education strategic plan nsw

NSW Department of Education strategic plan 2018-2023

The New South Wales (NSW) Department of Education ensures children, young people and adult learners are at the centre of all their decision-making, ensuring young children get the best start in life by supporting and regulating the early childhood education and care sector. The Department is the largest provider of public education in Australia with responsibility for delivering high-quality public education to two-thirds of the NSW student population. They build pathways for lifelong learning and support the delivery of a skilled and employable workforce for NSW through vocational education a ...  Show more

The New South Wales (NSW) Department of Education ensures children, young people and adult learners are at the centre of all their decision-making, ensuring young children get the best start in life by supporting and regulating the early childhood education and care sector. The Department is the largest provider of public education in Australia with responsibility for delivering high-quality public education to two-thirds of the NSW student population. They build pathways for lifelong learning and support the delivery of a skilled and employable workforce for NSW through vocational education and training and higher education. The Strategic Plan is the department's highest-level strategy document, outlining system-wide objectives and direction. The strategic plan has been extended to the end of 2023 to allow all sectors to focus on learning continuity in response to Coronavirus Disease 2019 (COVID-19), and natural disasters.

Edited excerpts from publication. Show less

Corporate authors: New South Wales. Department of Education

Published: [Sydney, New South Wales], Department of Education, 2022

Resource type: Government information

Physical description: [2] p.

Also called: New South Wales Department of Education strategic plan 2018-2023

Series: Corporate plans of New South Wales departments or agencies responsible for skills and training

Document number: TD/TNC 153.645

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Subjects: Governance Policy Primary education Secondary education Vocational education and training Higher education Equity

Keywords: Strategic planning Education and training system Government policy Government role State government Academic achievement Attainment Wellbeing Skill development

Geographic subjects: New South Wales Australia Oceania

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http://nla.gov.au/nla.obj-2973107221

New South Wales. Department of Education, issuing body. (2017). Strategic plan 2018-2022 Retrieved November 14, 2024, from http://nla.gov.au/nla.obj-2973107221

New South Wales. Department of Education, issuing body. Strategic plan 2018-2022 Parramatta, NSW: NSW Department of Education, 2017. Web. 14 November 2024 < http://nla.gov.au/nla.obj-2973107221 >

New South Wales. Department of Education, issuing body. 2017, Strategic plan 2018-2022 NSW Department of Education, Parramatta, NSW viewed 14 November 2024 http://nla.gov.au/nla.obj-2973107221

{{Citation   | author1=New South Wales. Department of Education, issuing body.   | title= Strategic plan 2018-2022   | year=2017   | section=1 online resource (2 pages) : colour illustrations.   | location=Parramatta, NSW   | publisher=NSW Department of Education   | url= http://nla.gov.au/nla.obj-2973107221   | id= nla.obj-2973107221   | access-date=14 November 2024   | via=Trove }}

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The Strategic Plan 2018-2022 sets out the department’s blueprint for the next five years.

To be Australia’s best education system and one of the finest in the world.

Our purpose

To prepare young people for rewarding lives as engaged citizens in a complex and dynamic society.

Children and young people are at the centre of all our decision-making. We ensure young children get the best start in life by supporting and regulating the early childhood education and care sector. We are the largest provider of public education in Australia with responsibility for delivering high-quality public education to two-thirds of the NSW student population. We respect and value Aboriginal people as Australia’s First Nation Peoples. We also work closely with the non-government school and higher education sectors.

• All children make a strong start in life and learning and make a successful transition to school.
• Every student is known, valued and cared for in our schools.
• Every student, every teacher, every leader and every school improves every year.
• Every student is engaged and challenged to continue to learn.
• All young people have a strong foundation in literacy and numeracy; deep content knowledge; and confidence in their ability to learn, adapt and be responsible citizens.
• All young people finish school well prepared for higher education, training and work.
• Education is a great place to work and our workforce is of the highest calibre.
• Our school infrastructure meets the needs of a growing population and enables future-focused learning and teaching.
• Community confidence in public education is high.
• Our education system reduces the impact of disadvantage.
• We have high expectations and we continually seek to improve ourselves and our work.
• We strive to excel and invite the best ideas from everyone in and outside the department.
• We use and share evidence, research and data to underpin policy and practice.
• We welcome collaboration and learning with others.
• We ensure that every student has access to high-quality public education.
• We respect diversity and the views and contributions of others.
• We treat people fairly.

Accountability

• We take responsibility for decisions and outcomes.
• We allocate and use resources efficiently and effectively.
• We monitor and review performance to drive improvement.
• We build relationships based on transparency, honesty and mutual respect.
• We support each other.
• We respect others’ expertise, experience and points of view, and listen with an open mind.
• We act professionally with honesty and consistency.
• We communicate clear expectations.
• We are transparent with information and our decisions.
• We are flexible, innovative, responsive and reliable.
• We provide coordinated and aligned services to enhance teaching and learning.
• We work openly in partnership with parents, communities and organisations.

Our performance measures

• Increased proportion of children enrolled in an early childhood education program in the year before school (and proportion who are enrolled for 600 hours)
• Increased proportion of students reporting a sense of belonging, expectations for success and advocacy at school
• Increased proportion of students in the top two NAPLAN bands for reading and numeracy
• Increased proportion of Aboriginal students in the top two NAPLAN bands for reading and numeracy
• Increased proportion of regional and remote students in the top two NAPLAN bands for reading and numeracy
• Increased proportion of students with an HSC, Year 12 certificate or AQF certificate II and above
• Increased number of teachers accredited at the Highly Accomplished and Lead Teacher levels
• Increased number of schools with high value-add
• Improved staff engagement results in the People Matter Employee Survey
• Number of new and upgraded schools and classrooms

Downloadable version

Download the printable PDF of the Strategic Plan 2018-2022 (PDF 111.56KB) .

Business planning

The department has a business planning model to cascade the strategic plan through annual operational plans and individual performance agreements. For more information, visit the Business planning page (Staff only).

Strategic Plan A3 posters (PDF 274.73KB)

Strategic Plan pull up banners (PDF 170.44KB)

Strategic Plan digital screen slides (PDF 182.59KB)

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Department of Education

Our purpose is to prepare young people for rewarding lives as engaged citizens in a complex and dynamic society.

The NSW Department of Education is the largest provider of public education in Australia with responsibility for delivering high-quality public education to two-thirds of the NSW student population. 

Our public schools service the diverse range of communities across the state, enabling all children and young people to have access to quality education.

We ensure young children get the best start in life by supporting and regulating the early childhood education sector. 

We support the delivery of a skilled and employable workforce for NSW through post-school vocational education and training, as well as higher education.

Related information

Training Services NSW is the division of Department of Education that looks after vocational education and training.

Careers NSW offers free information, advice and professional guidance for NSW residents at any stage of their career.

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Media release

The Auditor-General for New South Wales, Margaret Crawford, released a report today examining the planning and delivery of new, redeveloped and upgraded public schools. School Infrastructure NSW has identified the need to accommodate an additional 180,000 enrolments in public schools by 2039 with a large portion of this growth expected in metropolitan Sydney. It has also identified that around 34,000 teaching spaces will require upgrading to be fit-for-purpose. Although School Infrastructure NSW has developed a long-term strategic plan that advises government of ongoing funding requirements, it has not presented a list of priorities to meet those needs. Developing a longer-term list of priorities would help signal the areas of greatest need and allow more time to develop the best options to meet those needs. The audit found that School Infrastructure NSW has focused on delivering existing projects, election commitments and other government announcements. This has diverted attention from identifying and delivering projects that would have better met present and future needs.  The report makes eight recommendations to improve long-term planning for future needs, strengthen the quality of estimated project costs and benefits, and embed a continuous improvement program. 

Executive summary

In 2016, the Department of Education prepared a School Assets Strategic Plan (2016 SASP) which outlined long-term funding needs to support the expected growth in enrolments to 2031. Following the release of the 2016 SASP, the NSW Government substantially increased funding for new and upgraded schools from $2.4 billion in the 2016–17 State Budget to $4.2 billion in 2017–18.

