Pasifika students, those with additional learning needs and those from low socio-economic backgrounds.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of completed research projects which resulted in the spread of new teaching practices since initiation of the fund (see Note 1).

95%95%95%

Note 1 - The Teacher-led Innovation Fund is set for a five year period with projects running over one, two and three year periods.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

State and Integrated Schools2,8902,8904,00030 June 2020

Total

2,890

2,890

4,000

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Investing in Educational Success: Implementation and Operating Contingency Update2018/19--4,0004,000-
Investing in Educational Success: Design and Implementation2015/164,0004,000---

3.2 - Non-Departmental Benefits or Related Expenses

Boarding Allowances (M26)

Scope of Appropriation

This appropriation is limited to an annual allowance to subsidise boarding fees, travel costs and additional tutoring, counselling and related costs for students who face significant challenges accessing appropriate education that will assist them to achieve NCEA level 2 or equivalent.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation11,31911,31911,319

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve increased educational achievement for children and young people who are facing significant barriers to accessing education.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for annual allowances paid under the Education Act 1989 for selected students studying away from home.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionStudents are eligible where living away from home is deemed to provide a greater chance of achieving National Certificate of Education Achievement level 2. Students will be awarded an allowance after being assessed by a panel including external parties or agencies. The key assessment areas are:
Achievement; Participation; Behaviour; Relationships; Access; Environment; Personal factors.
Assistance may also be available to contribute to the cost of travelling at the beginning and end of term between home and the place of board.

Home Schooling Allowances (M26)

Scope of Appropriation

Provides an allowance payable to parents/caregivers of children in full-time correspondence programmes for primary and secondary education and to parents/caregivers of children receiving their primary and secondary education at home (where a certificate of exemption from enrolment has been approved under section 21 of the Education Act 1989).

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation5,1285,1285,128

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for students engaged in education outside of the school system.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of a supervision allowance for children who are home schooled under the Education Act 1989.

Conditions on Use of Appropriation

ReferenceConditions
Education Act 1989Supervision allowance paid to parents of students exempted under section 21 of the Education Act 1989 from being enrolled at a registered school, as required under section 20.
Exemption is subject to satisfaction that:
  • the student will be taught at least as regularly and as well as in a registered school, and
  • in the case of a person who would otherwise be likely to need special education, the student will be taught at least as regularly and as well as in a special class or clinic or by a special service.

National Study Awards (M26)

Scope of Appropriation

Provision for the costs of study awards, sabbaticals and fellowships for teachers, including replacement of the teacher while on study leave. Awards include those linked to teachers' collective agreements and approved prestigious awards.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation18,99718,99719,543

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve better education by increasing the capability of teachers through targeted study assistance.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for teacher study awards, including sabbaticals and prestigious awards, under the Education Act 1989 and teachers' collective agreements.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/17256444447447447
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/17107224268268268
Secondary Teachers' Collective Agreement 2015-20182015/16269510534534534
Savings - Reductions to Funding for TeachNZ National Study Awards2015/16(773)(773)(773)(773)(773)
Savings - Top Teacher Awards Reprioritisation2014/15(1,000)(1,000)(1,000)(1,000)(1,000)
Settlement of the Area School Principals' Collective Agreement 2013-20162014/158888888888
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/14250250250250250
Savings from Crown Line-by-Line Review2013/14(5,222)(5,222)(5,222)(5,222)(5,222)
2013-2015 Secondary Teachers' Collective Agreement Settlement2013/14138138138138138

Puawaitanga Scholarships (M26)

Scope of Appropriation

This appropriation is limited to providing an annual scholarship for high-potential priority secondary students, who demonstrate leadership potential, to attend one of the selected Maori boarding schools.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,1521,1521,152

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve greater educational opportunities for Maori students with leadership potential.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for benefits or related expense is less than $5 million.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionThe scholarships would be offered to young people who demonstrate leadership potential, based on the schools' criteria, which may include:
  • leadership skills and potential
  • academic achievement and potential
  • cultural strengths
  • sporting skills, and
  • reports or recommendations from contributing schools.
Scholarships cover boarding fees and an allowance for other costs.
Each boarding school may only have 15 students in receipt of the Puawaitanga Scholarship enrolled at any one time.
The Ministry will provide schools with guidelines to develop their selection criteria. The Ministry will also monitor compliance to these criteria and of the performance of the schools and the recipients of the scholarship.

Scholarships for Students to Attend Private Schools (M26)

Scope of Appropriation

Assistance to students from low-income families to attend private secondary schools.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation4,1264,1264,126

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of opportunities for private education to those who would otherwise not have access.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for benefits or related expense is less than $5 million.

Teacher Trainee Scholarships (M26)

Scope of Appropriation

Scholarships and allowances for students undertaking teacher training education, and loan support payments to teachers.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,4421,4421,432

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a high-quality workforce by supporting prospective teachers through their training.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for benefits or related expense is less than $5 million.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Funding for Employment-Based Initial Teacher Education2017/18-225225--
Savings - Reductions to Funding for Teacher Trainee Scholarships2015/16(1,521)(1,521)(1,521)(1,521)(1,521)

United World Scholarships (M26)

Scope of Appropriation

Scholarships for attendance at United World Colleges.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation505050

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of alternative learning environments.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for benefits or related expense is less than $5 million.

3.4 - Non-Departmental Other Expenses

Early Childhood Education (M26)

Scope of Appropriation

Subsidising early childhood education services for children under six years of age from licensed and chartered early childhood education services (including centres and chartered home-based care networks) and from licence-exempt and certificated centres. Also included are several targeted funds.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,814,2571,814,2571,845,947

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
20 Hours Early Childhood Education984,814984,814991,050
Licensed Early Childhood Education (Two and Over)398,117398,117402,414
Licensed Early Childhood Education (Under Two)362,313362,313376,506
Targeted Funding Pool65,59765,59772,789
Licence-exempt Early Childhood Education3,4163,4163,188
Total1,814,2571,814,2571,845,947

Note - Targeted funding includes: targeted early childhood education (ECE) participation initiatives; equity funding; Annual Top-up for Isolated Services for licensed rural services and correspondence ECE.

Equity funding for the ECE sector provides additional support and it is for learners:

  • from low socio-economic communities
  • with special education needs and from non-English-speaking backgrounds
  • with languages and cultures other than English, and
  • who live in isolation.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to early childhood education for all young children.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of early childhood education centres/services providing services to the standard required to meet regulatory requirements.

98%98%98%

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity
Subsidised hours provided by licensed and chartered early childhood education services:
  • kindergartens
25 million - 28 million26 million - 27 million25 million - 29 million
  • playcentres
2.5 million - 3 million2.6 million - 2.7 million2.4 million - 2.8 million
  • education and care centres
137 million - 151 million144 million - 145 million144 million - 160 million
  • home-based
26 million - 29 million24 million - 25 million23 million - 29 million
  • kohanga reo
10 million - 13 million10 million - 11 million9 million - 13 million
  • hours of early childhood education provided by certificated playgroups.
1.8 million - 2 million1.5 million - 2 million1.5 million - 2 million

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

The Correspondence School3,4163,4163,188Ongoing

Non-Government Organisations

Education and Care Centres1,377,4761,377,4761,407,165Ongoing
Kindergarten240,154240,154240,383Ongoing
Playcentre12,92612,92612,926Ongoing
Home-based106,503106,503106,503Ongoing
Te Kohanga Reo63,53863,53865,538Ongoing
Community Action Groups2,0002,0002,000Ongoing
Playgroups3,4163,4163,416Ongoing
Non-Government Organisations, Iwi and Community Groups3,4113,4113,411Ongoing
Private Training Establishments1,4171,4171,417Ongoing

Total

1,814,257

1,814,257

1,845,947

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Early Childhood Education - Targeted Funding for Disadvantage2017/18-5,00010,00010,00010,000
Operational Grant Funding Increase for Schools2017/18-6121212
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/174,1466,8597,0737,0737,073
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/1746999
Secondary Teachers' Collective Agreement 2015-20182015/162948515151
Cost Adjustment for Schools' Operational Grant Funding2015/1699999
Savings - Reprioritisation of Funding from Early Childhood Education Outcome-Based Purchase Agreements2015/16(2,640)(4,000)(4,000)(4,000)(4,000)
Kindergarten Teachers, Head Teachers and Senior Teachers' Collective Agreement 2013-20162015/161,3001,3001,3001,3001,300
Cost Adjustment to Operational Grants for Schools2014/152727272727
Early Childhood Education Cost Adjustment2013/1413,56413,82113,82113,82113,821
Savings - Deferring Early Childhood Education Outcomes-Based Purchase Agreements2013/14(1,360)----
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/143,6763,6763,6763,6763,676
Early Childhood Education Initiatives2013/1426,49026,49026,49026,49026,490
Savings from Crown Line-by-Line Review2013/14(3,900)(3,900)(3,900)(3,900)(3,900)

Reasons for Change in Appropriation

The $31.690 million increase in this appropriation for 2017/18 is mainly due to:

  • volume growth driven by increased migration, a higher-than-expected birth rate, and success of initiatives to improve awareness and engage more families to participate in early childhood education services ($23.939 million increase)
  • additional funding targeted to early childhood education (ECE) services and nga kohanga reo with children at greater risk of educational under-achievement ($5 million increase), and
  • settlement of collective employment agreements ($2.735 million increase).

Conditions on Use of Appropriation

ReferenceConditions
Early Childhood Education Funding Handbook
  • for teacher-led centre-based services, the proportion of hours worked by teachers who are registered and early childhood education qualified
  • for teacher-led home-based and parent-led services, whether they meet the quality funding criteria set out in the Early Childhood Education Funding Handbook
  • for teacher-led services, kohanga reo and playcentres, whether three- and four-year-olds are receiving 20 Hours Early Childhood Education
  • the age of children (under two, two and over), and
  • hours of provision (all-day or sessional).
Targeted Funding Pools:
  • conditions for Equity Funding and Annual Top-up for Isolated Services are set out in the Early Childhood Education Funding Handbook, and
  • conditions for teacher supply initiatives and Establishment Funding are promulgated by the Ministry of Education.
Playgroup Funding Handbook
  • sets standards and reporting requirements for use of Playgroup funding.

Integrated Schools Property (M26)

Scope of Appropriation

Provision for modernisation of existing property at integrated schools as part of a funding regime negotiated with the proprietors of integrated schools. Funding to assist in the expansion of the network is also included.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation67,89367,89365,055

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Policy One Funding51,96751,96752,590
Other Funding15,92615,92612,465
Total67,89367,89365,055

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a school property infrastructure that ensures a fit-for-purpose learning environment.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

All integrated school proprietors confirm that funding received under Policy One has been used to maintain their school properties to a consistent standard as for State schools (Policy One, see Conditions on Use of Appropriation).

