Sensitive Expenditure 

The board ensures that all expenditure of board funds is clearly linked to the business of the school and that no individual, or group of individuals (staff or students), gains unreasonable and/or personal benefit from those funds. 

At times there are expenses which may be considered to be beneficial only to individuals or small groups of individuals, such as travel expenses (especially international travel), or koha, gifts and other payments to individuals. Any such expenditure will be carefully scrutinised by the board before approval and may require appropriate and specific fundraising. The board also refers to its travel policy in considering this expenditure.

Funds raised for specific expenditure which may benefit individuals or groups of individuals are raised with a full understanding of their purpose known to those contributing the funds – such as parents or other funding sources (e.g., charities). The funds raised will cover all costs (including travel and accommodation costs for teachers who may be involved).

Authorising sensitive expenditure

The board requires the principal to take account of the following prior to authorising expenditure which may be beneficial to an individual or group: 

• Would the expenditure benefit student outcomes? 

• Is it the best value for money? 

• Is it in the budget? 

• Could the board justify this expenditure to a taxpayer, parent, or other interested party? 

• How would the public react if this expenditure was reported by the media? 

• Does there appear to be any personal gain from this expenditure? 

• Does this expenditure occur frequently?

All expenditure which is incurred on behalf of individuals or groups of individuals will be fully accounted for and a separate income statement for management reporting purposes showing all funds raised and expenditure incurred will be provided to the board.

Travel Expenditure

The board ensures that travel expenditure incurred by the school is clearly linked to the business of the school. The principal has responsibility for the implementation of the following guidelines:

• any travel expenditure is on the school’s business, and the school obtains an acceptable benefit from the travel when considered against the cost 

• expenses are reimbursed on an actual and reasonable basis 

• staff required to travel on business do not suffer any negative financial effect.

Process for making travel arrangements

• No staff member approves their own travel.

• All booking arrangements for any travel are conducted through the school’s normal purchase procedures.

• Travel bookings are not to be made using manual cheques. 

Travel within New Zealand

• The justification for travel within New Zealand is documented and must relate to school business. Travel within New Zealand is to be authorised on a one-up basis (for example, the principal should authorise any travel by the deputy principal and the board should authorise any travel by the principal).

• All domestic air travel is to be economy class.

International travel

• Any international travel is authorised by the board before it is commenced. A proposal is put to the board detailing the purpose of the trip, the expected benefit to the board which will arise from the trip and an estimate of the costs of the trip. A minute records this process and records the board’s decision.

• At the end of the trip overseas, the traveller prepares a trip report, which details the costs incurred during the trip, activities which took place during the trip and the benefits to the school.

• If a staff member has a travel time without a stopover in excess of 20 hours, a rest period of 24 hours before commencing work is permitted.

Accommodation

• Staff should opt for good but not superior accommodation.

• Staff who stay privately will be reimbursed on production of receipts, for koha or for the cost of a gift given to the people they have stayed with. Prior to travel the staff member should receive authorisation for the value of the intended koha/gift. 

Vehicles

• When using rental cars, staff choose good but not superior model vehicles. 

• Use of private vehicles is approved on a one-up basis and reimbursement is at the rate specified by the Inland Revenue Department.

• If taxis are used, then staff should pay for the taxis out of their own pocket, obtain a receipt, and seek reimbursement as part of an expense claim.

Reimbursement of expenses

• The reimbursement for business related travel expenses is on the basis of actual and reasonable costs. Actual and reasonable expenditure is defined as "the actual cost incurred in the particular circumstance, provided that it is a reasonable minimum charge".

• For travel within New Zealand, actual and reasonable expenses are those incurred above the normal day to day costs.

• All personal expenditure is to be met by the staff member. Examples of this are mini bar purchases, in house movies, laundry, and private phone call charges, which are to be paid separately by the travelling staff member.

• All receipts must be retained and attached to the travel claim. The claim is to be authorised on a one-up basis.

• For expenditure incurred in New Zealand of value greater than $50 (including GST) there should also be a GST invoice to ensure that GST can be reclaimed by the school.

• Authorisation can still be given for expenditure less than $50 where there is no receipt, for example if it is not practical to obtain a receipt or if the receipt is lost. The expenditure can be reimbursed provided there is no doubt about its nature or the reasons for it.

Discretionary travel benefits

• Staff must travel by the most direct route unless scheduling dictates otherwise.

• The school does not meet expenses incurred on behalf of a spouse or travelling companion. In the event of a person travelling with an employee, a reconciliation of expenses should clearly demonstrate that the school did in no way incur additional expenditure.

Entertainment Expenditure

The board ensures that expenditure on entertainment incurred by the school must clearly be linked to the business of the school and has delegated responsibility to the principal, assisted by administration staff, for the management of this expenditure.

Purposes of Entertainment

1. Entertainment expenditure in general will be for the following purposes:

*    Building relationships and goodwill

*    Representation of the school in a social situation

*    Hospitality provided in the course of school business to external parties

*    Internal social functions

2. The purpose of all purchases should be transparent and the amount expended able to be demonstrated as reasonable and appropriate.

School Events and Staff Meetings

1. This includes conferences, seminars, workshops, training courses and meetings

2. When deciding upon a venue teachers should take into account location, accommodation standard and tariff rates. They should give due consideration to the nature of the event, total cost, expectations of participants and their home location.

3. When deciding upon catering, teachers should take into account the nature of the event and the quality of food required. Lunch should only be provided for staff meetings where it is not possible to arrange the meeting for a period which avoids the lunch break.

Dining Out/ Catering In

1. When required to dine away or bring caterers in for a school event and eating is part of this then the school will reimburse for the following:

*    Breakfast up to $25

*    Morning/afternoon teas up to $15

*    Lunch up to $40

*    Main meal up to $65

2. The above expenditure is to a maximum daily allowance of $90. Any expenses over and above that are to be dealt with by the employee.

Alcohol purchases

The school DOES NOT fund alcoholic drinks as part of entertainment purposes.

 Reviewed Term 1, 2023