So just to get this straight:
The school don't want parents to teach their children any new sound/spelling correspondences BUT they are happy for the children to read library books, home books and recipes. Presumably they're happy to agree to this because children certainly wouldn't meet any new correspondences within a library or home book .... oh wait 
If you don't teach your DD new phonic correspondences as and when she meets them then she will either work out the code herself, or she'll start memorising words by sight. Given you mentioned her excitement at the boy/buoy discovery then I'm thinking she's working it out with your support - long may that continue.
In my view a school that sends virtually all children from reception into year 1 on red and yellow bands is engaging in some sort of manipulation, because that just doesn't represent the usual spread of bands, which is normally very wide.
Here is a link to the RWI / ORT correlation chart. Pink equates to green ORT, however you have to remember that ALL old style look and say ORT books, including the very first pink ones, will have correspondences that your DD may not have learnt yet.
If the school don't want parents teaching unknown phonics at home and/or children memorising words then they shouldn't send home look and say style books until the children have completed their RWI programme. For most phonics programmes this is around orange ORT, however RWI goes beyond this point.
If you are interested in your DD reading other ORT books, over the summer holidays for example, then Oxford Owls has a large banded selection of free e-books (including ones that follow a phonics method).