Appendix 3: Breaches of laws and regulations

We ask our auditors to consider whether schools are complying with particular requirements of the Education Act 1989 and Crown Entities Act 2004, which relate to financial reporting. This appendix sets out those schools where auditors identified breaches of these legislative requirements in the school's 2017 financial statements.

References are to the Education Act 1989 unless stated.

The asterisk indicates schools that also breached laws in the same area in the previous year.

Borrowing – Clause 29 of Schedule 6

We also made reference to breaches of the borrowing limit in the audit reports for Northland College and Hastings Intermediate School for the year ending 31 December 2016.

Payments outside the Education Service Payroll – section 89(2)

Loans to staff – Clause 28 of Schedule 6

Investments – Clause 28 of Schedule 6

We also made reference to investments held by Timaru Boys' High School without approval in the audit reports for the school for the years ending 31 December 2015 and 2016.

Conflict of interest – section 103 and clause 40(8)(9)(10) of Schedule 6 [clause 8(8) of Schedule 6]

Banking arrangements (section 158 of the Crown Entities Act 2004)

We also made reference to breaches of banking arrangements in the audit report of Saint Joseph's School (Upper Hutt) for the year ending 31 December 2016.

Other breaches of legislation