Revised measureAllAll

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity
New teaching spaces provided to integrated schools to alleviate pressures from increasing student rolls in the network are within allocated budget (Policy Two, see Conditions on Use of Appropriation).5 - 153Up to 7 grants

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

Proprietors of Integrated Schools67,89367,89365,055Ongoing

Total

67,893

67,893

65,055

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Integrated School Property Funding2017/18-10,00010,000--
Christchurch Integrated Schools Building Strengthening2016/176,000----
Technology in Schools2015/16678----
New Schools and Roll-Growth Classrooms2015/164,072----

Reasons for Change in Appropriation

The $2.838 million decrease in this appropriation for 2017/18 is mainly due to a combination of:

  • full and final recognition for proprietors of State-integrated schools on the impact of property-related costs of past education policy changes ($10 million increase)
  • contributions in 2016/17 to the cost of new schools and classrooms, particularly Takanini Primary ($6.510 million decrease), and
  • provision in 2016/17 only to assist State-integrated schools in greater Christchurch to seismic strengthen their buildings ($6 million decrease).

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionPolicy One - Property grants to proprietors of integrated schools are determined by formula, taking into account a per-student rate (based on depreciation on State school sector buildings) and numbers of students in each school.
Policy Two - Discretionary property grant for expanding existing schools and establishment of new schools where the investment will reduce pressure for further expenditure in the State school network. Funding is provided under a Memorandum of Agreement. A construction completion certificate must be provided to the Ministry of Education.

Interest Subsidy for Schools (M26)

Scope of Appropriation

Provides a subsidy on interest payments for borrowing by private and State integrated schools for approved property-related projects. Administration costs are also included.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation120120120

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve financial support for schools that supports fit-for-purpose learning environments.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for non-departmental other expenses is less than $5 million.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

KPMG110110110Annual
Loan Providers101010Ongoing

Total

120

120

120

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Savings in Interest Rate Subsidy for Schools2014/15(117)(117)(117)(117)(117)

Conditions on Use of Appropriation

ReferenceConditions
Loan agreementsSubsidy payments are based on the difference between the interest rate in the agreement and the market interest rate.

Primary Education (M26)

Scope of Appropriation

This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 0 to 8.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation3,045,6893,045,6893,210,181

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Salaries Funding2,194,8732,194,8732,275,996
Operations and Other Funding850,816850,816934,185
Total3,045,6893,045,6893,210,181

What is Intended to be Achieved with this Appropriation

This appropriation is intended to deliver relevant curriculum for all Year 0 to 8 students in all schools, through the development of tailored programmes and resources to meet the needs of all students.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Year 1 - 8 students in English-medium achieving at or above the National Standard in reading:

  • all students
78.6%78.0%Improve on previous year's result
  • Maori students
New measure68.8%Improve on previous year's result
  • Pasifika students.
New measure66.0%Improve on previous year's result

Percentage of Year 1 - 8 students in English-medium achieving at or above the National Standard in maths:

  • all students
76.7%75.5%Improve on previous year's result
  • Maori students
New measure65.4%Improve on previous year's result
  • Pasifika students.
New measure63.3%Improve on previous year's result

Percentage of Year 1 - 8 students in English-medium achieving at or above the National Standard in writing:

  • all students
71.8%71.4%Improve on previous year's result
  • Maori students
New measure61.6%Improve on previous year's result
  • Pasifika students.
New measure60.6%Improve on previous year's result

Percentage of Year 1 - 8 students in Maori-medium at Manawa Ora and Manawa Toa in Nga Whanaketanga Rumaki Maori:

  • korero
New measure63.0%Improve on previous year's result
  • panui
New measure68.5%Improve on previous year's result
  • pangarau
New measure60.9%Improve on previous year's result
  • tuhituhi.
New measure59.8%Improve on previous year's result

Note - 2016/17 Estimated Actual figures are based on the latest results for the calendar year 2015.

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity
Number of Year 1 - 8 students in English-medium receiving the National Curriculum (see Note 1).Revised indicator487,432510,000
Number of Year 1 - 8 students in Maori-medium receiving the Nga Whanaketanga Rumaki Maori (see Note 1).Revised indicator15,16015,160
Total number of Full-time Teacher Equivalents teaching Years 0 - 8 (see Note 2).25,60026,10026,300

Note 1 - This is calculated from the July School Roll returns.

Note 2 - This number includes English-medium and Maori-medium, but excludes Partnership Schools | Kura Hourua, Te Kura Correspondence School, private schools and composite schools or schools that pro-rata their roll. The calculation is based on a survey conducted in the first pay run of April.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

State Schools (1,685) and State Integrated Schools (232)3,015,3523,015,3523,183,273Ongoing
The Correspondence School3,3163,3163,339Ongoing

Non-Government Organisations

Private Schools (32)14,30114,30114,301Ongoing
Partnership Schools (3)6,0726,0722,620Ongoing
Statutory Managers4,6044,6044,604Ongoing
Private Organisations2,0442,0442,044Ongoing

Total

3,045,689

3,045,689

3,210,181

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme2018/19--4427821,123
Third New Zealand Schools Public Private Partnership2018/19--(345)(748)(807)
Operational Grant Funding Increase for Schools2017/18-4,6529,3789,3819,426
Education Recovery and Response: Kaikoura Earthquakes2016/17340280106--
Establishing Round Four Partnership Schools | Kura Houra2016/17360235496593612
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/1751,52488,21183,86983,86983,869
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/176371,1841,6201,6201,620
Investing in Educational Success: Implementation and Operating Contingency Update2016/17(22,666)44,22449,01049,99248,716
Operational Grant Increase to Schools to Support Children Most at Risk of Not Achieving2016/174,2048,4238,3938,3528,352
New Zealand Schools Public Private Partnership Project Two2016/17(297)(764)(950)(1,010)(1,054)
Selection of Partnership Schools | Kura Hourua to Open in 20172015/16101227275316352
Secondary Teachers' Collective Agreement 2015-20182015/165,2178,7579,4159,4159,415
Response to the Syrian Refugee Crisis: Implementation2015/16101101---
Cost Adjustment for Schools' Operational Grant Funding2015/166,4966,5356,5566,5566,556
Savings - Reductions to Network Contingency2015/16(1,560)(1,560)(1,560)(1,560)(1,560)
Investing in Educational Success: Design and Implementation2014/1547,97547,97547,97547,97547,975
Selection of Partnership Schools/Kura Hourua to Open in 20152014/151,9011,9651,9041,9041,904
Cost Adjustment to Operational Grants for Schools2014/1512,70612,76512,76512,76512,765
Partnership Schools Further Funding2014/15182182182182182
Expansion of Reading Together2014/15681681681681681
Savings - Relieving Teachers2014/15(1,000)(1,000)(1,000)(1,000)(1,000)
Savings - School Accommodation Business Case (State School Property Maintenance Grant)2014/15(1,145)(1,145)(1,145)(1,145)(1,145)
Savings - Reduction in School Classification, Integration and Closure Contingency Funding2013/14(2,650)(2,650)(2,650)(2,650)(2,650)
Expand the Accelerated Learning in Maths (ALiM) programme2013/141,7301,7301,7301,7301,730
Settlement of the Area School Principals' Collective Agreement 2013-20162013/143434343434
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/1458,24458,24458,24458,24458,244
Partnership Schools/Kura Hourua: Selection and Ongoing Provision2013/14775775775775775
Price Level Adjustment to Schools' Operations Grant2013/1411,80611,80611,80611,80611,806
Canterbury Earthquake - Support Package for Christchurch Schooling Workforce2013/14654654654654654

Reasons for Change in Appropriation

The $164.492 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • implementation of Budget 2014 initiative 'Investing in Educational Success' to shift and lift student achievement ($66.890 million increase)
  • additional teachers' salary costs mainly from increased rolls, changes in the level of effective average rates, and settlement of collective employment agreements ($54.223 million increase)
  • difference in estimated school term start dates between the two financial years (23.850 million increase), and
  • increase in school operations grant allocations ($19.804 million increase).

Remission of Fees (M26)

Scope of Appropriation

Payment to the New Zealand Qualifications Authority for student examination fees remitted in cases of hardship.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation1,2881,2881,288

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide financial assistance with the National Certificate of Educational Achievement and New Zealand Scholarship entry fees for eligible New Zealand candidates to ensure New Zealand qualifications accessibility for all New Zealand learners.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Financial assistance is granted to all qualifying students who apply.

100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Qualifications Authority in its annual report.

Schooling Improvement (M26)

Scope of Appropriation

School support and schooling improvement projects to improve the capability of schools and school clusters and their responsiveness to the needs of their communities. These include iwi-strengthening education projects.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation5,2535,2535,853

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved education outcomes through supporting schools in their responsiveness to the needs of their communities, including iwi-strengthening projects.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Maori learners that are supported through our shared investments with iwi that make measurable achievement gains (see Note 1).

New measureNew measure75%

Note 1 - These learners are identified in the contracts with iwi and are monitored towards attainment of National Standards and/or National Certificate of Educational Achievement.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

National Maori Organisations and Iwi Authorities3,4383,4383,348Multiple contracts with different expiry dates
Statutory Managers1,8151,8152,505Multiple contracts with different expiry dates

Total

5,253

5,253

5,853

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Supporting Schools At-risk - Additional Funding2017/18-600600--

Secondary Education (M26)

Scope of Appropriation

This appropriation is limited to providing roll-based operations funding to schools, teacher and management salaries, support costs and supplementary funding programmes to enable the delivery of the National Curriculum to all students for Years 9 to 13.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation2,163,5692,163,5692,251,377

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Salaries Funding1,530,1561,530,1561,569,718
Operations and Other Funding633,413633,413681,659
Total2,163,5692,163,5692,251,377

What is Intended to be Achieved with this Appropriation

This appropriation is intended to deliver relevant curriculum for all Year 9 to 13 students in all schools, through the development of tailored programmes and resources to meet the needs of all students.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of 18-year-olds with NCEA Level 2 or equivalent:

  • all
83.7%85.2%Improve on previous year's result
  • Maori
74.0%74.7%Improve on previous year's result
  • Pasifika.
81.0%80.3%Improve on previous year's result

Percentage of school leavers with NCEA Level 2 and a Vocational Pathways Award.

New measureNew measure30%

Percentage of school leavers progressing directly from NCEA Level 2 and 3 or equivalent to Level 4 or above tertiary study.

New measureNew measure55%

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity
Number of students receiving Year 9 - 13 curriculum (see Note 1).272,000275,000275,000
Total number of Full-time Teacher Equivalents teaching Years 9 - 13 (see Note 2).21,00021,70021,700
Number of 18-year-olds with NCEA Level 2 or equivalent:
  • all students
New indicatorNew indicator53,200
  • Maori students
New indicatorNew indicator5,800
  • Pasifika students.
New indicatorNew indicator10,700

Note 1 - This is calculated from the March School Roll returns.