In 2017, the Department of Education established School Infrastructure NSW (SINSW) to lead the delivery of the 2016 SASP and the 123 new projects announced in the 2017–18 Budget. This significantly larger program of work required rapid development of internal capacity, governance arrangements, and project management systems. This needed to be done at the same time as scoping and planning for the list of announced projects.

As there are limited funds available to meet growing needs across the State, it is important that SINSW has effective methods to prioritise projects to communities with the greatest need. To ensure that projects deliver value for money, business cases need to have robust estimates of project costs and benefits. Business cases also need to account for the inherent risks in delivering infrastructure projects. Unplanned cost escalations can reduce the number of new or modernised classrooms SINSW can deliver. Unforeseen delays may also impact families who make significant life choices based on their expectations that a school will open at the beginning of the school year.

The objective of this audit was to assess the effectiveness of planning and delivery of new, upgraded and redeveloped schools to meet demand for public school education in New South Wales. To address this objective, the audit examined whether the Department:

• has effective procedures for planning and prioritising school capital works to meet present and future demands
• develops robust business cases for school capital works that reliably inform decision-making
• has effective program/project governance and management systems that support delivering projects on-time, within budget and achievement of intended benefits.

The audit examined business cases for 12 projects as case studies. These include a mix of projects initiated before and after the establishment of SINSW.

This audit commenced in June 2020 and examined strategies and demographic projections developed prior to the emergence of COVID-19. This audit did not examine potential longer-term impacts of COVID-19 on future demands for public school education.

1. Key findings

Sinsw delivered projects against an established program of works in its first years of operation.

At establishment, SINSW inherited a portfolio of existing projects and 123 new projects announced as part of the 2017–18 Budget (to commence over 2017–18 and 2018–19). It has progressively worked through individual project planning to deliver against these projects.

The 2018–19 Budget funded two new projects that had not already been announced. Both projects were identified by SINSW as a priority. The 2018–19 Budget also allocated funding for 'planning' 22 new projects. Seventeen of the 22 projects had been identified by SINSW as a priority.

SINSW identified 31 new priority projects in its Capital Investment Plan for 2019–20. Thirteen of these projects were funded in that year with a further 27 projects included as election commitments. SINSW identified 20 new projects in its Capital Investment Plan for 2020–21 but only two of these were funded. SINSW advised this was due to a constrained budget environment.

There is an anticipated shortfall of classrooms based on the current funded program

Despite increased funding since 2017–18, SINSW advised the NSW Government in early 2020 that the currently funded infrastructure program would not meet forecast classroom requirements for 2023 and beyond. Accordingly, it is vital that new funding is prioritised to projects which best meet demand.

SINSW only identified specific priorities over a two-year horizon in its Capital Investment Plans for 2018–19, 2019–20 and 2020–21. The School Assets Strategic Plan 2016 and the 2020 update make the case for sustained funding for school building and redevelopment. These plans estimate annual funding requirements and show geographic areas with increasing forecast enrolments. Detailing how priorities over a ten-year timeframe fit within a ten-year capital planning limit would create more certainty about meeting growth demands.

There has been progress in formalising prioritisation frameworks, data tools and supporting governance arrangements

SINSW committed to planning for new and redeveloped schools in 'School Community Groups' in the School Assets Strategic Plan 2016. This is a new way of planning which considers the educational needs over a defined geographical area. It has developed a planning tool to prioritise School Community Groups based on weighted criteria. It has also established governance frameworks to improve transparency over decisions to reprioritise this list.

SINSW has refined its approach to planning in School Community Groups over the past four years. It now prepares Service Needs Reports to investigate needs, identify projects, prioritise, determine scope and timing, and assess non-capital options. SINSW has yet to finalise arrangements for how needs identified in Service Needs Reports progress to the strategic business case stage.

Projects announced prior to developing a business case have less opportunity to consider a range of options to meet the service needs

Business cases for projects already announced by government (or announced for planning) go through the same process of determining the service need and impacts on surrounding schools. However, for some announced projects, the range of options considered in the business case is influenced by the parameters of the announcement. This makes it more difficult to genuinely pursue alternate options that could better meet the identified service need.

Projects identified by SINSW have a more rigorous process of considering options. Service Needs Reports explore a wide range of asset and non-asset interventions across the School Community Group. Options are narrowed as the projects move through the strategic and final business case stages. SINSW uses its Investment Review Committee to engage key stakeholders early in the process so that they are informed about how non-asset solutions have been considered and why SINSW is progressing the business case for a capital solution for particular projects.

Several business cases underestimated project costs and risks, leading to scope and budget increases

Several business cases we reviewed did not adequately identify the initial scope requirements, project-specific risks or the likely project cost. For two business cases, this appeared to be due to an attempt to fit the project within a predetermined amount. Announcing a project’s scope, budget and timeframe before proper planning increases risks to successful delivery against expectations.

Several of the projects we examined required drawdowns on contingency funds due to inadequate consideration of scope, costs and project risks at the planning stage. Contingency funds are intended for unanticipated extra costs rather than those that could have or should have been identified at the planning stage.

Guidance on benefit calculations has provided a consistent framework for business cases

Business cases we examined presented a consistent set of benefits based on guidance developed in partnership with NSW Treasury. Following this guidance helps to compare cost-benefit analyses across business cases. However, the evidence for the estimated benefits is based on contexts outside of NSW. SINSW has the tools and data sources to calculate benefits more suited to the context of particular schools. Doing so would improve the accuracy of cost-benefit analyses. SINSW advised that it is currently updating the guidance in partnership with NSW Treasury.

SINSW involves school principals, executives and teaching staff in developing education rationales when commencing projects. These documents help align projects with education outcomes. They also provide a baseline for post-occupancy evaluation, which is important to determine whether the new school infrastructure is being used in the ways that were anticipated in the business case.

SINSW could elevate its existing assurance review process to consolidate lessons learned

SINSW engages external peer reviewers to conduct assurance reviews on its projects at multiple stages of planning and delivery. It has established a Community of Practice for external reviewers to keep them up to date on new developments and requirements. Higher value projects are also subject to review by Infrastructure NSW under the Investor Assurance Framework.

By looking at all projects at all stages, assurance reviews can identify systematic issues across the full portfolio of projects. A recent assurance review analysed common findings from reviews of strategic and final business cases. This provides a helpful way to improve internal processes. SINSW advised that it is implementing a continuous improvement program, which will be able to take findings from assurance reviews to build organisational capabilities.

2. Recommendations

By September 2021, the Department of Education should:

• finalise the investment prioritisation approach with agreement from key stakeholders
• finalise and update on an ongoing basis a ten-year list of priorities to meet the forecast demand for new classrooms and contemporary fit for purpose learning environments, which identifies individual projects and programs in the short-term and priority geographic areas and programs in the medium-term
• seek a ten-year Capital Planning Limit from NSW Treasury to ensure the needs identified in the ten-year list of priorities are met and are coordinated with the forward capital programs of other agencies
• improve the quality of data on cost benchmarks that underpin the annual ten-year Capital Investment Plan and updates to the School Assets Strategic Plan
• validating benefits estimated in previous business cases with actual results
• building the evidence base in relation to contemporary learning environments
• regularly share data on forecast needs with relevant planning agencies to promote strategic opportunities for servicing education needs
• implement the continuous improvement program for service planning, options assessment, business case development, project delivery and handover. The program should be informed by findings from assurance reviews, post-occupancy evaluations and project lessons learned
• ensure business cases set baselines and targets for benefits
• review benefits during delivery, prior to handover and as part of Post Occupancy Evaluations
• identify which part(s) of the Department are best placed to develop, manage and evaluate benefits on an ongoing basis.

1. Introduction

1.1 overview of school capital works in new south wales.

New South Wales Government school portfolio

The NSW Department of Education had 805,000 students enrolled in over 2,209 primary, secondary and specialist schools across the state in 2019. To meet the needs of these students, it has over $33.0 billion invested in school infrastructure and land throughout New South Wales. The current footprint of the school portfolio is approximately 8.6 million square metres in over 20,000 structures of varying condition, age and functionality. Currently, 55 per cent of permanent buildings are over 40 years of age with around 80 per cent over 25 years. There is a separate program to address the maintenance backlog in NSW public schools that was not in the scope of this audit.

