Criterion GMA308
An annual budget guides financial expenditure.
Note: this criterion only applies in respect of the Director of Regulation's assessment of probationary applications where the applicant does not hold a current licence and applications to amend a licence where the different legal entity does not hold a current licence.
Documentation required:
An annual budget setting out the service’s estimated revenue and expenses for the year. The budget includes at least:
staffing costs, including leave entitlements;
professional development costs;
equipment and material costs for the ongoing purchase of new equipment and consumable materials; and
provision for operational costs and maintenance of the premises as appropriate.
Guidance
How to show you are complying
You need an annual budget to cover your first year of running your service if either of these applies to you:
you’re applying for a probationary licence and do not currently run a fully licensed service elsewhere
you’re a new service provider and haven't held a licence before.
Your annual budget needs to outline your service’s estimated costs and revenue for the year ahead. It should clearly state costs for staffing, professional development, equipment and materials as well as operational and maintenance costs you anticipate.
It should also include your expected revenue from different funding sources. For example, income from fees, donations and any optional charges from parents, Ministry of Education subsidy funding, and all other sources of expected income.
When assessing whether you comply with GMA308
Questions we are likely to ask
If your annual budget is unclear or something seems to be missing, we will ask for more detail.
We are likely to look at, measure or count
Look to see the annual budget covers the next 12 months of the service’s operations.
Check the annual budget sets out your service’s estimated income and expenses for the year.
Check the budget accounts for costs associated with staffing, professional development, equipment and materials as well as operational and maintenance costs you anticipate.
We are likely to request
An annual budget guiding your service’s first year of operations.
The tools below are here to support you, but you do not have to use them. You can use other tools or methods that work better for your service.
If you are preparing your annual budget with support from the hospital’s Business Analyst or equivalent, you may find it useful to share the requirements of the ECE Funding Handbook.
An annual budget helps plan for the year by showing how much money you need to run the service and respond to any unexpected costs. A budget can support good decision-making and provides a strong foundation for good governance and management.
Doing more than the minimum can shape better outcomes for children. Here are some ideas or examples you might like to consider.
It’s a good idea for hospital managers to involve the ECE service in any budget planning that affects them, and senior staff can help show how Ministry of Education funding is being used.
Developing your annual budget and annual plan together, can be useful as they both guide the service’s operations and can help you stay on track.