Note 2 - This number includes English-medium and Maori-medium, but excludes Partnership Schools | Kura Hourua, Te Kura Correspondence School and private schools. The calculation is based on a survey conducted in the first pay run of April.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

State Schools (393) and State Integrated Schools (98)2,081,5722081,5722,170,162Ongoing
The Correspondence School38,10638,10638,032Ongoing

Non-Government Organisations

Private Schools (56)27,22627,22627,226Ongoing
Partnership Schools (7)11,82711,82711,119Ongoing
Statutory Managers1,9891,9891,989Ongoing
National Maori Organisations and Iwi Authorities1,1981,1981,198Ongoing
Private Organisations and Trusts1,6511,6511,651Ongoing

Total

2,163,569

2,163,569

2,251,377

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme2018/19--8701,3111,752
Operational Grant Funding Increase for Schools2017/18-3,3226,6586,6766,671
Funding for Employment-Based Initial Teacher Education2017/18-4941,6881,896703
Education Recovery and Response: Kaikoura Earthquakes2016/1717014054--
Establishing Round Four Partnership Schools | Kura Houra2016/17(1,460)535(496)(539)(612)
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/176481,2581,5921,5921,592
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/175,3549,93913,61913,61913,619
Investing in Educational Success: Implementation and Operating Contingency Update2016/17(14,838)23,98726,76527,33426,635
Operational Grant Increase to Schools to Support Children Most at Risk of Not Achieving2016/171,9213,8473,8343,8153,815
Additional Trades Academy Places2016/17(1,358)(2,716)(2,716)(2,716)(2,716)
Selection of Partnership Schools | Kura Hourua to Open in 20172015/161,0232,3342,9083,2373,320
Secondary Teachers' Collective Agreement 2015-20182015/1643,82473,55779,08479,08479,084
Response to the Syrian Refugee Crisis: Implementation2015/16429429---
Cost Adjustment for Schools' Operational Grant Funding2015/164,7584,7444,7154,7154,715
Savings - Reductions to Network Contingency2015/16(1,140)(1,140)(1,140)(1,140)(1,140)
Savings - Trades Academies2015/16(2,468)(2,468)(2,468)(2,468)(2,468)
Re-Allocation of Youth Guarantee Fees-Free Places to Fund Additional Trades Academy Places2014/15(3,043)(3,043)(3,043)(3,043)(3,043)
Investing in Educational Success: Design and Implementation2014/1529,52929,52929,52929,52929,529
Selection of Partnership Schools/Kura Hourua to Open in 20152014/153,1023,1883,0913,0913,091
Cost Adjustment to Operational Grants for Schools2014/159,3049,2779,2779,2779,277
Partnership Schools Further Funding2014/151,4691,4691,4691,4691,469
Te Aho o Te Kura Pounamu Partnership Pilot2014/15648689---
Savings - Reduction in School Classification, Integration and Closure Contingency Funding2013/14(1,600)(1,600)(1,600)(1,600)(1,600)
Settlement of the Area School Principals' Collective Agreement 2013-20162013/14303303303303303
Accelerating Education for Priority Learners2013/14400400400400400
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/145,0845,0845,0845,0845,084
Partnership Schools/Kura Hourua: Selection and Ongoing Provision2013/143,5933,5933,5933,5933,593
National Mentoring Programme2013/141,7991,7991,5991,5991,599
Price Level Adjustment to Schools' Operations Grant2013/148,6318,6318,6318,6318,631
Canterbury Earthquake - Support Packages for Christchurch Schooling Workforce2013/14436436436436436
Maintaining Existing Funding Formula for Teacher: Student Staffing Ratios in Schools2013/143,6043,6043,6043,6043,604
Providing More Consistent Curriculum Staffing Ratios2013/14(3,604)(3,604)(3,604)(3,604)(3,604)

Reasons for Change in Appropriation

The $87.808 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • implementation of Budget 2014 initiative 'Investing in Educational Success' to shift and lift student achievement ($38.825 million increase)
  • changes to teachers' salary costs mainly from decreased rolls, changes in the level of effective average rates, and settlement of collective employment agreements ($22.010 million increase)
  • difference in estimated school term start dates between the two financial years ($15.523 million increase), and
  • increase in school operations grant allocations ($11.032 million increase).

Support for Early Childhood Education Providers (M26)

Scope of Appropriation

This appropriation is limited to assisting early childhood education services and other bodies corporate in the provision of child places for early childhood education. Priority will be given to providers in communities that have low levels of participation in early childhood education, to increase the number of child places and therefore availability of early childhood education. The criteria and selection process for each type of assistance are published by the Ministry of Education.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation11,22611,22615,526

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve increased participation in early childhood education by creating more licensed child places through grants in the early childhood education sector.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Cost per child place created through the Targeted Assistance Participation programme.

$12,000 - $16,000$12,000 - $16,000$12,000 - $16,000

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

Early Childhood Centres7,3767,37611,676Multiple contracts with different expiry dates
Kindergartens3,8503,8503,850Multiple contracts with different expiry dates

Total

11,226

11,226

15,526

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Savings - Targeted Assistance for Participation2013/14(4,300)----

Reasons for Change in Appropriation

The $4.300 million increase in this appropriation for 2017/18 is due to savings from the Targeted Assistance Participation programme made in Budget 2014 being approved until 2016/17 only, with the baseline being returned to its original level from 2017/18.

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionFull-funding stream - grants to create early childhood education (ECE) places to make an immediate, high-impact difference in areas of the very highest need. The locations are determined by the Ministry of Education and include areas with the highest numbers of children missing out on ECE.
Partial-funding stream - grants to provide incentives or partial contributions towards the total cost of creating ECE places in low socio-economic status areas. The locations are determined by the Ministry of Education and include areas with many children missing out on ECE. Assistance under this stream shall be preferred and may cover a wide range of activities.
Low-cost, high-value stream - grants to provide assistance by capitalising on low-cost but high-value community-driven proposals to create additional ECE places, with a maximum grant limit of $100,000. The locations are determined by the Ministry of Education.
Discretionary fund - grants to provide assistance to ECE services in Canterbury affected by earthquakes and grants to provide support to the Better Public Services ECE participation target that by 2016, 98% of all children starting school would have participated in quality ECE.

UNESCO (M26)

Scope of Appropriation

Annual membership contribution to United Nations Educational, Scientific and Cultural Organisation's international administration, and a programme of activities of the National Commission, including participation in regional and international activities.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation2,0832,0832,083

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for ongoing membership and to enable participation in National Commission activities.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for non-departmental other expenses is less than $5 million.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Non-Government Organisations

UNESCO National Commission553553553Ongoing
UNESCO International Body1,5301,5301,530Ongoing

Total

2,083

2,083

2,083

The table above shows the main service providers for this appropriation.

3.5 - Non-Departmental Capital Expenditure

School Support Project (M26)

Scope of Appropriation

Capital costs of implementing approved school support and schooling improvement projects (other than costs related to school property assets).

Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation8328321,880

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for schools that are at financial risk.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of schools receiving emergency support that are able to meet immediate financial obligations.

100%100%100%

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Social Sector Trials2015/16(1,048)----

Reasons for Change in Appropriation

The $1.048 million increase in this appropriation for 2017/18 is due to a contribution made to Vote Social Development to support Social Sector Trials being for 2016/17 only and the baseline being returned to its earlier level after that.

Schools Furniture and Equipment (M26)

Scope of Appropriation

Provides funds to schools for new furniture and equipment when capital works (including remodelling/upgrading of existing property and new school property) are approved.

Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation41,54941,54931,573

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the supply of furniture and equipment to schools where the capital plans have been approved.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of State school buildings with a property condition of '3' or better, as an indicator of the condition of the school property portfolio (see Note 1).

85%85%85%

Note 1 - The condition of school buildings is rated on a scale of 1 to 5 (1 being the highest condition rating). The scale is based on a ratio of the expected 10-year cost of maintenance relative to estimated replacement value, defined as follows: 1 is a ratio of less than 5%; 2 is 5-10%; 3 is 10-20%; 4 is 20-30%; and 5 is over 30%. The measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways.

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity
Number of State schools receiving furniture and equipment grants to fit out new or additional teaching and non-teaching spaces as part of approved expansion projects (see Note 1).Revised indicator100 - 150100 - 150
Number of State schools receiving funding to upgrade and modernise their furniture and equipment through their Five-Year-Agreement budget.800 - 1,100800 - 1,100800 - 1,100

Note 1 - Funding is provided to schools for furniture and equipment as part of their capital work approvals for new and additional teaching and non-teaching spaces.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Third New Zealand Schools Public Private Partnership2018/19--1,759--
Schools Growth Package2017/18-3,5402,6197,3535,486
School Property Growth Package2016/177,0168,5312,782500-
New Zealand Schools Public Private Partnership Project Two2016/177,4052,489---
Technology in Schools2015/166,369----
New Schools and Roll-Growth Classrooms2015/163,9121,600---
Improved Wireless Connectivity in Schools2014/151,350----
School Property Programme Business Case and New Capital Funding for Budget 20142014/15463329---
School Property Expansion2014/153575,2285,2285,2285,228

Reasons for Change in Appropriation

The $9.976 million decrease in this appropriation for 2017/18 is due to a combination of:

  • completion of the School Network Upgrade Programme including wireless in 2016/17 ($8.419 million decrease)
  • fewer classrooms to be fitted out under the New Zealand Schools Public Private Partnership Project Two in 2017/18 than in 2016/17 ($4.916 million decrease)
  • reduced provision for the Christchurch Schools Rebuild programme in 2016/17 only ($3.821 million decrease), and
  • school property expansion including new schools and additional roll-growth classrooms ($7.180 million increase).

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

Multi-Category Expenses and Capital Expenditure

Improved Quality Teaching and Learning (M26)

Overarching Purpose Statement

The overarching purpose of this appropriation is to improve the quality of teaching and learning for children and young people aged 0-18 years.

Scope of Appropriation

Departmental Output Expenses
Support and Resources for Teachers
This category is limited to expenditure on policies and services focused on supporting the work and enhancing the capability of teachers.
Non-Departmental Output Expenses
Curriculum Support
This category is limited to the purchase of supplementary educational programmes for schools and communities to ensure wider access to these opportunities
Professional Development and Support
This category is limited to the delivery of professional development and advisory support to early childhood education services and schools to support effective teaching and enhance self-management.

Expenses, Revenue and Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

224,328224,328226,187

Departmental Output Expenses

Support and Resources for Teachers72,76372,76380,627

Non-Departmental Output Expenses

Curriculum Support57,16457,16454,213
Professional Development and Support94,40194,40191,347

Funding for Departmental Output Expenses

Revenue from the Crown

72,75372,75380,617
Support and Resources for Teachers72,75372,75380,617

Revenue from Others

101010
Support and Resources for Teachers101010

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Support and Resources for Teachers

Provision of Teaching and Learning Resources64,24264,24271,115
Provision of Services to Support Professional Leadership and Learning8,5218,5219,512

Curriculum Support

Information Technology Infrastructure38,21938,21935,239
Teacher Curriculum Support4,5384,5384,538
Student Curriculum Support6,5346,5346,534
Community Curriculum Support267267267
Rural Education Activities Programme4,4454,4454,445
Other Funding3,1613,1613,190

Professional Development and Support

Literacy and Numeracy17,03117,03116,406
New Zealand Curriculum/Te Marautanga o Aotearoa Learning Areas12,05512,05512,055
Qualifications and Assessments12,14812,14812,148
Leadership, Principal Development and Management6,3926,3926,392
Building a Responsive System for Priority Learners15,48815,48815,488
Workforce Development19,75219,75217,208
Early Childhood Education Professional Development8,3558,3558,355
Other Funding3,1803,1803,295
Total224,328224,328226,187

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve improved professional development of the workforce and enhanced learning for age 0 to 18 years.

The Professional Leadership and Development programme is currently undergoing a three-year change programme (2016 to 2018) to make it more effective for improving the quality of teaching and leadership for early childhood education services and schools.