School infrastructure investment has significantly increased each year since 2016–17 (Exhibit 1). The 2019–20 Budget announced $6.7 billion for 190 new and upgraded schools over four years.

Forecast growth in student population

Under the Education Act 1990 the Department is required to ensure that every child can enrol at their local school and receive a high-quality education. The Department therefore needs to ensure that it is planning and delivering sufficient places in government schools now and into the future.

Based on 2019 projections, the Department forecasts that it will need to accommodate an additional 180,000 students in the government school system in the years to 2039. The majority of the increased forecast enrolments are expected in already established areas of metropolitan Sydney, rather than new land release areas or in regional and rural New South Wales.

Our previous audit of planning for school infrastructure

Our 2017 audit 'Planning for school infrastructure', assessed whether the Department of Education had a strategy and implementation model to ensure it has sufficient fit-for-purpose student learning spaces when and where needed. The audit found there had been chronic under-investment in school infrastructure for a decade and deficiencies in asset planning.

The Department developed a School Assets Strategic Plan (SASP) in 2016. The SASP identified a need for an additional 7,200 classrooms to meet forecast population growth over 15 years. The plan set out the challenges in meeting demand for school infrastructure and proposed new approaches. It made the case for a longer-term vision and funding envelope, a new model for planning based on groups of neighbouring schools, and other policies to make better use of existing resources and lower the costs of new builds. For more information on cluster planning, or planning in School Community Groups, see Exhibit 2.

We found the SASP covered important issues and benefited from expert input and independent validation of assumptions, proposed solutions and likely costs. We also noted the SASP had elements that may be confronting for the community, included conservative funding estimates and carried many risks to successful delivery.

Establishment of School Infrastructure NSW (SINSW)

School Infrastructure NSW (SINSW) was established in August 2017 as a division of the Department of Education with responsibility for planning, procurement, construction and maintenance of school facilities to meet changes in population growth, accommodate new ways of teaching and learning, and help foster better educational outcomes for students.

The School Infrastructure Advisory Council was established in October 2017 to support the Secretary and the Department of Education through providing independent expert advice to guide the activities of SINSW and the implementation of the School Assets Strategic Plan.

SINSW has structured its branches across the project lifecycle. These are:

• Service planning – updates projections, establishes service needs reports and strategies through cluster planning, coordinates non-asset solutions, develops educational rationales, researches innovative learning environments and undertakes post occupancy evaluations.
• Infrastructure planning – developing business cases, provides technical advice on stakeholder engagement, statutory planning, sustainability, property and transactions.
• Infrastructure delivery – leads projects through delivery phases, ensures the consistent use of project management systems and reporting, manages consultants and contractors, and provides approval at each level of the governance structure for project risks and issues.
• Business enablement – responsible for SINSW processes that overarch planning and delivery. This includes procurement, quality assurance, investor assurance, communications, risk management, systems/IT and design/technical standards.
• Partnerships – responsible for developing and delivering partnership opportunities for the local community and non-education stakeholders (such as Local Government). A key objective is to make school facilities more accessible to local communities.

2018 State Infrastructure Strategy

The State Infrastructure Strategy 2018 provides advice on the current state of infrastructure in New South Wales and the needs and priorities for the next 20 years. The strategy emphasises that the government will need to make more efficient use of existing and new infrastructure.

In relation to school infrastructure, the strategy notes the anticipated surge in public school enrolments and that many existing schools require renewal and refurbishment to improve their functionality and support contemporary teaching and learning practices. The strategy makes 11 recommendations specific to education. In response, the NSW Government committed to:

• develop and implement a comprehensive School Assets Strategic Plan management and reporting framework
• establish a consultation framework to consider community views, and whole-of-government and place-based outcomes in the delivery of new and upgraded schools
• develop a program to progressively convert existing permanent learning spaces to future learning environments.

School Assets Strategic Plan Update (2020)

The 2020 School Assets Strategic Plan Update (the 2020 Update) is the first of what is planned to be an ongoing series of updates. It draws on the experience of SINSW since its establishment in 2017. It also incorporates the latest population growth projections to advise on the anticipated infrastructure requirements to 2039. The 2020 Update focuses on delivering an infrastructure program that balances the need to build for growth and the need to bring existing facilities up to a contemporary standard (Exhibit 3).

NSW Department of Education Strategic and Business Plans

The Department of Education’s Strategic Plan 2018–2022 sets a vision 'to be Australia's best education system and one of the finest in the world'. One of the ten goals in the plan is that 'school infrastructure meets the needs of a growing population and enables future-focused learning and teaching'. This goal has associated performance measures for the 'number of new and upgraded schools and classrooms'.

The Department of Education Business Plan and Accountability Framework sets out priorities, targets and the governance and accountability framework to drive strategic planning in order to achieve the Strategic Plan's vision.

With regards to school infrastructure, the plan defines success as 'delivering the capacity we need in the system to meet enrolment growth, improving renewal opportunities … and ensuring our assets are fit-for-purpose and compliant, while also ensuring value for money'.

The plan sets out nine measures to track performance:

• Improve school utilisation within high-growth areas every year, maximising existing infrastructure in response to new student demand.
• Delivery of additional new classrooms.
• New additional classrooms represent value for money.
• Students, parents and teachers satisfaction with school facilities improves.
• Increased proportion of facilities which meet community expectations.
• Increased number of schools with community/wellness hubs.
• Increased proportion of all classrooms in NSW public schools that are able to deliver contemporary learning through upgrades/refurbishment since 2017.
• Portfolio-level energy consumption reduces every year.
• Increased percentage of accessible buildings.

1.2 About the audit

This audit assessed the effectiveness of planning and delivery of new, upgraded and redeveloped schools to meet demand for public school education in New South Wales. The audit focused on School Infrastructure NSW, a division of the NSW Department of Education responsible for prioritising, planning and delivering major school capital works across the State.

The audit examined how SINSW implements policies, guidelines and frameworks supporting the prioritisation of school infrastructure capital works and related investments. It also considered if funded projects are based on robust analysis of options and benefits, and if there are effective arrangements for delivering projects.

To inform our assessments, we also examined 12 school infrastructure projects. We chose the projects to examine as case studies in consultation with SINSW and they reflect a range of criteria including metropolitan and regional locations; new, redeveloped and upgraded schools; primary and secondary schools; construction completion stages; budget and commencement date. Some of the chosen projects commenced before the establishment of SINSW in mid-2017.

Further information on the audit scope, criteria and approach is at Appendix two .

2. Prioritisation and planning

There have been significant increases in funding for education infrastructure since the 2017–18 Budget and further growth in demand for places in schools is forecast. SINSW has the challenge, not only of meeting the need for new classrooms due to population growth, but also upgrading facilities to enable modern teaching techniques. In addition, community expectations of what constitutes a vibrant and successful school community continues to increase.

Given growing demand and budget constraints, projects must be selected to best meet the needs of the community and planning and prioritisation are vital. SINSW has been progressing planning for announced projects as well as implementing a new type of strategic state-wide planning and prioritisation, cluster planning, where options are developed for School Community Groups.

2.1 Planning for announced projects and progressing the school building agenda

Existing projects, election commitments and government announcements have led planning and prioritisation.

The SASP 2016 identified a considerable shortfall in the number of classrooms needed in the short, medium and longer-term. In response, the 2017–18 Budget announced funding for 123 new and upgraded schools to commence in 2017–18 and 2018–19. Delivering against these projects, as well as projects already underway, was an immediate focus for SINSW as it built internal capabilities to advise on strategic priorities for future years.

Over the next three budget cycles, new projects nominated by SINSW in its Capital Investment Plans made up only a portion of projects that received funding (Exhibit 4). This has meant projects prioritised from 2018–19 to 2020–21 were not always based on rigorous analysis to meet the highest needs.

Given limited resources, planning for projects should be led by strategic, state-wide prioritisation to select the most effective investments before projects are funded or announced. In 2020, SINSW advised the NSW Government it did not have committed funding to build enough classrooms to accommodate the growing need for public education infrastructure and bring all existing classrooms to a compliant modern standard.

