ICAC Reform Program

It was recommended that the Department of Education:

Urgently review its approach to administration arrangements in relation to school autonomy, budgets and the school resourcing model, and put in place greater guidance and accountability measures and stronger scrutiny of funding provided to government schools.

The review of administration arrangements should include but not be limited to:

• the principal initiative code and guidance
• cash and credit funding components
• discretionary expenditure
• travel
• gifts, benefits and hospitality
• recruitment
• use of funds as outlined in the Education Act
• conflict of interest.

The review should include in its remit the development of policy and guidelines, communication, training and implementation.”

Status

This recommendation is in progress.

The department has several projects underway to address all elements of this recommendation.

Some components of this recommendation will be addressed in the Finance and Resource Management for Schools manual (refer to recommendation 2 for further details).

It was recommended that the Department of Education:

Publish a finance manual for Northern Territory Government schools and consider best practice from other jurisdictions including Victoria, when developing this.

Status

This recommendation is in progress.

The Finance and Resource Management for Schools manual is underway for publication in the second half of 2023.

It was recommended that the Department of Education:

Audit and review the use of the principal initiative cost code across schools to determine whether improper conduct has occurred, is occurring or is at risk of occurring.

Status

This recommendation has been completed.

The department reviewed the use of the principal initiative cost code by schools. This review did not uncover any misuse of the principal initiative cost code. The department continues to provide guidance to schools about appropriate use of discretionary funds.

It was recommended that the Department of Education:

That the current complex arrangements established under the Education Act 2015 regarding the role of the principal and school representative bodies and exemptions from certain Acts, be reviewed, particularly section 115 of the Act.

Status

This recommendation is in progress.

The department is reviewing the Education Act.

It was recommended that the Department of Education:

Review the recruitment process and job description for principals. The job description review should include greater clarity and description of principals’ accountabilities and the authorising environment, including but not limited to references to the Education Act 2015 and regulations, PSEMA, the NTPS code of conduct, and other relevant legislation and frameworks. If required, the job description should be more than one page to ensure a comprehensive description of responsibilities. Recruitment processes should include clear guidance for panel members on the new job description and suggested questions to be asked of referees against key selection criteria.

Status

This recommendation has been completed.

Principal job description templates have been updated to outline the legislative requirements and accountability placed upon principal positions.

It was recommended that the Department of Education:

Review the process used to justify and approve travel and related expenditure for non‑operational purposes, strengthen guidance if required, and increase spot checks for compliance with policies and procedures.

Status

This recommendation has been completed.

The department has updated its travel policies and procedures. Compliance with the updated travel policies and procedures is reinforced through regular communication and training to schools.

It was recommended that the Department of Education:

Establish conflict of interest and gifts, benefits and hospitality frameworks, policies, guidance and registers at a local school level to record, declare, manage and review conflicts of interest. This framework should include system (departmental) oversight, mandatory training for all school leaders (principals, assistant principals, business managers), those with delegation, and school representative bodies on declaring and managing conflicts of interest. Training should include advice on how to transparently manage conflicts of interest and gifts, benefits and hospitality in day to day business as well as recruitment.

Status

This recommendation is in progress.

The department is developing a conflict of interest and gifts, benefits and hospitality frameworks, policies, guidance and registers at a local school level.

It was recommended that the Department of Education:

Develop an induction program and handbook for school representative bodies. This should be included but not limited to a yearly acknowledgement of obligation of members, merit selection training, financial policies and procedures applicable to their roles. It should include advice on training and support available from the department and Council of Government School Organisations, and incorporate any new policy framework and advice developed as a result of this report. The induction and training should be culturally appropriate and relevant to the local context and draw from case studies of what is working well in schools and how this can be adapted more broadly.

Status

This recommendation is in progress.

An online self-paced learning series has been published to help parents and care-givers to effectively participate in their school council.

For more information, go to the Northern Territory Government website.

A policy and guidelines are underway.