How Performance will be Assessed for this Appropriation

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Communities of Learning | Kahui Ako and schools/kura who have accessed centrally-funded Professional Leadership and Development and have demonstrated a positive shift in the capability of teachers and leaders.

New measureNew measureBaseline year

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

Support and Resources for Teachers

This category is intended to achieve a highly effective workforce and resources to enhance learning for years 0-18.

Percentage of school teachers surveyed who are satisfied that English-medium teaching and learning resources provided support curriculum delivery.

80%80%80%

Non-Departmental Output Expenses

Curriculum Support

This category is intended to achieve wider access to opportunities within schools.

Percentage of students demonstrating accelerated achievement, whose teachers are participating in the Accelerated Learning in Literacy programme.

New measureNew measure80%

Percentage of students demonstrating accelerated achievement, whose teachers are participating in the Accelerated Learning in Maths programme.

New measureNew measure80%

Professional Development and Support

This category is intended to achieve a more effective educational workforce and provide resources to enhance learning for years 0-18.

Percentage of early childhood education services participating in the Strengthening Early Learning Opportunities for children, whanau, families and communities programmes focused on improving teaching and learning demonstrate positive shifts in practice.

80%80%80%

Communities of Learning | Kahui Ako and prioritised schools/kura who have accessed centrally-funded Professional Leadership and Development and have demonstrated a positive shift in capability.

New measureNew measureBaseline year

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity

Professional Development and Support

Number of early childhood education services participating in the Strengthening Early Learning Opportunities programme.1,200 - 1,5001,5001,200 - 1,500

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment
Ministry of Education72,76372,76380,627Ongoing

Crown Entities

State Schools1,8091,8091,809Ongoing
Universities (8)42,00342,00340,000Ongoing

Non-Government Organisations

Private Organisations and Trusts28,49228,49227,346Ongoing
Cognition Education Limited3,8253,8253,825Ongoing
Core Education Limited4,5894,5894,589Ongoing
Datacom Systems (Wellington) Limited10,86410,86410,864Ongoing
Equico Equipment Finance (NZ)10,03210,03210,032Ongoing
NZ School Trustees Association5,1265,1265,126Ongoing
Private Training Establishments6,2036,2036,203Ongoing
Rural Education Activities Programmes (13)4,4454,4454,445Ongoing
Telecom Rentals Limited8,0508,0508,050Ongoing
Te Tapuae o Rehua9,8029,8029,802Ongoing
Contracts yet to be finalised16,17616,17613,176Ongoing
Other149149293Ongoing

Total

224,328

224,328

226,187

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Changes to Levy Funding Allocations and Processes for Migrant Settlement Services from 2017/182017/18-115115115115
Operational Grant Funding Increase for Schools2017/18-29585858
Investing in Information and Communications Technology2017/18-477096102
Maori Language in Education - Increasing Curriculum Resources2017/18-1,9101,9101,9101,910
Education Recovery and Response: Kaikoura Earthquakes2016/1713515080--
Investing in Educational Success: Implementation Update2016/171,6137,8527,063--
Support for Projects that Strengthen Digital Technologies in the National Curriculum2016/171,000----
Investing in Educational Success: Implementation and Operating Contingency Update2016/177,90010,5007,9002,000-
Technology in Schools2016/173,040----
Savings - Improved Cost Effectiveness of Professional Learning and Development2016/17(3,000)(6,000)(6,000)(6,000)(6,000)
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(58)(58)(57)(45)(45)
Savings - Laptops for Teachers Efficiency Gains2015/16(1,206)(1,096)(1,709)(1,709)(1,709)
Supporting the Implementation of Youth Guarantee Initiatives2015/164,5703,7903,0833,0833,083
Cost Adjustment for Schools' Operational Grant Funding2015/163838383838
Contestable Fund to Support Asian Language Learning2014/153,6503,2501,025--
Cost Adjustment to Operational Grants for Schools2014/158787878787
Investing in Educational Success: Design and Implementation2014/151,6431,9761,9761,9761,976
Canterbury Earthquake - Support Packages for Christchurch Schooling Workforce2014/15160160160160160
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/14150150150150150
Retention Programme for Maori Medium2013/143,0003,0003,0003,0003,000
Improving School Governance - Supporting Boards of Trustees2013/144,0504,0504,0504,0504,050
Savings from Crown Line-by-Line Review2013/14(4,514)(4,514)(4,514)(4,514)(4,514)
Early Childhood Education Initiatives2013/143,0303,0303,0303,0303,030
Quality Teaching Agenda2013/141,6892,6892,1891,6891,689
Price Level Adjustment to School's Operational Grants2013/148888888888
Accelerating Education for Priority Learners2013/141,0001,0001,0001,0001,000

Reasons for Change in Appropriation

The $1.859 million increase in this appropriation for 2017/18 is mainly due to a combination of:

  • the implementation of the Investing in Educational Success programmes ($8.839 million increase)
  • funding to accelerate the design and delivery of curriculum resources for students and teachers in Maori language in education provision, in particular Maori-medium education ($1.910 million increase)
  • completion of the technology in schools project ($3.040 million decrease)
  • improved cost effectiveness of professional learning and development ($3 million decrease)
  • continuation of finance transformation programme ($1.250 million decrease), and
  • support for projects that strengthen digital technologies in schools ($1 million decrease).

Outcomes for Target Student Groups (M26)

Overarching Purpose Statement

The overarching purpose of this appropriation is to improve outcomes for targeted student groups.

Scope of Appropriation

Departmental Output Expenses

Interventions for Target Student Groups
This category is limited to expenditure on policies and services focused on targeted student groups or individuals' participation in education.

Non-Departmental Output Expenses

Service Academies
This category is limited to providing military-focused programmes for disengaged or disengaging senior students in secondary schools.
Students Attendance and Engagement
This category is limited to providing services to support increased attendance for non-attending students.

Non-Departmental Other Expenses

Learning Support
This category is limited to providing additional resources to enable students with additional learning needs to participate in education.

Expenses, Revenue and Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

683,803683,803690,049

Departmental Output Expenses

Interventions for Target Student Groups257,373257,373258,744

Non-Departmental Output Expenses

Service Academies3,6403,6403,640
Students Attendance and Engagement9,5519,5519,676

Non-Departmental Other Expenses

Learning Support413,239413,239417,989

Funding for Departmental Output Expenses

Revenue from the Crown

255,673255,673257,044
Interventions for Target Student Groups255,673255,673257,044

Revenue from Others

1,7001,7001,700
Interventions for Target Student Groups1,7001,7001,700

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Interventions for Target Student Groups

Targeted Student Participation Interventions16,26616,26616,266
Special Needs Interventions241,107241,107242,478

Service Academies

3,6403,6403,640

Students Attendance and Engagement

9,5519,5519,676

Learning Support

Salaries Funding190,393190,393192,105
Operations and Other Funding222,846222,846225,884
Total683,803683,803690,049

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve equitable participation and increased engagement within the education system.

How Performance will be Assessed for this Appropriation

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Participation in early childhood education prior to starting school:

  • all
98% by December 201696.7%98%
  • Maori
98%95.0%98%
  • Pasifika
98%92.9%98%
  • Decile 1-3 students.
98%94.0%98%

Participation in primary and secondary education: The percentage of students attending school regularly (see Note 1).

New measureNew measure70%

Note 1 - Attending regularly is defined as attending at least 90% of the time. This is assessed by measuring attendance across the whole of Term 2.

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

Interventions for Target Student Groups

This category is intended to achieve equitable participation and outcomes in education for targeted student groups.

Average number of days eligible children and young people wait to receive a Ministry provided specialist learning support core service after the request for support.

75 calendar days60 calendar days70 calendar days

Satisfaction of parents and educators of children and young people receiving a specialist learning support core service with the overall quality of the Ministry's service delivery (see Note 1).

Revised measureRevised measure74

Satisfaction of parents and educators of children and young people receiving a specialist learning support core service who are satisfied with the child/young person's progress after this service (see Note 1).

Revised measureRevised measure70

Parents and educators receiving a specialist learning support core service are more confident in knowing how to support the child or young person after this service (see Note 1).

New measureNew measure72

Parents of children and young people receiving a specialist learning support core service believe 'My child is made to feel welcome at their current school/early learning service' (see Note 1).

New measureNew measure90

Percentage of children or young people whose behavioural issues have improved following their parents' completion of the Incredible Years Parent Programme.

70%70%70%

Satisfaction of educators with the overall quality of Resource Teacher: Learning and Behaviour services (see Note 1).

New measureNew measure85

The percentage of Ongoing Resourcing Scheme (ORS)-verified school leavers with NCEA (see Note 2):

  • Level 1 or above
New measureNew measureAt least 24.7%
  • Level 2 or above.
New measureNew measureAt least 15.6%

Non-Departmental Output Expenses

Service Academies

This category is intended to achieve re-engagement of senior students in secondary schools.

Percentage of students enrolled in Service Academies either retained or transitioned to further education, training or employment.

Revised measure80%80%

Percentage of students retained in Service Academies who achieve NCEA Level 2.

New measureNew measure75%

Students Attendance and Engagement

This category is intended to achieve maximum attendance at schools by reducing unjustified absence rates and non-enrolment and reducing the time it takes to return students to education.

The median numbers of school days before excluded learners are returned to schooling.

40 days or less40 days or less40 days or less

Percentage of schools supplying individual student attendance data each term.

New measureNew measure50%

Non-Departmental Other Expenses

Learning Support

This category is intended to achieve equitable participation and education outcomes for targeted student groups.

Service providers who do not have effective internal evaluation processes on initial review have implemented an action plan with the support of the Ministry and demonstrate that they are progressing towards achieving the agreed actions in the plan when re-reviewed (see Note 3).

New measureNew measure90%

Note 1 - This result comes from an annual satisfaction survey of parents and educators of children and young people who receive a specialist learning support core service. It uses a Service Quality Score which is the same as the approach used for the State Services Commission's Kiwis Count. The Service Quality Score is calculated by rescaling the result from each respondent's five-point scale (1,2,3,4,5) to a 101-point scale (0, 25, 50, 75, 100) then calculating an average of these scores.

Note 2 - Ongoing Resourcing Scheme (ORS) provides specialist services and support for students with the very highest additional learning needs. Students have to meet one or more of the nine eligibility criteria for ORS; once a student is in ORS their funding and support stays with them throughout their time at school, which can be up to when they are 21.

Note 3 - Our past experience of reviews indicate that at least 90% of the providers are meeting at least 90% of the service standards.