SINSW has not adequately reported on progress towards meeting expected demand

Through the modelling in the SASP 2016 and its update in 2020, SINSW has forecast the service need requirements to 2039, subject to changing data and trends. It is important that SINSW tracks and reports its progress in using allocated funding to meet demands. This helps to advise government of what future investment may be required to meet long-term demand.

The SASP 2016 forecast the need for an additional 7,200 teaching spaces by 2031 based on expected population growth. In 2019, the Department updated and increased this forecast. It expects that the $6.7 billion in funding since the 2016 SASP will deliver an additional 1,700 teaching spaces. Future updates to the SASP should report greater detail on how the funded infrastructure program has contributed towards meeting those forecast requirements.

SINSW reported on its progress to meet the long-term demand for school infrastructure in its 2020–21 Budget submission. Despite increased funding over the past four years, it advised the currently funded infrastructure program would not meet forecast classroom requirements for 2023 and beyond. This shortfall is due to growth alone and does not address fitness-for-purpose or proactively address compliance issues across the portfolio.

The Department of Education Business Plan for 2020 identifies the number of additional classrooms required to 2039 and it will report on delivery of those classrooms. The Business Plan also includes a measure for 'utilisation in high growth areas', 'value for money' and several measures on asset conditions. In combination, these measures provide for a balance in incentives but depend on available funding and the capacity to influence prioritisation decisions.

The proposal for a ten-year capital planning limit has not been finalised

The Capital Investment Plan forms a key part of SINSW’s annual budget submission. The purpose of the Plan is to demonstrate a long-term approach to infrastructure planning. Plans can include priorities for up to ten years, however, SINSW only included priorities for one year in the 2018–19 and 2019–20 plans and two years in the 2020–21 plan.

Since 2017–18, there has been an interim Capital Planning Limit for education capital works. This is an allocated notional amount of funding over ten years to create more certainty for long-term planning. The Capital Planning Limit is revised each year as part of the Budget process. SINSW advised it is still working towards a strategic planning approach that will demonstrate priorities based on service need over a ten-year horizon.

As the ten-year Capital Planning Limit is 'interim', the only certain funding is that allocated yearly through the Budget. Certainty of funding over a longer period would allow SINSW to better plan for, track and report how the long-term demand for school infrastructure will be met. Transitioning the capital planning limit to a ten-year horizon is in keeping with other clusters such as Health and was a recommendation of the SASP 2016, endorsed by our previous audit in 2017.

SINSW has invested resources in improving cost estimates

In 2020, SINSW updated and adapted the School Assets Strategic Plan in light of its experience in delivering school infrastructure projects. The SASP 2016 took a high-level approach to identifying the shortfall of school infrastructure. It anticipated that implementing cluster planning at the local level would provide further detail about the cost and complexities of infrastructure delivery in practice. This would allow better estimates of the funding required to meet the demand for school infrastructure. SINSW has used what it has learned so far to update the SASP.

More could be done to improve the accuracy of cost estimates, both for benchmarks to include in project business cases and to inform longer-term projections. Over 2020, SINSW has dedicated resources to capturing project cost information and understanding cost estimates in more detail.

Design for Manufacture and Assembly (DfMA) is a repeatable approach to building that can offer more certainty over costs. SINSW has already completed multiple projects using a DfMA approach with more projects identified for the future pipeline of works. These projects have been used to improve SINSW’s cost benchmarking data.

As SINSW builds more accurate cost estimates, it should inform the annual ten-year Capital Investment Plan and future iterations of the SASP. This will help SINSW to better demonstrate the amount of capital expenditure required to meet medium and long-term demand.

2.2 Prioritisation and planning based on state-wide needs

Sinsw has improved its planning approach based on examining groups of schools.

The SASP 2016 identified a new model for planning schools – cluster planning or planning in School Community Groups. This model allows planners to more thoroughly consider the impacts on neighbouring schools when making decisions on new projects. Exhibit 5 demonstrates the importance of planning in community groups and addressing underutilisation.

SINSW has tried different approaches to planning in School Community Groups over the past four years and has refined its approach to increasingly direct resources towards the areas of greatest need. It has adjusted its cluster planning model to negotiate tensions between focussing on depth of planning and breadth of planning. There are trade-offs between both approaches:

• Depth of planning – requires a detailed understanding of assets and the local situation of each school. This is complex because there are 367 School Community Groups across the State covering over 2,200 schools.
• Breadth of planning – can include planning across common issues such as contemporary learning environments or issues facing regional and remote schools, to ensure coverage and scalability of interventions across all of NSW.

Exhibit 6 demonstrates the evolution of cluster planning and how approaches have become more thorough, with increased use of data and ability to model interventions. The most recent approach is to produce Service Needs Reports. This was attempted for the first time for the 2020–21 budget, so it is not yet a settled approach.

Service Needs Reports help to identify options and priorities for investment

Until recently SINSW has focused on investigating service need for projects that have been previously announced or announced for planning. Prioritising which School Community Groups to investigate first is a key part of a system where planning and prioritisation is based on strategic, state-wide service needs. Going forward, SINSW plans to prioritise Service Needs Reports for the School Community Groups it identifies as having the highest needs.

Service Needs Reports are developed to investigate needs, identify projects, prioritise, determine scope and timing, and assess non-capital options. It currently takes around three months to complete and assure each report. Because of these timeframes, it is not practical for SINSW to prepare and maintain up-to-date reports for all School Community Groups across the State.

SINSW uses data from Eagle Eye (a bespoke planning tool) and weighted criteria to inform the prioritisation of the highest need School Community Groups. The criteria include:

• estimated teaching space needs
• number of demountable classrooms
• average condition and functionality of existing assets
• socio-economic advantage/disadvantage
• government and non-government school share
• play space (for metropolitan areas only).

SINSW uses separate weightings to determine metropolitan and regional priorities. Using a single set of weightings would otherwise put emphasis on metropolitan areas under pressure due to population growth. Separate weightings help to provide a more robust basis to identify the highest priority regional areas based on the condition and functionality of classrooms.

SINSW has recently examined service needs across a broader area of several School Community Groups in a precinct approach (Exhibit 7).

SINSW is trialling broader, state-wide service need strategies

SINSW is developing Service Need Strategies to cover broader geographic areas and issues. This approach may help include more schools across NSW in the strategic planning process that would otherwise not be covered based on the prioritisation framework.

SINSW advised it is planning to develop strategies for 14 geographical regions and six issues:

• Rural and Regional NSW
• Inclusive Education
• Intensive English Centres
• Contemporary Learning Environments
• Environmental Education Centres
• Improving School Utilisation.

Prior arrangements for making decisions about planning priorities were not transparent but SINSW has set up a new governance structure to address this

Prior to 2020, the process to determine priorities for service planning and business case development was opaque and documentation was lacking for why some projects were reprioritised. For example, Executive Directors across the Department of Education reprioritised certain School Community Groups for planning in 2020–21.

In July 2020, SINSW established an Investment Review Committee to provide oversight of the prioritisation and planning approach to ensure that infrastructure outcomes meet the needs of a growing student population as well as state-wide priorities. The Committee includes representatives from Treasury, the Department of Premier and Cabinet and Infrastructure NSW.

In July 2020, the Committee approved criteria and weightings to prioritise Service Needs Reports for metropolitan and regional areas. The Committee, however, has not yet endorsed an approach to prioritise business cases to address the needs identified through these reports. Going forward, SINSW will be drawing from its Service Needs Reports to determine which projects to prioritise, so there is a pressing need to clarify how projects are chosen to proceed to the business case stage.

2.3 Data and tools to support prioritisation decisions

New technology helps sinsw better use data to identify service needs, prioritise and plan.

SINSW has invested in technology so it can use uniform and objective data to decide how to prioritise investments. SINSW's technology (called Eagle Eye) generates projections of which schools, School Community Groups and regions have the greatest pressures due to population growth and asset condition. Eagle Eye has been developed over the past two years and has allowed SINSW to automate much of the complex, manual analysis that was required to model potential infrastructure solutions for Service Needs Reports. The tools are improving the quality and rigour of planning.

