Finance Update – May 2023

Bank Feeds

From 15^th May, new bank feeds from BNZ will all need to be set up and connected online in Xero and paper forms will no longer be accepted.  On 15^th August 2023, Xero’s existing BNZ bank feed will be disconnected. Between 29^th May and 14^th August, all existing BNZ bank feeds must be switched to the new BNZ feed.  Switching should take less than five minutes. You’ll receive instructions for connecting new and switching existing BNZ bank feeds in the next Bulletin.

Donations vs Fees

IRD have provided an update on payments made by parents to childcare centres and distinguishing between a donation and a fee. Goods and Services Tax – Payments made by parents to childcare centres (ird.govt.nz).  The key point for Playcentres is that any amount where there is an obligation to pay or where the parent will gain something through the payment, is not a donation.  Donations should not be invoiced, as that gives the appearance of an obligation.

Equity Funding

A reminder that, if your Centre received Equity Funding last year, information on how it was spent was due to be provided by 30^th April.  Please fill in the online form.