Estimates of appropriations

Vote Education Review Office - Education Sector - Estimates 2017/18

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

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.

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.