In 2020, SINSW commissioned Infrastructure NSW to review its planning tools. The review recommended consolidating documentation as the tools moved into business-as-usual.

Data from official population projections are supplemented with on-the-ground information

SINSW uses common planning assumptions from the Department of Planning, Industry and Environment to project the number of students in school catchments, local government areas and regions. This data source can be problematic because it is based on census data which can become out-of-date toward the end of the five-year cycle. Because of the length of time required to develop a proposal, it is important SINSW has the best available information on population growth.

SINSW is aware of other limitations to its data, for example housing supply forecasts are unavailable for regional areas and non-government school data is not current. Because of these limitations, SINSW engages with operational areas of the Department and with external stakeholders to supplement its in-house planning tools. SINSW also analyses data on current school enrolments to validate information in official data sources.

3. Developing business cases

The primary role of a business case is to reliably inform an investment and/or policy decision. Over the period of review, the NSW Government's guidelines for business cases have established this requires recommendations based on convincing arguments, sufficient evidence, and accurate costing of alternatives and expected benefits. Business case guidelines are underpinned by guides for economic appraisal and cost-benefit analysis.

As SINSW moves to prioritise business cases for interventions in School Community Groups, it will increasingly need to demonstrate rigour in its assessment of all options. It will also need to ensure that scope identification, cost and risk planning and the setting of contingencies are accurate. This will help decision-makers better understand, plan for and manage the investment required to meet the demand for school infrastructure.

For this audit, we examined business cases and related documentation for 12 projects. Several of these projects were developed before School Infrastructure NSW was established in mid-2017.

3.1 Development of options to meet service needs

Some final business cases we examined did not demonstrate a rigorous and transparent assessment of the range of feasible options, including non-capital options.

Final business cases we examined presented a comparison of one or two capital alternatives to the base case. They were inconsistent in demonstrating how a long list of options were considered before arriving at the short list of options. Treasury guidance emphasises that business cases should canvass a range of realistic options and a full financial appraisal should be conducted on a short list of options.

SINSW processes consider a range of feasible options at the service need report and strategic business case stages, which are shortlisted in the final business case for more detailed analysis. SINSW starts the process with a standard long list of options. These options are shortlisted using a multi-criteria analysis, which is confirmed in a Value Management Workshop. SINSW recently commissioned a review of these procedures, which recommended strengthening the process to counter the risk of subjectivity and project bias influencing this shortlisting process.

In some examples, the process of shortlisting options is explained well. For example, the Fort Street Public School Strategic Business Case details eleven options and the criteria against which they were assessed. These options included meeting capital compliance obligations only, alternative sites, expansion to meet in-catchment growth only and expansion to meet demographic projections. The process was documented again in the final business case.

In other examples, there is no meaningful long list of options. For example, the Ashtonfield Public School Business Case mentions three 'discarded options' in the final business case. The first was a real, but unsuitable option, of diverting students to nearby schools. The other two were financing arrangements with the private sector operator of the school rather than alternate interventions.

Government announcements prior to business case development make it more difficult to pursue alternate options to meet the service need

SINSW's approach to developing a range of options in business cases we examined varied depending on whether a project had already been announced by government or whether it was initiated by SINSW through its service needs planning tools. Business cases for announced projects we examined tended to limit consideration of alternative capital or non-capital solutions.

It is appropriate that SINSW investigates the service needs and a range of options even when a project has been announced. This will provide more comprehensive advice to government on the best ways to meet the needs in the School Community Group and achieve the strategic priorities of the School Assets Strategic Plan.

SINSW uses the 'SASP filter' to shortlist options at the Strategic Business Case stage by assessing the appropriateness of an intervention in each school in the School Community Group through six criteria. The first three criteria are mentioned in the SASP, while the latter three are not:

• Capacity – whether existing primary/secondary school capacity could be feasibly upgraded to its theoretical maximum i.e. 1,012 students for primary, and 2,000 for secondary schools.
• Land area – whether the existing school meets minimum land area requirements i.e. 1.5 hectares for primary schools, and 2.5 hectares for secondary schools in urban areas.
• Play space – whether existing primary and secondary schools offer a minimum of ten square metres play space per student.
• Recent interventions – schools with recent interventions have been omitted, to avoid repeated interruptions and create equity of interventions.
• Election commitment – whether an election commitment has been confirmed at the school.
• Announcements – whether a ministerial announcement has been made for the school.

The Chatswood Schools Upgrade is an example of a project where alternate options were constrained because the site had already been announced by the NSW Government (Exhibit 8).

3.2 Specific guidance for business cases

Sinsw has recently developed standard templates to help business cases comply with relevant policies and guidelines.

SINSW needed to develop many project business cases soon after it was established to address the needs identified in the SASP 2016. Between August 2017 and December 2018, over 50 business cases were submitted for the Treasurer's approval for the 2018–19 Budget. Given the large number of projects being approved concurrently, it is important decision-makers can have confidence that each business case meets relevant policies and guidelines.

Various service providers had previously been engaged to write business cases for specific projects. This had resulted in variability across business cases, making it harder to compare projects and ensure business cases met relevant policies and guidelines. To improve this, SINSW established a standing offer with one consultancy firm for greater consistency and to help build internal capabilities. Since August 2018, SINSW has also had internal review and assurance processes over business cases.

In 2020, SINSW developed additional guidance to improve the quality of business cases. The guidance outlines common elements to be included in every business case. Several business cases produced in 2020 we reviewed use the approach specified in the guidance, including those for the Rydalmere Education Precinct and for North Sydney Demonstration School. Other business cases for older projects that were finalised in 2020 do not use the approach, including those for Chatswood Public and High School and for Fort Street Public School.

Further work is needed to enhance the evidence base for project benefits

Quantifying benefits for social infrastructure is complex but important to guide decision-making. SINSW and NSW Treasury developed the Cost-Benefit Analysis Framework for School Investment in January 2018. The guidance aims to provide a consistent and replicable method to assess costs and benefits of options for school infrastructure projects. Applying default assumptions and parameters helps with a more consistent and transparent selection of options.

The guidelines state the prime objective of investment in school infrastructure is to enable improved educational outcomes for a growing student population. Benefits are split between quantified and non-quantified. The main categories of quantified benefits are:

• increased quality of education – spatial density
• increased quality of education – future focussed classrooms
• travel time savings.

A key quantifiable benefit is an increase in lifetime wages from improved educational attainment. A one standard deviation increase in test scores is assumed to increase lifetime earnings by 14 per cent for primary students, and by 7.5 per cent for secondary students. The guidelines cite multiple Australian and international research papers to support these values.

The guidelines say that benefits should only be included for the proportion of students with below-average NAPLAN results. A state-wide average is used to calculate this proportion rather than local data. Doing this inflates benefits for projects in areas with higher-achieving students and reduces benefits for projects in areas with lower-achieving students. NAPLAN data is readily available at a school level and can be used to remove this distortion.

The benefit from improved spatial density is based on a premise that when the number of enrolments exceeds the initial design of the school, classes are taught in inappropriate areas. The evidence cited is from two studies in the United States and is not compelling. The first study found there was no discernible impact on math achievement from overcrowding and the second found achievement gains were only evident in primary schools, not secondary schools.

The guidelines set that having access to a 'future focused classroom' will improve lifetime earnings by two per cent for primary students and one per cent for secondary students. These estimates are based on research that does not appear relevant to the NSW public school context. Of the six research studies cited, four are based on undergraduate courses in the United States and one is based on a small study of Year 7 students from an Independent School in Brisbane.

The shortcomings in the available evidence mean that the anticipated benefits should be monitored over time to assess the extent to which they are accurate. This information should then be used to update the assumptions used in the cost-benefit guidelines. At the time of writing, SINSW advised it was working on updating the guidelines in consultation with NSW Treasury.

3.3 Educational requirements

Sinsw works with stakeholders to integrate educational needs into business cases.

