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Audit Report No. 30 2010-11

Chapter 3 Digital Education Revolution – National Secondary Schools Computer Fund

Introduction

3.1                   The Digital Education Revolution (DER) program is a major Government initiative. According to the Department of Education, Employment and Workplace Relations (DEEWR), the program aims to contribute sustainable and meaningful change to teaching and learning in Australian schools that will prepare students for further education, and training, and to live and work in a digital world.[1]

3.2                   The main component of the $2.4 billion DER program was the National Secondary Schools Computer Fund (NSSCF). The fund was established to provide $1.4 billion for information and communication technology (ICT) equipment for all secondary schools with students in Years 9 to 12.[2]

3.3                   The DER program, as approved in 2007, did not provide for the costs of technical training and support, maintenance of the computers and infrastructure support. The Council of Australian Governments (COAG) was approached to meet these costs but did not agree to provide the funding. A review into the on-costs of the computers funded through the NSSCF was undertaken (Review of Legitimate and Additional Financial Implications of the National Secondary Schools Computer Fund[3]) and subsequently an additional $807 million was allocated for these costs.[4]

3.4                   Two other important supporting components were identified:

3.5                   While maintaining overall policy responsibility, DEEWR adopted a partnership approach with state and territory education departments and Block Grant Authorities (bodies representing non-government schools) for delivery.[6]

National Secondary Schools Computer Fund[7]

3.6                   As the major component of the DER, the NSSCF’s implementation was given first priority among the components of the DER program. The objective of the NSSCF is to achieve a computer to student ratio of 1:1 for all Australian students in Years 9 to 12 by 31 December 2011, and sustain that ratio through to 2013–14.

3.7                   NSSCF funding was to be used by schools, or education authorities on their behalf, to provide for new information and communications technology (ICT) equipment for secondary schools with students in Years 9 to 12. As an incentive to obtain value for money, any savings made on individual computers were able to be applied to ancillary ICT equipment.

3.8                   The Australian Government committed to opening the first application round[8] of the NSSCF within 100 days of being sworn into office, and reached agreement with education authorities to conduct an audit of ICT in their schools so that initial funding could be directed to where it was most needed and where there was capacity to use it effectively.

Funding agreements[9]

3.9                   For the three applications based funding rounds of the NSSCF, the Government entered into funding agreements with education authorities to provide funding for successful applicant schools. Funding was provided upfront as a lumpsum, subject to education authorities meeting defined terms and conditions. One of these conditions is to report to DEEWR on a six monthly basis on schools’ progress in the purchase and installation of computers.

3.10               The DER program is now being delivered under the federal financial relations framework, including through the National Partnership Agreement (NPA) on the Digital Education Revolution. The NPA sets out high level governance arrangements for the delivery of the program, including: objectives, outcomes and outputs; roles and responsibilities; and performance benchmarks and reporting.

Program progress

3.11               At the time of the report, three funding rounds had been completed with 268,000 computers installed. In Round 1, 97 per cent of schools achieved the first round objective of raising the computer to student ratio of 1:2 and in Rounds 2 and 2.1, 80 per cent of schools achieved the 1:2 ratio in advance of the March 2011 deadline. The next deadline, which is for the completion of installation to meet the 1:1 ratio, has been extended to early 2012 to coincide with the start of the new school year.[10]

3.12               At the 2011-12 Supplementary Senate Estimates hearing, DEEWR provided an update on implementation indicating that as at 30 June 2011, 589,879 computers had been installed in secondary schools with Years 9 to 12, representing 75 per cent of the computers need to reach the 1:1 ratio. DEEWR also advised the Estimates Committee that 75 per cent of the budgetary element had been provided to education authorities.[11]

3.13               The ANAO reported that the survey of school principals indicated the NSSCF was having a positive effect on student access and use of computers, and engagement and preparation for a digital world. The program had been a catalyst for modernisation and integration of ICT infrastructure in the secondary school sector.[12]

Focus of the review

3.14               The ANAO considered the program across four major themes:[13]

The ANAO audit

Audit objective

3.15               The objective of the audit was to assess the effectiveness of DEEWR’s administration of the Digital Education Revolution program‘s National Secondary Schools Computer Fund component. The ANAO assessed whether DEEWR: established sound administrative and payment arrangements consistent with government policy; properly managed administrative and payment arrangements; and effectively monitored and reported on delivery and outcomes.

Overall audit conclusion[14]

3.16               The ANAO found overall DEEWR’s administration of the DER program has been effective in supporting progress through a partnership approach towards the National Secondary Schools Computer Fund‘s objective of increasing the computer to student ratio for students in Years 9 to 12. Nevertheless, the ANAO considered that there were some aspects of the Department’s oversight of implementation that could have been strengthened.

3.17               DEEWR worked with education authorities to collect preliminary survey data of computers in schools as a basis for allocating application round funding, and required education authorities to verify and provide assurances about the accuracy of the data. However, the ANAO noted that DEEWR did not perform simple checks on the data to provide assurance over data quality.

3.18               Further, ANAO found that unlike agreements with government education authorities, agreements with the non-government sector did not include a requirement for annual acquittal of the use of funds, nor reporting on education authorities’ or schools’ on-going investment in schools’ ICT.

3.19               More broadly, the ANAO considered that establishing one or two intermediate progress milestones for education authorities, based on their respective implementation plans, would have assisted DEEWR and stakeholders to better gauge progress towards the 1:1 target ratio. It would also have allowed for identification of any delivery problems sufficiently early to allow remediation.

ANAO recommendations[15]

3.20               The ANAO made three recommendations aimed at improving DEEWR’s administration of the NSSCF, relating to: strengthening agreements with non-government education authorities; improved performance indicators; and increasing assurance over achievement through audit. DEEWR agreed with all three recommendations.

Table 3.1 ANAO Audit Report No. 30 2010-11

1.

The ANAO recommends that DEEWR establish for future Digital Education Revolution program funding agreements, an obligation for non-government education authorities to provide an annual acquittal of program funds, including an independent audited statement that the funding was expended for the purpose of achieving the deliverables and performance benchmarks in accordance with the agreement.

DEEWR response: Agreed

2.

The ANAO recommends that, in order to strengthen external reporting and help steer program direction, DEEWR establish a balanced set of Portfolio Budget Statements key deliverables and performance indicators to measure the effectiveness of the Digital Education Revolution program.

DEEWR response: Agreed

3.

The ANAO recommends that DEEWR consult with education authorities to design and conduct an audit of a sample of schools funded under Digital Education Revolution program, in early 2012 to assist in:

a)     providing assurance on the accuracy of information reported by education authorities on computer installations;

b)    confirming whether the schools have achieved the 1:1 computer to student ratio; and

c)     identifying any reasons for schools not achieving the 1:1 computer to student ratio, including any funding deficiencies.

DEEWR response: Agreed

The Committee’s review

3.21               The Committee held a public hearing on Wednesday, 14 October 2011 with the following witnesses:

3.22               As this program is in its final stages, the Committee focused on the appropriateness of the key performance indicators and whether evaluation to assess educational outcomes has been adequately addressed. In addition, the Committee wanted to ensure the program had delivered value for money and that lessons learned had been implemented across new programs.

3.23               The Committee took evidence on the following issues:

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