National Report on Schooling in Australia 2011

Funding Australia’s schools

8.6 Overview of My School financial information

Important note: As indicated below there are key differences between My School finance data and National Schools Statistics Collection (NSSC) (Finance) and other finance data reported in Parts 8.1–8.5 of this report. The income-based finance data from My School should not be compared to the expenditure-based finance data quoted in previous subsections.

My School financial reporting

In 2010 Education Ministers approved the publication of school financial information on a school by school basis on the My School website. This section of the report provides high-level profiles of recurrent funding information for the 2010 calendar year based on school financial details published on the My School website in March 2012.

My School financial reporting is designed to provide parents, teachers and governments with a clear picture of the resources provided to schools to support the education of their students.

The key financial measure reported on My School is school Net Recurrent Income and Net Recurrent Income per Student (NRIPS). Government and non-government schools and systems that allocate some of their gross income to capital purposes have these amounts shown and deducted from their gross income. Gross income that is allocated to capital expenses in the reporting year is included in the school’s capital expenditure report.

The methodology and other associated material related to My School finance data classification may be obtained from the My School website.

My School finance data were developed to show the income available to a school, over a calendar year (not financial year), to deliver education services to students. My School income data include private funding that supports a school but exclude user cost of capital (a notional opportunity cost), payroll tax and the cost of transporting students to and from school.

In addition, it should be noted that private funding, as reported on My School for the government sector, is excluded from the NSSC (Finance) collection whereas payroll tax, student transport and user cost of capital are included in NSSC expenditure information. Also, the NSSC finance data are reported on a financial year basis. Therefore recurrent income information contained within this section and recurrent expenditure in the preceding sections are not directly comparable.

For government and system schools, where a parent organisation other than the school itself (such as a district, region or state office) incurs expenditure and manages finances for the school, each school’s income is composed of all such funds used for and on behalf of the school plus any cash income received at the school level, as if each school were accounted for as a stand-alone entity. This approach is consistent with the principles of Australian Accounting Standard AASB 1004 – Contributions.

It also is important to note that the definitions and counting rules for schools and enrolments used for the My School website differ, in some respects, to those of the MCEECDYA National Schools Statistics Collection (Non-Finance)¹ used for the reporting of school and student data elsewhere in this report.

This section provides summarised NRIPS information based on school size, school location² and school sector derived from My School individual school level information.


Net recurrent income per student and school size

My School financial information indicates that generally, the larger the size of the school, the lower is its NRIPS. This is to be expected, due to economies of scale in larger schools where fixed and less variable funding components are spread over a larger student base, reducing NRIPS. There are also demonstrated relationships between remoteness and smaller school size, meaning that smaller schools are more likely to be in non-metropolitan areas and have access to needs-based funding support.

The graphs at Figure 8.7 below show that school size exerts a determining influence on a school’s recurrent income. Generally, the lower a school’s enrolment, the higher its NRIPS.

The national median school NRIPS in 2010 was $11,349 and the median school full-time equivalent (FTE) funded enrolment was 276, based on 2010 FTE funded enrolments reported on My School.

As school size progressively increases above the median school size, the NRIPS progressively decreases due to the impact of key factors such as economies of scale and location. As school size decreases below the median school size, per student income rises markedly due to factors such as diseconomies of small scale and remote and very remote locations.

Figure 8.7 Distribution of school net recurrent income per student by school size, school type and school location
(FTE funded enrolments), 2010

Figure 8.7 1 - 2011


Figure 8.7 2 - 2011
Source: ACARA

Net recurrent income per student and school location

Table 8.11 Median net recurrent income per student by school location, 2010

Location

Metropolitan

Provincial

Remote

Very Remote

All
locations

2010 median NRIPS ($)

10,355

12,236

18,914

24,631

11,349

2010 median FTE funded enrolments

381

165

77

59

276

Source: ACARA

Table 8.11 above and Figure 8.8 below outline median school size across metropolitan, provincial, remote and very remote locations. School size is smallest in very remote and remote locations.

Based on individual school data reported on My School, median school size is 59 in very remote and 77 in remote locations while being highest at 381 in metropolitan schools. Median NRIPS is correspondingly high for smaller size schools, at $24,631 in very remote and $18,914 in remote locations. Median NRIPS is lowest at $10,355 in metropolitan schools.

Figure 8.8Distribution of school net recurrent income per student by school size, 2010

Figure 8.8 - 2011

Source: ACARA

Net recurrent income per student and school type

Table 8.12 Median net recurrent income per student by school type, 2010

Primary

Secondary

Combined

Special

All school types

2010 median NRIPS ($)

10,138

12,651

13,831

43,447

11,349

2010 median FTE funded enrolments

230

730

376

53

276


Source:
ACARA

Figure 8.7 and Table 8.12 above also reveal the layered nature of NRIPS according to school type, with primary schools having the lowest levels of NRIPS, followed by secondary, then combined and finally special schools. Table 8.12 provides details of the number and median NRIPS of schools by type.

Net recurrent income per student and school sector

Figure 8.9 Distribution of school net recurrent income per student for school sectors by school location and type, 2010
Figure 8.9 1 - 2011
Figure 8.9 2 - 2011
Source: ACARA

The charts at Figure 8.9 highlight the relatively high costs of operating remote and very remote schools, special schools and government combined schools. However, it should be noted that, within the government sector, combined schools are mainly established only in remote or sparsely populated areas and that their high cost of operation is related to their size and location.

Across locations, the government sector has the highest median NRIPS in provincial and remote locations. Schools in the independent sector have the highest median NRIPS in metropolitan and very remote locations.


¹ The MCEECDYA National Schools Statistics Collection (NSSC) (Non-Finance) is published by the Australian Bureau of Statistics (ABS) as Cat. No. 4221.0, Schools, Australia and is the source of school number and student enrolment data reported elsewhere in this report, including in the Additional Statistics, and in previous editions of the National Report on Schooling in Australia. Data included in this section on a per school or per student basis cannot be directly compared to data reported elsewhere in this or previous reports. Further information on the NSSC is included in Part 10: Glossary. ² According to the MCEECDYA Schools Geographic Location Classification Scheme.