SINSW has established governance arrangements to involve operational areas of the Department from identifying service needs to design and delivery of schools. SINSW has learned from mistakes in legacy projects where there was insufficient early engagement with educators, which led to budget overruns and time delays. The Arthur Phillip High School and Parramatta Public School project, which commenced prior to the establishment of SINSW, is an example of this (Exhibit 9).

The School Learning Environments and Change group was integrated into SINSW in 2019. This group involves teachers in school infrastructure projects to better manage change through a consultative approach. This begins with the development of an Education Rationale so the strategic goals of the school are integrated into infrastructure project planning. The Education Rationale documents the current state of the school and its future education vision. This document informs the design in a business case and provides a baseline for post occupancy evaluations.

This new approach was used in North Sydney Demonstration School to explicitly consider educational needs and desires of school staff in the business case (see Exhibit 10).

3.4 Costs and risks in business cases

Increases in scope and adverse site conditions have led to the drawdown of contingencies.

Several business cases we reviewed had issues in accurately identifying the initial scope requirements and the likely cost. Having an accurate estimation of the scope and total cost of a project is critical in allowing decision-makers to compare various investment options.

Several business cases we examined appeared to be reverse-engineered in order to fit to a pre-announced funding amount. Rather than determining the required scope of the project and then estimating the cost of that scope, a set amount means that the project may be scoped to fit within a funding envelope. This could lead to over scoping, where 'gold plating' occurs to reach the budget, or it could lead to under scoping, where important components are left out.

If the project is not appropriately scoped in the planning phase because of efforts to fit the project within a predetermined amount, then there is greater risk that items will be added later, increasing costs. This could lead to draw downs on contingency funds, which are intended for unanticipated extra costs rather than those that could have or should have been identified at the planning stage. It can also lead to timeframe delays. Examples from the projects we reviewed include:

• Arthur Phillip High School and Parramatta Public School: $100 million to $325 million due to failures in early design development and contractor procurement.
• Ashtonfield Public School: $13.9 million to $15.3 million due to the requirement of additional space identified during concept design.
• Jordan Springs New School: $37.3 million to $55.0 million due to need for a larger school and land acquisition costs.
• Fort Street Public School: requested additional funding due to the cost of moving students to another school so construction could take place and site condition costs.

Earlier business cases did not adequately account for project-specific risks that impact cost

Several business cases we examined applied a generic set of risks that did not adequately recognise the unique aspects of the projects. Identifying the full range of project-specific risks, and estimating their likelihood and consequence, is a key part of project planning. It should also form the basis of setting adequate project contingencies, which is discussed in next section.

SINSW assurance reviews of preliminary and final business cases from January to June 2020 most commonly rated ‘risk management’ as one of the weakest areas. Risk registers in business cases we examined had an under-representation of ‘cost’ and ‘budget overrun’ as an identified impact from risks that were identified. For example, the Chatswood Public and High School Business Case identified certain risks as only having 'time' or 'quality' implications, where the impact was likely to also increase costs. Identified risks for this project included:

• the impact is identified as 'quality', but scope changes usually have cost and time impacts (depending on when the change occurs)
• the impact is identified as 'time' whereas cost is also a likely outcome
• the impact is identified as 'time' where the risk description primarily relates to cost.

In addition, the risk register for the Chatswood Public and High School business case appeared optimistic in that there was a relatively low number of risks rated as 'high'. The history of budget overrun and cost growth identified in the section above suggests that such assessments undervalue the risks and/or the mitigation actions are not proving as effective as anticipated.

Fort Street Public School is an example of where in a matter of months after the final business case was submitted to Treasury for approval, SINSW sought additional funding, above the project contingency amount, to address matters that were or should have been considered significant risks in the initial business case (Exhibit 11).

4. Project governance and management systems

Over the period of review, NSW Government policies for business case development and submission have emphasised that effective governance arrangements are critical to a proposal's successful implementation.

SINSW's guidance similarly highlight the importance of effective governance and project management for achieving good outcomes. It prescribes a general governance structure managed by SINSW that can be tailored to the planning and delivery of school infrastructure projects.

4.1 Standard governance and reporting arrangements

Governance arrangements are standardised based on the size of the project.

Standard project governance arrangements have been applied to all SINSW capital projects since late 2018 (Exhibit 12). The objectives of governance arrangements are to establish clear roles and accountabilities of key stakeholders, define processes for decision making and reporting, and provide a consistent project management approach. Consistency in governance arrangements can help set clearer expectations for how project-based issues are to be resolved.

Governance structure for major capital works

SINSW's documentation of procedures sets out governance objectives and standard Terms of Reference templates for committees and groups. The standard structure includes:

• The Executive Steering Committee (projects over $75.0 million) or Regional Coordination Committee (projects below $75.0 million) endorses key deliverables and provides strategic direction and oversight of project delivery. The committees can approve any expenditure outside the original scope of the business case within delegated limits.
• The Project Control Group oversees the planning and delivery of the project. The group manages project objectives, communications, stakeholder engagement, key deliverables, program, budget, scope and risk.
• The Project Reference Group is conducted as two separate groups during the development and delivery phases of projects. The groups provide information from an operational, educational, change and logistics perspective into planning, design and construction phases.

Standard project management system improves consistency of project reporting

SINSW uses a customised web-based platform to develop, manage and report to key stakeholders. Reporting is against the status, cost and details of major capital works projects. It provides an account of progress, finances and risks for individual projects and develops reports at a portfolio level. The system manages the approval process for matters such as variations and release of project contingencies. This provides a record of reasons for requests, approvals and rejections. It enhances accountability for projects meeting budgets and timeframes with documented reasons for access to project contingencies.

Project management procedures are documented with additional practice notes on particular topics. As at October 2020, around half of the practice notes SINSW had developed were not yet finalised or endorsed. It is important for SINSW to document clear ways of working as it engages external project managers to be responsible for the day-to-day running of a project.

4.2 Ongoing oversight of costs, benefits and timelines

Arrangements for calculating and managing contingency have been unclear.

The setting of project contingencies has been inconsistent in business cases we examined. For example, the Fort Street Public School business case set 17 per cent contingency (two per cent for planning, five per cent for design and ten per cent for construction). The amount appears low given the known complexities of the site. The Armidale Secondary College Consolidation business case set a much higher contingency of 35 per cent. In that business case, the risk register does not identify any risk above ‘medium’ which does not match with the relatively high contingency amount.

Rather than demonstrating analysis, the basis for setting contingencies was referred to as usual SINSW practice, a requirement of SINSW guidelines, or direction from SINSW in several business cases we examined. Because SINSW undertakes projects that differ in complexity, standardised approaches to setting contingencies do not adequately recognise project-specific risks.

An INSW review in 2018 suggested that SINSW should move away from using a standardised approach to contingency (i.e. ‘deterministic’) to a ‘probabilistic’ method based on a risk assessment that identifies the likelihood and consequence of risks occurring.

In May 2020, SINSW developed a practice note on the management of project contingency. This sets out a standardised approach to setting contingencies and greater controls for contingency draw down. The practice note requires a 'deterministic' approach to be used up to the point of business case approval, at a standard rate of 30 per cent: 20 per cent for total of Planning, Design and Construction (project-based), and ten per cent for Executive Contingency.

Project-based contingencies are for use on items included in the risk register and can be released in line with delegations. Executive contingency is for use on unforeseen changes and discretionary items. Release of Executive Contingency requires approval by the Chief Executive.

The new arrangements set a relatively high level of contingency at the business case stage – 30 per cent. The new approval arrangements aim to ensure more discipline around drawdowns. Over time, as SINSW gains greater insights into costs and there is a cultural shift towards variations, SINSW could look to align contingency settings and delegations to project requirements.

Ongoing arrangements for monitoring and reporting on project benefits are unclear

Business cases for case study projects we reviewed included common templates for benefits realisation plans and benefits registers but did not define baselines or targets. Benefits realisation management is the process of organising and managing a project or program so that potential benefits are achieved. Under the NSW Government Benefits Realisation Framework, it is good practice to identify benefits at the early stages of project planning and business case preparation.

Business cases for case study projects we examined included benefits realisation plans from 2018 onwards. However, these plans deferred activities to define baselines and set school-specific targets until the projects are underway. This means business cases were approved without a full understanding of the anticipated benefits for those particular school sites.