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity

Interventions for Target Student Groups

The number of children receiving a specialist learning support core service.27,345 - 33,42534,000 - 35,00029,285 - 35,365

Learning Support

Number of young people enrolled in the Alternative Education programme.2,5003,0542,500
Number of individual students supported through the Resource Teacher: Learning and Behaviour service.15,000 - 17,00015,000 - 15,50015,000 - 17,000

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Ministry of Education

257,373257,373258,744Ongoing

New Zealand Defence Force

981981981Ongoing

Crown Entities

State Schools410,857410,857415,732Ongoing
State Schools - Service Academies2,6592,6592,659Ongoing
The Correspondence School1,9161,9161,916Ongoing

Non-Government Organisations

Private organisations9,5909,5909,590Ongoing
Royal NZ Foundation for the Blind427427427Ongoing

Total

683,803

683,803

690,049

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme2018/19--8651,0481,135
Investing in Information and Communications Technology2017/18-203305415441
Learning Support - Meeting Increasing Costs2017/18-551657713769
Operational Grant Funding Increase for Schools2017/18-5881,1721,1741,174
Incredible Years for Children with High Needs2017/18-6801,1101,3101,090
Oral Language - Removing Barriers to Access2017/18-7661,1521,1521,152
In-class Support for Students with High Learning Needs - Increasing Access2017/18-2,1884,4434,4434,443
English for Speakers of Other Languages - Increasing Funding2017/18-3,6035,756--
Settlement of the Primary Teachers' and the Primary Principals' Collective Agreements 2016-2018 and the Area School Principals' Collective Agreement 2016-20192016/172,2843,9143,7313,7313,731
Settlement of 2016-2019 Collective Agreements for Area School Teachers' and Secondary Principals'2016/17143264365364364
Settlement of 2016-2018 Special Education Field Staff Collective Agreement Negotiations2016/171,7002,0652,0652,0652,065
Increased Access to Assistive Technology2016/17300350400400400
The Ongoing Resourcing Scheme2016/173,8344,0744,2284,3604,360
Increased Availability of In-Class Support for Students with Special Education Needs2016/172,1554,3754,3754,3754,375
Increased Access to the Intensive Wraparound Service2016/172,2202,2202,2202,2202,220
Operational Grant Increase to Schools to Support Children Most at Risk of Not Achieving2016/1752104104104104
Secondary Teachers' Collective Agreement 2015-20182015/161,1721,9662,1152,1152,115
Response to the Syrian Refugee Crisis: Implementation2015/169381,082304--
Resolution of Historic Abuse Claims2015/16420301---
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(249)(248)(248)(196)(196)
Ongoing Resourcing Scheme - Demand Pressures2015/169,83410,66611,55311,55311,553
Additional In-Class Support2015/165,7955,8725,9515,9515,951
Count Me In2015/161,000----
Gateway Education Assessments for Vulnerable Children2015/161,0001,0001,0001,0001,000
Year 9 Plus (Concept Test)2015/16672554409409409
Cost Adjustment for Schools' Operational Grant Funding2015/16766767767767767
Savings - Reductions to Network Contingency2015/16(300)(300)(300)(300)(300)
Savings - Positive Behaviour for Learning School-Wide Efficiencies2015/16(743)(743)(743)(743)(743)
Sustaining Momentum on New Zealand Sign Language in Education2015/163,2173,217---
Support for Students with High Health Needs to Safely Attend School2014/151,1701,1701,1701,1701,170
Price Level Adjustment to School's Operational Grants2014/152,2462,2472,2472,2472,247
Savings - Reduction in School Classification, Integration and Closure Contingency Funding2014/15(750)(750)(750)(750)(750)
Ministry-funded Special Education Frontline Practitioners (Service Managers) Collective Agreement2013/14134134134134134
Settlement of Teacher and Principal and Ministry Funded Field Staff Collective Agreements2013/143,6633,6633,6633,6633,663
Positive Behaviour for Learning2013/1416,28016,28016,28016,28016,280
Contribution for Video Remote Interpreting Service administered by Ministry of Business, Innovation and Employment2013/14(50)(50)(50)(50)(50)
Price Level Adjustment to School's Operational Grants2013/142,0772,0772,0772,0772,077
Settlement of the Area School Principals' Collective Agreement 2013-20162013/1488888
Support for Mental Health Initiatives - Systems Development2013/14420420420420420

Reasons for Change in Appropriation

The category Special Needs Support has been renamed Learning Support as this change in language should create a more inclusive environment for students.

The $6.246 million increase in this appropriation for 2017/18 is mainly due to:

  • increased availability of in-class support for students with higher learning needs ($4.485 million increase)
  • additional funding for the English for Speakers of Other Languages programme ($3.603 million increase)
  • difference in estimated school term start dates between the two financial years ($1.840 million increase)
  • increase in school operations grant allocation targeted at children at most at risk of not achieving ($1.276 million increase)
  • increase in demand for the Ongoing Resourcing Scheme ($1.072 million increase)
  • a transfer to 2016/17 for the Education System Identity and Access Management system ($3.700 million decrease)
  • teachers' salary costs mainly from changes to rolls, the level of effective average rates, and settlement of collective employment agreements ($2.301 million decrease), and
  • completion of the Count Me In (Edge and Beyond) programme in 2016/17 ($1 million decrease).

Conditions on Use of Appropriation

ReferenceConditions
Cabinet decisionThe service academy programme targets:
  • students in Year 12 and Year 13 in low decile (1 to 3) schools
  • other senior students approved by their schools, and
  • students at risk of disengaging from education

Oversight of the Education System (M26)

Overarching Purpose Statement

The overarching purpose of this appropriation is to provide policy advice, research, monitoring and related services that enable Ministers to discharge their responsibilities for a well-functioning education system (excluding tertiary education).

Scope of Appropriation

Departmental Output Expenses

Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
Monitoring the Education System
This category is limited to the monitoring and reporting on education at a system-wide level to support Ministers in discharging their responsibilities for education related matters.
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on education related matters.
Research and Analysis
This category is limited to the production and dissemination of research and data analysis to support the work of other agencies and Ministers in discharging their responsibilities for education related matters.

Non-Departmental Output Expenses

Education Research Initiatives
This category is limited to the purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.
Independent Advice on Government Priority Areas
This category is limited to the provision, independently of the Ministry of Education, of advice (including second opinion advice and contributions to policy advice led by other agencies, advice on operational matters and expert review service advice) to support decision-making by Ministers on government priority areas.

Expenses, Revenue and Capital Expenditure

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--62,599

Departmental Output Expenses

Ministerial Services--5,773
Monitoring the Education System--9,757
Policy Advice--16,539
Research and Analysis--27,022

Non-Departmental Output Expenses

Education Research Initiatives--3,008
Independent Advice on Government Priority Areas--500

Funding for Departmental Output Expenses

Revenue from the Crown

--59,081
Ministerial Services--5,763
Monitoring the Education System--9,757
Policy Advice--16,539
Research and Analysis--27,022

Revenue from Others

--10
Ministerial Services--10

Comparators for Restructured Appropriation

2016/172017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Education: Departmental Output Expense: Policy Advice16,44216,442-
Vote Education: Departmental Output Expense: Stewardship of the Education System37,29737,297-
Vote Education: Non-Departmental Output Expense: Education Research Initiatives3,0083,008-
Vote Education: Non-Departmental Output Expense: Provision for Information and Advisory Services (Component: Independent Advice on Government Priority Areas)500500-

Total

57,247

57,247

62,599

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide advice to Ministers to support decision-making, managing the Government's investment in the education sector, and monitoring and oversight of the sector.

How Performance will be Assessed for this Appropriation

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating given by the Minister of Education with the overall performance of the Ministry (see Note 1).

New measureNew measure7

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

Ministerial Services

This category is intended to achieve effective and efficient ministerial services.

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies completed within the timeframes agreed between the Ministry and the Office of the Minister.

Revised measure95%95%

The percentage of Ministerial Correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies provided that are factually accurate, meet any legislative requirements, and contain no avoidable errors, as measured by acceptance rates by the Office of the Minister.

New measureNew measure95%

Monitoring the Education System

This category is intended to monitor the overall education system including the performance and compliance of Crown entities and statutory bodies.

Forecasts of enrolment numbers, and expenditure for early childhood education and primary and secondary schooling, are accurate.

Accurate within + 3% of actual valuesAccurate within + 3% of actual valuesAccurate within + 3% of actual values

The satisfaction rating given by the Minister of Education on the quality of monitoring advice provided by the Ministry about Crown agencies (see Note 1).

777

Policy Advice

This category is intended to achieve the provision of quality advice to the Minister and ensure that education policy and programmes support the performance of the education system.

Independent assessment of the quality of the Ministry's policy advice (see Note 2).

75%75%75%

The satisfaction rating given by Ministers for the quality and timeliness of policy advice (as per the Common Satisfaction Survey) (see Note 3).

777

The total cost per hour per person of producing policy outputs (see Note 4).

Up to $155Up to $155Up to $155

Research and Analysis

This category is intended to undertake research initiatives focused on the education system and produce and disseminate data and statistics for the sector.

For newly-released research and/or evaluation reports on the Education Counts website, the minimum number of:

  • page visits per annum
New measureNew measure240
  • downloads per annum.
New measureNew measure120

Non-Departmental Output Expenses

Education Research Initiatives

This category is limited to the purchase of research about teaching and learning in our educational institutions and independent research on education issues, policies and practices.

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for non-departmental other expenses is less than $5 million.

Independent Advice on Government Priority Areas

This category is limited to the provision, independently of the Ministry of Education, of advice (including second opinion advice and contributions to policy advice led by other agencies, advice on operational matters and expert review service advice) to support decision-making by Ministers on government priority areas.

An exemption was granted under section 15D(2)(b)(iii) of the Public Finance Act 1989, as the amount of this annual appropriation for non-departmental other expenses is less than $5 million.

Note 1 - The rating measures Ministers' satisfaction on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 2 - The independent assessment of the Ministry's policy advice will have a technical robustness score, using the measurement of robustness provided by the Treasury.

Note 3 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 4 - This measure provides the total cost of an hour of professional staff time devoted to both policy advice and other policy outputs. Total cost includes the cost of labour, overheads, support staff, direct costs and outsourced work to support production.

The following information is an indication of expected numbers and is provided for context only.

2016/172017/18
Forecast ActivityEstimated ActualForecast Activity

Research and Analysis

The number of newly-released research and/or evaluation reports on the Education Counts website.New indicatorNew indicatorUp to 20

Service Providers for the Multi-Category Appropriation

Provider 2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Ministry of Education

53,73953,73959,091Ongoing

Non-Government Organisations

New Zealand Council for Educational Research1,5561,5561,556Ongoing
Building Knowledge about Teaching and Learning1,4521,4521,452Ongoing
Consultants500500500Ongoing

Total

57,247

57,247

62,599

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Early Childhood Education - Targeted Funding for Disadvantage2017/18-2002020250
Investing in Information and Communications Technology2017/18-40598187
Oral Language - Removing Barriers to Access2017/18-366533533366
Drawdown of Data and Analytics Contingency - Tranche 0 and First Year of Tranche 1 of the Integrated Education Data (iEd) Programme (10-18)2016/172,6068,156---
Te Aho o Te Kura Pounamu Partnership Pilot2016/1771----
Establishing Round Four Partnership Schools | Kura Houra2016/17-330---
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(21)(21)(21)(17)(17)
Accelerating Education for Priority Learners2013/14100100100100100
Independent Advice on Government Priority Areas2013/14500500500500500
Quality Teaching Agenda2013/141,6501,6501,6501,6501,650

Reasons for Change in Appropriation

This is a new multi-category appropriation in 2017/18 created by combining three former appropriations and an element of a fourth as shown in the Comparators for Restructured Appropriation table above. The reorganisation of appropriations for 2017/18 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

The $5.352 million increase in this appropriation for 2017/18 compared to equivalent appropriations in 2016/17 is mainly due to provision for the Integrated Education Data (iED) Programme ($5.550 million increase).

