Sanktionsrisiko durch schwache Finanz- und Governance-Prozesse

Definition

In NSW, to be eligible for government funding, non‑government schools must not operate for profit; the Education Act 1990, s 83C–83L requires that all income and assets be used for operation of the school and that payments for services, property or goods be at no more than reasonable market value and reasonable given the provision of financial assistance.[2] Compliance requires clear policies, well‑documented board decisions and complete financial records.[2] Similar principles apply across states and for Commonwealth funding. If audits reveal that aid‑funded payments to related parties or owners exceed market value, or that assets purchased with funding are diverted from educational use, authorities can rule the school non‑compliant, suspend or cancel funding approval and, in serious cases, seek recovery of past assistance. For schools heavily dependent on government assistance, such a decision can eliminate a major income stream—often hundreds of thousands of AUD annually—until compliance is restored. Additional costs include legal, advisory and remediation expenses.

Why This Matters

The Pitch: Australian 🇦🇺 education and secretarial schools risk tens to hundreds of thousands of AUD per year in revoked funding and remediation costs when not‑for‑profit, funding‑use and governance tests are failed. Implementing automated controls, approval workflows and transparent reporting over all aid-backed disbursements dramatically reduces this exposure.

Affected Stakeholders

School board members / governors, Principal / CEO, Finance manager, Company secretary or governance officer, External auditors

Related Business Risks