For most case study projects we examined, SINSW was unable to demonstrate that benefit registers were updated after the business case was approved. SINSW did finalise the benefits register for Arthur Philip High School and Parramatta Public School following a review by INSW.

Benefits realisation plans we examined from 2018 onwards list the project sponsor as the benefits owner and project manager as the benefits realisation manager. These staff are responsible for monitoring, reporting and evaluating project benefits up to ten years after delivery. SINSW was unable to demonstrate it has the systems to ensure this is done over these long timeframes.

One of the main benefit categories in plans, ‘increased quality of education’, depends on approaches taken by operational areas of the Department. Given the early involvement of school principals, executives and teaching staff in developing Education Rationales and considering how infrastructure upgrades and design will impact teaching and learning, there is potential for ongoing engagement to track benefits realisation of school infrastructure projects.

Earlier consultation with stakeholders would reduce risks to timeframes

Once a project has been announced, parents and school staff make decisions based on when they expect a school will open. This places pressure on SINSW to move projects quickly through planning approval processes so it can commence building to meet the announced opening date.

School capital works over $20.0 million are classified as State Significant Developments and require planning approval from the Department of Planning, Industry and Environment. A public exhibition process allows government agencies and the community to make submissions and SINSW is required to respond. New schools and major school upgrades can affect neighbours and the community. For example, there may be increased traffic, overshadowing, and pressure on drainage systems. As part of approval, conditions may be placed on the delivery of the project to mitigate stakeholder concerns. These conditions can delay projects and increase costs.

SINSW prepares business cases for funding prior to gaining planning approval. It must then deliver the project in line with the scope and funding allocated through the final business case. Business cases identify risks that the planning approval process may affect timelines and costs as a result of design changes or need for accompanying works. Consulting with relevant stakeholders (local councils, the Department of Transport and the Department of Planning, Industry and Environment) prior to finalising the business case could identify likely objections earlier. SINSW processes do not always allow for early consultation because doing so may raise stakeholder expectations the project will proceed where funding is still uncertain.

Postponing consultation with stakeholders increases the level of risk that the project is delayed. If designs are largely finalised, then significant change to those designs based on issues uncovered during the public consultation process can increase costs and delay the project. Working with approving agencies parallel to business case development could help improve communication and ensure approving agencies have all the documentation needed.

4.3 Assurance systems and continuous improvement

Project assurance reviews provide advice and recommendations for all projects.

SINSW has developed an Assurance Review Framework which is mandatory for all school infrastructure projects. Reviews provide advice and recommendations on issues that would benefit the project as it moves from needs analysis, to business case and through delivery. Reviews are done at seven points through the life of the project. The reviews are conducted in addition to the INSW Investor Assurance Framework requirements, which take a risk-based approach to reviews.

The first internal assurance review was conducted in August 2018. At October 2020, SINSW had only conducted four stages of the internal assurance process:

• 65 projects at Assurance Review Point stage 0 – Service Needs Report
• 24 projects at Assurance Review Point stage 1 – Strategic Business Case
• 48 projects at Assurance Review Point stage 2 – Business Case
• 2 projects at Assurance Review Point stage 5 – Readiness for Service.

SINSW assurance reviews are conducted by external peer reviewers appointed by the SINSW Office of the Chief Executive. SINSW has also established a Community of Practice for external reviewers, which meets quarterly to discuss the review program. This helps SINSW update external reviewers on new requirements and share common findings.

By looking at all projects at all stages, assurance reviews can identify systematic issues across the full portfolio of projects. In September 2020, SINSW conducted a thematic assurance review on 'value for money'. This was done in response to project-specific reviews commonly rating this area as weak. The review confirmed there were systemic issues causing the low ratings and recommended a series of improvements to address these issues for future projects.

As SINSW conducts more assurance reviews at different project stages, this will provide it with greater opportunity to analyse common findings and use them to improve internal processes. SINSW advised that it is developing a continuous improvement program, which will be able to take findings from assurance reviews to build organisational capabilities.

Assurance review recommendations are not always sufficiently addressed

Internal and external assurance reviews typically make a series of recommendations and require SINSW to respond with actions that will be taken to implement the accepted recommendations. Several assurance reviews we examined repeated findings between strategic and final business case stage, indicating the recommendations were not adequately addressed. For example:

• An assurance review for the strategic business case for Fort Street Public School identified that a generic risk management approach was taken for this complex project and recommended reviewing and further evaluating the specific risks associated with the complexity of the project. The subsequent assurance review identified the same issue, assessing that the requirement for a Risk Management Plan that includes sufficient consideration of risks and their mitigations had not been met.
• An assurance review of the Chatswood business case recommended reviewing the project costings to include probabilistic risk estimates and then updating the final business case. The response indicated that the risk register had been revised and that a probabilistic risk estimate would be included in the business case. The business case only included the new estimates as an appendix and not in the cost-benefit assessment of options.
• An assurance review of the North Sydney Public School business case found that recommendations from the previous review had only been 'partially' addressed. The main concern related to a risk of an overall shortfall in capacity in the School Community Group, even after the upgrade had taken place. The review made another recommendation for the final business case to improve its analysis of the capacity of a neighbouring school to meet expected overflow from North Sydney Public School.

Appendix one – Response from agency   Appendix two – About the audit  

Appendix three – Performance auditing  

Copyright Notice

© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.

Parliamentary reference - Report number #347 - released (8 April 2021).

Corrigendum

Auditor-general’s report to parliament on delivering school infrastructure .

This corrigendum has been prepared to amend the following text within my Auditor-General’s Report to Parliament on Delivering School Infrastructure, dated 8 April 2021. 

On page two, the original text was as follows: 

Further NSW Government announcements in the 2018–19 Budget and election commitments in the 2019–20 Budget made up the majority of new projects, rather than projects prioritised by SINSW. 

The original text has now been changed to 

Further NSW Government announcements in the 2018–19 Budget, election commitments in the 2019–20 Budget, and announcements in the 2020–21 Budget, made up the majority of new projects, rather than projects prioritised by SINSW. 

On page three, the original text was as follows: 

The 2018–19 Budget funded three new projects that had not already been announced. One of the three projects was identified by SINSW as a priority. 

The original text has now been changed to: 

The 2018–19 Budget funded two new projects that had not already been announced. Both projects were identified by SINSW as a priority. 

On page three the original text was as follows: 

SINSW identified 33 priority projects in its Capital Investment Plan for 2019–20.

The original text has now been changed to  

SINSW identified 31 new priority projects in its Capital Investment Plan for 2019–20. 

On page eleven, in Exhibit 4, the original text was as follows: 

The 2018–19 NSW Budget announced funding for an additional 43 new and upgraded schools to commence works in 2018–19. Of the 43 projects: 

•    1 was identified by SINSW as a priority in its Capital Investment Plan (SINSW requested funding for one new project) •    40 had already been announced •    2 were new announcements (not identified as a priority by SINSW in its Capital Investment Plan).

The 2018–19 NSW Budget announced funding for an additional 42 new and upgraded schools to commence works in 2018–19. Of the 42 projects: 

•    2 were identified by SINSW as a priority in its Capital Investment Plan (SINSW requested funding for two new projects) •    40 had already been announced.

On page eleven, the original text was as follows: 

The 2019–20 NSW Budget announced funding for an additional 40 new and upgraded schools as election commitments. Of the 40 election commitment projects: 

•    13 were identified by SINSW as priorities in its Capital Investment Plan (SINSW requested funding for a total of 33 new projects) •    27 were new announcements (not identified as a priority by SINSW in its Capital Investment Plan).

•    13 were identified by SINSW as priorities in its Capital Investment Plan (SINSW requested funding for a total of 31 new projects) •    27 were new announcements (not identified as a priority by SINSW in its Capital Investment Plan).

The above changes will be reflected in the version of the report published on the Audit Office website and should be considered the true and accurate version.  

