NSW Non-government Schools Not For Profit Guidelines

Part C2: Regulatory approach – Review of Advisory Committee recommendations

Part C summary

NESA takes a risk-based and outcomes-focused approach to monitoring compliance, recognising that most schools meet the not for profit requirements of the Education Act. The focus is on supporting schools and proprietors to meet their obligations through self-directed compliance. Regulatory action is reserved for significant or systemic for profit activity. Where concerns arise, NESA may respond through education, audits, investigations or formal directions. Confirmed breaches can result in a school being declared non-compliant or operating for profit, which may lead to NSW funding being suspended, reduced, made subject to conditions, or recovered. Schools are given opportunities to respond and may seek internal or external review before final decisions are made.

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Once the Advisory Committee has considered the details of a matter, including any information that is provided by the school in relation to the matter, a proprietor/school will be provided with an ‘outcome of Section 83C review’ letter.

This letter includes:

the outcome of the investigation
the proposed recommendation of the Advisory Committee. This may include recommending that:
- a school is/was a for profit school and that the school should be declared for profit (including the basis of the breach in relation to any finding)
- a school is/was a non-compliant school and should be declared non-compliant (including the basis of the breach in relation to any finding). Any recommendation that a school is a non-compliant school may also include a recommendation that the Minister reduce, suspend or impose conditions on the provision of funding
- no further action should be undertaken in relation to some, or all of the matters being considered in a particular case
a ‘detailed minute’ that sets out the allegation(s) upheld, and the information considered by the Advisory Committee in upholding those allegations
advice and forms for the school to seek an internal review of the Advisory Committee’s findings and proposed recommendations.

C2.1 Internal review

Proprietors/schools may decide to seek an internal review of the Advisory Committee’s recommendation in relation to a school compliance matter. If a request for an internal review is made, a suitably qualified internal reviewer will be appointed to reassess the matter from the perspective of the Advisory Committee. The internal reviewer may ask for further information from the proprietor/school or NESA to support the review of the decision. The internal reviewer may uphold, set aside, or vary the recommendation. The internal reviewer is an independent person not involved in the original decision.

Schools have 28 days from the date the letter is issued to seek an internal review.

C2.2 Administrative (external) review

Before the Minister declares that a school operates for profit (or has operated for profit) or is (or was) a non-compliant school, NESA* will issue a written notice to the proprietor/school (on delegation from the Minister) setting out the relevant recommendation of the Advisory Committee (and/or the Internal Reviewer if the proprietor/school has sought an Internal Review).
This notice includes:

the recommendation of the Advisory Committee or Internal Reviewer
advice on how to seek an external review of the Advisory Committee’s recommendation in the NSW Civil and Administrative Tribunal (Tribunal).

Schools have 30 days from the date the notice is issued to seek an external review.

*Note: This is a power of the Minister under the Education Act that has been delegated to NESA.

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