The NSW Education Standards Authority (NESA) has launched its 2026 single-theme audit programme, with the current focus falling on significant payments made by non-government schools to third-party service providers.
This announcement is directly relevant to any independent or non-government school operating in NSW that receives government financial assistance.
The current audit theme covers significant payments made for third-party service contracts in the following areas:
- construction;
- security;
- information and communications technology and
- cleaning.
To satisfy not-for-profit compliance obligations, schools must be able to demonstrate that payments in these categories meet two core requirements:
- payments must be for the operation of the school; and
- payments must not be above reasonable market value.
Schools will be selected at random to take part in the audit. If a school is selected, NESA will notify the principal and proprietor in writing via a directions letter.
This is a timely opportunity for non-government schools in NSW to review their existing contracts and payment records in the four service areas identified, confirm that all payments are supported by evidence of reasonable market value, and ensure their governance documentation is well-organised and readily accessible.
Schools with questions about the programme are encouraged to review the Not-For-Profit Guidelines for Non-Government Schools, contact NESA’s Regulation of Non-Government School Funding team directly, and/or consider seeking legal advice if they have concerns about their current compliance position ahead of any potential notification.