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• Targeted Learning and Pathways - Deliver world class education and training for NSW Health workforce to respond to system priorities
• Trusted Partnerships - Extend collaborative relationships to drive compassionate, sustainable and safe care and improve patient outcomes and experiences
• Inspired People - Support our people to thrive and enable them to deliver exceptional learning outcomes for NSW Health

The strategic priorities and initiatives are enabled by:

• Effective Communication - System-wide communication, planning and co-ordination
• Best Practice - Evidence-based approach to training and education programs
• Digital Enablement - Virtual learning capabilities and tech-enabled solutions
• Diverse & Engaged Workforce - An inclusive and culturally safe working environment

View the HETI Strategic Plan

Engaging Our Stakeholders

The success of any strategic plan depends on the support and engagement of its stakeholders. Our Strategic Plan was developed in consultation with stakeholders across NSW Health including the Ministry of Health Workforce Planning and Development division, Local Health Districts and Specialty Health Networks, and HETI staff.

Alignment with NSW Health Strategic Focus Areas

HETI strategic priorities and initiatives align with NSW Health's Future Health Plan and supports Strategic Outcome 4 that requires NSW Health staff are engaged and well supported. Our aim is to support NSW Health staff deliver safe, reliable, person-centred care driving the best outcomes and experiences for patients, their families and staff.

View the HETI Framework

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Mayor McDonald announces depot plans and strategic land purchase

Published on 14 November 2024

Kiama Council Mayor Cameron McDonald has announced a major investment in the community’s future with the purchase of a prominent commercial property adjacent to its Works Depot on Belvedere Street. The $6.3 million acquisition of the Shoalhaven Street site, known locally as the old Big River or Cukuna property, is set to unlock significant opportunities for both Council and the community.

The newly acquired site will enable Council to reimagine the use of our current depot, which we have owned for nearly a century and has served as a hub for outdoor operations since the 1960s. However, after decades of incremental upgrades, the facility has reached its limits in terms of safety, functionality, and community value.

Council now plans to move its operations to a consolidated, purpose-built facility at Minnamurra, creating a modern, safe workspace for Council’s outdoor staff.

Mayor McDonald said the purchase was a unanimous decision by the newly elected Council. He expressed his enthusiasm for the new plans, and said it highlights Council’s commitment to making impactful decisions that shape a sustainable future for Kiama. 

“This is a big investment, but it’s also a big opportunity for our community,” said Cr McDonald. “Our current depot site is outdated and no longer fit for purpose. By relocating to a custom-built facility at Minnamurra, we’re prioritising the safety of our hardworking staff, while also freeing up a valuable site here in the heart of Kiama for future development.”

Council aims to rezone the Belvedere Street site for residential development, helping address the local housing shortage and making productive use of centrally located land a short walk from the train station and Kiama’s town centre. This strategic move aligns with our broader goals of fostering responsible growth and addressing pressing community needs. 

“We’re very excited to reimagine this site for residential use,” said Mayor McDonald. “It’s a suburban site that’s increasingly ill-suited to industrial operations, but is the ideal location to add much-needed housing. This project is just one example of Council working together to make bold decisions that serve Kiama’s long-term interests.” 

While the relocation and development plans will unfold over the coming years, Council views this announcement as an essential first step toward creating a vibrant and more connected Kiama. 

Kiama Council CEO Jane Stroud said “There are lots of processes to be worked through —rezoning, masterplanning, design, environmental reports, safety inspections and workforce matters. All that said, this is a strong strategic decision, and our workforce has welcomed the news and looks forward to the opportunities this move will open up.”

Cr McDonald said: “We’re committed to a strong vision for our town’s future, one that includes safe workspaces, smart growth, and positive community outcomes. Today’s announcement demonstrates that, as a newly elected Council, we’re not only thinking ahead and working collaboratively, but also taking decisive action.”

The purchase will be paid over three years, ensuring fiscal responsibility while enabling a smooth transition for Council operations.

Kiama Council is sharing this news today to inform our community, staff and stakeholders of this important decision and make them aware of our plans.

As a Council, we are committed to transparency and keeping the community and our staff informed and engaged as we advance through the process.

Photo: Mayor Cameron McDonald with Kiama Council's Works Depot Manager 

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Wollondilly Shire Council

Development control plan.

Development Control Plans (DCP's) provide planning standards and controls to guide new development in Wollondilly. They are relevant to applications for development, e.g. Development Applications and requests to remove trees.

The DCP support planning controls in the   Wollondilly Local Environmental Plan 2011.

Wollondilly Development Control Plan 2016

Wollondilly DCP 2016 was first approved by Council on 21 December 2015 and commenced on 20 January 2016.

Wollondilly Development Control Plan 2016 Full Version   (18 MB)

The Wollondilly DCP is made up of 8 topic based volumes:

Volume 1 – General

This volume covers general considerations which apply to all development.

It includes guidance on the following topics:

• Process for where applications propose a variation to the DCP
• Community engagement
• Heritage (conservation areas, colonial & aboriginal heritage)
• Tree removal
• Environmental protection (Natural Resources areas mapped in the LEP)
• Landscaping

 Download

Volume 1 - General

Volume 2 – Urban Release Areas

Provides controls for development within Urban Release Areas. This volume has been prepared to meet the requirements of Clause 6.3 of the Wollondilly Local Environmental Plan 2011. Clause 6.3 requires specific controls for land in urban release areas.

 This volume includes specific controls for the following land:

• Wilton Park, Wilton (Bingara Gorge)
• Marsh Road, Silverdale
• Picton, Tahmoor, Thirlmere New Urban Lands (PTT)
• Land between Picton, Tahmoor, and Thirlmere (commonly known as PTTAG)
• Clearview (664, 740 and 760 Thirlmere Way and 25 Star Street, Picton)

Volume 3 – Subdivision of Land

Provides controls for the subdivision of land.

 Also includes controls to direct the future development of new housing release areas:

• Picton West
• Thirlmere East
• Thirlmere South
• Tahmoor West
• Tahmoor South
• Tahmoor East
• Avon Dam and Hawthorne Roads, Bargo
• Land Between Picton, Tahmoor and Thirlmere (commonly known as PTTAG)
• Montpellier Drive Residential Land (The Oaks)
• Queen Victoria Memorial Home Planning Proposal Site
• Bulli Appin Road, Appin
• 55-65 Bronzewing Street, Tahmoor
• Station Street, Menangle

Volume 4 – Residential Development

Provides controls for residential accommodation and related structures e.g. new houses, dual occupancy, hostels and boarding houses, car ports, sheds.

 Also includes controls for specific locations:

• Bingara Gorge Estate
• Montpelier Drive Residential Land
• Queen Victoria Memorial Home 

Volume 5 – Commercial and Community Uses

Guidance for development of commercial, community and other related land development. In addition to controls for new commercial buildings and related uses there are specific controls for:

• Amusement centres
• Bulk goods premises
• Child Care centres
• Community facilities, Entertainment Facilities, Function centres, Places of Worship & Registered Clubs
• Home-based child care
• Landscape and garden supplies, Timber and building supplies, Wholesale supplies
• Restricted premises
• Service Stations
• Sex service premises, Home occupations (sex services)
• Educational establishments
• Health services facilities
• Funeral chapels and Funeral homes

Volume 6 – Tourism and Events

Provides controls for the development and use of land for tourism related uses including visitor accommodation, events and markets.

Specific controls are provided for:

• Hotel and Motel Accommodation
• Bed and Breakfast Accommodation and Farm Stay Accommodation
• Serviced Apartments
• Temporary Markets

Volume 7 – Industry and Infrastructure

This volume covers the development and use of land for industrial, transport and infrastructure related land uses.

In addition to general controls for all development there are controls for the following specific land uses:

• Rural industry and Deports
• Self storage units
• Warehouse or Distributions centres
• Vehicle body repair workshops and Vehicle Repair Stations
• Freight transport facilities and Passenger Transport facilities
• Waste or Resource Management facilities
• Telecommunications facility

Volume 8 – Primary Agricultural and Rural Uses

This volume covers the development and use of land for primary agricultural or rural uses and related uses.

It includes specific controls for the following land uses:

• Animal boarding or training establishments
• Aquaculture
• Intensive livestock agriculture
• Farm Buildings

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