Single-theme audit program
Learn how the NSW Education Standards Authority’s single-theme audit program works, about the current theme, how schools are selected and what to expect during the audit process.
Key information
- The new 2026 audit theme focuses on significant payments made by the schools for third-party service contracts.
- Schools are selected at random, not because of any concern or identified compliance issue.
- NESA covers the costs of audits conducted under the program.
About the single-theme audit program
NESA conducts audits as part of its regulatory assurance activities to ensure NSW non-government schools receiving financial assistance meet not for profit requirements.
Audits support:
- transparency
- public confidence
- early identification of financial risks across the non-government school sector.
The single-theme audit program focuses on 1 identified area of risk at a time.
This approach:
- makes audits clearer and more consistent
- reduces the administrative burden on schools.
The Non-government Schools Not-for-profit Advisory Committee provides advice to NESA in delivering this program.
Current single-theme audit focus
The current single-theme audit focuses on significant payments made by the schools for third-party service contracts within the areas of:
- construction
- security
- information and communications technology (ITC)
- cleaning.
To comply with not for profit requirements, schools must ensure payments for these services are:
- for the operation of the school
- not above reasonable market value (RMV).
How the program works
NESA identifies a theme
The single theme is based on current and emerging risks.
Schools are randomly selected
Selection does not indicate any concern or identified compliance issue.
NESA appoints auditors
Auditors are independent, ensuring the process is fair, transparent and consistent.
NESA notifies schools
If your school is selected, NESA will notify the principal and proprietor in writing via a directions letter. The letter will outline the:
- purpose of the audit
- audit theme
- expected timeframes
- information and documentation required from the school.
Audits are conducted
Independent auditors work directly with the school to review the documents provided. They may conduct a site visit and may request follow up information if required.
Audit outcomes are finalised
Auditors provide schools with their findings. Schools have an opportunity to provide feedback or seek clarification before the audit reports are finalised.
While the audit focuses on a specific theme, the audit report may identify broader risk areas that a school may wish to manage.
NESA writes to the school at the conclusion of the audit to confirm the outcome and outline any next steps, where applicable.
Authority to conduct audits
NESA conducts audits as the Minister’s delegate under Section 83I of the Act.
Support and contact
For any questions regarding the single-theme audit program please contact the Regulation of Non-Government School Funding team.