Vote Education - Supplementary Estimates 2013/14

Supplementary Estimates of Appropriations#

Details of Appropriations#

Annual and Permanent Appropriations

Details of Projected Movements in Departmental Net Assets#

Ministry of Education

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

1.4 - Reconciliation of Changes in Appropriation Structure

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

Mapping the Layout of the 2013/14 Supplementary Estimates to the Layout of the 2013/14 Estimates

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Interventions for Target Student Groups (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $4.867 million to $275.037 million mainly owing to a combination of:

• provision through Achievement 2013 for an engagement strategy and to provide support to individual students who might not otherwise achieve NCEA Level 2 ($1.405 million increase)
• transfer from 2012/13 owing to delays in the project to replace the Education Sector Authorisation and Authentication software after changes in the ownership of the product that was to be used ($1 million increase)
• transfers from non-departmental other expense Special Needs Support for additional work arising from the transformation of the Resource Teachers Learning and Behaviour Service ($600,000 increase) and to cover the cost of resources provided to teachers under the Incredible Years programme ($500,000 increase)
• ongoing implementation of the Integrated Change Management Programme originally planned for 2012/13 ($510,000 increase)
• settlement of the Field Staff Collective Agreement ($201,000 increase)
• transfer from 2012/13 for development of a revised qualification/training programme for Advisors of Deaf Children ($200,000 increase), and
• transfer from non-departmental other expense Secondary Education for implementation of the National Mentoring Service to support Maori and Pasifika learners ($200,000 increase).

Policy Advice (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $57,000 to $11.776 million owing to minor increases for the Early Learning Taskforce (transferred from departmental output expense Support and Resources for the Community) and the Integrated Change Management Programme carried forward from 2012/13 ($57,000 increase).

School Property Portfolio Management (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $39.410 million to $1,463.012 million mainly owing to a combination of:

• increased capital charge related to revaluation of the property portfolio from 2012/13 ($15.602 million increase)
• legal and other costs associated with weather-tightness issues surrounding negligent design, construction, management certification practices and product liability affecting school buildings ($13.348 million increase)
• increased costs of programme management and detailed engineering evaluations for the schools infrastructure renewal programme funded by adjustments in out years ($10.500 million increase)
• transfer from non-departmental other expense Primary Education for unitary charge and finance costs relating to the construction of two new schools at Hobsonville Point under the Public Private Partnerships arrangement ($1.145 million increase)
• funding for three new primary schools and provision for additional classrooms to meet roll-growth pressures ($1 million increase)
• transfer to 2014/15 for costs associated with the programme to improve the Ministry's asset management maturity involving development of the modern learning environment and asset condition frameworks and corresponding assessment methodologies ($1.789 million decrease), and
• transfer funds relating to the schools network upgrade project to Departmental Net Assets ($1.076 million decrease).

Strategic Leadership in the Sector (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $6.915 million to $33.876 million mainly owing to:

• funding carried forward from 2012/13 for a value-for-money programme ($3.400 million increase)
• hosting the International Teaching Summit and associated events ($2.160 million increase), and
• supporting transition to a new professional body for teachers ($594,000 increase).

Support and Resources for Education Providers (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $20.040 million to $112.842 million mainly owing to:

• additional funding for remediation, investment in the sector (including eliminating the transaction backlog), future-focused improvements and increased operational expenditure related to Novopay ($26.547 million increase)
• transfer from operating to capital funding to complete development of the Progress and Consistency Tool ($3 million decrease)
• delays with the Learning with Digital Technologies Programme developing materials for the managed network mainly because of the network taking longer than expected to be established ($1.683 million decrease)
• other consequential delays with the transition of schools to the managed network resulting in some work being pushed back to 2014/15, as well as the National Education Network Trial continuing past 30 June ($1.008 million decrease), and

• some providers taking longer than expected to modify their products to work with the Early Learning Information System resulting in some expenditure being delayed until 2014/15 and some reallocations to other activities ($841,000 decrease).

