An accounting and record-keeping principle that recognises costs when incurred and income when earned, regardless of when the cash changes hands.

A liability for goods and services received, but not yet paid for.

An independent examination of the school board's financial records, transactions, and internal controls by a certified public accountant (CPA) or external auditing firm to provide assurance on the accuracy and fairness of the financial statements.

The total depreciation charged to an asset since its purchase or creation. This will be the sum of the depreciation expense charge to an asset each year.

A balance sheet is a financial statement that provides a snapshot of your school's financial position at a specific point in time. It shows what your school owns (assets), what it owes (liabilities), and the ownership interest remaining for the school (equity). It's like a financial report card that helps you understand your school's financial health and make informed decisions about its finances.

A budget is a financial plan that outlines a school's expected income and expenses over a specific period, typically a year. It helps the school board allocate resources effectively by estimating how much money will be coming in and how it will be spent on various activities, programmes, and projects. Essentially, a budget serves as a roadmap for financial decision-making, ensuring that your school's financial resources are managed wisely and in alignment with its goals and priorities.

People or organisations which have provided goods or services to the school and who have not yet been paid, (i.e the school owes them money)

The value of the owner's investment in an organisation, calculated as the organisation's assets less its liabilities. For schools this represents the built up reserves from prior year surpluses 

Used to determine a school's level of equity funding, EQI replaces the socioeconomic decile system which was phased out from January 2023.

People or organisations that have received goods or services to the school and have not yet paid (i.e they owe the school money).

When a school receives less income than it has paid in expenses, it makes a "deficit". In companies this is known as a "loss".

Depreciation refers to the decrease in value of an asset over time due to factors such as wear and tear or usage. It is calculated by spreading the cost of the asset over its expected useful life and is recorded as a non-cash expense in the profit and loss statement.

An asset with a life of greater than one year. Most schools set a minimum value below which items are expensed rather than recorded as fixed assets. Commonly this is $500 or $1,000.

A liability is any amount the school owes—such as unpaid bills, staff entitlements, or loans—that must be paid in the future.

The money the board receives from the Government to implement the goals of the school's charter and to pay for the running of the school. This is received quarterly - in Jan, Apr, Jul and Oct.

A financial statement that shows all cash received and all cash paid by a school over a financial year. 

A financial statement that shows the income and expenditure of a school over a financial year and whether they have made a surplus or deficit for that period.

When a school receives more income than it has paid in expenses, it makes a 'surplus'. In companies this is known as a "profit".

This is the amount that a school needs to pay for its day-to-day operations. It is calculated by subtracting 'current liabilities' from 'current assets'. The amount remaining is the money available to cover short-term expenses and debts.

The 5-year (Property) agreement provides a Board of Trustees with a capital funding budget to use over a 5-year period as part of the 10YPP process. The funding can only be used to upgrade, modernise or replace existing property, or for fencing or landscaping.

All state schools must have a 10-Year Property Plan (10YPP), which sets out a schedule of work over a 10-year period. The plan helps ensure that school property is well maintained to an acceptable standard and provides the correct amount of space. It must be prepared by a Ministry-approved 10YPP property consultant and approved by the Board.