It was recommended that the Department of Education:

Request from Council of Government School Organisations (COGSO), as part of its grant management, a breakdown in annual governance training delivered to all schools in the Northern Territory (NT), categorised by region, stage of schools and remoteness. The department should also request how COGSO is ensuring that their training is culturally appropriate and tailored to local contexts.

Status

This recommendation has been completed.

The department continues to work with the NT COGSO. As part of the response, the department enhanced the current funding agreement with NT COGSO to fund additional training officers who ensure governance training is accessible, responsive, and culturally appropriate for all school communities across the Territory. NT COGSO provide detailed and robust training data through the reporting requirements of this agreement.

It was recommended that the Department of Education:

Review the Education Act 2015 and guidelines regarding employee and contractors of the school representative body, including but not limited to the Fair Work Act, workplace inequalities and appropriate record keeping.

Status

This recommendation is in progress.

The department is reviewing the Education Act.

It was recommended that the Department of Education:

Strengthen the audit of school councils.

Status

This recommendation is in progress.

A project is underway to strengthen the school representative body audit process.

It was recommended that the Department of Education:

Develop and implement a compliance review for all schools within the Northern Territory (NT), taking into consideration the recommendations above.

Status

This recommendation is in progress.

A project is underway to develop a compliance process for all schools within the NT.

It was recommended that the Department of Education:

Introduce system-level controls for the Student Administration Management System (SAMS), including reviewing access and security, passwords, exception reporting and further audit and compliance checks to identify anomalies, on a regular basis.

That the department reinforce to all staff SAMS users the requirement on entering student enrolment and attendance data. This should include advice about false entry or manipulation of figures and potential ramifications under the Independent Commissioner Against Corruption Act 2017 or other relevant Acts.

That the department seek an update on implementation of the Auditor-Generals recommendations into SAMS, which may include an interagency working group to identify opportunities to further strengthen controls and audits.

The Office of the ICAC (OICAC) notes that there is scoping underway for replacement of SAMS with a contemporary student management system that is fit for purpose and better able to detect anomalies automatically. Given the risks associated with the current system and challenges of oversight of a geographically spread, remote school system, OICAC recommends that the new system be scoped and adequately resources as a priority.

Status

This recommendation has been completed.

Recommendations 13 and 14 both related to enrolment and attendance reporting of students and therefore a combined approach was implemented. SAMS has been reviewed. As a result, new controls have been introduced and existing processes have been strengthened while a new student management system is being established.

It was recommended that the Department of Education:

Audit and review school attendance figures to determine whether fraudulent reporting of attendance in an attempt to gain increased funding is systemic or at risk of being systemic.

Status

This recommendation has been completed.

Recommendations 13 and 14 both related to enrolment and attendance reporting of students and therefore a combined approach was implemented. The Student Administration Management System has been reviewed. As a result, new controls have been introduced and existing processes have been strengthened while a new student management system is being established.

It was recommended that the Department of Education:

Review the appropriateness of the current outsourced business manager and bookkeeper arrangements, as to whether they should be bound by the same rules as department employed business managers.

Status

This recommendation has been completed.

Schools are required to use Northern Territory Government employees for business manager and bookkeeper services who are Northern Territory Public Sector employed business managers and bureau staff (and not school body employed staff). Schools must not directly employ bookkeepers and business managers.

The chief executive of the department will approve exceptional circumstances when there is a need to outsource bookkeeping services to a contractor who is qualified under a professional standards body.

Principals are responsible for ensuring their schools follow this instruction.

It was recommended that the Department of Education:

Undertake a review of all occupants in government employee housing allocated to the department to verify tenant entitlement.

Status

This recommendation has been completed.

Government employee housing has been centralised to the Northern Territory Government Employee Housing Office in 2023 in which they are responsible for all aspects of property management. Prior to this, to address recommendation 16, the department reviewed its government employee housing and developed a procedure to conduct quarterly occupancy reviews.