Conditions on Use of Appropriation

ReferenceConditions
New Zealand Council for Educational Research Act 1972The functions of the Council are to:
  • foster the study of, and research into, education and other like matters and to prepare and publish reports that in its opinion are necessary or of value to teachers or other persons, and
  • furnish information, advice and assistance to persons and organisations concerned with education and other similar matters.
These are reflected in the annual purchase agreement with New Zealand Council for Educational Research.
The Teaching and Learning Research InitiativeThe aims of the Teaching and Learning Research Initiative are to:
  • build a cumulative body of knowledge linking teaching and learning
  • enhance the links between educational research and teaching practices and researchers and teachers across the early childhood, school and tertiary sectors, and
  • grow research capability and capacity in the areas of teaching and learning.
The five principles that guide Teaching and Learning Research Initiative projects and related activities can be found at www.tlri.org.nz.
These aims and principles form part of the 'call for proposals' process for projects funded through the Teaching and Learning Research Initiative annual programme.

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 2017/18 financial year covering the following:

  • a total of nearly $29 million for evaluations (institutional and system-wide) on the quality of education provided by early childhood learning services, schools and other education service providers.
  • a total of $830,000 in departmental capital expenditure.

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/172017/18
Titles and Scopes of Appropriations by Appropriation TypeFinal
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

Quality of Education Reports and Services (M26)

This appropriation is limited to the provision of national education evaluation reports, policy services, ministerial and contractual services.
4,2854,285-

Total Departmental Output Expenses

4,2854,285-

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.
1,8791,879830

Total Departmental Capital Expenditure

1,8791,879830

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.
--28,720
Departmental Output Expenses
Early Childhood Learning Services
This category is limited to evaluations of the performance of early childhood learning services.
--9,979
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.
--3,704
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.
--15,037

Accountability Reviews MCA (M26)

The single overarching purpose of this appropriation is to provide assurance on the quality of education provided by early childhood education services, schools and other education service providers.
24,28524,285-
Departmental Output Expenses
Early Childhood Education Services
This category is limited to evaluations of the performance of early childhood education services.
9,3549,354-
Schools and Other Education Service Providers
This category is limited to evaluations of the performance of schools and other education service providers.
14,93114,931-

Total Multi-Category Expenses and Capital Expenditure

24,28524,28528,720

Total Annual and Permanent Appropriations

30,44930,44929,550

Capital Injection Authorisations

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Education Review Office - Capital Injection (M26)---

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Education evaluation - investing for accountability and improvementQuality of Education: Evaluations and Services MCA
Departmental Output Expenses
-8271,0921,3572,180
Total Initiatives-8271,0921,3572,180

1.2 - Trends in the Vote

Summary of Financial Activity

2012/132013/142014/152015/162016/172017/182018/192019/202020/21
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 Expenditure1,5194041,0071,0701,8791,879830-8301,1001,1001,046
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses27,44727,94927,83928,59028,57028,57028,720-28,72028,99729,26230,085
Other Expenses------------
Capital Expenditure------N/A-----

Total Appropriations

28,96628,35328,84629,66030,44930,44929,550-29,55030,09730,36231,131

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 Appropriations in the Details of Appropriations and Capital Injections.

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

 

2012/13
Adjustments
$000
2013/14
Adjustments
$000
2014/15
Adjustments
$000
2015/16
Adjustments
$000
2016/17
Final Budgeted
Adjustments
$000
2016/17
Estimated
Actual
Adjustments
$000

Appropriations

Output Expenses (3,030)(3,598)(3,441)(4,344)(4,285)(4,285)
Benefits or Related Expenses ------
Borrowing Expenses ------
Other Expenses ------
Capital Expenditure ------
Intelligence and Security Department Expenses and Capital Expenditure ------
Multi-Category Expenses and Capital Expenditure (MCA)
   Output Expenses 3,0303,5983,4414,3444,2854,285
   Other Expenses ------
   Capital Expenditure ------

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

Tax Revenue ------
Non-Tax Revenue ------
Capital Receipts ------

Total Crown Revenue and Capital Receipts

------

The adjustments in the table above reflect the new multi-category appropriation Quality of Education: Evaluations and Services set up for Vote ERO. The table shows how past expenditure would have changed if the restructured appropriations had been in place before 2012/13.

1.3 - Analysis of Significant Trends

Vote ERO contains appropriations for output expenses and capital expenditure.

From 2012/13 to 2016/17 total departmental output expense appropriation levels for outputs supplied by ERO were steady, including:

  • increases in 2015/16 and 2016/17 due to higher levels of contractual evaluation services provided by ERO
  • increases in 2013/14 and 2014/15 for additional evaluations of schools that are non-compliant with National Standards.

From 2017/18 to 2020/21 total departmental output expense appropriation levels for outputs supplied by ERO will increase due to additional investment in education evaluations for accountability and improvement. This will support the effectiveness of education evaluation by enabling ERO to undertake additional early learning service evaluations to meet the growth in this sector and address wage cost pressures.

There are no significant trends in capital expenditure appropriation levels.

1.4 - Reconciliation of Changes in Appropriation Structure

Old StructureNew Structure
2016/17 Appropriations
in the 2016/17 Structure
2016/17
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2016/17 Appropriations
in the 2017/18 Structure
2016/17
(Restated)
$000
2017/18
$000

Departmental Output Expense

Multi-Category Expense

Quality of Education Reports and Services4,285Moved to Quality of Education: Evaluations and Services MCA(4,285)Quality of Education: Evaluations and Services MCA28,57028,720
-Moved from Quality of Education Reports and Services4,285

Multi-Category Expense

Accountability Reviews MCA24,285Moved to Quality of Education: Evaluations and Services MCA(24,285)
-Moved from Accountability Reviews MCA24,285
Total Changes in Appropriations28,570-28,57028,720

From 2017/18 a new multi-category appropriation Quality of Education: Evaluations and Services was established. This multi-category appropriation aggregates the two appropriations Accountability Reviews MCA and Quality of Education Reports and Services. Both of these appropriations use similar resources in working toward the same purpose of providing evaluations of quality of education provided to all young New Zealanders.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

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

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural---
Land---
Property, Plant and Equipment1,4991,499480
Intangibles380380350
Other---

Total Appropriation

1,8791,879830

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

2016/172017/18
Assessment of PerformanceFinal 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 2017/18 is mainly due to two building re-fits in 2016/17 only.

Capital Injections and Movements in Departmental Net Assets

Education Review Office
Details of Net Asset Schedule2016/17
Estimated Actual
$000
2017/18
Projected
$000
Explanation of Projected Movements in 2017/18
Opening Balance3,7464,021
Capital Injections--
Capital Withdrawals--
Surplus to be Retained (Deficit Incurred)275-Insurance proceeds for damaged property and equipment arising from the Kaikoura earthquake in November 2016.
Other Movements--

Closing Balance

4,0214,021

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

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

--28,720

Departmental Output Expenses

Early Childhood Learning Services--9,979
National Evaluations and Other Services--3,704
Schools and Other Education Service Providers--15,037

Funding for Departmental Output Expenses

Revenue from the Crown

--27,885
Early Childhood Learning Services--9,962
National Evaluations and Other Services--2,923
Schools and Other Education Service Providers--15,000

Revenue from Others

--835
Early Childhood Learning Services--17
National Evaluations and Other Services--781
Schools and Other Education Service Providers--37

Comparators for Restructured Appropriation

2016/172017/18
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Education Review Office: Departmental Output Expense: Quality of Education Reports and Services4,2854,285-
Vote Education Review Office: Multi-Category Expense: Accountability Reviews24,28524,285-
Early Childhood Education Services9,3549,354-
Schools and Other Education Service Providers14,93114,931-
Total28,57028,57028,720

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

2016/172017/18
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Total number of evaluations of service providers and national evaluations

>1,850>1,850>1,850

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%-100%80%-100%>80%

Level of public satisfaction (score out of 100)

7070>70

What is Intended to be Achieved with each Category and How Performance will be Assessed

2016/172017/18
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

1,200-1,4601,200-1,4601,200-1,460

ERO uses a moderation panel to assess levels of compliance with approved standard procedures for a sample of early childhood learning service evaluations

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

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, 25 and 35 working days of the end of the last week on site

80%,90% and 98% respectively80%,90% and 98% respectively80%,90% and 98% respectively

Percentage of early childhood learning service providers 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 services evaluated previously within the 2 year review cycle moving to the 3 year review cycle

60%-65%60%-65%60%-65%

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 20Up to 20Up to 20

National evaluations are consistent with approved plans and procedures

100%100%100%

Policy services are consistent with approved presentational standards

N/AN/A100%

Ministerial services are consistent with statutory and or formal parliamentary requirements

N/AN/A100%

Ministerial services are consistent with formal Ministerial requirements

N/AN/A100%

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 state schools education evaluations

650-840650-840650-840

Number of home schooling education evaluations

Up to 35Up to 35Up to 35

Number of private school education evaluations

Up to 25Up to 25Up to 25

ERO uses a moderation panel to assess levels of compliance with approved standard procedures for a sample of schools and other education service providers

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

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, 25 and 35 working days of the end of the last week on site

80%, 90% and 98% respectively80%, 90% and 98% respectively80%, 90% and 98% respectively

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 schools evaluated previously on the 1-2 year review cycle moving to the 3 year review cycle

60%-65%60%-65%60%-65%

Percentage of schools evaluated previously on the 3 year review cycle moving to the 4-5 year review cycle

12%-15%12%-15%12%-15%

Number of Communities of Learning reports

Up to 100Up to 100Up to 100

Communities of Learning reports are consistent with approved presentational standards and agreed terms of reference

100%100%100%

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.

ERO's Manual of Standard Procedures is a framework used by reviewers so that there is consistency nationally in undertaking evaluations. It describes the processes to be followed, the evaluation indicators to be used, and the accepted principles of good practice for conducting evaluations. The Manual of Standard Procedures also set out quality standards relating to the investigation and reporting processes, and to the content, presentation and timeliness of evaluations. It also describes the quality management procedures to be applied systematically within ERO.

From time to time, ERO will undertake external reviews to give the Chief Executive assurance on the extent to which education evaluations are meeting its quality standards in addition to using a moderation panel.

Communities of Learning are part of the Investing in Educational Success initiative. To support this initiative, ERO provides a report for each Community of Learning to assist them in developing their 'achievement challenges' to complement the data profiles that the Ministry of Education will provide. Each ERO report will give an overview of how well schools are performing based on their recent reporting history and is tailored for each Community of Learning regarding the strengths and areas that they could consider for improved outcomes. The number of reports required will depend on the number of Communities of Learning approved by the Minister of Education.

National education evaluations provide information on significant education issues and education sector performance. In particular, ERO will provide information for individual schools, communities and the Government on how well schools are assisting their students to achieve educational standards and qualifications, using assessment, and promoting the educational success of students, particularly Maori and Pacific. This information will be used by government education policy agencies to determine the effectiveness of current initiatives and to establish priorities, and by schools and early childhood education services in their own internal evaluation. Education evaluations include guides to good practice. The information for these evaluations is gathered from the institutional evaluations carried out by ERO or by specialist ERO teams for particular topics.

ERO uses the State Services Commission's Kiwi Count survey to assess the level of public satisfaction with ERO's evaluation work. ERO also commissions sample studies to ascertain the extent to which particular evaluations are found useful and used by key audiences.