Support and Resources for Teachers (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation decreased by $11.254 million to $68.214 million mainly owing to a combination of:

• provision for the Mutukaroa initiative to accelerate learning progress and achievement for students in years 1 to 3 ($1.125 million increase)
• implementation of Ka Hikitia - Accelerating Success 2013-2017 and the Pasifika Education Plan 2013-2017, including funds carried over from 2012/13 ($1.260 million increase)
• provision for accelerating NCEA Level 2 achievement as part of the implementation of the Youth Guarantee ($1 million increase)
• transfer of funding to departmental output expense Support and Resources for Education Providers for additional operational costs of Novopay ($9.199 million decrease)

• transfers to subsequent years after delays in development of the Progress and Consistency Tool ($3.700 million decrease), and
• delays with alignment of achievement standards to Te Marautanga o Aotearoa (the Maori-medium curriculum) pushing some costs out to 2015/16 ($1.580 million decrease).

Support and Resources for the Community (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $1.362 million to $14.543 million mainly owing to:

• implementation of Ka Hikitia - Accelerating Success 2013-2017 and the Pacifika Education Plan 2013-2017 ($1.090 million increase), and
• a transfer from departmental output expense Support and Resources for Education Providers to support the Early Learning Taskforce to increase early childhood education participation ($242,000 increase).

2.3 - Departmental Capital Expenditure and Capital Injections

Ministry of Education - Capital Expenditure PLA (M26)

Scope of Appropriation

Capital Expenditure

Capital Injections and Movements in Departmental Net Assets

Ministry of Education

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Curriculum Support (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.570 million to $59.039 million for 2013/14 owing to:

• a transfer of funding to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($1.025 million decrease)
• a reduction in funding for other education priorities ($1 million decrease)
• a transfer to non-departmental other expense Special Needs Support to consolidate all resourcing provided to Blind and Low Vision Education Network, New Zealand under a single appropriation ($365,000 decrease), and
• a transfer to Vote Communications to support enhanced connectivity for the three schools on the Chatham Islands ($180,000 decrease).

Professional Development and Support (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.450 million to $94.909 million for 2013/14 owing to a combination of:

• a reduction in funding for other education priorities ($3.300 million decrease)
• a transfer to 2014/15 and 2015/16 for Building on Success after delays in finalising arrangements with the consortium of providers for this programme, which is intended to generate equity and accelerate achievement of Maori learners in secondary education ($400,000 decrease), and
• lifting student achievement in mathematics/pangarau and science/putaiao through extending the Accelerated Learning in Maths programme ($500,000 increase) and developing Communities of Mathematical Inquiry ($750,000 increase).

Provision of Information and Advisory Services (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $200,000 to $23.759 million for 2013/14 to fund a self-assessment tool being hosted online by Careers New Zealand.

Quality Assurance (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $391,000 to $4.761 million for 2013/14 owing to the administration of the Code of Practice for the Pastoral Care of International Students transferring from the Ministry of Education (Vote Tertiary Education, departmental output expense Strategic Leadership in the Tertiary System) to the New Zealand Qualifications Authority.

School Managed Network Funding (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $5.400 million to $6.100 million for 2013/14 owing to delays in rolling out the managed network. To fund the increased number of schools transitioning to the network in subsequent years, funds have been transferred in 2015/16 ($3 million) and 2016/17 ($2.400 million).

School Transport (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.200 million to $176.383 million for 2013/14 owing to a combination of:

• lower than expected index-based price adjustments to contract prices ($4.118 million decrease)
• other adjustments, including updated route payment information for directly resourced schools, additional kura, the impact of projected roll growth on conveyance allowances and the impact of actual rates paid ($1.373 million decrease), and
• increased costs of transport for students with special education needs, including additional kilometres travelled each day, transition to new operators in several locations and provision for additional clusters since January 2013 ($3.291 million increase).

