Objective | Our objective was to determine if the processes for awarding the first privately financed schools contracts were adequate to maximise the potential for value for money. |
| Our aim was to not duplicate other work, such as the agency's own post implementation review, but focus on the potential for such partnerships to deliver better value for money (in terms of cost, quality and risk) than traditional public sector delivery models. |
Scope and focus | The audit scope and focus involved the Department of Education and Training's New Schools Privately Financed Project - specifically the work leading up to the award of the first contract for 9 schools, the experience with that contract, the experience of similar work delivered through traditional public sector delivery, and the work leading up to the second contract for 9 schools. Other agencies included NSW Treasury and the Department of Commerce. |
| The audit did not seek to: ■ duplicate internal reviews already conducted by the agencies in relation to this topic ■ question the merits of Government policy objectives ■ separately review the probity arrangements. |
Criteria | We looked to see whether: ■ there was a clear understanding of how the DET chose this project ahead of other possible uses of its resources and what its objectives were in doing this ■ alternative delivery options had been identified and their costs and benefits properly evaluated including alternative financing options ■ the processes for awarding the first privately financed partnership schools contract were sufficiently competitive and transparent ■ DET properly evaluated all aspects of the bids received and then chose as preferred bidder that which offered it best value ■ the incentives for performance are appropriate and have appropriate benchmarks ■ there are appropriate standards and reduced payment for substandard performance ■ the reporting and monitoring system is appropriate for the task ■ there are renegotiation processes if conditions change markedly from that envisaged. |
Audit approach | We acquired subject matter expertise through: ■ interviews and examination of relevant documents including guidelines, reports, studies, strategies and reviews relating to the project ■ discussions with relevant staff as required, including staff of supporting agencies ■ discussions with representatives as required of key stakeholders such as principals and the school community ■ comparisons where appropriate with other States and countries, such as the UK Schools Private Finance Initiative ■ discussions with other audit offices, including the Victorian Audit Office ■ government and best practice guidelines relevant to the above. |
| This was supplemented with assistance from an external subject matter expert - Dr Michael Regan of the Australian Centre for Public Infrastructure, School of Enterprise, The University of Melbourne - who reviewed the audit plan, scope and criteria, overall findings and draft report. |
Cost of the audit | Including printing and all overheads, the estimated cost of this audit is $150,000. |
Acknowledgements | We gratefully acknowledge the co-operation and assistance provided by representatives of the Department of Education and Training and the NSW Treasury. In particular, we would like to thank the Principals of Glenwood High School, Kellyville PS and Tallowood SSP for their assistance to the audit. We also wish to acknowledge the benefit of discussion with the NSW Teachers Federation. |
Audit team | Chris Yates was our team leader for this performance audit. Sean Crumlin provided direction and quality assurance. |