Policy services involve advice to, or on behalf of, the Minister of Education, on policy proposals or any other issues referred to, or identified by, the Chief Executive. ERO is not primarily a provider of policy advice. From its regular presence in schools and early childhood services it is, however, in a position to make a useful contribution to assist the policy agencies. This service will contribute to the Government's policy priorities for schools and early childhood education service.

Ministerial services include the provision of oral briefings and briefing papers to the Minister, preparation of answers to parliamentary questions, drafting of ministerial correspondence and speech notes, and responding to general and official information requests. Ministerial services also include advice to the Minister on the implementation of recommendations arising from institutional evaluations and education evaluations, or any other matter on which the Minister seeks additional information or feedback.

Contractual evaluation services include additional one-off evaluations outside ERO's normal work programme. These may be requested at short notice to look at particular matters under specific terms of reference. Contractual services are conducted on a fee for service basis.

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 InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Education evaluation - investing for accountability and improvement2017/18-8271,0921,3572,180
Share of costs for Budget 2015 whole-of-government initiatives2015/16(67)(48)(36)(36)(36)

Reasons for Change in Appropriation

The increase in this appropriation is due to additional investment in education evaluations for accountability and improvement partially offset by lower levels of contractual evaluation services provided by ERO forecasted in 2017/18 compared to 2016/17.

Vote Tertiary Education

APPROPRIATION MINISTER(S): Minister for Tertiary Education, Skills and Employment (M14)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote

The Minister for Tertiary Education, Skills and Employment is responsible for appropriations in Vote Tertiary Education for the 2017/18 financial year covering the following:

  • a total of just over $12 million for services from the Ministry of Education
  • a total of just over $47 million for services from the Tertiary Education Commission
  • a total of just over $31 million for services from Education New Zealand
  • a total of nearly $2,907 million for tuition and industry training subsidies and research funding provided to tertiary education organisations, funding to help universities recruit world-leading entrepreneurial academics, and services from the adult and community education sector and other non-departmental providers, and
  • a total of nearly $22 million for tertiary scholarships, international education and other grants.

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

Details of Appropriations and Capital Injections

Annual and Permanent Appropriations

2016/172017/18
Titles and Scopes of Appropriations by Appropriation TypeFinal
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Non-Departmental Output Expenses

Access to Tertiary Education (M14)

This appropriation is limited to improving access to tertiary education and training.
24,21624,21626,449

Administration of and Support for the Tertiary Sector (M14)

This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.
46,91846,91847,163

Centres of Research Excellence (M14)

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
49,80049,80049,800

International Education Programmes (M14)

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.
29,43929,43931,072

Tertiary Education Research and Research-Based Teaching (M14)

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
301,500301,500309,000

Tertiary Sector / Industry Collaboration Projects (M14)

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
25,37825,37828,372

University-led Innovation (M14)

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
2,5002,50010,833

Total Non-Departmental Output Expenses

479,751479,751502,689

Benefits or Related Expenses

Awards for Outbound New Zealand Students (M14)

This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.
4,5904,5905,040

Scholarships for Inbound International Students (M14)

This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
800800800

Support to Apprentices (M14)

This appropriation is limited to payments to New Zealand Apprentices and other participants in workplace-based training, including Maori and Pasifika Trades Trainees, towards their tools and other training related costs.
1,2601,2601,036

Tertiary Scholarships and Awards (M14)

This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.
14,44714,44714,732

Total Benefits or Related Expenses

21,09721,09721,608

Non-Departmental Capital Expenditure

Literacy and Numeracy Assessment Tool (M14)

This appropriation is limited to development of online assessment tools for adult and youth literacy and numeracy.
500500-

Support for Tai Poutini Polytechnic (M14)

This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.
3,6003,600-

Support for the University of Canterbury (M14)

This appropriation is limited to the rebuild of the Science and Engineering Facilities at the University of Canterbury.
15,00015,000-

Total Non-Departmental Capital Expenditure

19,10019,100-

Multi-Category Expenses and Capital Expenditure

Stewardship of the Tertiary Education System MCA (M14)

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.
12,90112,90112,377
Departmental Output Expenses
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
4,8564,8564,856
Research, Data Analysis and Monitoring
This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.
8,0458,0457,521

Tertiary Tuition and Training MCA (M14)

The overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
2,465,6722,465,6722,481,969
Non-Departmental Output Expenses
Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
72,75172,75177,286
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
2,085,2052,085,2052,084,592
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
307,716307,716320,091

Total Multi-Category Expenses and Capital Expenditure

2,478,5732,478,5732,494,346

Total Annual and Permanent Appropriations

2,998,5212,998,5213,018,643

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy InitiativeAppropriation2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Building Entrepreneurial Universities

University-led Innovation

2,50010,83310,83310,83410,000
Non-Departmental Output Expense
Funding for Employment-based Initial Teacher Education

Tertiary Tuition and Training MCA

(see also Vote Education in the Education Sector)Tertiary Education: Student Achievement Component-(719)(1,913)(1,896)(703)
Non-Departmental Output Expense
Increasing the Performance-Based Research Fund

Tertiary Education Research and Research-Based Teaching

-7,50015,00015,00015,000
Non-Departmental Output Expense
Strengthening the Foundations for Sustainable Growth of International Education

International Education Programmes

-1,7001,7001,7001,700
Non-Departmental Output Expense
Tai Poutini Polytechnic Short-term Financial Support

Tertiary Tuition and Training MCA

Tertiary Education: Student Achievement Component(3,600)----
Non-Departmental Output Expense

Support for Tai Poutini Polytechnic

3,600----
Non-Departmental Capital Expenditure
The Next Three-Year (2016/17 - 2018/19) Refugee Quota Programme
(see also Vote Education in the Education Sector, Vote Labour Market in the Economic Development and Infrastructure Sector, Vote Social Development in the Social Development and Housing Sector and Vote Health in the Health Sector)

Tertiary Tuition and Training MCA

Community Education--5251,0501,575
Non-Departmental Output Expense
Transfer Unspent 2016/17 Tuition and Training Funding to Contingencies

Tertiary Tuition and Training MCA

Community Education(900)----
Non-Departmental Output Expense
Tertiary Education: Student Achievement Component(11,400)----
Non-Departmental Output Expense
Training for Designated Groups(3,200)----
Non-Departmental Output Expense
Tuition Subsidy Increase

Tertiary Tuition and Training MCA

Tertiary Education: Student Achievement Component-9,90519,81019,81019,810
Non-Departmental Output Expense
Workplace Literacy and Numeracy

Tertiary Tuition and Training MCA

Community Education-3,500---
Non-Departmental Output Expense
Training for Designated Groups(3,500)----
Non-Departmental Output Expense
Total Initiatives(16,500)32,71945,95546,49847,382

1.2 - Trends in the Vote

Summary of Financial Activity

2012/132013/142014/152015/162016/172017/182018/192019/202020/21
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 Expenses383,588403,077423,599449,691479,751479,751-502,689502,689504,425503,864502,130
Benefits or Related Expenses14,36231,52235,91318,19021,09721,097N/A21,60821,60824,09824,41524,414
Borrowing Expenses------------
Other Expenses3,4502,8951,377---------
Capital Expenditure25019,700117,87085,82519,10019,100---50,000--
Intelligence and Security Department Expenses and Capital Expenditure-------N/A----
Multi-Category Expenses and Capital Expenditure (MCA)
Output Expenses2,335,0112,397,3762,421,0202,475,8542,478,5732,478,57312,3772,481,9692,494,3462,499,5672,503,4762,505,846
Other Expenses------------
Capital Expenditure------N/A-----

Total Appropriations

2,736,6612,854,5702,999,7793,029,5602,998,5212,998,52112,3773,006,2663,018,6433,078,0903,031,7553,032,390

Crown Revenue and Capital Receipts

Tax Revenue------N/A-----
Non-Tax Revenue7,3828,93214,73615,4788,4178,417N/A1,0001,0001,0001,0001,000
Capital Receipts276-----N/A-----

Total Crown Revenue and Capital Receipts

7,6588,93214,73615,4788,4178,417N/A1,0001,0001,0001,0001,000

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 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.

1.3 - Analysis of Significant Trends

Significant changes in departmental and non-departmental appropriations related to tertiary and international education between 2012/13 and 2020/21 are discussed briefly below.

Departmental Output Expenses

Movements in departmental output expenses largely relate to:

  • transferring administration of the code of practice for the pastoral care of international students to the New Zealand Qualifications Authority - from 2013/14
  • participation in the OECD Programme for International Assessment of Adult Competencies at a cost of $5.260 million over four years from 2012/13 to 2015/16
  • progress on the Tertiary Information Future State work programme that commenced in 2013/14, and
  • the transfer of some activities between the Ministry of Education and the Tertiary Education Commission.

The departmental output expenses were transferred to a multi-category appropriation from 2016/17.

Non-Departmental Output Expenses

Most tertiary education funding is through non-departmental output expenses. The major changes to these appropriations over the trend period are principally owing to:

  • funding to meet increased demand for tertiary provision as a consequence of the global financial crisis at the start of the period (which levelled off in 2012), which supports increases in the proportion of young people with higher-level qualifications to meet Better Public Services targets
  • the implementation and expansion of the Youth Guarantee programme, including provision of fees-free places at tertiary institutions and the transfer of funding from 2012/13 onwards into the new Secondary-Tertiary Interface appropriation in Vote Education to fund trades academies
  • the removal of regulatory compliance training from 2012 and further reducing industry training funding to align with estimated demand in 2013
  • initiatives to revitalise the industry training system, introduce New Zealand Apprenticeships in 2014 and expand Maori and Pasifika trades training between 2013/14 and 2019/20
  • ensuring the country's skills base supports the needs of industry and encourages innovation - strengthening provision in areas of specific priority, such as engineering, science, agriculture and health sciences, with targeted increases in related tuition subsidies, the establishment of Information and Communication Technology graduate schools from mid-2015, and closing the gap in funding between private training and public providers in 2013 and 2014
  • funding to deliver foundation-level programmes to meet the needs of beneficiaries and for them to be referred to specialist providers or to address intensive literacy and numeracy needs (transferred from another Vote from 2013/14)
  • additional funding for research, including increasing the Performance-Based Research Fund to $315 million by 2018 and increasing the number of Centres of Research Excellence (CoRE) from 2016, including the establishment of one focused on Maori research
  • increased funding for international education, including promotions
  • funding for Centres of Asia-Pacific Excellence from 2017
  • funding from 2017 to help New Zealand universities recruit world-leading entrepreneurial academics
  • additional English language course provision following the response to the Syrian refugee crisis and an increased quota of refugees to 1,000 places from 2018/19, and
  • funding to support providers to maintain quality and innovate when demand is falling due to the strong economy in 2018 through an across-the-board tuition increase at Level 3 and above.

Three significant non-departmental output expenses were transferred to the Tertiary Tuition and Training multi-category appropriation from 2016/17.

Benefits or Related Expenses

Changes in benefits or related expenses are largely related to:

  • an apprenticeships 're-boot' between 2013/14 and 2014/15 and support for other apprentices
  • addressing pressures on Medical Trainee Intern Grants from 2015/16
  • phasing out of tertiary doctoral and enterprise scholarships and doctoral research and undergraduate international student scholarships, and
  • recategorising the Prime Minister's Scholarships for Asia fund from non-departmental output expense International Education Programmes, expanding the fund and establishing the Prime Minister's Scholarships for other regions from 2016/17.