Supporting Parenting (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $592,000 to $6.268 million for 2013/14. The increase mainly relates to:

• a provision for improving literacy and numeracy outcomes for families with children under five ($350,000 increase)
• supporting development of strong relationships between parties connected to a child's life, including whanau, early childhood education services and schools ($420,000 increase), and
• a transfer to Early Childhood Education Community Participation projects under non-departmental other expense Early Childhood Education ($140,000 decrease).

3.2 - Non-Departmental Benefits and Other Unrequited Expenses

Boarding Allowances (M26)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This new appropriation of $5.660 million was established from 1 January 2014, funded by transfers from Benefits and Other Unrequited Expenses appropriations Boarding Allowances and Bursaries ($4.035 million) and Mapihi Pounamu ($1.625 million).

Conditions on Use of Appropriation

Boarding Allowances and Bursaries (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $5.215 million to $2.854 million for 2013/14 owing to a transfer to a new Benefits and Other Unrequited Expenses appropriation Boarding Allowances from 1 January 2014 ($4.035 million decrease) and a lower than expected demand ($1.180 million decrease).

This appropriation will be discontinued after the 2013/14 year.

Home Schooling Allowances (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $695,000 to $4.882 million for 2013/14 owing to a lower than expected level of payments to The Correspondence School supervisors.

Mapihi Pounamu (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.625 million to $1.625 million for 2013/14 owing to a transfer to a new Benefits and Other Unrequited Expenses appropriation Boarding Allowances from 1 January 2014.

This appropriation will be discontinued after the 2013/14 year.

National Study Awards (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.657 million to $19.817 million for 2013/14 owing to a combination of:

• a transfer of funding to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($1.500 million decrease)
• a reduction in funding for other education priorities ($273,000 decrease), and
• settlement of various collective agreements covering teachers, principals and others ($116,000 increase).

Puawaitanga Scholarships (M26)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This new appropriation of $576,000 (funded by a transfer from non-departmental other expense Schooling Improvement) was established from 1 January 2014 to provide opportunities for 90 young learners with potential to learn and live in a rich cultural boarding environment.

Conditions on Use of Appropriation

Teacher Trainee Scholarships (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $3.027 million to $825,000 for 2013/14 mainly owing to a transfer of funding to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($2.700 million decrease).

3.4 - Non-Departmental Other Expenses

Early Childhood Education (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $34.528 million to $1,515.337 million for 2013/14 mainly owing to a combination of:

• additional forecasted funded hours equivalent reflecting latest information on actual hours used, changes in the distribution of hours across funding categories, as well as for updated population and labour market projections ($33.880 million increase)
• extension from 2012/13 to 2013/14 of initial projects under targeted participation initiatives to increase demand for early childhood education services in priority communities ($2.400 million increase)
• provision for the flow-on from the settlement of the primary teachers' collective agreement to kindergarten teachers ($1.698 million increase)
• development of Maori medium teaching resources ($1.504 million increase)
• provision for programmes to engage and target vulnerable Maori children under the age of three and their whanau in high quality, culturally relevant early childhood education originally planned for 2012/13 ($700,000 increase)
• additional funding for Early Childhood Education Community Participation projects transferred from non-departmental output expense Supporting Parenting ($140,000 increase) and non-departmental other expense Support for Early Childhood Education Providers ($130,000 increase)
• deferring Early Childhood Education Outcomes-based Purchase Agreements ($4 million decrease)
• lower than expected average price of funded child hours ($1.374 million decrease), and
• fewer full-time equivalent students forecast for The Correspondence School than expected ($487,000 decrease).

Integrated Schools Property (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.245 million to $57.702 million for 2013/14 owing to the network upgrade of integrated schools progressing more slowly than expected resulting in a transfer of funding to 2014/15 ($2.245 million decrease).