Non-Departmental Other Expenses

Significant changes in these appropriations mainly reflect:

  • Tertiary Education Institutions Merger Support funding that ceased in 2013/14, and
  • University of Auckland Starpath Project funding that ceased in 2014/15.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure relate mainly to:

  • assisting Christchurch tertiary education institutions to recover from the impact of the 2010 and 2011 earthquakes, and
  • a new appropriation to provide funding support for Tai Poutini Polytechnic in 2016/17.

Crown Revenue

Significant changes between years mainly reflect recoveries of surplus grants funding from the Tertiary Education Commission and the tertiary education sector, and a share of earthquake-related insurance settlements from the University of Canterbury as provided for in their capital funding agreement.

1.5 - Relationship between Individual Appropriations and the Work Programmes

Appropriations contributing to outcomes and intermediate objectives:
Long term outcomes and objectives:Contributing to one or two outcomes:Contributing to all three outcomes:
The education system is relevant and reaches all children and students
  • High quality regulatory, funding and institutional arrangements
  • High quality curriculum and qualifications frameworks
  • High quality infrastructure
  • Information and data enabling good decision-making
  • Access to Tertiary Education (M14)
  • Administration of and Support for the Tertiary Sector (M14)
  • Centres of Research Excellence (M14)
  • Tertiary Scholarships and Awards (M14)
  • Stewardship of the Tertiary Education System MCA (M14)
  • Tertiary Tuition and Training MCA (M14)
Every child and student achieves educational success
  • Informed and supportive parents, whanau, iwi, communities and employers
  • Effective teaching and educational leadership
  • High participation and engagement
  • All learners achieving and progressing to their potential
  • International Education Programmes (M14)
  • Support to Apprentices (M14)
New Zealanders have skills and knowledge for work and life
  • Skills match labour market needs
  • Socially and culturally confident and competent people
  • Internationally credible skills and institutions
  • High quality research and innovation
  • International Education Programmes (M14)
  • Tertiary Education Research and Research-Based Teaching (M14)
  • Tertiary Sector / Industry Collaboration Projects (M14)
  • University-led Innovation (M14)
  • Awards for Outbound New Zealand Students (M14)
  • Scholarships for Inbound International Students (M14)
  • Support to Apprentices (M14)

Part 3 - Details of Non-Departmental Appropriations

3.1 - Non-Departmental Output Expenses

Access to Tertiary Education (M14)

Scope of Appropriation

This appropriation is limited to improving access to tertiary education and training.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation24,21624,21626,449

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Equity Loading16,71616,71617,149
Maori and Pasifika Trades Training Top Up7,5007,5009,300
Total24,21624,21626,449

What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve access to tertiary education and training for Tertiary Education Strategy priority learners.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Maori and Pasifika Trades Training

Percentage of learners per calendar year progressing from Maori and Pasifika Trades Training to trades-related employment (including New Zealand Apprenticeships and managed apprenticeships), other industry training at Level 3 and above, or further study at New Zealand Qualifications Framework Level 4 and above.

New measureNew measureBaseline year

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Universities (8)9,9459,94510,378Plans up to three years
Wananga (3)3,3733,3735,173Plans up to three years
Institutes of Technology and Polytechnics (16)9,8799,8799,879Plans up to three years

Non-Government Organisations

Private Training Establishments1,0191,0191,019Plans up to three years

Total

24,216

24,216

26,449

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Maori and Pasifika Trades Training Contingency Funding Drawdown2016/172,4002,4002,4002,4002,400
Increase Tertiary Equity Funding2013/142,2972,7302,7302,7302,730
Expansion of Maori and Pasifika Trades Training2013/146,0006,0006,0006,0006,000

Reasons for Change in Appropriation

The $2.233 million increase in this appropriation for 2017/18 is due to:

  • a transfer of $900,000 from 2016/17 for the Maori and Pasifika Trades Training Fees Top-up Fund to reflect the number of places taken up at tertiary institutions and length of programme undertaken by each learner across these two years (a transfer of $900,000 from 2016/17 to 2017/18 means that the appropriation for 2017/18 is $1.800 million higher than 2016/17), and
  • an increase to the tertiary equity funding pool as agreed in Budget 2013 in order to maintain current rates per student ($433,000 increase).

Conditions on Use of Appropriation

ReferenceConditions
Section 159L Education Act 1989Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister for Tertiary Education, Skills and Employment.

Administration of and Support for the Tertiary Sector (M14)

Scope of Appropriation

This appropriation is limited to giving effect to the Tertiary Education Strategy by investing in tertiary education, monitoring and maintaining the Government's ownership interest in tertiary education institutions, and advice and support to Ministers.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation46,91846,91847,163

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective investment in tertiary education and the protection of the Crown's ownership interest in tertiary education institutions.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The overall satisfaction rating given by the Minister for Tertiary Education, Skills and Employment on the Tertiary Education Commission (as per the Common Satisfaction Survey) (see Note 1).

Baseline year7Maintain or increase

Managing the Government's Investment in the Tertiary Education Sector

Payments are made to tertiary education organisations as per the agreed contractual terms and conditions.

100%100%100%

Plans for tertiary education organisations demonstrate evidence of alignment with employer, community and learner needs, and include targets for improving achievement rates for priority groups in the Tertiary Education Strategy.

Revised measureRevised measure100%

Number of tertiary education organisations audited by the Tertiary Education Commission.

60 - 70 audits60 - 70 audits60 - 70 audits

Number of tertiary education organisations that are the subject of a review and/or investigation.

10 - 1510 - 1510 - 15

Ownership Monitoring of Tertiary Education Institutions

Ownership risks are assessed and appropriate mitigation strategies are put in place (see Note 2).

100%100%100%

Tertiary Education and Training Advice

The rating given by the Minister for Tertiary Education, Skills and Employment on the Common Satisfaction Survey question "How satisfied are you that the advice you receive from the Commission meets your needs?" (see Note 1).

New measureNew measure7

Average scores for Tertiary Education Institutions, other Tertiary Education Organisations, and Government partner respondents, respectively, on the question "I trust the Tertiary Education Commission and have confidence in its decisions" in the annual Partner and Provider Survey.

New measureNew measureBaseline year

Note 1 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 2 - Risks are assessed against the gazetted risk criteria which is available on the website: www.tec.govt.nz/Tertiary-Sector/Crown-Interest/Interventions/Risk-assessment/

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Tertiary Education Commission46,80946,80947,054Ongoing

Non-Government Organisations

Maori Education Trust109109109Ongoing

Total

46,918

46,918

47,163

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
International Connections for New Zealanders2016/17750-125-125
Engineering Education to Employment2016/17400400400400-
Share of Costs for Budget 2015 Whole-of-Government Initiatives2015/16(101)(75)(54)(54)(54)
Expanding the Youth Literacy and Numeracy Assessment Tool2014/15185330330330330
Supporting Better Public Services and the Business Growth Agenda within Vote Tertiary Education2013/14411411---
Developing a Youth Option in the Literacy and Numeracy for Adults Assessment Tool2013/14165165165165165
Foundation Focused Training Opportunities2013/146,6616,6616,6616,6616,661

Reasons for Change in Appropriation

The $245,000 increase in this appropriation for 2017/18 is mainly due to a combination of:

  • a transfer from 2014/15 to undertake the periodic assessment of research quality to determine future funding allocations from the Performance-Based Research Fund ($1 million increase), and
  • funding in 2016/17 to support the administration of the Budget 2016 initiative International Connections for New Zealanders, including Centres of Asia-Pacific Excellence ($750,000 decrease).

Centres of Research Excellence (M14)

Scope of Appropriation

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation49,80049,80049,800

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve delivery of high quality research by purchasing cooperative and collaborative research in areas of research strength in the tertiary education sector, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Centres of Research Excellence Annual Reports are reviewed against milestones and key performance indicators set in research plans and meet assessment criteria.

AchievedAchievedAchieved

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Provider2016/17
Final Budgeted
$000
2016/17
Estimated Actual
$000
2017/18
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

Tertiary Education Institution hosts of Centres of Research Excellence (varies between 7-11 during the period)49,80049,80049,8001 January 2021

Total

49,800

49,800

49,800

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Improving the Performance of the Centres of Research Excellence Fund2014/153,1693,1693,1693,1693,169
Establish Additional Centres of Research Excellence2014/1514,94114,94114,94114,94114,941

International Education Programmes (M14)

Scope of Appropriation

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of managing and increasing the flow of international students and promoting international education linkages.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation29,43929,43931,072

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve enhanced social, cultural and economic benefits to New Zealand through New Zealand international education activities.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

The proportion of international students who were satisfied or very satisfied with their overall experience:

  • Secondary schools
New measureNew measure93%
  • Private Training Establishments
New measureNew measure88%
  • English language schools
New measureNew measure89%
  • Institutes of Technology and Polytechnics
New measureNew measure88%
  • Universities.
New measureNew measure90%

Percentage of users that agree Education New Zealand's services and support have added value to their organisation.

More than or equal to 2015/16 resultMore than or equal to 2015/16 resultMore than 2016/17 result

The economic value from New Zealand's international education industry (see Note 1).

New measureNew measureIncrease to $4.5 billion

The economic value of education services that are delivered offshore (see Note 2).

New measureNew measureIncrease to $278 million

Note 1 - The 2025 target is $5 billion (Business Growth Agenda: Leadership Statement for International Education, Goal 1).

Note 2 - The 2025 target is $500 million (Business Growth Agenda: Leadership Statement for International Education, Goal 2).

End of Year Performance Reporting

Performance information for this appropriation will be reported by Education New Zealand in its annual report.

Current and Past Policy Initiatives

Policy InitiativeYear of
First
Impact
2016/17
Final Budgeted
$000
2017/18
Budget
$000
2018/19
Estimated
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
Strengthening the Foundations for Sustainable Growth of International Education2017/18-1,7001,7001,7001,700
International Education Development2015/161,250----
International Education Initiatives2013/1410,00010,00010,00010,00010,000

Reasons for Change in Appropriation

The $1.633 million increase in this appropriation for 2017/18 is mainly due to a $1.700 million per annum baseline funding increase agreed in Budget 2017 to maintain Education New Zealand's level of activity supporting the sustainable growth of international education in New Zealand, including its contribution to regional development.

Tertiary Education Research and Research-Based Teaching (M14)

Scope of Appropriation

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.

Expenses

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation301,500301,500309,000

Components of the Appropriation

2016/172017/18
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Performance-Based Research Fund
  • Quality Evaluation
165,000165,000169,125
  • Research Degree Completions
75,00075,00076,875
  • External Research Income
60,00060,00061,500
Priorities for Focus1,5001,5001,500
Total301,500301,500309,000

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in, or maintain the quality of, research and research-based teaching and learning and to improve investment in research within the tertiary sector.

How Performance will be Assessed and End of Year Reporting Requirements

2016/172017/18
Assessment of PerformanceFinal Budgeted
Standard
Estimated
Actual
Budget
Standard

Research degree completions (measured by Performance-Based Research Fund (PBRF)-eligible research degree completions) (see Note 1).

3,900 ±5% 3,900 ±5%3,900 ±5%

Percentage i