Primary Education (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $13.773 million to $2,769.653 million for 2013/14. The increase is mainly owing to a combination of:

• settlement of Teacher and Principal Collective Agreements but mainly related to primary teachers ($22.688 million increase)
• a redistribution of salaries funding from other expense appropriations Secondary Education and Special Needs Support ($5.745 million increase)
• establishment of the first tranche of Partnership Schools/Kura Hourua ($1.252 million increase)
• the impact of lower than expected projections for national school rolls on operations grants and teacher funding, as well as other adjustments to forecast assumptions ($12.235 million decrease)
• a transfer of funding to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($1.823 million decrease)
• transfer to departmental output expense School Property Portfolio Management for unitary charge and finance costs relating to the construction of two new schools at Hobsonville Point under the Public Private Partnerships arrangement ($1.145 million decrease), and
• savings in the School Classification, Integration and Closure Contingency funding ($710,000 decrease).

School Transport Bus Controllers (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $53,000 to $645,000 for 2013/14 owing to reduced estimates of entitlements for bus controllers.

Schooling Improvement (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $2.222 million to $7.462 million for 2013/14 owing to:

• the transfer of the Community Based Language Initiatives programme to Vote Maori Affairs to be managed by Te Taura Whiri i te Reo Maori in conjunction with other programmes ($1.646 million decrease), and
• a transfer to a new benefits or related expenses appropriation Puawaitanga Scholarships from 1 January 2014 ($576,000 decrease).

Secondary Education (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $28.040 million to $2,027.064 million for 2013/14 owing to a combination of:

• impact of higher than expected national school roll projections on teacher salaries and school operations grants ($20.018 million increase)
• establishment of the first tranche of Kura Hourua / Partnership Schools ($7.978 million increase)
• settlement of Teacher and Principal Collective Agreements but mainly related to primary teachers ($2.559 million increase)
• a redistribution of salaries funding to other expense appropriation Primary Education ($1.605 million decrease), and
• savings in the School Classification, Integration and Closure Contingency funding ($910,000 decrease).

Special Needs Support (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $729,000 to $335.771 million for 2013/14 owing to a combination of:

• the impact of higher than expected projections for teacher and principal salary rates as well as other adjustments to forecast assumptions ($4.859 million increase)
• settlement of Teacher and Principal Collective Agreements but mainly related to primary teachers ($995,000 increase)
• draw down from the contingency for Accelerating Education for Priority Learners that supports a critical period of development for children (birth to eight years old) and focuses on supporting a successful journey through education ($450,000 increase)
• a transfer from non-departmental output expense Curriculum Support to consolidate all resourcing provided to Blind and Low Vision Education Network, New Zealand under a single appropriation ($365,000 increase)
• a redistribution of salaries funding to other expense appropriation Primary Education ($4.140 million decrease)
• transfers to departmental output expense Interventions for Target Student Groups for additional work arising from the transformation of the Resource Teachers Learning and Behaviour Service ($600,000 decrease)
• the cost of resources provided to teachers under the Incredible Years programme transferred to departmental output expense Interventions for Target Student Groups ($500,000 decrease)
• savings in the School Classification, Integration and Closure Contingency funding ($400,000 decrease), and
• a transfer of funding to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($300,000 decrease).

Support for Early Childhood Education Providers (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.430 million to $18.452 million for 2013/14 owing to:

• savings in the Targeted Assistance for Participation programme ($900,000 decrease)

• savings in the Canterbury Renewal Early Childhood Education Consultation ($400,000 decrease), and
• a transfer to Early Childhood Education Community Participation projects under non-departmental other expense Early Childhood Education ($130,000 decrease).

3.5 - Non-Departmental Capital Expenditure

Property Disposal Incentives Scheme (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $949,000 to $2.562 million for 2013/14 owing to changes in the expected timing of property sales.

School Support Project (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation was transferred entirely to departmental output expense Support and Resources for Education Providers for additional costs related to Novopay ($1.880 million decrease).

Schools Furniture and Equipment (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $28,000 to $20.325 million for 2013/14 owing to a combination of:

• funding for three new primary schools and new classrooms to accommodate roll-growth pressures ($1.628 million increase), and
• a transfer to 2014/15 related to the School Network Upgrade Project after slower than expected progress with upgrading wiring infrastructure and internet data networks at integrated schools ($1.600 million decrease).